2012 – Page 27 – Republic of Mining

First Nations hold veto over resource development – by Barbara Yaffe (Vancouver Sun – November 12, 2012)

November 12, 2012

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

Governments and corporate Canada remain in denial about a new reality: aboriginal groups hold veto power over resource development.

In his just-published book, Resource Rulers; Fortune and Folly on Canada’s Road to Resources, Bill Gallagher reviews the legal victories natives have toted up since the 1980s, and draws an intriguing conclusion.

He says it’s no longer enough for companies to merely consult on resource projects, they need to invite aboriginals to become partners and co-managers in proposed developments.

Gallagher, a Kitchener resident who has worked as an oil-patch lawyer and treaty negotiator, calls the situation “the biggest under-reported business story of the last decade.” He personally has counted up “well over” 150 legal wins for native groups, all based on provisions outlined in Canada’s Constitution.

“The native legal winning streak now simply has to be fundamentally and constructively addressed, both nationally and regionally .”

That message was reinforced last week by Assembly of First Nations chief Shawn Atleo, speaking at a gathering north of Thunder Bay. Atleo said aboriginals are prepared to take care of themselves financially, using revenue from resources they believe they own.

Troubled Pascua Lama gold project experiences yet another setback – by Dorothy Kosich (November 12, 2012)

November 12, 2012

http://www.mineweb.com/

Chile’s mine health and safety regulator has requested a number of studies be presented for its consideration before it will allow the resumption of pre-stripping activities at Barrick’s Pascua Lama.

RENO (MINEWEB) – The costs and delays at the troubled Pascua Lama project–which already contributed to the dismissal of former Barrick CEO Aaron Regent–continue to mount as Chilean authorities halted construction work at portions of the project due to concerns about the health of workers at the site.

However, in a statement issued Sunday, Barrick said the order “only affects activities related to pre-stripping in Chile.” “Major construction activities on the Chilean side of the project, including work on the ore tunnel, the crusher and the camp will continue uninterrupted,” Barrick said in a news release. “Construction activities in Argentina are not impacted.”

“At this time, pre-stripping is not a critical path item in the construction schedule and a temporary halt is not anticipated to impact the overall project schedule or cost estimates,” the company said.

The Chilean newspaper La Tercera reported that safety inspectors from Chile’s National Geology and Mining Service (Sernageomin) visited Pascua Lama on October 24 and found there was an excess of fine particulates in suspension in the air.

Black clouds over Plan Nord – by Alain Castonguay (CIM Magazine – November 2012)

November 10, 2012

http://www.cim.org/en.aspx

PQ calls for revision of mining royalty regime

When Quebec’s Legislative Assembly was dissolved on August 1, the Charest government was unable to pass two significant legislative acts regarding resources, namely Bill-14 that would create a foundation for an innovative mining development model, and Bill 27, a bill to establish the corporation La Société du Plan Nord. Even the budget bill, which notably sought to modify the royalty regime for land-based oil extraction, failed to pass.

This year’s election saw Martine Ouellet, current minister of natural resources, re-elected on the Parti Québecois (PQ) ticket in Vachon. Ouellet actively worked to block Bills 14 and 27. PQ candidates Lorraine Richard (René-Lévesque) and Luc Ferland (Ungava) were also re-elected. These two members of the national assembly used the time allotted to them to delay the detailed study of bills in a parliamentary committee. Richard and Ferland, who have been very critical of Plan Nord, beat out the incumbent Quebec Liberal Party (PLQ) candidates in Fermont and Lebel-sur-Quévillon.

On August 23, in Montreal, the Fédération des chambres de commerce du Québec used the election campaign as a chance to hold a debate on natural resources. Participants included Martine Ouellet, Raymond Bachand (PLQ, re-elected in Outremont) and Gérard Deltell (Coalition Avenir Québec, re-elected in Chauveau). On this occasion, Ouellet emphasized her party’s platform, which she had been hawking on the campaign trail:

A cash-rich crowd hungry for base metal acquisitions – by Kip Keen (Mineweb.com – November 9, 2012)

November 10, 2012

http://www.mineweb.com/

Increasingly base metal miners have cash that needs be spent beyond their own capital projects. Time for acquisitions.

