Republic of Mining

NEWS RELEASE: NORTHERN ONTARIO HERITAGE FUND CORPORATION INVESTS IN LAURENTIAN RESEARCH CHAIR IN OCCUPATIONAL HEALTH AND SAFETY

May 7, 2013December 19, 2012

(L to R) John Fera, former president of USW Local 6500; Leo Gerard, CROSH Advisory Committee Chair; Honourable Rick Bartolucci, Minister of Northern Development and Mine and Chair of the NOHFC; Marianne Matichuk, Mayor of the City of Greater Sudbury; Dr. Tammy Eger, Director of CROSH; Dominic Giroux, President and Vice Chancellor of Laurentian University.

SUDBURY, ON (DECEMBER 19, 2012) –The Honourable Rick Bartolucci, Minister of Northern Development and Mines and Chair of the Northern Ontario Heritage Fund Corporation (NOHFC), today announced funding for the establishment of a Research Chair in Occupational Health and Safety at Laurentian University.

The new Research Chair in the existing Centre for Research in Occupational Safety and Health (CROSH) will lead research relevant to a broad range of workplaces. The Research Chair will work to make the Centre a national and international leader in occupational health and safety research, development, education, training, and global best practices. The CROSH Research Chair will be supported by a team of research assistants and other personnel.

“Our government continues to partner with universities to support important research initiatives,” said Minister Bartolucci. “I am very pleased that the NOHFC could invest in this Research Chair that will further help establish Laurentian University and Northern Ontario as a leading centre in occupational health and safety.”

The Northern Miner’s 2012 Mining Person of the Year: Garofalo a steady hand on the Hudbay tiller – by John Cumming (Northern Miner – December 19, 2012)

December 19, 2012

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists.jcumming@northernminer.com

In these times of economic and political turmoil, boring has become the new exciting.

With mining companies of all stripes running aground on the shoals of cost overruns, nationalization movements and environmental opposition, any executive that manages to guide a company to fiscal health, sustainable growth and positive community relations stands head and shoulders above his peers. And so this year, Hudbay Minerals president and CEO David Garofalo is our Mining Person of the Year for his fine job in making Hudbay a standout success story amid the dwindling list of mid-tier base metal miners.

Garofalo is a accountant by training, with a B.Comm. from the University of Toronto and a Chartered Accountant designation. He started out in 1990 as treasurer of Inmet Mining before joining Agnico-Eagle Mines in 1998 and becoming CFO in 1999. That was back when it only had one gold mine — the pre-expansion LaRonde in Quebec’s Abitibi region — and penny pinching was the order of the day, as gold traded for just US$250 per oz.

Garofalo helped Agnico nail down financings that allowed the company to grow prudently through mine expansions and asset purchases, without having to hedge production in a rising gold environment. In 2009, a year in which Agnico raised about a billion dollars, Garofalo won the award for “Canada’s CFO of the Year,” an honour that’s usually handed out to CFOs from much larger and more established Canadian companies.

Coal to rival oil as dominant energy source by 2017: IEA – by John McGarrity (Reuters/National Post – December 19, 2012)

December 19, 2012

The National Post is Canada’s second largest national paper.

Coal will nearly overtake oil as the dominant energy source by 2017, and only a drop in world gas prices could curb the use of the dirtier fossil fuel in the absence of high carbon prices, the International Energy Agency said.

The IEA, the energy agency for developed countries, said earlier this year that without a major shift away from coal, average global temperatures could rise by 6 degrees Celsius by 2050, leading to devastating climate change.

China will use more coal than the rest of the world put together, while India will overtake the United States as the world’s second-largest consumer and become the biggest global importer, the Paris-based IEA forecast in its annual Medium-Term Coal Market Report, released on Tuesday.

“Coal’s share of the global energy mix continues to grow each year, and if no changes are made to current policies, coal will catch oil within a decade,” IEA Executive Director Maria van der Hoeven said in a statement.

Use of the highly-polluting fossil fuel has surged in the past decade, mainly because of stronger demand from China and India, where cheap coal-fired electricity has helped to drive breakneck economic growth.

Potential suitors eye Inmet’s Panama project – by Pav Jordan (Globe and Mail – December 19, 2012)

December 19, 2012

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

If it’s a white knight Inmet Mining Corp. is looking for, there’s no shortage of candidates it might lure to its massive world class copper project in Panama.

Inmet has yet to comment on the merits of a $5.1-billion hostile takeover offer from rival First Quantum Minerals, the Canadian copper miner that wants to combine the companies and become a top five producer. Late last month Inmet rejected an informal approach from First Quantum that valued it at $4.9-billion, saying it was highly conditional.

