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Day: April 17, 2014

Proxy adviser backs Augusta poison pill as hostile bid looms – by Bertrand Marotte (Globe and Mail – April 17, 2014)

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.

Augusta Resource Corp. says a leading independent proxy advisory firm is recommending that shareholders vote for the continuation of the company’s defence plan in the face of the hostile takeover offer by HudBay Minerals Inc.

Vancouver-based Augusta said on Thursday that San Francisco-based Glass, Lewis & Co. backs the mining company’s stance that the shareholder rights plan should continue. HudBay, which is after Augusta’s rich copper-molybdenum project near Tucson, Ariz., is seeking a decision from Canadian securities regulators that would get rid of Augusta’s so-called poison pill.

A poison pill — or shareholders’ defence — allows non-HudBay shareholders to buy additional shares at a discount, making it prohibitively expensive for HudBay to acquire the rest of Augusta it does not already own. Toronto-based HudBay owns about 16 per cent of Augusta. Augusta shareholders are to vote on the poison pill on May 2.

“Our intention is to put the power of this important decision in the hands of Augusta shareholders by giving them the opportunity to vote on the rights plan on May 2, three days before the expiry of HudBay’s bid,” said Augusta president and chief executive officer Gil Clausen.

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Union raids the subject of author Mick Lowe’s 5th book – by Heidi Ulrichsen (Sudbury Northern Life – April 16, 2014)

 

http://www.northernlife.ca/

Mick Lowe said his disability was actually a benefit when it came to writing his soon-to-be published novel, “The Raids.” The book is set in 1963, during a particularly violent time in Sudbury’s history — the Steelworkers’ raids on the then-powerful Mine Mill union.

“The Raids,” (Baraka Books, $20), is due to be officially released May 15. The book will be available at Chapters and online at Amazon. An official launch and book signing will be held starting at 2 p.m. May 25 at the Steelworkers Hall.

Lowe, 67, who has penned four other books, said because he’s in a wheelchair and lives at Pioneer Manor after a 2008 stroke paralysed the left side of his body, he wasn’t able to do the meticulous research he put into his other works.

While he had a working knowledge of the union raids through his previous work as a journalist, Lowe said he was forced to use his imagination because of his physical limitations. At one point, he was writing about a Mine Mill meeting, and his first inclination was to go to the library and look up the minutes of the actual meeting.

“But I can’t do that because I’m disabled,” said Lowe, a former Northern Life managing editor and columnist.

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Osisko Mining CEO Sean Roosen lashes out at Canada’s ‘predatory’ takeover process – by Nicolas Van Praet and Peter Koven (National Post – April 17, 2014)

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

MONTREAL/TORONTO – Sean Roosen never wanted to sell Osisko Mining Corp. The chief executive of Quebec’s biggest home-grown miner has said repeatedly that Goldcorp Inc. ambushed him with a hostile offer before he even got the chance to prove what kind of money his main production asset, the Malartic gold mine, could make for investors.

So now that he’s done his duty in perhaps extracting the most he can for Osisko with a friendly $3.9-billion tag-team offer from Yamana Gold Inc. and Agnico-Eagle Mines Ltd., he’s lashing out at the Canadian system that led to this outcome in the first place.

“You’ve got a regulatory regime here that is set for predatory behaviour,” Mr. Roosen said in an interview Wednesday. He said rules requiring TSX-listed bidders to win approval from their own shareholders for an acquisition being paid for with a new share issue equal to more than 25% of the current float favours larger companies. “All the bigger companies basically have free range to rape and pillage.”

The mining executive certainly isn’t the first person to criticize Canada’s bidder-friendly takeover rules. A veritable hoard of high-profile people have pointed out the shortcomings of the regulatory regime, which makes it nearly certain that a company will get sold once it is put into play. But few have said it in terms quite so stark.

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Osisko Mining deal leaves Vancouver’s Goldcorp out in the cold (updated) – by Craig Wong (Vancouver Sun – April 16, 2014)

http://www.vancouversun.com/index.html

Friendly deal valued at $3.9 billion will see the gold miner acquired by Yamana Gold and Agnico Eagle Mines Ltd. Osisko Mining Corp. (TSX:OSK) announced a new friendly deal Wednesday valued at $3.9 billion that will see the gold miner acquired by Yamana Gold and Agnico Eagle Mines Ltd.

The offer for the company and its Canadian Malartic mine in Quebec tops a rival hostile bid by Goldcorp (TSX:G) that was valued at $3.6 billion or $7.65 per share.

The deal will also see Osisko shareholders receive shares in a new company that will receive a royalty on the production from Canadian Malartic and the company’s existing exploration properties as well as hold $155 million cash and the company’s Guerrero exploration project in Mexico.

Osisko president and chief executive Sean Roosen noted the first hostile offer by Goldcorp valued his company at about $2.6 billion in January. “I think that we’ve delivered a significant amount of value to shareholders,” he told a conference call with investors.

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I want to be a geoscientist. What will my salary be? – by Brenda Bouw (Globe and Mail – April 16, 2014)

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.

