Another $500 K for Laurentian’s school of mines – by Heidi Ulrichsen (Sudbury Northern Life – January 17, 2013)

http://www.northernlife.ca/

The founding executive director of Laurentian University’s Goodman School of Mines is no stranger to the city. In the past, Bruce Jago has worked as an applied mineralogist and exploration director at Inco Ltd. and as the vice-president of exploration at Wallbridge Mining.

Most recently, Jago, who holds a PhD in geology, served as the CEO of Miocene Minerals in Vancouver. “This is the third time I’ll have lived in Sudbury,” he said, speaking to reporters after a Jan. 16 press conference at which his appointment was announced.

“This opportunity came up to come back east, and our family is in Ontario. It’s an amazing opportunity. So, third time lucky. I think we’re going to stay here for a long time.”

The school of mines, created last June, will focus on developing interdisciplinary majors and minors, creating new executive programs for those already in the industry, networking with other schools of mines, doubling the enrolment in mining-related programs by 2020 and continuing to improve student experience.

Beyond introducing Jago, university officials announced at the press conference the school of mines executive director position is being funded through a $500,000 gift from Franco-Nevada Corp.

Franco-Nevada is an $8-billion gold royalty company. David Harquail, the company’s CEO, said he was convinced to provide the funding because the company earns about 10 per cent of its revenues from mines in the Sudbury area.

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First nations’ growing voice pressures resource sector – by Shawn McCarthy (Globe and Mail – January 17, 2013)

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.

OTTAWA — Canada’s energy and mining companies are facing new challenges from first nations that are demanding the right to approve all resource projects on traditional territories and to participate in the revenues.

Saskatchewan Regional Chief Perry Bellegarde on Wednesday called on governments not to approve leases or other exploration rights unless companies can demonstrate they have properly consulted local aboriginal communities. He said resource companies should bring first nations into their planning at the earliest possible stages, and be prepared to treat them as full partners in development.

“We have to be involved in the economy – fully and no longer marginalized,” Mr. Bellegarde said. “Because if we keep talking about self-determination as indigenous peoples, that’s got to be linked to self-sufficiency.”

Spurred by “Idle No More” protests, many of the country’s chiefs met last week with Prime Minister Stephen Harper, who committed to work more closely with them on treaty rights and economic development.

Chief Bellegarde is the lead spokesman for the Assembly of First Nations on treaty rights, and his comments echo demands from chiefs and protesters alike that aboriginal people must be given greater control over their traditional territory.

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‘Ghost Mine’: Digging for ghosts – by Rob Owen (The Oregonian – January 14, 2013)

 http://www.oregonlive.com/oregonian/

Click here to view the first episode: http://www.syfy.com/videos/Ghost%20Mine/vid:2618988

Syfy’s “Ghost Mine” takes two popular cable TV reality genres — dirty jobs and paranormal investigations — and mashes them together.

Instead of sending Oregonians into Alaska, as Discovery Channel does for “Gold Rush,” “Ghost Mine” brings the action to eastern Oregon as miners and ghostbusters work side by side at the Crescent Mine near Sumpter, about 30 miles outside of Baker City.

The six-episode first season was filmed in the Elkhorn Mountains this past summer. Cottage Grove’s Dick Secord Jr. (also known as “Greybeard”) was among the miners recruited. His specialty is working old mines and finding gold previous miners have left behind. He calls it “detective mining,” the kind of work he’s done with his 82-year-old father for decades. Secord said it was his first time being filmed for a TV show.

“After a day or so you don’t notice (the cameras),” he said. “You’ve got to keep an eye on the (crew) because you don’t know what’s going to fall where.” Stranger still was the presence of paranormal investigators.

“My first thought was, I couldn’t quit laughing,” Secord said of the “Ghost Mine” premise. “We’ve got hundreds of hours underground and I guess we’re pretty closed in. I’ve got my nose forward looking for one thing and there’s a lot of stuff we overlook, stuff you block out. It was very interesting. I learned a lot.”

