Industry Minister Sets Record Straight About Laurentian/U of T Funding Controversy – 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 following note was posted on the Canadian Mining Journal’s digital edition. It is federal Industry Minister Tony Clement’s reponse/spin to the heated controversy of funding mining research at the University of Toronto’s Lassande Institute (which also includes significant civil engineering programs) instead of focusing scarce resources at the previously established Centre of Excellence in Mining Innovation (CEMI) at Laurentian.

Laurentian is located in the heart of Sudbury, Ontario, the richest mining district in North America and among the top ten most strategic mineral deposits in the world. There are no mines in downtown Toronto and most industry experts confirm that U of T’s mining programs are undersubscribed. In addition, having two major mining research centres in this province further dilutes the limited amount of mining research in Ontario. Tony Clement continues to refuse to give any funding to CEMI’s industry respected research programs while the provincial government and the mining sector has contributed approximately $20 million to the Laurentian institute.

During my research into a previous column – about turning Laurentian in the Harvard of the Mining Sector – many individuals who wanted to remain off the record, agreed that the most economic solution for postsecondary mining education and research in Ontario is to consolidate all programs at Sudbury’s Laurentian University. – Stan Sudol

Canadian Mining Journal

On June 7, I wrote about the new Lassonde mining innovation centre to be established at the University of Toronto, and how that announcement has residents of Sudbury, where the Centre for Excellence in Mining Innovation (CEMI) is located, angry at the snub. On behalf of the Hon. Tony Clement, Canada’s minister of industry, CMJ received the following letter.

“I feel it necessary to set the record straight. I think that everyone needs to be privy to some of the facts surrounding the spin to bring a bit more balance to the CEMI/Knowledge Infrastructure Program [KIP] story. Here are the facts.

“The government of Canada through KIP can only fund new projects that: a) submit a funding proposal; b) have a proposal that qualifies for funding within the program criteria (ex: the funds are used for building and renovation, not operations, and that the project will be completed by March 31, 2011); and c) have matching funds from either the province or the university or college. The KIP program can only match funds for renovation projects up to 50%.

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Modernizing Ontario’s Mining Act: Proposal To Move To Map Staking – by Michael Gravelle – Minister of Northern Development and Mines

Not everyone realizes that the products of mining are all around us, all the time: in medicine, in transportation, in electronics, in consumer goods. In that regard, the value of mining in the everyday lives of all Ontarians cannot be overstated.

In addition, the minerals sector is a major contributor to Ontario’s economy. Ontario leads the country in the production of non-fuel minerals, such as nickel, gold and copper, and is a major player in the world. In 2008, Ontario’s mineral production was valued at $9.6 billion, with the province’s 27 metal mines generating $6.6 billion for the economy.

The McGuinty government remains wholly committed to building on the industry’s status as a world leader in mineral exploration and development, while it continues to promote sustainable mineral resource practices for the benefit of all Ontarians.

At the end of April, it was my pleasure to introduce to the Legislature proposed ground-breaking changes to Ontario’s Mining Act.

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Ontario Mining Association Presents Mineral Sector’s Contributions at International Forum

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 Ontario Mining Association highlighted many of the contributions of mining in a web-based seminar of the Lake Superior Binational program.  “Ontario Mining: A Partner in Prosperity Building” was the title of the OMA presentation in a workshop on the Socio-Economic Aspects of Mining in the Lake Superior Basin.

“There are lots of statistics with dollar signs that could be used to illustrate the positive economic impact of mining,” said Peter McBride, OMA Manager of Communications.  “However, the real impact of mining is its role in developing people and communities.  Mining provides a broad scope of employment and entrepreneurial opportunities, community building and infrastructure enhancement.”

Ontario´s place as the number one mining jurisdiction in Canada both in terms of mineral production and mineral exploration was emphasized.  Mining provides Ontario with a trade surplus of about $3.3 billion, corporate tax revenues of more than $600 million and an industry payroll of about $1.2 billion, annually.  The sector invests about $2.7 billion annually in R&D, exploration, construction and equipment.

Other presentations at the webinar of the Lake Superior Binational Program´s Mining Sub-Committee, which was chaired by Mike Ripley of the Sault Ste. Marie based Chippewa Ottawa Resource Authority, included Peter Homenuck who is a consultant and professor emeritus in environmental studies at York University. 

