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Chile Mine Rescue Teaches Us That Modern Civilization Built on Mining — John R. Hunt (On the Rocks)

I spent most of one night and the next day watching the rescue of the Chilean miners. Like most people I am delighted, and a little surprised, that the rescue was successful. The news they are likely to make a very healthy buck out of their adventure is also pleasing.

I thought the commentators missed one point when they were pontificating about mining and miners. If it were not for the metal ore miners dig up, modern civilization could not exist. This is not an exaggeration. Just walk around your home and consider all the things made out of metal, or held together with metal.

Plastics have replaced some metal but I even your computer has some vital bits of gold and other precious metals performing tasks I do not understand and cannot spell. That awful tangle of wires that connect your computer, printer, scanner and also connect to the power source are most likely made of copper, possibly from the same mine the 33 Chileans were trapped in.

Mining is dangerous, even if safety regulations have made mining a lot safer in Canada than in many other countries. Even as this is written there is news of miners trapped beneath the surface in Ecuador and a much bigger and nastier accident in China.

According to many reports the Chinese mines kill more than 2,000 miners a year. There are not only many big operations which can be supervised but also many illegal small mines where anything goes.

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Leaked PDAC Sponsored Corporate Social Responsibility Report Flawed by – Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

 If words such as “suppressed report” and “international violations by Canadian mining companies” were not written to be inflammatory, I miss my guess. Such was the headline above a report leaked by MiningWatch to the Montreal Gazette, Toronto Star and various news outlets. MiningWatch’s release also made hay out of the fact that the report was commissioned by the Prospectors and Developers Association of Canada. The implication is that the mining industry is trying to hide its bad behaviour from the public.

In fairness, I called the PDAC and learned that the leaked document was a first draft and the final draft was not identical. I was also told that the association wanted a benchmark survey and was disappointed with the quality of the study.

So I looked over the 16 pages of “Corporate Social Responsibility: Movements and Footprints of Canadian Mining and Exploration Firms in the Developing World.” It was prepared by the Canadian Centre for the Study of Resource Conflict, that has no dated material more recent than 2006 on its website. I did learn that the CCSRC is associated with Royal Roads University.

I turned past the title page. It seems 75% of the world’s mining companies are Canadian, and 33% of all violations are attributed to Canadian miners. Followed by India, Australia, the United States and the United Kingdom, companies from these five countries are responsible for 63% of all corporate social responsibility violations.

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STATEMENT BY PROSPECTORS AND DEVELOPERS ASSOCIATION OF CANADA REGARDING MEDIA REPORTS ON THE CANADIAN EXPLORATION AND MINING INDUSTRY

The Prospectors and Developers Association of Canada (PDAC) is a national association representing the mineral exploration and development industry. Its 7,000 individual and corporate members are involved in the exploration, discovery and development of new mines and new wealth. The PDAC’s annual convention is the world’s largest annual gathering of the mineral industry.

TORONTO, Canada (October 19, 2010) – The Prospectors and Developers Association of Canada (PDAC) today issued the following statement regarding media reports on the Canadian exploration and mining industry:

“In August 2009 the Prospectors and Developers Association of Canada (PDAC) commissioned the Canadian Centre for the Study of Resource Conflict to conduct an internal study on the public’s perception of the Canadian exploration and mining industry’s corporate social responsibility (CSR) record. The study was for internal industry deliberation to inform its ongoing thinking on CSR.

The study deals with unproven allegations, not proven violations.

The internal study suggests that Canadian exploration and mining companies are alleged to be involved in approximately 5 “incidents” per year, over the course of the study’s 10-year timeframe. This is consistent with the data collected and published by the Compliance Advisor Ombudsman of the World Bank’s International Finance Corporation.

To provide some perspective: Canada has 1,800 exploration and mining companies operating 10,000 projects in over 100 countries at any one time. Given this and the fact that Canada is the headquarters of more than 75 per cent of the world’s mining and exploration companies, the PDAC found the results encouraging but with room for improvement.

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Canadian Mining Firms Worst for Environment, Rights: Report – by Toronto Star Reporter Les Whittington

Les Whittington is with the Ottawa Bureau of 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 October 19, 2010.

OTTAWA—Canadian mining companies are far and away the worst offenders in environmental, human rights and other abuses around the world, according to a global study commissioned by an industry association but never made public.

“Canadian companies have been the most significant group involved in unfortunate incidents in the developing world,” the report obtained by the Toronto Star concludes.

