The Mining Economic Downturn — Two Unknowns – by Paul Stohart

Paul Stothart is vice-president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues. www.mining.ca This column was originally published November, 2009. This column was originally published in February, 2009

To mining company managers, an economic downturn is old hat. Typically, a few years of economic growth lead to a year or two of stagnation and low mineral demand and prices. Mining projects are put on hold until the price and availability of labour and materials return to a sound
footing. Other variables, such as wars, strikes and technological shifts can exacerbate or mitigate this cyclical movement of mineral prices.

The current economic turmoil, however, is not a traditional business cycle. Yes, the real economy is slowing in a traditional manner. Manufacturing is in recession and high overheated costs have dampened investment in natural resource development. Falling mineral and stock
prices have made the raising of new equity capital and exploration financing unfeasible.

In Canada and overseas, mine development has been postponed or cancelled and companies have entered a “batten down the hatches” mode. Credit Suisse estimates that $50 billion in capital spending in mining — two-thirds of announced global commitments — would be delayed in 2009. Beyond this cyclical slowness, though, two new variables make the present downturn tougher to gauge and recovery time frames more difficult to predict.

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Barrick Target of Yellow Journalism – 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.

Toronto’s Barrick Gold, being the world’s biggest gold miner, is also on the receiving end of the world’s worst media abuses. “Yellow journalism” has not gone out of style, and today the Internet provides the means of spreading disinformation worldwide at speeds unheard of a century ago.

Case in point. Headline: “Deadly toxin invades Barrick’s Dominican gold mine, Thousands hospitalized.”

Those are eye-catching words, but no more accurate than the picture of artisanal miners identified as the “Barrick Gold mine in Coui, Dominican Republic” used to illustrate the article.

The article posted at www.BusinessInsider.com went on to say that over 1,000 people were felled by an unknown chemical so toxic that health care workers who attended them had to wear masks. It also reported a boiler explosion at the site that may have been the root of the problem.

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Ontario’s Ring of Fire Mineral Discovery (6 of 6) – Excerpt from Fortunes Found Canadian Mining Success – by Michael Barnes

Michael Barnes is the author of more than fifty books about characters, communities, mining, and police work. He is a Member of the Order of Canada and makes his home in Haliburton, Ontario, Canada. While living in Northern Ontario most of his life, he has come to know and admire those who make their living in the mining industry.

To order a copy of “Fortunes Found – Canadian Mining Success” go to: General Store Publishing House

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 Discovery

Sheldon Inwentash is a major investor in the Ring of Fire area. He adds a cautionary note: “Until you have a number of these deposits that can carry the burden of infrastructure, it’s way too early to talk about mining.” No one argues the truth of this observation, but about twenty companies are staking big money that the size of the deposits will prove much larger in time with more drilling. Two companies that were in the play from the very beginning and pooled their efforts for a while are Spider Resources and KWG Resources; Freewest Resources has also been involved in a joint venture.

Spider president Neil Novak has been working in the James Bay Lowlands for a long time and stated once that, “Somebody told me my name is attached to about fifteen different kimberlites and a whole bunch of massive sulphide deposits.”

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Ontario’s Ring of Fire Mineral Discovery (5 of 6) – Excerpt from Fortunes Found Canadian Mining Success – by Michael Barnes

Michael Barnes is the author of more than fifty books about characters, communities, mining, and police work. He is a Member of the Order of Canada and makes his home in Haliburton, Ontario, Canada. While living in Northern Ontario most of his life, he has come to know and admire those who make their living in the mining industry.

To order a copy of “Fortunes Found – Canadian Mining Success” go to: General Store Publishing House

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 Discovery

Robert studies a week’s menus. Suppers have a minimum of two proteins, two starches, two vegetables, and one dessert, as well as the baked dessert tray. Other lunch and dinner options have three salads and vegetable, cheese, and pickle trays. Some menu items this week include rosemary chicken schnitzel, halibut fillet, roast beef, and barbequed T-bone steaks. A highlight dessert is apple, raspberry, and pear cobbler. Well-fed workers do a good job, and there are no complaints about meals here.

Before dinner, Diane Pohl puts on a fire drill conducted by the Matrix Aviation crew. Fire is a danger in such isolated locations. A small fire is set in a clearing in a forty-five-gallon oil drum. There is a 1,000-foot fire hose ready laid and the pump is on a small pond. Within a couple of minutes it is jetting water, and other workers come running in with portable hand pumps. One is David Carrier, who comes from Marten Falls First Nation. He is a burly man able to do a lot of physical jobs around the camp and is pleased to be able to save money in the camp environment.

