October 25, 2012 – Republic of Mining

NEWS RELEASE: NWT Government Recognizes and Celebrates Two Geoscience Milestones

October 25, 2012

Yellowknife, NT (October 25, 2012) “This year … marks the 10th anniversary of the NWT Geoscience Office … as well as the 40th anniversary of the Yellowknife Geoscience Forum, both notable achievements,” so said the NWT Industry, Tourism and Investment Minister Dave Ramsay in the Legislative Assembly yesterday.

The Minister went on to say: “The NWT remains a land of opportunity. Our mining, oil and gas industries rely on modern, accessible geoscience information to make investment and land use decisions. Investing in geoscience programs attracts investment to our territory and creates spin-off exploration projects that will provide employment and business opportunities for NWT residents.

The Northwest Territories Geoscience Office provides governments, industry, Aboriginal organizations and many other stakeholders with up-to-date, easily accessible geoscience information. This information is key to encouraging investment in mineral and petroleum exploration.”

President of the Chamber of Mines, Pamela Strand said, “We are very pleased to hear Minister Ramsay explain that for every dollar invested in government-funded geosciences in the NWT, five dollars are in turn spent by our mineral exploration companies. And since the NWT is one of the least mapped regions of Canada, we are also very pleased that the NWT Government will continue to support the work of the NWT Geoscience Office.”

New rules, new tools in Ontario’s Mining Act – by Rick Bartolucci (Northern Miner – October 22-28, 2012)

October 25, 2012

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Rick Bartolucci is Ontario’s minister of Northern Development and Mines.

In 2006, the Ontario government introduced its first-ever Mineral Development Strategy, which provided the foundation for the sustainable management and stewardship of Ontario’s mineral resources.

Our government’s goal was to reinforce the province’s international position as a leading mining jurisdiction and promote responsible mineral development for the benefit of all Ontarians. Our modernized Mining Act continues to support these aims.

Four years of wide-ranging consultation with stakeholders, provincial and territorial organizations, tribal councils and Aboriginal leaders has resulted in legislation and regulations that deliver on the government’s commitment to modernize mineral exploration and development in the province.

Ontario wants to ensure its mining industry remains strong and that the rights and interests of Aboriginal groups and private landowners are properly addressed throughout the mining sequence.

That’s why we’ve worked with our stakeholders and Aboriginal partners to make changes to the act that provide clear rules to help reduce the impact of mineral exploration activities on the environment, and make Aboriginal consultation a cornerstone of mineral exploration and mine-closure.

Death of an Industry: The Decline of Canadian Mineral Exploration – by Brent McNiven, B.Sc Geology, MBA-PM (October 2012 – Part 2 of 2)

October 25, 2012

Brent McNiven holds a B.Sc Geology from the University of Calgary, and MBA-PM from Athabasca University. Working in 12 countries in the Americas since 1993, he has been a business consultant involved in market and industry analysis, owned / operated various consulting and contracting businesses related to mineral exploration, and has extensive experience in cross cultural project management. Fluent in Spanish, he is a former resident of Peru, Venezuela, and Brazil. He can be contacted at: sedex@shaw.ca

Lowest Common Denominator:

Of interest are the results of an informal poll conducted at the PDAC 2012, where Canadian students soliciting field exploration work were asked “what does a geologist do”. The responses to the question were disturbing in that none could provide more than simplistic one word answers, and not a single response presented a higher level, or comprehensive understanding of the field of study, even when prompted.

The results of the poll, combined with their demonstrated lack of field experience, present an equivalent level of preparation of the recent graduates interviewed in Mexico and Peru. Latin American labor laws (and culture) generally eliminate the possibility for students to gain summer work experience, so their response was expected, but it is not the historical condition of Canadian graduates.

The quality of education, and by extension the quality of the graduates varies widely across countries, and universities, however the findings and cost benefit analysis are, that provided interview and selection process were valid ie the best candidates were carefully selected and duds weeded out, that in actual field exploration conditions, the difference in performance by nationality is not significant.

Death of an Industry: The Decline of Canadian Mineral Exploration – by Brent McNiven, B.Sc Geology, MBA-PM (October 2012 – Part 1 of 2)

October 25, 2012

Executive Summary:

The purpose of this paper is to provide a qualitative overview of the state of the Canadian mineral exploration industry, and the changes observed over the past 15 years, and hopefully provoke meaningful discussion on future direction.

The junior mining and exploration sector that once formed a discreet, integrated and dynamic economic entity has become a fragmented and isolated group of investors / managers with narrow focus and short term (often short-sighted) mandates, operating too many companies (excess supply) lacking sufficient resources to be effective.

The contracting and consulting sectors have been sharply reduced in scope and capacity, and face increasing international competition, for example Australia, but also local actors in every market, resulting in consolidation, increased barriers to entry and lost opportunities.

Where Canada once produced world class exploration geologists, the failed industry / university link consistently graduates students without any field experience and lacking even the most basic exploration skills.