Industry experts say Inmet has essentially put itself up for sale, and expect it to start an auction process to attract a bid higher than the $72 per share on offer from First Quantum.

“The next question is who, because so often a bidder comes out of the woodwork and you say, ‘Oh, I didn’t think of them,’ ” said Raymond Goldie, an analyst with Salman Partners in Toronto, pointing to Teck Resources Ltd., Canada’s largest diversified miner, as a potential candidate.

Three of four top NA gold miners burdened by debt and rising costs – S&P – by Dorothy Kosich (Mineweb.com- December 19, 2012)

December 19, 2012

http://www.mineweb.com/

North American gold miner Goldcorp “has stood alone among gold miners” in increasing production and earnings without adding large amounts of debt, says Standard & Poor’s analysts.

RENO (MINEWEB) – In spite of favorable gold prices and strong operating cash flow, Standard & Poor’s analysts have been unhappy with gold producers’ rising costs and higher debt burdens.

In an analysis published Tuesday, S&P Credit Analysts Donald Marleau and George Economou observed, “Rating pressure is emerging in the gold mining industry as companies struggle to boost returns, despite the long-standing run of gold prices.”

“In fact, some of these companies are taking on unprecedented levels of debt to fund large, risky investments or acquisitions to increase—or even merely sustain—gold output,” they said.

Of the four North American gold companies reviewed by S&P, Goldcorp’s “track record of growing output, lower costs, and stable debt compares favorably with its larger, more diverse ‘BBB+’ rated peers Barrick and Newmont,” said S&P, “Moreover, the company’s ‘modest’ financial risk profile acts as a considerable buffer against potential shocks, such as unstable prices and costs or sudden spikes in capital spending needs.”

Wabauskang heading to court to stop gold mine – by Shawn Bell (Wawatay News – December 18, 2012)

December 19, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

Wabauskang First Nation is preparing to file a lawsuit to oppose Rubicon Minerals’ proposed Phoenix Gold Mine in Red Lake.

The Treaty #3 First Nation says it was left with no choice but to go to court after attempts to work with the company over the past year to address Wabauskang’s concerns failed to resolve the differences.

Wabauskang Chief Leslie Cameron pointed blame over the dispute directly at the federal government. Cameron said the government has passed its duty to consult First Nations onto Ontario and then onto mining companies. “The government has to deal with us directly,” Cameron said. “They can’t hide behind mining companies.”

Cameron said Wabauskang expressed its concerns with Rubicon’s Phoenix Gold Mine project right from the time the project was initiated. Despite those concerns, Ontario approved the mine’s process review in the fall of 2011.

“We didn’t want to go to court, so even though we don’t think Ontario had the authority to approve the mine, we tried to work with the company over the last year to resolve our concerns,” Cameron said. “We’ve been unsuccessful, so we’re forced to go to court to ensure that our interests are protected.”

TransCanada seeks to shift focus to workers as furor over Keystone pipeline grows – by Claudia Cattaneo (National Post – December 19, 2012)

December 19, 2012

The National Post is Canada’s second largest national paper.

A couple of weeks ago, as anti-oil sands activists were in the headlines for their blockade in Texas of the Keystone XL pipeline, TransCanada Corp. president and CEO Russ Girling was nearby, surveying progress on the right of way and talking to his new recruits.

Four thousand of them were digging ditches and welding pipe in the southern portion of the controversial project to transport oil from Alberta to Texas — the only part that was allowed to proceed by U.S. President Barack Obama this year.

Many were recently unemployed, were looking forward to buying Christmas presents, and were expressing frustration at the few dozen protesters, largely from outside the area.

“On the ground, in Texas and Oklahoma, where we are under construction, you are starting some push-back from people who are saying: ‘I want to go to work. I don’t want you to be in my way every day’,” Mr. Girling said in an interview.

The workers are part of the grassroots TransCanada believes will step up in Keystone XL’s defence as a re-routed project lands before the U.S. President in the spring for a decision on whether it can move forward and contribute to North American economic revival and energy independence — or be rejected yet again as part of a broader stance against climate change.

Ex-Solid Gold CEO demands apology for being called ‘racist’ – by Jonathan Migneault (Timmins Daily Press – December 18, 2012)

December 19, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The former president of a gold prospecting company has accused two local First Nations chiefs of making “slanderous and defamatory remarks” against him.

