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Anglo American CEO Cynthia Carroll – Speech to the Mining Indaba, Cape Town, 8 February 2011 – “Partnership for Success”

Anglo American is one of the world’s largest mining companies focusing on platinum group metals, diamonds, copper, nickel, iron ore, metallurgical and thermal coal. www.angloamerican.com

Mining Indaba attracts mining analysts, fund managers, investment specialists and financiers from around the world. Corporate presentations on the newest and most successful projects provide the foundation for institutional portfolio growth and asset diversification. Government and agency presentations update policies and incentives for potential partners. (Mining Indaba LLC website)

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Partnership for Success

Good morning Ladies and Gentlemen. It is a great pleasure to be with you at this year’s Mining Indaba. I’d like to thank Minister Shabangu for her welcome remarks, as well as her very positive announcement yesterday. Thank you also to Professor Ferguson for his extremely interesting speech, which had thought-provoking insights for all of us.

My theme this morning is partnership. I would like to share with you Anglo American’s belief in the crucial importance of partnership between all stakeholders in the mining sector – a belief reflected in our ambition to be The Partner of Choice.

I am extremely optimistic about the future of our industry. After the severe distress of the financial crisis and a painful recession, the global economy has rebounded, thanks to particularly strong growth in the emerging economies. Even in the turbulent markets of 2010, China delivered GDP growth of 10.3%. And the IMF’s latest forecasts for the years ahead suggest continued recovery in the mature economies and further robust growth in emerging markets, ranging from 9.5% in China to 8% in India to around 5% in Brazil.

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Susan Shabangu – South African Minister of Mineral Resources – 2011 African Mining Indaba Conference Speech

Mining Indaba attracts mining analysts, fund managers, investment specialists and financiers from around the world. Corporate presentations on the newest and most successful projects provide the foundation for institutional portfolio growth and asset diversification. Government and agency presentations update policies and incentives for potential partners.  (Mining Indaba LLC website)

South African Minister of Mineral Resources – Susan Shabangu – 2011 African Mining Indaba Conference Speech – Cape Town, South Africa (February 8, 2011)

Honourable Ministers present
Captains of industry

Distinguished Guests

Ladies and gentlemen

Programme director

This forum continues to grow every year and brings together the best and the biggest in the mining industry. This year is no exception. Most of you have come from far and wide in search not only of opportunities but also for clarity. I hope I will do justice to your expectations this morning.

When I delivered this address last year, the world was just emerging from a deep recession. The resultant recession cut deep into the mining industry, however the economic recovery seems to have begun in earnest, with growth forecasts being constantly revised upward in the past few quarters. It is expected that the global GDP will grow at levels in excess of 4% by next year, with emerging economies being the fulcrum of this growth.

The expected economic growth is essentially driven by fiscal spending plans, mainly on infrastructure programmes in emerging economies, as well as increased household consumption, both of which are demand drivers for minerals.

It is for this reason that the mining industry is expected to grow at an average 4-7% in volumes terms during 2011, recovering to the levels preceding the crisis. The mining industry’s absorptive capacity of jobs to meet the demand and availability of expertise to respond to the emerging growth in mineral demand is currently in place, as a result of which it is expected that the 40 000 jobs that were lost during the crisis will be created during the course of this year.

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Ring of Fire in James Bay Lowlands – by Edgar J. Lavoie (June 2008)

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. This article is from the June, 2008 issue.

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

The man with a dream sits on a wooden bench 190 kilometers north of the Albany River and 240 kilometers west of James Bay.

Neil Novak, P. Geo., is wearing two hats today, the real one of which reads Spider Resources Inc., and the other is the shirt he is wearing, which spells out Noront Resources Ltd.  Novak is President and C.E.O. of Spider (SPQ:TSX-V) as well as Vice President/Exploration of Noront (NOT:TSX-V).

The kitchen tent is not a quiet place this morning.  The two cooks clatter about.  Men bundled up against the minus 17 degrees C. stomp in and out.  They relish the respite from a stiff wind out of the northwest.  They stomp around on the wooden floor in insulated rubber boots as they grab a coffee or sit down for a sandwich.