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Colonialism or Capitalism for Northern Ontario – Gregory Reynolds

This column was originally published in the Winter, 2010 issue of Highgrader Magazine which is committed to serve the interests of northerners by bringing the issues, concerns and culture of the north to the world through the writings and art of award-winning journalists as well as talented freelance artists, writers and photographers.

Colonialism: control by a nation over a dependent territory.
Capitalism; control by a company over a dependent nation.

That is not the text book definition of capitalism but to many Canadians today that is the reality of the present economic system. The basic difference between the two definitions is that force of arms created colonialism but governments today actually welcome companies with their bags of money and empty promises.

Talk to residents of a British Columbia lumber mill town that has watched the company that owns it shut it down while there were still trees to be cut and homes to be built.

Talk to the residents of Alberta as they watch the owners of the oil sands developments create the biggest environment disaster in North America.

Talk to a wheat farmer in Saskatchewan who often must sell it at a lower price than it could get on the world market because a government created board dictates prices. Talk to a hog producer who is cut off from the United States market because American producers want higher prices by limiting access.

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Ontario’s Ring of Fire Mineral Discovery (4 of 6) – Excerpt from Fortunes Found Canadian Mining Success – by Michael Barnes

Michael Barnes is the author of more than fifty books about characters, communities, mining, and police work. He is a Member of the Order of Canada and makes his home in Haliburton, Ontario, Canada. While living in Northern Ontario most of his life, he has come to know and admire those who make their living in the mining industry.

To order a copy of “Fortunes Found – Canadian Mining Success” go to: General Store Publishing House

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 Discovery

Bruce gives us a tour and points to other residents. There are twenty drillers, some from Cyr Drilling from Western Canada, but the majority from Orbit Garant, a company from that seemingly inexhaustible supplier of the trade, Val–d’Or, Quebec. There are also three men who operate Devico directional drilling equipment, and their skills can send diamond drill rods slanting off in any desired direction. Caterer 1984 provides food services, and Matrix Aviation Solutions Inc. works to deliver services maintaining camp operation. One 1984 employee is Diane Pohl, who with her occupational first-aid certificate also is Health and Safety Officer, and in her spare time oversees housekeeping services. Her cautionary safety signs are found everywhere, as well as the Noront policy warning that states the camp is alcohol-free and illicit drug-free and advises all on the site that those who ignore this dictum face instant termination.

The camp consists of a combination of thirty-eight tents and green painted plywood cabins. One row of tents is called Sleep Alley, and signs warn passersby that drillers who work in twelve-hour shifts are sleeping. The tents are sixteen by ten feet and, like all the buildings, are well insulated.

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Ontario’s Ring of Fire Mineral Discovery (3 of 6) – Excerpt from Fortunes Found Canadian Mining Success – by Michael Barnes

Michael Barnes is the author of more than fifty books about characters, communities, mining, and police work. He is a Member of the Order of Canada and makes his home in Haliburton, Ontario, Canada. While living in Northern Ontario most of his life, he has come to know and admire those who make their living in the mining industry.

To order a copy of “Fortunes Found – Canadian Mining Success” go to: General Store Publishing House

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 Discovery

The hour-long flight offers an overview of small trees, narrow, winding rivers, and small lakes. The aircraft skims along at 283 knots and bumps down on schedule on the dirt runway at Fort Hope, whose traditional name is “Eabmetoong.” This settlement is on a fairly large lake, and the name means “the reversing of the water place.” The pilots stow baggage that accompanies the newcomers. One young mother has her baby in a soft, moosehide-covered tikanagan, the cradle of the Cree. The flight to Landsdowne House or Neskantaga is only about ten minutes. The population is similar to that of Fort Hope, less than 300 persons for this settlement on Attawapiskat Lake. The plane takes off and has another short hop of fifteen minutes before arriving at Webequie, the third dirt runway of the trip.

Although the resident population is only 253 persons, Webequie is an important community, as it is a jumping-off point for northern exploration camps. The band council has taken a 20 percent share in a drilling company, and local entrepreneurs have formed a logistics company to provide services to camp operators. This village is 540 kilometres by air from Thunder Bay.

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Ontario’s Ring of Fire Mineral Discovery (2 of 6) – Excerpt from Fortunes Found Canadian Mining Success – by Michael Barnes

Michael Barnes is the author of more than fifty books about characters, communities, mining, and police work. He is a Member of the Order of Canada and makes his home in Haliburton, Ontario, Canada. While living in Northern Ontario most of his life, he has come to know and admire those who make their living in the mining industry.

