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Manitoba Government News Release – PREMIER VOWS FIGHT TO PROTECT JOBS IN THOMPSON [Manitoba]

November 17, 2010

Vale’s Proposed Shutdown of Smelter, Refinery Operations Completely Unacceptable: Selinger

Premier Greg Selinger today called on the owners of Vale’s Thompson operations to work with the Province of Manitoba, the City of Thompson and the United Steelworkers union to immediately seek alternative solutions to closing the smelter and refinery in Thompson by 2015.
 
“This decision comes without due notice or proper consultation with our government and the City of Thompson,” said Selinger.  “Vale’s intended course of action is unacceptable and our government stands firmly with the people of Thompson in saying this job loss will have a significant impact on the community and the province.”
 
The proposed shutdown of the Thompson smelter and refinery would result in a loss of about 500 jobs or 40 per cent of the current Vale Thompson workforce.
 
“We have a long and very successful history of supporting the mining industry through initiatives such as training, taxes and geoscience,” said Innovation, Energy and Mining Minister Dave Chomiak. 

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Brazilian Miner Vale Plans to Eliminate 500 Jobs in Thompson, Manitoba by 2015 — A Third of its Local Workforce – by John Barker

Vale's Thompson, Manitoba Operations - Photo by Jeanette Kimball

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.

Thompson NDP MLA Steve Ashton denounces Vale’s ‘arrogance’ in blistering words

November 17, 2010 – BY JOHN BARKER
EDITOR@THOMPSONCITIZEN.NET

Brazilian mining giant Vale said today it plans to phase out its smelting and refinery operations at Manitoba Operations by 2015, eliminating 500 jobs or a third of its local workforce, and focus on “developing new sources of ore as it transitions its operations to mining and milling….”

Vale dropped Inco from its name May 27 and its global nickel business is simply known now as Vale. It had operated around the world as Vale Inco since Companhia Vale do Rio Doce (CVRD) re-branded itself less than three years ago on Nov. 29, 2007. “Vale” is pronounced (vah-lay) and literally means “valley” in Portuguese.

In a blistering “MLA Report” weekly column filed today at noon that will appear in print in Friday’s Nickel Belt News, Steve Ashton, Thompson NDP MLA and minister of infrastructure and transportation, as well as the minister responsible for emergency measures and the minister charged with the administration of the Manitoba Lotteries Corporation Act, says “Vale’s announcement that they are eliminating the surface operation here in Thompson is unacceptable.”

Ashton is the longest serving MLA in the Manitoba legislature, first elected 29 years ago today in the Nov. 17, 1981 provincial election. He is second in order of cabinet precedence to Premier Greg Selinger.

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Vale News Release – VALE OUTLINES INVESTMENT PLANS FOR CANADIAN OPERATIONS

In Excess of $10B Over Five Years

For immediate release

November 17, 2010 — Vale today revealed its blueprint for the future in Canada anchored by a planned five year investment program in excess of $10 billion to strengthen and expand its Canadian operations.

“The investment program we’re pursuing is an indicator of the bright future we see for Vale in Canada,” said
Tito Martins, Chief Executive Officer of Vale Canada and Executive Director, Base Metals for Vale. “These
investments represent an important building block for the future of our Canadian operations. The dollars
invested here will improve environmental performance, unlock new market opportunities, increase efficiencies and strengthen our global competitiveness for years to come.”

Large-scale investments have already commenced and will continue to ramp-up in 2011, said Mr. Martins,
noting that in addition to the direct benefits accrued to Vale’s operations, the projects promise to generate
significant economic opportunities for communities and suppliers over the next five years.

The five-year investment program combines recently started projects with projects yet to begin. It follows a
comprehensive review of Vale’s Canadian operations that addressed issues of efficiencies, aging
infrastructure, environmental performance and creating a long-term sustainable future. Key components of the investment program include:

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Foreign Takeovers [in Canada] Should Hinge on Reciprocity – by Roger Martin (Toronto Star-November 16, 2010)

The Toronto Star is the largest circulation broadsheet in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion. This column was originally published November 16, 2010.

