Republic of Mining

Hidden Opportunity in Mining Sector Hard Times – by Marilyn Scales

May 4, 2015March 9, 2009

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.

Unless you are recently returned from a remote, primitive tropical island, you are inundated daily by doom and gloom reports, not only for the mining industry but for a broad range of banking, retail, real estate, automobile and more sectors.

“Dismal” is what the latest PricewaterhouseCoopers study calls last year for juniors.

The numbers tell a “sobering tale”, Ernst & Young said of the toll the global credit crisis is taking on the market capitalization of TSX-listed companies.

The Fraser Institute called the outlook “gloomy”, expecting at least 30% of exploration companies to fail.

“The mining industry, generally, is gripped by panic and the vast majority of firms are in lock-down mode,” says Jon Wylie, managing director of Proudfoot Consulting in Canada. “They have reacted to sharply lower commodity prices by scaling back and closing older, higher-cost mines.”

PDAC 2009 Convention – the Mining Bust of a Generation? – by Stan Sudol

May 15, 2010March 9, 2009

What a difference a year makes at the Prospectors and Developers Association of Canada (PDAC) annual convention, the largest on the planet. The PDAC is where the world’s mining analysts, investors, prospectors, exploration managers, government representatives and anyone else connected to this industry come to meet, do business, attend lectures and of course party. There is also a large Investor’s Exchange that the general public can attend to find out about the newest exploration plays or interrogate company presidents about their stock performance.

Needless to say, the mood was somewhat somber as everyone is trying to cope with commodity prices and metal demand that over the past six months have fallen off the proverbial cliff. The rapidness of the crash, along side with the unprecedented turmoil in credit and capital markets that has dried up funding for most exploration and development work has sent a legitimate fear throughout the entire junior mining sector.

A PricewaterhouseCoopers survey found that the market capitalization of the top 100 TSX-V junior mining companies plummeted from $20.2 billion on June 30, 2007 to $4.1 billion by November 2008. Investors are shunning higher risk exploration companies like the plague.

Vale Inco Adds to Sudbury Jobless Woes – by Marilyn Scales

May 4, 2015March 6, 2009

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.

March 3, 2009, is another black day in the employment history of the mining industry in Sudbury, ON. That was the day Vale Inco announced it was cutting 261 local jobs as part of its worldwide restructuring that will result in 900 terminations. At its Thompson, MB, operations, the company let 24 non-union supervisors go.

“Unfortunately the tough decisions announced today are necessary in these exceptional times” said Tito Martins, Vale Inco CEO and president, said in a news release. “The declining nickel price and reduced demand for nickel make it clear that continuing to operate in our current fashion is simply not sustainable. The measures we’re announcing today are intended to address the immediate health of the business and help reshape the organization for a long-term, successful and sustainable future.”

The announcement comes three weeks after the second largest miner in the area, Xstrata Nickel, announced the layoff of 686 workers. The combined cutbacks are a huge blow to the Sudbury community.

To its credit, Vale Inco released background information about its employment practices in Sudbury and Thompson, MB, since it took over operations in October 2006. The figures are an attempt to put the cuts in perspective in several areas.

Sudbury on Edge After Vale Job Cuts – by Bill Bradley

November 3, 2015March 6, 2009

Northern Life, Greater Sudbury’s community newspaper, gave Republic of Mining.com permission to post Bill Bradley’s article. www.northernlife.ca

Mining giant slashes 900 jobs globally, 261 locally

Greater Sudbury is having to face the realities of the global economic maelstrom full force, say Vale Inco officials, unionists, city councillors and members of the community.

First it was Xstrata laying off 682 employees. This week Vale Inco announced 261 non-production job cuts. The Vale Inco workforce reductions are mostly focused on corporate, management and business support operations, according to a Vale Inco press release. The company employs 14,000 people worldwide.

“We are cutting jobs across the board, but none in our production operations in Greater Sudbury,” said Cory McPhee, manager of corporate communications for Vale Inco.

Sixty-five members of Steelworkers 2020 office and technical workers are affected by the cuts, said McPhee. Local 6500 members are not impacted by the announcement, he said.

The Honourable Lisa Raitt – Canada’s Minister of Natural Resources – 2009 PDAC Speech

May 15, 2010March 6, 2009

Toronto, Ontario
March 2, 2009

Check Against Delivery

Introducation

Thank you for that introduction.

