Hope on the horizon

At the annual meeting of the Mining Association of Canada, retiring president Alfred Powis, head of Noranda Mines, reviewed the obstacles and difficulties that have beset the industry in recent years.

Incoming President Mervyn Upham then summarized the MAC’s objectives for the coming year. Prominent among these is improving communication with the federal and provincial governments.

The concerns of the industry are regularly presented to both levels of government with frequency, clarity and force. But there has been little response, and so little has happened. Why? One reason is that, as far as natural resources are concerned, both levels of government have been at loggerheads. As a result, mining suffers under the highest tax rate of any sector of the economy.

‘Lead balloon’ takes off

You can pretty well retire those old metaphors about lead balloons and tin cans as both metals surged to all-time highs during the past week. Lead was so strong it became more valuable than zinc, which rarely happens.

Lead closed at a peak of 424 lbs. per tonne for a gain of 25 lbs. in London Metal Exchange trading, whereas tin closed at 6,110 lbs. for a 70-lb. gain after touching a peak of 6,130 lbs.

All this sparked a rash of U.S. producer price increases on Feb. 28 so that, by the end of the day, virtually every lead miner had increased the price by 2 to 31 per lb. This follows the 1 increase that spread throughout the industry a month ago.

Clark to speak at PDAC

Opposition Leader Joseph Clark will speak on March 7 at a luncheon sponsored jointly by the Prospectors & Developers Association of Canada and the Canadian Club. The event is part of the former’s 45th annual convention in Toronto.

“Mining: hope for the future” is the theme of this year’s convention.

Gold reaches 18-month high

The price of gold has rebounded to its highest level in 18 months, reaching US$148.30 per oz. at presstime. In Canadian currency, the price works out to $155 per oz.

As a result, any Canadian who bought gold at the end of 1976 has not only made a good gain on its appreciation but has also profited by hedging against the fall of the Canadian dollar. The latter is now down to its lowest level in almost seven years.

The yellow metal got much of its impetus from the recent auction of International Monetary Fund reserves. In all, 524,400 oz. of bullion were sold to seven successful bidders at an average price of US$146.51.