“But it is not reciprocity to allow Vale to buy Inco. The Brazilian government has the absolute right to stop any takeover of Vale. Reciprocity would mean that if Vale has the right to buy Inco, then Inco would have the right to buy Vale. Similarly, it is not reciprocity to allow BHP to buy Potash. As part of the BHP-Billiton merger, the Australian government imposed draconian restrictions on BHP, meaning that BHP can go hunting internationally but it can never be hunted.” – Roger Martin, November/2010

Roger Martin is dean of the Joseph L. Rotman School of Management at the University of Toronto and chairman of the Institute for Competitiveness & Prosperity.

Sadly, the federal government’s decision to block the purchase of Potash Corporation by BHP Billiton Ltd. is likely to hurt the future competitiveness of Canadian companies.

This does not imply that Canada has no right or cause to challenge foreign takeovers of Canadian companies. Far from it. The problem is with the “net benefit” theory and rationale used by our government to block the takeover.

This approach to foreign direct investment is in stark contrast to the approach to merchandise trade, the traditional focus of trade policy, where the theory is reciprocity: you let us send you our BlackBerrys without tariffs or restrictions and we will let in your GE MRI machines.

We need to move policy from net benefit to reciprocity as the defining criterion.

If net benefit was used in merchandise trade, there would never be a lowering of trade barriers because every single industry or company that is adversely affected would wrap itself in the protective flag of net benefit.

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Vale Contributes $525,000 to National Aboriginal Achievement Foundation for Launch of Innovative Mining Education Module

John Pollesel, COO Vale Canada and Director for Base Metals Operations, North Atlantic Region; Roberta Jamieson, President and CEO (NAAF)

November 12, 2010 – Sudbury — The National Aboriginal Achievement Foundation (NAAF), in partnership with Vale, launched a mining education curriculum module designed to inspire Aboriginal students to pursue careers in the mining industry. The launch event took place today at the N’Swakamok Native Alternative School at the Sudbury Friendship Centre.

As part of the launch, Vale announced a $525,000 contribution to NAAF to support the ongoing evolution of the program. The funds will support the research, development, design, DVD production and initial distribution of the module.

The innovative curriculum includes informative, relevant material that is being made accessible to high school teachers seeking to inspire students about possible career options in the mining sector.

“The Foundation’s partnership with Vale is invaluable. Together we are providing Aboriginal high school students with a unique opportunity to see what their future could be if they decide to pursue a career in the mining industry,” said Roberta Jamieson, President and CEO of the National Aboriginal Achievement Foundation. “By showcasing fantastic role models and providing key information, our youth are being inspired to recognize their full potential. Thank you Vale for your vision and commitment!”

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The Real Story Behind Ottawa’s Potash Rejection – by Eric Reguly (Globe and Mail-November 11, 2010)

Eric Reguly is the European Business Correspondent for the Globe and Mail, Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

Eric Reguly

BHP Billiton’s $39 billion (U.S.) bid for Potash Corp. is unofficially dead. Ottawa’s rejection of the offer has triggered a flurry of half truths, outright falsehoods and general hysteria from the usual political, business and media quarters. Herewith are some of the myths, and my responses to them.

Ottawa’s (tentative) rejection of the deal sucks because BHP was making a big, fat “investment” in Canada:

No investment is created equally. The best investments are the ones that bring fresh capital, and fresh thinking, to the deal. In this case, BHP’s proposal to buy Potash Corp. was not an investment per se; it was merely substituting one bucket of capital (BHP’s) for another (Potash Corp.’s). The Canadian company doesn’t need BHP’s capital any more than Potash Corp. boss Bill Doyle needs to stuff another $100-million into his holiday fund. Potash Corp. has never had any trouble raising capital; no company with a killer product and a decent business plan does. It became the top fertilizer player on the planet all by itself and ownership by BHP would not necessarily accelerate its growth plans; on the contrary, it might slow them down because BHP has zero fertilizer experience or working fertilizer assets, meaning it could not offer management expertise or synergies.

