Executives urge Canada to diversify beyond natural resources – by Richard Blackwell (Globe and Mail – June 22, 2015)

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.

It is beginning to sink in among the Canadian business elite that the economy is going to have to start weaning itself off oil.

The latest quarterly C-Suite Survey shows that almost two-thirds of Canadian corporate executives – including those in the west – feel Canada’s economic policy relies too much on Alberta and its natural resources. Fewer than one out of five say the economy currently has a good mix of industrial sectors.

As the next decade unfolds, priorities must change, they said. Information technology, renewable energy and services will rise in importance to the Canadian economy over the next 10 years, the executives said, outpacing mining, automotive and oil.

David MacDonald, chief executive officer of Softchoice Corp., a Toronto-based technology services firm, said the need for diversification is becoming a strong theme both in corporate corner offices and in Bay Street financial circles. The spate of recent initial public share offerings outside the energy sector is one sign of this, he said. “You are starting to see that even the equity markets are starting to focus on non-resource-based companies.”

Read more

It’s time to look seriously at a new approach to infrastructure – by Jack Mintz and Claude Montemarquette (Globe and Mail – June 19, 2015)

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.

Jack Mintz is director of the School of Public Policy at the University of Calgary. Claude Montemarquette is chief executive officer of CIRANO.

Canada has a major opportunity to position itself for sustained growth in the decades ahead. This opportunity is the creation of a new Northern Corridor, a multimodal infrastructure project (road, rail, pipeline, electricity generation and transmission, air and seaport facilities). It would connect Canada from sea to sea to sea and allow tidewater access to international markets for our renewable and non-renewable commodities.

We have been there before. Just as the national railway, the Trans-Canada Highway, the pipeline network and the St. Lawrence Seaway opened up trade and commerce in the 19th and 20th centuries, a Northern Corridor in this century will not only help get product to diverse markets but also further exploration and development in Canada’s north and near north.

The time is right. Into the foreseeable future, we have prospects for economic growth that would benefit from a major investment in infrastructure – up to $100-billion over 10 years. We have a historically low cost of capital. We have minimal materials and labour cost pressures.

Read more

Infrastructure corridor to Canada’s north examined in new project – by Ian Marlow (Globe and Mail – June 19, 2015)

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.

With the aim of spurring northern economic development and ending regulatory gridlock on resource projects, an ambitious research project announced on Thursday will examine the feasibility of constructing a major new infrastructure corridor spanning Canada’s north.

The project is led by the University of Calgary’s School of Public Policy and the Montreal-based Center for Interuniversity Research and Analysis of Organizations, and will look at the possibility of erecting a new network of roads, rail and pipelines, as well as investing in port infrastructure and airports.

The scholars and experts enlisted by the group will consult with the federal government and the provinces and write a number of research papers over several years, likely with a budget of around $1-million.

Jack Mintz of the School of Public Policy says Canada’s existing road and rail networks were constructed based on the premise of doing trade with the United States. But he adds that attempts to shift gears and build pipelines or infrastructure aimed at other markets have stuttered and encountered regulatory gridlock because there is no comprehensive national vision for how and where new infrastructure should be built.

Read more

Vale Said to Hire Canada’s Stikeman Elliott for Base Metals IPO – by Juan Pablo Spinetto and Scott Deveau (Bloomberg News – June 17, 2015)

http://www.bloomberg.com/

Vale SA, the world’s top nickel producer, hired Canadian law firm Stikeman Elliott LLP to help it prepare for a possible initial public offering of its base metals business, three people with knowledge of the appointment said.

The Rio de Janeiro-based company probably will choose bank advisers in the coming months as it considers the IPO, said the people, who asked not to be named because the matter is private. The sale is subject to a nickel-price recovery, they said.

In December, Vale told investors in New York that it was considering selling a minority stake in its base metals operations, the largest generator of revenue after iron ore, to boost cash. Vale forecasts increased profit and output from the operations, which is based on a 2006 takeover of Inco Ltd., after years of setbacks including strikes in Canada, design defects at Brazil plants and a New Caledonia acid spill.

Vale declined to comment on IPO advisers.

Michelle Di Rocco, a Stikeman Elliott spokeswoman, didn’t respond to e-mails and voice messages seeking comment. The Toronto-based firm also advised Vale in the Inco takeover.

Read more

Goldcorp’s $1-billion Tahoe deal suffers from weak demand – by Tim Kiladze and Reachelle Younglai (Globe and Mail – June 17, 2015), 2015)

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 billion-dollar offering of Tahoe Resources Inc. shares is suffering from weak demand, another sign that mining investors remain cautious about the industry.

Late on Monday, Goldcorp Inc. announced plans to sell its remaining 26-per-cent stake in Tahoe for $998-million by way of a bought deal. Because the underwriters, led by GMP Securities and BMO Nesbitt Burns, purchased the Tahoe shares from the miner, Goldcorp has already received the full proceeds.

The financing initially looked like a big win for the lead dealers, particularly GMP, which has seen muted deal flow in recent quarters. However, the underwriting syndicate, which is rather large and includes global banks as well as boutique mining shops, is now responsible for selling the Tahoe shares to investors, and that process is struggling, according to people familiar with the deal.

