July 8, 2011 – Republic of Mining

[North Bay] City demands answers to 10 questions about $120-M contract loss – By Maria Calabrese (The North Bay Nugget – July 7, 2011)

July 8, 2011

The North Bay Nugget, established in 1907, is the daily newspaper for the northeastern Ontario community of North Bay.

‘No grounds’ to reopen contract, MPP says

Ontario Northland Railway employees took unpaid time off work to rally with the city as it pushes the province to review a process that led to a $120-million contract going to a company in Quebec.

“I think we’re a little fed up with Northern Ontario not getting our fair share of jobs, and jobs going out of province. We’re just trying to keep local jobs,” said refurbishment worker Trevor Murphy who was part of a crowd of about 200 people, mostly ONR workers, at city hall Thursday morning.

“I think it’s great that everybody is getting involved. This effects everybody in the North.” Canada Allied Diesel Railway Industries Ltd., in Lachine, Que., bid $2 million less than the ONR even though the tender stipulated the lowest bid might not be accepted, and won the contract to refurbish 127 GO Transit rail passenger cars with a one-year-option for 22 more.

Mayor Al McDonald told the crowd the decision could cost 109 local jobs representing more than $6 million in salaries, the province could lose up to $15 million in severance pay and the economic impact to the region could reach $50 million.

Premier’s silence on GO contract stuns Northern leaders – by Ron Grech (The Timmins Daily Press – July 7, 2011)

July 8, 2011

The Daily Press is the newspaper of record for the city of Timmins.

For the past week, Northern leaders have been calling for a review of a $120-million GO Transit contract awarded to a Quebec firm when Ontario Northland’s bid was just 1.6% higher.

Aside from being declared a bad economic move, “what’s more troubling to us is the government’s position which is really one of silence,” said Alan Spacek, Kapuskasing mayor and president of the Federation of Northern Ontario Municipalities. “The silence from the premier’s office is deafening.”

On June 24, Ontario Northland Transportation Commission announced that Quebec-based Canadian Allied Diesel had been awarded the next GO Transit refurbishment contract by the Metrolinx board of directors to rebuild 121 GO Transit cars.

Spacek along with Tom Laughren, Timmins’ mayor and FONOM vice-president, hosted a press conference in Timmins Thursday to publicly express their concerns and to discuss plans to further lobby the Ontario government.

North Bay demands answers from province on rail contract – by Ian Ross (Northern Ontario Business – July, 2011)

July 8, 2011

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

The City of North Bay wants answers from Ontario Premier Dalton McGuinty on why a GO Transit rail coach contract was awarded to Quebec interests instead of the Crown-owned Ontario Northland Transportation Commission (ONTC).

The decision by Metrolinx to award a five-year, 127-car refurbishment contract to Canadian Allied Diesel Railway Industries (CADRI) of Lachine, Que. has city council demanding the contract be suspended and reviewed by the province.

CADRI’s $120 million bid bested ONTC by $2 million, but North Bay Mayor Al McDonald said there are other factors at play. At a June 7 press conference, North Bay Mayor Al McDonald called the awarding of the contract a “flawed process” that will kill 109 jobs at the North Bay-headquartered Crown corporation, eliminate about $7 million in payroll and cost hundreds more indirect jobs in the region.

Ontario Mining Act and Far North Act upsets Aboriginal groups…any many others – by Gregory Reynolds

July 8, 2011

This article appeared in the Winter 2010-11 issue of Mining Life & Exploration News (Canada’s Quarterly Mining Magazine)

Ontario has a new Mining Act and also a special law intended to protect 225,000 square kilometres of the Boreal Forest, the Far North Act. Then why are so many people unhappy with these pieces of legislation?

Basically because many Aboriginal organizations, environmental watchdogs and mining groups believe when the verbiage is stripped from the core of the two laws, they leave total control in the hands of the government.

Many argue both the mining sector and Aboriginals are worse off today than before the process started to protect the industry while respecting constitutional rights and Treaty obligations involving natives. There is a saying, the legislature passes laws but the devil is in the regulations created by bureaucrats.

It is the process that will lead to the regulations under the acts that have many organizations concerned today and worried about tomorrow.

OMA member Sifto Canada helps upgrade town of Goderich’s infrastructure — and future prospects

July 8, 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.

Ontario Mining Association member Sifto Canada is joining forces with the Town of Goderich and the Goderich Port Management Corp. in a public-private partnership to expand and enhance the local port. The three parties have signed a memorandum of understanding for the anticipated $47 million project.

The plan envisions the creation of six hectares of new industrial land at the harbour, new docks for ships carrying salt, aggregate and agricultural products, new storage facilities, repairs to existing port infrastructure and the installation of new breakwalls. The project will create more than 500 construction jobs. The plan will be finalized following the completion of satisfactory environmental assessments, engineering studies and feasibility evaluations.

The Goderich port improvement project will be funded through a $15.7 million grant from the provincial government, funds from the Goderich Port Management Corp.’s major maintenance account and port usage fees. Sifto is expected to pay about $19 million in additional port usage fees over a five year period.

Pressure from U.S. could hasten development of strategic chromite deposits in Ring of Fire – by Gregory Reynolds

July 8, 2011

This article appeared in the Winter 2010-11 issue of Mining Life & Exploration News (Canada’s Quarterly Mining Magazine)

The drive to develop the Ring of Fire’s huge storehouse of minerals is no longer just based on economics but has entered the world of international politics. In fact, the safety of the United States of America has become a factor……and the military establishment wields a big stick.

The need for a safe and secure chromite source to keep the U.S. gigantic defence machine in a state of perpetual readiness (as well as fighting two wars at the moment) has been drawn to the world’s attention by WikiLeaks, a web site dedicated to revealing government secrets.

In November, WikiLeaks founder Julien Assange started publishing some of the 250,000 secret diplomatic message sent by and to U.S. diplomats stationed around the world. Concern was expressed about foreign dependence on key commodities.

One of the key players in the Ring of Fire is KWG Resources Inc. and it issued a statement Dec. 6 that said: “The inclusion of chrome sources in Kazakhstan and India, on a U.S. State Department leaked listing of strategic assets, demonstrates the potential global significance of the Ring of Fire chromite discoveries. Until now, North America has had no commercially viable sources of chromite,” explained KWG president Frank Smeenk.