HALIFAX, NS (MINEWEB) – Basically, some junior to intermediate base metal miners have a bunch of cash sitting around they don’t need to spend on their own projects that can only really go to one thing: new acquisitions. All miners almost always talk of being on the lookout for new assets that are, as it is so often put, “accretive to shareholders.”

Yet such talk is not always matched with means by either cash, equity financing or debt. Increasingly, though, there are a number of juniors and intermediates – a couple new ones especially – that can back up their talk with cold, hard cash. Of particular note from recent quarterlies: Capstone Mining reported C$509 million in cash (and access to C$200 million in possible debt) while Nevsun Resources said it had C$379 million on hand.

More importantly, these two mountains of moola are now largely unspoken for; Nevsun and Capstone are relatively unencumbered by near term capital spends. While Nevsun is in the midst of building a copper plant as it transitions from gold production to copper production at its Bisha copper-zinc-gold mine in Eritrea, this copper plant is now mostly paid for, meaning Nevsun won’t have to cannibalize its cash to fund existing capital projects.

[Thunder Bay] Gas plant delay needs explaining – Thunder Bay Chronicle-Journal Editorial (November 9, 2012)

November 10, 2012

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

EVERY once in a while an issue arises with such profound implications that virtually everyone involved pays attention. These things can even cause politicians to go against their own governing party line, though that is all too rare. Both events have occurred in Thunder Bay after the Ontario Power Authority called off conversion of the city’s coal-fired power plant to natural gas.

The conversion, part of the Liberal government’s abandonment of coal-burning generating stations in the interest of cleaner air, was already delayed once, reportedly incurring a penalty of $5 million. Put back on track by the province, this second suspension comes despite the need for a secure local power source for an imminent mining boom that is poised to rescue the region’s flagging economy, create as many as 13,000 area jobs and produce an estimated $16 billion in tax revenue for all three levels government.

The suspension also comes despite personal assurances by Energy Minister Chris Bentley, as recently as August, that the conversion would proceed. Bentley says he wants to allow the OPA time to prove its claim to be able to save up to $400 million by mothballing the plant (a number that astonishes local officials) and make up the lost power from other sources. It’s a plan the region needs to hear, and soon.

Decentralizing the old Ontario Hydro was supposed to produce a leaner, more accountable electricity regimen in Ontario. But soaring costs for power, and for delivering it, have soured many Ontarians on the process which, by this second suspension of work at Thunder Bay, appears even more confused.

Province wants union’s business plan – by Gord Young (North Bay Nugget – November 9, 2012)

November 10, 2012

http://www.nugget.ca/

The province is willing to consider a ports authority proposal aimed at revitalizing the ONTC as part of its divestment process, says a spokeswoman for Northern Development and Mines Minister Rick Bartolucci.

Laura Blondeau confirmed Thursday the General Chairperson’s Association (CGA), which represents unionized employees at the Ontario Northland Transportation Commission, recently met with Bartolucci to discuss the proposal, which calls for the transfer of the Ontario Northland Railway and other ONTC assets to a new ports authority that would be operated under the Canada Marine Act.

Blondeau said the CGA was advised to put together a business plan and participate in the procurement process by submitting the proposal to Infrastructure Ontario. GCA spokesman Brian Stevens could not be reached Thursday for comment.

A request for pre-qualifications closed late last month for the purchase of Ontera, the telecommunications arm of the ONTC and the first division of the Crown agency that’s up for sale.

The province has said there is significant interest in Ontera. And the next step in the process, the issuing of a request for proposals, could come later this month.

McGuinty’s Grits clueless about northern needs – by Christina Blizzard (Toronto Sun – November 9, 2012)

November 10, 2012

http://www.sunnewsnetwork.ca/home.html

TORONTO — The government of Dalton McGuinty hammered one more nail in the coffin of northern Ontario recently, when the Ontario Power Authority (OPA) decided to back away from the conversion of the Thunder Bay coal-burning power plant to natural gas.

Critics say the OPA’s decision makes development of the “Ring of Fire” – a remote part of the northwest that’s rich in mineral deposits – almost impossible.

