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Celebration Set for Historic Kirkland Lake Toburn Gold Mine – 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.

The first gold mine in Kirkland Lake, ON, is reopening this summer, not as a producer but as a monument to the early days of prospecting in Ontario’s North. The hunt for gold was filled with characters — “Swift” Burnside, the Tough brothers, Sir Harry Oakes and Bill Wright — all eager to make a profit on the next great gold mine. Part of their legacy is the headframe of the Toburn mine that began commercial production in 1913.

The Toburn mine struggled along with a 90-t/d stamp mill from 1913 to 1931. Then Toburn Gold Mines Ltd. was incorporated and installed a new, larger mill, which operated until 1953. A total of 1.1 million tonnes of ore grading almost 17.0 g/t Au (0.5 opt) was treated. 

The site was abandoned after mining ceased and reverted to the Crown. In 2006 the Northern Prospectors Association set about acquiring the last remaining original headframe on the “Mile of Gold”. Project funding was contributed by individuals, corporations and public institutions. Two years later, the Town of Kirkland Lake acquired the property and the Toburn Operating Authority was created to oversee its rebirth as a tourist and learning destination.

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Big Brains and Why Mining in British Columbia Needs Them – by Pierre Gratton

Pierre Gratton, President and CEO of The Mining Association of British ColumbiaThis speech was given by Pierre Gratton – President and CEO of the Mining Association of British Columbia – on May 4, 2009 at the Vancouver Board of Trade in Vancouver, British Columbia.

This is a must read speech!

Globe and Mail columnist Patrick Brethour wrote about this speech in the May 15, 2009 edition of the paper: After the election, a quiet revolution.

Introduction

Good afternoon.

Before I begin, I would first like to thank the Vancouver Board of Trade for the opportunity to speak to you today. This is an annual address on the state of the mining industry by the Mining Association of British Columbia (MABC) and we appreciate the opportunity the board provides
us to do this.

I would like to thank my colleagues on the executive committee and board of directors and the staff at the 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. I especially would like to
thank all the members of the Mining Week Committee who have worked hard to plan and organize this week’s events. In particular, I’d like to thank one of my staff, Claire Thomson, who has worked unstintingly but cheerfully pulling so much of this together.

Mining week, a venerable tradition for the past 102 years, celebrates the role this industry plays in making British Columbia a great place to live, work and play.

This week events take place in Vancouver, Kamloops, Elk Valley and in many other communities across the province.

Here in Vancouver, Mining Week celebrations started with a well-attended gala awards reception last evening at the Terminal City Club. The Mining & Sustainability Award 2008 – a tie this year – was presented to Absorbent Products and the Upper Similkameen Indian Band in
recognition of their respective contributions to sustainability in the mining industry.

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Where Ontario’s New Mining Act Fails the Industry – 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.

I had a lengthy and most interesting phone call from Michael Leahy last week concerning the proposed changes to the Ontario Mining Act. First, he said, the Mining Act passed in 1873 was never a static document. It has been amended many times, including a complete rewrite in 1990. Leahy knows whereof he speaks because he was involved in the revisions two decades ago, and until 2006 he sat on (and chaired) the Minister’s Mining Act Committee.

Still actively prospecting from his home in Kirkland Lake, Leahy says enforcement of the Mining Act will come through the passage of various regulations as set out in the Act. Until these regulations are written, much of the practical application of the Act is uncertain. 

The Ontario government has also significantly broadened its powers of regulation with this Mining Act. Leahy is correct to point out that regulations are passed without the public readings and procedures necessary to get bills through the provincial parliament. That leaves me wondering if regulatory changes will be made arbitrarily, with no notice and less consultation.

Leahy pointed out that the concept of ‘native traditional lands’ is unclear.

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Ontario Mineral Industry Cluster Council (OMICC) Opposes McGuinty Plan to Stop Sustainable Resource Development in Half of Northern Boreal Region

The Government of Ontario established  the Ontario Mineral Industry Cluster Council (OMICC) in 2003. The OMICC mandate is to lever Ontario’s current mineral industry assets to create a larger and more globally competitive cluster and to foster a sustainable and rising standard of living. The OMICC is co-chaired by Jim Gowans, President and CEO of De Beers Canada Inc. and Warren Holmes, Chairman, Nuinsco Resources Limited.

