May 16, 2013 – Republic of Mining

NEWS RELEASE: Harper Government Reaffirms its Commitment to the Mining Sector

May 16, 2013

Natural Resources Canada

May 16, 2013 11:12 ET

SUDBURY, ONTARIO–(Marketwired – May 16, 2013) – The Honourable Joe Oliver, Canada’s Minister of Natural Resources, today highlighted the extension of the Mineral Exploration Tax Credit for an additional year under Economic Action Plan 2013 while visiting a former mine site on the Podolsky Property.

“Mining workers and communities across Canada can count on our Government’s support of this vital engine of economic growth,” said Minister Oliver. “That is why, in our latest federal budget, we extended the Mineral Exploration Tax Credit to continue to provide junior mining companies access to the venture capital they need to finance their exploration activities.”

With more than 200 active mines in Canada producing more than 60 different metals and minerals, the sector is a key economic driver in dozens of rural, remote and Aboriginal communities across the country.

“Mining continues to be a cornerstone of the Canadian economy, providing employment and benefits to communities across the country,” added Minister Oliver. “Mining is directly responsible for 330,000 Canadian jobs. These are first-rate jobs in a growing global industry.”

Rio Tinto reports at [Eagle] mine forum – by Stephen Anderson ([Michigan] Daily Mining Gazette – May 16, 2013)

May 16, 2013

http://www.mininggazette.com/

L’ANSE – Rio Tinto representatives provided an update on the Eagle Mine, collected live electronic survey results through a community scorecard and fielded an array of questions and comments during a mining forum Wednesday night at the L’Anse American Legion Post 144.

Mine update

Matt Johnson, manager of external relations at Rio Tinto Eagle, gave a brief historical recap of the mine, starting with explorations dating back to the 1950s, the discovery of the ore body in 2002, the permit application and finalization in 2008 and 2010, respectively, and the start of underground drilling in 2011.

“We do have a goal of being in production in 2014,” he said. “A few months ago we announced a moderated schedule, so we pushed our schedule back. (Work on the Humboldt Mill) has been postponed for the time being.”

Production was originally slated to start in early 2014; now it’ll likely be toward the end of that year, but that’s not the only reason the life of the mine will extend farther.

Strateco books $87m impairment as Quebec uranium project stalls – by Henry Lazenby (May 15, 2013)

May 16, 2013

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Quebec-based Strateco Resources has booked a $87-million impairment charge during the first three months of the year, as its flagship Matoush uranium project lays in limbo following the province’s March moratorium on uranium exploration and mining.

This follows the decision by Quebec Environment Minister Yves-François Blanchet not to issue the certificate of authorisation for the Matoush uranium project, located east of James Bay in a First Nation reserve, until the relevant public hearings committee, the Bureau d’audiences publiques sur l’environnement, better known as BAPE, had submitted its report on the province’s uranium industry.

As at December 31, Boucherville-based Strateco had invested more than $123-million in moving the Matoush project up the value curve.

Strateco charged it was obliged to impair its Quebec uranium properties, deferred exploration and evaluation expenditures and fixed assets associated with the project, owing to its inability to proceed with the underground exploration programme, the absence of significant exploration and evaluation expenditures planned for the year and the overall uncertainty surrounding Quebec’s uranium industry.

US House Resources Committee approves rare earths/critical minerals bills – by Dorothy Kosich (Mineweb.com – May 16, 2013)

May 16, 2013

http://www.mineweb.com/

The National Strategic and Critical Minerals Production Act and the National Strategic and Critical Minerals Policy Act are now headed to a vote of the U.S. House of Representations.

RENO (MINEWEB) – The House Natural Resources Committee Wednesday approved two bills aimed at the development of rare earths and critical minerals in the United States.

Approved on a 24-17 committee vote, the National Strategic and Critical Minerals Production Act of 2013 (H.R. 761) requires the Secretaries of Interior and Agriculture to more efficiently develop domestic resources of the minerals and mineral materials of strategic and critical importance to United States economic and natural security and manufacturing competitiveness.

