Republic of Mining

Sudbury Dumped on the Slag Heap of History – Stan Sudol

May 15, 2012November 3, 2008

This article was originally published in the Sudbury Star – Friday, February 6 , 2004

Sudbury should work extra hard to control its image

Ed Burtynsky is a very successful art photographer who, unfortunately for Sudbury, has become somewhat of a celebrity within the tiny Toronto media establishment. Why should the city be concerned? Mr. Burtynsky’s principal subject matter happens to be industrial environments and many of his photos were taken in the Sudbury region. In fact one particularly photo titled, Nickel Tailings #34, Sudbury, Ontario is not only on the cover of his new book, but is also being highlighted by the Art Gallery of Ontario (AGO) in their media promotions of his show.

If you read last Saturday’s Globe and Mail, you would have seen a “full-page” advertisement for Mr. Burtynsky’s AGO show using a striking photo of a river of slag with denuded trees in the distance. The Globe and Mail is Canada’s most influential newspaper, read by the country’s corporate and political elite – the type of people who make decisions on where factories should be built and where significant government investments should be made.

In the February issue of Toronto Life, journalist Gerald Hannon writes a lengthy profile on Ed Burtynsky’s work and eloquently describes that slag-dump photo as, “One image in particular has become almost iconic. Nickel Tailings #34, Sudbury, Ontario gives us a black and blistered landscape, a fragile line of trees huddling disconsolately in the background, the foreground dominated by a stream so crimson it is as if the earth has bled.”

In a recent review in the Toronto Star, the country’s largest circulation paper, art critic Peter Goddard describes another Burtynksy photo titled #13, Inco Abandoned Mine Shaft, Crean Hill Mine, Sudbury, Ontario as “… that left a pool of lime-green water so toxic and yet so clear – and lovely to look at – that the vertical striations in the rock are reflected in the surface of the deadly pool.”

Taking a Beating

Sudbury’s public relations image is certainly taking a beating. In fact, many in my business might suggest that the past twenty-five years of trying to change the city’s image from a polluted, industrially ravaged moonscape into a transformed, regreened landscape has been dealt a mortal blow!

Canadian Gold Hunters Undeterred by Sliding Price – by Marilyn Scales

May 4, 2015November 3, 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.

It seems like only yesterday pundits looked at the price of gold as it topped US$1,000 an ounce and predicted it could only go up. Actually it was seven months ago, near the middle of March 2008, and we all wish the price would return to that level. Instead, the mess in the global financial markets has for some reason made the U.S. dollar stronger and the price of gold dip to the $750/oz range.

Nonetheless, many Canadian juniors are pressing ahead with work at what they hope will someday be this country’s next generation of profitable gold mines. Here is a sampling that have landed in my inbox during the last two weeks.

ALTO VENTURES of Vancouver sais drilling has begun on targets at its Mud Lake and Three Towers properties in the Beardmore-Geraldton Gold Belt in Ontario. High grades have been unearthed in the region in the past. (www.AltoVentures.com) WESCAN GOLDFIELDS of Saskatoon is earning a 50% interest in the Mud Lake project.

BRIGADIER GOLD of Toronto has extended the gold zone to more than 200 metres vertical depth at its Larder Lake project near Kirkland Lake, Ontario. The intersections were made beneath trenches in which visible gold was discovered in 2005. (www.BrigadierGold.com)

Boomtown Brat – Personal Reflections on Sudbury’s Made in China Economic Recovery – by Mick Lowe

December 8, 2010November 3, 2008

This article orginally appeared in the Christmas 2004 edition of Highgrader Magazine – a Northern Ontario publication that brings the issues, concerns and culture of Ontario’s vast forestry and mineral rich north to the world.

In the latter half of 2003, in the wake of yet another failed marriage, I was forced to indulge in one of the most dreaded of all male pastimes, an activity ranking somewhere between visiting the dentist and plumbing: I had to go shopping. In the act of replacing the myriad of consumer goods that are forfeited when a household is split asunder, I made several discoveries. Ever the nosy parker, (and hoping to support Canadian industry) I made a point of determining the country of origin of almost every purchase: from patio furniture to kitchen utensils, from an inexpensive stereo to a weed-whacker.

The results were astonishing: virtually everything had come from, or at least been assembled in, the People’s Republic of China. Also amazing was how cheap most things were, and that the quality nevertheless appeared relatively high. The world was awash in cheap electronics. It appeared that, at a conservative estimate, 90 per cent of the merchandise in the local Dollarama store was from China. Multiplying the inventory in all the dollar stores in Sudbury times all the dollar stores in Canada conjured up a mental image of a chain of container ships crossing the Pacific from west to east, disgorging an unending stream of consumer goods produced by a nearly infinite supply of cheap labour in a nation of 1.3 billion souls.

