...Mining has been essential to the growth of the Australian economy as well as satisfying the demand of society by supplying raw metals and minerals for production of goods for use in society. Over the past three centuries, Australia has experienced mining booms across cities and towns, as well as significant developments in mining methods which has made Australia an efficient mining country. Ballarat, derived from "Balla" "Arat", Aboriginal meaning for "camping place", is one city of which has seen this mining outbreak in early years, located near the Yarrowee River and among the lower western Great Dividing Range, Victoria's largest inland city experienced one of the great mining booms of Australia. Ballarat was one of the first early cities to be exposed...
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...! ! ! Group Project: Ethics of the Mining Industry Group 4 Business Ethics 04-71-300-02 Professor Singh Date submitted: March 19th, 2014 ! ! ! ! ! ! ! ! ! ! ! ! ! !1 Executive Summary This report assesses the global mining industry from a business perspective. Firstly, it begins with the history of mining across the globe and the structure of the mining industry. It then analyzes the impacts of the mining industry globally. Lastly, it addresses the issues surrounding our land—the Canadian mining industry. The research shows that the history of mining goes as far as the Neolithic era. The mining value chain presented demonstrates the formation of a mining company to the extraction of the natural resources. Further investigation shows that the mining structure is an oligopoly. Methods of analysis include an environmental analysis using PEST and a stakeholder map, which focus on the performance of a world-renowned mining company TransAlta. The finding is that management’s role is to have efficiency and productivity while maintaining ethical practices. Ethical theories are then used to look at the social, environmental and economical impacts of the Canadian industry. It is concluded that each ethical theory presents a favorable solution to each impact. Social corporate responsibility is evaluated in the last ten years in Canada and around the globe. It is found that the industry has become one of the most safety-conscious industries within Canada. The companies still...
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...copyright holder. CMA CANADA PROFESSIONAL PROGRAMS February 2012 Board Report Brightstar Mining Company Any resemblance between the names of the fictitious players in the following scenario and those of actual persons, corporations or products is purely coincidental. Please note: In order to remain consistent with industry standards, the standard units of measure used in the case are stated in imperial units. Within this document, all imperial measures (distance, area, volume and weight) have been rounded. Brightstar Mining Company 2012 Board Report CMA Canada 1 BRIGHTSTAR MINING COMPANY Organizational Background Brightstar Mining Company (BMC) is a publicly traded, Canadian company that is engaged in the development and operation of mineral properties in North America. Currently, BMC operates two copper mines and one zinc mine, extracts and mills the ore and sells it to customers in concentrate form. The company was founded 15 years ago by Charles Stuart and is listed on the Toronto Stock Exchange. Stuart worked for many years in a large, diversified mining company as a geologist specializing in copper exploration. His position required him to spend a significant amount of time travelling to mining sites all over the world, and this began to have an adverse affect on his family life. In order to spend more quality time with his family, he decided to establish his own mining company. In 1997, he founded BMC. As President and CEO, Stuart began operations with...
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...Summaries of Dicore International Case Study * Dicore, a leading global drilling services provider in mining and water projects, was one of the largest drilling service providers in the world, with a presence in 27 countries across five different continents. * The company’s expected equipment utilisation rates were sub-par, but senior vice president was optimistic about expansion in southwestern US. * Senior vice president had to outline the expansion strategy with risks and action to tackle risks. The Mining Industry * The profitability is highly dependent on considerably fluctuating mineral price. The macroeconomic (supply and demand) trends had impact on mining industry. The decisions of extend of investment rely on prices, which even lead to stopping mining certain materials. * In the US, gold (54% of spending) and copper (31% of spending) are more in exploration market. In Canada, gold (49%) and copper (2nd driver). * In 2012, total nonferrous exploration spending increased to $21.5b, when $17.25b increase in 2011. * Industry condition in 2013 was less favourable. Mining industry profits in 2012 fell to $68b (49% drop), leading to decreased industry-wide spending in 2013. Annual capital expenditure across the top 40 mining companies was projected to be $110b in 2013 (21% drop from 2012), resulting from fewer profits. Stock price dropped 20% in season 1 of 2013, when overall stock condition was very good that S&P 500 was up over 14%...
