Investors dismayed as new Barrick chairman talks diversification – by Euan Rocha (Reuters U.K. – December 6, 2013)

http://uk.reuters.com/

(Reuters) – Barrick Gold Corp investors have taken in stride news that the world’s largest gold producer may consider hedging its gold exposure, but they are roundly panning its plan for more diversification into other commodities.

John Thornton, who was confirmed after markets closed on Wednesday as Barrick’s next chairman, told reporters he would consider revisiting a hedging strategy for selling the company’s output because of the volatility of gold prices.

He also said he thinks Barrick, which already has a copper sideline, is well placed to look more at copper and perhaps at other commodities, once it puts its recent troubles behind it.

That pronouncement stung some Barrick shareholders, many of whom are invested in the Toronto-based miner only because they see a bright future for the gold price.

“It’s like saying to the market, once I recover from all the bad decisions I have made and paid back the mountains of debt I incurred doing it, I am going to go out and do it all over again, but not in the commodity I’m in right now,” said John O’Connell, the head of wealth management firm Davis Rea Ltd.

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Sudbury entrepreneurs recognized for their contributions – by Jonathan Migneault (Sudbury Northern Life – December 06, 2013)

http://www.northernlife.ca/

Darryl Lake never thought of himself as an entrepreneur, but in the early 1990s, his career as an academic took an unexpected turn with his effort to end the Sudbury brain drain of young talented people.

In 1995, Lake left his position as Cambrian College’s dean of health sciences, trades and technology, and started the Northern Centre for Advanced Technology (NORCAT).

The move was a big gamble. Lake left a comfortable job to start a non-profit organization at a time many others were going under. “The economy was a disaster,” Lake said about that period. “There were no jobs for young people.”

To establish a stable base of revenue for NORCAT, Lake brought over the Occupational Health and Safety Resource Centre, and the Ontario Centre for Ground Control Training, he had started at Cambrian. NORCAT soon became one of the world’s leading occupational health and safety training centres. With that base, NORCAT was able to start mentorship programs for young entrepreneurs and an intern program that had a 100-per-cent conversion rate to full-time jobs for interns who completed it.

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Looking back at Quebec’s previous attempt to modify its mining legislation – by Julius Melnitzer (National Post – December 6, 2013)

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

A Quebec government has just announced the fourth attempt in recent years to amend the province’s mining legislation. The most recent attempt was Bill 43. The package of mining act amendments introduced by the minority government of Parti Québécois premier Pauline Marois went down to defeat in mid-October after it failed to win the support of the two main opposition parties.

“The failure of Bill 43 is a bittersweet victory for miners, and the industry is hoping that we will be able to move on soon with new legislation,” says Frank Mariage, a mining lawyer in Fasken Martineau Dumoulin LLP’s Montreal office.

The proposed amendments would have tightened environmental rules for miners, forced them to do more processing in the province, granted municipalities a veto on mining project approvals, and given the province’s natural resources minister the right to terminate mining leases at any time.

Mining companies saw the legislation as skewed against them. “What we need is a law that balances the needs and interests of the industry with the requests of the population regarding the environment and social acceptability,” says Jean-Philippe Buteau, a mining lawyer in Norton Rose Fulbright Canada LLP’s Quebec City office.

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Friedland’s fireside remarks potentially inflammatory to SA platinum mining – by Henry Lazenby (MiningWeekly.com – December 6, 2013)

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Legendary mining entrepreneur and self-made billionaire Robert Friedland ran the risk of inflaming tension in South Africa at a very sensitive time for platinum miners with his recent “fireside” remarks that underground platinum miners in the country were underpaid, market analysts at SP Angel, in London, said on Friday.

Political leaders and mining companies had worked hard to restore peace and jobs to the platinum sector after the Marikana incident, which was whipped up by competition between competing mining unions the Association of Mineworkers and Construction Union (AMCU) and National Union of Mineworkers (NUM). The Marikana miners’ strike or Lonmin strike was a wildcat strike at a mine owned by Lonmin in the Marikana area, close to Rustenburg, South Africa, on August 16, 2012.

