Republic of Mining

NEWS RELEASE : Survey shows global mining industry optimistic towards new investment while Australia recovers in global rankings

March 3, 2011

The Fraser Institute is a conservative think tank based in Canada that espouses free market principles. Its stated mandate is to advocate for freedom and competitive markets. – (Wiki). Click here for: The Fraser Institute’s Survey of Mining Companies.

March 3, 2011

TORONTO, CANADA–The worldwide economic turnaround has created optimism in the mining sector, with the global mining industry primed for new exploration and investment in 2011, according to the Survey of Mining Companies 2010/2011, released today by the Fraser Institute, Canada’s leading public policy think-tank.

More than three quarters of survey respondents said they expected to increase their exploration budgets in 2011, as detailed in the annual global survey of the world’s best places for mineral exploration and development.

The survey also shows that Australia has regained the confidence of the mining industry after taking a hard hit in the special Survey of Mining Companies: 2010 Mid-Year Update, following the Australian government’s plan to impose a heavy Resources Super Profits Tax (RSPT) on the mining industry.

“The Australian government has since announced it would back away from the proposed tax, earning a positive reaction and improved rankings from the global mining industry,” said Fred McMahon, coordinator of the survey and the Institute’s vice-president of international policy research.

Will Cliffs force Ontario to deliver a Northern industry power rate? – by Ian Ross

March 2, 2011

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca 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

Power Play

Cliffs Natural Resources is forcing the McGuinty government’s hand on the pricey issue of power in Ontario.

The Cleveland-based iron ore and coal miner has put the ball squarely in the provincial government’s court by agreeing to place a ferrochrome refinery in Ontario only if Queen’s Park comes to terms on an acceptable power rate.

A much-anticipated project description of Cliffs’ Chromite project in the James Bay Ring of Fire was released Feb. 4 naming Sudbury as the front-runner to host the ore processing.

Cliffs’ president of ferroalloy Bill Boor said, although the Sudbury suburb of Capreol is the most “technically feasible” site for the ferrochrome processing, there is no place in Ontario that makes economic sense with the price of power at its current provincial rates.

“The availability of a large, reliable and cost-competitive supply of electricity is a key consideration in locating the appropriate site of the ferrochrome production facility,” said Boor in a conference call with reporters.

Why Northern Ontario doesn’t change? – by David Robinson

March 2, 2011

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Dave Robinson is an economist with the Institute for Northern Ontario Research and Development at Laurentian University. drobinson@laurentian.ca His column was published in the March, 2011 issue.

The straw that breaks the camel’s back is always a surprise. It is always a surprise when the worm turns.

It was a surprise when a popular insurrection began in Egypt, even though we all knew that change had to come some day. It is not a surprise that Northern Development, Mines and Forestry Minister Michael Gravelle has backed away from reform in the forest sector.

It is always hard figure out when the camel’s back is going to break or when the worm will turn. A whole new science has developed to help us think about sudden changes in eco-systems and politics. The science of change isn’t very encouraging when we apply it to Northern Ontario.

Resiliency theory is a branch of “dynamic systems analysis.” It is full of simple ideas dressed up for school. There are wonderfully weird terms like “state attractors,” “catastrophe folds,” and “metastable states,” “torus destruction” and “homoclinic bifurcations”.

The Fable of the Ropes: Applied to Northern Ontario – by David Robinson

March 1, 2011

Dave Robinson is an economist with the Institute for Northern Ontario Research and Development at Laurentian University. drobinson@laurentian.ca His column was published in the February, 2011 issue.

Once upon a time there was a vast, resource-rich region – kind of like Northern Ontario. It was stuck in an old-fashioned development trap. You know, producing raw materials for other regions, with all the decisions being made outside the region, and almost all the revenue from selling off resources going outside the region.

One man was officially in charge of pulling the region out of that development swamp. He was in charge of all the forests and all the minerals. The Grand Minister of Mines and Forests struggled heroically to get the region moving. But nothing happened.

Unfortunately, the Grand Minister was relying on an outdated model of development. He was pinning his hopes on the Ring of Fire and on doing what the forestry companies want. After flirting with change, he backed away from increasing community control and putting wood in the hands of small local producers. It looked like he’d been hog-tied by the big companies.

[Ring of Fire] Chromite discovery sparks excitement – by Norm Tollinsky (June, 2009)

March 1, 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 June, 2009 issue.

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

“This greenstone belt, this Ring of Fire crescent, is about the same land area of the Abitibi
Greenstone Belt, which includes Timmins, Kirkland Lake, Noranda and Val d’Or. It comprises a substantial part of the mining wealth of Canada, and we have a sister to it.”
(Frank Smeenk, President, KWG Resources – June, 2009)

A massive chromite deposit in the James Bay Lowlands will extend the development frontier of Ontario from Timmins to the Attawapiskat River and result in billions of dollars of spending on new mines, processing facilities and infrastructure, according to senior executives of several junior mining companies.