Cliffs in early stages of EA (Thunder Bay Chronicle-Journal – October 25, 2012)

October 25, 2012

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

Cliffs Natural Resources is conducting an environmental assessment of mining activity in Northwestern Ontario as part of the potential Ring of Fire mining development.

While it is still too early to determine any negative impacts mining activity might have on the environment, Jason Aagenes, director of environmental affairs at Cliffs, said Wednesday the company is still in the early stages of an ongoing process.
“We have been collecting baseline data for a number of years,” Aagenes said.

“We will be starting the actual environmental assessment in the upcoming months.” The environmental assessment is collecting baseline data on the main aspects of the environment, including biological, physical and human, as well as traditional knowledge.

It is being conducted in consultation from First Nations and municipalities. It will examine environmental impacts of the four main components of the project, including the mine to be built near McFaulds Lake, an ore processing facility near the mine, the transportation system and the ferrochrome production facility.

No benefit in net benefit test – by Steven Globerman (National Post – October 25, 2012)

October 25, 2012

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

Steven Globerman is the Kaiser professor of international business at Western Washington University and a senior fellow at the Fraser Institute.

Competitive markets beat regulators every time

The recent decision by the federal government to block a proposed takeover of Progress Energy Resources by Petronas, a Malaysian state-owned company, increases the likelihood of a rejection of the pending acquisition of Nexen by CNOOC, a Chinese state-owned oil company.

It also follows the federal government’s action denying the takeover of Potash Corp. by BHP Billiton, a privately owned Australian company. These developments justify reconsideration of whether the net benefit test used by the Canadian government to assess foreign takeovers of Canadian companies makes economic sense.

Since Petronas is a state-owned enterprise (SOE), as is CNOOC, the economic issues raised by their proposed acquisitions are more complicated than in cases when the foreign investor is privately owned, as is BHP. Nevertheless, the basic economic arguments against making government approval of foreign takeovers of Canadian companies conditional on a net benefit test are similar and compelling, regardless of the ownership status of the foreign investor.

[Quebec] The next Alberta – by Ted Morton (National Post – October 25, 2012)

October 25, 2012

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

Ted Morton, formerly a minister in the Alberta government in the portfolios of energy, finance and sustainable resource development, is an executive fellow at the School of Public Policy at the University of Calgary. This is excerpted from a presentation to the annual meeting of the Quebec Oil and Gas Association in Montreal on Oct. 22.

Natural gas might reverse Quebec’s declining influence

A made-in-Quebec natural gas industry would help to build a stronger Quebec. It would mean lower gas prices and huge savings for both households and businesses. This would make Quebec businesses more competitive, which translates into more exports, more jobs, and less out-migration.

Shale gas does not have to be at the expense of the environment. Increased natural gas production is the most immediate and cost-effective way to reduce carbon dioxide emissions in North America — including Quebec.

With respect to protecting groundwater and safe regulation of hydraulic fracturing, Quebec doesn’t have to reinvent the wheel. Alberta is able and willing to share its experience and expertise in regulating fracking. Indeed, because of its unique geology, Quebec has the opportunity to set the standard for the cleanest natural gas production in North America.

Teck makes cuts amid global tumult – by Pav Jordan and Carrie Tait (Globe and Mail – October 25, 2012)

October 25, 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.

TORONTO, CALGARY – Canada’s largest diversified miner is cutting back in the face of a global economic slowdown.

Buffeted by volatile markets for the commodities it produces, Teck Resources Ltd. is deferring some $1.5-billion in capital spending over the next year or so, the latest in a string of Canadian resource companies to rewrite its plans in response to rising costs and an unpredictable outlook for the economy.

Among the casualties announced was Fort Hills, an oil sands joint venture in which Teck is a 20-per-cent partner along with Suncor Energy Inc. and Total SA. The project is not scheduled to begin producing oil until after 2017, but now some of the pre-production work will occur at a slower pace.

Canadian mining companies are increasingly joining the ranks of resource businesses that are being forced to rethink capital spending as the demand drops for key industrial commodities. The commodities cycle is sputtering along with the economies of the United States and Europe and as growth slows in China.

Suncor said in July that it was reevaluating tens of billions of dollars of planned spending, and pledged to apply “rigorous scrutiny” to the cost of three projects, including Fort Hills.

In race to export LNG, a new Atlantic plan – by Bertrand Marotte (Globe and Mail – October 25, 2012)

October 25, 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.

The vision to export natural gas from Canada is taking a sharp turn to the east.

Alfred Sorensen, president of Pieridae Energy Canada, has a dream to build a major liquefied natural gas export facility on Canada’s East Coast, the first of its kind. The $5-billion (U.S.) project is an eastern addition to a race unfolding in Western Canada to build LNG infrastructure that would allow major exports from the coast of British Columbia to global markets.

The former Duke Energy Corp. executive says the timing and conditions are right for construction of a complex in Goldboro, N.S. that would liquefy natural gas and ship it to markets in Europe and India. The site would have on-site storage capacity of 420,000 cubic metres.

