Republic of Mining

Quadra FNX agrees to $3.5-billion takeover [by Polish miner KGHM Polska] – by Peter Koven (National Post – December 6, 2011)

December 7, 2011December 6, 2011

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

Canadian copper miner Quadra FNX Mining Ltd. has agreed to be acquired by Polish mining giant KGHM Polska Miedz S.A. in a $3.5-billion all-cash deal. The offer is worth $15.00 a share and is a 32% premium over Quadra’s closing price on Monday. However, Quadra shares traded at higher levels early this year.

The stock jumped 36% to $15.40 in early trading in Toronto, just slightly above the KGHM offer, as investors speculated on the possibility of a higher bid.

Paul Blythe, Quadra FNX’s chief executive, said in a statement that the two companies held talks earlier this year about a joint venture to develop Quadra’s giant Sierra Gorda project in Chile. Then in recent weeks, KGHM made a proposal for the whole company.

“The proposal represents a significant premium to the current share price and we are recommending that our security holders vote in favour of the transaction,” he said.

NEWS RELEASE: KGHM begins process of acquiring Canadian mining company [QuadraFNX]

December 6, 2011

Lubin, 6 December 2011

KGHM Polska Miedź S.A. intends to acquire the mining company Quadra FNX, listed on the Toronto, Canada stock exchange. As a result of entering into today’s agreement, the process of friendly acquisition of this company has begun. KGHM will come into possession of world-class ore bodies and
operating copper mines situated in Canada, the USA and Chile. The value of
this transaction amounts to USD 2,83 billion, and will be financed by the cash resources of KGHM.

The acquisition of Quadra FNX will increase production next year by the KGHM Group by approx. 25%, i.e. 100 thousand tonnes of mined copper, and ultimately by nearly 50%. Total mineral resources will increase by more than 8 million tonnes of copper, i.e. by 28%, putting KGHM into fourth place globally. KGHM is also considering the production of other metals, such as nickel and molybdenum.

There will also be a significant increase in the production of gold and other precious metals. Thanks to the acquisition of attractive mining projects, over several years the KGHM Group will substantially reduce its costs of production. This acquisition will strengthen the position of KGHM on the copper market, and will enable the growth of the company, as foreseen by the Company’s strategy, in the mining sector.

Peru declares emergency after talks fail on ending anti-mining protest – by Franklin Briceno (Toronto star – December 6, 2011)

December 10, 2011December 6, 2011

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.

LIMA, PERU—President Ollanta Humala declared a 60-day state of emergency Sunday to quell increasingly violent protests over the country’s biggest investment, a highlands gold mine, by peasants who fear it will damage their water supply.

The emergency restricts civil liberties such as the right to assembly and allows arrests without warrants in four provinces of Cajamarca state that have been paralyzed for 11 days by protests against the $4.8-billion (U.S.) Conga gold-and-copper mining project. U.S.-based Newmont Mining Corp. is the project’s majority owner.

Dozens have been injured in clashes between police and protesters, some of whom have vandalized Conga property. The general strike also shuttered schools and snarled transportation as protesters mounted roadblocks.

Humala said in a brief televised address Sunday night that protest leaders had shown no interest “in reaching minimal agreements to permit a return of social peace” after a day of talks in Cajamarca with Cabinet chief Salmon Lerner, who had been accompanied by military and police chiefs and was guarded by hundreds of heavily armed police.

NEWS RELEASE: Global Witness leaves Kimberley Process, calls for diamond trade to be held accountable

December 6, 2011

5th December 2011

http://www.globalwitness.org/

Global Witness today announced that it has left the Kimberley Process, the international certification scheme established to stop the trade in blood diamonds.

The Kimberley Process’s refusal to evolve and address the clear links between diamonds, violence and tyranny has rendered it increasingly outdated, said the group. Despite intensive efforts over many years by a coalition of NGOs, the scheme’s main flaws and loopholes have not been fixed and most of the governments that run the scheme continue to show no interest in reform.

“Nearly nine years after the Kimberley Process was launched, the sad truth is that most consumers still cannot be sure where their diamonds come from, nor whether they are financing armed violence or abusive regimes” said Charmian Gooch, a Founding Director of Global Witness.

Ontario Mining Association’s Meet the Miners event attracts a record turnout

December 5, 2011December 5, 2011

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.

By all yardsticks, there was a record turnout of more than 200 delegates for the Ontario Mining Association’s Meet the Miners reception last week. Large contingents of MPPs, political staff, public service employees from key ministries and mining company representatives were on hand to celebrate the success of mining in Ontario and its contribution to the society and economy of this province.

The reception, which was held at the Sutton Place Hotel near Queen’s Park, followed a day of activities, which included an OMA board of directors meeting, a presentation by Ring of Fire Coordinator Christine Kaszycki, an address by Minister of Northern Development and Mines Rick Bartolucci and team meetings with several Cabinet Ministers and Opposition Leaders.

