Yuanjiacun Iron Mine, founded by Taiyuan Iron and Steel (Group) Co. Ltd. (TISCO) and located in Lanxian, Lvliang City, Shanxi province of China, has geological reserves of 1.25 billion tons, making it the largest open-pit metallurgical mine in Asia. In fact, the ore properties of the mine belong to the Anshan type sedimentary metamorphic type magnetic hematite mixed lean iron ore. It has not been developed on a large scale since its discovery in 1958 due to its special ore properties: a mix of many types of ores, high hardness, complex composition, finely disseminated iron material and difficulty in grinding and separation.
The iron ore concentration plant of Yuanjiacun Iron Mine began operating in 2012 with the installation of 3 10.375.49m Metso SAG mills. Because the special ore properties result in a short service life and frequent breakage of the lining, the SAG mills used to shut down. During the first three years in operation, the mine tested a variety of mill linings from several manufacturers; ultimately, it realized that the quality and service life requirements would need more than just improvements to the mill lining material or production process the design of the lining would also have to be considered.
There are presently many mills of a similar size in operation in China. I have visited and surveyed many mines, and most of them are using mill linings that are of low quality. We tried to use the linings that perform well in other large mines, but the results did not meet our requirements, explainsBai Zhijun, Chief of Mineral Processing, Yuanjiacun Iron Mine.
Metso introduced metallic mill linings to the Chinese market in 2015. TISCO believed that the Metso optimization solution could prevent breakage. During the first four sets of feed head liner testing, liner breakage was effectively avoided. Meanwhile, in close cooperation with TISCO, Metso collected data on site and communicated with TISCO in an effort to further optimize the feed head liners. The improved feed head liners were installed in August 2015.
So far, we have used 19 sets of Metso feed head liners. The service life is now extended to 65 days from 60 days and, most importantly, no breakage. This will make it easier for us to schedule maintenance, Mr. Bai adds.
Metsos feed head liners have a long service life and are stable for more than 60 days. The service life of other brand liners varies between 58-60 days, without the possibility to make improvements. Under the same circumstances, the Metso liners are more stable, saysLi Jinjun, Chief of Machinery and Power Department, Yuanjiacun Iron Mine.
Based on the successful results of the feed head liners, TISCO and Metso decided to work together to optimize the shell lining. I have strong confidence in Metsos engineering capability, says Mr. Bai. They follow up on the wear profile every time a lining is changed, and they carefully listen to our needs and problems. Every proposed modification is communicated with us to ensure that our requirements are met as much as possible. Production is arranged only after approval by TISCO.
For the shell lining optimization solution submitted to TISCO at the beginning of 2016,Zhang Tiebin,the product support manager for Metso mill lining, explained: Metso optimizes the charge motion of the material in the SAG mill by changing the lifting angle and height of the shell lining. This way, the direct media-to-liner impact can be reduced to minimize liner wear and improve grinding efficiency. In the design process, we take into full consideration the types of feed materials, mill speed, maintenance plan, safety, impact and material selection etc. Metso has improved the material properties, such as hardness and thickness, so that its hardness and toughness correspond to the working conditions. As a result, we have improved the resistance to breakage and increased the service life of the shell lining.
I have seen Metsos simulation software. It is obvious that the face angel of the lifter is of great importance in securing an optimal charge motion. It determines the design. The technology to make the ideal shape and profile of the liners is unique to Metso, Mr. Bai expresses his appreciation of Metsos optimization capability.
From installation of the first shell lining in July 2016 to the third set currently in operation, optimization of the shell lining has never stopped. TISCO has measured that the service life of the shell lining has increased from 70 days to 75 days. Our requirement for mill linings is stable quality and easy replacement to ensure efficient maintenance, says Mr. Bai. Another advantage of the Metso mill lining is the easy disassembly, no matter how high the hardness or the thickness. This is due to its low and almost negligible impact deformation.
Our current target is to ensure that the linings are not breaking and to then steadily increase the service life. Our uptime was 87.6% in 2016. Our requirement for uptime depends on the needs of the market. Our target is 89.91% this year. To achieve this goal, the quality of the lining is one factor, but production organization, failure rate control and repair time reduction, etc are also closely linked. For example, we can reduce maintenance frequency and duration by replacing the grate and shell lining simultaneously. The increased wear life of the shell lining from 70 to 75 days without breakage has been a big factor in the higher uptime. If the wear life is kept stable, we will use a half set of shell lining less per year.
In order to help the customer to achieve these goals, Metso continued in-depth studies to further optimize the SAG mill linings. At the end of September 2016, Metso provided a grate optimization solution. The new type of grate has changed the sectional shape of the discharge opening to prevent blockage caused by small grinding media. Furthermore, it is designed so that the shell lining and the grates can be replaced at the same time.
Mr. Bai pointed out: The performance of the Metso grate is now stable. But the replaced grates are very thick and have too much waste.Zhang Yumei, the services sales manager of Metso China, acknowledged this and responded by saying: Metsos goal is to ensure our customers production. Therefore, a safe design with no breakage is the primary factor. We will carry out rigorous research and verification according to TISCOs requirements and steadily promote the optimization in order to achieve continuous improvements.
Metsos innovative mill lining optimization design has reached staged achievement at TISCO by stages. The performance of the lining is stable, and the average wear life is extended by 36%, which effectively reduces the unexpected downtime and thereby ensures that the maintenance and repair work keeps pace with the plan and contributes a lot to a higher uptime.
Mr. Bai concludes by saying, We are all satisfied with Metsos mill linings. We believe in Metsos design and look forward to the next optimization results. At the same time, we are extremely appreciative of Metsos efforts. Only Metso has been able to give us such advancements in the mill lining.
Taiyuan Iron and Steel (Group) Co. Ltd. is a super iron and steel giant in China, as well as the worlds largest producer of stainless steel. It operates five self-owned mines and has rich experience in mining and mineral processing with advanced mining equipment and strong technical strength. In 2013, under the severe situation with the global steel market, TISCO produced 9.98 million tons of steel and achieved sales of 146 billion yuan with a profit of 0.5 billion yuan, ranking it among the leaders in the industry.
The successful installation by Outotec of one 53m diameter high rate thickener at TISCO Jianshan Iron Mine underlines the significant benefits of high rate thickening compared to conventional thickening. This one Outotec thickener has replaced two existing thickeners each of 53m diameter and achieved an increased tailings capacity in just one thickening stage. Since the installation, the resulting overflow liquor is of excellent quality, and easily reusable as process water. This installation by Outotec was the first of its kind in China, with more than 1000 installations globally.
Taiyuan Iron & Steel (Group) Co., Ltd. (TISCO) is a large iron and steel producer in China and an advanced stainless steel producer. As the largest subsidiary company of TISCO Group, the TISCO Mining Company sites include the Jianshan Iron Mine, Ekou Iron Mine, Yuanjiacun Iron Mine (under construction - 2009), Dongshan Limestone Mine and Daguanshan Dolomite Mine.
TISCOs Jianshan mine lies in Loufan County, Shanxi province, China, 115km from the city of Taiyuan. Since founded in 1992, Jianshan has become the primary iron concentrate supplier for TISCO. The beneficiation process uses three stages of crushing, three stages of grinding, five stages of magnetic separation and anionic reverse flotation.
The old primary tailings thickening circuit at Jianshan consisted of a two-stage thickening process, requiring more time and energy to operate. Four tailings streams, including fine solids from reverse flotation (tailings stream No. 2-5), were split into two 53m diameter conventional thickeners, where they were thickened to an underflow density around 35%w/w solids. The underflow from both thickeners were combined with tailings stream No.1, a coarser solids stream from the magnetic separators, before being split into another two 53m diameter conventional thickeners. The final underflow at 40-45% solids was pumped to the tailings dam, with overflow from each thickener recycled to the plant.
Originally, the raw ore capacity in 2002 at Jianshan was 6Mtpa, with 3.3Mtpa tailings flow. Following the 2nd expansion in 2006, the plant capacity was increased to 9Mtpa, with tailings increased to 4.87Mtpa, necessitating improvements to the tailings system to cope with the increased capacity.
In 2006 TISCO commissioned Outotec in Shanghai to conduct test work for the optimum design for Jianshans iron tailingsthickening. Comprehensive dynamic test work was carried out,using a 94mm diameter bench-scale test unit. The underflowyield stress was measured with a Haake rheometer to enablemodeling of the rake torque requirements.