The following OMICC policy response has been sent to key Liberal Cabinet Ministers in the McGuinty Government:

Ontario Mineral Industry Cluster Council’s Position on Protecting a Northern Boreal Region
 
On July 14, 2008, Premier Dalton McGuinty announced the protection of 225,000 square kilometres of the far north boreal region under its Far North Planning Initiative. On behalf of the Ontario Mineral Industry Cluster Council (OMICC), we are pleased to submit OMICC’s position on the announcement and its potential impact on the Ontario economy, the communities, the industry and Ontario’s reputation as a preferred destination for mining exploration and development.

The OMICC, a provincial organization is mandated to foster a sustainable and rising standard of living from Ontario’s rich mineral endowment and lever the current mineral industry assets to create a larger and more globally competitive cluster of mineral and related industries. Members represent a range of mineral related industries, businesses, associations and organizations.

We find it encouraging to note that the Government of Ontario, as part of its Far North Planning initiative, has demonstrated its commitment to work with Northern communities and the mining companies to create opportunities for economic development and to ensure that the mining industry remains strong. You are well aware of OMICC’s strongly held position that responsible development of Ontario’s mineral wealth must ensure full and fair opportunities for the province’s First Nations to participate in all phases of the mining cycle and benefit from resource revenue sharing.

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Aboriginal Communities and the Mining Sector are Essential Partners for Poverty Alleviation and Industry Success

The Mining Industry Resources Council (MiHR) contributes to the strength, competitiveness and sustainability of the Canadian metals and minerals industry by collaborating with industry, organized labour, educational institutions, the Aboriginal community, and other groups to develop and implement solutions to the industry’s national human resource challenges. Visit www.mihr.ca for more information.

The following news release was recently distributed by the MiHR:

Aboriginal communities to play critical role as Canada’s minerals and metals industry faces daunting shortfall in trained workers

Tens of thousands of skilled positions must be filled in next decade to keep mining industry robust

OTTAWA (April 27, 2009) – One of Canada’s most productive industrial sectors faces a serious skills shortage in the next decade according the Mining Industry Human Resources Council (MiHR), which today launched an awareness campaign to educate Canada’s Aboriginal communities and the mining industry how to work together to find a mutually beneficial solution.

A key player in the global mining industry, Canada is one of the world’s largest exporters of minerals, metals and diamonds. Aboriginal Peoples represent a significant, largely untapped resource for addressing the expected labour shortfall next decade, when tens of thousands of workers from the baby boom cohort are set to retire.  The Aboriginal population in Canada is growing six times faster than Canada’s non Aboriginal population. To address this, MiHR, an independent, industry-driven organization, has developed several tools including a website (www.aboriginalmining.ca) and two extensive informational guides for Aboriginal communities and industry employers.

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The Positive Economic Impact of the Vale Inco’s Voisey’s Bay Nickel Project on Aboriginal Communities and Newfoundland – Raymond Goldie

Raymond Goldie is a senior mining analyst with Salman Partners Incorporated and is the author of “Inco Comes to Labrador” (Flanker Press, 2005). This article was written in December, 2008.

Since the late twentieth century, there have been remarkable changes in the world’s mining industry’s attitudes with respect to community relations.  The mining industry has come to recognize that it is of critical importance to engage the local community in mining development, and it has acted accordingly.  The development of the Voisey’s Bay mine in northern Labrador by Inco Ltd. and its successor, Vale Inco, has epitomized these changes in attitudes and actions.

In 2002, Voisey’s Bay Nickel Company (“VBNC”, now Vale Inco Newfoundland and Labrador ), then a subsidiary of Inco (and now of Vale Inco), made deals with the government of Newfoundland and Labrador and with First Nations groups in the vicinity of the Voisey’s Bay mineral deposit.  These deals allowed Vale Inco to develop a mine and concentrator at Voisey’s Bay.  This operation produces concentrates (which are feedstock for smelters and refineries) of nickel and copper.  The deals also obliged Vale Inco to provide training, employment and business opportunities for members of local communities (including the engagement of local Labradoreans in caring for and monitoring Voisey’s Bay’s natural environment) , and to improve the provision of health care and other social services to those communities.

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CBC Radio Cuts Continue Colonial Treatment of Northern Ontario – by Michael Atkins

Michael Atkins is president of Northern Life – www.northernlife.ca – Greater Sudbury’s community newspaper.

I have written for years about the colonial aspects of living in rural Canada, most of that experience gained from my life in northern Ontario and my family history in Nova Scotia. It does become a little pedantic, but the essence of the message is that you can’t expect to be a grown up, mature, sustainable community or economy, if you have no control or accountability for your environment. If you are not entrusted with responsibility, how would you know how to exercise it?

