Republic of Mining

[Commodity] Super-Cycle Leaves No Economy Behind as Davos Shifts to Growth – Simon Kennedy (January 23, 2011)

February 22, 2011

This article was originally posted on the http://www.businessweek.com/ website on January 23, 2010.

Jan. 24, 2011 (Bloomberg) — For only the third time since the Industrial Revolution, the world may be entering a long-term growth cycle that will lift all economies simultaneously, driving bond yields and commodity prices higher.

The depth and scope of the expansion will be a focus for discussion at this week’s annual meeting of the World Economic Forum in Davos, Switzerland. Evidence of a broadening global recovery will enable U.S. Treasury Secretary Timothy F. Geithner, investor George Soros and 2,500 political, business and academic leaders to shift their emphasis away from crisis- fighting.

With the economic and investment outlooks “much better” than in recent years, “people are talking about how to get back to business as normal and what comes next,” said Jitesh Gadhia, a delegate to the conference and the London-based senior managing director at Blackstone Group LP, which runs the world’s largest buyout fund.

Goldman Sachs Group Inc., PricewaterhouseCoopers LLP and London’s Standard Chartered Bank are among the financial companies sending executives to the meeting. Their economists predict a growth spurt in coming decades led by emerging nations that will be strong enough to boost developed countries.

Ontario Mining Association gives Ontario budget an A+ – by Adelle Larmour (June 2010)

February 22, 2011

Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This article is from the June/2010 issue.

Ontario Mining Association president Chris Hodgson gave the Ontario Liberal government an A+ for its latest budget.

“We found it really encouraging that mining has been viewed as part of the solution for Ontario’s future,” Hodgson said. “We’re very pleased not just with the specifics, but also with the general tone that the government has taken toward mining.”

The province’s March 25 budget recognized that Northern Ontario’s mining sector plays an integral role in the economic development of the province. Mining in Ontario is a $10 billion business, provides the province with a $3.3 billion trade surplus and more than $600 million in corporate taxes annually.

“I think they realize we are a major benefit to the province, both in terms of the economy and society in general,” Hodgson said. “The spin-offs from developing mines are huge.”

Don McKinnon: quintessential prospector – Norm Tollinsky (September/2006)

February 22, 2011

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This article is from the September, 2006 issue.

For a guy who was supposed to end up in a ditch, Don McKinnon has done OK for himself. Northern Ontario’s most successful prospector, McKinnon began taking an interest in rocks while working in the bush as a woods superintendent for paper maker Kimberly-Clark.

He had an early taste of success in 1964, making more than $900,000 in a staking rush sparked by the discovery of the Kidd Creek copper-zinc deposit just east of Timmins. His real claim to fame, though, was his and partner John Larche’s key role in the discovery of gold at Hemlo on the North Shore of Lake Superior.

Born in Cochrane in 1929, McKinnon remembers having a talent for art and acting, but had no patience for sitting still. He and good friend Tim Horton co-starred in a school production of A Midsummer Night’s Dream, but both were, first and foremost, rink rats who played hockey every chance they had.

Tim ended up as an all-star defenceman for the Toronto Maple Leafs and the founder of the quintessentially Canadian coffee and donut chain.

Mining is back on several fronts [Ring of Fire] – Thunder Bay Chronicle-Journal Editorial (February 14, 2010)

March 15, 2011February 21, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was originally published on February 14, 2010.

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

BUSINESS CYCLES tend to raise and lower the economies of the communities in and around which they operate. Stable business benefits everyone, but even that comes with surprises.

Forestry is an example of an industry with an impressive track record that came up short when the recession deflated demand for its products. A U.S. recovery will eventually raise demand for lumber, pulp and paper, but never again to the same degree. The Internet has seen to that. Still, forestry is evolving with new products, including biomass to fuel the green energy revolution. Value-added opportunities continue to abound, if only they will be developed by entrepreneurs, encouraged by government.

Government is notoriously slow to react to the prospect – even the signs of change and there is a series of recurring jokes about how many studies there are at one time that seek to broaden the economy of Northern Ontario.

While that process drags on, there are new glimmers of hope for the North even as forestry flounders. Mining has always been the other big northern lynch pin and its own down time is apparently on the verge of a very big upswing. Two of them, actually.

