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The gutting of Barrick Gold – it didn’t have to be this way - The Globe and Mail
ERIC REGULY EUROPEAN BUREAU CHIEF
ROME
PUBLISHED JANUARY 4, 2019

Most big companies Eric Reguly followed – Inco, Falconbridge, Alcan, Dofasco, Molson, Fairmont, Four Seasons, among others – were flogged to foreigners, their head offices downgraded to branch plants or eliminated. ....Canadians were sellers, not builders.....If there was one company that was safe from the takeover onslaught, it was Barrick Gold, I thought......At the time, Barrick was run by its founder, Peter Munk, the Hungarian-born Canadian patriot who wanted to build the world’s biggest gold miner. After achieving that goal, he mused about creating a diversified resources giant, the equivalent of a BHP Billiton or Rio Tinto under the Maple Leaf. But he was too late: By the time he was ready to put the pieces together, in the middle part of the previous decade, all his potential targets, including Inco, had been plucked clean from the Toronto stock market.....
Eric_Reguly  branch_plants  head_offices  hollowing_out  John_Thornton  large_companies  LSE  mining  Peter_Munk  Pierre_Lassonde  sellout_culture  TMX  Barrick  Corporate_Canada 
january 2019 by jerryking
Canada doomed to be branch plant for global tech giants unless Ottawa updates thinking, Balsillie warns | Financial Post
James McLeod
November 16, 2018
7:27 PM EST

Canadian governments need to radically rethink their approach to the knowledge economy if the country is to be anything more than a branch plant for global technology giants,.......“I think they confuse a cheap jobs strategy … (and) foreign branch plant pennies with innovation billions,” .........Balsillie has argued that the “intangible” economy of data, software and intellectual property is fundamentally different from the classical industrial economy built on the trade of goods and services, and that because Canadian policymakers fail to understand that difference, they keep being taken for rubes.......Balsillie was particularly critical of the federal government’s policy when it comes to “branch plant” investments in Canada in the technology sector.

He said that in the traditional economy of goods and services, foreign direct investment (FDI) is a good thing, because there’s a multiplier effect — $100 million for a new manufacturing plant or an oil upgrader might create $300 million in spinoff economic activity.

But if you’re just hiring programmers to write software, the picture is different, he said. It’s a much smaller number of jobs with fewer economic benefits, and, more importantly, the value created through intellectual property flows out of the country.

“Our FDI approaches have been the same for the intangibles, where, when you bring these companies in, they put a half a dozen people in a lab, they poach the best talent and they poach the IP, and then you lose all the wealth effects,”....“Don’t get me wrong. I believe in open economies. They’re going to come here anyway; I just don’t know why we give them the best talent, give them our IP, give them tax credits for the research, give them the red carpet for government relations, don’t allow them to pay taxes, and then have all the wealth flow out of the country.”...if small countries such as Canada make a point of prioritizing the intangible economy, there are huge opportunities. He pointed to Israel, Finland and Singapore as examples of how smart policies and specialization can reap big rewards.

“I could literally see enormously powerful positions for Canada if we choose the right places. I mean, there are some obvious ones: value added in the food business, and precision data and IP in agriculture; certainly in energy extraction and mining, which are data and technology businesses,” he said.

“We actually have enormous opportunities to build the resilience and opportunity,” he said. ”And how can you threaten a country with a picture of a Chevy and 25 per cent tariffs when you’ve built these kinds of very powerful innovation infrastructures that you can’t stop with a tariff because they move with the click of a mouse?”
agriculture  branch_plants  Canada  data  digital_economy  energy  FDI  Finland  food  GoC  industrial_economy  IP_retention  intangibles  intellectual_property  Israel  Jim_Balsillie  mining  policymakers  property_rights  protocols  Singapore  talent  technology  wealth_effects 
november 2018 by jerryking
Can John Thornton save Barrick Gold? - The Globe and Mail
RACHELLE YOUNGLAI
Can John Thornton save Barrick Gold?
SUBSCRIBERS ONLY
The Globe and Mail
Published Friday, May. 29 2015
Barrick  gold  mining  John_Thornton  CEOs  relationships  legacies  Goldman_Sachs  boards_&_directors_&_governance  Bay_Street  Nevada  free_cash_flow 
may 2015 by jerryking
Former Xstrata boss Mick Davis a slimmer, trimmer predator - The Globe and Mail
Mar. 13 2015 | The Globe and Mail | by ERIC REGULY - EUROPEAN BUREAU CHIEF
LONDON.

Mick Davis runs X2 Resources, which has 10 employees and zero assets other than $4-billion of investor capital, some of it from Canadian pension funds, sitting idly in the bank.

