Republic of Mining

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.

Grasping at Lies – NGOs, Mining and the Truth – by Marilyn Scales

May 4, 2015October 1, 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. “A lie told often enough becomes the truth.” – Lenin Am I the only one who thinks there may be a conspiracy to defame BARRICK GOLD? The name of the Canadian …

Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 7 of 7) – by Stan Sudol

February 8, 2016October 1, 2008

Finland’s Strategic Nickel Deposits

In the 1930s, Inco had invested several million dollars developing valuable nickel deposits in the Petsamo district of northern Finland, close to the Russian border. At the outbreak of war events in the region unfolded with lightning speed. The Soviets invaded Finland and annexed the nickel mines in March 1940. Germany invaded Russia in 1941 and the Finns recaptured the nickel mines which were immediately put under German control.

The British wanted Inco Limited to keep operating the mines even though production would be sold to the Germans. They were hoping that Inco could slow down development and provide the necessary intelligence for nickel shipments that the British navy could destroy. The Mackenzie King government in Ottawa steadfastly refused to co-operate with this plan. Their big fear was the negative public reaction if it was discovered that a Canadian company was helping send vital nickel to the enemy.

During the First World War some Sudbury nickel had been shipped to the Germans via a neutral United States. The “Deutschland” incident caused a huge uproar in Canada and Prime Minister King was adamant that a similar event would not happen. Inco was caught in the middle but agreed to abide with the Canadian government even though its concession in Finland would ultimately be lost.

Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 6 of 7) – by Stan Sudol

February 8, 2016September 30, 2008

Roger Whittle’s Amazing Invention – the Jet Engine

The successful development of British-born Roger Whittle’s amazing invention, the jet turbine engine was integrally linked to Inco’s metallurgical expertise with high temperature nickel alloys.

In the early 1940s, at the request of Britain’s Air Ministry, company scientists worked furiously to solve the problem of appropriate materials for emerging designs in jet and gas turbine engines. The Germans were also working on their own version of a jet engine the Messerschmitt Me 262.

One of the most noted contributions during the war was the invention of a new alloy for jet-propelled aircraft engines by International Nickel metallurgists from the Henry Wiggin & Company Ltd. facilities in Birmingham.

This new alloy called “Nimonic 80” allowed the jet engine’s turbine parts, particularly the blades, to operate for long periods under tremendous stress, high heat and corrosive exhaust without deforming or melting. This new alloy was superior to German aircraft technology. The first British airplane outfitted with the new engine was the Meteor which first flew in 1943 and was finally approved for the air force in July, 1944.

Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 5 of 7) – by Stan Sudol

February 8, 2016September 29, 2008

Women working for International Nickel

Since 1890, Ontario mining legislation had prohibited the employment of women in mines. Using its powers under the War Measures Act, the federal government issues an order-in-council on August 13, 1942 allowing women to be employed, but only in surface operations. On September 23, 1942, a second order-in-council was issued to allow women into the Port Colborne refinery.

Over 1,400 women were hired for productions and maintenance jobs for the duration of the war. They performed a variety of jobs such as operating ore distributors, repairing cell flotation equipment, piloting ore trains and working in the machine shop.

Twenty-one year old Elizabeth “Lisa” Dumencu, a resident of Lively, a Sudbury suburb, answered the call. “Women didn’t normally do this type of work, but we had to do our part,” she recalls. “It was really remarkable, but my husband Peter, worked even harder underground at Creighton mine.”

Will the Ontario Government Strengthen or Hold Back the Province’s Booming Mining Sector – by Gregory Reynolds

December 9, 2010September 28, 2008

The Dark Days for the British Columbia mining industry began in 1991 with the election of a New Democratic Party government. The introduction of intolerable tax levels eventual led in some instances to mining companies paying 103 per cent taxes on income.

It led to 10 years of stagnation. Money, jobs and people fled the province. The question that mining people in Ontario are asking these days is whether that could happen here.

The lesson of B.C. should be enough for a provincial government to be careful in its handling of an industry that is cyclical in nature and dependent on economic factors largely beyond its control. It seems politicians find certain elementary facts hard to accept.

The Canadian mining industry operates in an environment where prices and demand are determined elsewhere. Commodity prices are not set in Canada.

Payment is in U.S. dollars and therefore the monetary policies of our giant neighbour to the south are more important than those under the control of Queen’s Park or even Ottawa.

Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 4 of 7) – by Stan Sudol

February 8, 2016September 28, 2008

The Struggle for Union Organization

Before the war, among mining camps in Northern Ontario, Sudbury had earned the reputation of being a centre for “scabs” and “company stooges.”

Labour historian Jim Tester wrote in 1979, “Besides, they [Inco/Falconbridge] hated unions with a universal, almost pathological, passion.” He continues, “Inco had one of the best spy systems in all of North America, not exceeded by the notorious set-up at Fords. Inco’s reputation was known in every mining camp on the continent. In Kirkland Lake and Timmins there was a tremendous sympathy for the nickel workers of Sudbury. It was estimated that one in ten Inco workers was an informer.”

