October 22, 2012 – Republic of Mining

Queensland makes U-turn on uranium mining ban – by Kip Keen (Mineweb.com – October 22, 2012)

October 22, 2012

http://www.mineweb.com/mineweb/view/mineweb/en/page102055?

One miner describes the just-lifted ban on uranium mines in Queensland “an ideological relic from a previous time.”

HALIFAX, NS (MINEWEB) – Queensland’s state government has decided to drop a decades-long ban on uranium mining, opening up the prospect for development of long held-back uranium projects in the U3O8-rich state.

Paladin Energy, a uranium producer that holds more than 100 million pounds in global U3O8 resources in Queensland, called the outgoing-ban “an ideological relic from a previous time” in a statement lauding the state government’s decision on the uranium mining issue.

Queensland Premier Campbell Newman focused much on potential jobs and framed the de-banning in the context of lost economic growth. “It’s been 30 years since there was uranium mining in this State (of Queensland), and in that time Northern Territory, South Australia and Western Australia have carved out successful uranium industries that deliver jobs and prosperity to their regions,” Newman said in a prepared statement.

New [Ring of Fire railroad] deal and port for ONTC? – by Liz Cowan (Northern Ontario Business – October 19, 2012)

October 22, 2012

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

A “new deal” for Ontario Northland has been proposed by the association representing unionized employees at Ontario Northland Transportation Commission (ONTC).

The proposal calls for transferring ownership of the railroad and other assets of the provincially-held ONTC to a new ports authority to be operated under the Canada Marine Act.

The first step in this process was recently completed with the creation of The James Bay and Lowlands Ports Trustee Corporation.

“Not only will we save transportation services and hundreds of existing jobs in the North, but our plan will also create thousands more jobs by providing access to the Ring of Fire,” said Brian Stevens, representative of the General Chairperson’s Association (GCA).

The Canada Marine Act allows the federal government to create port authorities which are a Crown corporation of the federal government.

[Marathon’s palladium] Mine on track for 2016 start – by Carl Clutchey (Thunder Bay Chronicle-Journal – October 22, 2012)

October 22, 2012

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

The new Stillwater Mining Company executive spearheading the company’s proposed copper and palladium mine on Marathon’s outskirts says the project remains “fully funded” and on track to meet the previously announced production start-up date of 2016.

Stillwater Canada president Terry Ackerman, who is based in the company’s head office in Billings, Mont., was in Thunder Bay and Marathon last week to attend three open houses about the Marathon project.

Ackerman said the company hopes to have completed an ongoing environmental review into the project and obtain necessary operating permits by 2014. Construction at the proposed mine site just north of Marathon’s airport is expected to take two years and require 400 construction workers.

About 360 full-time miners are to be required once mining operations are underway. Ackerman, who was previously Stillwater’s vice-president of corporate development, replaces former Marathon project general manager Stan Emms. Ackerman said Emms has moved on to other projects.

[Manitoba] Province has ‘significant concerns about Vale’s commitment to the Thompson mining operations’ – by John Barker (Thompson Citizen – October 22, 2012)

October 22, 2012

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000. editor@thompsoncitizen.net

Urgent meeting with Poppinga

The provincial government has ‘significant concerns about Vale’s commitment to the Thompson mining operations’ and says it will be meeting on an urgent basis with Vale Canada President Peter Poppinga to discuss issues relating to Thompson, Steve Ashton, Thompson’s NDP MLA and minister of infrastructure and transportation, said Oct. 22.

“Following meetings with Murilo Ferreira, the CEO of Vale in 2011, and a further meeting between the Premier (Greg Selinger) and the CEO in Brazil in May 2012 we have been engaged in discussions with Vale in relation to the fund and other issues regarding the Thompson operation,” Ashton said. “We have made it clear that the Province of Manitoba is committed to continue working for value added jobs from the nickel resource in Manitoba.

“There was progress on these discussions. However the recent announcement on Birchtree and the delay in a decision on the 1 D project has raised significant concerns about Vale’s commitment to the Thompson mining operations.