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Funding Furor Erupts in Ontario Over Mining Research – 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.

Residents of northern Ontario, and Sudbury in particular, are furious with the funding of a new mining innovation centre in Toronto rather than where the industry operates. The $20-million centre will be built at the University of Toronto and named after Pierre Lassonde, president of Newmont Mining. The federal and provincial governments are each putting up $5.5 million. The balance will come from private donations, and Lassonde is said to be the largest donor.

What makes the deal such a bitter pill for northern residents to swallow is that it sets up a new mining innovation centre in direct competition with the Centre for Excellence in Mining Innovation (CEMI) already established in Sudbury. The new institute’s mandate is reported to be the same as CEMI, its name is so close as to be confusing, and its technology will duplicate what is already available.

“The decision by the federal government to deny funding to CEMI is a deliberate, calculated snub to the city of Sudbury, its provincial member [Rick] Bartolucci … and, most assuredly, [FedNor executive director Louise] Paquette,” Michael Atkins, president of Northern Life, wrote in that newspaper last week. “The willingness to quickly invest in a competing institution in Toronto just adds incredulity to the inside story.

“Either Sudbury sees its future as an international mining cluster, or it doesn’t. There will be no help from the province unless you demand it. There is a choice. Cower in the corner praying for the next grant or demanding the respect that is due a cluster that is more respected in Argentina, South Africa and Australia than it is in its own province,” he concluded.

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New PwC Survey Paints Gloomy Picture of Mining – 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 latest news from PricewaterhouseCoopers (PwC) is very gloomy. The survey, titled Mine: When the going gets tough, is full of bad news.
 
Unfortunately, PwC reports a market capitalization of the world’s top 40 mining companies has dropped by 65%. The cutoff for inclusion in the top 40 was a capitalization of $2.3 billion in 2008 rather than $9.0 billion as was the case in 2007. The firm blames the fall of commodity prices and the impact of the global economic crisis on investor confidence for the decline.

Gold companies were least affected. Their market capitalization decreased by only 20%, thanks to the perception that gold is a safe haven during economic turmoil. There are now 14 gold companies in PwC’s top 40, and together they comprise 26% of the total market capitalization. 

Investor returns were lower last year, too. In 2008, only three of the top 40 companies reported positive total shareholder returns. The four companies reporting the greatest decline dropped 75% or more. The picture is even gloomier when compared to the 2007 numbers. Fourteen of the previous year’s top 40 had returns of more than 100% and four reported a whopping 400%.

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Ontario Mining Association Helps Launch Far North Planning Legislation

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 President Chris Hodgson was on hand to help Minister of Natural Resources Donna Cansfield raise the curtain on Far North planning legislation earlier this week.   This legislation is a step towards permanent protection of about half, or 225,000 square kilometres, of Ontario´s Far North through a network of conservation areas.

This new bill proposes to enable community based land use planning involving First Nations in the determination of areas to be protected and areas available for sustainable economic development, to conserve habitat for a number of animal and plant species and to assist climate change efforts by ensuring much of Ontario´s Far North landscape acts as a giant carbon sink.  “This legislation would contribute to a sustainable and more prosperous future for the people and communities of the Far North and provide important and far-reaching environmental and economic benefits for our province as a whole,” said Minister Cansfield.

“On behalf of OMA members, we favour an open and transparent approach in which information is shared,” said Mr. Hodgson.  “Adding greater certainty to the process in a timely fashion assists in business related and investment and employment decisions.  We look forward to working with Minister Cansfield and her staff to help advance the Far North land use planning process.” 

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Keep Beijing out of Sudbury – by Stan Sudol

This column was originally published in the National Post on October 01, 2004

Canada’s corporate sector has benefited tremendously from access to the United States economy, the richest and largest in the history of mankind. A crucial component of the wealth of that rich market is the secure and sustained access to essential industrial metals.

The Canadian government must not allow Noranda’s 60% controlling interest in Falconbridge to fall into Chinese government control, a prospect that seems likely if the recent $7-billion bid by state owned China Minmetals goes unchallenged. Falconbridge is the third largest producer of nickel in the world. Nickel, a white-silvery metal, whose unique properties, is a critical component to the health of the U.S. economy, including its military/industrial complex.

