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[Teck Resources] Don Lindsay learns to keep his appetite in check – by Brenda Bouw (Globe and Mail – April 16, 2011)

 The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media. Brenda Bouw is the Globe’s mining reporter.

“If you are building a great country, there are certain things that anchor, that form a base, that you should not give away, and no other country does. Unfortunately, we did give it away in 2006-2007 [Inco and Falconbridge] and we’ve seen what happened.”
(Teck CEO Don Lindsay-April 16, 2011)

Commodities are booming and Teck Resources Ltd. is flush with cash. But the company isn’t in a rush to spend it – and neither, apparently, is Don Lindsay. Today, he’s lunching on a soup-and-sandwich combo from Tim Hortons – a meal he regularly eats at his desk on the 34th floor of the company’s Vancouver headquarters.

“How much growth do we need?” the 52-year-old chief executive officer asks. “Because we have a lot.”

A focused approach is the product of a tough lesson for the diversified miner, which only two years ago was on the brink of disaster after a debt-heavy acquisition on the eve of the global economic meltdown.

Mr. Lindsay was in his third year as the company’s CEO when he orchestrated the ill-timed $14-billion purchase of Fording Canadian Coal Trust. The deal, which Teck financed with $9.8-billion (U.S.) in debt, pushed the company close to ruin. Fearing the worst, investors drove Teck stock to a multiyear low of just above $3, and some were calling for his resignation.

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Clash of cultures blamed in Vale Inco strike – by Tony Van Alphen (Toronto Star – March 27, 2010)

Tony Van Alphen 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. This article was originally published March 27, 2010.

Mark Cutifani runs a gold mining company in South Africa now, long gone from Vale Inco in Canada where he had begun engaging workers and changing an adversarial climate that had defined labour relations for more than half a century.

That adversarial climate is back in a big way at the mining giant in Sudbury and Port Colborne, where more than 3,100 employees have remained off the job in an increasingly bitter 8 1/2-month strike.

The classic labour-management struggle threatens to set back labour relations for years and undermine the value of one of the richest mineral deposits in the world.

The United Steelworkers union says a clash of cultures is at the root of the dispute. It argues that Inco’s Brazilian owners want to instill a foreign brand of subservient labour relations here; run roughshod over existing workers’ rights and cut bonus pay at a time when the company is profitable. Vale Inco says the union’s statements smack of racism and the company rejects the idea that cultural differences have anything to do with the strike.

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[Vale Inco Miner’s Income] Where upper-class incomes are earned underground – by Tony Van Alphen (Toronto Star-May 18, 2008)

Tony Van Alphen 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. This article was originally published May 18, 2008.

SUDBURY– Jack (Coco) Simons could retire today with a good pension. But he’s having too much fun making a whole lot of money underground.

Riding the boom of all booms here, Simons collected about $152,000 in gross pay last year as a top-notch production miner at Vale Inco’s Coleman Mine in the northwest end of the city.

This year, Simons says he could crack the $165,000 mark with a little more overtime. “It would be foolish for me to quit now,” says the fit, 53-year-old Simons, relaxing on his couch after a 12-hour shift. “I love this. The money is just too good. It’s motivational. Why not go for it.”

Sudbury miners are making more money than ever because of soaring nickel prices and worldwide demand for the mineral, a key element in stainless steel and other alloys. Simons receives a base rate of $27.81 an hour but earns a great deal more because he’s a member of one of numerous elite crews that each extract thousands of tons of ore every week.

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Sudbury booms on soaring metal prices – by Tony Van Alphen (Toronto Star-May 18, 2008)

Tony Van Alphen 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. This article was originally published May 18, 2008.

“And everybody’s tickled, for it’s Saturday tonight”
– Stompin’ Tom Connors, “Sudbury Saturday Night”

GREATER SUDBURY – It feels like Christmas here every day. Everybody is in a rush. And everybody seems to have money to spend. Newcomer Rick Chessel got that holiday buzz when he tried to elbow his way from shop to shop at the New Sudbury Centre on a recent Saturday.

“It was just like the day before Christmas,” says the 51-year-old machinist. “It was shoulder to shoulder everywhere.”

Diners are spending more at the Tommy’s Not Here restaurant in the south end. At the SRO nightclub downtown, where the Eaton’s store once stood, the acronym really fits because it’s standing room only many nights.

“Everybody’s happy,” says miner Jack (Coco) Simons. “It’s been a long time since we’ve seen this.” The “nickel capital of the world” hasn’t had a boom like this since Stompin’ Tom Connors began banging his feet and singing “Sudbury Saturday Night” at the Coulson Hotel in the 1960s.