Inco hired people to intimidate union organizers handing out leaflets and disrupted meetings. The company even resorted to violence to keep the union out. In 1942, two union organizers were severely beaten and hospitalized and their downtown office destroyed by a group of twelve company goons. Although it was the middle of the day, no police were around to stop the violence. Two of the twelve went public and the union printed and distributed 10,000 leaflets throughout the community telling the truth.

A portion of the leaflet read, “This may be what INCO wants — it may be what the Star wants — but it is not what we want, and not what Sudbury wants.

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

May 15, 2010September 27, 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 SEDIMENTARY ROCK Near Earth’s surface whatever the sun heats and cools, swells, softens, and shrinks, is dried out, weakened, and splits off. Whatever water …

Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 3 of 7) – by Stan Sudol

February 8, 2016September 27, 2008

CKSO Radio Propaganda (Part 3 of 7)

The enormous war time demands for the metal ensured that the men working underground would be pushed to their very limits. For the ones who stayed at the mines, absenteeism was becoming a major issue. In the fall of 1942, the International Nickel Company of Canada sponsored a local CKSO radio program called “The Victory Parade.”

The following three radio spots were written by W.J. Woodill. The radio ads were used to encourage the general public to buy Victory Bonds as well as attempt to combat miner burnout with guilt.

“Mrs. Housewife! Are you one of those women who does her part by encouraging her husband to do his part in this war? Or are you “A Worry bird”, one of those girl friends of Hitler and Company? You know, even if that husband of yours doesn’t bring home a full war kit and rifle, he’s still doing his part if he’s doing his full eight hours of work every day. That Nickel or copper he’s turning out is mighty important these days.”

“Yes this is a critical time! Your husband is working not for so many cents an hour, but working for Victory. Working to put the metal into the hands of industry so there may be tools of war available. It’s vital that he does his job with his full heart in it. That husband of yours needs a clear head and his full attention to his job. Do your part, look after his health and his peace of mind. Remember he is needed on the job every minute of his shift.”

Canadian Mining Facts from the Mining Association of Canada (MAC) – by Marilyn Scales

May 4, 2015September 26, 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 MINING ASSOCIATION OF CANADA (MAC) released its latest “Facts and Figures 2008” publication at the recent Mines Ministers Conference in Saskatoon. In it are details about the production, reserves, exploration, trade and investment, innovation, tax and human resource aspects of our industry. That’s a lot of ground to cover in 65 pages, but MAC is once again the most comprehensive source of such numbers.

Here are a few of them:

VALUE: The contribution that the metals and minerals industry makes to Canada’s economy by value is relatively stable at 3.5% to 4.5%. Meanwhile, the gross domestic product (GDP) grew to $1.2 trillion in 2007. Of that amount, mineral extraction contributed $9.68 billion and mineral manufacturing $32.22 billion.

TOP TEN: Canada’s top ten minerals by value in 2007 were nickel ($9.90 billion), copper ($4.53 billion), potash ($3.14 billion), coal ($3.14 billion), uranium ($2.76 billion), iron ore ($2.51 billion), gold ($2.38 billion), zinc ($2.09 billion), cement ($1.80 billion) and diamonds ($1.45 billion). The biggest money is to be had in the oil sands. The value of synthetic crude oil last year was $14.80 billion.

RESERVES: Canadian reserves continue to decline as they have for the past 25 years. Years of rising commodity prices led to a “modest” increase in 2006 and 2007, but without exploration spending in this country, production will also decline.

Canadian Election Overshadows Successful Mines Ministers’ Meeting – by Marilyn Scales

May 4, 2015September 26, 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. Prime Minister Stephen Harper’s call for a federal election on Oct. 14 was hardly a surprise. His Conservative party began running election-style ads at the beginning of September. Now, with the …

Inco’s Sudbury Nickel Mines were Critical During World War Two (Part 2 of 7) – by Stan Sudol

February 8, 2016September 26, 2008

Increased Nickel Production

In 1941 the Allied governments asked the company to increase production. International Nickel complied by committing $35 million to expand nickel output by 50 million pounds above 1940 production levels, reaching this goal by 1943 without any government subsidies. However, the Canadian government did allow the company to amortize within a five-year period, instead of ten or twenty years, $25 million worth of expansion expenditures.

That enormous task fell to American-born Ralph Parker, who at the time was the general superintendent of the mining and smelting division at Sudbury. It was one of Mr. Parker’s greatest achievements to organize the enormous program of enlarging the Sudbury mining and plant facilities without any loss of production.

To increase production of extraordinary war-time demands, Mr. Parker had to resort to “high-grading” which entails using above average ore grades and leaving behind lower grades that would have normally contributed to a longer, more profitable mine life. There was a real fear that the company would use up most of its reserves and have little to mine after the war.