X2 was launched a year ago and has been shopping for mining assets or operating companies, but has come up short....Mr. Davis is wealthy. He recently donated £1.1-million ($1.5-million) to David Cameron’s Conservative party to support its re-election bid in the May general election. He admits he doesn’t need to launch X2 to support his lifestyle, though he would like to donate more money to his charities. What’s really driving him is the urge to build once again....Xstrata began life in 2001 as a small lump of coal assets discarded by Glencore. Big Mick had emerged as the industry’s premier predator. “What motivates me is to be able to create and build,” he said back then. “If you’re going to be productive in your time in this world, you have to add to it. I have the capability of adding commercially.”....Commodities recovered shortly after the 2008 financial crisis, then went into a long slump that continues today – copper is down more than 15 per cent in the past year, iron ore by 50 per cent. The culprit was not waning demand, Mr. Davis explains; it’s still rising, albeit at a slower pace. Instead, it was epic miscalculation by the corporate captains and the investors who threw money at them. When prices were strong, the biggies invested fortunes in new mines and smelters and all the ports, ships and railways that went with them. These projects were vast, expensive and took many years to build.

All that new production is now hitting the market like a sledgehammer.
Xstrata  Mick_Davis  mining  Glencore  Eric_Reguly  miscalculations  Second_Acts  commodities  private_equity  mergers_&_acquisitions  natural_resources  X2  entrepreneur  privately_held_companies  overcapacity  overexpansion 
march 2015 by jerryking
The man with the key to China: Barrick Gold’s quest to open new doors - The Globe and Mail
RACHELLE YOUNGLAI - MINING REPORTER
The Globe and Mail
Published Friday, Dec. 06 2013

John Thorton is a man who “loves flawless execution” and prefers to work behind the scenes.

When Goldman won the contract to take some of China’s government-controlled telecom services public in 1998, it stemmed from Mr. Thornton’s work.

In the mid-1990s, Mr. Thornton got wind that the vice-premier at the time, Zhu Rongji, wanted to reform some of the country’s state-owned telecoms.

Mr. Thornton, who had taken Britain’s Vodafone public in the late-1980s, arranged for a meeting with the number 2 banker at the newly formed state-owned Chinese investment bank, a Chinese national who did not speak English.

Through a translator late at night in Beijing, Mr. Thornton said: “Here’s the real situation, you call yourself a banker and yet you know nothing about banking. I am in charge of Goldman Sachs Asia and China and I know nothing about any one of those. So we have a perfect marriage here. You’re going to teach me China and I am going to teach you banking and I am going to make you look like a hero in front of Zhu Rongji and everyone else who is important to you. And I don’t need any visibility, credit, anything. All I want to do is understand China out of this whole process.”

Mr. Thornton stressed his experience with Vodafone and the Chinese banker took Mr. Thornton’s request to Wang Qishan, then the head of China Construction Bank (one of China’s four biggest banks) and a protege of Mr. Zhu. Mr. Wang then spoke to Mr. Zhu and Goldman made its foray into China.

Mr. Thornton, Mr. Evans and former U.S. treasury secretary and Goldman chief executive Hank Paulson met Mr. Zhu in Beijing and Goldman got the deal.
Hank_Paulson  mining  Barrick  Goldman_Sachs  boards_&_directors_&_governance  China  relationships  dealmakers  optics  protégés 
december 2014 by jerryking
Glencore’s Glasenberg Makes His Boldest Move Yet - WSJ
By ANDREW PEAPLE and ALEXIS FLYNN in London and RHIANNON HOYLE in Sydney CONNECT
Updated Oct. 7, 2014
Glencore  mining  traders  Rio_Tinto  commodities 
october 2014 by jerryking
Munk's Tale
April 19, 2014 | The Economist | Schumpeter
Peter_Munk  mining  moguls  entrepreneur  Barrick  gold  serial_entrepreneur 
may 2014 by jerryking
Former Xstrata CEO raises $2.5-billion for new company - The Globe and Mail
ERIC REGULY
- EUROPE BUSINESS CORRESPONDENT

X2’s goal is to create a mid-tier mining and metals group. The company consists of a small office in central London and five executive partners, all of whom worked with Mr. Davis at Xstrata. They include Trevor Reid, who was Xstrata’s finance director, Thras Moraitis, Andrew Latham and Ian Pearce. Mr. Pearce, of Toronto, was the CEO of Xstrata Nickel, formerly Falconbridge Ltd., the Canadian nickel miner bought by Xstrata in 2006 for about $22-billion (Canadian).

With ample funding in place, X2 is expected to move quickly on the acquisitions front. The company won’t say where it is looking, though the team has intimate knowledge of the mining scene in Australia, Canada and South Africa. Mr. Davis is a South African and was the chief financial officer of Australia’s Billiton before its merger with BHP in 2001.

X2 will consider buying operating companies or assets that are being discarded by the big players such as BHP, Rio Tinto and Anglo American, which overpaid for assets before the 2008 collapse in the belief that the upward commodities cycle was unstoppable. They have taken billions of dollars of writedowns in the past couple of years.