The event garnered international attention following a series of violent incidents between the South African Police Service, Lonmin security, the leadership of AMCU and NUM and strikers themselves, which had resulted in the deaths of 44 people, the majority of whom were striking mineworkers. At least 78 workers were also injured.

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A worthy fight for First Nations: Choosing to become partners in Canada’s energy vision – by Claudia Cattaneo (National Post – December 6, 2013)

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

With the release Thursday of Douglas Eyford’s roadmap to address aboriginal concerns over energy projects in Alberta and British Columbia, First Nations have come to a fork in the road.

They can choose the way opened wide by Canada’s Prime Minister, to whom Mr. Eyford reports, along with provincial governments, industry and scores of Canadians, and become partners in Canada’s great energy vision.

Or they can continue to oppose, in the hope that preserving what they have offers greater upside, and considering that 300,000 of their youths will be entering the workforce over the next 10 years.

They should also consider that Canada is more motivated than ever today to resolving First Nations grievances, and that such enthusiasm is unlikely to last.

Industry, which needs to build oil pipelines and liquefied natural gas plants to open new markets for oil and gas in Asia, has changed its ways to ensure First Nations are engaged and prepared to benefit.

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PotashCorp defends job cuts in face criticism from Wall – by Jennifer Graham (The Canadian Press/CTV News – December 6, 2013)

http://saskatoon.ctvnews.ca/

Premier Brad Wall has sent a letter to Potash Corp. of Saskatchewan executives blasting them for cutting jobs while preserving the dividend paid to shareholders.

The Saskatoon-based company said Tuesday that it is laying off 1,045 people to reduce its workforce by about 18 per cent, with the biggest hits in its home province of Saskatchewan.

Wall is upset because PotashCorp CEO Bill Doyle said the fertilizer company’s dividend is “sacrosanct” and won’t be touched.

“This can only mean that the interests of shareholders were protected while the interests of employees here in Saskatchewan and elsewhere were sacrificed,” Wall wrote in the letter dated Dec. 4.

About 440 people will lose their jobs in Saskatchewan. Most of those positions are at PotashCorp’s Lanigan division, where one of two mills is to suspend production by the end of the year, and at its Cory division where production will be reduced. Cuts will also be made at the Saskatoon headquarters.

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My Take on Snow Lake: Hard times on display at the Manitoba Mining and Minerals Convention – by Marc Jackon (Thompson Citizen – December 6, 2013)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000. 

From Nov. 20-22, mining people from around the province, and from across the land, gathered in Winnipeg for the 45th Annual Manitoba Mining and Minerals Convention. Included among them were mining experts, geoscientists, educators, community and aboriginal leaders, as well as resource and industry specialists, a number of them with a connection to the area.

Literature produced for the event advised that the convention highlights the value of minerals and petroleum to Manitoba’s economy and provides insight into the latest developments, opportunities and challenges facing the exploration and mining sector. Additionally, it provides an excellent opportunity for attendees to work together in order to advance Manitoba’s rich mineral potential and geologically diverse land base.

The convention also features a trade show, property showcase and presentations on recent geological findings and exploration projects from around the province. On Nov. 22 the public was invited to participate in various activities including digging for fossils with the Canadian Fossil Discovery Centre in Morden, panning for gold with champion panner Yukon Dan, and visiting other mineral displays and activities with the Mineral Society of Manitoba.

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Mega agreement signed for northern Manitoba gold mine – by Martin Cash (Winnipeg Free Press – December 6, 2013)

http://www.winnipegfreepress.com/

Contract could inject $40M into Monument Bay project

A mineral exploration company trying to develop a gold reserve in northern Manitoba it believes could become “Canada’s next great gold mine” has landed financing that could see it through the development process.

