NEWS RELEASE: Resource nationalism tops miners’ risk list for 2011: Ernst & Young

Mining and metals companies contend with supply constraints, volatility

(Vancouver, 13 September 2011) Resource nationalism tops the mining and metals risks list while supply capacity issues like skills shortage, capital allocation and infrastructure access continue to dominate the business agenda, according to Ernst & Young’s annual report Business risks facing mining and metals 2011–2012 .

“This year we’re seeing resource nationalism take the form of greater controls on foreign investment, mandated beneficiation, use-it-or-lose-it demands and authorized government participation,” says Tom Whelan, Leader of Ernst & Young’s national mining and metals practice. “What originally began as a way for mineral-rich countries to repair and replace lost revenue from the downturn has become a way for governments to manage the effects of a two-speed economy.”

In the past 12–18 months, approximately 25 countries have increased or announced intentions to increase their government take through taxes or royalties. South Africa’s new royalty regime, Ghana’s plans to double royalties and the Australian government’s proposed minerals resource rent tax are just a few examples of upcoming legislation that could impact investor decisions.

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NEWS RELEASE: VALE GIVES SUDBURY FOOD BANK CAPITAL CAMPAIGN A $500,000 BOOST

Tito Martins, Executive Director for Base Metals, Vale and CEO, Vale Canada; John Pollesel, Chief Operating Officer, Vale Canada; Geoffrey Lougheed, Chair of the Food Bank; Marianne Matichuk, City of Greater Sudbury Mayor

For Immediate Release

SUDBURY, September 14, 2011 –Vale today announced a donation of $500,000 toward the Banque d’aliments Sudbury Food Bank Capital Campaign.

Tito Martins, Chief Executive Officer, Vale Canada Limited announced the donation in front of Sudbury Food Bank board members, local dignitaries, agency representatives and local supporters.

“Vale has a proud history of support for the Sudbury Food Bank and we are pleased to provide this donation toward its new warehouse, which will allow for more effective storage and distribution of food to those in need in the community,” said Martins.

Geoffrey Lougheed, Chair of the Sudbury Food Bank, applauded Vale’s donation and took the opportunity to formally announce Tito Martins as Honourary Chair of the Sudbury Food Bank.

“One of Vale’s first actions coming to Sudbury was to strongly support the Food Bank illustrating a commitment to our community feeding the 14,000 people (including 7,000 children) who are hungry every month,” said Lougheed. “This donation of $500,000 dollars brings our campaign a large step closer to success!

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[Canada] Two faced on asbestos – by Lorne Gunter (National Post – September 14, 2011)

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

June was a very wet month in Edmonton. It rained nearly every day. Sometimes, it poured. And sometimes when it poured, it also blew – hard. Near the end of the month, rain fell for three days straight, while the wind gusted at times from 90 to 110 kilometres per hour.

The downspout from the upper roof of our home emptied onto the lower roof, from where the precipitation rippled across the shingles, disappeared into the eaves, down the pipe attached to the bricks next to the family room window and out onto the lawn.

In the middle of the night on the third straight day of rain, all the water and wind that had played on the roof over all the years succeeded in lifting the corner of one or two shingles. First a little rain, then a lot, snuck under the protective, overlapping asphalt tiles and leaked into our family room through the pot lights in the ceiling.

Around 5: 00 a.m., as the sun was rising on the upper side of the clouds, I was awakened by a dripping sound. Climbing down the stairs, I found some of the rain that should have been running out onto the lawn falling by drips and spoonfuls onto the rug in two places, as well as onto the middle of a large, overstuffed ottoman.

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Investment needed to ensure returns on Quebec’s Plan Nord – by Bertrand Marotte (Globe and Mail – September 14, 2011)

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.

MONTREAL— Companies stand to benefit from the anticipated mining boom in northern Quebec, but they need to start building the right infrastructure projects now to capitalize on the opportunity.

The Quebec government’s ambitious $80-billion, 25-year plan to open up the vast, remote northern region of the province requires that they play a much more hands-on role in the critical development of infrastructure.

