The Ring of Fire (ROF) could become one of the most significant mining opportunities in Ontario in a century, according to a provincial government spokesperson.
The region, 500 kilometres north of Thunder Bay, Ontario, is rich in “globally-significant” minerals such as chromite and nickel — key ingredients in stainless steel, a material in big demand in countries like China and India.
Extending over a swath of hinterland the size of the Greater Toronto Area, east to Port Hope and north to Barrie, the ROF will require extensive infrastructure development, including access roads, rail and power.
The development and other major mining projects in Ontario’s north spell good news for builders in coming years but the construction industry is under pressure to develop a skilled labour pool to meet the demand.
Christine Kaszycki told delegates at the Ontario Construction Secretariat’s 12th Annual State of the Industry and Outlook Conference recently that to date $208 million has gone into exploration of what is estimated to be several billion dollars worth of development in the ROF. An additional $84 million will go into exploration this year.
OMA high school video competition So You Think You Know Mining attracts record number of entries
This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
The Ontario Mining Association’s high school video competition So You Think You Know Mining, which is now in its fourth year, continues to attract more entries. Momentum keeps building with dramatic increases in the level of participation of every edition. This year, more than 135 videos were received, which is approximately 70% more than the 80-plus last year.
Video entries arrived electronically from all parts of the province and students from high schools we had not seen SYTYKM entries from previously have been received for the judges’ consideration. “We try every year to keep the SYTYKM video competition fresh and interesting for students and educators,” said OMA President Chris Hodgson. “It is gratifying to see this response. We know these students invest a great deal of creativity, energy and time into making their productions.”
This year’s competition is making available opportunities to win $33,500 in prize money, an $8,000 increase of what was on the table last year. Several entries eligible for the Early Bird draw for $500 were received by March 1. Other key dates in 2012 are April 1 to 15 for the determination of nominees for the People’s Choice and OMA Academy Award, April 20 to June 3, which is the voting period for the People’s Choice Award, and May 22 when winners will be determined and notified.
In West Africa, a Canadian mining company pioneers ‘the new humanitarianism’ – by Geoffrey York (Globe and Mail – March 21, 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.
BURKINA FASO – Mining company boss Steve Letwin was ecstatic when he struck a precedent-setting deal with the Canadian government to work together on a training project for African youth. “I think it’s the model of the future,” says the president of IAMGOLD Corp., the Toronto gold miner that operates the biggest mine in the West African country of Burkina Faso.
Many aid experts are less thrilled by the controversial $7.5-million deal between IAMGOLD, the Canadian International Development Agency, and private aid group Plan Canada. They say the miner’s partnership with CIDA amounts to a taxpayer-funded benefit for a highly profitable corporation.
But like it or not, this may be the shape of things to come. The United States has done 900 such deals between its official aid agency and private companies. Now Canada is heading in the same direction, with four similar projects in recent months. “Welcome to the new humanitarianism,” says one of the skeptics, Toronto physician Samantha Nutt, founder of the aid group War Child.
Iron ore producers undeterred by slowing growth in China – by Nicolas Johnson (Globe and Mail – March 21, 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.
The world’s largest miner may have sent a chill through global markets with a warning that growth in China’s steel output is slowing, but Canadian suppliers of iron ore have no plans to slow their expansion plans.
Rio Tinto Group, which controls Canada’s biggest producer of iron ore, a key ingredient in steel, said in a presentation that it’s continuing to build mines in Quebec and Newfoundland and Labrador. ArcelorMittal, the world’s biggest steel maker and the No. 4 producer of iron ore, is pursuing a $2.1-billion expansion in Quebec.
China is the world’s fastest-growing major economy and the biggest consumer of materials such as iron ore, coal, copper and gold – and prices for those products react to changes in the outlook for demand. That’s particularly important to Canada since companies that produce or process those commodities account for many of the listings on the Toronto Stock Exchange, the country’s main bourse.