Future may be here in a week [Ring of Fire] – Thunder Bay Chronicle-Journal Editorial (February 11, 2010)

March 15, 2011February 21, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was originally published on February 11, 2010.

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

IT WOULD be difficult to overstate the importance of the so-called Ring of Fire, a huge, horseshoe-shaped geological structure in the James Bay Lowlands of Northern Ontario. In just 30 months it has gone from a single drill hole to the probable jewel in the crown of a regional economic recovery.

The nearest communities to the ring of high-grade nickel-copper-platinum-palladium, chromite, vanadium and gold are the First Nations of Marten Falls and Webequie which are naturally angling to share the wealth. Much has been done to achieve that objective but lately, it appears the First Nations are not happy. An early partnership between Marten Falls and Noront Resources, the area’s key exploration company, for example, came apart this winter when the band council authorized members to block Noront planes from landing near their camps.

Everyone in Northern Ontario – most particularly First Nations anywhere near mineral deposits – must fervently hope that Marten Falls and Webequie don’t send companies packing from the Ring of Fire like another band further north did earlier. It cost Ontario taxpayers $5 million in company compensation, but the loss in this instance would be almost incalculable given the ring’s potential.

From coal to gas [Ring of Fire and Other Mining Implications] – Thunder Bay Chronicle-Journal Editorial (November 24, 2010)

March 15, 2011February 21, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was originally published on November 24, 2010.

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

AS ONTARIO continues its onerous but ultimately necessary march toward cleaner air it is stepping into increasingly difficult territory. Its so-called green energy proposals are proving costlier all the time, and while no one should expect to reduce greenhouse gases and begin to reverse climate change without complications, Ontario seems to be making things more difficult for itself than it needs to.

This realization can be seen in every retreat from and change in its green energy policy, most recently to offer rebates on soaring electricity bills and alter an ill-thought-out time-of-use pricing plan.

Consumers are enraged at the proliferation of charges over and above basic electricity while lucrative contracts signed with alternative energy suppliers seem unnecessarily rich, given the fact that demand for electricity is going nowhere but up.

Nishnawbe Aski Nation (NAN) and Ontario Ministry of Natural Resourses (MNR) – it’s time to talk – Thunder Bay Chronicle-Journal Editorial – (August 6, 2009)

March 15, 2011February 21, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was originally published on August 6, 2009.

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

IT’S time that Natural Resources Minister Donna Cansfield sat down with Nishnawbe Aski Nation leaders and come to some sort of an agreement on the Far North Act. NAN’s Grand Chief Stan Beardy has blasted the provincial government over a perceived lack of consultation regarding Bill 191, which will set aside 225,000 square kilometres as a protected area within NAN First Nation homelands.

“Without (NAN’s) consultation, accommodation or consent,” Beardy stated, the legislation will effectively lock down the land to prevent First Nations – among the poorest people in Canada – from achieving economic independence by preventing the development needed to build healthy communities and help strengthen the Ontario economy.

While the government has launched committee meetings on the legislation, NAN says there are no hearings set for communities in the far North portion of the province, the ones most affected by the legislation.

The closest the Standing Committee on General Government gets to the far North is at the Sioux Lookout and Thunder Bay hearings.

Thunder Bay a link to ‘Heartlandia’ – by Livio Di Matteo (Thunder Bay Chronicle-Journal)

March 15, 2011February 21, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This column was originally published on June 01, 2009.

Economics Matters

For much of its economic history, Thunder Bay’s lake head role made it a transshipment point and transportation node that enabled it to reap the benefits of east-west economic flows – in particular, the grain trade. Thunder Bay’s role as the gateway to the west is about to get an important boost given the continued economic growth in western Canada and particularly the central interior North American economic region of Heartlandia.

Heartlandia – comprising Northwestern Ontario, Manitoba, Saskatchewan, North and South Dakota and Minnesota – is a region at the cross roads of the North American continent and indeed the world.

Heartlandia covers 2.4 million square kilometres with a population of nearly 9 million people and a GDP of about US$405 billion. This economic region contains agricultural production activities, food processing, forestry, petroleum, potash, uranium, coal, mineral and hydroelectric resources as well as substantial manufacturing, research and service capacity.