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Striking Amplats miners agree to return to work – by Ed Stoddard (Globe and Mail – January 17, 2013)

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.

JOHANNESBURG — Reuters – Anglo American Platinum Ltd. (Amplats) miners will end an illegal walkout from Wednesday night and want talks to prevent further action against the world’s largest producer of the precious metal, a labour leader said.

Workers at three of Amplats’ South African mines went on a wildcat walkout from Tuesday’s overnight shift, hours after the company, a unit of London-listed Anglo American, announced plans to mothball shafts and cut 14,000 jobs.

“The strike was only for last night,” Amplats labour leader Evans Ramokga told Reuters. He added workers would press management to find a way to head off job cuts, which were equal to about 3 per cent of South Africa’s overall work force in the mining sector. Amplats officials were not immediately available to comment.

Amplats earlier said an unspecified number of employees at its Khomanani, Thembelani and Tumela mines, in the heart of South Africa’s platinum belt, had refused to go underground.

Only Khomanani was among the mines slated for indefinite closure or sale by the company, so the wildcat action indicates militant labour activists had persuaded miners in other shafts to join sympathy strikes.

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Provinces need to be at negotiating table with natives – by Martin Papillon (Toronto Star – January 17, 2013)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Martin Papillon is an associate professor of political studies at the University of Ottawa.

So, they met . . . and promise to talk more. Prime Minister Stephen Harper spent last Friday afternoon discussing treaty rights, land claims and economic development with Assembly of First Nations representatives.

The problem is, despite the good will of those involved, we know the impact of these high level discussions will be limited. The reason is quite simple: Real substantive change in the relationship between First Nations and Canada will have to involve provincial governments.

Provinces, not the federal government, are responsible for the management of public lands, natural resources, education, health care and many other key policy areas at the core of First Nations demands. This won’t be easy. First Nations, many of whom have signed treaties with the Crown, are reluctant to engage in formal relations with provinces.

Treaties, they argue, established a nation-to-nation relationship with the Crown in Right of Canada, not the provinces. From their standpoint, provincial engagement is a denial of their unique status and a step toward assimilation into the broader framework of Canadian citizenship.

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Mining taxes provide benefits for all of Ontario society

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’s mining industry has a collective payroll in excess of $1.7 billion annually. According to the University of Toronto’s sectoral economic impact study Mining: Dynamic and Dependable for Ontario’s Future, this would “conservatively amount to more than half a billion dollars” in personal income taxes (PIT) paid to the federal and provincial governments.

Mining companies and their employees contribute to the tax coffers of all levels of government bolstering such crucial components of societal infrastructure as health care, education and judicial systems. These taxes come from many different sources. Mining industry employees through their salaries, not only pay PIT, but also GST, gasoline taxes, Ontario’s health tax, liquor taxes, property taxes and a number of other governmental related fees.

For mining corporations themselves, let’s begin by taking a look at payroll taxes imposed by both the federal and provincial governments. In 2011, mining companies in Ontario paid $170 million in payroll taxes, up from about $140 million in 2010. This is more of a reflection of an increase in the number of industry employees than any increase in these tax rates.

For 2011, the breakdown of provincial payroll taxes shows $77.1 million going to Workplace Safety and Insurance Board premiums and $34.4 million being paid through the Employer Health Tax. Federal payroll taxes paid by Ontario mining companies in 2011 amounted to $38.6 as Canada Pension Plan premiums and $18.9 million as Employment Insurance premiums.

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Alberta should learn from Norway on managing oil – by Bruce Campbell (Toronto Star – January 17, 2013)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Bruce Campbell is executive director of the Canadian Centre for Policy Alternatives. His study, The Petro-Path Not Taken: Comparing Norway with Canada and Alberta’s Management of Petroleum Wealth, is available on the CCPA website: http://policyalternatives.ca

Momentum is building across Canada on the need to develop a sustainable national energy strategy. On this front, Canada and Alberta, its main petro-province, have much to learn from another major petroleum-producing and exporting country, Norway.