The chief sponsor of the bill, Rep. Mark Amodei, R-Nevada, seeks to limit the length of delays to permit new mining projects. The measure sets time limits for the permit review process, including a maximum of 30 months for the total review process.

The bill also stipulates that the lead agency is not required to address agency or public comments that were not submitted during the public comments period required by law or provided by the lead agency.

PCs would ‘champion’ chromite deposit: Hudak – by Carol Mulligan (Sudbury Star – May 16, 2013)

May 16, 2013

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

A Progressive Conservative government led by Tim Hudak would appoint a senior cabinet minister to head development of the Ring of Fire, not leave it to sit idle under the watch of a mid-level bureaucrat, says the Tory leader.

That cabinet minister would have the authority to “clear aside all obstacles,” so nothing stands in the way of the incredible opportunity for job and wealth creation offered by the massive chromite deposit, Hudak said Wednesday in a teleconference with reporters.

He and Nipissing MPP Vic Fedeli spoke about their party’s northern vision in the half-hour news conference, stressing the party’s determination to return Ontario to its No. 1 position in mining and forestry.

“The bottom line is, we want to see Northern Ontario back and firing on all c ylinders again,” said Hudak, by building on traditional strengths in natural resources and expertise in areas, such as technology.

When asked what his party would do differently from the Liberals to move development of the Ring of Fire ahead, Hudak said a number of things. It would work with the private sector to build a transportation corridor “to bring the ore to market, to refine the products and to create jobs, but also to make sure the energy sources (are there to) actually run the mines.”

What Norway did with its oil and we didn’t – by Esther Hsieh (Globe and Mail – May 16, 2013)

May 16, 2013

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.

When oil was discovered in the Norwegian continental shelf in 1969, Norway was very aware of the finite nature of petroleum, and didn’t waste any time legislating policies to manage the new-found resource in a way that would give Norwegians long-term wealth, benefit their entire society and make them competitive beyond just a commodities exporter.

“Norway got the basics right quite early on,” says John Calvert, a political science professor at Simon Fraser University. “They understood what this was about and they put in place public policy that they have benefited so much from.”

This is in contrast to Canada’s free-market approach, he contends, where our government is discouraged from long-term public planning, in favour of allowing the market to determine the pace and scope of development.

“I would argue quite strongly that the Norwegians have done a much better job of managing their [petroleum] resource,” Prof. Calvert says. While No. 15 on the World Economic Forum’s global competitiveness rankings, Norway is ranked third out of all countries on its macroeconomic environment (up from fourth last year), “driven by windfall oil revenues combined with prudent fiscal management,” according to the Forum.

Respect is key to aboriginal approval of Northern Gateway pipeline – by Brian Lee Crowley (Globe and Mail – May 16, 2013)

May 16, 2013

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.

Contrary to what regular readers of newspapers might believe, aboriginal communities in Canada are not knee-jerk opponents of development. On the contrary, a careful reading of their recent responses to development proposals gives reason for optimism.

Perhaps the highest-profile example of a major natural resource project facing roadblocks in large part because of aboriginal opposition is the Northern Gateway pipeline to link Alberta’s oil sands to Asian markets through the West Coast. While other players (such as the B.C. government) matter too, without aboriginal support, Northern Gateway (or its equivalent) almost certainly will not succeed. With that support, it has a fighting chance. Can that support be achieved?

Those with long memories recall the 1970s proposal to build a Mackenzie Valley pipeline to carry Northwest Territories gas to southern markets. This proposal coincided with a rising aboriginal self-awareness and organizational muscle under outstanding leaders such as George Erasmus.

As the pipeline project gathered steam, these newly organized aboriginal communities begin to complain about their exclusion from decision making despite the fact that the pipeline’s greatest impact would fall on them and their land.

B.C. vote shifted on one word: Pipelines – by Gordon Gibson (Globe and Mail – May 16, 2013)

May 16, 2013

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

The NDP looked way ahead before voters went to the polls in British Columbia. Then it all changed. Why? One word: “Pipelines.” Or more precisely, two: “Kinder Morgan.”