To order a copy of “Fortunes Found – Canadian Mining Success” go to: General Store Publishing House

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 Discovery

When junior companies take on ambitious exploration projects like the work to develop The Ring of Fire, the rate of burn — the expenditure of hard-won financial investment — is used up at a fast clip. Noront Resources alone spent $19 million in 2009. One industry analyst suggests that the six companies drilling in the area will spend around $250 million over five years on exploration. Since site access is by fixed-wing aircraft and helicopters, the budget for transportation is huge.

So it is that the juniors band together in various joint ventures and option agreements, and, since many actually share offices in the same building, there is frequent consultation and shared planning. Nickel ore is considered attractive and would likely bring the fastest payback, but chromite as chrome also has great possibilities for development. If this is the case, concentrate produced on-site could be shipped on the hoped-for road to the south and possibly be processed at a facility set up to produce ferro-chrome, which could be built in Thunder Bay.

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Ontario’s Ring of Fire Mineral Discovery (1 of 6) – Excerpt from Fortunes Found Canadian Mining Success – by Michael Barnes

Michael Barnes is the author of more than fifty books about characters, communities, mining, and police work. He is a Member of the Order of Canada and makes his home in Haliburton, Ontario, Canada. While living in Northern Ontario most of his life, he has come to know and admire those who make their living in the mining industry.

To order a copy of “Fortunes Found – Canadian Mining Success” go to: General Store Publishing House

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 Discovery

As the Prospectors and Developers Association of Canada Convention came to a close in March 2008, a group of industry influentials crowded the Imperial Room of the Royal York Hotel in Toronto for a luncheon to benefit Mining Matters, the mining education charity.

While they waited for the event to begin, a scratchy version of the stirring Johnny Cash song was played over the public address system. The fundraiser was in aid of charity, but the draw beyond the lunch was a claim-staking venture in the remote James Bay Lowlands, which was initiated in the late 1990s, and the events that followed. The series of properties that sparked the interest was dubbed — some say by Rob Cudney — “The Ring of Fire” because when it was further explored, the target area had the distinct shape of a broken circle or crescent with an original source as magma or molten rock from huge volcanic action.

The Cash song was really about love, but this mining play with the potential to create huge wealth for Canada and the expected much needed jobs and spinoff economic activity conjures up a mixture of emotions. The origin of the interest in the area came when two junior companies, Spider Resources and KWG Resources searched as a team for diamonds in 1997–98. They had optioned promising targets to De Beers, and one of these kimberlite targets was drilled and unexpectedly turned up evidence of copper and zinc.

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Honourable Michael Gravelle – Minister Northern Development, Mines and Forestry – Speech at PDAC Aboriginal Forum Toronto, Ontario – March 9, 2010

z-(L to R) Chris Hodgson, President of Ontario Mining Association; Jon Baird, PDAC President; Honourable Michael Gravelle, Minister of Northern Development, Mines and Forestry; Garry Clark, Executive Director of the Ontario Prospectors AssociationCHECK AGAINST DELIVERY

Good afternoon, everyone.

I would like to commend the Prospectors and Developers Association of Canada (PDAC) Aboriginal Committee and all its partners for making this forum possible.

Events like this one are important for promoting a greater understanding of the mineral industry by Aboriginal people and encouraging their greater participation in the industry.

It is with that in mind that I have accepted the kind invitation to address the Forum today. 

What I would like to emphasize is that we all have a vested interest in promoting the sustainability of the mineral development sector.  And we all have a vested interest in maximizing the benefits of mining activity for all, including First Nations and Métis communities.

We must continue working together to make the changes that will help us achieve those common goals. 
 

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The 2010 PDAC Thayer Lindsley Award for International Mineral Discoveries – Perry Durning and Frank (Bud) Hillemeyer

(L to R) Joe Hinzer; Perry Durning; Frank (Bud) Hillemeyer

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

The PDAC Thayer Lindsley International Mineral Discoveries Award recognizes an individual or a team of explorationists credited with a recent significant mineral discovery anywhere in the world. It reflects the global nature of mining and the fact that Canadians are making enormous contribution to this sector. This award is in memory of Thayer Lindsley, one of the greatest mine finders in all time.

Perry Durning and Frank (Bud) Hillemeyer are recognized for their outstanding record of grassroots discoveries in Mexico, particularly the San Sebastian silver-gold mine, the San Agustin gold deposit, the Pitarrilla silver deposit, and the Camino Rojo gold discovery.

Durning and Hillemeyer formed La Cuesta International in 1993 after roughly a decade together at Fischer-Watt Gold, an Arizona and Nevada-based mineral exploration firm.

