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Growing your mining supply company for a global market – by Dick DeStefano

Dick DeStefano is the Executive Director of Sudbury Area Mining Supply and Service Association (SAMSSA). destefan@isys.ca This column was originally published in the March, 2011 issue of Sudbury Mining Solutions Journal.

One of the most consistent questions from the SAMSSA membership is how do we build a truly viable and vital company that can meet all the needs and  demands of a global market. What model or dynamics works best and what is a waste of time and effort? A worthy question.

The list of options is somewhat endless and changes quite frequently as new models emanate from different economic conditions and research.  What works for one company is a waste of time for another depending on the attitude and resources available, but I believe that the most fundamental model is the generic structure that encompasses the strategic business plan.

The list of models presented here is not exhaustive but appear as the most applied.

Strategic planning is an organization’s process of defining the strategy or direction and making decisions and allocating resources to pursue this strategy utilizing its capital and people. You can use a SWOT or PEST or STEER analysis or even a supplementary but comprehensive model called EPISTEL (Environment, Political, Informatic, Social, Technological, and Economic & Legal) as the primary map for success. All strategic planning deals with at least one of three key questions: 1. What do we do? 2. For whom do we do it? 3. How do we excel?

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The not-new, not-a-cycle mining supercycle – by David Robinson

Dr. David Robinson is an economist at Laurentian University in Sudbury, Canada. His column was originally published in March 2011 issue of Sudbury Mining Solutions Journal a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury.  drobinson@laurentian.ca

Mr. Keynes had it right: the financial community is very, very emotional. We are barely climbing out of what many were calling the great recession, and suddenly a flock of bankers and business reporters are babbling about a new economic supercycle.

Well, I have news for them. There is no new supercycle. Don’t run off and sell all your mining stocks, though. This isn’t bad news – it’s just a better way of understanding the good news.

To start with, the supercycle isn’t new. Even Gerard Lyons, the guy who wrote The Supercycle Report, shows the cycle starting in 2000. It is the same old supercycle that we were talking about five years ago in this space.

Second, it isn’t a cycle. An interesting thing about the figures from Gerard Lyons is that they show a gradually rising growth rate, not a series of cycles. Each of the so-called high cycles got a bit higher.

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NEWS RELEASE: NORTHERN NEW DEMOCRATS ENDORSE MINING STRATEGY

FOR IMMEDIATE RELEASE
March 7, 2011

NDP only party with a mining strategy, and a mining critic – MP Gravelle

SUDBURY, ON – New Democrats unanimously endorsed a New Democrat Mining Strategy at this weekend’s Northern Council in Sudbury.

“I am so pleased that provincial and federal New Democrats from Northern Ontario endorsed this plan which protects Canada’s strategic interest by ensuring Canadian workers and their communities will be the primary beneficiaries of our natural resources,” said NDP Leader Jack Layton. “Recent years have seen foreign control over Canada’s mining sector rise from 12% when the Harpers Conservatives took power to over 40% today. And Northern Ontario has paid its own price for this increase in foreign control.”

“Over 300,000 Canadians, particularly those living and working in rural, Northern and remote communities, are directly employed in the mining sector,” said Claude Gravelle, (Nickel Belt), the NDP’s Mining Critic and the strategy’s author. “The mining, metals and mineral exploration sector, is worth $66 billion and directly contributes almost 4% of Canada’s total GDP, even before consideration of economic spin-offs. So, it is critical that we have a strategic plan in place to defend our interests.”

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Michael Gravelle, Ontario Minister of Northern Development, Mines and Forestry: Official Opening Ontario Pavilion (PDAC) Speech (March 7, 2011)

(L to R) Garry Clark, Executive Director of the Ontario Prospectors Association; Phil Vinet, Mayor of Red Lake; Alan Spacek, Mayor of Kapuskasing and President of FENOM; Honourable Michael Gravelle, Minister of Northern Development, Mines and Forestry; Chris Hodgson, President of Ontario Mining Association; Glenn Nolan, Vice-President, Aboriginal Affairs and the PDAC’s first Vice-President

Check Against Delivery

Thank you, for your kind introduction. And welcome everyone to PDAC 2011!