During the test work, underflow densities ranging from51.5~58.4%w/w solids were obtained with the 94mm diametertest rig, operating at flux rates ranging from 0.20~0.40t/m 2 hr.Flocculant consumption was approximately 20~40g/t.
Outotec developed the high rate bench-scale test thickenerfor use as a dynamic test method, with feed and flocculantcontinuously fed into the test thickener. The unit is operated atthe same process conditions as the full-scale unit, hence theprocess simulates the performance of the high rate thickener.This has been verified by more than 1000 cases of test workcorrelating closely with successful thickener installations thatfollow. Underflow and overflow are analyzed to provide data todetermine the sizing and performance of the thickener.
Outotecs high rate thickener (HRT) was the optimum thickener solution as the TISCO plant process required higherthroughput, and a higher underflow density. Alternative choices might have been a high compression thickener (HCT) or paste thickener (PT), both of which produce higher underflow density, but with a slurry yield stress of just 113Pa at 58.4% underflow density, these choices were not required. The key to a successful high rate thickener installation is the effective use of flocculant with correct feed dilution to achieve a consistently high throughput (tonnes per hour per square meter) at high underflow density.
After installation, the new 53m Outotec high rate thickener receives flow from tailings stream No.1 plus all flow fromthe plant expansion. Tailings streams No.2-5 from the oldsystem still go into two shallow tank wall thickeners. The53m Outotec thickener was required to produce a nominalcapacity of 3.67Mtpa and maximum throughput of 4.65Mtpa,but in practice, the throughput has reached approximately5.26Mtpa. From initial testwork, however, it is evident itshould be possible that an even higher throughput of morethan 7.00Mtpa could be achieved. The new Outotec thickenerhas been successful in overcoming the previous processlimitations. In the former tailings circuit, two stages of the thickening process were needed to treat tailings at 3.3Mtpa.Now just one high rate thickener can treat more than 5.2Mtpa,to produce 53-60%w/w solids underflow density, whichrepresents an improvement of between 9-15% in pumpingefficiency and tailings system capacity, according to Tisco.As underflow is now at a higher % solids, this reduction inpumping volume results in improved pumping efficiency.
Significant operational savings have resulted after the installation. Power consumption has dropped as a result of fewer and more efficient thickener drives and a lower underflow pumping rate. According to a spokesperson from TISCO, The electricity cost saved in one year was around RMB 1.5 million.
Overflow clarity was dramatically improved from 8.0% w/w to consistently less than 150ppm. The much-improved overflow clarity has allowed process water to be captured more efficiently and reused as process water. This had a compounding benefit to the process, which saw improvements in flotation, and less iron fines lost to tailings.
In addition to the high throughput and clear overflow liquor, the Outotec high rate thickener has also been a success with the TISCO operations and maintenance staff, as it provides consistent trouble-free operation and maintenance. The thickener utilizes the Outotec central column drive system, incorporating a hydraulic power pack, multi-pinion, and slew ring drive. It also offers three levels of drive safety protection, i.e. rake lift, electrical trip protection and hydraulic relief valve physical protection, which result in a safer and more reliable tailings disposal system.
With clean overflow liquor and higher density underflow solids, this thickener is consistently effective in handling the required duty. Outotecs process technology experience has again proven to be of a high standard, with the solution for the Jianshan tailings system producing many benefits for the plant process.
Many important geographical factors involved in the location of individual industries are of relative significance, e.g., availability of raw materials, power resources, water, labour, markets and the transport facilities.
But besides such purely geographical factors influencing industrial location, there are factors of historical, human, political and economic nature which are now tending to surpass the force of geographical advantages. Consequently, the factors influencing the location of industry can be divided into two broad categories i.e.
The significance of raw materials in manufacturing industry is so fundamental that it needs no emphasising. Indeed, the location of industrial enterprises is sometimes determined simply by location of the raw materials. Modem industry is so complex that a wide range of raw materials is necessary for its growth.
Further we should bear in mind that finished product of one industry may well be the raw material of another. For example, pig iron, produced by smelting industry, serves as the raw material for steel making industry. Industries which use heavy and bulky raw materials in their primary stage in large quantities are usually located near the supply of the raw materials.
It is true in the case of raw materials which lose weight in the process of manufacture or which cannot bear high transport cost or cannot be transported over long distances because of their perishable nature. This has been recognised since 1909 when Alfred Weber published his theory of location of industry.
The jute mills in West Bengal, sugar mills in Uttar Pradesh, cotton textile mills in Maharashtra and Gujarat are concentrated close to the sources of raw materials for this very reason. Industries like iron and steel, which use very large quantities of coal and iron ore, losing lot of weight in the process of manufacture, are generally located near the sources of coal and iron ore.
Some of the industries, like watch and electronics industries use very wide range of light raw materials and the attractive influence of each separate material diminishes. The result is that such industries are often located with no reference to raw materials and are sometimes referred to as footloose industries because a wide range of locations is possible within an area of sufficient population density.
Regular supply of power is a pre-requisite for the localisation of industries. Coal, mineral oil and hydro-electricity are the three important conventional sources of power. Most of the industries tend to concentrate at the source of power.
The iron and steel industry which mainly depends on large quantities of coking coal as source of power are frequently tied to coal fields. Others like the electro-metallurgical and electro-chemical industries, which are great users of cheap hydro-electric power, are generally found in the areas of hydro-power production, for instance, aluminium industry.
As petroleum can be easily piped and electricity can be transmitted over long distances by wires, it is possible to disperse the industry over a larger area. Industries moved to southern states only when hydro-power could be developed in these coal-deficient areas.
Thus, more than all other factors affecting the location of large and heavy industries, quite often they are established at a point which has the best economic advantage in obtaining power and raw materials.
Tata Iron and Steel Plant at Jamshedpur, the new aluminium producing units at Korba (Chhattisgarh) and Renukoot (Uttar Pradesh), the copper smelting plant at Khetri (Rajasthan) and the fertilizer factory at Nangal (Punjab) are near the sources of power and raw material deposits, although other factors have also played their role.
No one can deny that the prior existence of a labour force is attractive to industry unless there are strong reasons to the contrary. Labour supply is important in two respects (a) workers in large numbers are often required; (b) people with skill or technical expertise are needed. Estall and Buchanan showed in 1961 that labour costs can vary between 62 per cent in clothing and related industries to 29 per cent in the chemical industry; in the fabricated metal products industries they work out at 43 per cent.
In our country, modem industry still requires a large number of workers in spite of increasing mechanisation. There is no problem in securing unskilled labour by locating such industries in large urban centres. Although, the location of any industrial unit is determined after a careful balancing of all relevant factors, yet the light consumer goods and agro-based industries generally require a plentiful of labour supply.
Transport by land or water is necessary for the assembly of raw materials and for the marketing of the finished products. The development of railways in India, connecting the port towns with hinterland determined the location of many industries around Kolkata, Mumbai and Chennai. As industrial development also furthers the improvement of transport facilities, it is difficult to estimate how much a particular industry owes to original transport facilities available in a particular area.
The entire process of manufacturing is useless until the finished goods reach the market. Nearness to market is essential for quick disposal of manufactured goods. It helps in reducing the transport cost and enables the consumer to get things at cheaper rates.
It is becoming more and more true that industries are seeking locations as near as possible to their markets; it has been remarked that market attractions are now so great that a market location is being increasingly regarded as the normal one, and that a location elsewhere needs very strong justification.
Ready market is most essential for perishable and heavy commodities. Sometimes, there is a considerable material increase in weight, bulk or fragility during the process of manufacture and in such cases industry tends to be market oriented.
Water is another important requirement for industries. Many industries are established near rivers, canals and lakes, because of this reason. Iron and steel industry, textile industries and chemical industries require large quantities of water, for their proper functioning.
Significance of water in industry is evident from Table 27.3. Also it requires 36,400 litres of water to produce one kwh of thermal electricity. Further, it is worth noting that water used in industries gets polluted and is therefore not available for any other purpose.
Site requirements for industrial development are of considerable significance. Sites, generally, should be flat and well served by adequate transport facilities. Large areas are required to build factories. Now, there is a tendency to set up industries in rural areas because the cost of land has shot up in urban centres.