An improved understanding of mining’s important role in the future of Ontario, both as a generator of employment and wealth and as a provider of key materials for building a greener future, appears to be growing. For the second consecutive year mining received special attention in the Speech from the Throne at Queen’s Park.

First Nations group signs deal with Enbridge – by Wendy Stueck (Globe and Mail – December 3, 2011)

December 5, 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.

A day after native groups rallied in a show of force against the Northern Gateway project, a hereditary chief announced that the Gitxsan people had signed on as a partner in the $5.5-billion proposal – allowing Enbridge to make good on its contention that native opposition to the company’s plans is far from unanimous.

But even as Enbridge welcomed the support of the Gitxsan nation and praised the vision of its leaders, dozens of native groups remained staunchly opposed, insisting that the pipeline-and-tanker project poses an unacceptable risk of oil spills and other problems.

“Enbridge has always had a strategy of offering money to lots of First Nations. Lots of First Nations have refused this money,” Chief Jackie Thomas of Saik’uz First Nation, said in a statement, adding that Enbridge is using a “divide and conquer” tactic in an attempt to win over its critics.

The Saik’uz, along with dozens of other bands, have signed a declaration opposing the project, which would ship crude oil from Alberta to the B.C. coast and condensate from Kitimat to Alberta.

Mounties spied on native protest groups [KI’s Donny Morris included] – by Tim Groves and Martin Lukacs (Toronto Star – December 5, 2011)

December 5, 2011

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.

Although the Strategic Intelligence Report’s profile
of KI is heavily redacted, as with all the “communities
of concern,” it states that KI First Nation “remains
committed to ensuring their concerns related to the
impacts of mining and forestry are addressed by the
Ontario government” and “possible future disputes
could result in blockades and demonstrations.”

The spectre of heightened aboriginal protest has
become a source of anxiety for government and industry.

The federal government created a vast surveillance network in early 2007 to monitor protests by First Nations, including those that would attract national attention or target “critical infrastructure” like highways, railways and pipelines, according to RCMP documents.

Formed after the Conservatives came to power, the RCMP unit’s mandate was to collect and distribute intelligence about situations involving First Nations that have “escalated to civil disobedience and unrest in the form of protest actions.”

Attawapiskat: await the audit – Thunder Bay Chronicle-Journal Editorial (Thunder Bay Chronicle-Journal – December 2, 2011)

November 5, 2015December 5, 2011

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

HOW does a remote native community of 2,000 people that receives $18 million a year in federal funds alone — $90 million in total since 2006 — wind up in such a wretched state? Attawapiskat on the James Bay coast is not alone among reserves in poverty, but it’s housing conditions are top of mind across Canada as winter sets in. Large families living in shacks and tents is a national disgrace.

Uninformed critics blame the band council without knowing the details. Those details will shed light where it belongs, but everyone must wait for that information before coming to conclusions.

Others say the Harper government is blaming the victim, so to speak, for taking control of local spending out of the band’s hands and ordering an audit. This examination of spending will look at where it comes from as well as where it goes. The Aboriginal Affairs and Northern Development department will thus be under as much scrutiny as the band itself. This alone may prove to be the most illuminating aspect of the audit, for it could shed light on a system of bureaucracy that First Nations have long complained is too complicated and restrictive.

Peter Poppinga: CEO Vale Canada Ltd. and Executive Director, Base Metals, Vale – Bio

December 5, 2011

Peter Poppinga: Chief Executive Officer Vale Canada Ltd. and Executive Director, Base Metals, Vale

Peter POPPINGA was born in Brazil and began his professional career as a geologist and mining engineer at SAMITRI (Brazilian mining company), where over a 15-year period he held different management positions in exploration, mine planning, production, marketing and sales in Europe and China.

In 1999, Peter joined VALE, and in 2000, he was appointed Manager, Iron Ore at Rio Doce America Inc. (New York).

In 2001, he went on to join Rio Doce International (Belgium) as Director for Iron Ore in Europe, the Middle East and Africa, and then as President, responsible for all sales of Iron Ore and Manganese Alloys as well as for the Iron Ore price negotiations for the region.

In February 2006, Peter was appointed President of VALE International S.A. (Switzerland) responsible for all sales of Iron Ore and Manganese Alloys as well as for the global Iron Ore benchmark price negotiations for Vale worldwide.

Mining Reputations and Blogger Refutations – by Jack Caldwell (I Think Mining.com – December 1, 2011)

December 5, 2011December 5, 2011

Vancouver-based Jack Caldwell is a mining engineer/consultant with Robertson GeoConsultants. His blog www.ithinkmining.com was the only other Canadian mining blog to be included in the Top Ten Mining Blog list by the Australian company Mining IQ. This posting was in response to my recent blog essay titled “The Horrible Reputation of Canada’s Mining Sector.”