“Canadian companies have played a much more major role than their peers from Australia, the United Kingdom and the United States” in these incidents, says the Canadian Centre for the Study of Resource Conflict, an independent, non-profit think tank.

The problems involving Canada’s mining and exploration corporations go far beyond workplace issues. “Canadian companies are more likely to be engaged in community conflict, environmental and unethical behaviour, and are less likely to be involved in incidents related to occupational concerns.”

The research surfaced as a long, fierce political battle over legislation to tighten federal government scrutiny of Canadian mining operations abroad comes to a head. Bill C-300, a private member’s bill put forward by Toronto Liberal MP John McKay, will be voted on in the Commons next week.

The proportion of incidents globally that involve Canadian corporations is very large, according to the report. “Of the 171 companies identified in incidents involving mining and exploration companies over the past 10 years, 34 per cent are Canadian,” the Centre found.

It said the high incidence of involvement of Canadian companies is in line with the Canadian industry’s dominant position in global mining and exploration.

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John Pollesel, Vale Canada COO and Director for Base Metal Operations North Atlantic, Speech to Sudbury Chamber of Commerce – October 13, 2010 – Sudbury, Ontario

John Pollesel, Vale Canada COO and Director for Base Metals North Atlantic

John Pollesel is the Director for Base Metal Operations North Atlantic and Chief Operating Officer for Vale Canada, reporting to Tito Martins, Executive Director Base Metals and Vale Canada Chief Executive Officer.

John Pollsel has extensive management experience, specializing in the mining industry where he has been employed for more than 20 years. He joined Vale in August of 2008 in the capacity of VP Sustainability and Business Services for the Ontario Operations and in July of 2009 was promoted to the role of VP Production Services and Support for the Canada/UK region and General Manager for Ontario Operations.

Mr. Pollesel is a Fellow of the Society of Management Accountants of Ontario and a Certified Management Accountant. He graduated from Laurentian University with a Masters degree in Business Administration and holds an Honors BA in Accounting from the University of Waterloo.

Our objective is to create a sustainable, profitable and long-term operation in Sudbury – contributing further decades of employment, economic growth and community support. There is an important caveat, however. We must demonstrate our willingness and ability to become a more productive and efficient operation. Aspiring to the status quo is simply no longer an option. – John Pollesel, Sudbury, Ont.

CHECK AGAINST DELIVERY

Thank you, and good evening everyone. It’s a pleasure to have been invited to speak to you at your Chamber’s Annual General Meeting.

Vale is a proud member of the Chamber of Commerce and we’ve been active on the Chamber’s Board for many years. In fact, personally I was proud to have sat as a Board member a few years back.

Vale and the Chamber have enjoyed a very long and productive relationship together…the Chamber has been there for us during some tough times, and we’ve been there for the Chamber as an active partner on a number of fronts. It’s a beneficial and productive partnership that we look forward to continuing.

I want to especially recognize Debbi Nicholson, who has been an exemplary leader of the Chamber for more than 30 years.

Debbi – you lead with dignity, good business sense and a keen awareness of what is best for our community. I congratulate you and your team on all the things you’ve accomplished throughout your long tenure with the Greater Sudbury Chamber.

* * * * *

Tonight, I am here to speak to you about Vale and our future in the Sudbury Basin.

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Ontario Significantly Declines in Global Mine Rankings – 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 was published in the October, 2010 issue.

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

Uncertainty in regulations and land tenure worries miners

Ontario may promote itself as being among the best mining jurisdictions in the world, but some industry executives polled in a Fraser Institute survey are second-guessing that blanket statement. A special mid-year report penned by researchers Fred McMahon and Miguel Cervantes raises some red flag issues for investment.

Confidence in Ontario continues to sag due to respondents’ concerns over government policy, dealings with First Nations, and uncertainty over whether a big chunk of Ontario’s untapped mineral resource will be set aside for protection.

“Mining is a long-term endeavor,” said Fred McMahon, vice-president of the Vancouver-based international public policy think tank. “That kind of instability is very damaging.”

Some mining companies accused the McGuinty government of trying to
“kill Ontario” and hinted that antimining environmental activist groups
have considerable weight in shaping public policy.

As commodity prices improve, Mc-Mahon said governments, unions and non-government organizations are finding mining an easy target to tear up existing agreements, drive up costs, and introduce “predatory taxes” that cause instability in investment.

McMahon said these dramatic changes in recent months prompted the Fraser Institute to release its firstever mid-year report card in August.

