September 14, 2012 – Republic of Mining

South Africa cracks down on ‘illegal gatherings’ in wake of mining crisis – by Geoffrey York (Globe and Mail – September 14, 2012)

September 14, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG, South Africa — After weeks of an escalating national crisis in its mining sector, South Africa’s government has announced a sweeping crackdown on weapons and “illegal gatherings” by thousands of striking mineworkers. The government is refusing to say whether it will deploy the army or arrest key political opponents such as Julius Malema, but it left the door open to both options

Reports in the South African media today said the government could arrest Mr. Malema and send soldiers into the mining regions in an attempt to halt the violent wildcat strikes that have forced the closure of the mines of some of the world’s biggest platinum and gold companies.

Many of the striking workers have marched with machetes, spears, sticks and clubs as they hunt down those who fail to join the strike. Another body of a stabbed worker was found this week at a spot where the strikers have gathered. “It appears now that the mining industry is at stake,” Justice Minister Jeff Radebe told a press conference today.

“We can no longer tolerate acts of intimidation, illegal gatherings, the carrying of dangerous weapons in South Africa,” he said.

Oil sands ‘exporting jobs’, says NDP energy critic – by Yadullah Hussain (National Post – September 14, 2012)

September 14, 2012

The National Post is Canada’s second largest national paper.

Peter Julian has seen the oil-and-gas industry from the ‘shop floor’ during his days as a labourer in a B.C. refinery. It’s not a job or career he pursued, instead moving to social enterprises and eventually representing Burnaby-New Westminster as an NDP member of Parliament. Before being handed the portfolio of energy and natural resources shadow minister, Mr. Julian watched over treasury board, international trade and transportation. The varied experience, Mr. Julian says, allows him to appreciate the energy sector’s impact on the wider economy. In a wide-ranging talk with FP energy editor Yadullah Hussain, the MP spells out the NDP’s stance on the country’s energy sector. Here are edited excerpts from the interview.

Q The federal government believes oil sands is crucial to its economic strategy. Given your stance on the oil sands, what would be the key pillars of your energy strategy?

A We have to get the policies right so we are looking at the overall contribution of the oil sands. We want to see prosperity for average families right around the country and allow us to transition to a green-energy economy because we need to go where our major competitors are going. One of the concerns I have is the emerging and growing green-energy gap between Canada and other industrialized countries. In 2011, in one quarter in the U.S. there were 600 patents for sustainable-energy innovation; in Canada we had 10.

Muddled thinking on SOEs – by Yuen Pau Woo (National Post – September 14, 2012)

September 14, 2012

The National Post is Canada’s second largest national paper.

Yuen Pau Woo is president and CEO of the Asia Pacific Foundation of Canada.

A few state takeovers like Nexen deal won’t destroy market

As the clock ticks on the 45-day review period for the proposed CNOOC-Nexen acquisition, at least one thing has become clear: Critics on the left are in rare alignment with critics on the right in their uniform opposition to the deal.

The arguments are of course different. While economic nationalists call for government to block the sale of a private asset, free-market champions oppose the deal precisely because the acquisitor is a government-linked entity. In other words, those who traditionally favour a larger role for the state in the economy oppose a state-owned entity (SOE) buying this asset, and those who traditionally resist intervention in the marketplace support a government decision to block the sale.

At the heart of this puzzle is the fact that CNOOC is a state-owned company from a country that has an economic system that is described confusingly as “market socialism.” The Chinese economic model may not be everyone’s cup of tea, but it is the chosen model in China and there is little likelihood that SOEs will be dismantled in the foreseeable future.

In the CNOOC-Nexen decision, less strategy might be more – by Daniel Schwanen (Globe and Mail – September 14, 2012)

September 14, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The overwhelming reaction from experts to the friendly bid by China National Offshore Oil Corp. for Calgary-based Nexen Inc. has been to urge Canada to be “strategic” in its response to the deal. Indeed, we should be – but being strategic should not mean making policy on the fly.

