No.. it's a myth "mineral" make up companies put forth in order to compete with talc based products.  It's kinda stupid since talc is a mineral too. 
I googled a bit and here's what I found from Cosmeticsinfo.org (http://www.cosmeticsinfo.org/HBI/26):
Health experts have maintained over the years that products containing talc are safe when used as directed, and recent scientific reviews of available data have supported this position.

The Food and Drug Administration has determined that talc is Generally Recognized As Safe (GRAS) for use as an anti-caking agent in foods. It is also permitted as an anti-caking agent in vanilla powder.



FDA has listed talc as a color additive that may be used in coloring drug products and as a component of colors for use in drugs and cosmetics.

http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRS...

http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRS...

http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRS...
As for the cancer causing myths:
What about a possible link between talc use and ovarian cancer?


The National Toxicology Program (NTP) deferred consideration of listing Talc in its Report on Carcinogens after a review in 2000 found considerable confusion over the mineral nature and consequences of exposure to Talc, both containing asbestiform fibers and not containing asbestiform fibers. In October 2005, the NTP withdrew Talc from review, explaining that it had become evident that the literature on both forms of Talc, with a few exceptions, provided an inadequate characterization of the actual materials under study to enable one to reach definitive conclusions concerning the specific substances responsible for the range of adverse health outcomes reported. A meta-analysis published in 2007 by Muscat and Huncharek shows no association between perineal (genital area) use of talc and ovarian cancer. However, a number of case-control epidemiology studies in the 1990’s reported small increases in ovarian cancer among women who use talc in the perineal area. Among nine studies reviewed by the 1994 International Society of Regulatory Toxicology and Pharmacology (ISRTP)/FDA workshop regarding consumer uses and health perspectives of Talc, eight studies found relative risks of 1.6 or less, and one had a non-significant relative risk of 3.9. The relative risks less then 2 are generally considered insufficient to establish biological significance.



The one study with a non-significant relative risk of 3.9 cannot be separated from random error because it was based on only seven cases and three controls that used dusting powder. Additional epidemiology studies, completed since the ISRTP/FDA workshop, do not provide support that perineal talc use is associated with ovarian cancer.



The experts attending the ISRTP/FDA Talc workshop concluded that the epidemiology studies did not demonstrate a real association between talc and ovarian cancer. Studies completed since the 1994 workshop do not provide evidence that talc is carcinogenic, or is a causative factor in the development of ovarian cancer in humans.
Hope this helps!