Climate plays an important role in the establishment of industries at a place. Harsh climate is not much suitable for the establishment of industries. There can be no industrial development in extremely hot, humid, dry or cold climate.
The extreme type of climate of north-west India hinders the development of industries. In contrast to this, the moderate climate of west coastal area is quite congenial to the development of industries. Because of this reason, about 24 per cent of Indias modem industries and 30 per cent of Indias industrial labour is concentrated in Maharashtra-Gujarat region alone.
Cotton textile industry requires humid climate because thread breaks in dry climate. Consequently, majority of cotton textile mills are concentrated in Maharashtra and Gujarat. Artificial humidifiers are used in dry areas these days, but it increases the cost of production.
Now-a-days alternative raw materials are also being used because of modern scientific and technological developments. Availability of electric power supply over wider areas and the increasing mobility of labour have reduced the influence of geographical factors on the location of industries.
The non-geographical factors are those including economic, political, historical and social factors. These factors influence our modern industries to a great extent. Following are some of the important non- geographical factors influencing the location of industries.
Modem industries are capital-intensive and require huge investments. Capitalists are available in urban centres. Big cities like Mumbai, Kolkata, Delhi, and Chennai are big industrial centres, because the big capitalists live in these cities.
Government activity in planning the future distribution of industries, for reducing regional disparities, elimination of pollution of air and water and for avoiding their heavy clustering in big cities, has become no less an important locational factor.
There is an increasing trend to set up all types of industries in an area, where they derive common advantage of water and power and supply to each other the products they turn out. The latest example in our country is the establishment of a large number of industrial estates all over India even in the small-scale industrial sector.
It is of relevance to examine the influence of Indias Five Year plans on industrial location in the country. The emergence of suitable industries in south India around new nuclei of public sector plants and their dispersal to backward potential areas has taken place due to Government policies.
The state policy of industrial location has a greater hand in the establishment of a number of fertiliser factories, iron and steel plants, engineering works and machine tool factories including railway, shipping, aircraft and defence installations and oil refineries in various parts in the new planning era in free India.
We may conclude by noting that the traditional explanation of a location of industry at a geographically favourable point is no longer true. Location of oil refinery at Mathura, coach factory at Kapurthala and fertiliser plant at Jagdishpur are some of the results of government policies.
Industries tend to develop at the place of their original establishment, though the original cause may have disappeared. This phenomenon is referred to as inertia, sometimes as geographical inertia and sometimes industrial inertia. The lock industry at Aligarh is such an example.
Efficient and enterprising organisation and management is essential for running modem industry successfully. Bad management sometimes squanders away the capital and puts the industry in financial trouble leading to industrial ruin.
Bad management does not handle the labour force efficiently and tactfully, resulting in labour unrest. It is detrimental to the interest of the industry. Strikes and lock-outs lead to the closure of industries. Hence, there is an imperative need of effective management and organisation to run the industries.
Establishment of industries involves daily exchange of crores of rupees which is possible through banking facilities only. So the areas with better banking facilities are better suited to the establishment of industries.
Modern industrialisation is synonymous with the development of iron and steel industry. The extent of industrialisation in any country is usually measured in terms of per capita consumption of steel. This is because all other industries have to depend on steel out of which machinery of any kind is manufactured. As soon as the process of machine production gets momentum, the rate of industrialisation gets strengthened. Thus, in the dynamics of industrial growth in any country, the growth of iron and steel industry is undoubtedly crucial.
It is rather curious that in developing the two key industriescotton manufactures and iron and steel goodsthat laid the basis of the British industrial revolution, the role of the Englishmen were marginal compared to the part played by the Indians.
Industrialisation in India during the British regime started its half-hearted journey. Machine-building and capital goods industries, whose prosperity greatly depends on this basic and key industry, did not make their appearance for a considerable span of time. However, the industry really made its headway between the two World Wars (1919-1938).
During the pre-British period, levels of income, demand, and costs of production were insufficient to stimulate local innovations in iron and steel-making. The British regime also did not provide a congenial climate to have this core industry. Rather, the industry experienced open and unconcealed opposition from the Home manufactures. Against this backdrop, the development of iron and steel industry was bound to be chequered.
The old Indian native iron-smelting industry, which was at one time a glorious industry, had been practically destroyed by competition with British iron. The iron industry that existed in some regions was in a moribund condition. British iron and steel industry made its impact felt in the Indian market greatly. Yet the possibility of development of iron and steel industry was enormous.
Certain abortive attempts were made in the second half of the 18th and the first half of the 19th century. The most substantial effort was the abortive Proto Novo Steel and Iron Company in South Arcot by the end of 1830. This was promoted by a former company servant named Josiah Marshall Heath.
However, this Porto Novo enterprise never got off the ground. Heaths iron works were acquired by the East India Iron Company in 1853. Unfortunately, this Company also was dissolved in 1874. The basic reason behind this unsuccessful attempt was that there were some Englishmen who preferred a doubtful return from iron industry to a safe profit from trade (in tea or jute) or from such established industries as jute or cotton manufacture.
Meanwhile, India became a large importer of iron and steel as soon as the demand for this crucial input rose with the development of railways, various public works, and the rise of modern industry after mid-1850. Import substitution strategy was, therefore, called for to take advantage of this growing demand and high import prices. Against this backdrop, the Bengal Iron Works Company was formed in 1874 but the Company was shut down in 1879.
However, to develop a modern iron industry the Government bought up this defunct firm in 1881. The Bengal Iron and Steel Company (BISCO) were incorporated in England in 1889. As some concessions (like reduction of royalty charge on coal and commitment to buy 10,000 tons of iron annually from 1897) were granted to this industry, apparently it stood the Company in good stead.
The average annual production of pig iron rose to 35,000 tons in 1901. Thus the closing years of the 19th century saw the beginning of the manufacture of iron and pig ironthe basis of the iron and steel industry. In the next step, it was desirable to develop a modern domestic steel industry, particularly in view of the great Indian demand for steel.
BISCO decided to undertake steel production and such became a reality in 1904 when it opened steel works. But the baby died in the cradle and the Company closed down permanently in 1906. However, annual production of pig iron expanded. The Industrial Commission, 1916-18, estimated production of pig iron per month at 100,000 tons. In 1919, BISCO was reorganized with enlarged capital as the Bengal Iron Company went on producing pig iron in India on modern lines.
Setting up a modern steel industry infested with multifarious technological and financial problems was an altogether different proposition from the unplanned and gradual growth of cotton and jute textile industry, and required entrepreneurship of a different order. However, the credit for the development of large scale manufacture of steel in India goes to the pioneering spirit, foresight, and enterprise of J. N. Tata who originally started his carrier as a merchant and as a promoter of cotton mill in India. J. N.
Tata was probably the most creative of the first generation of Indian industrial entrepreneurs. It was J. N. Tata who supplied the bold and original idea which flowered into TISCO in 1907, of course, after his death in 1904. TISCO became a success because the family had an enterprising zeal. Its success is a legend in India. Tatas grandiose dream of erecting a steel plant took shape in 1907 when Tata Iron and Steel Company was founded with Indian capital at Sakchi (renamed Jamshedpur after the World War I) in erstwhile Bihar. The Company started production of pig iron in 1911 and steel ingots in 1912. The steel works turned out excellent steel. The World War I came in and it poured money into their coffers.
One may raise a question at this point: What caused this sudden and radical change of official outlook which had in the past been characterised by overt indifference to develop the steel industry? Amartya Sen argued that the change in Government policy was associated with the replacement of British steel in the Indian market by Belgian and Continental steel. Amiya Bagchi states that displacement of British iron and steel products by imports from the European continent had taken place on private account.
The Government rarely bought anything but British-made iron and steel products. It was this fear of the Indian market falling in the hands of other European countries which prompted the Government to encourage steel enterprise in India. There is a reason to believe that changes in the attitude and the policy of the Government were caused by political and strategic considerations of the British Indian Empire as a whole.
The World War I created an enormous demand for munitions while transport bottleneck came to such a pass that virtually foreign supplies came to standstill. Tata eagerly seized the opportunity and undertook the manufacture of steel shell. With its order booked full to bursting, the iron and steel industry displayed its credibility.
