Liberals ignore Sudbury's mining riches and global expertise - Stan Sudol (01/16/06)

Last month Inco, Laurentian University, and a number of other partners including the city announced their commitment to create an international mining research centre in Sudbury.

In a recent interview, Prime Minister Paul Martin said he though the idea had merit but he wouldn't promise any essential federal funding for this visionary initiative. However, his government might consider establishing a network of mining centres throughout Canada including Sudbury.

His lack of knowledge on the Sudbury Basin's enormous financial contributions to all levels of government and its unique role in the global production of nickel, cobalt and platinum group metals is nothing short of scandalous. With the many new discoveries and industry commitments to bring a new generation of mines on stream, this geological deposit will still be producing its metallic wealth well into the next century.

The Basin is the richest mining district in North America and among the Top 10* most significant globally. Combined with the enormous expertise in hard-rock mining techniques, industry and academic research and an export oriented mining supply and services sector - the third largest in the country behind Toronto and Vancouver - there is no comparison to any other mineral producing region in this country. Perhaps this might be a great time to put uniqueness of this extraordinary deposit in a global perspective. There is no doubt that the world is entering a new age of metal demand not seen for at least a quarter century. China's ravenous resource appetite, sparked by its explosive growth, is creating an economic tidal wave around the world, leaving no commodity producing nation untouched.

However, China is not the only country placing unprecedented demands on the globe's mineral resources. India, Brazil, Russia and many other

developing countries are also modernizing their standards of living.

According to the Australian Institute of Mining and Metallurgy, over the next 50 years the world will use five times all the mineral supplies that have ever been mined up to the year 2000. We are entering a commodity boom that will last for decades.

So where are the richest mining districts on earth - the fortunate regions that will prosper from this enormous metallic demand - and where does the Sudbury Basin fit in?

The main issue when identifying a top mineral producing region or deposit is how big of an area do you include? The term "mining camp" appears to be a distinctly Canadian definition that describes a small area. Most of the mining world defines mineralized areas as belts, basins, provinces and districts. The list of the world richest mining districts does not include coal, industrial minerals or diamonds. It is graded by the value of commercially extractable metals including historical production, known reserves and must still be in operation.

The number one mining region in the world is South Africa's incredibly rich Bushveld Complex, located just north of Pretoria, the capital. The Bushveld is one of the geological wonders on earth. Eighty percent of the world's platinum and 75 percent of chromium reserves are located here.

Measuring 350 kilometers across and 300 kilometers north-south the Bushveld was discovered in 1924 by Hans Merensky. South Africa is the largest producer of platinum group metals, followed by Russia and Canada.

Frigid Siberia's Taimyr Peninsula holds the number two spot. The Norilsk-Talnakh deposits contain nickel, copper and excellent grades of platinum group metals.

The two deposits, which are about 25 miles apart, were discovered during the 1920s, with production starting during the Second World War. The community of Norilsk was originally a Soviet penal colony, and political prisoners built the first mines and smelters.

Russian metal miner MMC Norilsk Nickel controls the entire deposit.

The third richest mining region is South Africa's amazing Witwatersrand Basin.

Roughly centered around and to the south of Johannesburg, the Witwatersrand Basin is a 350 x 200 km sedimentary basin. The Witswatersrand was discovered in 1886 and about 40 percent of all gold ever produced comes from these deposits. South Africa was the largest producer of gold in 2003, followed by Australia, United States and China.

We must visit the northern Atacama Desert in Chile, to find the fourth richest mining district. It includes the enormously prolific copper mines of Chuquicamata and Escondida.

The geology and structure of both mines are part of the same regional fault system that is 200 kilometres apart. In between are many other copper mines that confirm the Antofagasta region's status as the most abundant copper producing area on earth.

The region surrounding the Chilean capital of Santiago is number five on the list. The world's largest underground copper mine, El Teniente, 80 kilometres to the southeast of the capital as well as Rio Blanco and Andina to the northeast have been included in this geological region. El Teniente is owned by the state mining company Codelco. Chile is the largest producer of copper providing about 40 percent of global production.

Australia holds the number six spot with the rich bauxite deposits at Weipa, Queensland owned by Comalco Limited, a subsidiary of Rio Tinto.

Discovered in 1955 by geologist Harry Evans, the miles of reddish bauxite cliffs found on the Cape York Peninsula contain approximately one-quarter

of the world's known reserves of this valuable mineral. Australia is the world's largest producer of bauxite.

The number seven spot goes to another iron producer. It is the gigantic iron ore deposits of Brazil's northern Carajas region.

The Carajas iron province is an elephant deposit containing almost eighteen billion tons of high-grade iron ore. It has sufficient reserves to guarantee production for about 400 years at current levels. The deposit, discovered in 1967, is entirely controlled by the Brazilian company CVRD.

Coming in at eighth place is our very own legendary Sudbury Basin, an oval geologic structure, 60 kilometres long and 30 kilometres wide. The deposit was first discovered in 1883 during the construction of the national railway. Today, this region supplies 15 percent of global nickel

production as well as significant quantities of copper, platinum group metals, and cobalt.

The Hamersley Iron Basin, located in the Pilbara region of Western Australia is number nine on our list. This tremendously large deposit, discovered in the 1960s, has established Australia as the third largest iron producer in the world. Within the Pilbara there are 22 iron ore mining and processing sites employing almost 9,000 people. BHP Billiton and Rio Tinto, respectively the top two largest mining companies, both have extensive operations in the Pilbara.

Coming in at the number 10 spot is the Laramide Porphyry Copper Cluster of Arizona, New Mexico, and Sonora, Mexico. The Morenci open pit is located in southwest Arizona and majority owner Phelps Dodge Corp. has been mining this rich deposit since the 1880s. In close proximity to Morenci at Safford, Arizona, is the largest undeveloped porphyry copper deposit in the world.

These elephant deposits or highly mineralized districts generate enormous amounts of wealth, provide many jobs and contribute to a higher standard of living for the host country.

The Sudbury Basin, the epicentre of this country's dynamic hard-rock mining economy, will still be producing its metallic riches well into the next century. Billions will be spent in the next decade to bring on the next generation of mines.

Tony Naldret, one of the world's leading geological experts on nickel sulphide deposits estimates that Sudbury's total contribution, historical and reserves still in the ground is about $370 billion (US).

The federal Liberals, through the National Research Council, have already established an Aluminum Technology Centre in Quebec's Lac-Saint Jean region, the centre of that province's aluminum industry.

However, new investment in aluminum smelting and manufacturing is shifting to regions with inexpensive power.

It's time for the Martin Liberals to make a significant financial commitment to Sudbury that will cement this community'sreputation as a global centre of mining excellence. Historically, the Sudbury Basin ridings have supported the federal Liberals for most of the past 100 years.

If the Martin Liberals ignore this loyalty then perhaps Sudburians should consider the political alternatives.

* Special thanks to U.K-based Dr. Tony Naldrett, Mike Porter of Porter GeoConsultancy Pty. Ltd. in Australia and the many folks at the United States Geological Service in Reston, Va. for helping produce this list.