The decision comes hard on the heels of other northern blunders such as the Far North Act, which put half the land north of the 51st parallel – an area about the size of Britain – out of bounds for development.

Then they shut down the Ontario Northland Transportation Corp. (ONTC) rail service, a move that will devastate small communities and stifle economic growth. Cancelling the conversion of the power plant is a further blow to the northern economy.

In its announcement, the OPA said it would provide the electricity northwestern Ontario needs by building new transmission lines. That doesn’t make sense.The decision also highlights the foolishness of the original plan by the McGuinty government to shut down coal plants.

Statement from Minister of Northern Development and Mines on Aboriginal Consultation and Mineral Exploration

November 10, 2012

http://www.mndm.gov.on.ca/en

Ministry of Northern Development and Mines

Rick Bartolucci, Minister of Northern Development and Mines, released the following statement today on consulting with Aboriginal communities on mineral exploration and development:

“Our government is responsible for managing Crown lands and the natural resources of this province. In so doing, we must balance the need to promote economic development and our thriving mineral exploration and development sector with our commitment to meeting our constitutional obligations to Aboriginal peoples.

Since 2006, when Ontario introduced its first ever Mineral Development Strategy, our government has worked diligently to promote collaboration between industry and Aboriginal communities in order to build positive business relationships that meet the needs of Aboriginal communities and industry.

We have seen numerous examples where Aboriginal communities and industry have forged productive partnerships. In fact, since 1999, more than 100 mineral development benefit agreements have been signed between Aboriginal communities and industry. Ontario supports these and other partnerships and commends industry players who engage and consult with Aboriginal communities in a spirit of mutual respect and understanding.

Miners, First Nations have ‘forged productive partnerships’ – CBC Radio Sudbury (November 9, 2012)

November 10, 2012

http://www.cbc.ca/sudbury/

Ongoing disputes between First Nations and mining companies continue to plague industry, however

Ontario’s Minister of Northern Development and Mines says the updated version of its mining act offers clear, progressive guidance about Aboriginal consultation as it relates to mineral exploration activities.

However, in a recent statement about Aboriginal consultation and mineral exploration, Rick Bartolucci did not comment on a recent accusation by the Nishnawbe Aski Nation that a junior mining company made borderline racist comments.

Bartolucci’s statement didn’t mention the First Nation or mining company involved, but pointed out that, since 2006, the province has worked diligently to promote collaboration between industry and Aboriginal communities. He also said there are numerous examples where First Nations people and industry have formed successful partnerships.

The executive director of the Ontario Prospectors Association agreed. Garry Clark said the industry has a good relationship with First Nations in general. But NAN Grand Chief Harvey Yesno said there have been ongoing disputes between First Nations and mining companies.

Bartolucci calls for co-operation [between juniors and First Nations] – by Sebastein Perth (Sudbury Star – November 10, 2012)

November 10, 2012

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

In light of allegations of racism and lack of co-operation levelled this week between the Wahgoshig First Nation and a mining company, Sudbury MPP Rick Bartolucci on Friday urged “the mineral exploration industry to encourage its membership” to comply with regulations.

In a statement, the minister of Northern Development and Mines, said more than 100 “mineral development benefit agreements have been signed between aboriginal communities and industry” since 1999.

Bartolucci said the provincial government has to walk a fine line between economic prosperity and respecting aboriginal rights.

He said the province introduced the second phase of its “modernized Mining Act regulations” that provides aim to make rules and regulations clearer.

It will also provide “progressive guidance about aboriginal consultation as it relates to mineral exploration activities” for industry and aboriginal communities.

Don’t throw resources under the bus – by Mike Byfield (National Post – November 8, 2012)

November 10, 2012November 9, 2012

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

Mike Byfield is vice-president of Alberta development at the Frontier Centre.

That’s just what green lobbyists want to do

Energy represents Canada’s best economic and technology bet — by far. Once upon a time, Canadians prided themselves on extracting natural resources — farming, mining, logging, oil drilling and so on. Our workers were as skilled, courageous and productive as any in the world. Following the Second World War, however, Central Canada’s expanding manufacturers began to see themselves as this country’s class acts, while hewing wood and drawing water were sniffily dismissed.

