Republic of Mining

Ontario can no longer hide from taxes, restraint – by Jeffrey Simpson (Globe and Mail – February 17, 2012)

February 17, 2012

The 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.

“There are only hard answers and difficult solutions.” So said Don Drummond and his three fellow commissioners about reforming Ontario’s health-care system. They could have used the same words for the entire government of Ontario.

Ontario’s problem is not that it has big government, per se. If you want to see that, on a per capita basis, head to Alberta or Quebec. As the commission correctly noted, “Ontario runs one of the lowest-cost provincial governments in Canada relative to its GDP and has done so for decades.”

Ontario is at or near the bottom in funding universities. The health-care system is not the most expensive in Canada; the welfare rates are not the most generous. It doesn’t offer $7-a-day daycare, as in Quebec.

No, Ontario’s problem is that the size of its government doesn’t fit its revenues, and hasn’t for a long time. Those revenues have been hit by the slow, steady erosion of Ontario’s competitive position, in the face of which governments kept adding spending for which there were insufficient revenues.

Quebec still favours relaunch of asbestos industry – by Michelle Lalonde (Montreal Gazette – February 16, 2012)

February 17, 2012

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

MONTREAL – The Quebec government continues to favour a relaunch of the asbestos industry – despite a storm of recent controversy, including groundbreaking criminal convictions of two European businessmen for causing thousands of asbestos-related deaths, and far-reaching concerns about the research upon which the province bases its pro-asbestos policy.

Members of the anti-asbestos movement say the Canadian and Quebec governments have long relied on questionable studies produced by researchers at McGill University and elsewhere, funded by the asbestos industry, to promote chrysotile asbestos as relatively harmless if used safely.

McGill is conducting a preliminary review of the research of professor emeritus John Corbett McDonald to determine whether a full investigation should be called into whether some of that research was influenced by the fact it was funded by the Quebec Asbestos Mining Association.

NEOMA vows to fight caribou policy – by Wayne Snider (Timmins Daily Press – February 17, 2012)

February 17, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

Municipal leaders from across Northeastern Ontario are turning up the heat on the provincial government over its caribou protection plan. And if the mountain refuses to come to Mohammed, then Mohammed will go to the mountain. Ideally, they are hoping for visits both ways.

Thursday in Timmins, members of the North Eastern Ontario Municipal Association (NEOMA) had a lengthy discussion about beefing up its lobby effort. Plans include holding a special lobby day as a group in Queen’s Park, possibly hiring a professional lobbyist or consultant to help with ongoing efforts, and even calling out provincial leaders to visit the Northeast.

Timmins Coun. Mike Doody said he would like to see Premier Dalton McGuinty and others come North to see first hand the impact government policy has on their communities.

“Why can’t we call a Northern Summit?” Doody asked. “The premier has never been to Timmins or visited NEOMA. But not just the premier, we need the leaders from all the parties here so we can tell them where we stand on these issues.”

The “RING” Revisited: An update on Ontario’s famous “Ring of Fire” district – by D’Arcy Jenish – (Canadian Mining Journal – February/March 2012)

February 17, 2012

The Canadian Mining Journal is Canada’s first mining publication providing information on Canadian mining and exploration trends, technologies, operations, and industry events.

Richard Fink, Vice President, Technology, with Cleveland-based Cliffs Natural Resources, is a mining industry veteran who knows that discretion is sometimes the better part of valour when it comes to discussing mineral deposits, and the business of putting them into production. Yet, he is eloquent and forceful when describing the potential of the company’s Black Thor chromite deposit and its nearby Big Daddy ore body, both located in northern Ontario’s “Ring of Fire” mineral district.

“We have a set of major league ore bodies,” says Fink. “The discovery hole on Black Thor was only drilled in September, 2008 so the paint is still wet on this, but you couldn’t ask for a better project. It’s arguably the best open pit chromite deposit in the world in terms of tonnage, grades and mineable widths.”