Quebec bets on resource boom – by Nicolas Van Praet (National Post – March 21, 2012)
The National Post is Canada’s second largest national paper.
QUEBEC — The Quebec government is wielding a heavier hand in the province’s economy, forcing every business with more than five people to institute employee retirement savings programs and grabbing higher equity stakes in mining and hydrocarbon projects.
The language the Liberal government of Jean Charest used in its budget presented Tuesday suggests it is keen to push forward with oil and gas exploration and commercialization despite public opposition, saying it is “risky” to postpone the development of natural resources. It said it would start awarding oil and gas exploration licences by way of auction.
It also emphasized its vision of developing Quebec’s northern territory to generate much-needed revenue. The government announced that Canadian National Railway Co. and the Caisse de dépôt et placement du Québec are partnering on a new 800-kilometre rail line worth several billion dollars between the port of Sept-Îles and the Labrador Trough mining site. And it said Valener Inc.owned utility Gaz Métro will study the feasibility of building an estimated $750-million natural-gas pipeline to the Côte-Nord region.
Brazilian miner [Vale] invests $3.4 billion in Sudbury complex – by Lindsay Kelly (Northern Ontario Business – March 19, 2012)
Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.
Vale makes capital commitment
Five years after Inco was purchased by Brazilian mining giant Vale, the company is pouring unprecedented levels of capital into its operations across Canada, with the North poised to reap a share of the benefits.
In November 2010, Vale announced it would be embarking on a $10-billion investment program across the country over the next five years, with a third of that going into its Sudbury operations.
“For Sudbury, $3.4 billion has been targeted over the next few years,” said Angie Robson, manager of corporate affairs for Ontario operations at Vale. “It certainly speaks to Vale’s commitment to Sudbury and the fact that we certainly have a long future of mining here.”
Dick DeStefano, executive director of the Sudbury Area Mining Supply and Services Association (SAMSSA), said the promise of spilloff from the Vale investment is unique because that amount of capital from a company has never been concentrated in such a short period of time.
Change Canadian immigration policy to attract skilled workers [for mining sector] – by David Garofalo (Canadian Business Magazine – March 13, 2012)
Founded in 1928, Canadian Business is the longest-publishing business magazine in Canada.
David Garofalo is the President and CEO of Hudbay Minerals Inc.
Canada is rightly perceived as an emerging natural-resource superpower, with the sector generating upwards of 11% of our GDP. Mining alone accounts for almost $9.7 billion in capital spending, according to the Mining Association of Canada. That’s why we should all be concerned when study after study declares the lack of skilled workers one of the biggest threats to our future competitiveness.
The issue isn’t limited to natural resources—labour shortages are poised to affect high-tech, construction and other drivers of growth, too. Ottawa appears to recognize the problem’s magnitude and is floating some creative policy solutions. Immigration Minister Jason Kenney recently suggested giving employers a more active role in the immigration process by having them identify applicants who could be expedited through the system to f ill immediate openings. But the government needs to move fast.
It is well known in mining circles that there is a chronic deficit of skilled and professional workers, as well as a significant projected shortfall in semi-skilled and other labour required to grow the industry. More than 100,000 workers will be needed over the next 10 years to staff planned projects and counter attrition due to retirement. Considering the industry’s workforce today stands at just over 200,000, the shortfall will be vast. The only way to manage a human resources crisis this acute is to pursue a two-track strategy.
MEDIA RELEASE: First Nation and Conservation Groups Seek Investigation of Exploration Company God’s Lake Resources by Securities Regulator
For Immediate Release March 20, 2012
This joint media release was issued by: Kitchenuhmaykoosib Inninnuwug First Nation; MiningWatch Canada; Earthroots; Ecojustice and Wildlands League
TORONTO – Today four conservation groups have joined with the northern Ontario Oji-Cree community Kitchenuhmaykoosib Inninuwug or “KI” to request the Ontario Securities Commission investigate junior exploration company God’s Lake Resources (stock symbol GLR). KI and the groups are concerned that GLR may have made misleading statements in its public filings. The
company’s documents suggest the company was making progress towards an agreement with KI to allow exploration on leases and claims held by GLR and within KI’s traditional territory.
