OBITUARY: Nelson Bunker Hunt, Texas tycoon who lost billions in silver gamble, dies at 88 – by Robert D. McFadden (Globe and Mail – October 22, 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 New York Times News Service – Nelson Bunker Hunt, the down-home Texas oil tycoon who owned a thousand race horses, drove an old Cadillac and once tried to corner the world’s silver market only to lose most of his fortune when the price collapsed, died Tuesday. He was 88.

Hunt died after a long battle with cancer and dementia, according to The Dallas Morning News.

“A billion dollars ain’t what it used to be,” he said in 1980 after silver stakes he amassed with two brothers, Herbert and Lamar, fell to $10.80 from $50.35 an ounce. In barely two months, their holdings and contracts for purchases – corralling a third to half the world’s deliverable silver – had plunged from a $7-billion value in January to a $1.7-billion loss in March.

With the Hunts unable to cover enormous margin calls, the debacle endangered financial markets and brokerage houses, forcing federal regulators and the nation’s banks to step in with a $1-billion line of credit, a bailout that saved the system from a stampede and the Hunts from an immediate meltdown.

But for Bunker Hunt, who used his middle name, and his brothers – scions of one of the world’s richest clans – the boom and bust led to years of lawsuits, civil charges, fines, damage claims and bankruptcy proceedings that gobbled up vast holdings in real estate, oil, gas, cattle, coal, thoroughbred stables and other assets. Still, they managed to salvage millions and were not subjected to criminal charges.

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Hopes for Ontario’s Ring of Fire doused as mining companies grow wary – by Rachelle Younglai (Globe and Mail – October 22, 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.

Ontario’s “Ring of Fire” mineral belt was supposed to be a $60-billion natural resources treasure trove that would bring employment and economic prosperity to a remote part of the province’s north. It hasn’t worked out that way.

The project’s key player has given up, leaving the future of the deposit in question and hurting prospects that it will ever reach the lofty expectations of politicians.

Today, not much is happening in the Ring, a 5,000-square-kilometre crescent of mostly chromite in the boggy James Bay lowlands, 500 kilometres north of Thunder Bay.

The region was said to be so rich in resources that it would rival Sudbury’s nickel basin and Alberta’s oil sands. Instead, the area remains undeveloped, a victim of the global slump in commodity prices and bureaucratic red tape.

“I’m disappointed that it hasn’t advanced more. It’s a long time, seven years after discovery,” said Neil Novak, the geologist who made the first discovery in the Ring and is now exploring for other metals as the chief executive officer of Black Widow Resources Inc.

In addition to the complete lack of infrastructure – there are no roads or power in the area – there is no real plan on how to mine the chromite, which is used to harden steel.

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