Darryl Stretch, the former president of Solid Gold Resources Corporation, has demanded Dave Babin, chief of the Wahgoshig First Nation, and Harvey Yesno, grand chief of the Nishnawbe Aski Nation issue a public apology for comments they made at a press conference in Sudbury in early November.

The Aboriginal leaders referred to Stretch as a “racist” and urged the provincial government to withdraw its support from “radical industry representatives” such as those headed by Solid Gold.

“In the event that you do not respond to this notice, I will take whatever action is available to me,” Stretch said in his letter to Babin and Yesno. Earlier this month, Solid Gold’s board of directors removed as the company’s president and chief executive.

Babin has said he has no plans to respond to Stretch’s request for a public apology. Solid Gold Resources has been engaged in an ongoing conflict with Wahgoshig since the First Nation succeeded in having an injunction imposed against the exploration company, preventing further drilling near the Aboriginal community until a resolution between the parties is reached.

NEWS RELEASE: Rubicon remains committed to further discussions with Wabauskang First Nation

December 18, 2012

TSX:RMX | NYSE.MKT:RBY

TORONTO, Dec. 17, 2012 /CNW/ – Rubicon Minerals Corporation (TSX: RMX | NYSE-MKT: RBY) (“Rubicon”) has learned via press reports that, on December 17, 2012, Wabauskang First Nation (“WFN”) instructed its lawyers to file a lawsuit related to Rubicon’s Phoenix Gold Project in Red Lake, Ontario. At this time, since it has received no notice from WFN, the details of its lawsuit are unknown to Rubicon.

By way of background, Rubicon has been engaged in discussions and consultation with WFN since January of 2009. As part its Closure Plan obligations, Rubicon confirmed its intention to continue to consult with WFN with respect to the Phoenix Gold Project.

Rubicon has, in good faith, met with the community representatives of WFN and other Aboriginal Communities to ensure their interests have been heard and incorporated into the planning process. Some of the efforts made by Rubicon with respect to WFN are as follows:

as noted above, discussed and consulted WFN directly since January 2009;
provided funding to WFN pursuant to its Consultation & Accommodation Protocol for environmental reviews, legal assistance, financial analyses, a traditional use study, travel, per diems and honorariums;
Read more

Inmet investors bet on a higher bid – by Pav Jordan – (Globe and Mail – December 18, 2012)

December 18, 2012

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Inmet Mining Corp. shares rose more than 4 per cent Monday as investors in the Toronto miner bet that an ardent suitor has not played its last card with its $5.1-billion hostile takeover bid.

First Quantum Minerals Ltd. offered Inmet shareholders $72 a share over the weekend, sweetening for the second time its offer for the owner of a large copper asset in Panama. A first, informal approach on Oct. 28 valued the company at $62.50 a share and a Nov. 28 offer was for $70 a share, or $4.9-billion.

“We’re happy but, you know, not a lot has really changed,” said Terry Thib, a portfolio manager with Norrep Funds in Toronto that holds Inmet shares. “You could say it’s below where it should go out, given they are not working with a full set of data.”

Investors point out that the way the stock-and-cash offer is structured, it is worth about the same today as it was a few weeks ago because First Quantum shares have lost some of their value in the interim, including a 4-per-cent drop on Monday.

More support to revitalise ONTC – by Henry Lazenby (MiningWeekly.com -December 18, 2012)

December 18, 2012

http://www.miningweekly.com/page/americas-home

TORONTO (miningeekly.com) – The New Deal for Northern Ontario, an initiative to revitalise the Ontario Northland Transportation Commission (ONTC), build a rail link to the Ring of Fire and create thousands of new jobs, on Monday said it is gaining traction as more role-players voice support for the initiative.

Liberal leadership candidate Harinder Takhar recently issued a policy statement calling for “Divestiture of the ONTC to an independent, self-sustaining organisation, and the development of a new rail line for the ‘Ring of Fire’ operations.”

Takhar’s statement is closely aligned with the New Deal plan to transfer ownership of provincially-held ONTC’s railroad and other assets to a new ports authority to be operated under the Canada Marine Act. ONTC operations will be strengthened, and a new rail line to the Ring of Fire mineral deposits will be developed to ship chromite, nickel and other minerals and finished products to markets around the world.

MPP Glen Murray, another Liberal leadership candidate, has called on the government to “pause” its plan to divest the ONTC, while Gerard Kennedy is seeking a “review” of the sell-off decision and further examination of ONTC’s potential role in developing the Ring of Fire mineral deposits. Candidate Charles Sousa, meanwhile, supports “a sustainable, reliable ONTC that connects the North and supports jobs.”