“Despite repeated correspondence from KI that it had placed a moratorium on all mining exploration in their homeland, from what we have reviewed, GLR has not yet communicated this risk to their investors” said Justin Duncan, staff lawyer at Ecojustice, “as a result, we have asked the Securities Commission to investigate whether GLR has violated the Ontario Securities Act.”
“The KI moratorium on mining exploration is no secret” said KI Chief Donny Morris. “We have said in writing, we have said on Youtube, we have said it on the radio and we have said from jail and we will say it again:
PNG the worst country for mining project political risk – Behre Dolbear – by Dorothy Kosich (Mineweb.com – March 20, 2012)
The United States is the worst ranked nation in terms of mining permitting delays, while South Africa mining projects may encounter more corruption and social risk factors.
To download the free survey report, “2012 Ranking of Countries for Mining Investment Where ‘Not to Invest'”, go to http://www.dolbear.com
RENO (MINEWEB) – In its annual ranking of countries in terms of political risks for mining investment, Denver-based mining business consultants, Behre Dolbear, has ranked Australia, Canada, Chile, Brazil and Mexico as the top five nations in which to locate mining projects.
The five lowest-scoring nations were Russia, Bolivia, the Democratic Republic and Kazakhstan with Papua New Guinea bringing up the rear as the worst in terms of political risk for mining projects.
The 25 nations considered in this year’s survey were ranked on seven criteria: economic system, political system, degree of social issues affecting mining, delays in receiving permits, degree of corruption, stability of the country’s currency, and the competitiveness of the nation’s tax policy.
Spiking oil prices could cripple economic recovery – by Nouriel Roubini (Toronto Star – March 20, 2012)
The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.
Nouriel Roubini is chairman of Roubini Global Economics, professor of economics at the Stern School of Business, New York University, and co-author of the book Crisis Economics.
Today’s fragile global economy faces many risks: the risk of another flare-up of the eurozone crisis; the risk of a worse-than-expected slowdown in China; and the risk that economic recovery in the United States will fizzle. But no risk is more serious than that posed by a further spike in oil prices.
The price of a barrel of Brent crude, which was well below $100 in 2011, recently peaked at $125 (U.S.). Gasoline prices in the U.S. are approaching $4 a gallon, a damaging threshold for consumer confidence, and will increase further during the high-demand summer season.
The reason is fear. Not only are oil supplies plentiful, but demand in the U.S. and Europe has been lower, owing to decreasing car use in the last few years and weak or negative GDP growth in the U.S. and the eurozone.
Australia finally imposes 30% mining tax – by James Grubel (Mineweb.com – March 19, 2012)
In a major victory for Prime Minister Julia Gillard’s minority government, Australia’s parliament passed laws for a new 30% tax on iron ore and coal mine profits on Monday, ending a two-year battle with mining companies.
CANBERRA (Reuters) – Australia’s parliament passed laws for a new 30 percent tax on iron ore and coal mine profits on Monday after a bruising two-year battle with mining companies, in a major victory for Prime Minister Julia Gillard and her struggling minority government.
The tax will affect about 30 companies, including global miners BHP Billiton, Rio Tinto and Xstrata, and aims to raise about A$10.6 billion ($11.2 billion) in its first three years. “This is indeed an historic day for economic reform, and an historic day for a fair go in Australia,” Treasurer Wayne Swan told parliament.
The tax, which is being closely watched by other resource-rich countries, is designed to spread the benefits of Australia’s resources boom to other sections of the economy by funding a cut in the company tax rate, higher payments into pension funds, and A$6 billion of infrastructure spending.