A Cessna Grand Caravan, courtesy of Billiken Management Services Inc., has just shuttled the writer and the photographer Jim Guillemette from Nakina airport – the end of the paved road – to an ice strip on McFauld’s Lake in the subarctic.

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NEWS RELEASE: Northern [Ontario] Industry Gutted by High Hydro Prices, Minister Hints at Sweetheart Deal

Randy Hiller is the provincial Progressive Conservative Member of Parliaiment for the eastern Ontario riding of Lanark, Frontenac, Lennox & Addington. Currently Mr. Hiller serves as the Opposition Critic for Northern Development, Mines and Forestry, and Opposition Critic for Labour. www.randyhilliermpp.com

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

Northern Industry Gutted by High Hydro Prices, Minister Hints at Sweetheart Deal 

Monday, 07 February 2011

Queen’s Park – It is unacceptable for a government to indicate that they may set one hydro price for one company while others are suffering, but that’s exactly what Dalton McGuinty’s government seems to be doing. Randy Hillier, PC Party critic for Northern Development, Mines and Forestry today blasted comments by the government that there was room for discussion on high hydro prices in exchange for a new Ferrochrome processing facility.

Cliffs Natural Resources, a company interested in the Ring of Fire development, released a statement last week saying they would be willing to build a new processing facility, but were unable to proceed due to inordinately high hydro prices. In response, Minister for Northern Development Michael Gravelle stated “I certainly recognize that we will need to become engaged in serious discussions with Cliffs related to the energy issues associated with a processing facility.”

“Is the Minister going to cut this company another McGuinty Sweetheart Deal?” asked Hillier. “Where were the special sweetheart deals for the Xstrata smelter which closed in Timmins due to exorbitant hydro prices just months ago, laying off hundreds of workers?

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NEWS RELEASE: Ontario’s Ring of Fire – hope or hype? MiningWatch releases report on Ring of Fire economics

MiningWatch Canada is a pan-Canadian initiative supported by environmental, social justice, Aboriginal and labour organisations from across the country. It addresses the urgent need for a co-ordinated public interest response to the threats to public health, water and air quality, fish and wildlife habitat and community interests posed by irresponsible mineral policies and practices in Canada and around the world. http://www.miningwatch.ca/

In reality, MiningWatch Canada is a well-known anti-mining, non-governmental organization (NGO). Although MiningWatch is disliked by many in the mining sector, some of the environmental and social issues that they bring up, are legitimate concerns that are generally addressed by the industry. – Stan Sudol

For the MiningWatch Canada report written by Joan Kuyek, please click here: Economic Analysis of the Ring of Fire Chromite Mining Play

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

Ontario’s Ring of Fire – hope or hype? MiningWatch releases report on Ring of Fire economics

Feb 04 2011

Since a major staking rush in 2007, mineral deposits in northern Ontario’s “Ring of Fire” have received considerable attention from the mining industry, the Ontario government, First Nations and non-governmental organisations. The mineral finds in the area are raising hopes about economic boom-times, while First Nations struggle to deal with the onslaught of mining claims and exploration activities on their traditional territories, and conservation groups raise concerns about protecting critical wildlife habitats and water systems.

A new report, commissioned by MiningWatch Canada and written by Joan Kuyek, cuts through the hype and raises important questions about the viability and potential benefits of developing the area’s chromite deposits.

The report points out the uncertainty around demand for stainless steel (the primary use of chromite), and the challenge that Ring of Fire proponents will have in competing with existing operations currently operating below capacity. The remote location, lack of infrastructure, power demands, and water management challenges will add costs and technical challenges to any new mine in the region.

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Mining clusters fuel economic growth – by Indira Singh (September, 2006)

Interrelated industries and institutions drive wealth creation

Clusters are a group of interrelated industries and institutions that drive wealth creation primarily through innovation and the export of goods and services. Clustered industries mutually reinforce and enhance
competitive advantage by acting as each other’s consumers, competitors, partners, suppliers and sources of research and development.