Mick Lowe – Journalist and Former Northern Life Columnist

December 8, 2010November 3, 2008

Mick Lowe was born in 1947 in Omaha, Nebraska. He is a 1965 graduate of Lincoln Southeast High School.He emigrated to Canada in 1970, after attending the University of Nebraska- Lincoln for four years,majoring in history, English literature, and philosophy. He also attended the University of Calgary from 1973 to 1974, before moving to Sudbury …

Financial Woes Trim Mining Sector’s Capital Budgets – by Marilyn Scales

May 4, 2015October 30, 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 global financial crisis looks to be the new reality for most mineral producers. Slumping stock markets, wobbly banks and lack of consumer demand are having an effect on Canadian miners, …

Barrick Gold Brings Artisanal Miners into the Fold – by Nancy J. White

October 27, 2008October 27, 2008

This article was first published in “Beyond Borders”, a BARRICK GOLD quarterly report on responsible mining, edited by Nancy J. White, the company’s communications director for responsible mining. “Beyond Borders” contains several other items highlighting Barrick’s initiatives around the world. It will be posted soon at www.barrick.com.

At age 13, Alfaxad Chacha started digging. He never stopped. Seven days a week, 14 hours a day, he sifted through the red mud and rock of the Tanzanian landscape under an equatorial sun. With a little luck and a lot of backbreaking labour, Alfaxad and his friends eked out a meagre living on the miniscule bits of gold they uncovered.

It was difficult work, using dangerous explosives and toxic chemicals. But for 1.5 million Tanzanians, this primitive form of artisanal mining is a daily reality.

Today, Chacha is 50 years old. He lives in the village of Kerende in Tanzania’s Mara region. A life of digging for gold under the ground has hardened him.

“I am an artisanal gold miner. I have been all my life and so were my parents before me, but I’m not too proud of what I do,” Chacha says. “My work is barely able to support me, my family and my community. It is very hard work for very little money. This is not the life I dreamt of, but it is all I have.”

Like many others, Chacha spends his days digging, crushing and grinding ore, to unlock the small particles of gold it contains. He sells his product for a fraction of its true value to gold dealers who pass through the village. It’s part of an underground gold industry in Tanzania – one with no government regulation or oversight of any kind.

Arming Private Security in the Philippines – by Marilyn Scales

May 4, 2015October 27, 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.

Halloween is fast approaching, and I am filled with scary thoughts. I can imagine little ghosts and goblins shrieking for treats. I can imagine costumed superheroes playing gruesome tricks. But the truly frightening thing that I came across this week is the decision made by the Philippine government to allow mining companies to arm their private security forces.

According to reports from GMANews.TV, mining companies in the Philippines will be allowed to established civilian auxiliary armed groups (CAGs) as an adjunct to the local military. CAG members will carry only low-calibre guns, but that is little consolation to anyone who has ever been on the receiving end of a bullet.

Philippine Defence Secretary Gilberto C. Teodoro reportedly said that miners will be allowed to have a many armed men “as necessary depending on the threat level and the terrain” as along as each company signs an agreement with the Armed Forces.

I find this proposal frightening for several reasons.

Historically, the Value of Gold Always Rises During a Financial Crisis – Gregory Reynolds

December 9, 2010October 27, 2008

When in the midst of a perfect hurricane that is threatening the world’s financial structure, it helps to remember an old adage – To know where you are going, look back to where you have been.

The era that should be examined is the Great Depression which began in 1929 with many similar events to what happened in the past few months. It didn’t officially end until 1939 when the world plunged into the Second World War but the reality is that the worst ended in 1934.

The slow climb to normality took six years but it could be seen and measured.

The single most important step taken by the United States, then as now a world power, was the decision on Jan. 31, 1934 to raise the price of gold from US$20.67 an ounce to $35 an ounce.

As president of the United States, Franklin Delano Roosevelt surveyed the wreckage of the U.S. banking system and decided drastic action was required. On March 6, 1933 he closed all the banks for a three day holiday.

Fighting the Good Fight for Sudbury Labour Unions, Safety and Dignity: The Homer Seguin Story – by Bill Bradley

December 8, 2010October 18, 2008

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

Homer Sequin, now retired, but health and safety advocate for the past 50 years, has published his life story.

Entitled Fighting For Justice And Dignity: The Homer Seguin Story chronicles his life from the age of 16, when he started with Inco at the Sintering Plant in Copper Cliff, to his retirement in 1992.

The book is 173 pages, with 40 pictures and is self-published. Journal Printing printed the copies on recycled paper using union labour, said Seguin last Wednesday. Some of the pictures have never been viewed before.

“It chronicles the rise of the whole union movement here and my activity from being a steward on the safety committee to a union trustee in 1963, to vice-president of Local 6500 in 1965, to president in 1967,” said Seguin.

The book is hard-hitting. Seguin had to leave school early to help his mother make ends meet when his 39-year-old father drowned in 1950. At that time Inco did not pay a survivor’s pension, meaning a person had to be alive to receive a pension.

Turbulent Times on the International Mining Scene – by Paul Stothart

December 9, 2010October 12, 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.