Stream of molten gold signals return of large-scale underground mining to Calif.’s Mother Lode – by Don Thomspson (Associated Press/Victoria Times Colonist – December 17, 2012)

December 18, 2012

http://www.timescolonist.com/

SUTTER CREEK, Calif. – The gold miners who made California famous were the rugged loners trying to shake nuggets loose from streams or hillsides. The ones who made the state rich were those who worked for big mining companies that blasted gold from an underground world of dust and darkness.

The last of the state’s great mines closed because mining gold proved unprofitable after World War II. But with the price of the metal near historic highs, hovering around $1,700 an ounce (28 grams), the California Mother Lode’s first large-scale hard rock gold mining operation in a half-century is coming back to life.

Miners are digging again where their forebears once unearthed riches from eight historic mines that honeycomb Sutter Gold Mining Co.’s holdings about 50 miles (80 kilometres) southeast of Sacramento. Last week, mill superintendent Paul Skinner poured the first thin stream of glowing molten gold into a mould.

“Nothing quite like it,” murmured Skinner, who has been mining for 65 years. It was just four ounces (112 grams), culled from more than eight tons of ore, but it signalled the end of $20 million worth of construction and the pending start of production. The company announced the ceremonial first pour before financial markets opened Monday, marking the mine’s official reincarnation.

Conflicts surrounding Canadian mines ‘a serious problem’ – by Catherine Solyom (Montreal Gazette – December 18, 2012)

December 18, 2012

http://www.montrealgazette.com/index.html

This series was made possible thanks to a Bourse Nord-Sud grant attributed by the Fédération professionnelle des journalistes du Québec and financed by the Canadian International Development Agency.

Last of a three-part series.

Canadians abroad have long benefited from what psychologists call “the halo effect”: Because of its reputation as a peace-loving, human-rights respecting, tree-hugging land, Canada can do no wrong.

But perceptions in Latin America are changing, say observers here and there, as conflicts pitting Canadian mines against local communities become entrenched and spread across continents, and the line between those companies and the Canadian government becomes increasingly blurred.

“Last week, there were demonstrations outside the Canadian Embassy in Mexico. But it’s not just Mexico, it’s throughout the region,” says Daviken Studnicki-Gizbert, a history professor at McGill University and the coordinator of the McGill Research Group Investigating Canadian Mining in Latin America. “What embassy in Latin America has not been the locus of protests because of a Canadian mine?

Clean capitalism gets mixed results in the Andes – by Catherine Solyom (Montreal Gazette – December 17, 2012)

December 18, 2012

http://www.montrealgazette.com/index.html

Barrick Gold has been funding projects near its controversial Pascua Lama mine, in the name of corporate social responsibility. But local citizens wonder what will happen to them when the gold runs out

ALTO DEL CARMEN, CHILE/SAN JUAN, ARGENTINA — Houses for the homeless, wireless Internet for remote villages, new computers for the local school, kite-sailing competitions, a centre for the disabled.

These are a few of the things Barrick Gold has helped finance during the last few years in communities living near its controversial Pascua-Lama mine, under construction in the Andes mountains on the Chile-Argentina border, as part of its commitment to corporate social responsibility (CSR), or as it is called in Spanish, “mineria responsable.”

If these programs sound like they are beyond the normal purview of a Canadian gold mining giant, that’s because they are. Barrick often works with local non-governmental organizations (NGOs) who are better acquainted with health and social problems in their own communities. The NGOs share their expertise; Barrick puts up the money. It’s hard to be against CSR, now part of the playbook of most Canadian mining companies wherever they have set up shop around the world.

Glaciers, protests and court cases slow Barrick in Pascua-Lama – by Catherine Solyom (Montreal Gazette – December 17, 2012)

December 18, 2012

http://www.montrealgazette.com/index.html

At the beginning of November, Barrick Gold’s CEO, Jamie Sokalsky, announced yet another jump in the estimated capital costs of the Pascua-Lama mine, from less than $1 billion in 1997, to $3 billion in 2009, to $8 billion in July, to $8.5 billion last month – with “first gold” extracted from the Andean mine closer to the end of 2014 than to the beginning.

But, Sokalsky assured shareholders once again, Pascua-Lama is the company’s “top priority.”

There are, however, a number of obstacles remaining on the bumpy road to Pascua-Lama, to the delight of some and the dismay of others, from legal wrangling in Chile over the deeds to the vast, frigid territory, to a Supreme Court of Argentina decision over whether any mining can take place there at all, given the presence of glaciers so close to the mine pit.

Capital costs, which may yet rise again when the company releases its year-end results in February might be the least of Barrick’s worries.