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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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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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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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. Read the rest of this entry »