In late 2007, the Canadian government issued guidelines regarding how it would apply its “net benefit” test, used to screen large acquisitions of Canadian entities by foreign-owned entities, when the latter are state-owned enterprises such as CNOOC. These guidelines require the government to consider whether the state-owned enterprise adheres to Canadian standards of good corporate governance and whether the acquired entity will be able to continue operating on a commercial basis.

More specifically, the guidelines mention commitments to transparency, the presence of independent Canadian directors on the board, and a Canadian stock-exchange listing for either the acquirer or the acquired entity as undertakings that may be required of the foreign investor. Presumably, concerns related to the degree of Chinese Communist Party control over CNOOC, or to allegations that firms connected with CNOOC might have engaged in insider trading ahead of the Nexen announcement, can be assessed under these headings.

Mining engineers strike gold – by Josh Dehaas (Maclean’s Magazine – September 13, 2012)

September 14, 2012September 14, 2012

Maclean’s is the largest circulation weekly news magazine in Canada, reporting on Canadian issues such as politics, pop culture, and current events.

Graduating with a degree in mining engineering seems to be a ticket to a well-paying job

Kyle Buckoll finished his bachelor’s degree at the University of British Columbia in April. Unlike many 23-year-old university graduates, he didn’t settle at his parents’ house in Maple Ridge, B.C., to start hunting for internships or entry-level jobs. Instead, he went on an all-expenses-paid trip to Turkey with 31 fellow class-of-2012 graduates from UBC’s mining engineering program. They marvelled at Istanbul’s Hagia Sophia, visited two of the seven ancient wonders of the world, and lounged on beach chairs in Bodrum to toast their graduation. They also toured six mines, because the flight, hotels and buses were all paid for by mining companies eager to show their largesse.

Buckoll wasn’t worried about student loans, either. His tuition for the last four years was covered by Anglo-Swiss mining company Xstrata. In addition to working for the firm while at school, he promised to work for Xstrata after graduation (he will owe them money if he quits in the first two years). After a summer spent touring Europe for fun, he has a well-paying job waiting for him at the company’s mine in Timmins, Ont., in September. His two vehicles will be there, shipped from Vancouver at Xstrata’s expense. His girlfriend will join him there too, her flight and moving expenses covered. They’ll settle into a home with the rent taken care of for the first two months.

Solving problems takes more than just words [Ring of Fire and First Nations education] – by James Murray (Netnewsledger.com – September 13, 2012)

September 14, 2012

http://www.netnewsledger.com/

THUNDER BAY – Solving problems takes more than just words. It takes firm action and determination. Words are an important part of moving toward a solution. However often it seems that mere words are all that are produced when it comes to making positive moves forward for Canada’s Aboriginal people.

Speaking in Edmonton on September 11th, Minister of Aboriginal Affairs, John Duncan stated, “senior officials from my department have completed a series of six regional roundtables that brought together senior leaders from Canada’s Aboriginal communities, natural resources industries, and provincial, territorial and federal governments to identify and discuss obstacles to greater Aboriginal participation in major mining, oil and natural gas projects. At these regional roundtables, including one held in Calgary, participants shared best practices and developed solutions to help eliminate barriers to better economic and labour outcomes.

“Together we are making progress in creating the conditions for Aboriginal people to achieve the prosperity they seek and that Canada needs. But our work is not done.

“Together, let’s make sure more Aboriginal teens graduate from high school and move on to higher education and to programs that provide the skills they require for the jobs they need.

Ring of Fire judicial review hits more delays – by Shawn Bell (Wawatay News – September 13, 2012)

September 14, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

It has been 10 months since Matawa First Nations filed a judicial review of the Ring of Fire Environmental Assessment process, but the review continues to be delayed by legal procedures.

Judith Rae, Matawa’s legal representative on the case, told Wawatay News that recent legal motions by both Cliffs Resources and the government of Canada have delayed the pre-hearing process in the case.