Times remain quite good within the global mining industry. There is no shortage of challenges to be sure, ranging from a dearth of workers to mounting social license issues. Nonetheless, the enduring strength of mineral prices continues to drive the industry. Nickel prices grew from $3 per pound in 2002 to $17 in 2007, and copper from 70 cents to over $3. Gold and silver are at prices not seen in decades. The result is record mineral exploration spending, high capital investment, and buoyant stock prices and mergers and acquisitions activity. Demand from emerging economies will continue to drive strong mineral prices in future years.

In this context, a key challenge for the industry worldwide relates to increased international turbulence as governments of many countries aim to capture a larger share of the overall mining revenue streams. Towards this end, governments in many regions are taking a range of actions and, in some cases, following questionable processes. For example:

Claiming Our Stake! Building a Sustainable Community (Part 3 of 3) – Stan Sudol

November 3, 2015October 3, 2008

IV: COMPANY & GOVERMENT INVESTMENTS IN LOCAL BUSINESSES

Maximizing the Potential of our Local Cluster

More money is spent within a 500-kilometer radius of Sudbury on underground hardrock mining supplies than anywhere else in Canada, the U.S, or Chile. In 2005, lnco spent $374 million on local supplies and services and $228 million on capital spending, Within the Sudbury area there are more than 300 companies that form the basis for the Greater Sudbury mining supply and services (MS&S) cluster. These companies range from dozens of small specialty shops that have created niche markets for themselves, to firms specializing in project engineering and management, equipment design and manufacture, software development and other research.

Employing over 8,000 people, they have the potential to create a significant number of new jobs over the next 10 years, expand exports and develop as a technical leader for the mining industry. A recent Institute for Norfhern Ontario Research and Development (INORD) survey conducted for FedNor at Laurentian University indicates that innovation is extremely high among the cluster of MS&S companies in Northeastern Ontario. The study revealed that 83 out of 90 of the firms surveyed indicated they were upgrading products and services and 72 out of 93 had introduced a new product or service in the preceding three years.

Claiming Our Stake! Building a Sustainable Community (Part 2 of 3) – Stan Sudol

November 3, 2015October 2, 2008

INVESTMENT REQUIREMENTS

I: COMPANY INVESTMENTS IN LOCAL OPERATIONS

Local Operations Managed by Two Major Mining Companies

lnco is planning capital expenditures of about $2 billion in the Sudbury Basin over the next five years to expand current production and build new mines. The company is embarking on the largest period of growth in Sudbury in more than 30 years. This is a conservative estimate and depending on the financial clout of the new owner, may be increased substantially, lnco has plans for new mine developments that include the Kelly Lake and Totten deposits, milling upgrades, smelter improvements, including investments in sulphur emission reductions and expansions at the nickel refinery. The company intends to maintain the stability of their workforce, with longer-term growth potential.

Falconbridge’s half billion-dollar Nickel Rim South project, currently under construction, may become the richest individual mine in Canadian history.

Claiming Our Stake! Building a Sustainable Community (Part 1 of 3) – Stan Sudol

November 3, 2015October 2, 2008

In the summer of 2006, Greater Sudbury residents were extremely concerned that the local community was being overlooked during the foreign takeovers of Inco and Falconbridge. The then Mayor David Courtemanche asked me to produce a policy document that outlined the community’s concerns about the impending loss of Sudbury’s two iconic Canadian miners to foreign ownership.

Many community stakeholders were interviewed and an aggressive first draft was delivered to Mayor Courtemanche. To the concern of some of the stakeholders, myself included, the final version was less bold and assertive than originally planned.

However, it was an honour to play a key role in the production and writing of “Claiming Our Stake! Building a Sustainable Community” during this pivotal time in the mining history of the Sudbury Basin.

Stan Sudol

Executive Summary

“There is an international bidding war taking place in the Canadian mining sector, and Greater Sudbury is at the front lines. What happens here in the next few months will re-define the Canadian mining industry and this community for, the next century.

Mayor Courtemanche, Greater Sudbury (June, 2006)

Over the past year, the global business media and Canadians have been captivated by one of the most expensive and bitter takeover battles in the history of world mining. Falconbridge Limited has been taken over by Swiss-based Xstrata PLC and, while the final ownership of lnco Limited has yet to be decided, these events will permanently change the course and ownership of the country’s resource sector.

We are also witnessing one of the largest economic transformations in the history of mankind. China, India and many other developing countries are rapidly urbanizing and industrializing their societies, and mineral commodities and mining expertise are an essential part of this change. The world is entering the start of commodity super-cycle that will last for decades and create enormous prosperity.

Our community has an enormous stake in the outcome of this international bidding war. Our stake is over 100 years of mining behind us, billions of dollars of ore beneath us, and enormous opportunities in front of us. Greater Sudbury is the historic heart and soul of the global nickel industry. Most geologists and mine industry experts agree that there is still another hundred years of life to this enormous trillion dollar mining camp.

Greater Sudbury is home to one of the greatest mining camps that the world has ever known. The Sudbury Basin is the richest mining district in North America and among the top ten most significant globally. In a world full of geo-political uncertainty, Sudbury’s strategic nickel resources ensure a secure environment for the billions of dollars needed to increase production. Nickel has become the metallic version of oil.