Republic of Mining

It’s Not Easy Being Green – Scott Hand, Former Chairman and CEO Inco Limited

December 9, 2010November 11, 2008

Scott Hand, former Chairman and CEO of Inco Limited gave this speech at the Pollution Probe Annual Gala on November 13, 2003, at the Royal York Hotel, Toronto, Canada.

Scott Hand

Last year I had a milestone birthday. Born in 1902. I turned 100 years old.

Not many Canadians have lived so long. So I celebrated. And reflected on a century of life. What had I accomplished? What did I leave in my wake?

Was I a force for good in the world? Or an instrument of harm?

Tough questions.

The truth is my life hasn’t been perfect. I’ve left a few footprints.

Tonight, I have come neither to blow smoke about our achievements over the century. Nor to apologize for our legacy. You won’t hear me say how “committed” I am. I won’t be pleading for patience and understanding.

You’ll hear a little straight talk, which I hope adds something to the discussion.

First, let me say that that 100-year-old Canadian is Inco. Inco is me. And around the world, there are 10,000 people just like me.

Hopes Fades for Crystallex’s Las Cristinas Gold Project – by Marilyn Scales

May 4, 2015November 10, 2008

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.

The history of the Las Cristinas gold project that CRYSTALLEX INTERNATIONAL of Toronto has tried to lay claim to is steeped in controversy and delay. But the squabbling may soon come to an end if Venezuelan president Hugo Chavez gets his way. He wants to nationalize the Las Cristinas project along with several other industries.

Placer Dome was one of the first companies to drill the Las Cristinas deposit in the early 1990s. The Canadian company formed a joint venture with Corporacion Venezolana de Guayana (CVG), and CVG remains the owner to this day. Crystallex was drilling the adjacent Albino concession at the time.

The entire Kilometre 88 area of Venezuela became one of the hottest gold plays in Latin America during the early 1990s. But the Las Cristinas deposit with 16.9 million contained oz of gold is the richest.

In 1997 Crystallex bought up a privately owned Venezuelan company said to own the rights to part of the Las Cristinas property. Placer Dome called the claim groundless, but it decided to suspend construction at Las Cristinas until the ownership question could be settled. In June 1998 the Venezuelan court dismissed Crystallex’s claim, clearing the way for Placer Dome and CVG to move forward. The next year low gold prices forced Placer Dome put the project on hold.

Vale CEO Roger Agnelli Sustainability Report Message

April 28, 2009November 9, 2008

Click here for the Vale 2007 Sustainability Report

Vale CEO Roger Agnelli

Sustainability is essential for the feasibility of mining activities and for regional and community development where we operate

It is with great pleasure that I present to you Vale´s 2007 Sustainability Report, prepared according to the GRI guidelines, in its updated version the G3. Communication of this information shows Vale’s commitment to transparency in our activities and the improvement of internal sustainability management, in which we will continue to aggressively invest in the coming years.

The last three years were exceptional for Vale. We exceeded all our objectives in production, investment and value generation to our shareholders. During 2007, we consolidated the acquisition of Inco Limited, which occurred in October 2006, and acquired AMCI Holdings Australia Pty, in February 2007, two leading companies in the nickel and coal industries, respectively. With our expanded product portfolio, Vale became the second largest diversified mining company in the world, with operations in 34 countries on five continents. These results were only made possible through the work and dedication of our employees, to whom I extend my sincere gratitude.

Sudbury: A Historical Case Study of Multiple Urban-Economic Transformation – by Oiva Saarinen (4 of 4)

December 8, 2010November 9, 2008

Oiva Saarinen is Professor Emeritus of the Department of Geography at Laurentian University. He has published many articles on Sudbury’s past and is author of Between a Rock and a Hard Place: A Historical Geography of the Finns in the Sudbury Area. This article was originally published in Ontario History/Volumn LXXXII, Number 1/March 1990.

OIVA SAARINEN

Towards a Self-Reliant Community

In 1984 Sudbury was chosen by the Organization for Economic Co-operation and Development (OECD), the Government of Canada, and the Ontario Ministry of Municipal Affairs as an international case study of a declining metropolis that had made a successful urban-economic adjustment after a period of decline. The study confirmed that the Sudbury region had overcome many of the obstacles it had inherited from the 1970s and was on the path towards a more sustainable future.52 The report, however, dealt largely with events that had taken place during the previous decade and devoted considerable attention to political factors. This paper asserts that other long-and short-term factors need to be emphasized as well if the basis for this transitional phase is to be more fully appreciated. In fact, many of the fundamental preconditions for this rapid adjustment from decline towards revitalization and sustainability already existed as far back as the 1950s.

