July 14, 2011 – Republic of Mining

China growth spurs rebound in mining deals – by Brenda Bouw and Tamara Baluja (Globe and Mail – July 14, 2011)

July 14, 2011

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media. Brenda Bouw is the Globe’s mining reporter.

China is reigniting the mining sector with its near double-digit economic growth, working through inventories and triggering a rebound in commodity prices that is inspiring a new round of deal-making in the industry.

The world’s largest commodities consumer reported robust second-quarter growth of 9.5 per cent on Wednesday, surpassing expectations and helping send both stock markets and metal prices higher.

Copper, considered an indicator of global economic activity, slumped below $4 (U.S.) a pound in May amid widespread worries that China’s moves to tackle inflation could derail the country’s breakneck growth. But copper prices have rebounded sharply, reaching $4.40 Wednesday and closing in on the record $4.62 reached in mid-February, as the Asian superpower confounds skeptics.

China’s latest growth figures “should dampen fears that the economy is heading into a hard landing and they suggest that policy makers can afford to stay focused on tackling inflation for a while longer,” said Mark Williams, senior China economist at Capital Economics. That is expected to keep driving demand for commodities used to help build infrastructure and everyday goods such as appliances and automobiles.

NEWS RELEASE: [Ring of Fire] Matawa First Nations form United Front to Protect Natural Resources

July 14, 2011

FOR IMMEDIATE RELEASE

Matawa First Nations is a Tribal Council of nine Northern Ontario First Nations located in Nishnawbe Aski Nation (NAN). The members are Aroland First Nation, Constance Lake First Nation, Ginoogaming First Nation, Long Lake #58 First Nation, Eabametoong First Nation, Marten Falls First Nation, Nibinamik First Nation, Webequie First Nation. www.matawa.on.ca

July 14th, 2011– Today all nine Chiefs from Matawa First Nations communities signed a historic declaration, making the commitment to stand together to protect the natural resources and territories of member First Nations. The Mamow- Wecheekapawetahteewiin- “Unity Declaration”, states that the nine Matawa communities agree that they “must stand together in order to ensure our nation is protected. Therefore, we assert our Aboriginal and Treaty Rights to the land, water and resources by requiring our written consent before any development activity may proceed.” The “Unity Declaration” further states that; “Failure to consult, accommodate and receive the consent of the First Nation(s) to proceed with any work or activity is an unjustified infringement upon our Aboriginal, Treaty and Custodial rights as First Nations.”

The declaration that was unanimously supported comes after a Matawa summit that was held in Neskantaga First Nation in early June, 2011, that focused on the development of a unified strategy to move forward on future developments and the protection of the First Nations lands, waters and resources. Chief Sonny Gagnon of Aroland First Nation says; “With this declaration, we hope to send a very powerful message to industry and government- Matawa First Nations are working as one. Any development occurring around any of our First Nations communities will impact us as one and this needs to be recognized”.

Support for ON [Ontario Northland jobs] ‘incredible’ – by PJ Wilson (North Bay Nugget – July 13, 2011)

July 14, 2011

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

Northern Ontario communities are banding together to protest the awarding of a rail car refurbishment contract to a Montreal firm over the Ontario Northland shops in North Bay.

Sudbury and West Nipissing mayors have offered their support for the North Bay-based Crown corporation’s bid to refurbish GO Transit cars in a five-year deal worth in excess of $120 million. Ontario Northland’s bid was about $2 million greater than the bid from a Quebec-based company.

“I want you to know that you have my full support in that the tendering process must be looked at as it is crucial that these jobs remain in our province,” Sudbury Mayor Marianne Matichuk said in a letter to North Bay Mayor Al McDonald dated Tuesday.

“These contracts are critical to the growth and sustainability of our communities and it is imperative that this government (Metrolinx) rethink their decision. We must fight to keep jobs, not only in the North but in our province.”

Hudak vows to review Metrolinx deal – by Antonella Artuso (North Bay Nugget – July 13, 2011)

July 14, 2011

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

TORONTO — PC Leader Tim Hudak is promising to review the controversial Metrolinx decision to hand a lucrative contract to refurbish GO Transit coaches to a Quebec-based company over a North Bay competitor.

“This July, a McGuinty government agency — Metrolinx — selected a Quebec-based company to refurbish GO Transit rail cars even though the (Ontario Northland Transportation Commission) has been doing high quality work for years,” says Changebook North, the party’s northern Ontario platform. “Yet Dalton McGuinty allowed this decision to stand, costing 100 good jobs.”

Hudak will release Changebook North Thursday in Thunder Bay.

While Changebook North calls on McGuinty to review the Metrolinx decision prior to the fall election, Hudak said he’s prepared to do so after Oct. 6 if his party forms the next government.

Gold on a record-breaking roll – by Lisa Wright (Toronto Star – July 14, 2011)

July 14, 2011

Lisa Wright is a business reporter with the Toronto Star, which has the largest circulation in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

Gold prices have reached a new record high and are expected to top $2,000 U.S. an ounce later this year amid the recent flurry of anemic U.S. economic data and new fears that Europe’s debt crisis will spread.

“It’s pretty amazing. Gold is really the ‘it’ thing,” said mining analyst Barry Allan of Mackie Research Capital in Toronto. “I remember not long ago when it hit $500 and people were cheering about that,” he said.

After a steady climb from $1,495 on July 4, bullion shot up another $23.30 U.S. an ounce to close at $1,585.20 in New York Wednesday. And the gold bugs say it’s just a preview of more good times to come for the often fickle precious metal.

The last record high of $1,577.40 was set on May 2 before an abrupt pullback in precious metals that dragged gold below the key $1,500 benchmark.