The latest delays come after Canada took longer than usual to provide information at the beginning of the legal action, said the lawyer with Olthius Kleer Townshed law firm. In November 2011 Rae had estimated that the case would come before the courts in eight to 18 months, a timeline that seems overly optimistic at this point.

“Our initial timeline has been derailed by the motions by Cliffs and Canada, but the judicial review is still ongoing,” Rae said. Matawa filed the judicial review on Nov. 7, 2011, calling on the federal government to implement a Joint Review Panel – the most comprehensive form of environmental assessment (EA) – for the Ring of Fire.

Ontario negotiating to build Ring of Fire toll road – by Shawn Bell (Wawatay News – September 13, 2012)

September 14, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

The Ontario government has confirmed it is planning to help build and operate a pay-per-use road to connect the Ring of Fire mining development to the existing highway grid.

A government spokesperson told Wawatay News that the province is “committed to sharing the cost” of building an all-season road to the Ring of Fire, and that discussions continue over how Ontario plans to recoup its investment in the road.

“It could be a toll, it could be a monthly invoice,” Ministry of Northern Development and Mines spokesperson Andrew Morrison said of the pay-per-use plan for the access road. “It’s difficult to characterize how a payment system would work at this point.”

According to a Noront Resources press release on Sept. 4, Ontario has assured the mining industry that all industrial users would be permitted to use the access road, which was proposed as part of Cliffs’ Ring of Fire chromite project. Noront also noted that the road plan involved some sort of toll for companies to pay-per-use.

Aroland diamond agreement a result of ‘taking time to listen,’ says Debut CEO – by Chris Kornacki (Wawatay News – September 13, 2012)

September 14, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

A diamond exploration company that recently completed an exploration agreement with Aroland First Nation says taking the time to build a respectful relationship was key to the deal.

Chris Meraw, President of Debut Diamonds, told Wawatay News the agreement proves that if companies take the time to get agreements in place with First Nations, both sides can benefit.

“We knew that the modernization of the Mining Act is under process and that you are going to need an agreement with the First Nation in order to use mechanized equipment on their traditional land,” Meraw said. “And we’ve always had a great respect for treaty rights and have built a tremendous relationship with the chief and community.

“The agreement is the result of both sides taking time to listen and discuss and reach an agreement that will benefit everyone,” Meraw said. “If you don’t talk, don’t consult and don’t communicate you’re really not moving ahead in any reasonable way.”

The agreement between Aroland and Debut was just one of two exploration agreements Aroland signed in August. The First Nation also signed an agreement with White Tiger Mining, a German exploration company, giving the company access to explore for gold, copper and silver on its Marshall Lake property 30kms west of Nakina.

Friedland seeks funding for Congo project – by Christopher Donville (Bloomberg/Toronto Star – September 14, 2012)

September 14, 2012

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

VANCOUVER—Robert Friedland, the billionaire who spent the past decade building a $6 billion (U.S.) copper mine in Mongolia’s Gobi Desert, is asking investors to fund projects in an even riskier locale—the Democratic Republic of Congo.

Ivanplats Ltd., a Friedland-controlled mining company, plans to raise about $300 million (Canadian) in an initial public offering in Toronto, according to a person with knowledge of the IPO who declined to be identified because the amount hasn’t been published. Vancouver-based Ivanplats seeks funding for its Kamoa copper project in Congo and to repay debt owed to Israeli investor Dan Gertler, who sold the company a zinc mine in the African country last year, according to a prospectus filed with regulators Sept. 10.

Friedland, 62, five months ago lost control of the Oyu Tolgoi mine in Mongolia after disputes with the government and joint venture partner Rio Tinto Group. He’s now proposing a mining development in Congo, whose government seized copper assets from Canada’s First Quantum Minerals Ltd. in 2010, and in South Africa, where the mining industry is convulsed by labor unrest.