[Ontario] PCs: Get North going – by Carol Mulligan (Sudbury Star – October 22,2012)

October 22, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Two Progressive Conservative MPPs from Northern Ontario — the only two — are banking on made-in-the- North policy to help their party win more seats in the next provincial election.

Parry SoundMuskoka MPP Norm Miller, the Tor ies’ Northern Development and Mines critic, was looking to people attending an Ontario PC Northern Conference on the weekend to offer suggestions “to get the North moving again.”

His party would love to have more representation in the North, said Miller. Half of his riding, from Severn River to French River, is located in Northern Ontario. “Good policy helps win seats,” Miller said before the start of the conference Saturday afternoon.

“We see the North as being a great place with great opportunity and it could be doing a lot better.” The 12-year veteran of provincial politics said the policies of Premier Dalton McGuinty “have really hurt the North.”

Miller slammed the Liberals’ Far North Act, saying it was an example of “Toronto-centric decision-making,” adding it panders to “very powerful special interest groups, mainly the environmental lobby.”

Melancthon mega-quarry: It’s limestone vs. potatoes – by David Suzuki (Toronto Star – October 19, 2012)

October 22, 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.

David Suzuki is a scientist and co-founder of the David Suzuki Foundation. Written with contributions from David Suzuki Foundation communications specialist Jode Roberts.

A billion tonnes of limestone lie beneath the rural countryside in Melancthon township, 100 kilometres north of Toronto. A plan to remove it spotlights the challenges faced everywhere when the desire to protect valuable and ever-diminishing farmland clashes with efforts to push industrial development.

The Highland Companies, backed by a $25-billion Boston hedge fund, hopes to blast a big hole in this fertile land to get at a deposit of 400-million-year-old sedimentary rock. The pit would cover more than 930 hectares and be almost 20 storeys deep — the second-largest quarry operation in North America, and the largest in Canadian history.

According to the company’s proposal, moving this much rock will require 20,000 kilograms of explosives a day for the next few decades, and hundreds of trucks and heavy machines. The proposed quarry would be 200 feet below the water table — vertically deeper than Niagara Falls, and twice as wide.

Petronas deal on hold, not dead – by Claudia Cattaneo (National Post – October 22, 2012)

October 22, 2012

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

Rejection had little to do with ‘net benefit’

After being aggressively courted by two rich suitors, natural gas producer Progress Energy Resources Corp. finds itself empty-handed and in the eye of a market storm today as a result of Ottawa’s surprising decision late Friday to block its takeover by Malaysia’s state-owned oil company, Petronas.

Market players, who had widely expected approval with some tough conditions, are interpreting the deal’s rejection as an indication Ottawa is getting tough on foreign takeovers in Canada’s oil and gas sector.

There is widespread worry that other deals in the pipeline, particularly Nexen Inc.’s takeover by China’s CNOOC Ltd. and Celtic Exploration Ltd.’s takeover by Exxon Mobil Corp., are the next to get turned down.

ttawa isn’t explaining why the Progress takeover doesn’t meet Canada’s “net benefit” test, but it’s possible that it’s the market that is over-reacting. Here’s another scenario: the takeover is simply on hold while Petronas ties up some loose ends and Ottawa tries to figure out how to handle the controversial rush of takeovers by state-owned enterprises, particularly from Asia.

B.C. Premier Christy Clark warns of national crisis over pipeline – by Gary Mason (Globe and Mail – October 22, 2012)

October 22, 2012

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.

VANCOUVER — Any move by Ottawa to green-light the Northern Gateway pipeline over British Columbia’s objections would ignite a national political crisis, says Premier Christy Clark.

Putting its foot down on a provincial matter would fan the flames on both sides of the debate and run afoul of political reality: the pipeline will only get built if it has the “social licence” to proceed, Ms. Clark said.

She made the comments in a wide-ranging interview with The Globe and Mail, in which she softened some of her recent anti-pipeline rhetoric while signalling a willingness to abandon efforts to get any share of Alberta’s royalties from the project.