Mega Precious Metals Inc. has signed a deal with Australian-based Pacific Road Resources Fund that could see the mining-focused fund invest as much as $40 million in the Thunder Bay-based exploration company.

The project in question is a gold resource called Monument Bay, located about 60 kilometres north of Red Sucker Lake, which is about 700 kilometres northeast of Winnipeg. The company’s exploration work to date estimates the resource could contain 3.6 million ounces of gold.

In February, Mega announced there may also be tungsten deposits. Tungsten is a rare metal with strategic value. Much of the world’s current supply comes from China. Glen Kuntz, CEO of Mega, said the arrangement with Pacific Road is the kind of deal junior mining companies dream about.

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From pay package to history of losses, Barrick chair John Thornton has a lot to overcome – by Peter Koven (National Post – December 6, 2013)

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

John Thornton admits it: building relationships with Barrick Gold Corp.’s shareholders did not go as smoothly as he planned this year. “I can think of better ways to start,” he quipped in a wide-ranging interview at the Toronto-based miner’s head office on Thursday.

But controversies over pay are the least of his problems now. As Barrick’s next chairman, he becomes leader of a company with falling production, excess debt, a stock price near a 20-year-low, and retained earnings of minus US$4.7-billion to show for its 30-year history.

Turning around this company will be a massive feat, especially given that the falling gold price is putting serious strain on Barrick’s cash flow.

Mr. Thornton, like his predecessor Peter Munk, believes that forming Asian partnerships is key to overcoming Barrick’s challenges and ensuring its future growth. But even he acknowledged that potential partners will have reservations about Barrick after seeing how badly the company screwed up the now-idled Pascua-Lama project.

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Ring of Fire a decade away – by Jamie Smith (tbnewswatch.com – December 5, 2013)

http://www.tbnewswatch.com/

It will be at least a decade before development in the Ring of Fire begins, predicts one strategist.

An expert on First Nations, government and corporate relations in resource development, Bill Gallagher said nothing is going to happen in the Ring of Fire until there is major progress from the province when it comes to First Nations support.

Author of the recently published “Resource Rulers” Gallagher, who is also a lawyer, highlights 150 court cases in Canada that have been a battleground over resource development and First Nations are the victor. While other provinces have caught on to the notion that nothing will happen without the backing of First Nations, Ontario is stuck in a time warp.

“The Ontario public has to get informed and get up to speed as to how much ground this province has lost vis-a-vis other provinces in dealing in a sophisticated and strategic manner in dealing with the rise of native empowerment,” he said Thursday morning after a speech during the Centre of Excellence for Sustainable Mining and Exploration conference at Lakehead University.

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Glasenberg Raises Glencore’s Bet on Coal as BHP Pauses: Energy – by Thomas Biesheuvel & Jesse Riseborough (Bloomberg News – December 5, 2013)

http://www.bloomberg.com/

Ivan Glasenberg, the billionaire running commodities supplier Glencore Xstrata Plc, is investing more in thermal coal than his three closest competitors combined even as investors warn the fuel’s outlook is deteriorating.

The former coal trader is betting on prices rebounding from a three-year drop. The Swiss company, in which he owns 8 percent, is spending $4.75 billion, largely on projects inherited in the takeover of Xstrata Plc, to boost output 21 percent through 2016. At the same time, BHP Billiton Ltd., the biggest mining company, Rio Tinto Group and Anglo American Plc, have stalled new investments, sold mines or halted others.

Glasenberg, 56, is deepening his bet on coal as appetite wanes among some investors for companies that extract fuels blamed for making the biggest contribution to climate change. Share prices of the four largest single-commodity thermal-coal producers have tumbled an average 25 percent in the past 12 months as an explosion in lower-cost supplies of U.S. shale gas compounds a weaker outlook for exports to China.