“It’s important for mining companies to be pro-active in the decision-making process because there is a need for good preparation and for clear outline of public sector-private sector responsibilities such as who will be in charge of road maintenance over the long term,” said Daniel Roth, Ernst & Young’s head of the Montreal-based infrastructure advisory service.

Infrastructure access has become more of an issue for mining companies around the world in the past year, Ernst & Young says in its annual report on the business risks facing the mining and metals sector.

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Rocks, trees … medical research? Thunder Bay aims to reinvent itself – by Gordon Pitts (Globe and Mail – September 13, 2011)

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.

THUNDER BAY – Rory Carrillo grew up loving his native California for its heady brew of ideas and people, and the moderate weather that allowed him to train year-round as a triathlete. Yet three months ago, this son of Los Angeles washed up on the shores of Lake Superior – in the blue-collar Northern Ontario city of Thunder Bay.

“I wanted to go some place different,” said Mr. Carrillo, 28, and few places could be more different than Thunder Bay, a city with a ravaged forestry industry, a proud but underused port, and long cold winters.

Mr. Carrillo is the new face of Thunder Bay, as it strives to pull off a near-impossible task for a once resource-dominated economy – to reinvent itself as a place where brains rather than commodities are the building blocks.

He has what The Lakehead desperately wants – knowledge, specifically medical-technology knowledge. He has a masters in biomedical engineering, and five years experience with a big medical devices firm in San Francisco.

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NEWS RELEASE: International Indigenous Summit on Energy and Mining (June 29, 2011)

Joint Statement: Assembly of First Nations and the National Congress of American Indians

Today, across North America, unprecedented opportunities exist to develop the energy and mining resources on Indigenous lands in ways determined by the First Peoples of these lands.  The work and collaboration of Indigenous peoples must grow to ensure responsible development, as driven by Indigenous peoples and governments, meets the growing global demand for natural resources and energy.

This week, over 800 Indigenous leaders and citizens, representatives from government and industry from across North America and around the world, gathered in Niagara Falls, Ontario for the first-ever International Indigenous Summit on Energy and Mining. 

Hosted by the Assembly of First Nations (AFN) and the National Congress of American Indians (NCAI), the three-day Summit, which closed today, featured presentations, dialogue and discussions on key topics in resource development such as international partnerships and trade opportunities, sustainable and responsible resource development, free prior and informed consent, green energy, education and labour force development and the implementation of the United Nations Declaration on the Rights of Indigenous Peoples.

“This is truly an exciting time for Indigenous peoples in Canada and around the world,” said AFN National Chief Shawn A-in-chut Atleo. 

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Resource Development and Indigenous Peoples: Finding the path to co-operation – by Assembly of First Nations National Chief Shawn A-in-chut Atleo

This speech by Assembly of First Nations (AFN) National Chief Shawn A-in-chut Atleo was given at the Joint Law Society of Upper Canada and Indigenous Bar Association Luncheon on September 9, 2011 in Toronto, Ontario.

“Environmental groups and industry have far too often
rushed to impose their values and their views on our
interests…. Permit me to lay out a new path for you:
a path that guards Indigenous economic interests, our
rights, and our sacred commitment to the health of the
planet. A plan that is confident in our ability to be
major players, and one that is optimistic about creating
hope and opportunity for our children and their children.”
(AFN National Chief Shawn A-in-chut Atleo)

Resource Development and Indigenous Peoples: Finding the path to co-operation (September 9, 2011)

First of all, I want to thank the Law Society of Upper Canada and the Indigenous Bar Association – President Margaret Froh for the kind invitation to speak to you today.

Today, I want to challenge all of us to set aside some misconceptions and false choices.

I’d like to set out for you a path of cooperation as opposed to conflict, and to envision a future of mutually supportive commitments to economic development and governance.