For example, after 1951 the size of the region’s population was unique among Canadian resource-based economies. The foundations for the City of Sudbury as a central-place, already well established during the 1950s and 1960s, were strengthened considerably in the ensuing decade. The post-war birth of a white-collar class and its growing influence stimulated fundamental changes to the economic, political, and socio-cultural order. These three long-term preconditions were complemented by four more recent impulses: creative political leadership at the local and regional levels, financial assistance from the two senior levels of government, increases in productivity by Inco and Falconbridge, and finally, the creation of forward and backward linkages within the mining industry.

In the dynamics of the current metamorphosis phase, community size has been of paramount importance. According to the 1986 census, the Regional Municipality of Sudbury supported a population of more than 152,000. While this figure does not approach the 250,000 often proposed as the minimum for community sustainability, it nevertheless acted as a brake to slow down the decline. The fact that Sudbury was a declining metropolis gave it considerable influence with the provincial and federal governments. Arguing that “no nation is so affluent that it can afford to throwaway a major city,” Sudbury used this political leverage to its fullest advantage. 53

Sudbury: A Historical Case Study of Multiple Urban-Economic Transformation – by Oiva Saarinen (3 of 4)

December 8, 2010November 9, 2008

A Declining Metropolis

The post-war transformation of Sudbury was abruptly halted in the 1970s by problems both urban and economic which threatened the future viability of the city and the Sudbury Basin. Headlines shouted that Sudbury had “hit bottom” and was “struggling to stay alive.” 41 By the early 1970s, it had become evident that a political restructuring was needed to meet the region’s growing need for water, sewage disposal, transportation, and planning. The inability of local municipalities to deal with these issues can be attributed partly to the urban sprawl that had begun as far back as the 1950s, extreme parochialism, and the weakness of the tax base outside the company towns. Attempts by the city to rectify the situation were continuously thwarted by the province until 1960, when Sudbury was allowed to absorb the large population which had settled on its periphery. 42

The change in municipal boundaries, however, did little to solve regional problems or the inequities in the sharing of mining assessment between the province and the municipalities. Sudbury’s continued growth in the 1960s caused considerable financial stress, and, as one observer remarked, public funds were used to make the city only “fit to live in” rather than a “pleasant place to live in.”43 Municipal studies were undertaken which claimed that city residents paid one-fifth more taxes than the average Ontario urban resident while at the same time receiving fewer services.44

Sudbury: A Historical Case Study of Multiple Urban-Economic Transformation – by Oiva Saarinen (2 of 4)

December 8, 2010November 9, 2008

A Regional Central-Place

After World War II Sudbury began to shed some of its colonial-frontier character and image, thanks initially to a significant expansion of the mining economy. This expansion, however, included neither the broadening of the mining economy to include new products nor the strengthening of forward or backward linkages; rather, the Sudbury area provided ample support for the contention that staple economies often lead to just more of the same. 26

The extension of the staple economy into the post-war era could be attributed directly to the influence of the American “military-industrial complex,” for it was the American government, in response to the military needs of the Korean and Cold Wars, that deliberately set the stage for a mining boom in the Sudbury and Elliot Lake areas during the 1950s. This economic expansion in turn enabled the Sudbury Basin communities collectively to attain the critical population or a metropolis. A related event was the passing of the region’s remoteness and hinterland status in relation to other parts of Ontario and Canada.

The acquisition of these new population and geographical attributes supported the transition of the area towards a more mature, service-oriented economy, and by the late 1960s Sudbury had acquired some of the characteristics of a regional central-place. The community was also changing internally: land-use planning was introduced, and a white-collar class was emerging. Unfortunately, many aspects of the transition went unnoticed because of the inordinate attention given to the struggle between lnco and Local 598 during the 19505 and 1960s.

Sudbury: A Historical Case Study of Multiple Urban-Economic Transformation – by Oiva Saarinen (1 of 4)

December 8, 2010November 9, 2008

Sudbury serves as a relevant historical case study of a settlement that has undergone several transformations since its inception as a fledgling village in the latter part of the nineteenth century. Though changes of this kind have been frequent in Ontario, they have not normally happened to hinterland resource communities. This article suggests that Sudbury is unique in this regard, having evolved through five distinct stages: (I) a railway company village, (2) a colonial-frontier mining town and city, (3) a regional central-place, (4) a declining metropolis, and (5) a nearly self-sustaining community.