I’d like to begin by extending a warm welcome to Glen Nolan, First-Vice President of the Prospectors and Developers Association of Canada, Garry Clark, Executive Director of Ontario Prospectors Association and Chris Hodgson, President of the Ontario Mining Association, who have joined us here today for the official opening of the Ontario Pavilion.

We’re all looking forward to participating in the greatest mining show on earth here in Toronto!

This year I’m very excited to report a new record for delegations this year – 25,000!  Over the next few days we will be telling these delegations from all over the world about Ontario! 

I’m very happy to report that this year for the first time; more than 800 active mining exploration projects have been recorded across the province.

As well, we’ll be telling the world that we’ve set a new record in exploration spending – in 2011 we are expected to hit $951 million!

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Ontario P.C. Randy Hillier – “Liberals have turned Northern Ontario into a have-not region of a have-not province”

Founded in 2006 by James Murray, NetNewsledger.com offers news, information, opinions and positive ideas for Thunder Bay, Ontario, and for Northwestern Ontario. This column was originally posted on March 4, 2011.  newsroom@netnewsledger.com

THUNDER BAY – “The McGuinty Liberals’ Northern Growth Plan is yet another hypocrisy perpetrated by a party which has failed Northerners time and time again”, stated Randy Hillier, PC Party critic for Northern Development, Mines and Forestry. “A ‘northern’ document originally penned by George Smitherman, the growth plan will do nothing to stem the tide of a Northern recession that the Liberals have created”.

The PC critic for Northern Development, Mines and Forestry pulled no punches in his critical look at the plan. “With scores of damaging Liberal policies already put in place by the government over the past two years, it’s tough to see how the addition of a Northern think-tank is going to help create prosperity in Northern Ontario,” stated Hillier, “Dalton McGuinty’s liberals raised energy prices, flubbed the Mining Act reforms, cut off 50% of the North from all development with Bill 191 and decimated the forestry industry. What’s left for a policy institute to do?”

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Liberals set to go mining for votes in Ontario’s north – by Christina Blizzard (Toronto Sun)

Christina Blizzard is the Queen’s Park columnist for the Toronto Sun, the city’s daily tabloid newspaper.

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

christina.blizzard@sunmedia.ca

The big question to ask Northern Development Minister Mike Gravelle when he unveils his long-awaited Northern Development Growth Plan Friday is this: Is this really about jobs, development and good health and education services for the North?

Or is this a last-ditch pitch by the Liberals to shore up their fortunes in a part of the province that has felt shunned and ignored for the past seven years?

The Conference Board of Canada released damning figures Thursday that reveal northern Ontario had the second slowest growth in the country — after northern Quebec.

Hard hit by the downturn in forestry and associated manufacturing, from 1999-2008, northern Ontario clocked only a 3% growth rate. Quebec’s was lowest overall at 2.2% — but neighbouring northern Manitoba’s growth rate was 12.2% and southern Ontario came in at 8.5%.

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Ring of Fire NAN communitiues map out their mining future – Ian Ross

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 and this article is from the March, 2011 issue.

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

With massive mine, transportation and processing developments coming to Ontario’s Far North within the next few years, First Nation leaders were gathering in February to map out a strategic direction built on consultation with mining companies. Cliffs Natural Resources has aggressive timelines to start construction for its chromite mine, processing and transportation project in the McFaulds Lake area of the James Bay region by early 2013, with mine production by 2015.

Les Louttit, deputy grand chief of the Thunder Bay-based Nishnawbe Aski Nation (NAN), said “the timing is right” for First Nations to determine how best to gain the maximum benefits from resource revenues, future jobs and spinoff business opportunities from the mine development.

The political advocacy organization, representing 49 communities within northwestern Ontario and the James Bay Lowlands, gathered its membership in Thunder Bay in late February for an inaugural economic summit. They wanted to collectively identify what challenges are ahead, and what they want out of a future resource-based economy.

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Ontario Ring of Fire Coordinator Christine Kaszycki builds trust and shepherds Northern development – by Ian Ross

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 and this article is from the March, 2011 issue.