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NEWS RELEASE: LAURENTIAN UNIVERSITY JOINS FORCES WITH CANADIAN MINING EXECUTIVE – Terry MacGibbon announced as the new Chair of the Next 50 Campaign

 
Terry MacGibbon, Chairman of Quadra FNX Mining Ltd. and Chair of Laurentian University’s Next 50 Campaign; Nawojka Wachowiak, Vice President, Investor Relations Quadra FNX Mining Ltd; Paul M. Blythe, President and CEO Quadra FNX Mining Ltd.; Tracy MacLeod, Laurentian University Campaign Director Development Office; Dominic Giroux, Laurentian University President and Vice-Chancellor

Toronto, ON (September 14th, 2011) On Tuesday evening, at Toronto’s National Club, an audience comprised of some of the biggest names in the mining industry listened as Laurentian University President and Vice-Chancellor Dominic Giroux and Paul Blythe, president and CEO of Quadra FNX Mining Ltd., introduced Terry MacGibbon, Chairman of Quadra FNX Mining Company as the new Chair of the university’s Next 50 Campaign. To date, the campaign has raised $39 million of its $50 million goal.

“I am honoured to accept this important position and to be a part of the development of a university that I believe is on the cusp of greatness,” said MacGibbon. “Laurentian’s bold plans for the future speak to its desire to set the pace for educational excellence in Canada, and projects like the newly-announced Laurentian School of Mines and the Laurentian School of Architecture will surely attract some of the country’s brightest, most ambitious young minds. I fully support Laurentian in its mission to provide these individuals with the highest quality educational experience available and am committed to helping the Next 50 Campaign reach its goal.”

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Northern Ontario Aboriginal youth camps help build a new generation of miners

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.

Congratulations to the dozens of new graduates from three Mining Matters Aboriginal Youth Camps held recently.  With the support of Ontario Mining Association member Noront Resources, these special week long educational camps for Aboriginal youth were held in Webequie, Marten Falls and Thunder Bay.

Close to 100 people graduated from these three programs in Northwestern Ontario.  While most of the participants were children of elementary and high school age, there were a number of adults who took part in the course at Confederation College in Thunder Bay, which did a first-rate job managing and hosting the educational program.

Each camp was five days in length and it offered students the opportunity to gain knowledge about Earth science and the mineral industry through hands-on learning and activities.  The camp involved classroom and field lessons.  Topics covered included basic geology and the structure of the earth, GPS and compass work, prospecting, line cutting, geochemistry, biodiversity, health and safety, mining operations and career options within the sector.

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NEWS RELEASE: Indian Mining Companies Flex their Muscles

Date: 13 September 2011

Intierra Resource Intelligence notes that by mine output, India is the fourth largest producer of zinc, and the sixth largest producer of lead. However, the actual impact of Indian commerce on global mining is felt far more widely.

Recent Indian mining investment has been broad-based, sizeable and reflects a willingness to invest in early stage and pre-feasibility projects. Intierra’s CEO Peter Rossdeutscher, notes this trend and provides a typical example: “Tata Steel has been very active building a mining company to help feed its steel business. In the last four years it has bought into projects in Canada (Taconite Magnetite Project) and Mozambique (Benga Colliery), where it now partners with Rio Tinto. Tata is also looking for more projects in Australia and North America.”

Other notable Indian companies targeting investment are Adani Enterprises and Jindal Power and Steel. Adani has invested over US$2 billion purchasing Linc Energy’s Bowen Basin tenements and also buying the Abbott Point Coal Terminal. Jindal operates the El Mutun iron ore mine in Bolivia and is also active in Madagascar.

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Ontario Teachers take mining lessons back to the classroom

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 has helped 27 Ontario teachers gain a better perspective on the mineral industry through its participation in the second annual Teachers’ Mining Tour.  This educational professional development program was held at the Canadian Ecology Centre (CEC) near Mattawa from August 15 to 19, 2011. 

The program exposed teachers to all phases of the mining cycle, industry professions, Earth science and mineral education specialists, Earth science presentations, educational resources and numerous field trips.  George Flumerfelt, President of North Bay-based mine contractor Redpath and an OMA Director, provided a “Mining 101” presentation for the educators to kick off the intensive week.

Tours included visits to Vale’s smelter complex in Sudbury and Xstrata Nickel’s Nickel Rim South Mine.  In North Bay, the teachers toured Boart Longyear’s drill manufacturing facilities including a highly automated operation featuring robotics.  Also, a representative of consulting engineering firm Knight Piesold made a presentation on the role of environmental assessments in resource development to this group of teachers. 