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Michael Barnes Keeps Northern Ontario’s Mining Heritage Alive – by Adelle Larmour

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 November, 2010 issue.

Chronicled the North’s Facinating History and Folklore

Humility and hard work has kept one Ontario author’s pen to the parchment. 

Michael Barnes, a prolific Haliburton-based writer and author of several Canadian bestsellers, describes himself as a middle-rank writer that people don’t remember. Yet he has produced more than 50 books, the majority of them about the history of Northern Ontario.

“I’m one of those people that fill up bookshelves in libraries,” he said.

Even though people may not remember his name, they recognize him as the fellow who writes mining books. “That doesn’t bother me. I would rather have the guy up the hydro pole shout down and say: ‘I just read your latest book.’… I want them in the hands of the average person.”

His written contribution to preserving the history of Ontario’s North was recognized by the Canadian government when he was named a Member of the Order of Canada in 1994.

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McGuinty’s Controversial Far North Act Passes – 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 the November, 2010 issue.

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

Far North Act (Bill -191) Brings Out Many Angry Critics and Universal Condemnation Throughout the North

The passage of the Far North Act into law at Queen’s Park this fall wasn’t greeted with sustained applause from Northerners, but with anger and condemnation from all corners.

Natural Resources Minister Linda Jeffrey said the act represents a “new era of social prosperity, economic certainty and environmental protection” that places Ontario as a world leader in fighting global climate change.

However, it’s raised plenty of questions on how the McGuinty government plans to both protect and develop the Far North in setting aside a still-to-be-determined 225,000 square kilometres of boreal forest, or 21 per cent of Ontario’s land mass.

But the highly controversial Bill 191, which places the Ministry of Natural Resources (MNR) as the lead agency to conduct the land use planning in the James Bay region, has many critics asking if the ministry is up to this herculean task.

Ontario’s Environmental Commissioner doesn’t know if the MNR has the manpower and resources to manage the upcoming flood of traffic, people and business in this sensitive region. Gord Miller said “clearly” the MNR must be the lead agency in Far North because they have legislated care and control of all Crown land in Ontario under the Public Lands Act.

But he’s uncertain if the ministry has the resources to take on the task.

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Canadian Mining Sector Plays Important Roles in Chilean Mine Resue Miracle

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.

Other than perhaps the time Neil Armstrong was the first man to set foot on the Moon in 1969 and for recent World Cup football finals no event has attracted as large a television audience as the recent rescue of 33 miners in Chile from the San Jose Mine.  More than one billion people around the world watched the first of the miners brought safely to the surface on October 13 after being trapped almost 700 metres underground for 69 days.  More than 2,000 journalists from around the world were on site in the Atacama Desert to record the unfolding drama.

The global mining industry rallied to meet this challenge and several Canadian mining companies played important roles in the rescue by providing human resources, advanced equipment, services and expertise.  OMA members Cementation Canada, Barrick Gold and Redpath along with Breakwater Resources, Kinross, Finning, Foraco, Precision Drilling, Technofast ATCO and Mining Technologies International were all involved in various aspects of the rescue mission.  Thank you for your part in making sure this story had a happy ending.

We can only share our empathy for the 33 miners and their families and gratitude that they are safe.   However, these circumstances have given mining in general a new profile. You know that through the international media coverage of the Chilean mine rescue on a daily basis that mining has found its way onto the global radar screen when you see children sporting Chilean miner costumes for Hallowe’en. 

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The Ring of Fire – Noront McFaulds Lake Project

This Corporate Profile Advertorial about Noront Resources Inc. originally appeared in the Fall/Winter 2010 issue of the Ontario Prospector magazine which is produced by the Ontario Prospectors Association and published by Naylor (Canada) Inc.