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Demonized oil sands industry risks death sentence if it climbs into bed with its fiercest detractors – by Peter Foster (National Post – December 6, 2013)

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

Does oil sands industry really want to sit down and negotiate its own death sentence?

Machiavelli is credited with the insight that you should keep your friends close but your enemies closer. However, the suggestion that the oil sands industry might deal with its public perception problems by climbing into bed with its fiercest detractors is, depending on your perspective, either blatantly self-interested or suicidal.

The industry has been the subject of a global campaign of demonization, disinformation and intimidation, executed by a wide range of interlinked environmental non-governmental organizations, ENGOs. That campaign has been based on false or grossly exaggerated allegations of toxicity, sickness and environmental destruction, in particular regarding the significance of the oil sands for global warming. And it has been highly effective.

Its greatest success has been in pressuring President Obama to hold up approval for the Keystone XL pipeline. It has also stirred alarm about the construction of new – or “looped” – pipelines through B.C. to the West Coast, using genuine aboriginal discontents about treaty issues to make them partners in opposing development.

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Harper, Wynne agree Ring of Fire funding must be of ‘public benefit’ – by Susana Mas (CBC News – December 6, 2013)

http://www.cbc.ca/news/politics

NDP motion on Ring of Fire rejected as Ontario premier meets prime minister

Prime Minister Stephen Harper had what his office is describing as a “productive” and “constructive” meeting with Ontario Premier Kathleen Wynne on Thursday in Ottawa.

The two packed a number of issues into a half-hour meeting including the controversial Canada Job Grant program, infrastructure funding, pension reform, and the Ring of Fire — a mining project in northern Ontario, worth up to $60 billion.

“On the Ring of Fire, they both agreed that the two levels of government will continue to collaborate on this important development,” Jason MacDonald, the director of communications for the prime minister said in an email to CBC News late Thursday night.

“They also agreed that any investments by either level of government must represent a public benefit, including for First Nations.”

Wynne downplayed expectations Thursday telling reporters an hour before her meeting with Harper that she wasn’t going in with specific demands today but that she was looking for meaningful engagement.

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Gravelle seeks Ring of Fire support from feds – by Ron Grech (Timmins Daily Press – December 6, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The province wants Ottawa to share the cost of installing transportation infrastructure within the Ring of Fire.

Northern Development and Mines Minister Michael Gravelle, who was in Timmins on Thursday along with Natural Resources Minister David Orazietti, outlined why the province feels the federal government should contribute to the project.

“We are talking about a major resource development, $60 billion in mineral potential, in a part of the province that has never seen development before,” said Gravelle.

“In terms of economic development, and opportunity for job creation, the Ring of Fire project is certainly on a scale that more than warrants the federal government’s matching funds. I’d like to think that is the direction we will be going in.” Both Gravelle and Orazietti were speaking at a Timmins Chamber of Commerce luncheon held at the Porcupine Dante Club.

In the meantime, Ontario Premier Kathleen Wynne was in Ottawa on Thursday to meet with Prime Minister Stephen Harper to discuss the federal government’s involvement in the Ring of Fire.

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Man named to chair review into mine safety – by Carol Mulligan (Sudbury Star – December 6, 2013)

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

A man whose position was created after an expert advisory panel reviewed the Christmas Eve 2009 deaths of four men working on scaffolds in Toronto will chair the review into mine safety that will be conducted in Ontario in 2014.

One of the recommendations of the 2010 report into the scaffolding tragedy was that a chief prevention officer, reporting to Ontario’s Labour minister, be appointed.

George Gritziotis, founding executive director of the Construction Sector Council and a former strategy analyst at Investment Canada, was named to that job as part of an overhaul of Ontario’s occupational health and safety system.

Chris Hodgson, former minister of Northern Development and Mines in the Progressive Conservative government of Mike Harris, said the review into the deaths of the four men was led by former cabinet secretary Tony Dean.

It produced 46 recommendations and an 80-page report, which Hodgson said was supported by organized by both labour and management.

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