Closely on the heels of their success, Tatas embarked upon Greater Extensions programme after the War and they were completed in various stages, viz. in 1929,1933, and by the beginning of the Second World War, TISCOs capacity rose from 1,25,000 tons during the War I to 800,000 tons of finished steel output. The Company made handsome profits. The paid up capital, number of workers, etc., increased phenomenally. Jamshedpur emerged as an industrial town and as a beacon of hope to the rising class of the Indian bourgeoisie.
After the World War I, when Tatas wanted to carry out extension scheme, many new concerns were floated. The chief among them was the setting up of the Indian Iron and Steel Company in 1918 at Hirapur in West Bengal. However, prosperity of the iron and steel industry crashed after the termination of the World War I.
Along with the extension scheme of TISCO, new capacity abroad was also adding to world supply. Thus, TISCO faced a vigorous foreign competition. International iron and steel prices tumbled in 1921-22 to a level far below the cost of production in India. Profits of TISCO fell to 4 p.c. in 1921-22 and no dividends could be paid in 1923-24.
The Company now applied for tariff protection against the very low prices of its foreign competitors to the Tariff Board. The Tariff Board argued that TISCO was an infant firm in an infant industry and required time to develop those inherent advantages which would quickly free the Company from the need for further protection. Accordingly, protection was granted in 1924 for a period of three years. Protective duties of various rates and kinds and some specific and some ad valorem, on a large number of products were imposed.
However, this indigenous industry could not cope with the unanticipated and exceptionally foreign price declines consequent upon the depression in the steel industry in European countries, a general depreciation of Continental currencies, and a rise in the sterling value of rupee from Is. 4d. to Is. 6d.
TISCO applied for additional protection but the Government offered bounties at the rate of Rs. 20 per ton of finished steel, the total subsidy not exceeding Rs. 5 million in the aggregate from 1st October 1924 to 30th September 1925. In 1925, the Tariff Board proposed that bounties were to be reduced to Rs. 1,800 per ton on 70 p.c. of ingot production for a period of 18 months. However, the actual bounties granted by the Government was Rs. 12 per ton. Yet, TISCO expressed unhappiness since it thought that the assistance was inadequate. Nationalists unequivocally complained of the half-hearted protection of the steel industry.
The question of tariff again came before the Tariff Board in 1927 and the Steel Industry Protection Act came into force in April 1927. In the new Act, the period of protection was fixed at seven years, bounties were withdrawn and duties on imports were lowered. This new Act smacked of Imperial Preference or British preference into the tariff since preferential treatment was accorded to British manufacturers which would be subject to the basic duties vis-a-vis continental steel subjecting to additional duties in tandem with basic duties.
This was the first time when British manufacturers got preferential treatment. When the subject for renewal of protection came up after the expiry of the stipulated 7 years period in 1933, it was clear that protection was still necessary for the industry. Protection was renewed in 1934 and remained in force until 31th March 1947.
The new scheme of protection introduced in 1927, however, helped the steel industry. The steel industrythe prize boy of Indian protectionmade good progress under the protective umbrella, though halting and mutilated it was. In spite of low protective duties and the abolition of bounties there was an increase in output, fall in costs, and increase in consumption in India.
As the international situation improved considerably after 1934, TISCO made steady progress and produced in 1939 three-fourths of the steel consumed in India. It emerged as the cheapest large-scale producer of pig iron in the world. As the World War II intervened, iron and steel industry made a rapid stride as the demand for arms and ammunitions fanned out. The industry really enjoyed this surcharged atmosphere and responded by raising the output of pig iron, finished steel, and steel ingots through the intensive use of the existing plant machinery.
While the bulk of the output produced was meant for domestic consumption, nearly rd. of the total output in 1938-39 was exported to Japan, UK, and the USA. But this trend could not be maintained because of the growing demand for steel in many sectors thereby pushing an upward thrust in its imports. Only, the beginning of the World War II caused a slump in import.
Unfortunately, despite high demand for steel for expansion during the World War II the Government showed a strange unconcern. The causes of this apathy to develop the defence production of the country were deeply rooted in the night watchman attitude of the then Government. Regarding TISCO, a historian commented that the Second World War had less impact on TTSCOs fortunes than the First.
The then Government showed less concern to develop Indian steel industry than it had a quarter of a century before. This loss of dynamism of the government in an hour of great opportunity set the steel industry back many years. In the post-war period, obsolescence to equipments became a great threat. Resource crunch of the industry resulted in heavy backlogs in rehabilitation and modernisation. As a result, production declined and, by 1949, it touched the ever lowest figure of 9.76 lakh tons.
After the World War I, not only TISCOs production increased phenomenally, but global output also increased. As a result, prices of iron and steel in the international market began to decline shortly after 1921-22. TISCO, thus, had to face this serious global competition. To save this infant industry from the onslaught of European competition, TISCO received protection in 1924. Meanwhile, the international market, which had earlier worked rather efficiently, collapsed.
Many steel producing countries adopted the dual policy of price maintenance at home and dumping abroad. This policy threw the international iron and steel market out of gear. As a result, the price of steel imported into India between 1923 and 1932 (net of duty) fell by about 60 per cent. Despite TISCOs steadily increasing efficiency, tariff protection remained a continuing necessity. This is how Morris D. Morris argues.
The discriminating protection offered by the Government in 1924 to the steel industry, though not an unmixed blessing, helped in promoting the progress of the industry. However, protection granted to this industry in 1924 was inadequate against dumping. Measures were taken and the Steel Protection Act of 1927 came into force that provided preferential treatment for British manufactures against continental products. The differential duties levied in 1927 have been said to be instrumental in delaying the rapid development of the Indian industry.
It is argued by some that for the timely help of the Government in the form of protection, the industry could not have survived the crisis of post-war competition. However, Amiya Bagchi has argued that while the cautious policy of the Government of India may have had a favourable influence on the efficiency of operations of TISCO, it had an inhibiting effect on the growth of the steel industry and the growth of ancillary industries.
It would be unfair if we say that the Government was interested only in the survival of TISCO and did not pay any attention to the development of ancillary industries. It did provide some protection to existing steel plants and some ancillary industries. But, it refused to guarantee protection to any new industry or firm whose establishment was proposed. For instance, Bird and Martin Burn were refused protection. It was argued by the Government that the investing publics were not in a mood to put up any money for iron and steel works unless there was a reasonable chance of financial success.
Soon, however, the market for steel collapsed following depression. Had the projected USCA Ltd. (The United Steel Corporation of Asia represented by Bird and Co.) been launched with its large scale productive capacity, TISCO or USCA Ltd. would have been dwarfed by depression.
It is difficult to see how Government could have ensured the existence of two large steel works in India in thirties without artificially propping them up with enormous bounties. However, a bolder policy of protection towards ancillary industries might have ensured a more comfortable existence for TISCO by creating a larger market for its products. Because of the refusal of protection to new industries, some of the firms which greatly depended on steel supplies faced virtual extinction following the mighty post-war slump.
What was required at that time was an integrated approach thirties without artificially propping them up with enormous bounties. However, a bolder policy of protection towards ancillary industries might have ensured a more comfortable existence for TISCO by creating a larger market for its products.
Because of the refusal of protection to new industries, some of the firms which greatly depended on steel supplies faced virtual extinction following the mighty post-war slump. What was required at that time was an integrated approach. Without taking an integrated approach suited to the interdependence of industries, the Government examined the case for protection of each industry independently.
But without a severe drain on the public exchequer, it could not have, in any case, ensured the survival of two steel works (Bird and Company and Martin and Company) of TISCO size. It may be added that there was a serious kink in the armor of protection. This is nothing but the preferential treatment of British products to sub-serve the interests of consumers that remained undigested by any sensible Indian.
Despite all these, tariffs did not achieve impressive expansion in the iron and steel industry. Tomlinson argues that all over the world governments in the inter-war years showed determination to subsidize steel industries. So was the Government of India. In order to survive, this crucial industry needed protection by bigger amounts badly so as to ensure a privileged position as a major supplier to the Government of India.
Some less important industries like the plantation industries (indigo, rubber, coffee, cinchona, tea, etc.) were established along the coal mining industry. Some of the industries performed well. But the overall industrial production was hopelessly poor especially modern industries and uneven in view of the countrys needs and the absorption of labour in the organised sector.