She invited Alberta Premier Alison Redford and Prime Minister Stephen Harper to get together to address B.C.’s concerns, notably the need to derive greater economic benefits from Gateway.

With just less than seven months to go before the next provincial election, Ms. Clark is desperate to latch on to an issue that will help reverse her party’s dismal standing in the polls. The Liberal Leader undoubtedly hopes that the firm stand she has taken on Gateway recently will resonate with a B.C. public that has reservations about the project.

Ottawa sends proposed Petronas-Progress deal back to drawing board – by Lauren Krugel (The Canadian Press – October 20, 2012)

October 22, 2012

http://www.thecanadianpress.com/

CALGARY – The proposed $6 billion takeover of Canadian natural gas producer Progress (TSX:PRQ) by Malaysian state-owned energy giant Petronas has hit a potentially lethal snag.

After reviewing the deal, Federal Industry Minister Christian Paradis has given it the thumbs down. “I can confirm that I have sent a notice letter to Petronas indicating that I am not satisfied that the proposed investment is likely to be of net benefit to Canada,” Paradis said in a statement issued late Friday night.

The minister did not explain his decision, saying only that it was made after “a careful and thorough review of the proposed transaction.” Under the terms of the Investment Canada Act, Petronas now has up to 30 days to make any changes to the proposed deal and send it back to Ottawa for another review.

“Canada has a long-standing reputation for welcoming foreign investment. The Government of Canada remains committed to maintaining an open climate for investment,” Paradis said at the end of his statement.

At $6 billion, Petronas’ offer for Progress is substantial, but it’s eclipsed by the $15.1 billion China National Offshore Oil Co. is offering for Nexen (TSX:NXY).

Two approaches to northern [Ontario] mines – Thunder Bay Chronicle-Journal Editorial (October 19, 2012)

October 22, 2012

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

IT has become standard procedure for campaigning politicians to change their minds once in office — if they ever had any intention of keeping some promises in the first place. “Read my lips, no new taxes,” was George H.W. Bush’s way of phrasing it, but many seeking office in Canada have done the same. Departing Ontario Premier Dalton McGuinty said as much in advance of the 2003 election campaign, only to introduce the Ontario Health Premium, the largest tax increase in post-war Ontario.

Pauline Marois sees things another way, at least in so far as northern Quebec is concerned. Running against Liberal Jean Charest, the Parti Quebecois leader had little good to say about his signature regional development policy, Plan Nord, which seeks to stimulate industrial activity north of the 49th parallel. But now that Marois is premier, and with mining potential that may be on a par with that in Northern Ontario, Marois is allowing for the possibility of tax incentives to attract mining projects to Quebec’s Far North.

The difference between Quebec and Ontario’s approach is important because it signals the McGuinty government’s unwillingness to engage in hard bargaining in spite of holding the high cards.

Marois has stipulated that in order to be eligible for the tax credits she once eschewed, mining companies would have to process their ore in Quebec. This, of course, results in far greater economic benefit to the host region and province than if raw ore is shipped elsewhere — usually to low-cost, low-wage places chosen by companies to maximize profits.

NDP leader Horwath speaks out at [Timmins] convention – by Benjamin Aubé (Timmins Daily Press – October 21, 2012)

October 22, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Ontario New Democratic Party (NDP) leader Andrea Horwath had one very clear message in an energy-charged speech delivered at the party’s Northern Council meeting: “Respect the North.”

Horwath was in Timmins on the weekend to speak to party MP’s, MPP’s and members, nearly 100 of whom were at the Timmins Inn and Suites Saturday afternoon to listen to the address. In her speech, Horwath emphatically criticized the current government’s ability and desire to represent the province’s people equally.

She said the problem is especially clear in the North, where residents “are feeling extremely frustrated with the policies that are coming out of southern Ontario and Queen’s Park, because they don’t reflect reality here.”

She said the only way a government can properly reflect the reality of a place is to give the people there enough respect to listen to what they have to say and hear their voices.