Canada and Norway are advanced industrialized countries with highly developed political, bureaucratic and economic institutions.

Norway and Alberta have similar population size, similar production profiles, and similar levels of dependence on petroleum exports and government petro-revenues. During my recent trip to Norway, I found they have taken very different paths, and with very different outcomes.

In Norway, there was from the outset, a societal consensus that the government should play the dominant role in the petroleum industry, both as owner and regulator. The Norwegian government owns 80 per cent of petroleum production, and retains roughly 85 per cent of the net petroleum revenues mainly through a 78-per-cent company tax and through direct access mechanisms.

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All change at the top – Top global mining CEOs an endangered species – by Lawrence Williams (Mineweb.com – January 17, 2013)

http://www.mineweb.com/

Nearly all the world’s top industrial and gold mining companies have been, or are in the process of, changing their CEOs. What impact will this have on future metals production?

LONDON (MINEWEB) – Rio Tinto’s Tom Albanese is the latest victim of rapidly shrinking endangered species, the major mining CEO.

It may have taken almost 6 years but, the primary reason for the departure was the mega-miner’s foray into aluminium with the takeover of Alcan in 2007, just ahead of the big commodity price collapse of 2007/2008.

Aluminium has never fully recovered from that and at last Rio has taken the decision to write off $10 billion against the fall in value of one of the world’s biggest aluminium producers.

Albanese might have survived this on its own, but the recent $3.5 billion purchase of Mozambique coal developer, Riversdale, just. two years ago, which is now being almost entirely written down in Rio’s books was just too much for the company’s board and shareholders to live with. Albanese had to go

But Albanese is not alone. Of the world’s 10 largest mining companies, eight CEOs have been pushed, resigned, or are at least rumoured to be leaving. Look at the list: Top global miner BHP is reported in the Australian press to be seeking a successor to CEO, Marius Kloppers;

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[Timmins] Hollinger house to be saved – by Benjamin Aubé (Timmins Daily Press – January 17, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Those worried about one of the finest and most accurate links to the city’s past needn’t worry. The last remaining original Hollinger house will survive the sale of the property it sits on.

More than 300 of the historic homes were built after 1913, when Noah Timmins founded the mythical Hollinger Mine. Most of the homes were located between Algonquin Boulevard and Vimy Avenue and were instantly memorable because of their bright alternating green and red tar-paper patterns.

The house overlooking downtown Timmins at the top of Shania Twain Drive is of the green variety. Mayor Tom Laughren said that while he doesn’t know where yet, the old Hollinger house behind the Shania Twain Centre and the Underground Gold Mine Tour will be moved to a new location.

Earlier this month, Timmins council declared its intention to sell the property, on which the attractions currently sit, to the Goldcorp mining company. Plans are in the works to demolish the Shania Twain Centre and absorb the mine tour site into a proposed open pit. But the mayor said that the Hollinger house means too much to the city to let go.

“I think when we were talking land and buildings, it’s more related to the Shania Twain Centre, as well as the buildings that are kind of attached to the Gold Mine Tour,” said Laughren about the property sale.

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‘Rescoped’ Clean AER project will still create local work: Vale rep – by Carol Mulligan (Sudbury Star – January 17, 2013)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Although cut in half, work on a major pollution reduction project in Sudbury is continuing, a Vale official said Wednesday.

Vale announced last week it was scaling back the cost of its Clean AER (Atmospheric Emissions Reduction) project to $1 billion. The company blamed volatile market conditions, operating cost challenges and the commissioning of the Long Harbour project in Newfoundland.

For several years, ore mined in Voisey’s Bay was processed here in Sudbury. A team at Vale has been struck to put together revised plans for Copper Cliff Smelter Complex, which will go down to one furnace from two, and to examine the impact on the company’s workforce, both during the construction phase and after.

Vale spokeswoman Angie Robson said the company doesn’t expect to go to one furnace until 2016. In the meantime, Vale has received the first of four converters and it’s being installed, said Robson. Nickel particulate emissions capture work, which would have been done regardless of whether the smelter has one furnace or two, is also continuing.