At the time when the power was transferred to an Indian Government the country had a peculiar pattern of economic organisation. It was marked by a limited development of modern industry, the growth of an export sector, more or less isolated from the rest of the economy, stimulated little or no growth outside its limits, and the development of agriculture was achieved mainly through expansion within the framework of traditional techniques and organisation. India in the mid-twentieth country was thus a typical case of economic backwardness.
MONTRAL, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (Osisko Royalties) (OR: TSX & NYSE) and Barolo Ventures Corp. (Barolo) (BVC.H: TSX-V) are pleased to provide certain corporate updates on their previously-announced spin-out transaction, further to their joint news release dated October 5, 2020, which will result in a Reverse Take-Over of Barolo (the RTO) under the policies of the TSX Venture Exchange (the TSX-V). In this news release, references to the Resulting Issuer or Osisko Development are to Barolo after the closing of the RTO.
On October 23, 2020, a definitive amalgamation agreement (the Amalgamation Agreement) in respect of the RTO was executed among Osisko Royalties, Barolo, Osisko Development Holdings Inc. (Osisko Subco), a wholly-owned subsidiary of Osisko Royalties incorporated under the Business Corporations Act (British Columbia) (the BCBCA), and a wholly-owned subsidiary of Barolo (Barolo Subco).
The Amalgamation Agreement provides for, among other things, a three-cornered amalgamation (the Amalgamation) pursuant to which (i) Osisko Subco will amalgamate with Barolo Subco under Section 269 of the BCBCA to form one corporation (Amalco), (ii) the securityholders of Osisko Subco will receive securities of the Resulting Issuer in exchange for their securities of Osisko Subco, (iii) Amalco will be merged into Barolo (by way of a voluntary dissolution) to form the Resulting Issuer, and (iv) the transactions will result in a RTO of Barolo in accordance with the policies of the Exchange, all in the manner contemplated by, and pursuant to, the terms and conditions of the Amalgamation Agreement.
Pursuant to the Amalgamation Agreement, the common shares of Barolo (Barolo Shares) outstanding immediately prior to the effective time of the Amalgamation will be consolidated on the basis of one (1) post-consolidation Barolo Share for each sixty (60) pre-consolidation Barolo Shares (the Consolidation) and the name of Resulting Issuer will be changed to Osisko Development Corp.. Completion of the proposed RTO is subject to, among other things, receipt of all necessary regulatory and shareholder approvals.
Concurrent with the announcement of the RTO, Osisko Royalties and Barolo entered into an engagement letter dated October 5, 2020 with Canaccord Genuity Corp. and National Bank Financial Inc., on behalf of a syndicate of underwriters (collectively, the Underwriters), pursuant to which the Underwriters have agreed to sell, on a bought deal private placement basis, 13,350,000 subscription receipts of Osisko Subco (the Subscription Receipts) at a subscription price of CDN $7.50 per Subscription Receipt (the Issue Price) for gross proceeds of CDN $100 million (the Financing).
The Financing is expected to close tomorrow, October 29, 2020, with the gross proceeds of the Financing to be held in escrow pending the satisfaction of the escrow release conditions, which include the satisfaction of the conditions to the closing of the RTO, the conditional approval of the TSX-V to list the common shares of the Resulting Issuer (Resulting Issuer Shares) issuable under the RTO and Financing, and certain other customary conditions. It is expected that the net proceeds from the Financing will primarily be used for the exploration and development of the Cariboo Gold Project and the San Antonio Gold Project, and general working capital purposes following completion of the RTO.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction. No securities may be offered or sold in the United States or in any other jurisdiction in which such offer or sale would be unlawful prior to registration under the U.S. Securities Act of 1933 or an exemption therefrom or qualification under the securities laws of such other jurisdiction or an exemption therefrom.
The Board of Directors of the Resulting Issuer is expected to include: Sean Roosen (Chair); Charles Page (Lead Director); John Burzynski; Joanne Ferstman; Michle McCarthy; Duncan Middlemiss; and ric Tremblay.
Management of the Resulting Issuer is expected to include Sean Roosen (Chair and Chief Executive Officer); Chris Lodder (President); Luc Lessard (Chief Operating Officer); Benoit Brunet (Chief Financial Officer and Corporate Secretary); Franois Vzina (Vice President,Technical Services); Chris Pharness (Vice President, Sustainable Development); Maggie Layman (Vice President, Exploration); and a further technical team that will be transferred from Osisko Royalties to Osisko Development.
Mr. Sean Roosen is the Chair of the Board of Directors and Chief Executive Officer of Osisko Royalties. As at the Transactions closing, he will be the Executive Chair of Osisko. Mr. Roosen was a founding member of Osisko Mining Corporation (2003) and of EurAsia Holding AG, a European venture capital fund.
Mr. Roosen has over 30 years of progressive experience in the mining industry. As founder, President, Chief Executive Officer and Director of Osisko Mining Corporation, he was responsible for developing the strategic plan for the discovery, financing and development of the Canadian Malartic mine. He also led the efforts for the maximization of shareholders value in the sale of Osisko Mining Corporation, which resulted in the creation of Osisko Royalties. Mr. Roosen is an active participant in the resource sector and in the formation of new companies to explore for mineral deposits both in Canada and internationally.
In 2017, Mr. Roosen received an award from Mines and Money Americas for best Chief Executive Officer in North America and was, in addition, named in the Top 20 Most Influential Individuals in Global Mining. In prior years, he has been recognized by several organizations for his entrepreneurial successes and his leadership in innovative sustainability practices. Mr. Roosen is a graduate of the Haileybury School of Mines.
Mr. Charles E. Page is a corporate director and has more than 40 years of experience in the mineral industry. During his career, Mr. Page has held progressive leadership roles in developing strategies to explore, finance and develop mineral properties in Canada and internationally. Mr. Page worked at Queenston Mining Inc. in various capacities, including President and Chief Executive Officer, from 1990 to its sale to Osisko Mining Corporation in 2012.
Mr. Page holds a Bachelor of Science degree in Geological Science from Brock University and a Master of Science degree in Earth Science from the University of Waterloo. He is a Professional Geologist registered in the province of Ontario and Saskatchewan, and is also a Fellow of the Geological Association of Canada.
Mr. John Burzynski currently serves as the Executive Chairman and Chief Executive Officer of Osisko Mining Inc., having served in those capacities since August 2015, and has been a director of Osisko Mining Inc. (formerly Oban Mining Corporation) since incorporation in February 2010. Mr. Burzynski is currently a director of Osisko Gold Royalties Ltd and, from June 2014 to August 2016, also served as the Senior Vice President, New Business Development. Mr. Burzynski holds a Bachelor of Science (Honours) degree in Geology from Mount Allison University, and a Master of Science in exploration and mineral economics from Queens University. He is a registered P.Geo. in the province of Qubec, and has over 30 years of experience as a professional geologist on international mining and development projects.
Ms. Joanne Ferstman is a corporate director and has been Lead Director of Osisko Royalties since 2014. She has over 20 years of progressive experience in the financial industry, where she was until 2012 President and Chief Executive Officer of Dundee Capital Markets Inc., a full service investment dealer with principal businesses that include investment banking, institutional sales and trading, and private client financial advisory. She has held several leadership positions within Dundee Corporation and DundeeWealth Inc., where she was responsible for strategic development, financial and regulatory reporting and risk management.
Ms. Michle McCarthy is the President of McCarthy Law Professional Corporation, and President and Chief Executive Officer of Independent Review Inc. She is an experienced corporate director and has significant experience in corporate restructuring and regulatory compliance. Ms. McCarthy was the Chair of the boards of Sandy Lake Gold Inc., Big 8 Split Inc., TD Split Inc. and 5Banc Split Inc. She also served as a director and member of the Audit Committee and Risk Management Committees at Equity Financial Holdings Inc. She is the former Chair of the Toronto Port Authority and member of the Small Business Advisory Committee of the Ontario Securities Commission. From 1997 to 2002 she was the Chief Legal Officer, Director Compliance and Corporate Secretary for Deutsche Bank Canada and Deutsche Bank Securities and created its Schedule III bank branch (1997-2002) and consulted on the reorganization of UBS Bank (Canada) and the establishment of UBS AG Canada Branch. From 2007 to 2011, she was the Chief Legal Officer, Corporate Secretary, Chief Privacy Officer, Ombudsman and Head of Compliance for GMAC Residential Funding of Canada, ResMor Trust and Ally.