But the plan must overcome some major challenges if it is to become reality. One is whether Pieridae can successfully lock in a sufficient number of long-term contracts to justify the project’s high price tag. Another is growing pressure for cheaper prices from overseas buyers.

A planned LNG export facility on the east coast is another element in the rapidly shifting energy flows of North America.

South Africa miners’ strike: Labour hero Cyril Ramaphosa urged crackdown, emails show – by Pascal Fletcher and Jon Herskovitz (Reuters/Toronto Star – October 25, 2012)

October 25, 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.

JOHANNESBURG—South African millionaire businessman and one-time anti-apartheid hero Cyril Ramaphosa urged ministers to crack down on a violent platinum miners’ strike the day before 34 miners were killed by police, according to emails revealed this week.

The emails cited on Tuesday by a lawyer for miners arrested over the Aug. 16 “Marikana Massacre” are the latest evidence of a reversal of historical roles for the 59-year-old, who himself led a historic miners’ pay strike under apartheid in 1987.

As a respected and influential member of the National Executive Committee of the ruling African National Congress (ANC), Ramaphosa has long been touted as a possible presidential contender.

Hailed with Nelson Mandela as a champion of anti-apartheid struggle, the man who was once called “South Africa’s Lech Walesa” now finds himself pilloried as a cold-hearted capitalist in his role of shareholder and board member of Lonmin, the company at the heart of the Marikana dispute.

Sudbury nickel mine stops operations at year’s end due to falling prices – by Andrew Livingstone (Toronto Star – October 20, 2012)

October 25, 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.

Operations at the Sudbury mine site where 40 per cent of the nickel used to make allied artillery during the First World War came from will be suspended at the end of the year.

The Frood site, which has been in operation for over a century, will be closed because of recent decline in the price of nickel and market volatility.

Since 2011, the price of nickel has dropped 30 per cent, 17 per cent this year alone. The closure will not lead to any job losses, said McPhee. 85 workers are currently employed at the site and when it closes, will be reassigned to other jobs within the Sudbury operation.

The Frood site has been mined for more than 100 years, but the ore now has low value and the company had been mining at a loss.

Yikes! Mitt might win. Get ready to roll out the oil barrel – by Thomas Walkom (Toronto Star – October 25, 2012)

October 25, 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.

President Mitt Romney? Get used to the idea. A few weeks ago, it seemed almost inconceivable that the gaffe-prone Republican challenger could snatch America’s presidency away from smooth, cool Barack Obama.

Canadians in particular are partial to Obama. A recent BBC poll estimated that roughly 65 per cent of people in this country prefer him to Romney, making Canada the fifth-most pro-Obama nation in the world (after France, Australia, Kenya and Nigeria).

And Romney? To casual observers, he’s the guy who drove to Grand Bend with his dog strapped to the roof of his car, the plutocrat who dismissed almost half of his own country as layabouts, the crass opportunist who swung hard right to secure the Republican nomination and is now tacking hard-centre to win the general election.

Romney may be all of that. But if U.S. polling is correct, he’s also riding a high from the televised presidential debates and — failing a last-minute Obama surge — could well end up winning on Nov. 6.

[Ring of Fire] Selling out our kids’ kids – by Dave Dale (North Bay Nugget – October 24, 2012)

October 25, 2012

http://www.nugget.ca/

Desperation will make people do ill-conceived things. Some will even trade their own family members for a penny and promises when the wolves are at the door.

And during hard times, elected officials are quick to sell the farm — lock, stock and your mother thrown in — for short-term economic and political gain.

There’s no shortage of examples in Ontario, many recent and several ongoing. More about the recent pitch by the Ontario Northland Transportation Commission unions to become a federal port authority later.

First and foremost, Prime Minister Stephen Harper and his Tory crew are at this very moment prostituting your children’s children on a long-shot global wager.

The Foreign Investment Promotion and Protection Agreement, which becomes binding next week, allows China to crawl into our economic bed for a minimum of 31 years.

Neskantaga wants mediation on Ring of Fire environmental assessment – by Shawn Bell (Wawatay News – October 24, 2012)

October 25, 2012

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

Neskantaga First Nation is requesting mediation to resolve differences between the environmental assessment it wishes to see for Cliffs’ Ring of Fire mine, and the assessment process the company has proposed.

In a letter to Ontario’s Minister of Environment Jim Bradley dated Sept. 27, Neskantaga called on Bradley to refer Cliffs’ terms of reference to mediation.

“Our constitutionally protected aboriginal rights and title and treaty rights are not appropriately addressed in the terms of reference,” Neskantaga wrote. “Therefore, numerous fundamental issues of concern arise on the terms of reference as submitted. It is our strong view that these should be addressed in a mediation between Neskantaga and…Cliffs.”

Neskantaga’s legal council Greg McDade of Ratcliff and Co. LLP told Wawatay News that as of Oct. 19, the minister had not yet responded to the request. Under Ontario’s Environmental Assessment Act, the minister has the ability to refer a terms of reference to a mediator if requested.