Republic of Mining

Mining the Congo: Golden opportunity [Banro Corp.] – by Jennifer Wells (Toronto Star – July 10, 2011)

July 10, 2011

Jennifer Wells is a feature writer with the Toronto Star, which has the largest circulation in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion. No stranger to the mining industry, Ms. Wells won the 1999 National Business Book Award for Fever: The Dark Mystery of the Bre-X Gold Rush as well as covering many other major mining stories.

TWANGIZA, DEMOCRATIC REPUBLIC OF CONGO

Baraka Zihindula appears small for 13, sitting on his bum on the ground, in his royal blue school shorts and short-sleeved shirt. He’s worrying the earth with a stick in the distracted manner of adolescent boys everywhere as he tells his life story, a task that might seem inflated for a mere 13-year-old, until you learn Baraka’s life thus far has included six years of hard labour.

Baraka was 8 when he started panning for gold, working artisanally as a miner alongside his two brothers and his father, just one more family, invisible amid the million-plus informal miners who scrabble for a subsistence living in the Democratic Republic of the Congo.

Baraka’s family lives in the village of Luchiga and every day, seven out of seven, the boys would accompany their father to the river. A little gold was found just about every day, Baraka says, and that little gold was converted to a little money and with that little money his mother was able to feed the family.

Sometimes the father would keep the boys working overnight.

Seated in the shade of a tree, a stone’s throw from the school he now attends, Baraka has kicked off his plastic sandals. There’s a light breeze, the air is fresh and Baraka looks handsome in his schoolboy uniform.

Pedal to the (not-so-heavy) metal [palladium] – by Lisa Wright (Toronto Star – July 9, 2011)

July 9, 2011

Lisa Wright is a business reporter with the Toronto Star, which has the largest circulation in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

What does a junior Toronto mining company have in common with avant-garde fashion designer Vivienne Westwood? They both dig palladium.

The rare precious metal has always flown under the radar compared to its more glamorous cousins gold and platinum, but lately it’s a lot hotter. Palladium quietly became the best performing metal last year, nearly doubling in value amid a scorching hot resources market.

Yet it’s still just half the price of traditional trinket ingredients gold and platinum, which is helping to push the relatively unknown white metal into the mainstream.

The fact that it’s also eco-friendly – think emission-reducing catalytic converters in cars – prompted Westwood to launch her first-ever jewelry line. The oversized yet lightweight palladium baubles debuted this spring in an effort to offer more affordable designer bling to the masses.

“It’s the rarest of the precious metals, and there’s no real substitute for it” as there are for most other metals, says Bill Biggar, chief executive of North American Palladium Ltd. in Toronto.

Northern Ontario pushes McGuinty to reverse $122-million Metrolinx contract – by Tony Van Alphen (Toronto Star – July 9, 2011)

July 9, 2011

The Toronto Star, which has the largest broadsheet circulation in Canada, has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

Furious municipal politicians in Northern Ontario are pressing Premier Dalton McGuinty to reverse a $122.6-million GO Transit car refurbishing contract with a Quebec firm because they argue a Crown company in North Bay should have won it.

“It doesn’t make much sense,” North Bay Mayor Al McDonald said Friday about the recent decision by Metrolinx, another Crown-owned agency that owns GO.

He warns if the decision by Metrolinx, the GTA’s transit agency, proceeds, it will kill hundreds of jobs in his city and could have significant negative political implications for the governing Liberals in the fall provincial election in Northern Ontario. The Liberals currently hold six of nine northern seats while the NDP represents the other three.

“It flies in the face of their own policy for economic rejuvenation in the North,” said McDonald, who has been rallying other municipal leaders against the deal. “This would be a very difficult decision to defend.”

[North Bay] City demands answers to 10 questions about $120-M contract loss – By Maria Calabrese (The North Bay Nugget – July 7, 2011)

July 8, 2011

The North Bay Nugget, established in 1907, is the daily newspaper for the northeastern Ontario community of North Bay.

‘No grounds’ to reopen contract, MPP says

Ontario Northland Railway employees took unpaid time off work to rally with the city as it pushes the province to review a process that led to a $120-million contract going to a company in Quebec.

“I think we’re a little fed up with Northern Ontario not getting our fair share of jobs, and jobs going out of province. We’re just trying to keep local jobs,” said refurbishment worker Trevor Murphy who was part of a crowd of about 200 people, mostly ONR workers, at city hall Thursday morning.

“I think it’s great that everybody is getting involved. This effects everybody in the North.” Canada Allied Diesel Railway Industries Ltd., in Lachine, Que., bid $2 million less than the ONR even though the tender stipulated the lowest bid might not be accepted, and won the contract to refurbish 127 GO Transit rail passenger cars with a one-year-option for 22 more.

Mayor Al McDonald told the crowd the decision could cost 109 local jobs representing more than $6 million in salaries, the province could lose up to $15 million in severance pay and the economic impact to the region could reach $50 million.