Nickel is not an abundant metal in the Earth’s upper crust.  The mining and refining of this vital metal for national defense and industrial applications, is a very specialized business.

Four countries, Russia, Australia, Canada and New Caladonia account for approximately 60 per cent of world mine production. Falconbridge is one of four elite companies – the others being Norilsk (Russia), Inco (Canada) and WMC (Australia) – that account for a little over half of world production.

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Federal Snub of CEMI was Unnecessary — Editorial Comment by Sudbury Star Editor Brian MacLead

There was quite a hullabaloo last week over Industry Minister Tony Clement’s funding announcement that saw $5.5 million go to the University of Toronto’s Innovation Centre for the Canadian Mining Industry, and nothing for Sudbury’s Centre for Excellence in Mining Innovation.

The similarity in names is no coincidence — they are both research centres vying for government support and private investment. The difference, of course, is that one is located where mines are and one isn’t. Is that bad?

It might not be the problem that some make it out to be, but Clement’s decision to fund the U of T program and not Sudbury’s can only be interpreted as a political move, despite the semantic squirming that was done to explain how all this came about.

CEMI — which has about half a dozen staff members and 20-odd researchers — partners with local educational and industry organizations to conduct research into exploration, deep mining, mining processes and environmental sustainability.

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Former Premier David Peterson’s July 30, 1986, Laurentian University Speech Announcing the Relocation of MNDM and the OGS to Sudbury

In light of the recent decision to put Federal and Provincial money into mining research at the University of Toronto instead of Laurentian, I have posted former Premier David Peterson’s July 30, 1986 historic speech announcing the relocation of MNDM and OGS to Sudbury.

This was one of the most significant economic turning points in the community’s history.

In this speech, Peterson outlines a previous Liberal Government’s entirely different attitude to the sustainable, long-term development of Northern Ontario as well as proudly helping build a global cluster of mining expertise in Sudbury, the richest mining district in North America and among the top ten most strategic in the world.

Honourable David R. Peterson PC, QC

Just over three weeks ago, I was in Sault Ste. Marie with some of my colleagues to announce elements of a northern Ontario economic development strategy this government will carry out over the next few years.

As a first step in this process, we announced a combination of new and accelerated government projects to provide a needed short-term stimulus to that area’s flagging economy.

But we also recognized that the challenges facing the North are related to deeper, more profound changes taking place in the economy. This restructuring is needed to ensure the competitiveness of our resource industries in the international market place.

To better understand and address these longer term, structural changes, we announced in Sault Ste. Marie a number of measures the Government will take.

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Grit’s David Peterson Was Northern Ontario’s Best Friend – Stan Sudol

This column was originally published in the Sudbury Star on February 20, 2004

Liberal Premier David Peterson had the vision and the will to support Northern Ontario

History will probably show that The Honourable David R. Peterson PC, QC was the best advocate Northern Ontario ever had. Ontario’s 20th premier, who was also Minister Responsible for Northern Development and Mines, was a true visionary, in the same mold as John A. McDonald, this country’s first prime minister.

Premier Peterson’s greatest legacy was the decentralization of parts of the Ontario civil service to various regions of the province. This forward thinking Liberal policy was initiated to spread the wealth and stability that government jobs provide. At that time, a disproportionate number of civil servants were located in the booming Toronto region which was choking on its excessive growth.

By relocating government offices and jobs throughout the province, the Peterson Liberals helped diversity the economic base of many communities that were affected by rapidly changing economic conditions.

In those innovative years, the Ministry of Natural Resources was relocated in Peterborough, the OPP headquarters went to Orillia, the Ministry of Agriculture moved to Guelph, parts of the massive Ministry of Health was shifted to Kingston and a section of the Ministry of Transport headed for St. Catherines. Unfortunately the Conservatives stopped the relocation of the Ministry of Tourism and Culture to Niagara Falls.

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Funding Mining Innovation in Toronto Instead of Sudbury Fuels Northern Ontario Resentment – Michael Atkins

Growth Not & Fed Not

How Societies Choose to Fail or Succeed

Michael Atkins is president of Northern Life and sits on the Board of Governors of Laurentian University

“Growthnot” is a term for the much-hyped, once-upon-a-time Northern Ontario Growth Plan promoted by the province, which has been diligently crisscrossing the north interviewing, caucusing, conferencing, engaging with, and otherwise teasing northerners about a new beginning in economic planning for northern Ontario.

