Our Best Friend
Kimberlites with Diamonds

With the discovery of diamonds in the kimberlite bodies of the Lac de Gras district in the N.W.T., Canada emerged as a major diamond producer, challenging South Africa, Botswana, Australia and Russia in both quality and quantity of diamond production.

Diamond hunting is difficult because kimberlite outcrops are rare, due to the fact that the rock is easily eroded; often a chunk of the stuff will crumble in the hand.

The big mining news in the eighties was of the gold at Hemlo, but in that decade two men were searching for a much more elusive quarry. Veteran prospector Chuck Fipke and geologist Dr. Stu Blusson spent all they had and all they could borrow to finance a quest for diamonds.

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Two weeks ago during Toronto’s annual mining convention, a Memorandum of Understanding (MOU) between the Assembly of First Nations (AFN) – Canada’s national organization for Aboriginal people – and the Prospectors and Developers Association of Canada (PDAC) - an industry lobby group – was signed.

In a prepared speech for the MOU, National Chief of the Assembly of First Nations, Phil Fontaine said, “Two months ago, I had the opportunity to travel to the Attawapiskat First Nation to visit the community and the new Victor Diamond Mine…I was very impressed with De Beers’ commitment to working closely with Attawapiskat. This kind of economic development is bringing hope to so many people who are desperate to provide for their families.”

Patricia Dillon, the previous President of the Prospectors and Developers Association of Canada, stated, “The deliberations and discussions leading up to the signing of this MOU have been undertaken with much goodwill on both sides. This historic document formalizes a relationship that has been flourishing for some time and lays a framework for the mineral industry to work cooperatively with First Nations and aboriginal communities.”

This agreement sends a tremendously strong message to governments and the environmental movement that Canada’s top Aboriginal leadership supports and wants to expand sustainable mining developments when proper consultation and economic agreements are implemented.

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I would like to thank everyone for taking the time away from this very busy convention to come here to witness this Memorandum of Understanding in our Corporate Challenge between the Prospectors and Developers Association of Canada and the Assembly of First Nations.

I also want to sincerely thank PDAC President Patricia Dillon; Don Bubar, who is chair of the Aboriginal Affairs Committee, and Chief Glenn Nolan, who is a PDAC Vice President, for all of the hard work it took to get us to this important occasion.

I also want to thank all of the PDAC staff – particularly Philip Bousquet and Kim MacDonald – who have been in contact with the AFN since last May.

Some of you may be wondering why we want to work with the mining industry. It’s pretty simple. First Nations want to work with all industries and corporations in order to achieve economic self- sufficiency.

By doing so, this will empower First Nations to break the chains of dependency and despair; empower us to revitalize our languages and cultures; and empower us to participate and prosper in the Canadian economy.

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Memorandum of Understanding between the PDAC and the AFN
signed by the AFN National Chief and the PDAC President
Toronto, March 4, 2008

MEMORANDUM OF UNDERSTANDING

Between
The Prospectors and Developers Association of Canada, a not-for-profit association formed under the laws of Canada, with headquarters at 34 King Street East, Suite 900, Toronto, Canada M5C 2X8

(hereinafter referred to as “PDAC”)

and

THE NATIONAL INDIAN BROTHERHOOD, incorporated under the laws of Canada and serving as the Secretariat of the Assembly of First Nations with its head office at the Territory of Akwesasne, R.R. #3, Cornwall Island, Ontario

(hereinafter referred to as “AFN”)

PREAMBLE

1. WHEREAS the AFN is a national First Nation organization that represents First Nations and all their citizens in Canada and is represented by a duly elected National Chief;

2. AND WHEREAS the PDAC is a national association that exists to protect and promote the interests of the Canadian mineral exploration sector and to ensure a robust mining industry in Canada, and encourages the highest standards of technical, environmental, safety and social practices in Canada and internationally;

3. AND WHEREAS the PDAC actively promotes greater participation by Aboriginal Peoples in the mineral industry as well as greater understanding and co-operation between First Nations communities and mineral exploration and mining companies;

4. AND WHEREAS the AFN and the National Chief have launched a Corporate Challenge to engage Corporate Canada to establish, enhance and increase their business activities with First Nations in order to realize the advantages of doing business with First Nations. Specifically, corporate Canada is challenged to increase partnerships with First Nations communities and businesses; investigate and increase investment potential; establish and foster procurement practices that benefit First Nations; and develop and enhance human resources development and labour force development activities with First Nations communities and people;

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Good morning.

Thank you for the invitation to speak to you today. I am delighted to be here in Florida, one of the states leading the way in the drive for new nuclear generating capacity in the United States.