2011 Canadian Mining Hall of Fame – Innovation and Wealth Creation – by Stan Sudol

March 11, 2011February 21, 2011

The Canadian Mining Hall of Fame was conceived by the late Maurice R. Brown, former editor and publisher of The Northern Miner, as a way to recognize and honour the legendary mine finders and builders of a great Canadian industry. The Hall was established in 1988. For more information about the extraordinary individuals who have been inducted into the Hall of Fame, please go to their home website: http://mininghalloffame.ca/

Stan Sudol is a Toronto-based communications consultant, who writes extensively about mining issues.(stan.sudol@republicofmining.com)

2011 Canadian Mining Hall of Fame – Innovation and Wealth Creation

Like the commodity supercycle, he was back again to the delight of a “star-studded” mining crowd at the 23rd Mining Hall of Fame’s annual dinner and induction ceremony at the Fairmont Royal York Hotel, held recently in Toronto. I am referring to that perennial funny man, Pierre Lassande, Chairman of Franco-Nevada Corporation, who kept the 800-plus guests in stitches with his master of ceremonies commentary.

“I don’t want you to think of yourself as an audience,” Mr. Lassande began. “Think of yourselves as trapped Chilean miners! I promise we’ll get you out of here by Easter.”

He was joined at the head table by some of the top CEOs of Canada’s mining sector including, Don Lindsay of Teck Resources, Aaron Regent of Barrick Gold, Tye Burt of Kinross Gold, Pamela Strand of Shear Mineral and Michael White of IBK Capital Corp., just to mention a few.

Mr. Lassonde continued about the top mining story of the year, if not decade, “For three months they captured a worldwide audience who learned more about mining than we could ever teach them in their life time. … One of them got into a bit of a pickle when both his wife and his mistress showed up on top. He was the only one who was glad to be half a mile underground!”

Quadra FNX is Focused on Copper – by Stan Sudol

March 11, 2011February 21, 2011

Stan Sudol is a Toronto-based communications consultant, who writes extensively about mining issues.(stan.sudol@republicofmining.com)

Michael Winship is a familiar name in Northern Ontario’s hard-rock fraternity

“It’s all about copper at Quadra FNX,” chief operating officer Michael Winship told a packed audience at a lunch presentation hosted by the CIM Toronto branch January 20th.

The red metal, a key indicator of global economic strength, has soared over the past few months from a low of US$2.85/pound in July 2010 to around US$4.35 in January. (It hit an all time low of about US$1.25 in December 2008 during the last recession.)

Winship provided an overview of future investments that the newly merged company will be making in the next few years to take advantage of the booming demand for copper.

In March of 2010, Vancouver-based Quadra Mining Ltd. and Sudbury-based FNX Mining Company Inc. announced a friendly merger that combined Quadra’s open pit and metallurgical expertise and FNX’s underground mining and exploration prowess.

Quadra FNX operates three open pit copper mines in Nevada, Arizona and northern Chile, while its three underground mines, Podelsky, Levack and McCreedy West, are located in the northern range of the Sudbury Basin.

Power costs must be addressed for Northern Ontario industries – by Brian MacLeod

February 18, 2011

Brian MacLeod is the managing editor for the Sudbury Star, the City of Greater Sudbury’s daily newspaper. This column was published on February 10, 2011. bmacleod@thesudburystar.com

Duguid’s response to what could be an enormous long-term economic
boost for Northern Ontario is lukewarm by comparison.
(Brian MacLeod – Feb/18/2011)

The Ontario government had better not fiddle when it comes to dealing with Cliffs Natural Resources’ attempts to develop the Ring of Fire chromite deposit in Northern Ontario.

An opportunity lost now would resonate for decades.

The 5,100-square-kilometre tract of land, centred about 500 kilometres north of Thunder Bay, is thought to contain one of the world’s largest deposits of chromite — a key ingredient in the production of stainless steel.

The economic potential is staggering, but there are major roadblocks that could diminish those benefits. As many as 500 people could be employed at the mine, up to 300 people in transportation and up to 500 jobs could be created at a chromite processing plant.