He also foresees significant socio-economic spinoff if the discoveries can be turned into producing mines. Indeed, Cliffs is looking at estimated capital investments of $3 billion to build a mine and related infrastructure and the projects would create up to 1,250 permanent jobs.

Canada chromite project costs triple: Cliffs Natural Resources – Reporting By Steve James – (Reuters – February 16, 2012)

February 17, 2012

http://ca.reuters.com/

(Reuters) – The cost of developing what may be the largest chromite deposit in North America has tripled from the original $1 billion estimate, a major participant, Cliffs Natural Resources, said on Thursday.
“Initially we did go out with a billion-dollar price tag for this project,” said Chief Executive Officer and Chairman Joseph Carrabba.

“(Now) We’re in about the $3.3 billion range,” he told Wall Street analysts during a conference call, when asked about the status of the Black Thor chromite deposit Cliffs is developing in northern Canada.

Carrabba said the estimate had risen mainly because road construction in the remote Ontario location had not been included in the original estimate. He said there had been a “sharpening of the estimate” as the project moves through the pre-feasibility stage.

“The transportation and the road has gotten more expensive in this segment than we expected and everything else is falling in line with that.”

Mining and Resource Development in Northern Canada – by David Kilgour: City of Greater Sudbury Municipal Councillor

February 16, 2012

David Kilgour is a City of Greater Sudbury municipal councillor. He gave this presentation to the House of Commons Standing Committee on Natural Resources, which is considering the federal government’s role in the development of the Ring of Fire, on February 16, 2012.

Mister Chair and Honourable Members,

On behalf of Her Worship, Mayor Marianne Matichuk, members of city council and the citizens of the City of Greater Sudbury, I am pleased to be here this morning to discuss mining and resource development in Northern Canada; a subject that we in Sudbury know something about.

Greater Sudbury is an undisputed global centre of mining expertise. Over the past one hundred and thirty years, billions of dollars worth of Nickel, Copper, Platinum, Gold and many other metals have been mined, milled, smelted and refined in our city. Today, even with more than a century of mining activity, an estimated forty billion dollars of mineral reserves have been identified and constant exploration adds to this total every day.

We are the largest geographic municipality in Ontario; within our municipal
boundaries, approximately seven thousand workers are employed directly in mining production and mineral processing while about twice that number work in the mining supply and services industry. Nowhere else in the world will you find this level of mining activity within a fully urban city.

Building a [mining] workforce [in Thunder Bay and the Northwest] – Special to The Chronicle-Journal (Thunder Bay Chronicle-Journal – February 16, 2012)

February 16, 2012

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

With the anticipated boom in the mining sector, industry leaders and organizations are taking steps to ensure the workforce is ready.

On Wednesday the North Superior Workforce Planning Board and the Thunder Bay Community Economic Development Committee hosted a forum that looked into some of the employment and training opportunities and challenges that exist in the mining sector in Northwestern Ontario.

More than 200 participants attended the forum. Among the participants were job seekers, mining companies, service providers, government representatives and educators, who discussed how the workforce can be prepared for expanding job opportunities in the mining sector.

Madge Richardson, executive director of North Superior Workforce Planning Board, said the forum was also an opportunity to release a report on the region’s mining industry employment forecasts for the next two, five and 10 years.

All eyes on tight oil’s future – by Claudia Cattaneo (National Post – February 16, 2012)

February 16, 2012

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

CALGARY – Tight oil, the new oil source unlocked by new drilling technologies, is bearing such good results it could quickly compete with Canada’s oil sands as a top secure supply of North American oil.

With companies like Devon Energy Corp., Talisman Energy Inc., Encana Corp. and Exxon Mobil Corp. pushing big spending toward tight oil, analysts are ratcheting up their production forecasts for the supplies, which are largely based in the United States.

“Tight oil is changing the landscape in North America,” Steve Fekete, managing consultant at Purvin & Gertz, said at an oil sands industry conference in Calgary this week.