Ms. McCarthy serves on the boards of the McMichael Foundation, The Rekai Centres and the Honourable Company of Freemen of the City of London in North America. She also served on the boards of Canadas National Ballet School, the St. Georges Society of Toronto, the University of Toronto (Trinity College) and the Humber Memorial Hospital.
Mr. Duncan Middlemiss, P.Eng, is the President and Chief Executive Officer and a director of Wesdome Gold Mines Ltd. Prior to joining Wesdome Gold Mines Ltd., he was President and Chief Executive Officer and a director of St. Andrew Goldfields Ltd. until its acquisition by Kirkland Lake Gold Inc. in January 2016. Mr. Middlemiss joined St. Andrew Goldfields Ltd. in July 2008 as General Manager and Vice President Operations, later assuming the role of Chief Operating Officer. He was appointed as President and Chief Executive Officer in October 2013. He earned a B. Sc. in mining engineering at Queens University in 1989 and worked for Inco Limited (now Vale Canada Limited) as Mine Design Engineer until 1995. At that time, he joined Barrick Gold Inc. at their Holt-McDermott Mine, where he held the position of Chief Mine Engineer. In 2002, he joined Foxpoint Resources (now Kirkland Lake Gold Inc.) where he was instrumental in overseeing the rehabilitation, development, and commencement of production at the Macassa Mine beginning as Engineering & Production Manager, and later as Mine Manager. Mr. Middlemiss is a native of Kirkland Lake, Ontario and has extensive experience in the mining of gold deposits in the Abitibi Greenstone Belt. Mr. Middlemiss is the Past Chair of the Ontario Mining Association and remains active in the organization.
Mr. ric Tremblay has more than 25 years of mine building and mine operations experience, mostly at underground mining operations, culminating in his current position as Chief Operating Officer of Dalradian Resources Inc. and in his previous position as General Manager at Canadas largest gold mine, Canadian Malartic, which is jointly owned by Agnico-Eagle Mines Limited and Yamana Gold Inc. In 2014, his team achieved a record of more than 500,000 ounces of production at a cost under $700/oz. Previously, Mr. Tremblay was General Manager at IAMGOLDs Westwood Project, where he participated in closure of the Doyon Mine and construction of the Westwood Project. Mr. Tremblay was charged with completing the permitting, scoping study, feasibility study, surface construction and underground development at Westwood. Further, while at IAMGOLD, he was General Manager of the Sleeping Giant Mine, an underground mine using multiple mining methods (long hole, shrinkage, room and pillar). His mandate was to optimize production and return the mine to profitability. Previous positions included Underground Superintendent at Cambiors Mouska Mine, Underground Captain/Project Engineer/Senior Supervisor over a seven-year period at Cambior and Barricks Doyon Mine, where he was involved in mine-planning, construction, development and production. Mr. Tremblay graduated from Laval University with a B.Sc. in mining engineering and mineral processing.
Mr. Chris Lodder has more than 30 years experience working on and managing Greenfields exploration, Brownfields exploration, and mine development with major and junior mining companies worldwide with the majority of his career focused in the Americas. He has led teams responsible for discoveries of compliant resources containing more than 34 million ounces of gold. He was President, CEO and a Director of Barkerville Gold Mines from 2016 until its acquisition by Osisko Gold Royalties in 2019. Chris is also the President of Talisker Exploration Services Inc., an Ontario based mining and exploration services company founded by Mr. Lodder and two partners in 2010, whose principal clients are Osisko Gold Royalties and their associated companies. From 1999 to 2010 he was South American Exploration Manager and later the Americas Exploration Manager for AngloGold Ashanti and prior that he had various management roles with Queenstake Resources in South America. Chris is a volunteer director on the board of the Barkerville Heritage Trust which oversees the management of the Barkerville Historic Town and Park which is a living museum which preserves the history of the Cariboo Gold Rush.
Mr. Luc Lessard is a mining engineer with more than 30 years of experience designing, building and operating mines. He was previously Chief Operating Officer of the Canadian Malartic Partnership (owned jointly by Agnico Eagle and Yamana), and prior to that was the Chief Operating Officer and Senior Vice President of Engineering and Construction for Osisko Mining Corporation where he was responsible for the design, construction and commissioning of the world class Canadian Malartic gold mine. During his career, Mr. Lessard has worked on many open pit and underground mine builds and prior to Osisko Royalties, Mr. Lessard was Vice President of Engineering and Construction for IAMGOLD and General Manager, Projects for Cambior Inc. Mr. Lessard is President, Chief Executive Officer and Director of Falco Resources Ltd. and also sits on the Board of Directors of Nighthawk Gold Corp. and Osisko Metals Incorporated.
Mr. Benoit Brunet is currently Vice President Business Strategy at Osisko Gold Royalties. Prior to joining Osisko Royalties, he was part of the Qubec Private Equity group of the Caisse de dpt et placement du Qubec, one of the largest North American institutional investors where he helped deploy $700 million in the mining sector across the province of Qubec.He was overseeing investments totaling approximately $1.5 billion and known for having structured innovative financial instruments for some of the largest mining projects in the region.Prior to joining the Caisse de dpt et placement du Qubec, Mr. Brunet worked at PricewaterhouseCoopers LLP for the assurance group in Montral. Mr. Brunet holds a CPA designation, an undergraduate and graduate degree in public accounting from the Universit du Qubec Montral.
Mr. Franois Vzina is a Mining Engineer with 20 years of experience in mining industry. He has extensive experience in both surface and underground mining operations, having worked at various mining sites in Canada, Mexico and Finland.
Mr. Vzina was the Technical Service Manager for Agnico-Eagle Mines Limited and was responsible for overseeing the completion of the feasibility studies of LaRonde II, Pinos Altos and Kittil. Mr. Vzina participated in the construction and commissioning of Pinos Altos as Mine Development Manager and Kittil as Mine Operations Manager. He later joined Osisko Mining Corporation and participated in the construction of the Canadian Malartic mine and serve as Mine Operations Manager for over 5 years. Mr. Vzina is recognized for his innovative project development strategies and mining optimization. Since the start of his career, Mr. Vzina has been responsible for the design and engineering of four mines and participated in the construction and development of two other mines. Mr. Vzina pursues his passion by getting involved with universities and colleges by regularly giving lectures on the mining industry.
Mr. Chris Pharness is an environmental professional with 25 years of environmental and resource management experience in British Columbia and has been with Barkerville since 2013. Mr. Pharness breadth of experience includes mining, forestry, oil and gas and large scale construction projects, with extensive involvement in fish and wildlife management based research and project management. Much of Mr. Pharness work and personal history have allowed him to build close relationships with Indigenous Nations, local communities, and regulatory agencies in British Columbia.
Ms. Maggie Layman is a professional geologist with 14 years mineral exploration experience in diverse ore deposits throughout Canada. Previously as Barkervilles Exploration Manager, Ms. Layman led the Barkerville team on the Cariboo Gold Project through systematic exploration with technical teams and ensuring compliance of drill programs. Prior to joining Barkerville, Ms. Layman worked as a drill manager and project geologist for Vale and Independence Gold Corp. Ms. Layman holds a B.Sc. from Memorial University of Newfoundland, is registered as a Professional Geologist with the Association of Engineers and Geoscientists of British Columbia and is an active volunteer with the AME Indigenous Relations and Reconciliation Committee.
The following table sets out certain preliminary pro forma financial information for the Resulting Issuer assuming completion of the RTO. The following information should be read in conjunction with, and is qualified in its entirety by, the pro forma financial statements of the Resulting Issuer to be included in the Form 3D2 ( Information Required in a Filing Statement for a Reverse Takeover or Change of Business ) (the Filing Statement), which will be available in due course on SEDAR ( www.sedar.com ) under Barolos issuer profile.
Pursuant to the RTO, Osisko Royalties is expected to receive 100,000,000 Resulting Issuer Shares at a deemed price of CDN $7.50 per share, in exchange for the transfer of the contributed assets (valued at CDN $750 million) to the Resulting Issuer.
The Resulting Issuer is expected to be owned approximately (i) 88% by Osisko Royalties, (ii) 11.8% by the holders of Subscription Receipts, and (iii) 0.2% by the current holders of Barolo Shares, after giving effect to the RTO and the Financing. Immediately following closing of the RTO, the only insiders of the Resulting Issuer are expected to be Osisko Royalties (as a greater than 10% securityholder), together with the directors and senior officers of the Resulting Issuer.