Until two weeks ago it was the election of the NDP’s Adrian Dix to lose. Then he got greedy. Worried about an emerging Green threat, Mr. Dix sought to pre-empt the party by going greenier-than-thou, specifically by promising to ban significantly greater tanker traffic out of the port of Vancouver, which would doom the export of Alberta oil to the Pacific. This was a stunning turnabout on a clear promise to withhold judgement until the pipeline application had been filed with details made available.

His gamble failed and, more importantly for the future of the NDP, the Greens elected their first MLA. This will split the vote on the left for years to come. Even more portentous for this election, it was the beginning of a major switch in voting intentions – missed by the pollsters, but surely clear enough last night.

Why the significance of this change in policy? It crystallized a number of fears in the minds of voters. The Liberals had run a brutal campaign based on fear. Fear of what? Fear of the NDP economic record in the last government. Fear of Adrian Dix and what he might do.

ONTC ‘essential’ for economy: Hudak – by Maria Calabrese (North Bay Nugget – May 16, 2013)

May 16, 2013

http://www.nugget.ca/

The Conservatives want the province to get out of the alcohol business while promising the publicly owned Ontario Northland Transportation Commission has a place in the province’s future.

“The government I lead will see the Ontario Northland Transportation Commission as an essential element for economic infrastructure. It’s going to open up jobs and create wealth in our province, not shut it down,” Progressive Conservative Leader Tim Hudak said during a conference call to Northern media Wednesday.

“How are you going to get Northeastern Ontario’s economy to rebound if you tear apart the ONTC?” Hudak asked.

He made the comments as LCBO workers draw closer to their strike deadline Friday ahead of the Victoria Day long weekend. They’re threatening to walk off the job over part-time, temporary work and the lack of quality, full-time positions.

Hudak distinguished his support for one Crown agency and intent to dismantle another by saying the Liberal decision to end the ONTC was politically motivated while the Conservative plan to privatize the LCBO will give residents more choice.

Many communities don’t have an LCBO and are looking to the private sector for access to beer, wine and spirits which would increase revenue to the province, Hudak said.

Northern MPs united against boundary changes – by Elaine Della-Mattia (Sault Star – May 16, 2013)

May 16, 2013

http://www.saultstar.com/

All five Northern Ontario members of Parliament agree that the federal electoral boundary lines should not change in the region and a “special exception” should be invoked.

Sault MP Bryan Hayes, along with MP’s from Timmins, Nipissing, Algoma and Sudbury all appeared before the standing committee on Procedure and House Affairs last week to tell the committee that the Sault Ste. Marie electoral boundary should not change.

An original report from the boundary commission recommended no changes to the riding but the second report proposes removing Echo Bay, St. Joseph Island, Bruce Mines and the surrounding areas from the Sault Ste. Marie riding and adding them to the Algoma-Manitoulin-Kapuskasing riding.

Hayes said the proposed change was strongly opposed by those impacted at a public hearing in Sault Ste. Marie last fall.

“I was disappointed when the commission’s report of hearings in Algoma-Manitoulin-Kapuskasing, Timmins – James Bay, Sudbury and Nipissing-Timiskaming persuaded a change to the initial recommendations for Northern Ontario,” Hayes said.

World’s oldest flowing water found deep in Timmins mine – by CBC News (May 15, 2013)

May 16, 2013

http://www.cbc.ca/thunderbay/

Water as much as 2.64 billion years old has chemistry that could support life

Water found in a deep, isolated reservoir in Timmins, Ont., has been trapped there for 1.5 billion to 2.64 billion years — since around the time the first multicellular life arose on the planet — Canadian and British scientists say.

The water pouring out of boreholes 2.4 kilometres below the surface in the northern Ontario copper and zinc mine is older than any other free-flowing water ever discovered. It is rich in dissolved gases such as hydrogen and methane that could theoretically provide support for microbial life, the researchers report in a paper published Wednesday online in the journal Nature.