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Prospectors Oppose Far North Act (Bill 191) – More Northern Consultation Needed – by Frank P. Tagliamonte

Frank P. Tagliamonte is a North Bay-based geologist and prospector.

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

The McGuinty government has recently passed legislation, the Far North Act – Bill 191, that will be detrimental for all the citizens of Ontario, especially the North.

Briefly , this act has been initiated and promoted by an environmental lobby group and embraced by the McGuinty government without meaningful consultation with First Nations and the citizens of Ontario, particularly Northerners. It has been rejected by most mayors of Northern Ontario communities and when its impact is fully understood , will likely be opposed by cities and towns in the South as well.

This Act will prohibit all natural resource development, mining, timbering and hydro projects,  in a vast land mass comprising some 250,000 acres in Northern Ontario – not Southern Ontario.

Can Ontario realistically abandon potentially rich and vast resource areas that will provide employment, especially for First Nation communities, mineral riches and abundant tax revenues to a deeply indebted Province?

This land mass overlies the mineral-rich Canadian Shield with the potential to host world-class mining camps such as Timmins, Kirkland Lake, Sudbury and Red Lake.

Already a diamond mine is in production, producing world-quality diamonds within the soon to be “off-limits area.” Rich deposits of chromite, copper and nickel have recently been discovered in a small part of this vast area known as the Ring of Fire – one of the most important new mining camps in Canada. There is enormous potential for many more discoveries in the years ahead.

Can Ontario realistically abandon potentially rich and vast resource areas that will provide employment, especially for First Nation communities, mineral riches and abundant tax revenues to a deeply indebted Province? 

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[Ontario Far North Act] Canada’s Worst Government – by Terence Corcoran (National Post-October 16, 2009)

 Terence Corcoran is the Financial Post editor, the business sector of the  National Post, Canada’s second largest national paper. This article was originally published on October 16, 2009.

Every now and then a province falls into the hands of blundering politicians so inept that their government ends up deserving of the title “Canada’s Worst Government.” It’s a rare award.  At any time somebody has to be the worst, but no award for routine bottom-of-the-barrel performance seems necessary.  Occasionally, however, the metric of incompetence is so large and conspicuous it demands special recognition.  The Liberal regime of Ontario Premier Dalton McGuinty, now slipping into deep deficits that are likely to exceed $30-billion over two years and continue into the future, has hit the tipping point and triggered its candidacy as Canada’s Worst Government.

The new deficit outlook, announced yesterday and to be documented in a fiscal statement next week, comes in the wake of Ontario’s $1-billion eHealth fiasco. That followed the province’s Green Energy Act, a plan to force electricity users to pay 80 cents for a kilowatt hour of solar power and subsidize scores of industrial rent seekers. The province is also a leading promoter of endless nanny state rules and regulations that serve no purpose except to give the premier an opportunity to issue a statement and deliver one of his patented sanctimonious speeches.

Far North Act

 Below the radar of media attention, there is more. This is about one of those so-far unrecognized bits of McGuinty Liberal bungling. Next week, the Ontario legislature will begin taking another look at two monster pieces of legislation allegedly aimed at bringing new order to the province’s shambling mining legislation. First is Bill 173, the Mining Amendment Act, which among other things is an attempt to bring Aboriginal communities into the administration of the province’s scatter-brained mining laws. Second is Bill 191, the Far North Act. It also attempts to bring Aboriginal participaton into decision-making over resource development of Ontario’s far north. What these two bills actually do, however, is trample on everybody’s property rights, from First Nation rights to the rights of cottage owners caught in the murky legislation that sets out mineral rights across the province.

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Prospectors and Developers Association of Canada (PDAC) News Release – PDAC Supports NAN’s Campaign Against Ontario Bill 191 – September 15, 2010

Toronto, Ontario, September 15, 2010 – The Prospectors and Developers Association of Canada (PDAC) is supporting Nishnawbe Aski Nation’s (NAN) opposition to Bill 191, the Far North Act.

Bill 191 would give legal effect to the Ontario government’s plans for the northern boreal region. Without adequate consultation or consideration of the implications for First Nations communities, the mineral industry or northern municipalities, the provincial government proposes to permanently remove more than 50% of the Far North boreal region of Ontario from the possibility of sustainable economic development through the creation of an interconnected network of protected areas.

The negative implications of Bill 191 will be felt by First Nations communities that make up 90% of the population of the Far North and will deprive First Nations of the benefits that responsible mineral resource development can provide.