Job: Geoscientist – Salary: Depending on education, experience and location, people in this profession can start off earning $35,000 to $75,000 a year, according to Earth Sciences Canada. With more than five years of experience, the annual salary can grow to between $80,000 and more than $300,000.

Education: To gain the professional “P.Geo” status, you need a bachelor’s degree in earth science or a related field, followed by 48 months of experience working as a geoscientist. Geoscientists also need to pass an ethics exam.

The role: Geoscientist is a new term the industry uses to cover geologists, geophysicists, geochemists and environmental geoscientists, according to Oliver Bonham, chief executive officer of Geoscientists Canada, a national umbrella group comprising the industry’s professional associations and regulators.

He says geoscientists help society meet its needs for natural resources. “That includes all types of metals, minerals and earth materials, sources of energy, even fresh water and fertile soil,” Mr. Bonham said.

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Muskowekwan First Nation votes to approve on-reserve potash project – by Henry Lazenby (MiningWeekly.com – April 16, 2014)

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

TORONTO (miningweekly.com) – Project developer Encanto Potash on Wednesday reported that the Muskowekwan First Nation (MFN) had voted with a strong majority in favour of continuing to develop the first producing potash mine on First Nation land – the MFN’s reserve, located 100 km north-east of Regina, Saskatchewan.

The two project partners said that six ballots for the MFN surface designation vote had passed, including those allowing Encanto to build and operate a potash solution mine on both reserve land and pre-reserve land and to lease certain areas in support of the mine.

The project is being undertaken by First Potash Ventures, a partnership between Encanto Potash and Muskowekwan Resources, which is owned by the MFN. The project is expected to provide economic opportunities for the MFN, as well as the surrounding area, by providing training and employment opportunities during the construction and operation of the mine.

“Once again, my people have demonstrated that we are interested and greatly in favour of seeing an operating potash solution mine on our land and enjoying the associated benefits through educational advancements, increased employment opportunities and self-sourced revenue generation,” MFN chief Reginald Bellerose said.

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Even in this market, miners see assets worth overpaying for – by Brian Milner (Globe and Mail – April 17, 2014)

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.

The bargain-hunters scouring the mining world for dirt-cheap acquisitions must be getting frustrated. The battle for Osisko Mining Corp. in Quebec and a Chinese company’s full-price purchase of a Peruvian copper mine show that softer demand, weaker prices and the pounding many miners have taken in the stock market aren’t pushing producers to part with valuable core assets for chump change.

Miners’ willingness to hang tough suggests the battered sector has reached a bottom. Producers are willing to wait and for good reason – there is an increased willingness among potential buyers to pay top dollar for high-quality assets.

In the Osisko case, Yamana Gold Inc. and Agnico Eagle Gold Inc. have reached a friendly deal to buy the Montreal-based gold miner for $3.9-billion and divvy up its assets. The stock and cash offer works out to $8.15 a share, 11 per cent above a revised bid from Goldcorp Inc.

Goldcorp sweetened its original hostile offer by about $1-billion to $3.6-billion when it became apparent that Osisko wasn’t about to be low-balled on its prized Canadian Malartic mine in Quebec.

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Harper government fires back at Jimmy Carter Keystone stance – by Alexander Panetta (Canadian Press/Globe and Mail – April 16, 2014)

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.

WASHINGTON — The Keystone XL pipeline issue has created a tiff between a former U.S. president and the Canadian government.

The Prime Minister’s Office reacted swiftly Wednesday to a letter signed by Nobel laureates, including Jimmy Carter, urging President Barack Obama to reject the pipeline.

Carter is the first former president to come out against Keystone XL. Prime Minister Stephen Harper’s office responded with a warning: Remember 1979.

It was a reference to the dip in oil supply which followed the Iranian revolution and touched off a global panic. Prices spiked and long lines formed at gas stations, helping destabilize Carter’s one-term presidency.

“Mr. Carter knows from his time as president during the 1979 energy crisis there are benefits to having access to oil from stable, secure partners like Canada,” the PMO said.

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Vale required to produce safety plans – by Carol Mulligan (Sudbury Star – April 16, 2014)

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

A Ministry of Labour inspector is requiring Vale Ltd. to produce safety plans for the front-line supervisor, superintendent and managers for the area in which millright Paul Rochette was working when he was killed April 6 at the Copper Cliff Smelter Complex.

The requirement to produce the documents by April 25 is part of a phase of examining documentation in the Ministry of Labour’s investigation of the death of the 36-year-old father of two in the crushing and casting plant at the complex. Rochette suffered severe head trauma and another millwright, a 28-year-old man, suffered a concussion and facial lacerations in the accident.

It is believed that a large piston or moil, that crushes nickel-copper ingots at high pressure moving along a conveyor belt, broke off and ended up in the system and may have struck the men. The company and the men’s union, United Steelworkers Local 6500, are conducting a joint investigation into the accident.

The Ministry of Labour and Greater Sudbury Police Service are also investigating. The Labour ministry has control of the scene at this point in the investigation.