ROME — The Globe and Mail

Published
Monday, Mar. 31 2014,
Mick_Davis  Xstrata  Eric_Reguly  mining  natural_resources  commodities  overpaid  commodities_supercycle 
april 2014 by jerryking
Peter Munk: A mining magnate nears the end of his golden reign - The Globe and Mail
ERIC REGULY - EUROPE BUSINESS CORRESPONDENT

KLOSTERS, SWITZERLAND — The Globe and Mail

Published Saturday, Mar. 15 2014,
Eric_Reguly  Peter_Munk  Glencore  Xstrata  John_Thornton  Canada  Barrick  mining  moguls  entrepreneur  commodities 
march 2014 by jerryking
How Canada Dominates African Mining
18 April 2013 | Think Africa Press| By Travis Lupick
mining  African  Canada 
january 2014 by jerryking
The man with the key to China: Barrick Gold’s quest to open new doors - The Globe and Mail
Dec. 06 2013 | The Globe and Mail | RACHELLE YOUNGLAI - MINING REPORTER.

The former Goldman Sachs president has spent more than 20 years working with Chinese policymakers. He shares Mr. Munk’s vision of turning Barrick into a diversified mining giant and tapping China to join the effort...Mr. Thornton said his Barrick talks with the Chinese have been with the highest levels of the communist government right on down the system. He stresses he does not want what he calls a “transactional” or one-off deal with the Chinese. He wants to build an enduring relationship with the government...Mr. Thornton envisions Barrick first doing one “thing that is relatively modest” with the Chinese. For example, he says Barrick could consider a Chinese construction company for Pascua Lama. Mr. Thornton has not spoken to any such companies about the South American mine and says it’s only an example.

Michael Evans, a Goldman vice-chairman who worked with Mr. Thornton for years in London and Asia, describes Mr. Thornton as a hugely strategic operator who “loves flawless execution” and prefers to work behind the scenes...In the mid-1990s, Mr. Thornton got wind that the vice-premier at the time, Zhu Rongji, wanted to reform some of the country’s state-owned telecoms.

Mr. Thornton, who had taken Britain’s Vodafone public in the late-1980s, arranged for a meeting with the number 2 banker at the newly formed state-owned Chinese investment bank, a Chinese national who did not speak English.

Through a translator late at night in Beijing, Mr. Thornton said: “Here’s the real situation, you call yourself a banker and yet you know nothing about banking. I am in charge of Goldman Sachs Asia and China and I know nothing about any one of those. So we have a perfect marriage here. You’re going to teach me China and I am going to teach you banking and I am going to make you look like a hero in front of Zhu Rongji and everyone else who is important to you. And I don’t need any visibility, credit, anything. All I want to do is understand China out of this whole process.”

Mr. Thornton stressed his experience with Vodafone...
Barrick  gold  mining  John_Thornton  CEOs  relationships  Goldman_Sachs  personal_connections  Tsinghua  boards_&_directors_&_governance  barter  transactional_relationships 
december 2013 by jerryking
Dundee’s real-time data innovations are as good as gold -
Dec. 01 2013 | The Globe and Mail | ERIC REGULY

Installing a data network in the mine puts Dundee at the forefront of the industry’s next phase – treating mines as if they were just-in-time manufacturing sites. That means every activity, from the number of scoops of ore delivered to the crushing machine to the number of metres drilled into the rock face, is recorded and displayed in real time.

In most mines, this data is now written on paper and collected at the end of the work shift, and the numbers are often inaccurate. “We want to turn an extremely low-tech industry into a high-tech industry,” Mr. Howes says. “If this industry wants to advance, it’s going to take a lot of software development.”

Any mishap or slowdown, from a truck that has made an unscheduled stop to a miner who is behind schedule, is immediately transmitted to the surface and action is taken. The surface crew even knows the whereabouts of its workers because an RFID – radio frequency identification device – is embedded in the battery that powers the helmet-mounted lamps.
real-time  Eric_Reguly  mining  massive_data_sets  Wi-Fi  RFID  data  Dundee 
december 2013 by jerryking
Rosario María Astuvilca - The Globe and Mail
Appointment notice
Rosario María Astuvilca

Content by: Odgers Berndtson

Published Wednesday, Oct. 09 2013
appointments  women  mining  executive_search  Latinos  Hispanic_Americans 
november 2013 by jerryking
The slides that came in from Brazil
Oct. 07 2013 | The Globe and Mail |editorials.

Brazil is entitled to an explanation from the Canadian government about what appear to be plans for economic espionage on the Brazilian Ministry of Mines and Energy (and consequently on Brazilian companies) by the Communications Security Establishment Canada. And Canadian citizens are entitled to a clear, principled statement of the views of the CSEC and the Canadian government as a whole on what kinds of economic intelligence they believe themselves to be justified in collecting....CSEC’s signals-intelligence activities should not, as a general rule, be put in the service of private companies, either Canadian or foreign. Canadian competitiveness is of course a desirable goal, but one essential element of fair competition, internationally as well as within a home country, is that it should not be deceptive or fraudulent.