The deposit, touted as one of the largest discoveries of chromite in the world and the only one in North America, has already attracted the attention of one major mining company and others may follow.

Cliffs Natural Resources, the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump and fines iron ore out of Australia and a significant producer of metallurgical coal, has invested U.S. $3.5 million in a private placement for 19.9 per cent of KWG Resources Inc., one of five junior mining companies with property along the 12 to 14-kilometre strike length of the deposit.

Hydro rates killing jobs – by Wayne Snider, The Daily Press (February 28, 2011)

March 1, 2011

Wayne Snider is the city editor for The Daily Press, the city of Timmins newspaper. Contact the writer at news@thedailypress.ca.

“An independent Northern Ontario electricity authority would allow us to create
jobs in Northern Ontario, contribute to the economy of the North and at the end
of the day, it would be good for all of Ontario.” (Former NDP leader Howard Hampton)

OPINION: Northern municipal leaders seek provincial solution to industrial sized problem

Northern Ontario municipal representatives will deliver their wish list to the leaders of the three mainstream political parties this week during the Ontario Good Roads Convention.

It would be shocking if hydro rates were not on that list, given the fact that rising costs of the utility have played a major role in gutting industry across the North.

Hydro costs were one of the key contributors leading Xstrata Copper to close its smelting operations at the Kidd Creek Metallurgical Site. Instead, ore concentrate is now shipped to Quebec, where electricity is much cheaper. (With the move, the province also lost one of its largest customers in terms of power sales.)

Saw and paper mills have also been hit hard by soaring hydro costs. In Iroquois Falls, there is an atmosphere of dread created by the pending sale of AbitibiBowater’s hydro electric dams. The fear being that once the cheap source of power dries up, the company will walk away from the community.

One of the major players in the Ring of Fire project, Cliffs Natural Resources Inc., has publicly stated that hydro costs in Ontario are too prohibitive to make processing of the ore in-province attractive.

Cliffs would save millions locating [Ring of Fire] chromite plant in Manitoba or Quebec: Hampton – Sudbury Star Staff

February 28, 2011February 28, 2011

The Sudbury Star, the City of Greater Sudbury’s daily newspaper. This column was published on February 23, 2011.

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

Cliffs Resources would save tens of millions in energy costs each year by opening its proposed chromite smelter in either Manitoba or Quebec, a Northern Ontario NDP MPP told the Ontario legislature Tuesday.

Howard Hampton, NDP MPP Kenora-Rainy River and former NDP leader, said that according to the Manitoba Hydro website, a company like Cliffs Resources would pay a monthly hydro bill of about $5.3 million a month (or $63 million a year) if it located the smelter in Ontario.

The same refinery located in Manitoba would pay a hydro bill of $ $2.1 million a month (or $26 million a year). The Quebec figures are $2.8 million a month, or $33.5 million a year, Hampton said.

“The real travesty in all of this is the fact that in Northern Ontario, we generate some of the cleanest and greenest electricity (mostly from falling water) at some of the lowest costs on the planet, yet we are not allowed to use that electricity at an affordable price to create jobs in Northern Ontario because of the McGuinty Liberals ‘made in Toronto for Toronto’ electricity policy,” Hampton said in a release.

Understanding Aboriginal Treaties Key for Ring of Fire Projects – Thunder Bay Chronicle-Journal Editorial (February 25, 2011)

March 15, 2011February 28, 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

NISHNAWBE Aski Nation (NAN) is to be commended for initiating a forum to explain the treaties that govern its people in relation to the rest of Northwestern Ontario. Generalized references to treaty rights have marked every disagreement over land and resources, but outside of band offices, a few academics and relevant government departments, most people don’t understand what was agreed to up to a century ago and more.

The passage of so much time has resulted in many interpretations about what treaties say and what was meant by those who signed them. In seeking to create “an understanding of the treaty relationship between First Nations and the greater society of Canada,” NAN Grand Chief Stan Beardy is conducting an important exercise.

Beardy offers the view that Treaties 5 and 9, governing NAN territory, are based on “peaceful co-existence.” Even a brief parsing of the federal government’s description of these treaties shows they were hard to come by. That being said, they are the law of the land for Indians and understanding them is more important than ever.

NEWS RELEASE: Canada becomes the destination of choice for mining transactions: Ernst & Young

March 6, 2011February 24, 2011

Please click here to view the executive summary of the report: Ungeared for Growth

Deal activity to ramp up in 2011, while companies roll the dice on frontier markets

(Vancouver – 23 February, 2010) Canada’s mining and metals sector is set to heat up in 2011 with increased deal activity, more diverse buyer competition and a continued appetite for projects in frontier markets, according to Ernst & Young.

“Canadian M&A activity has made an incredible rebound with companies reaping the rewards of reinvigorated balance sheets and flushed with cash from high commodity prices – particularly gold and copper,” said Tom Whelan, Leader of Ernst & Young’s national Mining practice. “In 2010, a third of all global gold deals took place in Canada, with over half of all deals conducted by Canadian companies. The largest of these was Kinross Gold’s acquisition of Red Back Mining, valued at US$7.4 billion.”

