This contribution was inspired by the posting“Act now or miss out on opportunities, Hodgson warns”

Among others, Mr. Hodgson “….warned Aboriginal leaders at the summit that 20 years from now, commodity prices are expected to tumble and may not recover for years to come beyond that."After this is over, small remote mines won't be economical anymore," said Hodgson, adding demand will be met by recycled products and large, accessible deposits.

"The old saying that time is money has never been truer."

Hodgson said the government needs to cut approval periods in half, from an average of 10 years now down to five. If the time between an ore finds and beginning of production can be halved, Hodgson said that leaves 15 years for Northern Ontario to dig up as much ore as possible…”

The following news item will reinforce Mr. Hodgson’s concerns about the future of small remote mines:

UPDATE 1-Sherritt's profit lifted by coal, oil business

Posted on Oct 26, 11 08:41AM – Sherritt hub

Oct 26 (Reuters) - Diversified miner Sherritt International Corp said on Wednesday its third-quarter profit more than doubled, as strength in its coal and oil business offset price declines in nickel and cobalt.

Net income in the quarter ended Sept. 30 rose to C$45.5 million, or 15 Canadian cents a share, up from a year-earlier profit of C$22.5 million, or 7 Canadian cents.

Quarterly revenue rose 13 percent to C$466.4 million.

The company said primary construction at its Ambatovy nickel project in Madagascar is complete with all major process plant modules having been turned over to commissioning teams.

Sherritt said all areas of the project are either in pre-commissioning, commissioning, or start-up phase, and first production is expected to begin in the first-quarter of 2012…”

Ambatovy

A few points of concern to Noront shareholders:This mine is positioned to be among the world’s largest lateritic nickel mines. It already contributes significantly to Madagascar’s gross domestic product (GDP) and will provide important revenue to the country for years to come. As the Project will refine end products within Madagascar, it will generate additional local benefits, such as technology transfer, quality employment and greater economic returns.

Ambatovy Project at a GlanceThe Ambatovy Project is the largest capital project in Madagascar’s history. Once fully operational, it will have the annual capacity to produce 60,000 tonnes of nickel, 5,600 tonnes of cobalt and 190,000 tonnes of ammonium-sulphate fertilizer. Key facts include:

Major components:

• Mine site near Moramanga
• 220-kilometre pipeline to transport ore slurry to the plant site near Toamasina
• Plant site that will produce high-grade nickel and cobalt briquettes
• Construction/expansion of supporting infrastructure, including port facilities, new roads, railway lines,
• a tailings dam and power plant

Project life: 30 years, which includes a mine-reserve life of 27 years

Expected investment costs: approximately $4.5 billion

Peak employment during construction: over 10,000; 85% Malagasy

Expected employment during operations: approximately 2,300; 85% Malagasy

Expected total job creation during production: 13,000-15,000 direct, indirect and induced jobs,

Supporting 65,000 to 75,000 family members

Schedule: mechanical completion expected in late 2010; initial production expected to begin

In early 2012

Please note the 220-kilometre pipeline to transport ore slurry to the plant site near Toamasina. This mine was developed by Dynatec Corporation, a Canadian mining company with extensive mining and metallurgical expertise, and was acquired by Sherritt International Corporation April 20, 2007 under a Plan of Arrangement. Interesting to note, that the Ambatovy’ s Bankable Feasibility Study was prepared for Dynatec by the same engineering group which designed and constructed the plant for Sherritt International’s Consortium, and as I suspect the same group was also involved with the development of NORONT’s slurry pipeline study.

A few interesting points to the First Nations in Ontario's Far North:

To paraphrase Mr. Hodgson: "The old saying that time is money has never been truer."

He was too diplomatic or far too polite to mention that capital normally goes where it is welcome and where a reasonable return on investment can be expected.

Mr. Hodgson described the impact a single mine can have on a local economy.

In the following I would like to present an actual example of what benefits and opportunities a new mine created by a Canadian led Consortium to a people far from our shores:

As the Project will refine end products within Madagascar, it will generate additional local benefits, such as technology transfer, quality employment and greater economic returns.

• Forecasted payments to the Government of Madagascar over 30 years: approx. $2.9 billion. (Based on a nickel price of $8/lb, a cobalt price of $12/lb and 2.5% inflation).

• Forecast GDP contribution: approximately $100 million a year to the government; in addition, job creation, spinoffs for local business, and investments in infrastructure, training, education, small-business development and healthcare will also contribute to the GDP – well beyond payments to government

Highlights of social and environmental investments include:

• Specialized training programs that will enable Malagasies to fill most operating positions in

the future

• Best-in-class environmental management and conservation program aimed at ensuring no

net loss of biodiversity – and striving for a net gain

• More than 16,000 hectares of land planned for conservation or multiple use – 9,500 hectares

of which is earmarked for strict conservation

• Long-term commitment to improve the standard of living of resettled villagers through multi-faceted socio-economic investments

• Improvements to rural thoroughfares that provide villagers in 20 remote communities with better access to markets and services

• Local business support – through mentorship, training and capacity building aimed at improving

the quality of products and services, as well as internal and financial management systems

• Creation of a supply chain that offers local individuals and businesses opportunities to provide goods and services to meet the ongoing needs of the Ambatovy Project

The Ambatovy Project is committed to maximizing national employment and building the technical and managerial skills of local employees. Thousands of Malagasy workers have received construction, technical and management training. This investment in skills programs will help ensure that future operations are run largely by Malagasy employees and managers.

Short-term training for construction, as of December 2008:

• Approximately 11,000 training sessions for 6,100 local workers
• 3,300 health and safety training classes for pipeline workers

Specialized training for operations:

In Madagascar:

• First wave: 80 Malagasy students in Antananarivo and Toamasina are receiving six-month courses in electrical, welding, industrial, mechanics and pipefitting

• Second wave: 74 Malagasy students will receive the same training in 2009

• Five Canadian experts are coaching Malagasy instructors to offer specialized courses, including millwright, industrial electricity, welding, pipefitting and boiler-making trades.

• In addition to training, the Project has provided $183,000 worth of upgrades and equipment to a public polytechnic school in Antananarivo and a training centre in Toamasina

Overseas:

• The Project has provided 38 Malagasy students with one-year internships and technical training in Canada at the Northern Alberta Institute of Technology in the province of Alberta and at a community college in the province of Quebec

• Third-wave training: once the Project reaches the production phase

• Establishment of a training centre in Toamasina for the following trades: millwright, industrial electricity, welding, pipefitting, boiler-making. Initially, the centre will be open only to Project workers, but in the future all Malagasies will be given the opportunity to attend

• Ongoing health and safety training for all workers.

(End of Page 5)…..yet the list would go on….

Much of the above data was excerpted from a 30 – page publication “Supporting Growth and Development in Madagascar – August 2009” available from Sherritt, and SNC-Lavalin, or www.ambatovy.com

Best regards,

durban1