March 16, 2011 – Republic of Mining

OMA member profile: North American Palladium — helping us all breathe easier

March 16, 2011

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.

We should all be able to breathe a little easier with Ontario Mining Association member North American Palladium’s plans for expanding production. Palladium is resistant to oxidation and high temperature corrosion and is useful in eliminating harmful emissions from internal combustion engines. Autocatalysts are the major end use product of palladium, converting more than 90% of hydrocarbons, carbon monoxide and oxides of nitrogen into carbon dioxide, nitrogen and water vapour.

The company’s Lac des Iles mine, which is located approximately 85 kilometres north of Thunder Bay, has been in production since 1993. It has about 200 employees and it is one of only two primary palladium mines in the world.

At this time, North American Palladium’s Lac des Iles mine is involved in a multi-faceted $270 million mine expansion program. The goal is to increase production from 95,000 ounces of palladium in 2010, to 165,000 ounces in 2011 and then gradually building up to 250,000 ounces in 2015 at significantly reduced cash costs, which are expected to be less that $150 (US) per ounce. The current palladium price is in the $800 (US) per ounce range.

Ring of Fire buring issue for Cliffs – Peter Koven (National Post-March 10, 2011)

March 16, 2011

The National Post is Canada’s second largest national paper. This article was originally published in the Financial Post on March 10, 2011. pkoven@nationalpost.com

Bill Boor knows he is in a tricky situation with the Ring of Fire, and that whatever decision he announces in the coming months will upset a lot of people.

“It’s a byproduct of what I think has been a pretty transparent approach that we’ve taken here,” the president of ferroalloys at Cliffs Natural Resources Inc. said in an interview at the Prospectors & Developers Association of Canada conference.

“You can be very transparent and try to work in good faith to come to the right answer, or you can keep your cards close to your chest, don’t get people excited and just slam an answer down, which I think is less likely to be optimal.”

Cliffs is leading development of the Ring of Fire, an ultra-rich source of chromite and other metals located in a very remote corner of the James Bay Lowlands in Northern Ontario. The provincial government views it as crucial for economic development in the North, where it is expected to become the next major Canadian mining camp.

Peat: solution for power-plant mercury pollution (June 25, 2006) – Stan Sudol

June 28, 2011March 16, 2011

This column was originally published in the June 25, 2006 issue of Northern Life.

Stan Sudol is a Toronto-based communications consultant who writes extensively on mining issues. stan.sudol@republicofmining.com

Due to pollution concerns, the recent announcement to keep coal-power plants open was not easy for the provincial Liberals, but Ontario is facing power shortages. They had no choice. It was a tough but pragmatic and responsible decision.

The government still plans to replace coal-fired generation as soon as possible without compromising electricity production. Unfortunately, one of the biggest drawbacks is mercury contamination.

Before the GTA’s Lakeview plant closed last year, Ontario’s five coal-fired stations produced about 527 kilograms of mercury which was almost one-third of all mercury emissions in the province.

The McGuinty government has been severely criticized for backing out of its commitment to the Canadian Council of Ministers of the Environment to reduce toxic mercury discharges by 50 percent – now an unattainable goal. However, there is a solution for mercury pollution. Peat fuel – a biomass energy source-is abundant in Northern Ontario.

Energy Lessons for Ontario from Finland (March 26, 2006) – by Stan Sudol

June 28, 2011March 16, 2011

This column was originally published in the March 26, 2006 issue of Northern Life.

Stan Sudol is a Toronto-based communications consultant who writes extensively on mining issues. stan.sudol@republicofmining.com

The Ontario government is committed to closing the province’s four coal-fired generating plants by 2009 due to pollution concerns. This will eliminate 6,500 megawatts of power generating capacity, about 20 percent of production. These four power stations cost billions of tax dollars to build, and with regular maintenance, could continue running for decades. As a consequence, Ontario taxpayers will have to needlessly spend billions more to construct new gas-fired generating plants – powered with a very expensive source of energy that is in short supply.

We are entering uncertain times in a new globalized economy where reasonably priced energy is a key factor for investment decisions. Ontario’s manufacturing might is being put at risk with policies that don’t accommodate sensible and sustainable development of local energy sources.

Concerns about high sulphur and mercury emissions from coal-fired power plants are being cost effectively addressed around the world. Many jurisdictions significantly reduce these pollutants by co-firing coal with a variety of locally-derived biomass fuels.

Energy lessons for Ontario from the Irish Celtic Tiger (March 3, 2006) – by Stan Sudol

June 28, 2011March 16, 2011

This column was originally published in the March 3, 2006 issue of Northern Life.

Stan Sudol is a Toronto-based communications consultant who writes extensively on mining issues. stan.sudol@republicofmining.com

Ireland, well known as the “Celtic Tiger,” has become an industrial showcase for economists around the world. In the early 1970s, one of the most backward regions of Europe began a series of policy initiatives that transformed the country into a knowledge-based economy with a standard of
living higher than the United Kingdom and Canada.

One Irish initiative that could apply to Ontario was an energy policy committed to using indigenous fuel to help offset expensive imports of oil. That local energy source was peat fuel, and surprisingly the largest accessible deposits in the world are in Ontario.

Peat fuel has been a source of heat in Ireland for centuries. Its use for electricity started in the 1950s and supplied just under 40 percent of total power generation by the mid-1960s. Currently, peat fuel supplies about 12 percent of the country’s power needs. Last year, two new peat-fired power plants were opened at a cost of $570 million (US).