Reports over the years have suggested that CSEC has provided the government with economic intelligence in trade negotiations. If so, the practice is dubious. Trade is not war, and trade negotiations should be carried on in good faith – with elements of strategy on both sides.
Brazil  mining  Canadian  security_&_intelligence  editorials  espionage  cyber_security  CSE  sigint  metadata  GoC 
october 2013 by jerryking
'Big Mick' returns to mining - and he's hungry for acquisitions
October 1, 2013 | Globe & Mail | ERIC REGULY.

Mick Davis is back in the mining game....Mr. Davis, older, leaner but still hungry, along with a few former Xstrata executives, has launched X2 Resources, a private company that has raised $1-billion (U.S.) and plans to raise more. The goal is to give it the firepower to pounce on mining assets that the X2 executives consider undervalued in a market that has lost its love for commodities....Mr. Davis is bullish on commodities and thinks the selloff that sent mining company values plummeting is overdone, although he does not see a return to the "explosive" demand that turned mining companies such as Xstrata into some of the biggest wealth generators of the pre-2008 era. "We still have a lot of conviction about the resources industry," he said. "We're seeing ongoing demand in the developing world and the rise of consumer markets there."

Mr. Davis built his career on this "stronger-for-longer" theory that was centred on he belief that urbanization in China, India and some parts of sub-Saharan African would send the prices soaring for the copper used in everything from plumbing to the coal burned in electricity plants....In a statement, Jim Coulter, TPG's founding partner, said it invested because "the X2 team has an impressive track record of building metals and mining platforms around the world."
Eric_Reguly  Mick_Davis  Second_Acts  Glencore  staying_hungry  mining  commodities  private_equity  mergers_&_acquisitions  TPG  natural_resources  X2  Xstrata  entrepreneur  privately_held_companies  urbanization  China  India  sub-Saharan_Africa  investment_thesis  undervalued  developing_countries 
october 2013 by jerryking
Debate flares up over Northern Ontario's Ring of Fire - The Globe and Mail
JOSH WINGROVE

THUNDER BAY, ONT. — The Globe and Mail

Published Friday, Jul. 05 2013,

The so-called Ring of Fire is a 5,000-square-kilometre crescent of chromite, nickel, copper, zinc and gold – a vast deposit discovered a decade ago in remote Northern Ontario, much of it inaccessible by road and surrounded by nine Matawa First Nations. Interest in development took off when Mr. Gravelle held the mining portfolio from 2007 to 2011. /// The Ring of Fire’s proponents say it would be a jolt to the national economy. Tony Clement, the federal cabinet minister responsible for economic development in Northern Ontario, has estimated the deposit’s value at between $30-billion and $50-billion.
Ring_of_Fire  Ontario  Bob_Rae  aboriginals  economic_development  mining 
july 2013 by jerryking
Canada’s African adventure takes a colonial turn - The Globe and Mail
Feb. 02 2013 | The Globe and Mail | by DOUG SAUNDERS.

Even though Ottawa had shifted its foreign-aid focus away from Africa a few years ago, the government has come back in force, with a new large-scale aid strategy in which its agencies work with resource companies, alongside charities and private aid groups, in a way that, in the words of International Co-operation Minister Julian Fantino, “addresses social and environmental issues of extractive sector development” and helps countries “use resource rents and investment to spur economic diversification in local communities, often focused on agricultural and agribusiness development.” It makes some sense: Canada ought to be providing this sort of aid to the people it’s contacting – sometimes beneficially, sometimes otherwise – with its resource-taking activities.

But the end effect is that Canada has landed in Africa in a big way: tearing up the land, building new towns, creating roads and pipelines and airports, and bringing in new forms of government and administration to create new economies and enforce human rights and democratic standards.

This bears a strong resemblance to what the military calls counterinsurgency: To make the local population tolerate your forceful acts and embrace your cause, you win over their hearts and minds by building roads, schools, water supplies and better farms. In the process, though, you become something like a colonial government.

Canada, not yet fully free from its own years as a colony, is far from comfortable with this role. We ought to find some other name, and some other shape, for our African project.
Africa  counterinsurgency  CSR  economic_development  economic_diversification  natural_resources  mining  Canada  Doug_Saunders  foreign_aid  corruption  oil_industry  engineering  colonialism  large-scale  resource_extraction 
february 2013 by jerryking
Underpricing risky business
February 1, 2013 | G&M report on Business pg B2 |by David Parkinson.