NAN has expressed the need for First Nations to have meaningful participation in land use decisions in the Far North, which Bill 191 does not provide, and has asked the McGuinty government to scrap the legislation altogether.

The PDAC agrees that Bill 191 should be stopped and hopes that the Ontario government will recognize the serious flaws with the legislation.

“Mineral exploration and development serves an important role in creating opportunity for northern Ontario’s First Nations and municipalities,” said Scott Jobin-Bevans, PDAC President, “The PDAC is encouraging its members to sign the Nishnawbe Aski Nation petition.”

The NAN petition is available at http://www.nan.on.ca.

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Assembly of First Nations News Release – AFN Supports Nishnawbe Aski Nation’s Call to Withdraw Ontario’s Far North Act – September 10, 2010

OTTAWA, Sept. 10 /CNW/ – Assembly of First Nations National Chief Shawn A-in-chut Atleo and Ontario Regional Chief Angus Toulouse today confirmed their support for Nishnawbe Aski Nation (NAN) Chiefs in their call to the Ontario government to withdraw the Far North Act (Bill 191).

“Consistent with our rights, the treaties and the United Nations Declaration on the rights of Indigenous Peoples, First Nations must be fully and meaningfully engaged in all aspects relating to development in our territories,” said AFN National Chief Shawn Atleo. “The Ontario government’s approach to the proposed Far North Act is inconsistent with First Nation rights and the treaties and furthermore does not adequately fulfill the government’s duty to consult.  Especially in regions like Northern Ontario where First Nations peoples make up 90 per cent of the population, it is absolutely essential that we get this right.  The path forward must be one of full respect and engagement.”

Bill 191 proposes to protect about 225,000 square kilometers of Boreal Forest and was developed without input from the more than 24,000 First Nations peoples who inhabit over 30 First Nation communities in the area. 

The implications of Bill 191 will go beyond the proposed protected area and will directly impact the Aboriginal and treaty rights of all 49 NAN First Nation communities, signatories to Treaty No. 9 and Treaty No. 5 and First Nations across the country.

“In a time when the Ontario government is working toward a ‘new relationship’ with First Nations in the province, we should be working together to protect the environment and balancing sustainable economic development opportunities,” said AFN Ontario Regional Chief Angus Toulouse.  “Instead, Ontario has unilaterally introduced this legislation which would leave control over land-use planning to the government even when many First Nation communities within Treaty No. 9 and Treaty No. 5 have developed their own land-use plans and have repeatedly expressed the need to be involved in the process.”

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Ontario Mining Association (OMA) – August 2009 Submission to the Ontario Government on the Far North Act (Bill 191) and the Mining Act (Bill 173)

The Ontario Mining Association (OMA), is an organization that was established in 1920 to represent the mining industry of the province.

Please note that the order of this document has been slightly changed. The Bill 191, the Far North Act material has been placed at the beginning of the posting for the reader’s convenience. – Stan Sudol

Bill 191, the Far North Act

1. Clarifying the Ambiguity and Imbalance

Once again, we are appreciative of the government’s efforts to foster a multi-stakeholder dialogue and build consensus through the Far North Advisory Council. We also agree with the goal “to strike the right balance between conservation and development”, which was set out in the Premier’s July 14, 2008 announcement.

However, Bill 191 presents many challenges for our members, which if not rectified, will cause unprecedented delay, unnecessary conflicts and diminishing economic benefits for the province and communities of the Far North. The nature of the mining industry is one that requires long-term certainty and clarity – given the long planning cycles of our industry, as well as the significant capital expenditures and detailed permitting process required for the development of a mine. Additionally, mineral exploration is a highly risky undertaking; only 1 in 10,000 prospects becomes a mine. 

Industry would appreciate greater balance between industry, community and conservation components in various aspects of Bill 191 so that the Bill achieves the desired goal of economic development and conservation. Without this balance, Bill 191 may be seen as an impediment to future investment and development in Ontario’s Far North for mineral exploration and mine development, forcing companies to look elsewhere for mineral development projects. 

While the proposed legislation is a start in putting a process in place to ensure partnership building between government and Aboriginal peoples, it has not provided a specific role for other stakeholders, such as the mineral industry. Given the importance of  mineral development to the economic development and prosperity of the Far North and its people, it is critical that the mineral industry have a seat at the table.

The OMA supports active participation of Aboriginal peoples in the mineral industry and understanding and co-operation between the industry and Aboriginal communities where mineral development and extraction occur. The members of the OMA have collectively more than 50 agreements with the First Nations.