Canada’s North digs in for the good – and bad – of a mining boom – by Bradley Bouzane and Chantal Mack (Victoria Times Colonist – March 16, 2012)
http://www.timescolonist.com/index.html
You can see the effects of the mining boom in Canada’s North on the streets of its communities: There’s commotion; there’s optimism; and there’s money.
Boris Kotelewetz says he’s witnessed first-hand the changes growth in the mining sector across the three territories have brought to his community of Baker Lake, Nunavut. While he admits there’s a wave of economic prosperity sweeping through the region, he also warns of the dangers of short-sightedness, both in the industry and in the towns it leaves behind.
“I’ve seen all kinds of changes,” said Kotelewetz, who has lived in Baker Lake for 46 years.
“To me, it’s like when the whalers came and they needed fresh meat; they employed local people to take part in that. Then that industry died out. Then the Hudson’s Bay Co., came and they employed people in trapping and that industry kind of died out.
“Now we have mining coming along. Because it’s a non-renewable resource, it’s not everlasting. It’s just going to die out – certainly the gold mine will – and that will just be the end to another thing that started and stopped.”
Noront embraces technology to develop dynamic communications
This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
Ontario Mining Association member company Noront Resources is believed to be the first junior mining company to make a major investor presentation using an iBook. At the recent Prospectors and Developers Association of Canada convention in Toronto, Noront President and Chief Executive Officer Wes Hanson spoke about his company’s profile and prospects, while embracing interactive, high-tech communications tools.
The audio-visual and computer experts on site at the PDAC were able to get the presentation on the big screen for all to see — after overcoming their puzzled looks. “I really don’t like static presentations. At events like the PDAC, the iBook can be used interactively on a timely basis as an investor tool and a community relations tool,” said Mr. Hanson. “We hope to have the Noront story on iTunes in the near future and then everyone in the world would have the capability to download the Noront iBook.”
“I have all kinds of embedded audio files in the iBook and it is a totally interactive system to talk about Noront, our Eagle’s Nest project and the communities where we are working,” added Mr. Hanson. “Technology is wonderful and we have to take advantage of it as a communications tool. It is our responsibility to do so.”
Mining conference [PDAC] highlights First Nation issues – by Shawn Bell (Wawatay News – March 16, 2012)
This article came from Wawatay News: http://www.wawataynews.ca/
For Neskantaga First Nation Chief Peter Moonias, the massive Prospectors and Developers Association mining conference was more than just a chance to promote the agreement his First Nation signed with three of its neighbours on building a transportation network to the Ring of Fire.
It was also a chance to bring a First Nation message of treaty rights in regards to land to companies and governments alike.
“The companies have to respect the communities, and understand the rights of treaties for First Nations people. They then have to sell that agreement to the government,” Moonias said. “It’s important to carry the message to companies and government that Native people have that right to the land, through treaties.”
Moonias, along with chiefs from Eabametoong, Nibinamik and Webequie made a splash at the conference on Mar. 5 when they signed an agreement to pursue the development of an East-West transportation corridor to the Ring of Fire.
Ahead of the [mining potential] curve [in northern Ontario]- by Shawn Bell (Wawatay News – March 16, 2012)
This article came from Wawatay News: http://www.wawataynews.ca/
One thing was overwhelmingly clear during last week’s Prospectors and Developers mining conference in Toronto: the eyes of the mining world are focused squarely on northern Ontario.
Booths for the two big Ring of Fire players, Noront and Cliffs Resources, were packed all week. But it was not only the Ring of Fire getting attention. From gold mining around Red Lake to uranium and other heavy metals near Lake Nipigon, the mineral potential across the vast north was on display.
That incredible amount of interest in northern Ontario makes it all the more important for governments – First Nations, provincial and federal – to get ahead of the curve and plan now for the future.
There is no doubt that mining, if done well, can have many benefits for communities and the region. There is also no doubt that if poorly planned and/or poorly managed, mining can leave huge messes – both environmentally and socially – behind it.