I am pleased to be here, and extend a warm welcome to everyone – especially those of you visiting Canada for the first time.

The Prospectors and Developers Association of Canada (PDAC) is one of the premier mining associations in this country. It hosts the largest conference on mining exploration and development in the world.

I’m grateful for the opportunity to comment not only on the challenges your industry currently faces but also on the action that our Government is taking with industry and with mining communities to weather the current economic recession.

This collaborative approach will see us emerge from the current downturn to take advantage of the rebound.

Major Assets

As you know, mining is a mainstay of the Canadian economy and is vital to some 150 rural northern and Aboriginal communities across the country.

The industry directly employed over 363,000 people in 2007, and contributed $42 billion to Canada’s GDP from mining to downstream processing.

Women In Mining Meet the Mining Mogul Contest Winners Announced at PDAC Convention

March 6, 2009

TORONTO, CANADA
March 4, 2009

The three winners were announced yesterday in the Meet the Mining Mogul contest, a first of its kind, put on by the Women in Mining (WiM) networks in Toronto and Vancouver. Each has won a one-hour private meeting with one of the three mining financiers who agreed to be the “prizes” in the contest, which is part of a fund-raising effort by the Women in Mining for The Townships Project.

A one-hour meeting with Frank Giustra of Fiore Financial will be the prize claimed by Guy Saucier. U.S. Gold’s Rob McEwen will meet with Karen Sutherland for an hour’s chat. And Eric Sprott of Sprott Asset Management will meet with Virginia Heffernan.

The Meet the Mining Mogul contest was part of an ambitious fund-raising effort by the Canadian WiM branches to support microloans for impoverished people in the township areas of South Africa. Their goal is to raise $250,000 this winter for the Toronto-based registered charity. Every donation in the campaign up to the time of yesterday’s draw was an entry in the contest. The amount of money raised for the charity at press time was $75,035, but that amount was expected to rise with the publicity that has been generated for the campaign during the Prospectors and Developers of Canada annual convention in Toronto this week, with an attendance of 18,000.

Donald Coxe Speech for the 2009 Prospectors and Developers Association of Canada (PDAC) Convention

May 15, 2010March 4, 2009

With 35 years of institutional investing and money management experience in the United States and Canada, Donald Coxe has a unique background in North American and global capital markets. www.donaldcoxe.com

Due to illness, Mr. Coxe could not give this keynote address at the PDAC convention. PDAC and Mr. Coxe have graciously allowed Republic of Mining.com to post the speech. www.pdac.ca

“WHEN YOU COME TO A FORK IN THE ROAD—TAKE IT”
Don Coxe,
Chairman, Coxe Advisors LLC.

Hello Toronto—I truly wish I were with you. This is a desire that goes back a long way.

Nearly 6 decades ago, when I started reading The Northern Miner, I concluded that the Prospectors and Developers Association convention must be the neatest convention in the world, and the biggest thrill would be to be giving the keynote address to that convention. I could never aspire, then, to that happening. I had to live a long time, and then I proceeded to get sick.

In that sense, it’s an abbreviation of what has happened to us all, which is that, as of a year ago, it seemed that we’d got what we wanted. It was all coming true—and all of a sudden, a financial collapse hit Wall Street. As you know, for the last 6 years, I’ve been telling people that “We are living through the greatest simultaneous efflorescence of personal economic liberty in human history.”

By that, I mean people who for the first time, (after having led lives of privation and poverty) are moving into dwellings with indoor plumbing, electricity, basic appliances, and acquiring access to private motorized transportation. The people who have those things have more personal economic freedom than 99% of the people whom have ever lived.

What’s happened in this decade is simply that a whole section of the world began to catch up to where we in the industrial world had long been, thereby transforming the outlook for the mining industry.

261 Vale Inco Sudbury Jobs Cut Locally, 900 Worldwide – by Bill Bradley

November 3, 2015March 4, 2009

Northern Life, Greater Sudbury’s community newspaper, gave Republic of Mining.com permission to post Bill Bradley’s article. www.northernlife.ca

Two hundred sixty one of the 900 job cuts announced at Vale Inco Mar. 3 are in Sudbury. The rest are at the company’s operations worldwide.

The workforce reductions are mostly focused on corporate, management and business support operations, according to a Vale Inco press release. Vale Inco employs 14,000 people worldwide.

“We are cutting jobs across the board, but none in our production operations in Greater Sudbury,” said Cory McPhee, manager of corporate communications for Vale Inco.