Jack Caldwell

Republic of Mining is another great Canadian blog about mining. Stan Sudol is the fellow behind the blog. I met him once in Toronto. He is younger than me, although most people are, more energetic than me, and he is more passionate than I am.

His latest major piece on the Republic of Mining is called The Horrible Reputation of Canada’s Mining Sector. He is stirring up a hornet’s nest with this posting. I must admire him for his courage. While I am cynical, and not afraid to call a spade a spade, I am not sure I would have the courage to hit as hard as he hits in this piece. Here are selected strikes from his piece:

“How things change and how they stay the same! The mining sector has done a terrible job of clearly and transparently explaining the economic benefits and environmental sustainability of their current projects. This increases their costs of doing business through increased red tape, litigation, project slowdowns and potentially bad and unexpected government policies like the Ontario Diamond royalty on DeBeers Canada and the revisions to the province’s mining act.

Read more

Plan sparks Ring of Fire ire – by Ryan Lux (Timmins Daily Press – December 5, 2011)

December 5, 2011

The Daily Press is the city of Timmins broadsheet newspaper.

Process it here or leave it in the ground, union demands

Cliffs Natural Resources’ pledge to seek an exemption from the Ontario Mining Act to ship chromite concentrate from Ontario’s Ring of Fire to Asia for processing has raised the ire of unions and municipalities representing the North.

The company claims the raw chromite ore will undergo value-added processing in Ontario where it will be transformed into chromite concentrate. However, critics say the ore should either be refined in Ontario or left in the ground.

William Brehl, the head of the Teamsters Canada Rail Conference Maintenance of Way Employees, said the government risks squandering the economic potential of the Northern Ontario mineral bonanza.

“Premier Dalton McGuinty’s government has called the Ring of Fire the most promising mining opportunity in Canada in a century,” said Brehl.

Big [Nevada gold] discovery by Barrick Gold gets industry attention – by Rob Sabo (Northern Nevada Business Weekly – December 5, 2011)

December 5, 2011

Northern Nevada Business Weekly: http://www.nnbw.com/Default.aspx

Barrick Gold Corporation’s two new gold discoveries in Nevada represent the biggest mining story in the state for 2011, says Alan Coyner, administrator for the Nevada Division of Minerals.

In September, Barrick said it had found estimated resources of nearly 3.5 million ounces of gold at its Red Hill and Goldrush claims a few miles southeast of the company’s flagship Cortez mining operations 75 miles southwest of Elko.

Barrick is conducting further drilling on the claim area to determine the full scope of the discovery and to move the estimated, or inferred, resource amount into proven reserves.

“It is the story of the year because of its size,” Coyner told a standing-room crowd of top-level mining executives last week at the annual Northwest Mining Association conference at John Ascuaga’s Nugget.

Debeers Representative Tom Ormsby Speaks to CBC Radio/TV About Attawapiskat Crisis

November 5, 2015December 5, 2011

The housing crisis in Attawapiskat has some wondering why the community isn’t benefitting more from the nearby diamond mine. DeBeers Canada Director of External and Corporate Affairs Tom Ormsby spoke with various CBC Radio and TV interviewers: CBC Televion Interview between Tom Ormsby and Suhana Meharchand – November 30, 2011 http://ca.news.yahoo.com/video/canews-22424922/diamonds-at-attawapiskat-27436870.html CBC Radio Ottawa – November …

[Kirkland Lake History-Harry Oakes] ERNIE’S GOLD: A Prospector’s Tale – by Brian (Chip) Martin

December 18, 2011December 4, 2011

For an autographed copy of Ernie’s Gold, please contact the author at: chipmartin@sympatico.ca .

Great Christmas Gift: $20.00 plus shipping!

In the early 1900s, young Ernie Martin immigrated from Staffordshire, England, to Canada to seek his fortune. He finally ended up in Kirkland Lake, where gold was to be found if you were willing to work at it. Ernie was. And so was Harry Oakes. The two of them became prospecting partners. Ernie and Harry worked hard and non-stop to find a vein of gold so they could start a mine.

When it finally happened, the mine grew into a huge money-maker for the two of them. Ernie’s first wife, Mary, also was a prospector, and in fact ended up financially far better off than Ernie. Why was that? How is it that multi-millionaire Ernie Martin arrived at the end of his life virtually a pauper? This is a book full of surprises and answers — and a few questions.

Excerpt from Ernie’s Gold: A Prospector’s Tale:

By all accounts, Harry Oakes had a comfortable upbringing, not the sort of background that would likely compel him to dream of riches and spend his life pursuing them. Unlike Ernie Martin and so many other men who stepped off the T&NO train at Swastika, Oakes didn’t see finding gold as a means of escaping modest circumstances.