For further information on the particulars of the RTO, including the support and approval of Barolo shareholders and the conditions to the completion of the RTO, please refer to the joint news release of Osisko Royalties and Barolo dated October 5, 2020. The full particulars of the RTO, the contributed assets and the Resulting Issuer will be described in a Filing Statement prepared in accordance with the policies of the TSXV. A copy of the Filing Statement will be available in due course on SEDAR ( www.sedar.com ) under Barolos issuer profile.
Investors are cautioned that, except as disclosed in the Filing Statement to be prepared in connection with the RTO, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of Barolo should be considered highly speculative. Completion of the RTO is subject to a number of conditions, including, but not limited to, TSX-V acceptance, closing of the Financing and if applicable, disinterested shareholder approval. Where applicable, the RTO cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Barolo may seek waivers or exemptions from certain listing requirements of the TSX-V in connection with the RTO, including the requirement to obtain a sponsor for the RTO and the Issue Price of the Subscription Receipts under the Financing. However, there can be no assurance that any waivers will be obtained. If a waiver from the sponsorship requirement is not obtained, a sponsor will be identified at a later date. No deposit, advance or loan has been made or is to be made in connection with the RTO.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed RTO and has neither approved nor disapproved the contents of this news release. The common shares of Barolo will be halted pending further filings with the TSX-V.
Barolo does not intend to seek shareholder approval for the RTO (other than as noted below in relation to certain corporate matters relevant to the Resulting Issuer), as (i) the RTO is not a related party transaction within the meaning of MI 61-101 or the policies of the TSX-V and no other circumstances exist which may compromise the independence of Barolo, (ii) Barolo is listed on NEX, (iii) the Resulting Issuer is not expected to be subject to a cease trade order or otherwise suspended from trading on completion of the RTO, (iv) shareholder approval of the RTO itself is not required under corporate or securities laws, and (v) a comprehensive news release announcing the RTO as required under Exchange Policy 5.2 ( Change of Business and Reverse Takeovers ) is being issued hereof.
Barolo has, however, called a special meeting of its shareholders to be held on November 20, 2020 to approve certain corporate matters relevant to the Resulting Issuer. Certain supporting shareholders of Barolo, representing an aggregate of 12 million Barolo Shares (or approximately 86% of the outstanding Barolo Shares), have entered into a voting support agreement with Osisko Royalties in support of the RTO, and have agreed to vote such Barolo Shares in favour of the matters to be considered at the special meeting of Barolo shareholders to be held on November 20, 2020.
Osisko Royalties is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko Royalties holds a North American focused portfolio of over 135 royalties, streams and precious metal offtakes. Osisko Royalties portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada. Osisko Royalties also owns a portfolio of publicly held resource companies, including a 14.6% interest in Osisko Mining Inc., 17.6% interest in Osisko Metals Incorporated and a 18.3% interest in Falco Resources Ltd.
Barolo is a public company organized under the laws of the Province of British Columbia, whose shares are listed for trading on the TSX-V. Barolo was previously engaged in the acquisition, exploration and development of mineral properties in Canada and the United States, but currently does not have an active business, and is investigating new business opportunities.
Certain statements contained in this news release may be deemed forward looking statements within the meaning of applicable Canadian and U.S. securities laws. These forward looking statements, by their nature, require Osisko Royalties and Barolo to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward looking statements. Forward looking statements are not guarantees of performance. Words such as may, will, would, could, expect, believe, plan, anticipate, intend, estimate, continue, or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward looking statements.Information contained in forward looking statements, including with respect to future production of mines, is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including managements perceptions of historical trends, current conditions and expected future developments, public disclosure from operators of the relevant mines, as well as other considerations that are believed to be appropriate in the circumstances.Osisko Royalties and Barolo consider their respective assumptions to be reasonable based on information currently available, but cautions the reader that their assumptions regarding future events, many of which are beyond the control of Osisko Royalties and Barolo, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect Osisko Royalties and Barolo, and their respective businesses.
For additional information with respect to these and other factors and assumptions underlying the forward looking statements made in this news release concerning Osisko Royalties, see the section entitled Risk Factors in the most recent Annual Information Form of Osisko Royalties which is filed with the Canadian securities commissions and available electronically under Osisko Royalties issuer profile on SEDAR (www.sedar.com)and with the U.S. Securities and Exchange Commission and available electronically under Osisko Royalties issuer profile on EDGAR (www.sec.gov).The forward looking statements set forth herein concerning Osisko Royalties reflect managements expectations as at the date of this news release and are subject to change after such date. Osisko Royalties and Barolo disclaim any intention or obligation to update or revise any forward-looking statements, whetheras a resultof new information, future events or otherwise, other than as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Industry refers to an economic activity that is concerned with production of goods, extraction of minerals or the provision of services. Thus we have iron and steel industry (production of goods), coal mining industry (extraction of coal) and tourism industry (service provider).
Raw Materials: Industries may be agro based, mineral based, marine based and forest based depending on the type of raw materials they use. Agro based industries use plant and animal based products as their raw materials. Food processing, vegetable oil, cotton textile, dairy products and leather industries are examples of agro-based industries.
Mineral based industries are primary industries that use mineral ores as their raw materials. The products of these industries feed other industries. Iron made from iron ore is the product of mineral based industry. This is used as raw material for the manufacture of a number of other products, such as heavy machinery, building materials and railway coaches.
Size: It refers to the amount of capital invested, number of people employed and the volume of production. Based on size, industries can be classified into small scale and large scale industries. Cottage or household industries are a type of small scale industry where the products are manufactured by hand, by the artisans. Basket weaving, pottery and other handicrafts are examples of cottage industry.
Small scale industries use lesser amount of capital and technology as compared to large scale industries that produce large volumes of products. Investment of capital is higher and the technology used is superior in large scale industries. Silk weaving and food processing industries are small scale industries. Production of automobiles and heavy machinery are large scale industries.
Ownership: Industries can be classified into private sector, state owned or public sector, joint sector and cooperative sector. Private sector industries are owned and operated by individuals or a group of individuals. The public sector industries are owned and operated by the government, such as Hindustan Aeronautics Limited and Steel Authority of India Limited. Joint sector industries are owned and operated by the state and individuals or a group of individuals. Maruti Udyog Limited is an example of joint sector industry. Co-operative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both. Anand Milk Union Limited and Sudha Dairy are a success stories of a co-operative venture.
The factors affecting the location of industries are the availability of raw material, land, water, labour, power, capital, transport and market. Industries are situated where some or all of these factors are easily available. Sometimes, the government provides incentives like subsidised power, lower transport cost and other infrastructure so that industries may be located in backward areas. Industrialisation often leads to development and growth of towns and cities.
An industrial system consists of inputs, processes and outputs. The inputs are the raw materials, labour and costs of land, transport, power and other infrastructure. The processes include a wide range of activities that convert the raw material into finished products. The outputs are the end product and the income earned from it. In case of the textile industry the inputs may be cotton, human labour, factory and transport cost. The processes include ginning, spinning, weaving, dyeing and printing. The output is the shirt you wear.
Industrial regions emerge when a number of industries locate close to each other and share the benefits of their closeness. Major industrial regions of the world are eastern North America, western and central Europe, eastern Europe and eastern Asia. Major industrial regions tend to be located in the temperate areas, near sea ports and especially near coal fields.
India has several industrial regions like Mumbai-Pune cluster, Bangalore-Tamil Nadu region, Hugli region, Ahmedabad-Baroda region, Chottanagpur industrial belt, Vishakhapatnam-Guntur belt, Gurgaon-Delhi Meerut region and the Kollam-Thiruvanathapuram industrial cluster.
In industries, accidents/disasters mainly occur due to technical failure or irresponsible handling of hazardous material. One of the worst industrial disasters of all time occurred in Bhopal on 3 December 1984 around 00:30 a.m. It was a technological accident in which highly poisonous Methyl Isocynate (MIC) gas along with Hydrogen Cyanide and other reaction products leaked out of the pesticide factory of Union Carbide. The official death toll was 3,598 in 1989. Thousands, who survived still suffer from one or many ailments like blindness, impaired immune system, gastrointestinal disorders etc.
