Foreign element an integral part of mining activity across Canada

Over the years, Canada has “exported” much of its mining know-how and expertise. In return, it has benefited from the presence of overseas corporations willing to take a chance on the country, its people and resources. The foreign element is truly international, with representation from countries such as Britain, Sweden, Germany, France, Japan, Australia and the U.S. The type of mining activity ranges from grassroots exploration to ownership interests in smelters and refineries. One of Canada’s two major nickel producers, Falconbridge, is half owned by Trelleborg AB of Sweden. While an associated Trelleborg company, Boliden Canada, has maintained an office in Toronto for years, the acquisition by the Swedish firm of Falconbridge, in partnership with Noranda (TSE) in late 1989, allowed Trelleborg to “set up shop” in Canada in its own right.

Falconbridge, which is active internationally, not only has a major nickel mining operation at Sudbury, Ont., but also runs the Kidd Creek base metal mining-smelting-refining operation at Timmins, Ont.

One of the better known internationally owned mining outfits which has established an enviable reputation in Canada is Rio Algom (TSE), a 51.5% controlled subsidiary of metals giant RTZ Corp. of the United Kingdom. (RTZ, one of Britain’s largest companies, claims to have more than half of its mining assets in North America.) Rio’s main mining activities include production of uranium, copper, molybdenum, potash, tin and coal.

With ownership interests in a couple of major Canadian mining firms — Teck (TSE) and Cominco (TSE) — is Metall Mining (TSE), a 62.7 owned unit of Metallgesellschaft Canada, a subsidiary of the large German firm Metallgesellschaft AG. Metall, which operates out of Toronto, produces copper in Michigan, just south of the Canada-U.S. border, at its Copper Range mining and smelting facilities.

BP Canada (TSE), which has a major interest in the Selbaie copper-zinc-silver-gold mining operation west of Matagami, Que., is a 57%-owned unit of British Petroleum Co. of the United Kingdom. BP Canada is also the controlling shareholder of Hope Brook Gold (TSE), which operates a gold mine in Newfoundland.

In Manitoba, Hudson Bay Mining and Smelting, a unit of New Yorkbased Inspiration Resources (NYSE), whose parents include Anglo American Corp. of South Africa and De Beers Consolidated Mines, is a mainstay of the mining industry. HudBay mines and processes a variety of minerals, including copper and nickel.

A producer of copper and molybdenum on the west coast, at the Island Copper mine, and of nickel in northern Ontario is Utah Mines, a subsidiary of BHP-Utah Minerals International, which is a wholly owned unit of Broken Hill Proprietary Co. of Australia. BHP’s Canadian partner at the Redstone nickel mining operations in northern Ontario is Timmins Nickel (TSE).

Asarco Exploration Co. of Canada, a wholly owned unit of Asarco (NYSE), a large U.S. metals producer, is the operator of the Aquarius gold mine (currently on standby) east of Timmins, Ont.

A number of international mining firms, through subsidiaries, are active in Canada at the grassroots exploration level, including Gold Fields Canadian Mining, a wholly owned unit of Gold Fields Mining of New York, which is part of the United Kingdom-based Consolidated Gold Fields group.

Phelps Dodge Corp. of Canada, a wholly owned unit of Phelps Dodge (NYSE), the largest producer of copper in the U.S., resumed mineral exploration in different parts of Canada in 1989. The Canadian subsidiary recently announced the signing of an option agreement with Scotia Prime Minerals (ASE) whereby Phelps may earn an interest in base-metal properties on Cape Breton Island, N.S., by funding exploration work.

Active in Quebec is Serem Quebec, a unit of BRGM (Bureau de Recherches Geologiques et Minieres) of France. A prominent prospect at the moment among a group of properties covered under an exploration option agreement with VSM Exploration (ME) of Montreal is the Grevet zinc project northwest of Quevillon, Que., near Matagami.

In the Kirkland Lake area of northeastern Ontario, Battle Mountain (Canada), a wholly owned unit of Battle Mountain Gold (NYSE) of Houston, is earning a 70% interest in gold property from Queenston Mining (TSE).

With property interests in different parts of Canada is Hecla Mining Co. of Canada, a wholly owned unit of Hecla Mining (NYSE) of Idaho. The American parent also has a stake in Lucky Eagle Mines, an exploration company it formed with Agnico-Eagle Mines (TSE); Lucky’s main focus, north of the 49th parallel, is the Meadowbank gold prospect in the Northwest Territories.

Other companies with overseas connections which are active on the Canadian scene include Billiton Metals Canada, with Dutch ownership, and Kennco Explorations (Canada), a subsidiary of Utah-based Kennecott, which is part of the RTZ group of companies.