For the North from the North [Leo Bernier – Emperor of the North] – Thunder Bay Chronicle-Journal Editorial (June 29, 2010)

March 15, 2011February 17, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was published on June 29, 2010.

LEO Bernier was a big man from a little town who emerged as the first home-grown northern politician to genuinely matter in Ontario government. A senior cabinet minister in the sturdy Tory government of Bill Davis, Bernier saw to it that Northern Ontario finally got noticed in provincial affairs. It is his lasting legacy and one that successive governments have maintained, if not always honoured in full.

First elected in 1966 to represent Kenora under John Robarts, he worked to equalize northern services and opportunities with southern standards, but never thought that he had to move south to accomplish it. Born in Sioux Lookout and raised largely in Ear Falls, he settled into Hudson, a town of 600 where the family business became its mainstay. It was there that he continued to live until his death Monday at 81.

Fittingly, Bernier entered politics after a succession of frustrating trips to Queen’s Park lobbying on behalf of his home town. “I always came back from Toronto downhearted,” he told The Chronicle-Journal for a look back at his career in 1999. “I saw the lack of concern and the lack of sympathy for the North.”

Natural resources still hold potential – Thunder Bay Chronicle-Journal Editorial (December 20, 2010)

March 15, 2011February 17, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was published on February 6, 2011.

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

EVEN as Thunder Bay and other Northwestern Ontario communities press ahead with knowledge-based industry initiatives there remain opportunities in traditional natural resources industries, but not all of them. Embracing high-tech knowledge business is essential to securing the future of northern communities.

Thunder Bay in particular is growing spectacularly in its health care research sector. Just as in other regional communities, with a number of its forest industries idled, new pursuits are essential to maintaining and growing the local economy.

A new study by the Conference Board of Canada confirms that the natural resources sector — and the industries that support it — provide the strongest potential for Northern Canada’s future economic development.

This report, Mapping the Economic Potential of Canada’s North, is one of a series of studies for the Centre for the North.

Time for North [Ontario] to take control – Thunder Bay Chronicle-Journal Editorial (February 6, 2011)

March 15, 2011February 17, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was published on February 6, 2011.

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

Provincial energy policy has punished the North with electricity prices that haven’t been able to match competing jurisdictions nearby. And yet, the North produces all of the electricity that it needs at a real price that is far lower than that which is being charged its industrial, business and residential users. (Thunder Bay Chronicle Editorial – Feb/06/2011)

THE TIME has never been better for Northern Ontario to take control of its own destiny. Discontent with provincial policy has rarely been stronger in the North which has been given a strong new hand to play in the form of major mining opportunities.

This region has shipped its resource riches and the bulk of their profits to southern Ontario and beyond for many decades, even as they provided the province with a major part of its revenue. One provincial government after another promised to facilitate value-added manufacturing of forest products but the logs and lumber, as well as much raw mine product, left here. Paper mills that did thrive are now mostly closed due in large part to provincial energy policy that helped to render them uncompetitive.

A slow provincial reallocation of forest resources is beginning to show some results, but the woods industry will never be what it was. The Northern Growth Plan remains to be written but from what is known about it so far, we should not expect a breakthrough in innovative thinking at Queen’s Park.

Get the price of power down [Ring of Fire smelter] – Thunder Bay Chronicle-Journal Editorial (February 8, 2011)

March 15, 2011February 17, 2011

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This editorial was published on February 8, 2011.

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

THE MESSAGE could not be clearer, the opportunity greater nor the time shorter for the Thunder Bay area. Cliffs Natural Resources, the major player in the giant Ring of Fire chromite deposit far north of here, has all but told the provincial government that it will build an electric arc furnace to process an estimated 70 million tonnes of ore in Northern Ontario if it can afford the electricity.

“At current provincial power rates, there isn’t a location in Ontario that is economically viable for Cliffs to build the ferrochrome production facility,” the company’s ferroalloys president Bill Boor said last week.

The ferrochrome furnaces would need 300 megawatts of power and “only a few” places in Northern Ontario meet these requirements, however, Sudbury is representative of a “technically feasible site,” he added. That is, it has the power supply, mining history and allied business.

“Representative of a feasible site” is pretty open-ended, and encouraging for alternate sites.