The Ontario Mineral Industry Cluster (OMIC) includes exploration companies, major mine operators, service and equipment suppliers, labour, training and education institutions, associations and other allied entities. Other well-known clusters include Hollywood, California’s Silicon Valley, Ottawa’s Silicon Valley North, the Netherlands’ cut flower industry and Houston’s oil and gas sector.

Over the last decade, clusters have attracted substantial attention from policy makers, legislatures, business leaders, academics, economic development practitioners and development agencies around the world.
Governments with widely differing ideologies in more than 30 countries and in the majority of U.S. states have adopted cluster-based economic development models. The cluster approach is also used by European governments, as well as governments in the Asia-Pacific region.

Why clusters work

Productivity and productive growth are the fundamental drivers of prosperity. Innovation is the key driver of productivity. Clusters drive innovation, economic growth and development.

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NEWS RELEASE: Canada maintains number-two spot for exploration in 2010

Metals Economics Group’s 21st Corporate Exploration Strategies study

U.S. dollar currency is used throughout this press release

Worldwide nonferrous exploration budgets by region, 2010
(more than 2,200 companies’ budgets, totaling US$11.5 billion)

(Note: The annual budget totals for Canada, Australia, and the United States
are typically much larger than those of most other countries; as a result,
MEG treats these countries as individual regions in its CES studies.)

Vancouver, British Columbia, January 24, 2011 – Canada maintained the regional number-two spot for planned exploration spending in 2010, attracting 19% of worldwide nonferrous exploration allocations. According to Metals Economics Group’s Corporate Exploration Strategies (CES), Canada has held second place for nine years since overtaking Australia in 2002. (Metals Economics Group’s study covers expenditures for precious and base metals, diamonds, uranium, and some industrial minerals; it specifically excludes iron ore, aluminum, coal, and oil and gas.)

Four provinces—Ontario, Quebec, Saskatchewan, and British Columbia—accounted for more than three-quarters of the $2.2 billion in planned Canadian nonferrous exploration spending in 2010. Of the 710 companies that planned to explore in Canada in 2010, 90% were based in Canada, together contributing 79% of the planned Canadian nonferrous exploration total. Worldwide, Canadian-based companies accounted for more than half of the 2,200+ active explorers covered by the 2010 edition of CES, and together accounted for 41% of the 2010 global exploration budget total.

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Vale: Chomiak says province will ‘bend over backwards’ [Vale Job Cutbacks in Thompson, Manitoba]

This article was originally published in the Thompson Citizen which was established in June 1960. The Citizen covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.

January 26, 2011 -by Ryan Flanagan
editor@thompsoncitizen.net

Provincial Innovation, Energy and Mines Minister Dave Chomiak was in Thompson last week, where he updated the Thompson Chamber of Commerce on efforts to reverse Vale’s decision to close its smelter and refinery in Thompson by the end of 2015.

“We will not consider the closing of the refinery and the smelter as an only solution,” he told the crowd of approximately 75 community leaders, businesspeople, and politicians. “We will not accept that. We’ll only consider options if Thompson and Manitoba, and the people that work here, have a value-added option.”

“Before the end of the month, we’re going to be providing options,” said Chomiak. “We want Vale to look at those options seriously. We think that their decision – even though they say that they canvassed a number of options – was made by only one party, in a complex business and social development that requires the input of many people, not the least of which are the people of Manitoba who own the mineral rights.”

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American filmmaker Michael Moore’s website: ‘Your search did not match any documents’ [Vale Job Cutbacks in Thompson, Manitoba]

This article was originally published in the Thompson Citizen which was established in June 1960. The Citizen covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.

February 4, 2011 – by John Barker
editor@thompsoncitizen.net

Video or blog entries related to Vale, Thompson and USW

It’s all the buzz. Churchill riding NDP MP Niki Ashton said Feb. 1 that “award-winning documentarian Michael Moore agreed to a request” by her to “help share her message about the devastating decision by Vale to close the Vale smelter and refinery in Thompson.”