The total number of shares sold falls anywhere between 25 per cent and 50 per cent of the total size, according to these people.

Read more

MagIndustries Corp reveals evidence that subsidiaries allegedly paid major bribes in Republic of Congo – by Peter Koven (National Post – June 17, 2015)

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

Potash company MagIndustries Corp. has provided a glimpse of what appears to be a major bribery scandal involving its African subsidiaries. But there may not be any more details to come.

Mag is short of cash and needs money from its controlling shareholder, a Chinese firm called Evergreen Holding Group, to continue funding an independent investigation. Evergreen, which is alleged to be responsible for some of the bribery, said it couldn’t afford to put up any money.

That means the investigation has ground to a halt. Every Mag director who was working on it has resigned, and chief financial officer Geoff Woo was removed from his duties. Auditor Ernst & Young LLP has resigned, concluding it can’t complete its work amid the controversy.

But the allegations already presented suggest this could be one of Canada’s biggest foreign bribery scandals in years. It involves infractions, minor ones such as gifts of furniture, and major ones involving “black money” payments to government officials, and the construction of a villa for one official.

Read more

NEWS RELEASE: Kinross ranked top socially responsible mining company by Maclean’s

Toronto, Ontario, June 16, 2015 – Kinross Gold Corporation (TSX:K; NYSE:KGC) has been ranked the top mining company on the list of Top 50 Most Socially Responsible Companies in Canada developed by Maclean’s magazine in partnership with Sustainalytics, an independent sustainability investment research firm.

The ranking, which appears in the June 15th edition of Maclean’s, comes after Kinross was recognized earlier this month as one of Canada’s Best 50 Corporate Citizens for the sixth consecutive year by Corporate Knights, a media and research firm that promotes social responsibility in the private sector.

“Operating in a socially responsible and sustainable manner is about partnership,” said J. Paul Rollinson, Kinross President and CEO. “We approach that partnership on the basis of respect and a desire to contribute to the prosperity and well-being of the communities where we operate. These rankings reflect the dedication of our employees to transforming that commitment into tangible results when it comes to everything from local hiring, and engaging local suppliers to employing environmental best practices.”

Kinross strives to conduct all its operations in a manner that is safe for employees and local communities, protective of the environment and beneficial to the host countries and communities where it operates. Kinross’ key corporate responsibility accomplishments and commitments include:

Read more

Rio Tinto uranium shutdown creates demand urgency – by Kip Keen (Mineweb.com – June 15, 2015)

http://www.mineweb.com/

What braking on the Ranger 3 Deeps project means for supply.

HALIFAX, NV – The Ranger 3 Deeps uranium project in Northern Australia, mostly owned by Rio Tinto, is dead, or at least in deep sleep for now. And the shelving of Ranger 3 – with a feasibility study no longer going ahead – has important implications for uranium supply, and presumably uranium prices.

This was the conclusion of analysts David Talbot and Zain Nathoo, of Dundee Securities, in a recent note dissecting the impact of Energy Resources decision to halt progress on developing the underground project, which would have extended existing operations at the Ranger uranium mine (now processing stockpiles).

The uranium market is not that large, so decisions like these can quickly have profound effects on supply. In this case we have, as Talbot notes, what could have become – if it reached production – the world’s third largest uranium mine after McArthur River and Cigar Lake, producing some 9 million pounds uranium a year.

Talbot sees the withdrawal of Ranger 3 Deeps as creating urgency for uranium buyers to start looking at securing long term supply contracts.

Read more

NEWS RELEASE: Goldcorp Receives Top Sustainability Ranking in Canada

VANCOUVER, June 5, 2015 /CNW/ – GOLDCORP INC. (TSX: G, NYSE: GG) has been named one of Canada’s 50 Most Socially Responsible Corporations by Sustainalytics, an independent provider of environmental, social and governance (ESG) research to institutional investors and financial institutions around the world. The annual list recognizes companies with an outstanding commitment to social and environmental responsibility.

“Operating in a transparent and socially responsible manner is a commitment that is absolutely fundamental to the way we do business,” said Chuck Jeannes, Goldcorp’s President and CEO. “We’re proud of the strides we’ve made incorporating best practices into everything from land reclamation to ensuring we hire local workers and source from local suppliers where possible. We believe that every community we work with should prosper. This acknowledgment from Sustainalytics validates the work we’re doing.”

Goldcorp has invested significantly in the development of policies and programs that lead the industry in areas such as workplace safety, diversity, community development, education and support for non-profits. Among the key initiatives and accomplishments:

The Six Pillar Strategy puts people, safety and sustainability at the core of Goldcorp operations;

Goldcorp’s Sustainability Excellence Management System is a framework and set of standards that incorporate best-in-class environmental, safety, social and human rights practices;

Read more

Provinces the key to resource-revenue sharing with First Nations – by Tom Flanagan (Globe and Mail – June 15, 2015)

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.