Clean AER plans relating to the single furnace are being “rescoped — some of it will be put on hold, some of it will be cancelled altogether,” said Robson.

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[Xstrata Nickel] Mine Mill votes to strike – by Jonathan Migneault (Sudbury Star – January 17, 2013)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Members of the Canadian Auto Workers Mine Mill Local 598, which represents about 900 Xstrata Nickel miners in Sudbury, voted 96% in favour of a strike mandate if a new contract is not negotiated by Jan. 31.

The union members were also 100% in favour of re-opening their personal strike funds in the event they need to subsidize strike pay. The strike vote was held Wednesday during three meetings of union members.

Richard Paquin, Local 598’s president, said the union’s intent is not to go on strike, but to negotiate a deal before the Jan. 31 deadline. He said the strike mandate will give union negotiators more bargaining power during contract talks.

“We’re optimistic we can get a new contract,” Paquin said. “We have the last three tentative agreements that we did with them, so we’re confident we can do it again.”

Xstrata Nickel’s Sudbury operations consist of the Nickel Rim South Mine, Fraser Mine, a mill and a smelter. Nickel and copper are the primary metals produced in Sudbury, but cobalt and precious metals, such as platinum, are also mined.

Paquin did not disclose details about ongoing negotiations, but did say the two sides have discussed language issues with Xstrata, but have yet to tackle monetary issues.

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Founding director [Goodman School of Mines] appointed – by Star Staff (Sudbury Star – January 17, 2013)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

A veteran mining executive has been appointed founding executive director of Laurentian University’s Goodman School of Mines.

Bruce C . Jago — most recently the president, CEO and director of Miocene Minerals Ltd. of Vancouver — was introduces as the new ED at a press conference Wednesday.

“We couldn’t be more pleased Bruce Jago will be bringing his vision to the Goodman School,” Laurentian president Dominic Giroux said in a release. “His experience in the field, in Canada and abroad, his work with First Nations, his deep roots in mining and his belief in the industry all make him an ideal choice for this important founding position.”

Jago is a professional geologist and experienced mining executive who has worked with such companies as Wallbridge Mining (vice-president, exploration), Inco Limited (applied mineralogist, exploration manager), Temex Resources (project manager, diamonds) and Harry Winston Inc. (project geologist).

” The world’s mineral resources must be developed efficiently, sustainably and equitably, so all stakeholders receive maximum benefit,” Jago said. “There is no better place in the world for this multi-disciplinary approach to mining education, and I am thrilled with the opportunity to lead this exciting venture.”

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Rio Tinto CEO pays price of calamitous acquisitions – by Clara Ferreira-Marques (Reuters.com – January 17, 2013)

http://www.reuters.com/

(Reuters) – Rio Tinto (RIO.L) sacked chief executive Tom Albanese on Thursday and revealed a $14 billion writedown in connection with his two most significant acquisitions, the Alcan aluminium group and Mozambican coal.

A heavyweight who joined the third-largest diversified miner two decades ago, Albanese will be replaced by iron ore boss Sam Walsh. Doug Ritchie, who led the acquisition of Mozambique-focused miner Riversdale, was also shown the door.

New Jersey-born, Alaska-trained Albanese had until now survived the consequences of his disastrous $38 billion acquisition of Alcan in 2007, a bruising top-of-the-market deal when Rio was under pressure from rivals to bulk up or be bought.

The deal, just two months after Albanese took the reins, turned bad as markets crumbled and aluminium prices slumped, battering Rio’s balance sheet, nearly forcing it into the arms of Chinese state-owned Chinalco and triggering a $15 billion rights issue. Rio has since seen years of losses in aluminium and taken billions in impairments – it had already taken an $8.9 billion charge on those struggling assets a year ago.

Walsh was welcomed by investors and analysts on Thursday as a safe pair of hands, but many also questioned whether a 63-year-old veteran would be a long-term solution, raising concerns over management at a group that also announced the departure of its chief financial officer last July.

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