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

Exploration Activities in the Ring of Fire

Noront Resources Ltd. is focused on its McFaulds Lake Project, which includes a number of significant, multiple, high-grade nickel-copper-platinum-palladium, chromite, vanadium and gold discoveries in an area known as the “Ring of Fire,” an emerging multi-metals district located in the James Bay Lowlands of Ontario, Canada. Noront is the largest landholder in the Ring of Fire and continues to delineate and prove up its discoveries with NI 43-101 technical and economic reports and a well-funded and aggressive drill plan for 2010 and 2011. The company recently completed Canada’s first NI 43 101 technical resource estimate for chromite and updated its Eagle’s Nest Ni, Cu, PGM NI 43 101 technical resource report in March 2010. Noront is a publicly traded company and is listed on the Toronto Venture Exchange under the symbol NOT.

Noront’s plans for the future include a three-pronged approach: exploration and regional targeting for additional resources; development and feasibility of the Eagle’s Nest deposit to de-risk the project; and corporate social responsibility with a focus on the environment and aboriginal initiatives.

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Report from the Ontario Prospectors Association – by Gary Clark

Garry Clark is the Executive Director of the Ontario Prospectors Association. This report is from the Fall/Winter edition of The Ontario Prospector magazine published by Naylor (Canada) Inc.

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

Exploration in Ontario continues strong. The projects are varied and seem to be taking a lead role in moving the economy. Commodity and stock prices are staying strong.

Exploration areas that have captured the attention of investors include but are not limited to the Ring of Fire, Timmins, Beardmore-Geraldton, Sudbury, Rainy River, Atikokan and Kirkland Lake. Speaking with explorationists, there are numerous projects with multiple diamond drills working. The constant call to the OPA has been is looking for geologists to work on the various projects.

The Ring of Fire has captured the attention of Queens Park and the early spring budget focused on the economic importance of this exploration play on the entire province. The Ontario Geological Survey is completing various projects to help explorers in the region, and the Ministry of Northern Development, Mines and Forestry is creating a new position to help move the  project along. Chromite was not really a targeted commodity 10 years ago in Canada, let alone North America.

The work of the geologists in the area identified the potential of the area while drilling for Copper-Nickel. The First Nations leaders in the area have been working on a steep learning curve to identify the effects and potential for their communities. If the Ring of Fire project continues in the same direction it will be one of the largest industrial developments since the development of the Steep Rock iron deposits. Ideas of railway access, developing projects in low swampy lands and the potential location of a chromite processing plant have community leaders and developers across the north of Ontario scrambling to align for the potential economic stimulus.

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OMA President Gives Mining a Voice at Ontario Economic Summit

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.

The participation of Ontario Mining Association President Chris Hodgson in the 7th annual Ontario Economic Summit provided the mineral sector with a voice on the high-level program.  Mr. Hodgson was a panelist on a session dealing with Ontario’s regulatory regime titled “Smarter Approaches to Regulation.”  The summit was held November 1 to 3, 2010 in Niagara-on-the-Lake.

The moderator of the regulations panel was James Milway, Executive Director of the Institute for Competitiveness and Prosperity.  Other participants with Mr. Hodgson included Jennifer Ahluwalia from Dillon Consulting, Rudy van Zijp who is General Secretary of Actal (advisory board on administrative burden in the Netherlands) and Ontario Environment Minister John Wilkinson.

Mr. Zijp provided an interesting perspective on efforts in Europe to eliminate inefficient regulatory burdens.  Mr. Hodgson used some current examples in Ontario with safety being a success story of continuous improvement.

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Northern Ontario Needs Regional Control and Decision Making to Economically Prosper – by David Robinson

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 October, 2010 issue.

We all wonder why some resource-rich regions like Alberta and Saskatchewan do so much better than other resource-rich regions like Northern Ontario.  And why do some boreal regions, like Sweden, Norway and Finland become rich, creative powerhouses while young people flee others – like Northern Ontario? – David Robinson

Are you old enough to remember Van Morrison’s “Days Like This”? The song has a wonderful line about days when “all the parts of the puzzle start to look like they fit.” It was one of those days when I stumbled on a study from Harvard that answered some questions about Northern Ontario for me.

