September 20, 2012 – Republic of Mining

Mining Association of Canada (MAC) focuses on transparency, free trade (Canadian Mining Journal – September 19, 2012)

September 20, 2012

The Canadian Mining Journal is Canada’s first mining publication providing information on Canadian mining and exploration trends, technologies, operations, and industry events.

VANCOUVER — For Mining Association of Canada (MAC) president and CEO Pierre Gratton, the future of the nation’s mining industry lies in clear cut regulatory reform and the cultivation of global free trade arrangements geared towards expediting the flow of goods and capital across international borders. In a speech at a Vancouver Board of Trade luncheon on Sept. 7, Gratton outlined his vision of a unified Canadian resource sector operating under clearly defined regulatory legislation.

One of the perceived problems with the current Canadian regulatory model lies in layers of reviews that criss-cross over provincial and federal jurisdictions. Gratton is quick to point out that when Canada first initiated its Environmental Review Act in 1993 the majority of provinces did not have comparable pieces of legislation,

“If you clear away the rhetoric with what is going on, and focus on the dual [provincial-federal] review regulations, I think it will make things better. As proponents of the industry we hear from communities expressing frustration they experience by being consulted twice on the same project,” Gratton explained during a question period. “What we’re doing 20 years later is taking a step back and saying ‘Do we really need these two systems doing this in parallel?

Canada’s Mining Sector: A Global Powerhouse Contributing to the Country’s Prosperous Future – by Pierre Gratton

September 20, 2012

Pierre Gratton is President and CEO of the Mining Association of Canada (MAC). This speech was given to the Vancouver Board of Trade on September 7, 2012.

Thank you. It’s a pleasure to be back and to reconnect with so many friends and colleagues, past and present.

Thanks everyone for coming to spend some time today to hear about the powerhouse that is Canada’s mining industry and why I firmly believe there’s a prosperous future for our industry – despite current volatility and price declines.

I want to impress upon you three key points:

1) the super cycle is not over, it is taking a pause;

2) Canada is a free trader, thrives on trade and has to avoid the trap of protectionism and

3) we need to continue the steps we have begun to optimize Canada’s future as a mining powerhouse.

Before we talk about the future, let’s rewind a bit. It’s with hindsight that one can look back at a period and observe that it represented a major turning point in human history. The Enlightenment, the Industrial Revolution, the first World War and the end of European colonialism, World War II and the rise of US domination.

NEWS RELEASE: VALE’S CLEAN AER PROJECT MARKS MAJOR MILESTONE WITH DELIVERY OF FIRST NEW CONVERTER

September 20, 2012

For Immediate Release

SUDBURY, September 20, 2012 – Vale is marking a major milestone on its $2-billion “Clean AER Project”, with the delivery of the first converter to be installed in its smelter converter aisle. The new converter is the first of four converters to be replaced as part of the project.

“The delivery of this first converter is a major step in achieving our emissions reductions and is a tangible example that we are on our way to successfully completing this project,” said Dave Stefanuto, Director of the Clean AER Project.

The Clean AER Project, where AER stands for ‘Atmospheric Emissions Reduction’, is one of the largest single environmental investments in Ontario’s history. It will see sulphur dioxide emissions at Vale’s smelter in Sudbury reduced by 70% from current levels, as well as dust and metals emissions reduced a further 35 to 40%.

The project involves a complete retrofit of the converter aisle in the Copper Cliff smelter. Sulphur dioxide that currently goes up the super stack from the converters will be captured in a brand new wet gas cleaning plant and acid plant, converted to sulphuric acid and sold.

B2Gold to buy Philippine miner for $1.1-billion – by Pav Jordan (Globe and Mail – September 20, 2012)

September 20, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

A small Vancouver miner has struck the first major gold deal in months, marking what may be the start of a new wave of buying in the sector as bullion prices rise within reach of record highs from a year ago.

B2Gold Corp., which prides itself on mining for gold where others do not, said on Wednesday that it reached a $1.1-billion all-stock deal to acquire CGA Mining Ltd., owner of the largest operating gold project in the Philippines.