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...Captain Jack Sparrow in Pirates of the Caribbean: "True enough, this compass does not point north." "...Where does it point?" "It points to the thing you want most in this world.” “If everyone is thinking alike, then no one is thinking.” Saskatchewan as a Player in the Global Resources Market in 2014 Jean-Pierre Colin Capital Markets Strategies JPColin@Sympatico.Ca Mobile: 416-573-4300 2 Synopsis Jean-Pierre Colin draws from his 34 years of experience and wisdom as an investment banker and mining executive to outline criteria for success for mining companies. He also discusses how junior mining company executives in Saskatchewan must “think differently” because: seemingly small decisions by management can affect corporate survival in these times of crisis in the financial markets the new sources of capital that have emerged in the last decade impose important changes in corporate strategy the mining industry in Saskatchewan as a group must promote innovative initiatives to enhance it’s continued importance in the provincial economy. IF EVERYONE IS THINKING ALIKE, THEN NO ONE IS THINKING 3 Survival of an Industry Charles Darwin: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” Is this a down cycle or a fundamental and permanent shift in capital markets? For how long? What will make it revert? Who will survive? IF EVERYONE IS THINKING ALIKE...
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...1 MINING INDUSTRY - OVERVIEW AND RISKS FACTORS Definition of the Industry The mining industry encompasses a wide range of companies involved in different supply chain positions that represent exploration, development, extraction, processing, refining and sale of minerals and coal. With respect to the diverse set of business factors that affect the mining process, the business risk rating for the mining industry would be best qualified in terms of a credit rating of BBB (low). The justification for this rating follows: a) Higher than average profitability of the industry – related to the need to provide adequate returns on large capital investments b) Threat of competitors is about on the same level as other industries – based on multiple suppliers and buyers and the prevalence of homogenous products (nonbranded) c) Inherent volatility in earnings and underlying cash flows – due to volatile pricing of commodity products and responsiveness to economic cycles d) Above average and increasing prospect of industry regulation e) Above average and uncertain political risk – industry players have to pursue operations where mineral resources are found and in many cases this would include politically unstable regions f) Below average technology risks – due to the basic nature of the materials produced and licensing production technologies and methods among players in the industry 2 The BBB rating is applicable only to industry players...
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...The majority types of food Canada grows are grains and oilseeds, which include wheat, durum, oats, barley, rye, soybeans, rice, and corn; and red meets, which include beef cattle, hogs, veal, and lamb. Their primary market are mostly for domestic and export. The rest of the food such as dairy, horticulture, poultry and eggs are mostly only for domestic consumption. Canada is an outstanding example of “geo-strategic region.” Its natural resources and land holding capacity are large enough to affect global characteristics and functions due to the dependency of other countries to Canada’s natural resources and crop production. According to in 2009, the total amount of natural resources including energy, forestry, mining and agricultural that exported from Canada accounted for about 50% of Canada’s total exports. The geopolitical factors have been positively impacted Canada’s political outcomes, whether on economically or...
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...MINING AND WATER POLLUTION Water is essential to life on our planet. A prerequisite of sustainable development must be to ensure uncontaminated streams, rivers, lakes and oceans. There is growing public concern about the condition of fresh water in Canada. Mining affects fresh water through heavy use of water in processing ore, and through water pollution from discharged mine effluent and seepage from tailings and waste rock impoundments. Increasingly, human activities such as mining threaten the water sources on which we all depend. Water has been called “mining’s most common casualty” (James Lyon, interview, Mineral Policy Center, Washington DC). There is growing awareness of the environmental legacy of mining activities that have been undertaken with little concern for the environment. The price we have paid for our everyday use of minerals has sometimes been very high. Mining by its nature consumes, diverts and can seriously pollute water resources. Negative Impacts While there have been improvements to mining practices in recent years, significant environmental risks remain. Negative impacts can vary from the sedimentation caused by poorly built roads during exploration through to the sediment, and disturbance of water during mine construction. Water pollution from mine waste rock and tailings may need to be managed for decades, if not centuries, after closure. These impacts depend on a variety of factors, such as the sensitivity of local terrain, the composition of...