We all wonder why some resource-rich regions like Alberta and Saskatchewan do so much better than other resource-rich regions like Northern Ontario. And why some communities without resources – think of Singapore and Denmark, and Holland – do well and others basically go nowhere. And why do some boreal regions, like Sweden, Norway and Finland become rich, creative powerhouses while young people flee others – like Northern Ontario?

Now I know some people think Northern Ontario is doing pretty well – and we darned well should be. We are in the early stages of the biggest worldwide resource boom ever. Treading water in this economy is probably easier than sinking.

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Canada’s Remaining Resource Companies Must Stay Canadian – by Michael Atkins

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. Michael Atkins is President of Laurentian Media Group matkins@laurentianmedia.com His column was published in the October, 2010 issue.

“Australia’s position in global resources is not guaranteed. If we fail to remain competitive, Australia will incur a substantial opportunity cost and, in the worst-case scenario, our resources will fall into overseas hands and we will become a branch office — just like Canada…. We have been losing competitiveness, but we are well-placed to increase market share and we have the resources to do it, so Australia in the new world order needs to work out whether we become a competitor or a spectator.” Don Argus, Former Chairman of Australia’s BHP Billiton

If you run a business publication in Northern Ontario, you are never far from the politics of resources. We are always either discovering something new (say, the Ring of Fire) or coming up against something closing (say, the copper and zinc plants in Timmins), either suffering the effect of low prices or getting almost no benefit from higher ones. Lately, of considerable interest is not just what is happening but who owns what is happening.

We are living in an era of worldwide consolidation of the resource sector and this is having a tremendous impact on our prospects and profile. A couple of the consolidators are Canadian companies (say, Barrick Gold) but by and large Canada is disappearing as a serious player. We are pansies. We don’t have the guts and we don’t have the governance and we don’t have the wherewithal to find the capital. We are drifting into irrelevance.

We need look no further than the former chairman of Australia’s BHP Billiton, Don Argus, who said the following a few years ago as he was politicking to buy Rio Tinto, another mammoth mining company that incidentally had bought out another great Canadian company, Alcan:

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The Renaissance of Mining in British Columbia – by Pierre Gratton

This speech was given by Pierre Gratton, President & CEO of the Mining Association of British Columbia (MABC), at the Vancouver Board of Trade Lunch on May 12, 2010.

“The Northwest Territories, where there are three major diamond mines, in the last 12 years have generated $600 million in Aboriginal business revenues, increased Aboriginal secondary school enrollment from 36 to 56 percent and reduced Aboriginal recipients on social assistance by 50 percent.” – Pierre Gratton, MABC President and CEO

“Whereas many industry sectors do not see aboriginal people as a workforce, consumers or partners, the mining sector has been on the leading edge of aboriginal inclusion efforts in employment, partnerships and business development for thirty five years.”  Kelly Lendsay, President and CEO of the Aboriginal Human Resources Council

The Renaissance of Mining in British Columbia

Good afternoon.

Before I begin, I would like to acknowledge the Coast Salish First Nations whose traditional territory we are on today, and to thank the Vancouver Board of Trade for providing the Mining Association of British Columbia (MABC) with this opportunity to discuss the state of our province’s mining industry.

I wish to also thank my colleagues on the executive committee, board of directors and staff at MABC, who work tirelessly on behalf of the mining industry, along with friends and colleagues at AME BC and the Mining Suppliers Association of BC. Special thanks go to members of the Mining Week Committee for their hard work planning and organizing this week’s events.

Mining Week, a tradition for the past 103 years, celebrates the role this industry plays in making British Columbia a great place to live, work and play. This year we’ve partnered with the Canadian Institute of Mining, Metallurgy and Petroleum and its annual conference to reach out to a broader industry and public audience. We’ve also expanded our activities, with events taking place in many communities across the province.

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