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NDP News Release – NDP stands with First Nations, votes against [Far North Act] Bill 191 – September 23, 2010

QUEEN’S PARK – The McGuinty Liberals’ decision to ram the Far North Act through the Legislature today is a big step backwards for relations between First Nations and the provincial government, say NDP Leader Andrea Horwath and NDP Aboriginal Affairs Critic Gilles Bisson. “The Premier went back on his pledge to First Nations leaders that …

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Ontario Prospectors Association of Ontario News Release – ONTARIO PROSPECTORS DISAPPOINTED BILL 191 PASSES THIRD READING – September 30, 2010

The objectives of the Ontario Prospectors Association are to represent and further the interests of the mineral exploration industry and the interests of prospectors. Our mission is to enhance and promote the Ontario mineral exploration and development community to foster a healthy mining industry.

FOR IMMEDIATE RELEASE: The Board of Directors of the Ontario Prospectors Association (OPA) regrets that Bill 191, the Far North Act, was passed after the third reading by the Ontario Legislature.

The OPA believes the present form of the Far North Act will cripple exploration and related economic development in Ontario’s Boreal Forest lands, an area recently demonstrated once again to hold vast mineral deposits within the “Ring of Fire” chromite (stainless steel) and copper, nickel and platinum group element (automobile pollution control) discoveries. While the timing of the discovery and onset of development of the Ring of Fire has fortunately preceded royal proclamation of the Far North Act, future capital investment will not freely flow into the legal limbo created by Far North Act in its current form.

The OPA applauds the Far North Act’s recognition and support for Community-based Land Use Planning amongst the region’s First Nation communities. However, advance selection of a 50% (225,000sq km) protection target under the Far North Act’s proposed grid of “interconnected” waterway parks and protected spaces will ensure a 100% loss of potential for future discoveries and related economic development in this vast area of high mineral potential.

Exploration and mining in Ontario’s north have historically been mainstays of the economies of both northern and southern Ontario. The Far North Act in its present form represents a potential loss of economic opportunity.

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WWF News Release – World Wildlife Fund Supports Ontario’s Amended Far North Act (Bill 191) September 15, 2010

Gerald is President and CEO of WWF-Canada, the country’s largest environmental organization. Prior to joining WWF, Gerald was Principal Secretary to Ontario Premier Dalton McGuinty where he worked directly with the Premier, Cabinet and Public Service to develop, implement and communicate the government’s agenda. He was intimately involved in all of the government’s significant environmental initiatives, from the Greenbelt and Boreal Conservation plan to the coal phase-out and toxic reduction strategy.

WWF-Canada hopes the Ontario Legislature will pass amended Far North Act Today WWF-Canada indicated that it hopes the Ontario Legislature will soon pass an amended Act with respect to land use planning and protection in the Far North.

The legislation was introduced in June 2009 to implement a vision announced by Premier McGuinty a year earlier for the boreal region occupying 42 per cent of the province. The Premier’s vision involves protecting at least half of the area, while encouraging new economic development. Both objectives are to be accomplished through community land use plans led by First Nations.

“We felt the conservation objectives were secure in the proposed legislation, but it needed to be improved to recognize greater control of the planning process by First Nations,” said Monte Hummel, President Emeritus of WWF-Canada. “Therefore, we have strongly supported First Nations concerns, through our testimony before the Standing Committee, through many meetings with both government and First Nations leaders, and through our recommendations for specific changes to the Act.”

The 49 pages of amendments introduced this week by Linda Jeffrey, Minister of Natural Resources, will go a long way to ensuring that First Nations have an equal say in planning. Of particular importance is the introduction in Section 6 of a joint planning body with equal representation from the Province and First Nations to oversee the planning process, to advise on funding, and to determine a dispute resolution mechanism. Such a joint body was recommended by the Far North Advisory Council in their March, 2009 report, including representatives from the mining, prospecting, water power and forest industries, as well as environmental groups. In addition, WWF emphasized the importance of $16 million in new provincial funding to flow directly to First Nations engaged in land use planning.

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Tim Hudak’s Bad Idea – Toronto Star August 16, 2010 Editorial Comment on PC Leader Tim Hudak’s Promise to Repeal Far North Act

The Toronto Star 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 editorial was originally published on August 16, 2010. Toronto Star Editorial: Trolling for votes in northern Ontario last week, provincial Conservative Leader Tim Hudak promised to repeal the Far …

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