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...Executive Summary Gammon Lake (GL) is an exploration and mining company that is based in Canada but operates in Mexico. The minerals extracted by GL are mainly Gold and Silver and are sold to process and refining companies in their raw form. GL possesses a management team who holds an abundance of intelligence and expertise. This knowledge ranges from accounting to exploration and all of the areas in between. This knowledge has allowed GL to create very accurate resource reserve calculations and feasibility studies. In the last few years, Gammon Lake has acquired mining rights from multiple companies, thereby considerably increasing their mineral reserve, and the company’s size and capacity. As the Mexican mining market becomes more and more saturated, the number of profitable mining reserves is continuously decreasing. Gammon Lake faces the dilemma of continuing to only operate in Mexico or to take the company in another direction by expanding into other mining markets such as over seas (Australia and Peru) and/or the Canadian and USA markets. Currently, the best option for Gammon Lake is to remain only in the Mexican mining market as they are in an extremely severe loss position. Expanding into other markets will be exceptionally expensive therefore Gammon Lake should avoid those additional expenses at the moment. When and if Gammon Lake finds themselves in a more suitable financial position they should focus their efforts into expansion into these other markets...
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...1 MINING INDUSTRY - OVERVIEW AND RISKS FACTORS Definition of the Industry The mining industry encompasses a wide range of companies involved in different supply chain positions that represent exploration, development, extraction, processing, refining and sale of minerals and coal. With respect to the diverse set of business factors that affect the mining process, the business risk rating for the mining industry would be best qualified in terms of a credit rating of BBB (low). The justification for this rating follows: a) Higher than average profitability of the industry – related to the need to provide adequate returns on large capital investments b) Threat of competitors is about on the same level as other industries – based on multiple suppliers and buyers and the prevalence of homogenous products (nonbranded) c) Inherent volatility in earnings and underlying cash flows – due to volatile pricing of commodity products and responsiveness to economic cycles d) Above average and increasing prospect of industry regulation e) Above average and uncertain political risk – industry players have to pursue operations where mineral resources are found and in many cases this would include politically unstable regions f) Below average technology risks – due to the basic nature of the materials produced and licensing production technologies and methods among players in the industry 2 The BBB rating is applicable only to industry players...
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...L50/76280/2014 AN ASSIGNMENT SUBMITTED IN PARTIAL FULFILLMENT FOR REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF ARTS IN PROJECT PLANNING AND MANAGEMENT. 3RD NOVEMBER, 2014 Chilean Miners’ Rescue On 5th August, 2010 Chile hit the headlines with 33 miners drilling 2300 feet below the surface in a copper and gold mine in Atacama Desert, 800 kilometres North of Chile’s Capital Santiago were trapped by a massive cave- in. Chilean Mining Minister, Laurence Golborne, who had accompanied President, Sebastian Pinera, on a state visit to Quito, Ecuador, got the news at 11pm shortly after their arrival. Golborne informed the president the following morning and flew to Santiago via Peru on commercial flights then took a Chilean Air force flight to Copiapo before a 45-kilometre drive to the mine, arriving on August 7. Golborne, an engineer and entrepreneur, was recruited by the business friendly president who was inaugurated in March 2010 after success as Chief Executive of Censoud A, a large Chilean retail firm. Just 4 months in office with no mining background, Golborne took charge of a widely viewed disaster recovery effort. 69 days later, all 33 miners were rescued. Crew Foreman Luiz Urzua led the 33 trapped miners to form a small society to ration food, preserve morale, and protect their scarce resources. A surface team numbering hundreds had emerged under Golborne and three key lieutenants: Andre Sougarret (Engineering team),Rene Aguilar,(Golborne’s deputy) and Cristian Barra...