Ernst & Young’s annual mining and metals transactions report, Ungeared for growth, finds that Canada emerged from 2010 as the preferred destination for transaction activity in the sector globally, ahead of the US, Australia and Brazil. Canada was also the most active acquirer last year, ahead of both Australia and China, and up from fourth place in 2009.

[Ring of Fire Refinery] “We generate some of the cleanest and greenest electricity…” Howard Hampton NDP MPP

February 23, 2011

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 January 28, 201. newsroom@netnewsledger.com

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

“Four and a half years ago, what was then Inco closed their copper refinery in Sudbury.
Today, they still take the ore out of the ground in Sudbury, but they ship it to Quebec
to smelt it there at half the cost. That’s exactly what is happening with Cliffs Natural
Resources. If they move to Manitoba or Quebec, they’ll pay half the cost of refining
the metal. There’s a real problem, a real issue, with hydro rates in Ontario.” (Howard
Hampton NDP MPP for Kenora-Rainy River)

Queen’s Park – NDP MP Howard Hampton was up in Queen’s Park on Tuesday. During a Member’s Statement, Hampton gave some examples of just how, in his words, “out of touch” the McGuinty Liberals are on hydro-electricity rates compared to Manitoba and Quebec. Hampton cited the decision by Xstrata Mining to close its copper smelter in Timmins last year and the decision by Inco (now Vale) to close its copper smelter in Sudbury four years ago.

“Both of these companies continue to mine the copper ore in Ontario, but both of them now ship the ore to smelters and refineries in Quebec to have the ore processed there because they save millions of dollars each year in hydro-electricity costs due to Quebec’s much lower industrial hydro rates,” Hampton said.

Hampton noted that Xstrata was paying hydro bills of $70 Million/year at its Timmins smelter, and now is paying less than half that amount in Quebec ($33.5), but the shutdown of the smelter in Timmins meant the loss of over 2000 direct and indirect jobs in the community.

The mining giant’s golden boy [Barrick’s Aaron Regent] – by Lisa Wright

February 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 February 18, 2011.

Chalk it up to the luck of the Irish but Aaron Regent has already marked a number of golden milestones this year, both personal and professional.

For starters, he just passed the two-year mark as chief executive of the world’s largest bullion producer, Barrick Gold Corp., amid a red-hot gold market.

He also turned 45 last month. And recently it was revealed the Dublin-born, Calgary-bred executive is the top-paid CEO in Canada, raking in $24.2 million in 2009.

True to form, Regent remains low-key about it all. “It’s been a busy two years for us,” he says, with an accent that hints of both old country and new.

Viola [MacMillan] and the Toronto Stock Exchange – by Cameron Darby (Saturday Night Magazine- May 1967)

February 23, 2011

I suppose there are lots of peoples who would have relished the scene one morning last month, when Viola MacMillan went through the same routine that every junkie, impaired driver or pederast goes through when he’s booked into Toronto’s smelly old Don Jail. Viola is a mining promoter, one of the greatest, a wiry little 62-year-old who’s made millions on the market – and there she was in a blue prison smock, getting searched by a big matron and fingerprinted by a very solicitous cop.

Viola had just been convicted of a practice that is almost as common, but just as illegal in Canada, as contraception: wash trading. If you own lots of stock in a company, you can simply buy and sell large blocs back and forth to yourself through nominee accounts that you’ve established with your obliging broker. All these non-transactions register on tape, the stock goes up and the suckers start buying. Then, when you’ve run your stack up to a suitably larcenous level, you sell. End of market.

This, it’s alleged, was what Viola did with a stock called Consolidated Golden Arrow during the Texas Gulf Sulphur madness in 1964. In two hours one morning, she ran the stock from 25 to 65 cents, then pulled out and took her profit. But for Viola and her promoter husband George, Golden Arrow was only a sort of appetizer.

Sudbury-based Crossworks Manufacturing is the largest cutting and polishing manufacturer in North America – by Adelle Larmour

February 23, 2011

Sudbury diamond polisher sparkles

Would you believe that one of the largest diamond cutting and polishing facilities in North America is in Sudbury? While consumers view the stunning array of diamonds in the jewelry display cases, Crossworks Manufacturing Ltd., a cutting and polishing manufacturer headquartered in Vancouver, is busy working behind the scenes.

This unassuming, low-profile Sudbury facility prefers to fly under the radar because of the nature of its business and the millions of dollars of product with which it deals. Thirty of its 32 employees in Sudbury came from Vietnam and have a minimum of 10 years experience, further emphasizing the value of the product and the importance of accuracy.

Crossworks’ two Canadian cutting and polishing factories survived the global financial crisis that left other diamond manufacturers bankrupt. It now has the only cutting and polishing game in the country.

[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.