Premier’s silence on GO contract stuns Northern leaders – by Ron Grech (The Timmins Daily Press – July 7, 2011)

July 8, 2011

The Daily Press is the newspaper of record for the city of Timmins.

For the past week, Northern leaders have been calling for a review of a $120-million GO Transit contract awarded to a Quebec firm when Ontario Northland’s bid was just 1.6% higher.

Aside from being declared a bad economic move, “what’s more troubling to us is the government’s position which is really one of silence,” said Alan Spacek, Kapuskasing mayor and president of the Federation of Northern Ontario Municipalities. “The silence from the premier’s office is deafening.”

On June 24, Ontario Northland Transportation Commission announced that Quebec-based Canadian Allied Diesel had been awarded the next GO Transit refurbishment contract by the Metrolinx board of directors to rebuild 121 GO Transit cars.

Spacek along with Tom Laughren, Timmins’ mayor and FONOM vice-president, hosted a press conference in Timmins Thursday to publicly express their concerns and to discuss plans to further lobby the Ontario government.

North Bay demands answers from province on rail contract – by Ian Ross (Northern Ontario Business – July, 2011)

July 8, 2011

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

The City of North Bay wants answers from Ontario Premier Dalton McGuinty on why a GO Transit rail coach contract was awarded to Quebec interests instead of the Crown-owned Ontario Northland Transportation Commission (ONTC).

The decision by Metrolinx to award a five-year, 127-car refurbishment contract to Canadian Allied Diesel Railway Industries (CADRI) of Lachine, Que. has city council demanding the contract be suspended and reviewed by the province.

CADRI’s $120 million bid bested ONTC by $2 million, but North Bay Mayor Al McDonald said there are other factors at play. At a June 7 press conference, North Bay Mayor Al McDonald called the awarding of the contract a “flawed process” that will kill 109 jobs at the North Bay-headquartered Crown corporation, eliminate about $7 million in payroll and cost hundreds more indirect jobs in the region.

Ontario Mining Act and Far North Act upsets Aboriginal groups…any many others – by Gregory Reynolds

July 8, 2011

This article appeared in the Winter 2010-11 issue of Mining Life & Exploration News (Canada’s Quarterly Mining Magazine)

Ontario has a new Mining Act and also a special law intended to protect 225,000 square kilometres of the Boreal Forest, the Far North Act. Then why are so many people unhappy with these pieces of legislation?

Basically because many Aboriginal organizations, environmental watchdogs and mining groups believe when the verbiage is stripped from the core of the two laws, they leave total control in the hands of the government.

Many argue both the mining sector and Aboriginals are worse off today than before the process started to protect the industry while respecting constitutional rights and Treaty obligations involving natives. There is a saying, the legislature passes laws but the devil is in the regulations created by bureaucrats.

It is the process that will lead to the regulations under the acts that have many organizations concerned today and worried about tomorrow.

OMA member Sifto Canada helps upgrade town of Goderich’s infrastructure — and future prospects

July 8, 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.

Ontario Mining Association member Sifto Canada is joining forces with the Town of Goderich and the Goderich Port Management Corp. in a public-private partnership to expand and enhance the local port. The three parties have signed a memorandum of understanding for the anticipated $47 million project.

The plan envisions the creation of six hectares of new industrial land at the harbour, new docks for ships carrying salt, aggregate and agricultural products, new storage facilities, repairs to existing port infrastructure and the installation of new breakwalls. The project will create more than 500 construction jobs. The plan will be finalized following the completion of satisfactory environmental assessments, engineering studies and feasibility evaluations.

The Goderich port improvement project will be funded through a $15.7 million grant from the provincial government, funds from the Goderich Port Management Corp.’s major maintenance account and port usage fees. Sifto is expected to pay about $19 million in additional port usage fees over a five year period.

Pressure from U.S. could hasten development of strategic chromite deposits in Ring of Fire – by Gregory Reynolds

July 8, 2011

This article appeared in the Winter 2010-11 issue of Mining Life & Exploration News (Canada’s Quarterly Mining Magazine)

The drive to develop the Ring of Fire’s huge storehouse of minerals is no longer just based on economics but has entered the world of international politics. In fact, the safety of the United States of America has become a factor……and the military establishment wields a big stick.

The need for a safe and secure chromite source to keep the U.S. gigantic defence machine in a state of perpetual readiness (as well as fighting two wars at the moment) has been drawn to the world’s attention by WikiLeaks, a web site dedicated to revealing government secrets.

In November, WikiLeaks founder Julien Assange started publishing some of the 250,000 secret diplomatic message sent by and to U.S. diplomats stationed around the world. Concern was expressed about foreign dependence on key commodities.

One of the key players in the Ring of Fire is KWG Resources Inc. and it issued a statement Dec. 6 that said: “The inclusion of chrome sources in Kazakhstan and India, on a U.S. State Department leaked listing of strategic assets, demonstrates the potential global significance of the Ring of Fire chromite discoveries. Until now, North America has had no commercially viable sources of chromite,” explained KWG president Frank Smeenk.