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Thompson, Manitoba USW Local 6166 and Vale reach tentative deal- by John Barker (Thompson Citizen – September 12, 2011)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.  editor@thompsoncitizen.net

Ratifcation vote Sept. 15

USW Local 6166 and Vale’s Manitoba Operations have reached a tentative agreement three days before the current three-year collective is due to expire Sept. 15, says Ryan Land, manager of corporate affairs for Vale’s Manitoba Operations, and Murray Nychyporuk, president of USW Local 6166, in a joint press release issued Monday.

The USW will be holding two meetings today with its members to present the offer and “express its unanimous support of the proposed Offer of Settlement,” says Nychyporuk and Land.

Members will have two days to review and consider the offer. The ratification vote will take place Thursday, Sept. 15, beginning at 8:30 a.m.

If ratified the deal in Thompson will break a pattern of two long and bitter labour disputes, both now resolved, in Sudbury and Voisey’s Bay. After almost a year on the picket line between July 2009 and July 2010, striking Steelworkers at Local 6500 in Sudbury and Local 6200 in Port Colborne, Ont. voted about 75 per cent to ratify a five-year deal with Vale, four days short of a year of going on strike.

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New rules will cost Quebec lost investments, miners warn – by Bertrand Marotte (Globe and Mail – September 12, 2011)

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.

MONTREAL – Quebec’s reputation as one of the most mining-friendly places in the world is taking a beating as exploration companies sound the alarm over stringent new government regulations they say could scare away at least $1-billion in investments.

Quebec is pushing ahead with proposed new legislation that would force exploration companies to win approval from local and municipal authorities for their projects.

The proposed law – Bill 14 – means companies would have to deal with a third level of regulation for their projects besides federal and provincial rules.

It also spells potential chaos as small and medium-sized companies try to navigate the uncertainty of dealing with individual municipalities which have their own local standards, say industry officials.

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Chasing Rare Earths, Foreign Companies Expand in China – by Keith Bradsher (New York Times – August 25, 2011)

The New York Times has the third highest weekday circulation in the United States (after USA Today and the Wall Street Journal) and is one of the country’s most influential newspapers.

CHANGSHU, China — China has long used access to its giant customer base and cheap labor as bargaining chips to persuade foreign companies to open factories within its borders.

Now, corporate executives say, it is using its near monopoly on certain minerals — in particular, scarce metals vital to products like hybrid cars, cellphones and energy-efficient light bulbs — to make it difficult for foreign manufacturers of high-tech materials to build or expand factories anywhere except China. Companies that continue making their products outside the country must contend with tighter supplies and much higher prices for the materials because of steep taxes and other export controls imposed by China over the last two years.

Companies like Showa Denko and Santoku of Japan and Intematix of the United States are adding factory capacity in China this year instead of elsewhere because they need access to the scarce metals, known as rare earths.

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Liberals come out swinging – by Carol Mulligan (Sudbury Star – September 10, 2011)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper. cmulligan@thesudburystar.com

For the web’s largest database of articles on the Ring of Fire mining camp, please go to: Ontario’s Ring of Fire Mineral Discovery

The Liberals were the first party to offer a plan for the north and they will expand upon it if they are re-elected Oct. 6, says Sudbury MPP Rick Bartolucci.

A key component of the Grits’ Forward. Together plan is to make the Northern Ontario Heritage Fund Corp. a permanent fixture so future governments can’t abolish it, and to boost the fund from $100 million to $110 million.

It has created more than 16,000 jobs in eight years and will create 4,000 more per year for the next four years if the Grits are re-elected, the Sudbury MPP says. Bartolucci also vowed his party would facilitate at least eight new mines in the next 10 years and provide more family health care to underserviced areas of the province.

The Liberal incumbent was flanked by Nickel Belt Liberal candidate Tony Ryma and Timiskaming-Cochrane Liberal hopeful Denis Bonin at a news conference Friday to unveil the plan.

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