“What we can be sure of is that we have identified a way in which planets can create and preserve an environment friendly to microbial life for billions of years,” said a statement from Greg Holland, the Lancaster University geochemist who is the lead author of the study.

“This is regardless of how inhospitable the surface might be, opening up the possibility of similar environments in the subsurface of Mars.”

His Canadian co-authors included Barbara Sherwood Lollar and Georges Lacrampe-Couloume at the University of Toronto; Greg Slater at McMaster University in Hamilton; and Long Li, who is currently an assistant professor at the University of Alberta, but worked on the project while at the University of Toronto.

Editorial: BC Liberal win leaves miners absolutely ecstatic – by John Cumming (Northern Miner – March 15, 2013)

May 16, 2013

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists. jcumming@northernminer.com

The B.C. mining community’s heartbreak over the early exit of the Vancouver Canucks from the Stanley Cup playoffs (so fast, fans didn’t even have time to loot the downtown core) has been soothed by the surprise majority win of the pro-mining Liberal party in yesterday’s provincial election.

In a stunning defiance of pundits and pollsters who had almost unanimously predicted at least a minority government for the left-leaning opposition New Democratic Party, Premier Christy Clark led her Liberals to a resounding win that captured 44.4% of the popular vote compared to the NDP’s 39.5%. That translated into the Liberals taking 50 of province’s 85 seats, or five more than the party had going into the election.

Clark lost her own seat, and will now seek a new one in a safer riding. Remarkably, Canada now has four women premiers in the four leading provinces, with three having assumed their positions in general elections.

Living in a province critically dependent on resource extraction to fuel the economy, B.C. voters clearly put aside their assorted pet peeves built up after 12 years of Liberal rule provincially and stuck with the gang that’s pro-resource development.

The NDP losing ground in a lot of the northern jurisdictions is particularly telling.

Mining exploration companies shift focus to survival as venture capital dries up in bear market – by Gordon Hamilton (Vancouver Sun – May 14, 2013)

May 16, 2013

http://www.vancouversun.com/index.html

Mining companies are hunkering down to weather what some say is the worst bear market in memory by shutting down operations, cutting staff and making fewer deals.

The downturn is hitting British Columbia’s mineral exploration companies particularly hard, according to Gavin Dirom, president of the Association for Mineral Exploration B.C.

Venture capital for the sector has “absolutely dried up,” Dirom said Tuesday. As a result, juniors are cutting back on exploration activity, focusing on fewer properties and consolidating their properties through joint ventures to survive.

“It’s the worst we have ever seen,” he said. “Economic survival mode is what these companies are facing.” He was commenting on a report by consultants Ernst & Young that found only 24 per cent of global mining companies are going to be focusing on mergers and acquisitions — the industry’s lifeblood — over the next six months.

The Ernst & Young report Capital Confidence Barometer, says that although confidence in the sector is improving — 57 per cent of companies believe the world economy is strengthening — the appetite for mergers and takeovers has vanished.

Sherritt facing demands from activist as chairman Ian Delaney retires – by Peter Koven (National Post – May 8, 2013)

May 16, 2013

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

A turbulent period could be looming for Sherritt International Corp., as an activist investor is challenging the company just as its long-time chairman and figurehead retires.

Scott Leckie of Takota Asset Management is calling on Toronto-based Sherritt to buy back more stock and study a potential lawsuit against SNC-Lavalin Inc., which he believes is responsible for cost overruns and delays at the company’s Ambatovy nickel project. He said he took his complaints public after Sherritt ignored three private letters.

“[Sherritt CEO] David Pathe has said they’re in a position to respond to opportunities. To me that means they have excess capital above and beyond anything they’re going to need for the last bits and pieces of Ambatovy,” Mr. Leckie said in an interview.

Sherritt also quietly revealed in a filing that chairman Ian Delaney, 69, is retiring from the company and is not standing for re-election at the annual meeting later this month.

He has been Sherritt’s dominant personality since he seized control of it in a proxy fight in 1990, and his departure leaves a major gap. But it does not come as a shock; in late 2011, he passed the CEO job on to Mr. Pathe and said he was content with the state of the company.