Northern Ontario growth plan summit gets mixed reviews – by Patrick Demers and Lindsay Kelly (Northern Ontario Business – July, 2011)

July 7, 2011

Delegates seek action on Northern Growth Plan

Attending the Think North II summit and working with delegates from across Northern Ontario marks the halfway point to a successful Growth Plan for Northern Ontario, said Irish guest speaker John Gallagher.

But for most listening to his presentation, it certainly didn’t feel that way. Nearly 500 people representing communities and townships from across Northern Ontario attended the four-day summit hosted by the Ministry of Northern Development, Mines and Forestry (MNDMF) in Thunder Bay and Sudbury.

The event attracted guest speakers from around the world who shared their stories of economic development success with those in attendance, and offered ideas and advice as to how Northern Ontario can improve theirs. But the more delegates listened, the more some got upset.

A newkind of harvest [Northern Ontario Peat fuel] – by Ian Ross (Northern Ontario Business – February, 2009)

July 7, 2011

Provincial off-coal promise speeds prospects for northwestern Ontario peat fuel development

A test burn of peat pellets this spring at an Atikokan generating station could build a case for a new type of forestry in northwestern Ontario. Peat Resources Ltd. is working with Ontario Power Generation (OPG) and university researchers to determine if peat can be a viable renewable fuel to help the province get off using coal for electricity generation by 2014.

The Toronto’s company’s once-stalled peat harvesting project in Upsala is back on track through a collaboration with the Ontario Centres of Excellence, Lakehead University, Ottawa’s
CANMET Energy Technology Centre and OPG.

They are involved in a large combustion trial at the Atikokan Generating Station combining 500 tons of peat pellets with wood pellets and coal. OPG was granted a Certificate of Approval by Ministry of the Environment this year to do a limited test burn.

NEWS RELEASE: Peat Resources in Ontario

July 7, 2011

July 5, 2011

Trading Symbol: PET-TSX Venture Exchange

Peat Resources Limited has renewed its permits on 19,000 hectares of peatlands in the Upsala area of northwestern Ontario and has received a Letter of Authority from the Ontario Ministry of Natural Resources to carry out surveys and resource evaluations of peatlands in the McFaulds Lake (Ring of Fire) region.

As previously reported, the Upsala properties are located adjacent to the TransCanada Highway and CP railway, about 130 km northwest of Thunder Bay, and contain approximately 200 million tonnes of fuel-grade peat (defined at NI 43-101 standard). The peat resources are within economic transportation distance of OPG’s Atikokan Generating Station and the Port of Thunder Bay.

The McFaulds Lake peatlands are of special interest because of their proximity to Ring of Fire mineral exploration activity. Proposals for development of these base metal deposits point to the need for over 50 MW of power at the remote mine sites and up to 300 MW at a ferrochrome processing facility at a location to be determined in northern Ontario. Peat Resources Limited is in discussion with the mining companies, provincial government authorities including the Ring of Fire Secretariat and First Nations of the region.

Master Plan To Destroy Northern Ontario – by Gregory Reynolds (Highgrader Magazine – Summer 2011)

July 7, 2011

This column was originally published in the Late Summer, 2011 issue of Highgrader Magazine which is committed to serve the interests of northerners by bringing the issues, concerns and culture of the north to the world through the writings and art of award-winning journalists as well as talented freelance artists, writers and photographers.

The recent annual meeting of Federation of Northern Ontario Municipalities (FONOM) heard a great deal of comment, and concern, expressed about the Ontario government’s love affair with Greater Sudbury and Thunder Bay. Speakers claimed these two cities appear to be favoured when the Liberal government of Dalton McGuinty doles out assistance to the North.

That the two largest centres are special, even privileged, should not have been a surprise to those in attendance.

Members of Timmins city council should have been least surprised since famous prospector, and equally famous outspoken advocate for Northern Ontario, Don McKinnon presented each of them with two documents in 2004: The Master Plan to Destroy Northern Ontario; and Addendum to The Master Plan to Destroy Northern Ontario.

For peat’s sake: Use this source of energy – Stan Sudol (Toronto Star – February 11, 2005)

July 7, 2011

The Toronto Star, which has the largest broadsheet circulation in Canada, has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

This article is being posted for archival purposes. Stan Sudol is a Toronto-based communications consultant who writes extensively on mining issues. stan.sudol@republicofmining.com

Not since the oil price hikes of the 1970s has Ontario’s energy future been so precarious. Dwindling North American gas supplies, Middle-East turmoil and enormous energy demands from Chinas are all causing shortages and price increases of oil, gas and coal.

To keep a green election promise to reduce pollution, the Ontario Liberals are committed to closing five coal-fired power plants, which supply 25 per cent of the province’s electricity.

The one Ontario fuel source that could help the province weather the energy turmoil of the next few years is all but ignored. That energy source is peat, a relatively economical alternative that produces significantly less pollution than coal. A 1982 provincial report indicated that Ontario’s peat resources have the energy equivalent of approximately 26 billion barrels of oil – this province’s version of the Alberta tar sands.