Sixty-five members of Steelworkers 2020 office and technical workers are affected by the cuts, said McPhee. Local 6500 members are not impacted by the announcement, he said.

AFN National Chief Phil Fontaine 2009 PDAC Speech – Toronto

March 4, 2009

Metro Toronto Convention Centre

March 3, 2009

CHECK AGAINST DELIVERY

I want to thank the PDAC – in particular Chief Glenn Nolan and Don Bubar – for inviting me here to provide an update on the Corporate Challenge and our work with the mineral industry.

It was exactly one year ago tomorrow – March 4th, 2008 – that I attended this convention for the first time and signed an MOU with then President Patricia Dillon resulting in PDAC joining the AFN Corporate Challenge.

As I look back to that signing, I wonder who could have foreseen then that the global economy was in for the transformative change we are witnessing today?

As we gather today on this anniversary, I come in the spirit of friendship on behalf of the AFN. Amongst my peoples these bonds are strongest when times are difficult when times are difficult for our friends.

Although, economic forecasters differ on the pace and timing of the rebound in the global economy, there is no uncertainty that prices and demand will recover and grow.

With this in mind, let us discuss our common purpose in fostering relationships of strength and common prosperity as between First Nations and the mining industry, now and for tomorrow.

Teck Digs in to Prosper – by Marilyn Scales

May 4, 2015March 2, 2009

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.

Teck Cominco incurred huge loans ($10 billion) at the worst possible time (October 2008) for the acquisition of Fording Coal. Hit with the double whammy of plummeting commodity prices and a huge debt load, management in Vancouver is digging in to ensure that the company not only survives, but prospers.

Teck told investors at the recent BMO Capital Markets that it will cut sustaining capital needs by $330 million and capital projects by $400 million this year from 2008 levels. It has slowed the development of the Fort Hills oil sands project and withdrawn from the Petaquilla copper project. Zinc production at the Trail metallurgical complex has been reduced by 20%, and the Pend Oreille zinc mine has been temporarily closed.

Teck is selling its 50% share in the Williams and David Bell gold mines at Hemlo, Ont., to Barrick Gold, its joint venture partner. The deal is worth $US65 million.

The Honourable Lisa Raitt – Canadian Minister of Natural Resources – Economic Club of Toronto Speech

May 15, 2010February 26, 2009

Economic Club of Toronto

Toronto Ontario
January 9, 2009

Check against delivery

Thank you very much (emcee), and thanks very much to the Economic Club of Canada for the opportunity to speak here today.

Let me begin by saying what an honour and a privilege it is to serve as Canada’s Minister of Natural Resources.

I guess more people in these parts know me from my time at the Toronto Port Authority and left wondering how that meshes with my new role.

But I am also the daughter of a Cape Breton coal miner. So I understand, in a very personal way, what it means to live in a household that depends on our resource industries.

And, if anything, my time in the boardroom only further hammered home the point that so much of Canada’s trading economy still depends, in large part, on our resource industries. Something we see most clearly in how the Canadian dollar often tracks closely to commodity prices.

So I came into this job with an understanding of the importance of our resource industries to the people who work in them- as well as the impact they have on our economy as a whole.

HudBay, Lundin Bucked off Merger-Go-Round – by Marilyn Scales

May 4, 2015February 26, 2009

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.

Big and small companies are still jockeying for position on the merger-go-round. Unfortunately, not everyone is completing the ride; some are being bucked off. It appears, however, that even in times of scarce financing, there are deals to be done for enterprising executives.

One of the highest profile mergers, that of HudBay Minerals and Lundin Mining, has been derailed. The two companies agreed to terminate their arrangement agreement on Feb. 23. The deal was stridently opposed by HudBay corporate investors who demanded the deal go to a shareholder vote. The Ontario Securities Commission agreed and overturned a previous approval without a vote made by the Toronto Stock Exchange. Although Lundin shareholders had already voted in favour of the merger, HudBay determined that it was unlikely its shareholders would approve the deal. HudBay currently holds a 19.9% interest in Lundin.

The deal between IamGold Corp. and Orezone Resources was complete on Feb 25, and Orezone Gold Corp began trading on the TSX. The acquisition gives IamGold a 16.6% interest in Orezone, including the four-million-ounce Essakane gold project in Burkina Faso. The project could reach full production at over 300,000 oz/year in late 2010. The deal give Orezone a C$20-million equity injection toward the US$350 million needed to develop the Essakane deposit.