The constant restructuring of Sudbury’s society and economic base has been caused by a variety of external and internal forces, among which the “human dynamic” has been vital and ever present. The paper suggests that under certain circumstances a resource community can progress from a staples and boom-bust existence to a more sustainable urban economy based on local and regional influences.

A Railway Company Village

Sudbury began its existence as a company village of the Canadian Pacific Railway. 1 In 1883 it became one of the places in Northern Ontario chosen as a temporary construction centre for the railway company. Situated on the outer limit of habitable territory, the site gave no evidence whatsoever that it would ever acquire an importance beyond that of a small wayside station for the transcontinental railway. In 1884 the Commissioner of Crown Lands made land grants to both the CPR and the Jesuits. For the first few years, the population of the townsite was composed almost entirely of railway employees. The CPR initially banned private enterprise and ran all the boarding houses and other retail businesses in the village. When the company subdivided its portion of the site in 1886, it used a gridiron plan that recognized the influence of the pocketed topography and the existing rights-of-way of the railway lines. The legacy of this original layout remains to the present day.

De Beers Shares its Diamond Passion Through Toronto’s Royal Ontario Museum Exhibit

November 7, 2008

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.

Ontario Mining Association member De Beers Canada is sharing its passion for diamonds through its sponsorship of an exhibit at the Royal Ontario Museum. “The Nature of Diamonds” exhibit is scheduled to be on display for all until March 22, 2009. “For thousands of years, diamonds have held a special place in many cultures around the world,” said Jim Gowans, President and CEO of De Beers Canada. “We are proud to be associated with the ROM to showcase the origins, history and allure of one of the rarest materials on earth.”

At a special event to mark the opening of the exhibit, recordings of Shirley Bassey singing the theme song from the James Bond movie “Diamonds Are Forever,” the presence of Canadian triathlon Olympian and medal winner Simon Whitfield and the opening of the vault to show the world´s third largest cut diamond and other spectacular gems and jewelry enhanced the celebrations.

The first diamond mine in Canada is celebrating its 10th anniversary of production this month. Mr. Gowans pointed out that in that short time, Canada has advanced to become the third largest diamond producer in the world. “Canada is now a diamond superpower,” said William Thorsell, Chief Executive Officer of the ROM. “We are enjoying our relationship with De Beers Canada and (he suggested) I think we need to invent a single line of diamonds for men.”

Ontario’s Mining Sector Leads the Way in First Nation Development Partnerships

November 7, 2008

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 mining industry in Ontario is leading the way with innovative ideas and agreements which promote sustainable development in Aboriginal communities. A document produced by Natural Resources Canada titled “Agreements Between Mining Companies and Aboriginal Communities or Governments” shows that 105 agreements have been signed between mining enterprises and Aboriginals. The document shows that 29 of those agreements are in this province. Ontario Mining Association member companies have a strong track record for building bridges and working in collaborative partnerships with Aboriginal communities.

These contracts documented by Natural Resources Canada have been identified and validated by the Intergovernmental Working Group on the Mineral Industry and do not represent an exhaustive list of existing agreements in Canada. The types of agreements identified range from joint-ventures to impact-benefit agreements to exploration agreements and socio-economic agreements. At the recent Canadian Aboriginal Minerals Association conference in Saskatoon, its President Hans Matthews said there are now more than 120 of these agreements in Canada.

Several examples of mutual benefit and cooperation among OMA members and Aboriginal communities can be found. The Musselwhite gold mine, in Northwestern Ontario, which opened in 1997, established a creative agreement with a number of First Nations that provides for education, training, employment and business related opportunities in local communities. Xstrata Nickel and the Wanapitei First Nation reached a mutual benefit agreement concerning the development of the Nickel Rim project in the Sudbury area.

