Executive Committee: 1998/99 Fiscal Year
Chairman
Keith Spence
Alliance Pacific Resources
Tel: 416-362-0007
Fax: 416-362-0008
Vice-Chairman
Jane Spooner
Micon International
Tel: 416-362-5135
Fax: 416-362-5763
Secretary
Jacqueline Allison
Credit Suisse First Boston
Tel: 416-983-4058
Fax: 416-307-9512
Treasurer
Joyce Bish
Midland Walwyn Capital
Tel: 416-369-2081
Fax: 416-369-4002
MES Sub-Committees: 1998/99 Fiscal Year
Members of the sub-commitee were as follows :
Education Committee
Andy Abraham *
Micon International
Tel: 416-362-5135
Fax: 416-362-5763
* Subsequently resigned to avoid conflict of interest perception
Craig Roberts
First Marathon Securities
Tel: 604-443-4027
Ore Reserve Committee
John Postle
Roscoe Postle Associates
Tel: 416-947-0907
Fax: 416-947-0395
Bernie Haystead
CIBC
Tel: 416-956-6984
Fax: 416-956-8347
Discussion Group
David Boynton
Canaccord Capital
Tel: 416-869-3304
Fax: 416-869-3876
Steve Braun
Nesbitt Burns
Tel: 416-359-5283
Fax: 416-359-6585
Paul Rollinson
Deutsche Morgan Grenfell
Tel: 416-682-8052
Fax: 416-682-8080
STANDING COMMITTEE ON ORE RESERVES
The Committee had another fruitful year. This was the year that the OSC/TSE task force officially accepted the CIM's ore reserve definitions (as amended from time to time). I would personally like to thank the Committee and its Co-Chairman, John Postle and Bernie Haysted, for their splendid work. The following is the report for the year from the Committee:
On February 2nd, The Mining Standards Task Force (MSTF) released the final report, "Setting New Standards." One of the primary recommendations of the report was that the Canadian Institute of Mining, Metallurgy and PetroleumÕs definitions for categories of resource and reserves be adopted by Canadian Securities Administrators and used as a basis for National Instrument 43-101. One of the issues the Committee had with the Interim Report was that it did not recognize that the CIM definitions would be amended on an ongoing basis in response to comments and in light of what was happening in the international forum. The Committee is pleased that the MSTF final report includes the wording "as amended from time to time." The MSTF report also encourages the CIM to expand the reserve definitions to include reporting of non-metalliferous mineral resources not currently covered by the existing definitions.
John Postle presented a paper updating the International Reserve Initiative at the Fall 1998 meeting of the CIM Industrial Minerals conference in Vancouver.
We have received a copy of the new AUSIMM code and this has been circulated to the Committee.
We have received a draft of the combined CMMI and UN reserve definitions proposal and this has been circulated to the members of the Committee for comment. The CMMI/UN draft resulted from the joint meeting held in Geneva, last September, which was attended by John Postle.
The Paper "The Status of Resources and Reserves Reporting" has been accepted for presentation at the CIM AGM in Calgary and the text is well advanced. The paper outlines the status of resource and reserve reporting in the major resource based countries and provides an update on the International Reserve Definition Initiative. The paper will be presented as part of the Mineral Economics technical sessions.
A first draft of revised definitions was circulated to Committee members.
THE DISCUSSION GROUP
In 1998/1999, MES organized a series of "Discussion Group" meetings in keeping with our tradition of inviting speakers to give topical presentations to the Toronto mining community on a monthly basis in an informal setting. The program runs on a strictly break-even basis, with venue costs being covered by corporate sponsors and from the modest proceeds of "soda" sales. A summary of meetings held over the course of the fiscal year is as follows:
Speaker: Robert A. Gannicott, Director, Aber Resources
Topic: The Diamond Market and its Importance to Emerging Canadian Producers
Sponsor: Canaccord Capital
Speaker: Manfred Lindvall, Environmental Manager, Boliden AB
Topic : The Accident at Apirsa, Spain - Environmental Impact, Tailings Removal, Rehabilitation Measures and Plans for Restart
Sponsor: Micon International
Speaker: Mikhail Burstein, Manager, InfoMine
Topic: Base Metals Production and Consumption in the CIS
Sponsor: Cominco Ltd.
Two more sessions are being planned for the current season.
1998 MONTREAL CENTENNIAL AGM
MES organized a series of economic presentations at the Montreal Centennial AGM. The presentations were held on Wednesday (Technical sessions) and Thursday (Special financing session) respectively with Mr. Keith Spence being Chairman of the Wednesday sessions and Mr. Robert Halupka being the Chairman of the Thursday sessions.