Said Ashton: “Moore’s team expressed great interest in Vale’s decision and the devastating impact it would have on Ashton’s home community of Thompson. Moore’s team plans to post Ashton’s YouTube video on his website as well as post a series of blog entries by Ashton and the people who are losing their jobs … Moore and his team pointed to the parallels between the Thompson story and the story of Flint, Michigan as told in Moore’s film Roger and Me.”

Ashton went on to say Tuesday, “The story of Thompson parallels what the people of Flint, Michigan faced. Our community is the latest victim. Our goal was to get our message spread globally. We are fighting back. We are happy to have Michael Moore help us get our message to the world.”

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High Ontario Electricity Prices Hamper Ring of Fire Processing and Other Industry – by Livio Di Matteo

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario.  Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Ontario’s competitiveness has been hampered by its high electricity costs
and any mining development in the Ring of Fire will be purely extractive with
little in the way of value added processing if electricity costs remain high.
(Livio Di Matteo , February, 2011)

The news that Cliffs Natural Resources believes the price of electricity in Ontario is too high to allow for value added mineral processing from the Ring of Fire should not come as a surprise to those who have followed the recent decimation of the forest sector and it’s struggle with higher energy costs.  The impact of high electricity costs goes beyond Ontario’s North and any potential development in the Ring of Fire. 

Ontario’s industrial advantages were historically rooted in the advantages of its proximity to American markets and the Great-Lakes-St. Lawrence waterway, the presence of natural resources and the availability of cheap energy in the form of hydroelectric power. Whereas Ontario once had some of the cheapest electricity in North America, today it has become one of the higher cost producers. 

Just how high Ontario’s electricity costs got relative to adjacent Manitoba and Quebec is illustrated in the accompanying figures for the period 2000 to 2010.  (Please go to Di Matteo’s blog for figures) The data is for the electric Power Selling Price Index (EPSPI) constructed by Statistics Canada to measure the price movements of sales of electricity by distributors to commercial and non-residential users with the year 1997 set equal to 100.  The indices are for two broad industrial categories of sales – less than 5000 kW or 5000 kW and more. 

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Sudbury could host Ring of Fire chromite processing – 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. This article is from a Feb/4/11 website posting.

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

Chromite ore mined in the Ring of Fire by Cliffs Natural Resources may potentially be processed in Sudbury. The city is the front-runner to host the ore processing from a chromite deposit in the Northern Ontario’s Ring of Fire.

Cliffs Natural Resources released a much-anticipated Feb. 4 project description of its Cliffs Chromite project in the James Bay region.

The international iron ore and coal miner is eyeballing a brownfield site near Capreol in the north end of Sudbury. Canadian National’s main cross-Canada line runs through the suburb of 3,800.

In what Cliffs is referring to as a “base case” scenario, ore will be transported down a proposed permanent haul road – of roughly 300 kilometres — from the Black Thor chromite deposit to a multi-modal facility near Nakina and then loaded onto the Canadian National Railway main line for delivery to Sudbury for final processing.

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NEWS RELEASE: Ring of Fire Lake Nipigon First Nations and Matawa First Nations Leadership ready to tackle mining and infrastructure issues together

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

Thunder Bay, ON, February 4th, 2011– The Lake Nipigon First Nations and Matawa First Nations Chiefs are forming a united front when it comes to mining and infrastructure issues. The Chiefs met yesterday to initiate discussions on entering into a memorandum of understanding to work cooperatively together on common issues directly related to mineral development.

The Chiefs agreed to a framework on the issues the memorandum will undertake. Three key issues including the location of the proposed chromite processing plant, the transmission line from Nipigon to Little Jackfish and exploring economic and infrastructure opportunities, are going to form the initial content of the memorandum.

Chief Sonny Gagnon states; “The chromite will be taken from the traditional territories of the First Nations people; it only makes sense that we the First Nations people must have direct benefit from the construction and operation of the chromite processing facility. Matawa First Nations strongly stands behind the request that the processing facility be located in the Greenstone area”.

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NEWS RELEASE:Cliffs Natural Resources Releases Northern Ontario Chromite Project Information to Facilitate Stakeholder Discussions [Ring of Fire]

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

CLEVELAND, Feb. 3, 2011 /PRNewswire/ — Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today, in connection with its ongoing discussions with stakeholders, released preliminary project information for potential development of its Black Thor chromite deposit in the McFaulds Lake or Ring of Fire area of Northern Ontario.