As energy and mining reserves have become increasingly expensive to find in other, more stable parts of the world, Africa's dangers have been glossed over in the quest to cash in on the continent’s still relatively undeveloped resources. Companies have been ignoring the risky reality, and investors have been underpricing it...Africa's significant growth potential has generated optimism, however, the geopolitical risks facing investors in Africa remain, for the most part, underestimated.”
The biggest threat to business in Africa, he argues, is “re1igious/ ideological militancy"--especially from Islamist/jihadist groups - which he says “has been vastly underestimated, and will pose significant risks to foreign investors in much of Africa."
He believes companies and their investors are underpricing the risks of doing business in Aŕrica, including rising security and insurance costs and cant project delays that could come from security threats, military conflicts or regime changes....Until the market starts pricing risk into African resource investments before a crisis forces the realization upon it, there will be little incentive for companies to seek less risky and less corrupt places to put their money.
And there will be more harsh and costly awakenìngs for investors who are themselves willfully blind to the risks.
underpricing  risks  Africa  natural_resources  political_risk  geopolitics  Mali  war  underestimation  frontier_markets  corruption  mining  mispricing  Islamists  jihadis  willful_blindness 
february 2013 by jerryking
Canada urged to defend lead in mining business
January 30, 2013 | Globe & Mail pg. B2 | by Pav Jordan.

A new report on the mining sector is urging Canada to streamline worker immigration procedures and boost tax incentives to encourage exploration in remote areas.
The report by the Canadian Chamber of Commerce warns that the country must not sit on its laurels if it wants to hold its lead in global mining, pointing at areas from the equipment supplies sector to bank financing and legal services and infrastructure as places where government and companies can work together to sharpen the nation’s edge.
The Canadian mining industry is among the world’s biggest, contributing $35.6­ billion to gross domestic product in 2011. That same year mining exports were valued at $102 ­billion, more than 20% of the national total. The Toronto Stock Exchange is the global capital for mining equity and British Columbia has the largest concentration of mining exploration firms anywhere.
mining  competitiveness_of_nations  Canada  Canadian  tax_codes  TMX  capital_markets  geology  engineering  legal  epicenters  hyper-concentrations 
january 2013 by jerryking
Risk? Bring it on, Canadian miners say - The Globe and Mail
DOUGLAS MASON

Special to The Globe and Mail

Published Thursday, Nov. 22 2012

There are few business sectors where Canada can claim global dominance, but as a centre for mining development, it is an industry leader....No other place has the same concentration and depth of services and financial market sophistication to support mining finance and development.

How does Canada do this? According to Kevan Cowan, president of TSX Markets, Canadians have a long history of participating in early-stage mining investments and a “whole ecosystem” has developed to support the industry.

“We have a tremendous network of industry players. Our legal services are the best expertise in this sector worldwide, together with a huge pool of geologists, engineers and mining entrepreneurs, as well as sophisticated capital markets for mining finance. We are a world ahead of our competitors.”
Canada  Canadian  mining  risk-taking  TSX  entrepreneurship  DRC  Banro  early-stage  ecosystems  capital_markets  geology  engineering  legal  TMX  epicenters  hyper-concentrations 
december 2012 by jerryking
Africa next: The quest for Africa’s riches - The Globe and Mail
GEOFFREY YORK

LUBUMBASHI, DEMOCRATIC REPUBLIC OF THE CONGO — The Globe and Mail

Last updated Sunday, Sep. 30 2012
Geoffrey_York  Africa  Congo  globalization  emerging_markets  mining  South-South  BRIC  corruption  Renaissance_Capital 
october 2012 by jerryking
Appalachia Turns on Itself - NYTimes.com
By JASON HOWARD
Published: July 8, 2012

There is no easy resolution to the fraught relationship between the coal industry and the people of Appalachia, many of whom rely on it for jobs even as it poisons their region. But it is imperative that the industry’s leaders and their elected allies lay down their propaganda and engage in an honest, civil dialogue about the issue. The stakes are too high to do otherwise.
Appalachia  mining  coal  propaganda 
july 2012 by jerryking
A Bestselling Author Fishes in Endangered Territory:A Meal Tinged With Sadness and Thanks
July 5, 2012 | NYT | By PAUL GREENBERG.

Late June and early July mark the peak of the biggest run of wild salmon left in the world. The sockeye salmon migration of Bristol Bay, Alaska, can number more than 40 million fish, and the commercial fishing industry in the region is worth more than $400 million. During this peak salmon period, Paul Greenberg, author of the New York Times bestseller “Four Fish,” will be blogging remotely via satellite as he travels down the Stuyahok River with the Alaska outfitter Mark Rutherford. This year’s fishing trip is particularly relevant. At present the Environmental Protection Agency is weighing whether to prevent the permitting of a 10 billion-ton copper and gold mine in this remote sensitive area, something many fishermen fear could spell the end of this magnificent run. —Mark Bittman
fishing  fish  salmon  Alaska  fly-fishing  books  EPA  mining  Mark_Bittman  endangered 
july 2012 by jerryking
Review & Outlook: Africa and 'Obama's Embargo' - WSJ.com
July 18, 2011|WSJ | editorials

The world is in the midst of a commodity boom, but in a mineral-rich and desperately poor corner of Africa exports of tin, tantalum and tungsten have fallen by more than 70% since last summer. These are not the effects of war or natural disaster—although the region suffers from all of that and more—but rather of what local small-time miners are calling "Obama's embargo."

