Inmet's Cobre Panama Copper Project

Copper miner Inmet Mining Corp is cautiously reviewing a renewed, $5.1-billion takeover bid for the company by rival First Quantum Minerals Ltd. First Quantum said it was now offering $72 per Inmet share, half in cash, half in stock. Although a hefty sum, this is not Quantum’s first offer. At a slightly lower bid, Quantum offered Inmet $4.9 billion in stock and cash at $62.50 per share at the end of last month.  Combining the two companies is said to result positively on the copper industry and the panama project, however no comment has been released by Inmet at this time.

At the end of last week, Inmet announced a 27-per-cent increase in reserves at its massive Cobre Panama copper project in Central America. The Toronto-based miner said late Thursday it has raised copper reserves at Cobre Panama to some 26 billion pounds. It also said it boosted gold reserves by 41 per cent, to some 7.3 million ounces.  By this increase, Inmet has now extended the estimated mine life at the project in Panama from 31 years to 40 years.

So what does this mean for the large miner? Well, they have their hands on one of the world’s largest copper projects in development. It also proves that copper demand around the world will remain strong into the future even if growth has slowed in other major markets.

This particular project will produce some 300,000 tonnes of copper per year, worth about $1.1-billion (U.S) at current prices. These numbers put the production parallel with giant mines in Chile and Peru.

Should you be interested in Inmet’s Panama Copper project please send your inquiries to recruit@teamcronos.com

Shortage of Experienced Engineers and Skilled Workers Looms

As qualified engineers and skilled labor grow in short supply, companies have resorted to luring experienced technical workers from the competition. Attractive compensation packages are the main bait, especially to those with 5 to 15 years of experience, as the mining and energy sectors scramble to meet demand from countries like China, India, Russia, and Brazil.

The shortfall of talent for those who have the technical expertise and leadership experience to hit the ground running have prompted consulting engineering firms to step up their hiring efforts. Consequently, there is cutthroat competition to get or retain talent. For instance, mining and energy companies are recruiting from other sectors; bigger and more lucrative companies hiring talent from smaller companies; and companies located in provinces actively seeking employees like Alberta are trying to fill their vacancies by recruiting from other provinces and overseas.  Unfortunately, hiring international talents also has its own hurdles. For starters, there is also a short supply of experienced engineers and skilled labor worldwide. And even when there are candidates who can fill the vacancies, getting their credentials recognized can be challenging.

Despite the fact that recruitment firms are intensifying their efforts to hire experienced engineers and technical workers, Engineers Canada predicts that there is going to be a national shortage of civil engineers in 2013. This comes at a time when demand for urban infrastructure like electricity, roads, and water has increased to about 18 percent in the first quarter of 2012. Without qualified personnel to do the job, infrastructure projects and consequently competitiveness suffers, declares the Canadian Chamber of Commerce.

The pendulum has swung to the candidate side and thus, companies are stepping up to get the best talent on board. Companies have become competitive as well as creative in coming up with good packages for their staff. As example, oil and gas firms that can afford it dangle compensation packages that are 30 to 50 percent higher than others. Other companies focus on their central location which enables workers to return home to their family everyday while still others are offering recreation facilities among other amenities. Companies are focusing on providing challenging projects, recognition for a job well done, competitive pay and promoting a supportive working environment.

Quebec’s Anti-Corruption Crackdown

Large corporations face major risks when bidding for construction contracts and while Quebec cracks down on questionable dealings in the industry, Pierre Duhaime of Montreal based SNC Lavalin is feeling the risk. The former SNC-Lavalin CEO was charged with fraud after allegedly approving $56M worth of untraceable payments to the company's major projects.

Rumoured to be the largest corporate scandal in Canadian history, Pierre Duhaime faces three charges of fraud, conspiracy to commit fraud and using forged documents. One of the projects related to these charges is Montreal's 1.3 billion dollar contract to design, build and maintain the McGill University Health Centre. Canadian police are focusing their investigation on $22-million in so-called "irregular" payouts authorized by SNC executives in order to win the McGill super hospital contract. The executives are also suspected of using a counterfeit document to cheat the Montreal University Health Centre during the bidding process for the contract between 2009 and 2010.

The scandal goes well beyond Canadian borders as SNC has global reach. Riadh Ben Aissa, the former SNC executive who led hundreds of construction projects worldwide is being held in a Swiss jail on similar charges. Aissa was arrested in April on charges of money laundering and corruption. Authorities in Canada and Switzerland have been conducting a widening search of the company' dealings, including dealings in Libya, focusing on $195 million in payments by SNC-Lavalin. The $139 million in payments is tied to a Swiss bank account in relation to mega-construction contracts in Libya. This is in addition to $56 million in "improper payments" on other international projects.

SNC has since tried to distance itself from the two executives, naming an outsider to replace Mr. Duhaime and distinguishing any foul play as the work of employees who are no longer with the company. So far this scandal has done little damage to the company' success at winning contracts. Its backlog continues to stand near an all-time high of nearly $10-billion. SNC Lavalin released a statement assuring its dedication to maintaining ethical standards of conducting business.

In the construction business, it is commonly known that winning contracts can be a real dilemma. Bribes are often common in less developed countries and if you don't pay them, the chances of winning the contract are slim. This is nothing new to Quebec's construction industry as the head of Quebec's anti-corruption squad called for "urgent action" to tackle collusion in the sector. The province has had an increase in allegations of bribery and corruption, bid rigging, false claims, labour and materials over-charging. Quebec's anti-corruption squad is cracking down on the construction industry including investigation of common contract and grant fraud.

For Further Information Please Visit:

http://news.nationalpost.com/2012/11/28/pierre-duhaime-ex-lavalin-ceo-charged-with-fraud/

http://www.huffingtonpost.ca/2011/09/27/quebec-building-industry-public-inquiry_n_984241.html