It is offering 0.74 B2Gold shares for each share of CGA, a 26 per cent premium to CGA’s closing price as of Sept. 17. Gold prices are near $1,800 (U.S.) an ounce, just off record levels near $1,900 an ounce a year ago.

“I think in a more buoyant market like we have now, there is a greater chance of things getting done,” said Jens Mayer, co-head of investment banking at Canaccord Genuity Corp., which advised B2Gold on the deal. “People are getting accustomed to the new world in terms of valuations.”

The B2Gold/CGA deal is one of the largest involving a Canadian company in recent months, adding some shine to what has been a lacklustre year for deal making in the sector.

Two more killed in crackdown on South Africa mine strikes – by Carley Petesch and Michelle Faul (Globe and Mail – September 20, 2012)

September 20, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Rustenburg, South Africa — The Associated Press

South African police have killed two more people in a crackdown on striking miners, labour advocates said Thursday, with the victims being a ruling party municipal councillor who died of injuries from a rubber bullet and a miner who was run over by an armoured car.

Police threatened to take further action Thursday against illegally protesting strikers at the world’s biggest platinum producer, Anglo American Platinum. Wildcat strikes continued at several other mines even as miners returned to work at the Lonmin PLC platinum mine where police killed 34 miners on Aug. 16. The violence started Aug. 10 with a wage dispute and union rivalry.

Police in two water cannon trucks and several armoured cars moved in Thursday morning on a gathering of striking Anglo American Platinum miners at a shantytown where residents set up barricades of rocks and burning tires and logs. Strike leader Evans Ramokga told The Associated Press that one miner was run over Wednesday by a police armoured car and dragged several meters (feet) before it stopped. He said the man died overnight in the hospital.

Uncertainty over Nexen deal plagues Canada’s oilpatch – by Claudia Cattaneo (National Post – September 19, 2012)

September 20, 2012

The National Post is Canada’s second largest national paper.

Next to the debate generated across Canada by the proposed takeover of oil producer Nexen Inc. by CNOOC Ltd., Thursday’s special shareholders meeting in Calgary to approve the transaction is expected to be a matter of only a few words.

Most shareholders are so thrilled with the $15.1-billion bid for the underperforming company they have already voted and few are expected to show up for the early-morning event in Calgary’s Metropolitan Centre — the few shareholders are expected to be outnumbered by the media.

Nexen chairman Barry Jackson will handle the formalities, then interim president and CEO Kevin Reinhart will have brief remarks — his first since the proposed sale of the senior company to a state-controlled Chinese entity was announced in July.

CNOOC will keep a low profile and Nexen’s 3,000 employees will get their turn later in the day to hear by conference call how they will be affected by the change in ownership.

Meanwhile, all eyes are on the political realm. Messages about how the federal government might react to the bid have been so mixed and so abundant no one is taking this deal’s closure for granted, as reflected in the broad discount between the bid price ($27.50 a share) and the share price ($24.67, down 8¢ on Wednesday).

Northlander train closure could lead to rising shipping costs – by Lenny Carpenter (Wawatay News – September 19, 2012)

September 20, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

The closure of the Northlander train and divestment of the Ontario Northland Transportation Commission (ONTC) could lead to higher transportation costs for the north, said the mayor of Moosonee.

Mayor Victor Mitchell said he is concerned that the sale of the ONTC and its subsidiaries could have long-term economic effects for the northern communities.

Earlier this year, the provincial government announced that the Northlander train, which runs from Toronto to Cochrane, will cease to operate due to escalating operation costs. The Northlander will have its final ride on Sept. 28. Mitchell is concerned that the costs of shipping goods and supplies to the north will rise after the Northlander makes its final run.

“In terms of freight and fuel, it comes by the regulation style oil tankers,” Mitchell said. “And it comes directly from whichever fuel depot it comes from and ships north. If the freight is stopping before Cochrane, how is that fuel going to be hauled?”