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[Canada] Northern diamonds in the rough – by Lisa Wright (Toronto Star – April 23, 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. This article was originally published April 23, 2011.

These women know the drill in a quest for a girl’s best friend

It was the little Canadian diamond mine that could – then fell off the rails.

Hopes were high for the Jericho mine when it started cranking out carats five years ago in Nunavut, 420 km northeast of Yellowknife. But operational setbacks, the strong loonie, skyrocketing oil prices and sinking rough diamond prices all took their toll. Former owner Tahera Diamond Corp. went into bankruptcy protection and was forced to mothball it less than two years into production.

But the daughter of a Canadian mining icon and a very determined geologist hope to breathe new life into this former gem after purchasing the shuttered property last year with a goal of reopening it as early as next year.

“Ultimately we bought Jericho with a view that it wasn’t irreparably broken, but there is a lot of work to do to get it to where we want it,” says Julie Lassonde, executive chairman of the mine’s new owner Shear Diamonds Ltd.

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Call for separate [Ontario] North – by Ron Grech (The Daily Press – April 20, 2011)

Ron Grech is a reporter for The Daily Press, the city of Timmins newspaper. Contact the writer at  rgrech@thedailypress.ca

City council rejects idea

A deputation by a former Timmins councillor promoting the idea of Northern Ontario separating from the rest of the province had several current councillors squirming in their seats this week. “If Quebec can have a vote to separate from Canada, surely we can have a referendum vote to separate from southern Ontario,” said Don Collins, who served for many years as a Timmins councillor.

Collins cited several measures at Queen’s Park which he felt points to the provincial government’s disconnection from Northern Ontario. They included the cancellation of the spring bear hunt and a proposal to reduce resource industries’ access to Crown forests in order to protect woodland caribou.

“I ask council if they could pursue this matter.” Collins’ remarks received a strong endorsement from one councillor – Pat Bamford. “I’m very supportive of Northern Ontario as a separate province,” Bamford told council following Collins’ presentation.

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[Northern] Ontario [Mining] Suppliers Explore New Horizons – by Russell A. Carter, Managing Editor – Engineering and Mining Journal

Engineering and Mining Journal is a monthly publication that highlights information about new mining equipment, technology, and techniques. This article was published February 10, 2011.

Offering mining equipment and services ranging from basic ‘big iron’ to high tech, companies in the Sudbury/North Bay/Timmins area are taking a hard look at export-market opportunities

Canada’s Northern Ontario, a region larger than France and Germany combined—representing about 90% of the land area of the entire province, but containing only a small fraction of its people—is geographically distant from most population centers but is solidly emplaced in the nexus of world-class mining districts that form the backbone of the global minerals industry.

The region’s Sudbury Basin is host to one of the world’s largest deposits of nickel and copper, and offers such favorable prospects for additional mineral wealth that it has attracted billions of investment dollars from both Canadian and international mining giants such as Brazil’s Vale (Vale Ltd., formerly Inco) and Switzerland’s Xstrata plc (Xstrata Nickel, formerly Falconbridge).

The dollars continue to flow in. The Ontario Mining Association reports that Vale plans to invest $3.4 billion in its Sudbury area operations, including $200 million to upgrade the Clarabelle mill, $360 million to bring the Totten mine into production and up to $2 billion on an Atmospheric Emissions Reduction (AER) project to cut sulphur dioxide emissions by 80%. Quadra FNX intends to spend $200 million on Sudbury area expansions and North American Palladium, north of Thunder Bay, is sinking $270 million into an expansion of the Lac des Iles mine.

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Grits would restore FedNor – by Mike Whitehouse (Sudbury Star – April 16, 2011)

The Sudbury Star, the City of Greater Sudbury’s daily newspaper. This article was published on April 16, 2011. mwhitehouse@thesudburystar.com

“This is one of the richest places on Earth, Northern Ontario, and it often has that feeling
that it’s not getting the benefit from all the wealth under the ground. …One the great things about Northern Ontario — you see it everywhere — this is a part of the world that has absolutely world-class expertise in mining technology, mining research and mining science. And we mustn’t lose that.” (Liberal Party Leader Michael Ignatieff – April 16, 2011)

Brian Blackborough only wanted to ask Michael Ignatieff one question. The long-haul trucker from Markstay, who pulled himself off the road months ago to care for his ailing wife in their home, wanted to know why he’s being punished for doing so.

As it stands, Canadians in his circumstance can qualify for Employment Insurance only if their spouse is likely to die within six months. And even then, the benefit is only paid for six weeks. That means Blackborough was forced to choose between his wife’s well-being and their income.

The question stuck with the Liberal leader for a number of reasons. Ignatieff’s mother died of Alzheimers and his father stayed home for eight years to care for her. It was a harrowing and traumatic experience he wishes on no one, he told a packed, partisan crowd at Friday’s town hall.