The Unknown Giant of Canadian Mining – Thayer Lindsley – by Fred Bodsworth (Part 2 of 2)

September 5, 2016February 26, 2009

Maclean’s Magazine – August 15, 1951

Lindsley is a rare combination of the four “musts” of mine-making success.

The first “must,” and Lindsley’s greatest asset, is his phenomenal insight into problems of geology and vein structure.

Second, he has an uncanny sense of economics and financing.

Third, Lindsley, though self-effacing in his personal life, is a striking contrast as a businessmen. He is willing to gamble hard and boldly with million-dollar stakes and long odds.

And fourth, he can work hard, physically and mentally, with a power of concentration so keen that he is amusingly absent-minded at times regarding matters outside his business affairs in which he has no interest.

Knack for Rock Jigsaws

Lindsley’s ability to work out complex problems of geological structure and decide whether a property is a potential mine or just another “teaser” has become a legend in Canadian mining circles. But he has made mistakes. For example, he pulled out of Red Lake, Ontario, in its early days because he was convinced the area had no promise, then had to watch with embarrassment as it developed into one of Canada’s richest gold camps.

The Unknown Giant of Canadian Mining – Thayer Lindsley – by Fred Bodsworth (Part 1 of 2)

September 5, 2016February 24, 2009

A shy, elderly and virtually anonymous man named Thayer Lindsley personally controls a fabulous international kingdom of gold, silver, copper, zinc and iron. With a genius for geology and finance he has made millions but he has never got around to buying a car.

Maclean’s Magazine – August 15, 1951

The financial pages of Canadian newspapers in the past few months have heralded the discovery of new high-grade ore at Giant Yellowknife, Canada’s lusty gold-producing youngster of the Northwest Territories; they have announced that United Keno, the Yukon’s big silver-lead-zinc producer, chalked up a two-and-a-half-million-dollar profit in 1950; that Falconbridge Nickel of Sudbury and its expanding overseas refinery in Norway will spend millions of dollars to boost output for defense; the “big two” of Canadian mining exploration, Ventures Ltd. and Frobisher Ltd. are pushing the search for titanium in Quebec, uranium in northern Saskatchewan, iron in British Columbia.

Mining editors have headlined a proposed thirty-three-million-dollar project to develop a fabulous copper-cobalt property in Uganda; they have announced that an American firm will reopen ancient silver mines in Greece; that Latin America’s biggest gold mine, the La Luz of Nicaragua, has acquired substantial interests in a Californian tungsten mine, and in promising mining properties of the Philippines, Costa Rica, Honduras and the state of Nevada.

There have been reports too of an exciting iron discovery in the western Sahara, of a Venezuelan move to expropriate the Guyana gold mine, and of mounting production from Southern Rhodesia’s Connemara gold mine.

It is almost inconceivable, yet every one of these enterprises is directed and financially controlled by one person, a reclusive mystery man whose genius for evading the limelight is exceeded only by his genius for geology and mining finance. He is Thayer Lindsley, undisputed No. 1 figure in Canadian mining, who carved out Canada’s biggest mineral empire and then went on to create another international empire just as great.

Bucko Lake Canada’s Newest Nickel Producer – by Marilyn Scales

May 4, 2015February 23, 2009

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.

Canada’s newest nickel producer is the Bucko Lake mine near Wabowden, MB. The mine, which belongs to Toronto’s Crowflight Minerals, shipped its first concentrate on Feb. 12, 2008, to Xstrata’s smelter Sudbury, ON.

The initial concentrate shipment weighed of 90.0 tonnes and contained 11.5 tonnes of nickel. Full commercial production is expected early in Q2 2009.

The Bucko Lake deposit was first investigated by Falconbridge, and a 340.0-metre-deep shaft was sunk in 1971-72. The mine is designed for longhole open stoping with sublevel access on 30.5-metres intervals. The intervals are connected via an internal decline. Backfill consists of cemented hydraulic material and development waste.

Underground mining began late last year in the first high-grade stope area on the 1,000 level (305 metres). Lower grade stopes on the 1,000 level are also being mined, and the high grade stope area on the 900 level (275 metres) is now being developed. The main ramp has been driven approximately 115 metres vertically from surface. Some ore development and crown pillar support activities will occur from the 450 level (135 metres), which should be reached late in the first quarter.