Looking Through Stone – Poems About the Earth – by Susan Ioannou

May 15, 2010November 7, 2008

Excerpt from Susan Ioannou’s book of poetry Looking Through Stone – Poems About the Earth. If you would like to order Susan Ioannou’s book of poetry, go to Your Scrivener Press METAMORPHIC The Earth is never still. Even as it crumbles it is building, great plates pushing sediments up from the oceans or sliding them …

Mining Women in the City (Toronto-style) – by Jane Werniuk

January 17, 2009November 4, 2008

Small groups, organizations and networks of women related to the mining industry have existed for decades all over the world. Until recently, there has been little or no interaction between any of them. That all changed in the summer of 2007 when a major fund-raising effort captured the imagination of mining industry people across the country and beyond.

The Women in Mining (WIM) – Toronto Branch decided to form a team for the two-day, 60-km Weekend to End Breast Cancer, an annual event benefiting the Princess Margaret Hospital Foundation, one of the top five comprehensive cancer research centres in the world.

During lunch in June after one of the many training walks, one of the team suggested that a goal of $200,000 and taking first place in the overall fund-raising was “not only reasonable but easily achievable” given the links that each of the members had and the size of the industry. This was quite a feat considering the event had over 5,300 walkers, 1,000 volunteers and raised $17.3 million that year.

The goal was achieved through extensive communication and networking. Links were established with branches across Canada, the US and around the world. Everyone was committed to the cause as it represented a very loud voice for women in mining and also showed just how much the mining industry cared. Over 399 donations came in, including money from 66 companies involved in mining, engineering, law or finance—a virtual Who’s Who of large and small mining firms. The WIM team was recognized for its efforts by Canadian Mining Hall of Fame chair Don Worth during his organization’s annual dinner in Toronto in January 2008.

The walk was a major catalyst for other opportunities: increasing membership across all Branches; seeking out, discovering and communicating with other WIM groups around the world; launching WIM networks in other locations, across Canada and in such places as Moscow, Brazil, Argentina, Chile and Peru.

The Inaugural International WIM Reception at the PDAC convention in March 2008 drew a crowd of 450. Golder Associates shared half its double booth at the PDAC trade show with WIM, giving the group a highly coveted base for publicizing its reception.

China as an Economic Superpower – Implications for the Canadian Mining Industry – by Paul Stothart

December 9, 2010November 3, 2008

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. This article was originally published in May, 2007.

There is no shortage of printer’s ink being spilled in recent years writing about the emergence of the Chinese economy. This is, without question, one of the top global news stories of the past decade. After 15 years of double-digit annual growth, the size of the Chinese economy has now reached a state where continued double-digit growth has very meaningful implications for many industries and countries.

Where 10 per cent growth in 1990 may not have had much impact on a global scale, similar growth in
2007 on a much larger economic base has reverberations throughout the global economy.

The emergence of China as a world economic power, and its continued growth, will have direct implications for the Canadian mining industry in three important areas.

Impact 1 – Driver of World Mineral Prices

First, China remains the prime driver of world mineral prices. China is building a domestic infrastructure for 1.3 billion people and is concurrently expanding its role as the world’s manufacturing centre for many product areas. The country simply cannot meet its own needs for copper, zinc, nickel, and other core ingredients of a transportation, power, and communications infrastructure.

Mister Stewart Goes to Washington – by Walter Stewart – Macleans (September 1975)

May 12, 2010November 3, 2008

We wheeled the car out of Cooper Street and south along the Driveway, beside the Rideau Canal, past the carefully tended flower gardens of the National Capital Commission, past the even-more-carefully tended bureaucrats, marching memo-laden back to work after the lunch break, past couples disporting themselves on the greenward, and young mothers rolling their kids out for sunshine and compliments, past, in a word, the mixed panorama of central Ottawa on a summer’s day. My wife said: “Let’s not go.” A foolish fancy, but alluring. We were leaving Ottawa after 12 years, and heading for Washington. We had lived here for eight years, and spent a week out of every month here for four years, and not it was over, and I said: “Ah, hell.”

I was surprised at myself. Canada’s capital has always been a national joke. Transport Minister Jean Marchand’s line that “The nicest thing about Ottawa is the train to Montreal” has become an unofficial city motto, and bitching about the place – its lack of class, good restaurants, sense of history and all the neat things you find in Washington and London and Paris – has become a pastime not only for its citizens but for Canadians everywhere.

Well, nuts to them. Ottawa is not only a superior city, it may even be a model from which other cities can learn. It makes the best of a modest setting – as opposed to, say, Vancouver, which makes the worst of a magnificent setting, or Sudbury, which squats in its glum background like a whore in a hovel – and it has all the amenities most people require.