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

Christine Kaszycki has to maintain a delicate balancing act. Appointed as the province’s Ring of Fire Coordinator last fall, she’s has the wide-ranging task of keeping Aboriginal people, Northerners and the mining companies all on the same page to advance the biggest mineral find in Ontario since the turn of the last century.

Kaszycki, a former assistant deputy minister of the Ministry of Northern Development, Mines and Forestry (MNDMF), already has well-established relationships with mining companies and many Aboriginal leaders in the Far North.

Though living in Sudbury, she regularly commutes to Thunder Bay, where she is staffing up a secretariat’s office there, and travels to the Northern communities for constant consultation with Aboriginal leaders.

Kaszycki views the job as evolving over time. For now, she’s concentrating on building capacity to prepare people in the Far North, many living in Third World-like poverty conditions, to take advantage of all the positive spinoffs from the looming mining projects in the James Bay Lowlands.

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PwC NEWS RELEASE: China’s role in global mining M&A overstated – Canadian buyers top world

China ramps up deal activity, but Canada outpaced the nation in 2010 36% to 6%: PwC report

Click here for: You Can’t Always Get What You Want: Global Mining Deals 2010

TORONTO, Mar. 3, 2011— Dispelling the myth that China is amassing de facto control of the world’s mining resources via mergers and acquisitions (M&A), data for the decade ended December 010 shows China remains a small player in global mining M&A. In 2010, only 6% of global mining
deals involved Chinese acquirers, compared to acquirers from Canada (36%), the United States (16%) nd Australia (16%), according to PwC’s new Mining Deals report released today.

Canada has always been a top destination for mining deals, but this year, Canada also topped buy-side ctivity – both within Canada and abroad.

“The reality is China has been a very active investor in global mining projects in recent years, but its urrent market share pales in comparison to Canada and other developed countries,” says John yholt, National Leader of Transaction Services, PwC. “Chinese-led M&A this decade has been
impressive, but consider that Rio Tinto and Xstrata alone have completed more acquisitions during he first ten years of this millennium than all Chinese buyers collectively.”

The PwC report tracked 713 deals in 2010 that involved a Canadian buyer compared to 161 involving a Chinese buyer. Year-end results bring the decade ended 2010 tally to 400 Chinese deals worth close to US$48 billion, which is considerable given Chinese buyers were negligible players in mining M&A only ten years ago.

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[Toronto PDAC] Mining convention: Let the hard rockin’ begin – by Lisa Wright

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 March 6, 2011.

Lisa Wright (Toronto Star Business Reporter)

With demand for metals red hot again, it feels like the Klondike for miners. An army of 25,000 from 125 countries is expected to show at the industry’s biggest annual blast, opening today in Toronto

Amid boom times in the metals business, the centre of corporate Canada will be transformed into a mining mecca this week as thousands prospectors converge at the Metro Toronto Convention Centre to dig for deals and take advantage of skyrocketing prices.

Investors are also welcome to attend the annual industry blast known as the Prospectors and Developers Association of Canada convention. The hard-rock bonanza draws all walks of the mineral exploration business from the guys who stake claims in the bush to brokers and bankers, students, salesmen, geoscientists and mining company executives from more than 100 countries.

The PDAC’s new president, Scott Jobin-Bevans, says a lot has changed since the first time he attended with his dad — both geologists from Flin Flon, Man. — about 20 years ago when the event was at the Fairmont Royal York Hotel.

“I would say the big difference is the sheer size of it. It’s a monster now,” he says.

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NEWS RELEASE: Building A Stronger Northern Economy: McGuinty Government Delivers Growth Plan For The North

Click here for: Growth Plan for Northern Ontario, 2011 

NEWS March 4, 2011

The 25-year Growth Plan for Northern Ontario will help create a stronger, more diverse and sustainable Northern economy.

This robust plan was developed with northerners for northerners. It will guide decisionmaking and investment planning in the region. To move the plan forward, the government will immediately:

  • Establish a Northern Policy Institute. The institute will play a key role in implementing and monitoring the growth plan
  • Develop a long-term strategy to create a more integrated transportation infrastructure system for air, rail, road and water.
  • Bring together northern community and business leaders to support regional economic planning, business innovation and entrepreneurship. This will help retain and attract investment in the North.