2008 marks Cameco’s 20th anniversary. And while history has delivered its ups and downs, the future of Cameco and the nuclear industry are exciting and robust. Today, I want to impress upon you the strength of Cameco and my enthusiasm for our ability to address current challenges, seize opportunities and pursue our vision to be a dominant nuclear energy company.

Cameco is built upon an unparalleled uranium asset base, vertically integrated operations, a long-term contracting strategy, and a team of the industry’s most talented and dedicated people. We are an industry leader, delivering increasing returns amidst the growing momentum in the nuclear industry.

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Gerald W. Grandey was appointed chief executive officer of Cameco Corporation on January 1, 2003.  He joined Cameco in 1993 as senior vice-president marketing and corporate development.

Prior appointments include vice-chair and chief executive officer of The Concord Mining Business Unit and president of Energy Fuels, an American coal and uranium mining company.

Grandey practiced law in the mid ’70s with a major Denver law firm specializing in mineral financing, natural resources and environmental law.  He graduated from the Colorado School of Mines in 1968 with a degree in geophysical engineering and, after serving two years in the US military, received his law degree from Northwestern University in 1973.

Grandey is a past-president of the Uranium Producers of America and currently serves on the boards of the Nuclear Energy Institute and Bruce Power and is past vice-chair of the World Nuclear Association.

Cameco Corporation is the world’s largest uranium producer accounting for 20% of world production from its mines in Canada and the US. The company’s leading position is backed by 500 million pounds of proven and probable reserves and extensive resources. Cameco holds premier land positions in the world’s most promising areas for new uranium discoveries in Canada and Australia as part of an intensive global exploration program.

Cameco is also a leading provider of processing services required to produce fuel for nuclear power plants, and generates 1,000 MW of clean electricity through a partnership in North America’s largest nuclear generating station located in Ontario, Canada.

Kerr Addison Mine was one of the great elephants of Canadian gold mining. In the trade this simply means it had been a giant producer since the mine first started turning out mill feed in the mid-thirties.

The prospect of gold produced in bullion form excites both honest and criminal minds alike. While most of us like to dream about the precious yellow metal, some take positive action to acquire it.

In the mid-sixties a bullion shipment from the mine was hijacked at the Larder Lake station by Quebec underworld figures. On December 21st 1972 thieves struck again, this time with the mine payroll as the star attraction.

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The discovery of ore in the Sudbury area is one worthy of recording for in many ways its discovery was both accidental and initially at least, unappreciated.

 In 1856, A.P. Salter, provincial land surveyor was involved in survey work in the area. While running the meridian line north of Whitefish Lake, he noted a deflection on his compass needle. This occurred in the area between present – day Creighton and Snider townships. He reported to Alexander Murray, a geologist with the Geological Commission. Murray visited the area, took samples, and wrote a report; however, in 1856 little interest was generated given the inaccessibility of the area. Significantly, the samples were taken about 200 yards west of Creighton mine. Creighton mine was rediscovered in 1886 and in 1901 the Canadian Copper Company began operation there.

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The Canadian and international mining industries are enjoying buoyant times. As shown in the adjacent table, while the specific figures vary by mineral, overall prices have grown by roughly two-fold to five-fold over the past five years.

In some instances, prices have continued to increase through 2007. Gold, for example, has increased in value by another 35 per cent since 2006 — to around $850 per ounce. Copper is expected to climb another 50 per cent to 450 cents per pound in 2008 according to Bloomsburg projections. Nickel and zinc prices generally levelled off or declined in the latter part of 2007.

At these high price levels, exploration spending, both globally and in Canada, has increased significantly as companies seek to find new mineral reserves. Global exploration spending has grown exponentially from $2.4 billion in 2003 to $10.5 billion in 2007.

Merger and acquisition activity has also exploded in recent years. In Canada, Xstrata bought Falconbridge for $20 billion, CVRD bought Inco for a similar amount, and Rio Tinto bought Alcan for $38 billion. Read the rest of this entry »

I had the good fortune to spend a day with mining colleagues and mining supply and service leaders in a workshop in Sudbury sponsored by NORCAT and The Conference Board of Canada to discuss the lack of recognition and the importance of mining and related services within the national and provincial political context.

It was clear that mining as a national strategic asset receives little acknowledgement from all senior levels of government. Note the recent mining takeovers. What is more distressing is the almost total dismissal of the mining supply side within policy discussions.

It is frustrating to sit in rational discussion about industries that generate jobs and innovative products to a booming natural resource sector and find that all Canadian related mining services/products can’t be catalogued and identified within government statistics and profiles.

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