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Historic strike recalled – by Kevin McSheffrey (Elliot Lake Standard – April 16, 2014)

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

ELLIOT LAKE — It was a clear, but cold morning when two bus loads of United Steelworkers stopped at the intersection of Highway 108 and what was once the turnoff to Denison Mines, about 15 kilometres north of Elliot Lake on Wednesday.

This was the second day of a three-day forum that began in Sudbury and will end here Thursday. As many as 90 people from across the country and parts of the United States took part in the forum to remember and commemorate an event that took place in Elliot Lake four decades ago.

The visit to Elliot Lake was to mark the 40th anniversary of the Denison Mines wildcat strike that started on April 18, 1974, and lasted three weeks.

The wildcat strike was to protest the deplorable and unsafe working conditions. One of the biggest issues was ventilation. Underground mineworkers were breathing in dust contaminated with radon daughters, resulting in many getting silicosis and lung cancer, and ultimately dying.

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Harold Hamm: The Billionaire Oilman Fueling America’s Recovery – by Christopher Helman (Forbes Magazine – April 16, 2014)

 http://www.forbes.com/

This story appears in the May 5, 2014 issue of Forbes.

Harold Hamm has transformed the U.S. oil industry like no one since John D. Rockefeller, while helping to keep domestic prices low — and making himself a $17 billion fortune. The great domestic energy boom, he says, is just beginning.

Two Scotches in, with seats on the floor of Oklahoma City’s Chesapeake Energy CHK +0.96% Arena, Harold Hamm is feeling good. And why not? His hometown Thunder is spending the evening whupping the Philadelphia 76ers. Earlier Hamm announced big bonuses for Continental Resources CLR +1.99% employees, courtesy of record oil production. And a judge’s ruling, revealed that morning, in Hamm’s divorce case suggested the energy tycoon would keep the Continental shares he already owned when he married soon-to-be-ex Sue Ann Hamm 26 years ago. With that chunk of stock, encompassing about $16 billion out of his $16.9 billion fortune, Hamm owns 70% of Continental.

As every wildcatter knows, such is life in the oil patch when you’re on a hot streak. And Hamm’s on perhaps the most epic one in domestic energy history, perhaps save for John D. Rockefeller’s. No one, aside from kings, dictators and post-Soviet kleptocrats, personally owns more black gold–Continental has proved reserves of 1 billion barrels, mostly locked underneath North Dakota. Hamm took the company public in 2007–and shares are up 600% since, as the revolution in horizontal drilling has given America a cheap energy booster shot, fueling factories, keeping a lid on gas prices and adding millions of jobs.

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Why the Great Wash U Sit-in Against Peabody Coal Matters: Which Side Are You on? – by Jeff Biggers (Huffington Post – April 16, 2014)

http://www.huffingtonpost.ca/

Entering its second week, the inspiring Washington University sit-in against Peabody Energy has already gone beyond its goals to cut school ties with the St. Louis-based coal giant, and forced the rest of the nation to ask themselves an urgent question in an age of climate change and reckless strip mining ruin: Which side are you on?

Will other schools, alumni groups — and investors in Peabody Energy — follow the lead of the Washington U. students?

Case in point: Tonight in my native Saline County in southern Illinois, the county commissioners genuflected to short-term Peabody coal dollars over the “negative impact on about a dozen homeowners who live near the site of the proposed mine,” according to one cynical commissioner, and voted to allow the company to close off Rocky Branch road for a proposed strip mine expansion, despite the lack of EPA permits, and documented evidence of flooding, blasting and emergency access problems.

Facing financial ruin, grave heath problems and displacement, the Rocky Branch residents will fight on, thanks to the Wash U. students, and continue to tell the truth: We all live in the coalfields now, in this age of climate change, and it is no longer acceptable to allow anyone to be collateral damage to a disastrous energy policy.

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Mining tax: it’s time for all Australians to realise they are being ripped off – by Luke Mansillo (The Guardian – February 19, 2014)

http://www.theguardian.com/uk

The mining boom has resulted in a huge extraction of wealth. Norway has been turning its resource bounty into a fund for future generations, while Australia is dangerously careless with it

Australians are routinely being told that hefty mining taxes would hinder the country’s largest exports of coal and iron ore. This concern about the competitiveness of the industry has been the basis of the Abbott government’s drive to abolish the mining tax. However, it is hard to reconcile this view (key player Gina Rinehart, for example, claimed that Australia was “too expensive to do export orientated business”) with news this week that mining giant BHP Billiton recently increased its profits by 83% to US$8.1bn.

Within the last year alone, there has been a 20% increase in BHP Billiton’s Western Australian iron ore exports. In spite of this enormous growth, the company only paid US$29m in minerals resource rent tax (MRRT). As it stands, the tax is in no way making BHP uncompetitive – its bumper profits are a testament to that.

While mining companies such as BHP Billiton are making a motza, we need to be reminded that 83% of Australian mining operations are foreign owned. The net income balance – the difference between the profits of Australian investing overseas, and profits made by foreign companies in Australia – has suffered as a result of mining companies extracting greater amounts of Australian mineral wealth for foreign owners.

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