The African miners are basically right about the source of their troubles, though if they want to be more specific with the blame they might also call it the McDermott embargo, after the Democratic Congressman from Washington state. Jim McDermott is one of the architects of the Dodd-Frank financial-reform bill's Section 1502, which is supposed to ensure that tin, tantalum, tungsten and gold sourced from central Africa is "conflict-free," the latest trendy cause supported by those who claim to care about the welfare of ordinary Africans...the logistics of guaranteeing this on a large-scale are daunting, and many suppliers find it easier to leave central Africa entirely. A case in point is the procurement policy of the H.C. Starck group, which affirms that it rejects all raw materials from the region, "even if we are offered material with allegedly official certifications from other state authorities."
Africa  embargoes  mining  atrocities  editorials  commodities 
july 2012 by jerryking
The head-office exodus - The Globe and Mail
Jun. 29 2012 | The Globe and Mail | ERIC REGULY.

Gord Nixon stated that “we should be asking why so many of our industry leaders are being consolidated, rather than doing the consolidating; why we are losing head offices at such an alarming rate; and what is the cost?”...Hollowing out has turned Canadians into bit players in industries that we used to dominate, or where we at least had a seat at the table....Why are Canadians so keen to sell? Lack of confidence is a good place to start. For decades, Canadian companies had capital handed to them, first by the British, then by the Americans. Now that CEOs face a global fight for capital, many of them seem to be taking the easy way out and selling to, rather than competing with, big-name rivals.

Greed is surely another reason. Canadian investors adore instant gratification, even if it means giving up a long-term growth play....All hope is not gone. We’ve lost head offices in mining, beer, steel and other businesses, but there is an industry where Canada has a chance to become a world-beater: agriculture. We have land, water, technology, potash-based fertilizer and infrastructure, such as rail and ports. Another two billion people will have to be fed by 2050. Canada should, and could, build its own Glencore, Archer Daniels Midland, Cargill or Monsanto.

Oops! We’ve now agreed to sell Viterra and its irreplaceable grain elevators, to Glencore.
Eric_Reguly  exodus  mining  mergers_&_acquisitions  Glencore  agriculture  hollowing_out  Strata  sellout_culture  global_champions  Viterra  head_offices 
june 2012 by jerryking
What makes Mick Davis stand out -- strong nerves
27 Mar 2007 | The Globe and Mail pg.B.2. | Eric Reguly.

Canadian mining bosses should get out of the office more often...For Canadian (mining CEOs) when the price rises sharply, visions of price collapse immediately fill their heads, and for good reason. The last downward cycle was so brutal that the mining companies were lucky to come out of it alive. They totally misjudged the current cycle, though. The Canadian CEOs should have spent less time on the golf course and more time watching stockpiles of nickel (and copper, zinc and lead) in Shanghai, Mumbai, Taipei and Seoul disappear like beer at Oktoberfest....Xstrata CEO Mick Davis and the intelligence gatherers at Glencore International, the commodities trader that controls 35 per cent of Xstrata, endlessly traipse around the planet to pick up information on reserves and supply and demand. They feed the data into a black box, which rattles and shakes and spits out a range of eye-popping numbers. Then Xstrata runs out and buys nickel companies when nickel prices are outrageously, unsustainably, stupidly high, or so everyone else thinks. Then the company and its shareholders make obscene amounts of money....CVRD and Inco have been spectacularly right, the Canadians spectacularly wrong. The result is a Canadian nickel mining industry with no nickel miners left of any size. Falconbridge, Inco and LionOre have been eradicated as independent, home-grown names. Investors who sold Inco and Falconbridge left fortunes on the table...The Xstrata lads didn't just get smart on price forecasts. They also figured out how to treat the hedge funds: Respect but don't fret about them. The hedgies pump volatility into the system. When commodity prices fall, say, 10 per cent, share prices might fall by double that amount as the hedgies head for the tall grass. As a CEO, you need strong nerves to endure such violent up and down movements. Mr. Davis has strong nerves and it has paid off. Many other mining bosses look at the hedge funds with fear.
CEOs  commodities  commodities_supercycle  Eric_Reguly  Glencore  inventories  lessons_learned  market_intelligence  Mick_Davis  mining  price_forecasts  scuttlebutt  sellout_culture  stockpiles  volatility  Xstrata 
june 2012 by jerryking
South Africa Pauses on Mines - WSJ.com
FEBRUARY 6, 2012 | WSJ | By DEVON MAYLIE

South Africa Pauses on Mines
Ruling Party Backs Away From Nationalization Issue in Bid to Reassure Investors
mining  nationalizations  South_Africa  ANC  Julius_Malema  FDI 
february 2012 by jerryking
Rival CEOs Face Test of Cooperation - WSJ.com
FEBRUARY 3, 2012 | WSJ | By JOHN W. MILLER And DANA CIMILLUCA

Rival CEOs Face Toughest Test Yet of Cooperation

In 2003, Xstrata, under Mr. Davis, bought an Australian copper and coal company named MIM Holdings Ltd. In regulatory filings at the time, MIM estimated the price of its "coking" coal for steel production at $45 a ton. After closing the $2.9 billion acquisition, Xstrata arranged to sell its coal through Glencore's trading arm.