(Logo: http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

Cliffs Chromite Project involves the largest known North American chromite deposit, located in one of the most remote areas of Ontario, the Far North. Exploration to date has consisted of geophysics and diamond drilling to delineate the Black Thor chromite zone. The current inferred mineral resource estimate indicates the Black Thor deposit contains approximately 69.5 million tonnes at a grade of about 31.9% Cr2O3.

The project information released today presents a ‘base case,’ which reflects one set of realistic options for the major inter-related components of the project – from mining of the chromite ore to ferrochrome production. These ‘base case’ project components do not necessarily represent the final design, location or scope of the project. During the course of prefeasibility, feasibility and detailed design studies, other viable options may be identified and considered.

“Cliffs is currently conducting pre-feasibility studies to more accurately determine the viability of this project,” stated Bill Boor, President, Ferroalloys. “Our work has progressed to a point that enables more detailed and meaningful stakeholder discussions that will impact our decisions about the project.”

The ‘base case’ includes the following major inter-related components:

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OMA Member Profile: Detour Gold — New Ontario Mines From Old Sites

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 Detour Gold is involved in one of the most significant projects in the province turning a former mine site into one of the largest gold mines in Canada.  Detour Gold is investing more than $1.2 billion to bring the property into production by early 2013. 

The mine is located at the end of a paved road approximately 150 kilometres east and north of Cochrane, Ontario, about 10 kilometres west of the Quebec border.  Current studies indicate the property contains mineral reserves of 11.4 million ounces of gold.  The feasibility study calls for a 16 year mine life with an average annual gold production of about 650,000 ounces.  (Detour Gold has just announced an update on its mineral reserves to 14.9 million ounces, a 31% increase.  This is expected to increase the mine life to 21 years. )

“Our team has advanced this mineral project in a responsible and efficient manner,” said Gerald Panneton, President and Chief Executive Officer of Detour Gold.  “Construction of the mining facilities started in November 2010 on this important project for the economy of Northern Ontario, providing significant employment for local and surrounding communities.” 

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Ontario’s Stagnating Economy: First Decade of 21st Century Sees Decline – by Livio Di Matteo

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario.  Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

“Ontario’s net public debt was 1.6 billion dollars in 1965 and has risen to reach an estimated 245 billion in 2010.  The debt is the sum of accumulated deficits plus interest.  Given that Ontario’s net debt was 132 billion in the year 2000, it means that nearly half of Ontario’s net debt was acquired over the last 10 years…. In 2010, Ontario’s debt-to-GDP ratio actually surpassed that of the Federal government for the first time in living memory.” (Livio Di Matteo, Jan/31/11)

I was invited to present to the Ontario Standing Committee on Finance and Economic Affairs as part of the pre-budget consultations and did so via video-conference on January 31st, 2011.  Below is the text of my address.  Please note that actual delivery may have varied from the prepared text.  Slides used for the presentation are available on my university web page.

Ontario: A Province in Decline

Good morning Mr. Chair and Committee Members of the Ontario Standing Committee on Finance & Economic Affairs.

My name is Livio Di Matteo and I am Professor of Economics at Lakehead University in Thunder Bay.

Let me being with a quick summary. Ontario’s economy was severely hit by the recent recession particularly in its resource and manufacturing sectors.

While the recession is ending and both employment and output are beginning to recover, we still need to address the long-term performance of the Ontario economy.  Even without the impact of the recession, the fact is that Ontario has been performing poorly over the last decade when compared to many of the other provinces in the Canadian federation.  Productivity and income growth has lagged.

Fiscal sustainability is having the resources necessary to provide the public goods and services that as a province we have decided we need.  When lagging productivity and income growth is combined with fiscal indicators that point to rising deficits and debt, the sustainability of Ontario’s public finances is called into question.

Poor economic growth, low productivity and lagging per capita incomes will result in a decline in Ontario’s standard of living and ultimately also result in poorer public services.

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