The growth plan is an important part of the province’s Open Ontario Plan. It will help attract people and investments to the region, support training, education and employment opportunities, create a highly qualified workforce and position the northern economy to compete on a global scale.

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Northern Mayors Task Force/Northeastern Ontario Municipal Association (NEOMA) Policy Paper (February 28, 2011)

PRESENTATION to Minister Michael Gravelle, Ministry of Northern Development, Mines & Forestry

Submitted by: Northern Mayors Task Force Northeastern Ontario Municipal Association (NEOMA)

February 28, 2011
Toronto, Ontario

On behalf of the Northern Mayors Task Force and the Northeastern Ontario Municipal Association (NEOMA), we would like to thank you for the opportunity to speak to you today.

Northern municipal governments are united in their aspirations for the future of those it serves. Northern municipal governments are tasked with building communities, balancing budgets and delivering a wealth of services. Our objectives are grounded in knowledge that much more can be accomplished when governments work together. We worked together to help weather the recent economic storm.

Although there are many important issues facing northern Ontario communities, we will focus on the following issues, which are of major importance to northern communities:
• Government legislation and policy
• The deterioration of the property tax base
• Infrastructure
• Energy
• Transportation

GOVERNMENT LEGISLATION AND POLICY

It is crucial to ensure that Provincial Policies and Legislation reflect the realities of Northern Ontario’s context in order to ensure that development is not inhibited. Currently, policy and legislation development are driven by the context of Southern Ontario rather than Northern Ontario’s context. Unlike Southern Ontario where growth management consists of trying to control and contain rapid growth, the North needs a plan to accelerate growth.

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NEWS RELEASE: Marten Falls First Nation Statement on Ring of Fire Blockade

MARTEN FALLS FIRST NATION – On January 25th, 2011, we announced that a blockade will commence and asked the companies to comply. To our knowledger, only the Billiken Camp complied; Noront made a statement to disregard the action; KWG made a statement that they obtained permission from Webequie First Nation (wrong First Nation to consult) and therefore, proceeded to disregard the order. This disregarded action has posed a serious threat to dialogue including the LUP (land-use plan with Ontario) process. In order to avoid a complete breakdown of communication and the imposition of a trespass notice to our territories, the following items need to be addresses by both government and the third party:

1. Winter Road

– No construction

– No plans

– No permit to cross Attawapiskat River Parkway

– Only Airlines are busy

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2011 ACTION PLAN FOR ONTARIO MINING: TAKING ADVANTAGE OF A CRITICAL WINDOW OF OPPORTUNITY – Ontario Mining Association (OMA) Policy Paper

 
 
 
 
 
 
This policy document was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.  

 

2011 Ontario Mining Association (OMA) Policy Paper

 

“China needs to build three cities larger than Sydney (or Toronto)
every year until 2030 to accommodate rural to urban migration.”
(Rio Tinto Presentation)

Ontario has been blessed with an abundance of natural resources, including untold mineral potential. For more than a century, word-class mineral discoveries in this province have brought development and prosperity, along with scientific and technological advances, enabling Ontario’s economy to evolve through innovation. From the earliest times, mining spurred on infrastructure development, enabled more equitable regional development and sustained a variety of support industries. These industries include obvious ones like manufacturing, but also perhaps some unexpected ones like education and financial services.

Today, mining continues to be an economic pillar of Ontario.  It is well positioned to grow its contribution to our economy.  Though the number fluctuates with various commodity price changes, mining in Ontario had revenues of $6.3 billion in 2009 (down by about 30% due to the global economic downturn).  The industry provides a major boost to our financial sector, with the Toronto Stock Exchange (TSX) currently being the leading global mining exchange, listing 57% of the world’s public mining companies and raising more mining equity capital than any other exchange.

Historically, Ontario has taken advantage of spikes that occurred as a result of US industrialization, the post-Second World War rebuilding of Europe and the industrialization of Japan.   We find ourselves in another of these defining moments of immense opportunity.  Large nations such as China, India and Brazil are experiencing mass urbanization and rapid development.  These nations are determined to narrow the gap between Western and developing nation lifestyles.  To do that mineral products are essential.

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