The Wednesday Technical sessions, which were held jointly with the Multinational Investment Guarantee Agency (MIGA) of the World Bank, included the following topics:
The Implications for New Mine Developments in Canada
The outlook of Palladium and Platinum
The outlook for Gold
The impact of indirect mineral Trade on copper and other metals
How option pricing can help the Mine Manager make decisions
Feasibility studies in Mining
Two MIGA/World Bank presentations
The Thursday presentations were in the form of a financial seminar. Topics included:
Trends in Project finance for Mining
Due Diligence in mine financing
Due Diligence for mine projects - a legal perspective
Political risk - EDC
Insuring mining risk 1999 MINERAL ECONOMICS SYMPOSIUM MES held another successful Symposium on January 25, 1999 in Toronto. The Symposium was entitled "Shifting Sands - Changing Investment Climate for the International Mining Industry." Approximately $20,000 was raised from the event. These funds will be allocated to our education projects. Approximately 150 delegates, including mining executives, investment bankers, corporate bankers, mineral, consultants economics professionals and members of the MES attended the one-day Symposium.
The event, which was covered by the Toronto TV and newspaper media, included presentations on "Social Risk" and the "Outlook for Gold and Base Metals." Key presenters included:
Beatrice Labonne (Director, DESA United Nations), Dr. Stephen Davis (Group Geographer, Western Mining), Paul Warner (Institutional Relations Director, Compania Minera Antamina, Rio Algom), Ted Yates (Director, Market Research, Cominco Ltd). Oyvind Hushovd (President and CEO, Falconbridge), Gordon Bacon (Vice President, Inco Ltd.), Vivian Danielson (Editor, The Northern Miner) and Bill Prast (Strategic Risk Management Ltd).
AON Reed Stenhouse Inc
Rio Algom Limited
Meridian Gold
Royal Bank
TD Securities
Natural Resources Canada
PricewaterhouseCoopers
Aur Resources
Homestake
Export Development Corporation
Freeport-McMoran Copper and Gold
Barrick Gold
Pearson Hofman and Associates
Cominco
Bank of Montreal
Goldcorp
Micon International
Southern Era
Breakwater Resources
The Symposium committee which was chaired by Jane Spooner, included the following:
- Andrew Abraham
- Jacqueline Allison
- Mike Cook
- Guy Le Bel
- Wes Roberts
- Keith Spence
- Larry Smith
- Raffy Turla
- Ted Yates
Thanks again to the Committee for the wonderful work!
EDUCATION COMMITTEE
CIM Adjunct Professorship Program at the University of Toronto
This program was launched in January 1995 when representatives of the Toronto segment of the Mineral Economics Society and CIM Toronto Branch presented cheques totalling $10,000 to the Dean of Engineering at the University of Toronto. At this time a commitment was made to U of T to provide a total $100,000 commitment at $20,000 per year over five years for funding two adjunct professorships, one in mining engineering, the other in mineral exploration.
The $100,000 initiative was instrumental in the decision not to scrap the geological and mining engineering program at the University. The final installment is due in 1999. The Committee is now re-evaluating our Education Program with the aim of broadening and diversifying the program among other educational entities and endeavours.
Mine Economics Education at UBC
1997 was a milestone year for the Vancouver chapter of MES. In October of 1997, MES Vancouver presented a cheque to the University of British Columbia for $8,000 as the first payment on a $40,000 commitment over five years at the rate of $8,000 per year. The funds were used to purchase mine modeling software used in a mine valuation course and to provide honorarium for lecturers
Other Education Activities
MES provided a grant to the University of Toronto Mining Engineering students to attend the "University Mining Games" at a Northern Ontario University. Additionally, we provided written support for their bid to host the "University Mining Games in the year 2000." We are pleased to note that they won the bid to host these important games.
I would like to thank Craig Roberts, Ted Yates, Rob Halupka and Andy Abraham for their input on the CommitteeÕs work. Andy Abraham, the Committee Chair, had to resign early in order to avoid a perception conflict of interest in view of his accepting an adjunct professorship at the University of Toronto.
1999 CALGARY AGM
The MES will be hosting a one day mineral economics technical session at the Calgary AGM. The presentations, which will be co-chaired by J.C. St Amour and Keith Spence, are entitled "Towards a new Regulatory Framework and an outlook for Minerals." J.C. St Amour must be congratulated for his dedicated work on this event, despite the fact that he is a relatively new member of the society.
MINING MILLENNIUM 2000
In addition to being jointly responsible with the PDAC for technical sessions related to economic issues, we have been involved with the Mining Millennium 2000 Committee on marketing and promotion. The MES's experience in marketing symposia would certainly be helpful to the Mining Millennium 2000 organization.
REGULATORY AND TORONTO STOCK EXCHANGE (TSE)/ONTARIO SECURITIES COMMISSION (OSC) MATTERS
The Society was actively involved with the CIM Head Office providing recommendations to the TSE/OSC Task Force on Mining Standards. In addition to ore reserve definitions, MES provided valuable input on other areas relating to establishing of new standards for the industry. For the upcoming year, MES will also be actively involved in issues relating to "VALUATION" of mineral properties.
OTHER ACTIVITIES
In addition to our MES activities, we also assisted the CIM on its Audit Committee (Keith Spence served as Chairman) and also provided input on other CIM matters of interest to CIM membership as a whole.
CONCLUSION
I will like to personally thank all the members of my executive, the staff of the CIM Head Office, Jennifer Barham of the Toronto CIM office, MES sub-committees and other members of CIM National Council, which were all instrumental in making fiscal 1998-1999 a year of accomplishments !!
Respectfully submitted,
Keith N. Spence
Chairman, Mineral Economics Society