By analyzing mine production data, ships and ports, Mr. Glasenberg, a former coal trader, and his lieutenants at Glencore figured out that Asian steelmakers were heading for a shortage of coal. So, Xstrata refused to sell its coal at the benchmark settlement price of $56 to $59 a ton negotiated by the market leader at the time, BHP Billiton-Mitsubishi Alliance.

After months of holding out, furious Indian, Japanese and Korean steelmakers caved in and agreed to pay $135 a ton.
Glencore  Xstrata  CEOs  mining  commodities 
february 2012 by jerryking
Rob McEwen: Mining magnate with a vision - The Globe and Mail
gordon pitts
From Saturday's Globe and Mail
Published Friday, Feb. 03, 2012
Gordon_Pitts  mining  Rob_McEwen  gold  moguls  CEOs  Goldcorp  silver  copper  vision 
february 2012 by jerryking
Doing business in Africa
October 2011 | Canadian Lawyer Magazine | Written by Paul Brent
Africa  law_firms  mining  opportunities  South_Africa  lawyers 
november 2011 by jerryking
Peter Munk: Recipe for success? Learning from failure
November 5, 2007 | The Globe and Mail | Gordon Pitts.

It's hard to think of Peter Munk as a failure. This is, after all, the man who built Barrick, the world's
largest gold miner, as well as a property empire, a philanthropic legacy and a reputation as a shootfrom-
the-hip tycoon. Yet in the 1960s, he was tarred with the collapse of Clairtone, a Canadian
manufacturer of cutting-edge stereo equipment and colour televisions that he had co-founded. Now approaching his 80th birthday, he considers the strange alchemy of failure and success, and how
entrepreneurs are formed.
Peter_Munk  Gordon_Pitts  failure  Barrick  mining  entrepreneur  moguls 
november 2011 by jerryking
Mining entrepreneur's university donation digging for ‘renaissance engineers’ - The Globe and Mail
james bradshaw
From Tuesday's Globe and Mail
Published Tuesday, Nov. 01, 2011

“renaissance engineers.” ---It’s a term he credits to his late wife, who saw the engineer of the future not just as a problem solver or functionary builder, but a sort of modern Michelangelo – expert and agile in more than one discipline, but also eager to consider and communicate how engineering relates to matters of sustainability, health, safety and civil society.

“You are an engineer, but at the same time you are an artist and you have to be able to tell the world how what you’re doing is going to benefit the world,”
York_University  interdisciplinary  mining  entrepreneur  Pierre_Lassonde  philanthropy  engineering  renaissance  Renaissance_Man  Colleges_&_Universities  moguls  Seymour_Schulich 
november 2011 by jerryking
Glencore IPO brings out the rah rah in London traders
May. 18, 2011 | The Globe and Mail | ERIC REGULY.

Glencore is part miner and part trader, making it hard to value.

The mining assets are easy to value. For the public ones, like Xstrata, owner of Canada’s Falconbridge, all you have to do is look at the share price. The value of non-public mining assets can be estimated by attaching a peer-group trading multiple to them.

The trading side is where things get tricky. Trading is a huge business at Glencore, accounting for more than a third of its 2010 earnings before interest, taxes, depreciation and amortization (EBITDA) of $6.2-billion; mining made up the rest.

What valuation to attach to this hybrid beast? That’s hard to say, because no directly comparable company exists. While trading oil, coal, wheat and other commodities can be hugely profitable, it can also be hugely risky. Trading profits, it turns out, can fall just as hard and fast as mining profits, though some investors might think otherwise.
Eric_Reguly  IPOs  Xstrata  Glencore  mining  traders  valuations 
october 2011 by jerryking
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20110405/RBCHINAMINMETALSATL
April 5, 2011 | Globe & Mail | ANDY HOFFMAN.
Minmetals wants Equinox. Equinox wants Lundin. The three-way battle will change the global map for copper
China  mining  mergers_&_acquisitions  M&A  Lundin  copper 
july 2011 by jerryking
Our world needs more Peter Munks - The Globe and Mail
MARGARET WENTE | Columnist profile | E-mail
From Saturday's Globe and Mail
Published Saturday, Jun. 11
Peter_Munk  Margaret_Wente  mining  Africa  corporate_social_responsibility  moguls 
june 2011 by jerryking
Zimbabwe Sets Deadline for Foreign Miners to Sell Stakes - WSJ.com
MARCH 28, 2011 WSJ By DEVON MAYLIE and FARAI MUTSAKA. Zimbabwe Shuts Out Foreign Miners
Chinese Firms Are Exempt as Government Gives Companies Until Sept. 25 to Sell Majority Stakes to Local Investors
Zimbabwe  mining  expropriations  indigenization 
april 2011 by jerryking
Commodities Report: Mining Start-Ups Look for Northern Exposure - WSJ.com
NOVEMBER 30, 2010 | | Phred Dvorak. The Toronto bourse
estimates Canada has snagged more than a third of the world's equity
financing by mining companies during the past 10 years, and 55% in the
first three-quarters of this year.