In the broad spectrum of life in northern Ontario, our people are without influence. We have no meaningful input or accountability for education policy, resource policy, energy policy, social policy, tax policy, immigration policy, economic strategy, or business strategies.
The mining companies do their thinking in São Paulo Brazil, or Zug, Switzerland, the paper companies, to the extent they still have a pulse now, do it in Maryland or Montreal, and all other decisions are made in Toronto or Ottawa. By and large, northerners don’t care that much. They are more focused on the economic hardship they are experiencing, rather than the power relations that exacerbate it.

Northerners are more focused on the economic hardship they are experiencing, rather than the power relations that exacerbate it.

We can add a new silo to this pathetic legacy.

The recent decision to gut the CBC Radio infrastructure in northern Ontario is a case in point. This is a decision made in Ottawa, or maybe Toronto, without one second of consideration for its impact on the north.

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Northern Ontario Separation Episode on TV Ontario – Stan Sudol

Last week, I had the pleasure of being invited onto TVO’s flagship current affairs program, The Agenda, hosted by Steve Paikin. www.tvo.org The topic for the first half-hour segment was about northern Ontario forming a separate province.

As the station’s website states, “TVO is Ontario’s public educational media organization and a trusted source of interactive educational content that informs, inspires, and stimulates curiosity and thought. TVO’s vision is to empower people to be engaged citizens of Ontario through educational media.” The Agenda has been described as a program that “presents in-depth analysis and intelligent debate on issues of concern in the rapidly changing world around us.”

The participants on the five-member panel were:

From Thunder Bay:

  • Rebecca Johnson, City Councilor
  • Livio Di Matteo, Lakehead University Economics Professor

From Sudbury:

  • Rejean Grenier, Editor of Le Voyageur

Toronto TVO Studio:

  • John Beaucage, Union of Ontario Indians Grand Chief
  • Stan Sudol, Communications Consultant, Northern Life Columnist

To view the entire program click below:

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Canadian Mining Journal READER COMMENT: Yea and nay to consolidating Ontario’s mining education at Laurentian and turning it into the Harvard of the mining sector

CMJ field editor Marilyn Scales writes: We opened a can of worms a week ago when we published Stan Sudol’s suggestion that Ontario consolidate the education of mining professionals in one school, namely Laurentian University in Sudbury. Readers were quick to weigh in on both sides. Forty-five people voted on the Hot Topic, and they were 60% against such a move.
 
Better yet, many took the time to write and tell us what they think.

On one hand, an anonymous reader thought Laurentian is the ideal place. “New ideas could develop in a new environment. It will be important to attract the best brains and teachers,” our reader wrote.

Bill Quesnel, president of Parts HeadQuarters in Burlington, ON, thought through the suggestion based on his life-long knowledge of the industry. He made these observations:
 
“Any move to make Sudbury the centre of mining education will have some major hurdles to overcome:

   

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Francophones Have Left an Enormous Imprint on Sudbury – Claire Pilon

Claire Pilon is a Sudbury-based journalist, researcher and translator.  She has given Republic of Mining.com permission to post her column on Sudbury’s francophone history. She can be reached at: cpilon@cyberbeach.net or visit her website: www.clairepilon.com This column was originally published in the Sudbury Star.

In order to celebrate the 125th anniversary of the City of Sudbury, this column will demonstrate how francophones have left and still play an important role in the creation and development of our city.

It will demonstrate how francophones helped shape the city, whether it be in the religious, educational, health, economical or social sectors.

In the following columns readers will be made aware of the many contributions of francophones to making this city what it is today, 125 years after its beginnings.

It was 125 years ago when the first settlers, a great number of them French-speaking arrived in our fait city.

Sudbury was a lumbering town before it became a mining one. It has developed over the years and has seen many changes, some for the best.

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Teck – The Last Diversified Canadian Mining Giant

BHP Billiton chairman Don Argus stated last summer that Canada’s commanding role in global mining had been reduced to “branch office” status. This criticism reflects the fact that Canada`s major mining companies like Falconbridge, Inco and Alcan have fallen under foreign control.

Vancouver-based Teck, however, withstood this wave of industry consolidation and stands today as the last, diversified Canadian mining giant.

So I am both wary of and troubled by the intense negative media speculation over the immediate future of Teck. Due to the emotional “herd” mentality of current stock market investors, if you repeat something often enough it seems to become a fact even though it’s not.

Much of this negative coverage focuses on the company’s ability to handle the US$9.8 billion debt it incurred to fund its acquisition of the assets of Fording Canadian Coal Trust. There is concern over the $5.8 billion in bridge financing that is due at the end of October, 2009. The remaining US$4 billion is term debt and repayable over three years.