“We know damn well that that is not happening at Queen’s Park right now, and has not been happening for an awful long time,” exclaimed Horwath, to huge rounds of partisan cheers and applause.

Public urged to keep on pressuring government on camping issue – by Wayne Snider (Timmins Daily Press – October 19, 2012)

October 22, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

IROQUOIS FALLS – The Minister of Natural Resources is listening to what Northerners have to say about losing camping privileges at area provincial parks. But citizens need to keep pressuring the government to save these campsites.

This was the message conveyed at Friday’s meeting of the Northeastern Ontario Municipal Association (NEOMA) in Iroquois Falls.

On Thursday, Natural Resources Minister Michael Gravelle met with Timmins Mayor Tom Laughren, chairman of NEOMA, and Kapuskasing Mayor Al Spacek, president of the Federation of Northern Ontario Municipalities. This came on the heels of a meeting between Gravelle and MPP Gilles Bisson (NDP — Timmins-James Bay) on Monday.

Local provincial parks impacted by the cost-cutting decision include Ivanhoe Lake in Foleyet, Greenwater in Cochrane, Rene Brunelle in Kapuskasing, Fushimi Lake in Hearst, The Shoals in Chapleau and Tidewater in Moosonee. Other parks on the list are Caliper Lake in Nestor Falls, Mississagi in Elliot Lake, Obatang between Wawa and White River, and Springwater in Midhurst.

“What we included in our presentation was a little bit of dialogue on the discrepancies in the numbers by the province as to the cost of these parks and the revenue, based on the 2011 parks report created by the government … so that they need to re-check these numbers,” Laughren said at the meeting.

Solid Gold Resources Corp. News Release: Tyranny at Lake Abitibi

October 22, 2012

Toronto, October 19, 2012 – Solid Gold Resources Corp. (“Solid Gold” or “the Company”) (SLD:TSXV) reports that new regulations obligating proponents to consult with potentially-affected Aboriginal communities before conducting exploration activities in Ontario are scheduled to come into force on November 1, 2012.

“These regulations result in a total transfer of all natural resources to the control of hostile, third-party governments. It is my opinion that Canadians must do everything possible to stop this ill-conceived, race-based initiative”, stated Darryl Stretch, President of Solid Gold.

On January 3, 2012, in the absence of any supporting law, a Motions Judge in the Superior Court of Ontario ordered Solid Gold to stop all exploration work at Lake Abitibi and, together with the Province of Ontario, to consult and accommodate the Wahgoshig First Nation (“the WFN”).

Two days later, in reference to the order, Premier Dalton McGuinty of Ontario stated, “There is an important legal obligation now placed on businesses to consult in a formal and thorough way.”

There wasn’t a law or regulation in place on January 5, 2012 when the Premier of Ontario made that statement and, in fact, the law will not come into effect for another two weeks.

In Russia, patience proves a virtue for Kinross Gold – by Eric Reguly (Globe and Mail – October 22, 2012)

October 22, 2012

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.

MOSCOW — Kinross Gold Corp.’s new chief executive officer had no speaking role at the Russian Prime Minister’s Foreign Investment Advisory Council meeting, but his mere presence a week ago at the table with Dmitry Medvedev said a lot about the company’s connections to the Kremlin elite.

Kinross occupies a curious and unusual spot in Russia, not just because its mines, in the country’s far east, are closer to Toronto than to Moscow. It is because the Canadian company is the only foreign gold miner in Russia and one of the few foreign companies of any description to operate without local partners. It is also the only Canadian company on FIAC, whose 40 members, from Pepsi to General Motors, represent the country’s top foreign investors.

“I believe it’s important to have a presence here,” Paul Rollinson, who replaced Tye Burt as Kinross chief in August, said on the sidelines of the annual FIAC meeting. “We are definitely on the radar at both the federal and regional government levels.”

At the FIAC event, Mr. Medvedev talked about Russia’s desire to attract more foreign investors. He needs them to modernize an economy whose industries rumble along like an old steam train compared to their Western, Chinese and Japanese equivalents.