Maybe it’s time to take another look. A really hard look. Ontario’s economic woes aren’t simply the result of cheaper labour in Mexico and Asia, though that factor is critical. Its high-tech champions are being overwhelmed by larger foreign rivals like Apple, Samsung and Cisco. Meanwhile, the resources sector has clocked some big wins. In particular, Alberta’s hard-charging oil producers and service companies have revolutionized the international energy outlook through technological innovation.

Nortel, a Toronto-based telecom giant that was once Canada’s biggest company by many measures, is evaporating into the final stage of bankruptcy. Research in Motion, the BlackBerry smartphone manufacturer, now finds itself reduced from international star to struggling desperately for simple survival. Even the Toronto Stock Exchange, pressed by technology changes in trading, has tried to hand over its future to London.

Like joining a neighbourhood, says Boor [Cliffs – Sudbury ferrochrome facility] – by Carol Mulligan (Sudbury Star – November 9, 2012)

November 9, 2012

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

Bill Boor felt as if he were among friends Tuesday at a sold-out luncheon of 330 people organized by the Greater Sudbury Chamber of Commerce. For Cliffs Natural Resources’ senior vice-president of global ferroalloys, it was like coming home in a sense.

That’s how Boor felt May 9 after delivering the news to investors in Toronto that Cliffs had selected the former Moose Mountain Mine site north of Capreol for its $1.8-billion ferrochrome processing plant.

“We made a lot more people unhappy that day than we made happy,” Boor told the lunch-time crowd. It was a long day, but Boor and other company officials opted to come to Sudbury for a late-afternoon reception with the city’s movers and shakers.

“It was the best thing we ever decided,” Boor told the chamber crowd. “It honestly felt like when you have a very long day at work and you go home.”

In Sudbury this week, Boor met with Mayor Matichuk, Nickel Belt New Democrat MPP France Gelinas and Nickel Belt New Democrat MP Claude Gravelle. All three attended the luncheon, sitting at the same table as Boor.

Natives have ‘hand out,’ says mine CEO – by Sebastien Perth (Sudbury Star – November 9,2012)

November 9, 2012

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

The president of a mining company in the middle of a dispute with an aboriginal group in Northern Ontario said he feels he is being “extorted” by the Wahgoshig First Nation.

Darryl Stretch said his company, Solid Gold Resources Corporation, has made a high grade gold discovery near Lake Abitibi in 2011, but can’t explore any further due to a court order.

The Wahgoshig First Nation filed an injunction against Solid Gold to stop its exploration on land they claim treaty rights over, at least until the two groups can come to an agreement.

Solid Gold won a court ruling allowing it to appeal the original injunction decision. That case will be heard in January.

The root of the dispute can perhaps be traced back to a 2004 Supreme Court of Canada decision that said the crown had a “duty to consult” with native groups when an activity had the potential to affect treaty rights. The federal government updated its guidelines for federal officials to “fulfill the duty to consult.”

OPA wants to clear the air [NAN and Solid Gold] – by Carl Clutchey (Thunder Bay Chronicle-Journal – November 9, 2012)

November 9, 2012

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

The Ontario Prospectors Association says it wants to meet with high-ranking aboriginal leaders to clear the air after it was accused this week of supporting “radical and racist” tactics at a Sudbury exploration conference.

“We believe there has been a total misunderstanding about this, and we want to sit down and talk with NAN (Nishnawbe Aski Nation),” OPA executive-direct Garry Clark said Thursday from Sudbury.

Clark, who is based in Thunder Bay, emphasized that his organization is anything but racist, and said he was taken aback by the allegation.

“We’re an organization that promotes the province as a place for (mineral) exploration,” he said, noting the Sudbury conference included presentations by aboriginal representatives. About $1 billion worth of mining exploration occurred in Ontario last year, “mostly conflict-free,” among companies and First Nations, Clark added.

An uproar occurred Wednesday afternoon when NAN held a news conference at the conference to denounce what it sees “as a racist media campaign against the Wahgoshig First Nation.”