The flow of mining deals comes amid a boom in commodities prices that
has pushed gold and copper to records and silver to near 30-year highs.
Canada  Canadian  mining  finance  start_ups  TSX  stockmarkets  TMX  commodities  commodities_supercycle  bourses 
november 2010 by jerryking
Daniel Henninger: Capitalism Saved the Miners - WSJ.com
OCTOBER 14, 2010 | WSJ | By DANIEL HENNINGER. Capitalism
Saved the Miners
The profit = innovation dynamic was everywhere at the mine rescue site.
In an open economy, you will never know what is out there on the
leading developmental edge of this or that industry. But the reality
behind the miracles is the same: Someone innovates something useful,
makes money from it, and re-innovates, or someone else trumps their
innovation. Most of the time, no one notices. All it does is create
jobs, wealth and well-being. But without this system running in the
background, without the year-over-year progress embedded in these
capitalist innovations, those trapped miners would be dead. ...What's
needed now is a new American economic model that lets our innovators
rescue the rest of us.
innovation  Chile  mining  Daniel_Henninger  capitalism  dynamism 
october 2010 by jerryking
Africa on verge of investment bonanza - The Globe and Mail
Sep. 29, 2010 | Globe and Mail | Simon Avery — Investment
Reporter. In addition to financial services, prime growth sectors in
Africa include mining, construction and consumer goods. The mining of
iron ore has increased significantly in response to Chinese demand.
Breweries, phone companies and fast-food outlets are also seeing
revenues climb rapidly, but profit margins in the consumer sector will
remain razor-thin for a long time, Ms. Graham said.

One catalyst for African economic growth in recent years has been the
arrival of Chinese investors, who are building extensive infrastructure,
from roads to hotels, opening up countries such as Congo and Sierra
Leone where major Western investors have been hesitant to go, she said.
China considers Africa a key part of its 100-year industrialization plan
and is investing now to feed its resource needs for decades to come. It
is also buying African assets to reduce some of its huge surplus in
U.S. currency,
Simon_Avery  Africa  China  mining  financial_services  consumer_goods 
october 2010 by jerryking
The next commodities king
March 20, 2010 | globeandmail.com | by ERIC REGULY
mining  Xstrata  Glencore  Eric_Reguly  commodities  Vale  Marc_Rich 
april 2010 by jerryking
Strange Journey
February 2005 | The Walrus Magazine | by John Fraser
China  mining  internal_migration  Canada 
march 2010 by jerryking
Going home again
Dec 29, 2006. | Report on Business Magazine. pg. 92 | Gordon Pitts.
CEOs  Gordon_Pitts  interviews  prospects  JCK  philanthropy  mining  moguls  Franco-Nevada  Pierre_Lassonde 
november 2009 by jerryking
China's War for Ore - WSJ.com
JULY 15, 2009 | Wall Street Journal | by HOLMAN W. JENKINS, JR.
business-government_relations  China  iron  Australia  Holman_Jenkins  mining 
july 2009 by jerryking
Old-school investing calls for on-site inspections
31/08/06 G&M article by DALE JACKSON. Information Age has not deterred managers who like to visit companies.
mining  investing  due_diligence  ProQuest 
march 2009 by jerryking
InfoViewer: Ambition that led to a pot of Uruguayan gold
31-May-2005 Financial Times article by Adam Thomson profiling Chris Clark
entrepreneur  mining  gold  Uruguay 
february 2009 by jerryking
10 Million Reasons To Give Barrick A Hand With Its Silver
September 19, 2007 Canadian Press article by ANDY HOFFMAN
discussed how Barrick is offering $10-million (U.S.) to anyone who can
help the company extract the 180 million ounces of silver at its
Veladero gold mine in Argentina. Barrick's problem at Veladero is no
laughing matter. The gold in the deposit is relatively easy to mine but
the silver is sheathed in an impermeable layer of silica and has
resisted traditional processing methods such as leaching with cyanide.
Barrick  mining  silver  gold  prizes  bounties  innovation  contests 
february 2009 by jerryking
globeandmail.com - Renaissance Man
July/August 2008 ROB Magazine Andy Hoffman profile of Frank Guistra.
profile  inspiration  mining  networks  moguls  Frank_Guistra  Renaissance_Man  investors 
january 2009 by jerryking

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