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Best little [Sudbury mining] high-tech secret – by Carol Mulligan (Sudbury Star – April 20, 2011)

The Sudbury Star, the City of Greater Sudbury’s daily newspaper. This article was published on April 20, 2011. cmulligan@thesudburystar.com

Steve Matusch remembers his first day as a student on placement at Inco’s now defunct copper refinery, when he was studying systems engineering at Waterloo University. From the time he was a boy playing with Lego blocks, Matusch had dreamed of a day when he would build real machinery.

He walked across the plant floor at the copper refinery to a huge and complicated copper-stripping machine manufactured in Sweden and thought: “wow, this is what I want to build.” Today, the company over which Matusch presides, Ionic Engineering Ltd., is the technology leader in producing equipment like that piece he admired years ago.

“It was a lot of fun how that happened, when you come from here and all of a sudden we beat the big boys at some things,” Matusch said Tuesday during a walkabout at Ionic’s headquarters on Mumford Road in the Walden Industrial Park.

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Time for Canada to get Serious on Metals Recycling – by Paul Stothart

Paul Stothart is vice-president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues. This article was published in November, 2010.

As a consequence of its fundamental role (such as turning rock into 99.99% pure metal), the Canadian and global mining industry faces a range of environmental challenges relating to water use, tailings management, air emissions and energy efficiency, among others. And, as a consequence of its global presence and importance in developing countries, the sector faces a range of social issues – Aboriginal relations, community engagement, social and health investments, and others. 

On these two inter-related themes, there is no shortage of demands placed upon the mining industry. In assuming its responsibilities, the industry invests heavily in schools, roads, hospitals, clinics and nutrition programs, among other initiatives, and adheres to numerous standards and protocols in addition to host government laws and regulations. One MAC member company has reported fully 15 codes and protocols that guide its global practice in the area of corporate social responsibility. These actions and investments are for the betterment of Canadian and global society, just as the products themselves, as built from minerals and metals, contribute to an improved quality of life. 

However, one socio-environmental area that does not receive sufficient attention in Canada, and where Canada arguably lags Europe, China and other regions, relates to the recycling of metals.

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Not another wimp out [Comparisons to Brazilian Takeover of Inco] – by Martin Goldfarb (Toronto Star-April 18, 2011)

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

Martin Goldfarb is principal at Goldfarb Intelligence Marketing and was official Liberal party pollster from 1972 to 1984.

Inco is an example worth remembering. At one point Inco was
a global leader, dominating a mining category. It was the soul
of the city of Sudbury and added stature to Ontario. It produced
intellectual property in the mining industry that was second to
none and respected globally. It provided work to miners, engineers, lawyers, bankers and others. So much of this was lost. The intellectual property and pride that Inco brought to Canada,
Ontario and Sudbury are all but gone. What happened? Management ceased to lead. In so doing it became vulnerable to takeover. (Martin Goldfarb-April 18, 2011)

Australia said No to Singapore. Australia decided its stock exchange is not for sale. Now we in Canada are thinking about whether or not the Toronto Stock Exchange (TSX) should be taken over by the London Stock Exchange (LSE).

A country is more than a business. There are totems in our country that define our personality, help create our character and engender pride, independence and a sense of our own charisma. Some arise from our geography (the Rockies, the Arctic), some from our natural resources (oil, water, lumber, maple syrup) and some from government (national health care). All help give us a sense of who we are.

But there are other totems in Canada that are not a function of our geography, our geology or our government. These are institutions created by the citizens of our country in business and academia — our universities and our internationally recognized businesses, such as RIM today, and in the past, Inco and Falconbridge. Inco and Falconbridge have disappeared but should never have been allowed to do so. A dose of economic nationalism is good for our soul. In some circumstances, profit should be second to the national interest. National interests help define who we are.

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A War of Words or a War of Worlds: Brazilian Vale versus North American USWA – by Kim T. Morris (Part 3 of 3)

Kim Morris won third place in the 2011 Arthur W. Page Society and Institute for Public Relations case study competition – business school category.

Her case study entry was on the Vale Sudbury year long strike – A War of Words or a War of Worlds: Brazilian Vale versus North American USWA.  She  is a senior adviser of communications and public affairs at the North East Community Care Access Centre.

Discussion

Reputation

Public perception of Vale has changed dramatically since 2006. There is mistrust and suspicion surrounding the company’s motives and future plans for the Sudbury operations. Actions and decisions made during the 11 month strike have tarnished Vale’s reputation not only in the Sudbury area, but province-wide, and possibly internationally. Unions from across the world weighed in on the labor dispute. In January 2010, the trade magazine Metal Bulletin described Vale’s hard line as an attempt to break the union.