The plan would feature bringing together and aligning many ministries of the province to attack the disastrous economic conditions in the north. The first announcement of significance to affect the north came from the co-chair of the Northern Ontario Growth Plan, George Smitherman, who is also deputy premier of Ontario and Minister of Energy and Infrastructure. He announced an infrastructure investment in a mining innovation centre at the University of Toronto, which competes with the Centre for Excellence in Mining Innovation (CEMI) at Laurentian University.

“FedNot” is a term for FedNor — the once proud and (some might say) cocky federal economic development organization that stands humiliated by its minister and mocked by Sudbury Liberal MPP Rick Bartolucci (we must credit him for the FedNot moniker) for refusing to invest in CEMI.

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The Chinese are coming! The Chinese are coming! – 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.

Readers are advised to get out their chopsticks and start practising because the Chinese are coming to Canada. In two separate deals since the beginning of this year, Jilin Jien Nickel Industry has shelled out cash to gain a toehold in potential new nickel producers.

In April, Jien agreed to advance $30 million to Edmonton’s Liberty Mines. Liberty has suspended work at its Redstone nickel mine, but it is hoping to reopen the McWatters nickel-copper mine and make a development decision on the Hart nickel-copper-PGE project. These projects are all near Timmins, ON, and all have measured and/or indicated resources.

For its investment, Jien has received 51% of the issued and outstanding Liberty common shares. The Chinese partner also holds close to 187 million convertible and redeemable preferred shares. If all the preferred shares are converted, Jien will hold 76.8% of Liberty. Jien will also appoint four of the seven Liberty directors.

Separately, Jien has become a joint venture partner with Vancouver’s Goldbrook Ventures on Goldbrook’s Raglan Belt property in northern Quebec.

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Nickel Belt MPP Gelinas Slams MP Clement for Funding U of T Mining Research – by Bill Bradley

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

Nickel Belt MPP France Gelinas has joined a chorus of those who are slamming the federal government for funding mining innovation research in Toronto instead of Greater Sudbury.

“This is wrong. To me it shows how little they consider us. Mining takes place in Sudbury, not Toronto,” said Gelinas. “This is an insult. It is not acceptable.

She said while she supports students who wish to pursue careers in mining, there was no room for two centres of mining innovation. Gelinas dismissed affirmations by Industry Minister Tony Clement Friday that the University of Toronto had been involved in mining programs for over 100 years and that the infrastructure money granted was to renew a portion of a campus building.

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Revisting the Idea of Northern Ontario Separation – by Stan Sudol

This column was originally published in Northern Life on Jun. 21, 2007

The McGuinty Liberal’s policies of the past four years are severely hampering Northern Ontario’s two main industries – forestry and mining.

In the spring, Premier Dalton McGuinty ignored a delegation of five northern mayors, whom collectively represented two-thirds of the region’s population, and were presenting a policy document – Northern Lights: Strategic Investments in Ontario’s Greatest Asset – that detailed constructive solutions for the region’s many problems.

After 130 years of being a resource colony for the south, has the time finally come to create our own province?

Yes, I see the eyes rolling and the heads shaking, but northern separation does have merit.

And if it was possible to carve out Nunavut from the former Northwest Territories with a tiny population of about 30,000 – roughly twice that of Kenora – then a separate province in the north is economically feasible.

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Clement Spurns Sudbury’s Mining Expertise By Not Funding CEMI – Brian R. Gatien

Brian R. Gatien is the Chair, Greater Sudbury Chamber of Commerce

As Chair of the Greater Sudbury Chamber of Commerce, I feel it necessary to express the incredulous dismay of our members and that of the community upon hearing the announcement to provide funding to establish a mining innovation centre at the University of Toronto.

The country (and province) already has a world class facility here in the heart of the world’s leading mining community, whose sole purpose is to develop the very best mining technology and pursue innovative research projects.

As part of the Laurentian University campus, the Centre for Mining Excellence and Innovation (CEMI) is exclusively dedicated to developing new technologies and conducting cutting edge research in the field of mining. Full time researchers are working with undergraduate and graduate students from the university, the country and world to conduct important investigations that will eventually guarantee Canada’s position as the leader in mining.

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