“I would call the DRC the ultimate high-risk, high-reward mining destination—it’s one that’s on the radar of all serious mining companies because of its huge wealth and mineral resources,” James Smither, head of the mining practice at Maplecroft, a Bath, England-based risk-analysis company, said by telephone.

Peter Lougheed, Mr. Alberta, helped the province come of age – by Jeffrey Simpson (Globe and Mail – September 14, 2012)

September 14, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Peter Lougheed was a Progressive Conservative in politics, a Tory in thinking, a gentleman in life, a lawyer in profession, an Albertan in breeding, a Canadian at heart.

He won his last election 30 years ago. Yet, for all but the youngest Albertans, he’s remembered as the best premier Alberta ever had. He would walk the streets of Calgary, or any other Alberta city or town, years after leaving public life and be hailed as “Mr. Premier” or just plain “Peter.” Small of stature but large of reputation, he recalled a time and a government when some of the province’s best and brightest wanted to serve, because it meant working with and under him.

Modern Alberta came of age with Peter Lougheed. He both reflected that modernization and hastened it. He was elected premier in 1971, just before the world oil shock sent world prices soaring, creating a bonanza for Alberta. Suddenly, the province got rich. With that wealth came money and people flocking to Alberta, Albertans moving to Calgary and Edmonton, and a determination by federal governments to spread Alberta’s wealth around the country. They were turbulent times, to say the least, what with energy revenue a national issue, constitutional battles emerging, fiscal deficits growing and governments wrestling with the challenges of stagflation, the deadly mixture of high interest rates, high unemployment and slow growth.

Tributes pour in for Peter Lougheed – by Josh Wingrove, Dawn Walton and Carrie Tait (Globe and Mail – September 14, 2012)

September 14, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

EDMONTON and CALGARY – Regardless of political stripe, no matter the geographic location, tributes poured in to honour former Alberta premier Peter Lougheed, who died in Calgary on Thursday, at the age of 84.

Mr. Lougheed, who had a long history with heart problems but whose family said Thursday evening he died of natural causes, was being cared for in his final days in the hospital that bears his name. “Today Canada lost a truly great man,” Prime Minister Stephen Harper said in a statement, “Peter Lougheed was quite simply one of the most remarkable Canadians of his generation.”

Mr. Lougheed, who kick-started the province’s Progressive Conservative dynasty and reshaped its place in Confederation, was also a lawyer and former CFL player. He served as premier from 1971 to 1985, laying the groundwork for Alberta’s oil sands boom and famously battling Pierre Trudeau over the proposed National Energy Program.

“A master politician, gifted lawyer, professional-calibre athlete and philanthropist, the former premier was instrumental in laying the foundation for the robust economic success that his cherished province of Alberta enjoys today,” the Prime Minister said in the statement.

Unbalanced economy fuelling Ontario job losses, Thomas Mulcair says – by Bruce Campion-Smith (Toronto Star – September 14, 2012)

September 14, 2012

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

OTTAWA—Canada’s unbalanced economy has had a “devastating” effect on southern Ontario with the loss of thousands of good-paying manufacturing jobs, NDP Leader Thomas Mulcair says.

After spending four days touring the region this week, Mulcair said he’s not backing down on his view that the failure to develop Canada’s resource riches in a sustainable fashion is costing the economy.

“We’re always going to have a resource-based economy. We always have had and always will have . . . We also had a very strong secondary sector. We built up manufacturing. Those were choices that were made,” Mulcair said in an interview Thursday.

“We’re killing off that balanced economy and it’s really having devastating effects in regions like southwestern Ontario,” he said.

In the past, Mulcair has blamed so-called Dutch Disease for the loss of 500,000 manufacturing jobs across the country in recent years. Taking its inspiration from the impact of natural gas development in the Netherlands, it refers to when natural resource riches drive up the value of a country’s currency and badly damage manufacturing exports.