Reputation matters. Reputation impacts a wide variety of areas: consumer purchasing decisions, employee recruitment and retention, investment decisions, even how media covers your news [40]. From an outsider’s point of view, Vale does not seem very concerned with its reputation, choosing to place profits ahead of its people.

USWA Local 6500 also needs to rebuild and revamp its reputation. Given the lack of community support received during the strike, the actions of certain members, and the harsh and hateful words spoken during the dispute, the union has a long road ahead of it if it is to restore its reputation to where it was prior to the strike.

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A War of Words or a War of Worlds: Brazilian Vale versus North American USWA – by Kim T. Morris (Part 2 of 3)

Kim Morris won third place in the 2011 Arthur W. Page Society and Institute for Public Relations case study competition – business school category.

Her case study entry was on the Vale Sudbury year long strike – A War of Words or a War of Worlds: Brazilian Vale versus North American USWA.  She  is a senior adviser of communications and public affairs at the North East Community Care Access Centre.

USWA Local 6500

The executive of USWA Local 6500 anticipated difficult negotiations from the start. This was a new company and the negotiating team did not know what to expect. The only thing that was clear was that there would be no concessions on the part of the union.

Talks collapsed mere weeks after they began and the gloves came off shortly thereafter with both sides blaming the other for the impasse [23]. It was at this time that the USWA Local 6500 first alleged that the root cause of the problem was a lack of understanding by Vale’s Brazilian owners as to North American culture, along with a desire to trample workers’ rights and reduce their compensation package [23].

As the months wore on, the USWA Local 6500 web page featured alleged replacement workers, providing names and addresses as well as photos of the individuals. Anonymous members posted that there should be retaliation toward these so-called “scabs”. This resulted in a flurry of threats, assaults and damage to property throughout the community. In May 2010, Vale fired nine strikers for purported violations of its code of conduct on the picket line. There were also criminal charges laid against some of the nine strikers for other offences related to the strike. The matter is still before the Ontario Labor Relations Board and the courts.

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A War of Words or a War of Worlds: Brazilian Vale versus North American USWA – by Kim T. Morris (Part 1 of 3)

Kim Morris won third place in the 2011 Arthur W. Page Society and Institute for Public Relations case study competition – business school category.

Her case study entry was on the Vale Sudbury year long strike – A War of Words or a War of Worlds: Brazilian Vale versus North American USWA.  She  is a senior adviser of communications and public affairs at the North East Community Care Access Centre.

Final Case Study

Abstract

In July 2009, USWA Local 6500, the union representing the employees of Vale’s Sudbury operations went on strike. This was to become the longest and most acrimonious strike in Sudbury mining history. Both sides in the dispute were responsible for less than flattering behavior, including leaking of documents, bullying, making racist comments, and even criminal activity. The final result of this strike is a community that has lost respect for both organizations.

This case study offers an opportunity to study how actions taken during a strike impact on the reputation of both parties. It also highlights the communication breakdown between not only both parties but also with their key stakeholders.

Overview

“We are very happy with the results of the ratification vote. The agreement establishes a newworking relationship with our employees and the union and allows us to move forward with our long-term, sustainable growth plans. We look forward to returning to normal production andbuilding the future together with employees.”

Tito Martins, Vale’s Executive Director for Base Metals
Vale news release, July 9, 2010 [1]

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South Africa the unlikely new kid on the BRIC block- by Geoffrey York (Globe and Mail-April 14, 2011)

 The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

Mr. Zuma could scarcely conceal his exuberance as he expressed his gratitude to the Chinese leaders who had invited South Africa to join the BRIC group. But his presence at the summit is as much about politics as it is business. The club that invited him is increasingly positioning itself as a counterweight to the Western economies, and it needed to recruit an African member, no matter how small it might be on the global stage.

Economically, the BRIC group is already a success. The BRIC economies have grown so dramatically in the past few years that they could overtake the combined size of the G7 nations – the Western-dominated group of economies – within the next decade. Two of the four BRIC founders, China and Brazil, are now ranked among the world’s five biggest economies, with China overtaking Japan last year to rank behind only the United States in size.

Why, then, did they invite the world’s 27th-biggest economy to join their club? Jim O’Neill, the Goldman Sachs economist who coined the “BRIC” term in a 2001 research paper, said he is baffled by the decision to invite South Africa into the group. Other countries in the emerging world – including Indonesia, Mexico, Turkey and South Korea – are much bigger than South Africa, he noted. “It is tough to see how South Africa matches up to these four countries, never mind the BRIC countries,” he wrote in an early assessment.

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