Tom Flanagan is professor emeritus of political science at the University of Calgary and chair of the Aboriginal Futures program for the Frontier Centre for Public Policy.

Resource-revenue sharing has emerged as the next Big Idea for First Nations. Like most Big Ideas, it seems simple, but in reality is full of legal difficulties and unintended economic consequences.

Perry Bellegarde, National Chief of the Assembly of First Nations (AFN), said immediately upon being elected to that position, “If our lands and resources are to be developed, it will be done only with our fair share of the royalties, with our ownership of the resources and jobs for our people.” By “our” he meant all the natural resources of Canada, everywhere, not just on reserves or First Nation settlement lands.

This view contradicts the treaties signed in Ontario and the Prairie provinces, which provided for the surrender of all titles to land and natural resources. But according to the AFN, the treaties do not mean what they say. The AFN says aboriginal leaders actually surrendered land only “to the depth of a plow,” for the purposes of agriculture, so today’s First Nations still own all subsurface rights to minerals and oil and gas.

Read more

Commentary: Should we have quotas for women on boards in Canada? – by Catherine Wade (Northern Miner – June 5, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

It’s no secret that the mining industry is behind the curve when it comes to hiring women and appointing female board members. What will it take to get them onboard? Although the last couple of years have seen some increase in women representation at senior executive and director positions, the pace of change is glacial.

There are plenty of rationales provided, but none provide a reason why the typical important factors of improvement to financial, social and general corporate well-being and similar economic considerations are not driving the right decision-making in Canada and in particular in this important sector of the Canadian economy.

But it appears the tide might indeed turn in light of the recent disclosure rules of the Canadian Securities Administrators (CSA) and the recent federal budget — each announcing “comply or explain” policies requiring companies to implement a gender-diversity policy or publicly explain why they haven’t, as well as the increased industry conversation surrounding the importance of engaging women in mining in order to drive positive change and innovation.

Read more

[Mining Women Who Rock] Hard Hats & High Heels leaves a lasting impression (Northern Miner – June 10, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Innovative. Inspiring. Fun. That’s what the Hard Hats & High Heels fashion show and panel presentation was all about. Organized by Women Who Rock (WWR) and the Canadian Arts and Fashion Awards (CAFA), the cross-sector collaboration featured Judith & Charles’s chic pieces and Alicia Woods’ Covergalls, all modeled by women working in mining.

Shortly before the models graced the runway in front of 300 attendees at the Art Gallery of Ontario on June 8, The Northern Miner’s publisher Anthony Vaccaro moderated a panel on how women working in the field and new graduates can dress for success. Panelists included Fashion Magazine’s contributing fashion editor George Antonopoulos, Holt Renfrew’s vice president of exclusive services Lisa Tant, Kinross Gold’s senior vice president of human resources Gina Jardine, and one of PwC Canada’s partners Marelize Konig.

WWR’s president and founder Elena Mayer notes dress code is something that isn’t being discussed often but vital in corporate settings. “For many — especially taking into consideration it is a male-dominated industry— they think it is a frivolous topic. But us women are tightly connected with the way we dress and self-confidence is connected to that,” she says.

The idea for Hard Hats & High Heels arose when Mayer met CAFA’s founding director Brittney Kuczynski at the Prospectors and Developers Association of Canada (PDAC) conference in March.

Read more

BNN Reporter Andrew Bell Interviews John Gravelle, PWC Global Mining Leader (June 9, 2015)

http://www.bnn.ca/ Toronto-based Business News Network (BNN) is a Canadian cable television specialty channel. BNN airs business and financial programming and analysis. BNN reporter Andrew Bell hosts the Commodities program. From aluminum to zinc and everything in between, BNN highlights the hot world of commodities and the companies that produce them, including interviews with mineral and mining …

Read more

BNN Reporter Andrew Bell Interviews Agnico Eagle CEO Sean Boyd (June 10, 2015)

http://www.bnn.ca/ Toronto-based Business News Network (BNN) is a Canadian cable television specialty channel. BNN airs business and financial programming and analysis. BNN reporter Andrew Bell hosts the Commodities program. From aluminum to zinc and everything in between, BNN highlights the hot world of commodities and the companies that produce them, including interviews with mineral and …

Read more

Inuit orgs join chorus opposing Nunavut mining exemption (Nunatsiaq News – June 9, 2015)

http://www.nunatsiaqonline.ca/

QIA and NTI pen joint letter to federal minister supporting land use plan process

Baffinland Iron Mines Corp. has proposed to bypass some serious red tape in Nunavut’s regulatory process — but two Inuit organizations are trying to stop the mining company in its tracks.

Baffinland wants to ship 12 million metric tons of iron ore to Europe for 10 months of the year as part of its Phase 2 project proposal — something the Nunavut Planning Commission, said no to last April.

Baffinland has requested an exemption to the NPC’s regulatory process that could be granted by Bernard Valcourt, the Aboriginal Affairs and Northern Development minister.

The company wants to go straight to the Nunavut Impact Review Board for environmental impact assessment hearings instead. Nunavut Premier Peter Taptuna supported that bid in a letter to Valcourt last week.

Read more