The international energy consultancy predicts production of tight oil in the United States alone could reach between 1.4 million barrels a day and 2.4 million b/d by 2020 – from about 600,000 b/d today derived in large part from the Bakken field in North Dakota.

AngloGold CEO says Warren Buffett just doesn’t understand gold and gold investors – by Alec Hogg (Mineweb.com – February 16, 2012)

February 16, 2012

www.mineweb.com

Mineweb’s Editor-in-chief, Alec Hogg, interviews AngloGold Ashanti’s Mark Cutifani and hears some forthright views on Warren Buffet’s most recent attack on gold.

JOHANNESBURG – Anglogold Ashanti’s CEO Mark Cutifani is to local South African gold mining what top South AFfrican asset manager, John Biccard is to the local asset management sector, the man other money managers would most trust to handle their savings. In mining, Cutifani’s astute management has raised the bar for an industry where performance was once measured by volume of rock through the mill rather than gold delivered.

The Australian-born head of Africa’s biggest gold producer has been walking on water lately. He took history’s biggest ever bet on the gold price by closing out the industry’s largest hedge book – at a cost of billions. As the gold price kept steaming ahead, that decision continues to reward Anglogold Ashanti. In the three months to end December it added another $200m to the bottom line.

Cutifani was clearly on a high during our chat this week after the release of his group’s December quarter results. Who could blame him? Apart from that $200m, costs were reasonably controlled, the company got more South African Rands for its gold and the result was a fresh record for profit in any three months. Shareholders joined in the applause when hearing that the yearend dividend was being doubled.

Growth won’t save Ontario this time. Only reform will – by Don Drummond (Globe and Mail – February 15, 2012)

February 15, 2012

The 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.

Don Drummond, former chief economist at TD Bank, is chair of the Commission on the Reform of Ontario’s Public Services.

Ontario faces two huge challenges – economic and fiscal.

The province has already slid below the average of the rest of Canada in terms of output and income per capita. Beyond the next few years of recovery, Ontario can look forward to only modest annual growth of around 2 per cent, well below historical norms.

This reality frames the fiscal problem. The province can’t simply adjust its fiscal parameters for a few years to eliminate a deficit caused by the recession and associated stimulus. Even with the restraint measures already taken, the provincial deficit would continue to rise in an environment of modest economic growth. The fiscal response must not only be strong and sustained, it must reform the way the government delivers virtually every service.

Last March’s provincial budget established the Commission on the Reform of Ontario’s Public Services to advise the government on how to return to a balanced budget no later than 2017-18 and how to get more value for taxpayers’ money.

Drummond report shows sun has set on Ontario empire … but, will it notice? – by John Ivison (National Post – February 15, 2012)

February 15, 2012

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

We couldn’t read the Premier’s lips because he was conspicuous by his absence. But Dalton McGuinty has been explicit in recent speeches — the $16-billion deficit that is on course to balloon to $30-billion within seven years, will not be balanced by raising taxes.

That means the Premier will have to implement all 320 recommendations made by economist Don Drummond and his Commission on the Reform of Ontario’s Public Services, released Wednesday. Except, the Ontario Liberals have already made clear they will ignore Mr. Drummond’s suggestion on Mr. McGuinty’s pet full-day kindergarten project — namely that it is a $1.5-billion luxury the province cannot afford.

The former TD Bank chief economist pulled no punches in his press conference: “This is pretty much unprecedented in post-war Canadian history. It is very daunting. Lots of governments have had it tough for two to three years. But then there was a reprieve. There is no reprieve here,” he said, pointing to low growth rates as far as the eye can see.

The report said the slow decline of Ontario’s manufacturing sector is partly to blame for the malaise that will see the deficit double and net debt rise to 50% of GDP by 2017/18. But it did not gloss over the culpability of a Liberal government that has failed to keep spending in line with revenue growth.