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...Business risks facing mining and metals 2012–2013 Organizations that succeed do so because they are best able to optimize the risk and reward equation for both strategic and operational issues. Contents The Ernst & Young business risk radar for mining and metals Executive summary The top 10 business risks 1. Resource nationalism 2. Skills shortage 3. Infrastructure access 4. Cost inflation 5. Capital project execution 6. Social license to operate Editorial — Prospects and perils: facing up to political risks in mining and metals 7. Price and currency volatility 8. Capital management and access 9. Sharing the benefits 10. Fraud and corruption 3 4 10 11 14 17 20 23 26 28 32 35 38 40 Under the radar Getting prepared 42 46 The Ernst & Young business risk radar for mining and metals Up from 2011 Down from 2011 Same as 2011 New entry The risks closest to the center of the radar are those that pose the greatest challenges to the mining and metals sector in 2012 and into 2013. The business risk report Mining and metals 2012–2013 3 Executive summary 4 The business risk report Mining and metals 2012–2013 A more complex and extreme risk environment “The bottom line is that if returns start to wane, then there is a greater imperative for organizations to tightly and more effectively manage their risks to maintain an adequate risk/reward balance.” Mike Elliott Global Mining and Metals Leader, Ernst & Young On the surface, the top...
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...NUMBER: L50/76280/2014 AN ASSIGNMENT SUBMITTED IN PARTIAL FULFILLMENT FOR REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF ARTS IN PROJECT PLANNING AND MANAGEMENT. 3RD NOVEMBER, 2014 Chilean Miners’ Rescue On 5th August, 2010 Chile hit the headlines with 33 miners drilling 2300 feet below the surface in a copper and gold mine in Atacama Desert, 800 kilometres North of Chile’s Capital Santiago were trapped by a massive cave- in. Chilean Mining Minister, Laurence Golborne, who had accompanied President, Sebastian Pinera, on a state visit to Quito, Ecuador, got the news at 11pm shortly after their arrival. Golborne informed the president the following morning and flew to Santiago via Peru on commercial flights then took a Chilean Air force flight to Copiapo before a 45-kilometre drive to the mine, arriving on August 7. Golborne, an engineer and entrepreneur, was recruited by the business friendly president who was inaugurated in March 2010 after success as Chief Executive of Censoud A, a large Chilean retail firm. Just 4 months in office with no mining background, Golborne took charge of a widely viewed disaster recovery effort. 69 days later, all 33 miners were rescued. Crew Foreman Luiz Urzua led the 33 trapped miners to form a small society to ration food, preserve morale, and protect their scarce resources. A surface team numbering hundreds had emerged under Golborne and three key lieutenants: Andre Sougarret (Engineering team),Rene Aguilar,(Golborne’s deputy) and Cristian Barra...
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...The Gold Rush impacted California by creating opportunities for entrepreneurs, attracting immigrants to the territory and causing the development of cities and towns. The Gold Rush was sparked when gold was found at Sutter’s mill in 1848. Many people from all over the nation and the world soon poured into the area for a chance to become wealthy miners. However, many people found that it was easier to make a living by servicing the miners. Just as much money was in this business as in mining itself. As miners poured into California, businesses and towns would need to be made to help the miners and the local economy of the area. The Gold Rush united a nation that was separated into east and west. Not only did the Gold Rush unite a nation, it...
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...of Metals and Mining Companies Author: Svetlana Baurens E-Mail: baurens@basinvest.ch Date: 7.11.2010 In collaboration with the University of Zürich, Swiss Banking Institute and Prof. Dr. T. Hens Contents 1. Introduction ...............................................................................................................7 1.1. Motivation .......................................................................................................7 1.2. Structure ..........................................................................................................7 1.3. Definition of terms .........................................................................................8 2. Valuation models in mining and metals industry ................................................12 2.1. Special features of metals and mining companies ........................................12 2.2. Classification of valuation models ................................................................15 2.3. Resource & Reserve .....................................................................................17 3. Valuation of Explorations properties ...................................................................20 3.1. Appraised Value Method (Cost Approach) ...................................................23 3.2. Comparable Transactions (Market Approach) ..............................................24 4. Cycle importance in valuation of metals and mining companies .....
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