In another incident, on 23 December 2005, due to gas well blowout in Gao Qiao, Chongging, China, 243 people died, 9,000 were injured and 64,000 were evacuated. Many people died because they were unable to run after the explosion. Those who could not escape in time suffered burns to their eyes, skin and lungs from the gas.
The worlds major industries are the iron and steel industry, the textile industry and the information technology industry. The iron and steel and textile industry are the older industries while information technology is an emerging industry.
The countries in which iron and steel industry is located are Germany, USA, China, Japan and Russia. Textile industry is concentrated in India, Hong Kong, South Korea, Japan and Taiwan. The major hubs of Information technology industry are the Silicon valley of Central California and the Bangalore region of India.
The inputs for the industry include raw materials such as iron ore, coal and limestone, along with labour, capital, site and other infrastructure. The process of converting iron ore into steelinvolves many stages. The raw material is put in the blast furnace where it undergoes smelting. It is then refined. The output obtained is steel which may be used by other industries as raw material.
Steel is tough and it can easily be shaped, cut, or made into wire. Special alloys of steel can be made by adding small amounts of other metals such as aluminium, nickel and copper. Alloys give steel unusual hardness, toughness, or ability to resist rust.
Before 1800 A.D, iron and steel industry was located where raw materials, power supply and running water were easily available. Later the ideal location for the industry was near coal fields and close to canals and railways. After 1950, iron and steel industry began to be located on large areas of flat land near sea ports. This is because by this time steel works had become very large and iron ore had to be imported from overseas.
In India, iron and steel industry has developed taking advantage of raw materials, cheap labour, transport and market. All the important steel producing centres such as Bhilai, Durgapur, Burnpur, Jamshedpur, Rourkela, Bokaro are situated in a region that spreads over four states West Bengal, Jharkhand, Odisha and Chhattisgarh. Bhadravati and Vijay Nagar in Kamataka, Vishakhapatnam in Andhra Pradesh, Salem in Tamil Nadu are other important steel centres utilising local resources.
Jamshedpur: Before 1947, there was only one iron and steel plant in the country Tata Iron and Steel Company Limited (TISCO). It was privately owned. After Independence, the government took the initiative and set up several iron and steel plants. TISCO was started in 1907 at Sakchi, near the confluence of the rivers Subarnarekha and Kharkai in Jharkhand. Later on Sakchi was renamed as Jamshedpur. Geographically, Jamshedpur is the most conveniently situated iron and steel centre in the country.
Sakchi was chosen to set up the steel plant for several reasons. This place was only 32 km away from Kalimati station on the Bengal-Nagpur railway line. It was close to the iron ore, coal and manganese deposits as well as to Kolkata, which provided a large market. TISCO, gets coal from Jharia coalfields, and iron ore, limestone, dolomite and manganese from Odisha and Chhattisgarh. The Kharkai and Subarnarekha rivers ensured sufficient water supply. Govemment initiatives provided adequate capital for its later development. In Jamshedpur, several other industrial plants were set up after TISCO. They produce chemicals, locomotive parts, agricultural equipment, machinery, tinplate, cable and wire.
The development of the iron and steel industry opened the doors to rapid industrial development in India. Almost all sectors of the Indian industry depend heavily on the iron and steel industry for their basic infrastructure, The Indian iron and steel industry consists of large integrated steel plants as well as mini steel mills. It also includes secondary producers, rolling mills and ancillary industries.
Pittsburgh: It is an important steel city of the United States of America. The steel industry at Pittsburgh enjoys locational advantages. Some of the raw material such as coal is available locally, while the iron ore comes from the iron mines at Minnesota, about 1500 km from Pittsburgh. Between these mines and Pittsburgh is one of the worlds best routes for shipping ore cheaply the famous Great Lakes waterway. Trains carry the ore from the Great Lakes to the Pittsburgh area. The Ohio, the Monogahela and Allegheny rivers provide adequate water supply.
Today, very few of the large steel mills are in Pittsburgh itself. They are located in the valleys of the Monogahela and Allegheny rivers above Pittsburgh and along the Ohio River below it. Finished steel is transported to the market by both land and water routes.
Weaving cloth from yarn is an ancient art. Cotton, wool, silk, jute, flax have been used for making cloth. The textile industry can be divided on the basis of raw materials used in them. Fibres are the raw material of textile industry. Fibres can be natural or man-made. Natural fibres are obtained from wool, silk, cotton, linen and jute. Man made fibres include nylon, polyester, acrylic and rayon.
The cotton textile industry is one of the oldest industries in the world. Till the industrial revolution in the 18th century, cotton cloth was made using hand spinning techniques (wheels) and looms. In 18th century power looms facilitated the development of cotton textile industry, first in Britain and later in other parts of the world. Today India, China, Japan and the USA are important producers of cotton textiles.
India has a glorious tradition of producing excellent quality cotton textiles. Before the British rule, Indian hand spun and hand woven cloth already had a wide market. The Muslins of Dhaka, Chintzes of Masulipatnam, Calicos of Calicut and Gold-wrought cotton of Burhanpur, Surat and Vadodara were known worldwide for their quality and design. But the production of hand woven cotton textile was expensive and time consuming. Hence, traditional cotton textile industry could not face the competition from the new textile mills of the West, which produced cheap and good quality fabrics through mechanized industrial units.
The first successful mechanized textile mill was established in Mumbai in 1854. The warm, moist climate, a port for importing machinery, availability of raw material and skilled labour resulted in rapid expansion of the industry in the region.
Initially this industry flourished in the states of Maharashtra and Gujarat because of favourable humid climate. But today, humidity can be created artificially, and raw cotton is a pure and not weight losing raw material, so this industry has spread to other parts of India. Coimbatore, Kanpur, Chennai, Ahmedabad, Mumbai, Kolkata, Ludhiana, Puducherry and Panipat are some of the other important centres.
Ahmedabad: It is located in Gujarat on the banks of the Sabarmati river. The first mill was established in 1859. It soon became the second largest textile city of India, after Mumbai. Ahmedabad was therefore often referred to as the Manchester of India. Favourable locational factors were responsible for the development of the textile industry in Ahmedabad. Ahmedabad is situated very close to cotton growing area. This ensures easy availability of raw material. The climate is ideal for spinning and weaving. The flat terrain and easy availability of land is suitable for the establishment of the mills. The densely populated states of Gujarat and Maharashtra provide both skilled and semi-skilled labour. Well developed road and railway network permits easy transportation of textiles to different parts of the country, thus providing easy access to the market. Mumbai port nearby facilitates import of machinery and export of cotton textiles. But in the recent years, Ahmedabad textile mills have been having some problems. Several textile mills have closed down. This is primarily due to the emergence of new textile centres in the country as well as non-upgradation of machines and technology in the mills of Ahmedabad.
Osaka: It is an important textile centre of Japan, also known as the Manchester of Japan. The textile industry developed in Osaka due to several geographical factors. The extensive plain around Osaka ensured that land was easily available for the growth of cotton mills. Warm humid climate is well suited to spinning and weaving. The river Yodo provides sufficient water for the mills. Labour is easily available. Location of port facilitates import of raw cotton and for exporting textiles. The textile industry at Osaka depends completely upon imported raw materials. Cotton is imported from Egypt, India, China and USA. The finished product is mostly exported and has a good market due to good quality and low price. Though it is one of the important textile cities in the country, of late, the cotton textile industry of Osaka has been replaced by other industries, such as iron and steel, machinery, shipbuilding, automobiles,electrical equipment and cement.
Today, this industry has become global. This is due to a series of technological, political, and socio-economic events. The main factors guiding the location of these industries are resource availability, cost and infrastructure.
The major hubs of the IT industry are the Silicon Valley, California and Bengaluru, India. Bengaluru is located on the Deccan Plateau from where it gets the name Silicon Plateau. The city is known for its mild climate throughout the year. Silicon Valley, is a part of Santa Clara Valley, located next to the Rocky Mountains of North America. The area has temperate climate with the temperatures rarely dropping below 0 degrees centigrade.
There are other emerging information technology hubs in metropolitan centres of India such as Mumbai, New Delhi, Hyderabad and Chennai. Other cities such as Gurgaon, Pune, Thiruvanthapuram, Kochi and Chandigarh are also important centres of the IT industry. However, Bengaluru has always had a unique advantage, as a city with highest availability of middle and top management talent.