La Cuesta’s first major discovery was the San Sebastian mine in Durango State, Mexico.

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The 2010 PDAC Viola R. MacMillan Award for Company or Mine Development – Ross J. Beaty

(L to R) Patricia Dillon PDAC Immediate Past President; Ross J. BeatyThe PDAC Viola R. MacMillan is named after the PDAC’s longest serving president. It honours a person who has demonstrated leadership in management and financing for the exploration and development of mineral resources.

Ross J. Beaty is honoured for successfully founding and operating nine resource companies, including Equinox Resources, Pan American Silver Corp., Northern Peru Copper Corp., Global Copper Corp., and Magma Energy Corp.

Beaty, who is foremost a geologist, says his ilk may be the only profession “paid to fail.” Of course, there are exceptions.

Since 1994, Beaty has raised more that $1 billion in capital and created shareholder wealth in excess of $4 billion.

Beaty, with a master’s degree in geology and a law degree, launched an empire in 1980 with the eponymous Beaty Geological, a contract geological services company that was later bought for shares in Beaty’s first public company, Equinox Resources. Equinox’s initial public offering, in 1985, netted $110,000.

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The 2010 PDAC Distinguished Service Award – Nicholas C. Carter

(L to R) Nicholas C. Carter; Tony Andrews PDAC Executive DirectorThe PDAC Distinguished Services Award recognizes an individual for one or more of the following: substantial contribution to the mineral exploration and mining development; considerable time and effort expended on behalf of the PDAC; outstanding contributions to the industry in finance, geology, geophysics, geochemistry research, or a related activity.

Nicholas C. Carter is being recognized for fostering mineral exploration and mining in Canada through his active role in a number of associations and professional societies.

Carter was born and raised in Little Long Lac, Ontario, not more than 200 yards from the headframe of the Little Long Lac gold mine. Carter’s father, a well known, meticulous mining engineer, who later managed the Little Long Lac mine, provided his son with a template for achievement.

Carter graduated from the University of New Brunswick in 1960 as a geologist and proceeded immediately to Michigan Technological University where he studied the iron formations of part of the Marquette Range as part of a master’s degree in geology.

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The 2010 PDAC Skookum Jim Award for Aboriginal Achievement in the Mineral Industry – Willie S. Keatainak

(L to R) Chief Glenn Nolan, 2nd VP PDAC; Willie S. KeatainakThe PDAC Skookum Jim Award is named after Skookum Jim, the Aboriginal leader of the group that discovered the Yukon Klondike goldfields, one of Canada’s most important mineral discoveries. Recipients of this award will have demonstrated exceptional achievement and/or service in a Canadian Aboriginal-run service business for the Canadian mining industry or a Canadian aboriginal exploration or mining company or made a significant individual contribution to the mineral industry either technically, through a business venture, or through a mineral discovery.

Willie S. Keatainak is recognized for his key role in negotiating the Raglan Agreement, encouraging  others to take advantage of the opportunities that the Raglan mine offers, and his longstanding involvement in Nuvumiut Developments, an Inuit community-based company serving the mining industry.

Keatainak is on a mission to better the lives of his people, the Inuit living in communities in far northern Quebec, especially those in his home village of Salluit, situated on the northern tip of the Ungava Peninsula.

In the early 1990s, as the mayor of Salluit, Keatainak acted as the chief negotiator on a team seeking long-term economic stability for Inuit communities through the development of Falconbridge Ltd.’s Raglan nickel depostis, emplaced in the nearby Cape Smith-Wakeham Bay ultramafic belt.

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The 2010 PDAC Environmental and Social Responsibility Award – De Beers Canada – Chantal LaVoie – COO De Beers Canada

(L to R) Scott Jobin-Bevans, 1st VP PDAC; Chantal LaVoie, COO De Beers CanadaThe PDAC Environmental and Social Responsibility Award recognizes an individual or organization demonstrating outstanding initiative, leadership and accomplishment in protecting and preserving the natural environment or in developing good community relations during an exploration program or operation of a mine.

De Beers Canada is recognized for establishing good community relations and ensuring environmental protection at its two diamond mines in Canada.

The company operates Snap Lake in the Northwest Territories and Victor in northern Ontario with about 850 full-time employees, and another 50 part-time and seasonal workers.

About 40% of Victor and one-quarter of Snap Lake employees are aboriginal.

Aboriginal communities are represented by four separate Impact Benefit Agreements at Snap Lake; three Impact Benefit Agreements and a Working Relationship Agreement are in place with the communities surrounding Victor.

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