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Support for Ontario Mining at Queen´s Park is Unanimous

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 Premier Dalton McGuinty joined representatives of all three political parties at Queen´s Park to show their support for the contributions of the mineral industry at the Ontario Mining Association´s Meet the Miners Day event in the Legislature.   In speaking to the audience of approximately 200 people, Premier McGuinty thanked those in the mining industry for working hard to build the quality of life we enjoy in this province.  Meet the Miners is an OMA event at Queen´s Park involving member companies and their employees, which helps shine the spotlight on the industry in provincial governmental circles. 

“While many things have changed in the world since last year, the contributions to the society and economy of Ontario of mining, especially given current global economic circumstances, are more important than ever to communities and the province,” said OMA President Chris Hodgson.  “On behalf of our members, we want to be — and are — a part of the solution to help draw Ontario out of this recession.”

“In this age, we may be drowning in information but we are thirsting for wisdom,” said Premier McGuinty.  “I want to thank miners for their work ethic and for pulling together in tough times.  Keep doing what you are doing and we can meet our shared responsibility of building a better Ontario for our children.”

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Sherritt International at Eighty – Marching to a Different Drum – by Jane Werniuk (Part 2 of 2)

The Canadian Mining Journal is Canada’s first mining publication.

This article was originally published – February/2008

Coal division

Coal contributed 7% of Sherritt’s revenue in the first nine months of 2007.

2003 was a pivotal year for the coal industry in western Canada, when the two major ownership groups exchanged thermal and metallurgical coal assets. Through its ownership of Luscar Coal Income Fund, Sherritt consolidated its holdings in thermal coal, while metallurgical coal was consolidated in the Elk Valley Coal Partnership.

Sherritt International and the Ontario Teachers’Pension Plan each own 41.2% interest in the Royal Utilities Income Fund, which controls Prairie Mines & Royalty Ltd. Sherritt manages the operations at PMRL’s eight surface mines in Alberta and Saskatchewan. The production from these mines is almost all sold to nearby coal-fired electrical generating plants. As well, Sherritt and the Ontario Teachers’ each own half of the Coal Valley export thermal coal mine in Alberta, which is operated by Sherritt.

While coal was not initially one of Sherritt’s traditional core businesses, it is now a substantial part of the Sherritt puzzle. The company moves 500 million tonnes (t) of material each year to mine 40 million t of coal, making Sherritt the largest surface miner in Canada.

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Sherritt International at Eighty – Marching to a Different Drum – by Jane Werniuk (Part 1 of 2)

The Canadian Mining Journal is Canada’s first mining publication.

This article was originally published – February/2008

Sherritt International is a resources company built from the bricks of a Canadian nickel miner, which recently celebrated its 80th anniversary, shown by the timeline in this article. Despite the intervening decades and corporate upheavals, Sherritt is still a nickel company grounded in the strength of its research, technical innovation and operational expertise. But it has become international, and is aggressively focusing on growth in all its business units–metals, coal, power generation, and oil and gas.

In a recent two-hour interview with the company’s president and CEO Jowdat Waheed at its uptown Toronto head office, I learned that Sherritt has decided to get its story in front of the public, which prompted Waheed to invite me to visit the company’s metals, technology and coal offices and facilities in western Canada followed by a trip to see its Cuban assets, all in four days in early February. It is from this brief immersion that I bring you a snapshot of Sherritt International, today.

Metals division

This is by far the largest part of the company, bringing in 62% of Sherritt’s revenue and 80% of its operating earnings in the first nine months of 2007.

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Ontario 2009 Budget Provides Miners with Tax Efficient Opportunities

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.

Several measures announced by Ontario Finance Minister Dwight Duncan in the 2009 provincial Budget yesterday promise tax savings to Ontario mineral producers.  Perhaps the most important is the move to a single value added tax by July 1, 2010, which could save the mining sector potentially millions of dollars annually.  This federally administered value added tax would have a combined rate of 13% — 8% for Ontario, matching the soon to be phased out retail sales tax, and 5% for Ottawa, matching the current Goods and Services Tax (GST).  

The value added tax allows companies to be reimbursed for tax paid on business inputs through tax credits.  It is estimated that Ontario´s $10 billion-plus mining sector spends about $3 billion annually on these inputs to production.  More than 90% of these production inputs are purchased in Canada and 80% of the province´s mineral output is exported.  The arithmetic may be complicated for individual companies and there is a lag in receiving benefits of the tax credits, but the potential for tax saving — freeing more dollars for future investment — is significant.

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