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Year: 2012

Mines at risk in Thunder Bay power plant closure, officials say – by John Spears (Toronto Star – November 3, 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.

Suspending a project to convert Thunder Bay’s coal-burning power plant to natural gas threatens the well-being of northwest Ontario’s booming mining sector, according to local politicians. And the Ontario Mining Association is also taking a close look at the impact decision, a spokesman said.

They were reacting to the Ontario government’s decision to halt work on converting the Thunder Bay plant to gas. It now burns coal, but the province has pledged to shut down all coal plants by the end of 2014. The Northwestern Ontario Municipal Association put out a sharply worded release on the news.

“These actions put at risk billions of dollars of investment in the mining sector by raising concerns that the required power may not be there when it is needed,” said Ron Nelson, president of the association.

The province says that converting the 300-megawatt Thunder Bay plant isn’t needed, because the area’s needs can be served by a new transmission line scheduled to go into service in 2017.

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NEWS RELEASE: OPA Decision Puts Mining Growth at Risk [Northwestern Ontario]

Northwestern Ontario Municipal Association (NOMA)

For immediate release: Friday, Novemver 2, 2012

THUNDER BAY – The Ontario Power Generation (OPG) announcement that they are suspending further work on the Thunder Bay Generating Station gas conversion is being met with anger and frustration by the Northwestern Ontario Municipal Association (NOMA). The announcement is a result of the Ontario Power Authority (OPA) informing OPG that it “needs to explore other options for energy supply in the northwest” despite personal assurances by the Minister as recently as August that the conversion would proceed.

For many years, NOMA and its partners have made energy a top priority in our meetings with Government. We have been calling on the OPA to undertake proper energy planning in the Northwest including repeated requests to meet with Northwestern Ontario leaders and experts to discuss the comprehensive energy needs of the region. These requests have fallen on deaf ears and this decision is an unfortunate example of the consequence.

“How dare the OPA ignore specific government direction by causing further delays to the Thunder Bay Generating Station conversion!” said NOMA President Ron Nelson. “These actions jeopardize the conversion and also put at risk billions of dollars of investment in the mining sector by raising concerns that the required power may not be there when it is needed.”

“Why is OPA determined to turn off the lights in our region?” questioned Nelson. “Why is the Ontario Government letting this happen?”

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Historical photos make mining career a tough sell: critics – CBC Radio Sudbury (November 2, 2012)

Miners drilling a cross-cut on a ramp with jackleg drills, 1750 foot level, Kerr Mine, Virginiatown, Ontario. From the book Cage Call: Life and Death in the Hard Rock Mining Belt by photographer Louie Palu. An in-depth project spanning over 12-years examining communities in one of the richest mining regions in the world located in Northwestern Ontario and Northeastern Quebec in Canada.

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

Click here for a selection of Canadian photographer Louie Palu’s mining photography: CAGE CALL: LIFE AND DEATH IN THE HARD ROCK MINING BELT

Sudbury art gallery exhibit explores roots of mining, but some find images troubling

Some say a photo exhibit on mining in Sudbury is perpetuating stereotypes about the industry and keeping young people from choosing mining as a career.

The exhibit Cage Call — currently on display at the Art Gallery of Sudbury — features underground photos from across northern Ontario. Thursday night, the gallery hosted a panel discussion on the image of the modern miner.

Mine Mill union president Richard Paquin said he knows a lot of the people in the photos hanging on the art gallery walls, as do his members — some of whom were not crazy about what they saw. “Some of them didn’t like [it] because it reminded them of the injuries we used to have,” he said.

“A lot of the pictures you see people missing things — missing an arm, one of them’s missing a foot.” There are also photos of miners in dirty coveralls, another, smoking cigarettes and drinking beer.

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Amnesty International Film Festival: Canadian conquistadores exposed in Under Rich Earth – by Martin Dunphy (Georgia Straight – November 1, 2012)

http://www.straight.com/

Villagers in a remote Ecuadorian valley band together to repulse rapacious Canucks

The documentary Under Rich Earth, screening at this year’s Vancouver Amnesty International Film Festival, has been in release for a couple of years now, but don’t let that stop you from checking it out if you haven’t already done so.

Popular docs such as Ai Weiwei: Never Sorry and Big Boys Gone Bananas!*, both of which are also part of this latest installment of Amnesty’s local exposition, do a good job of uncovering government and corporate malfeascence.

The appeal of Under Rich Earth—which details the struggle in Ecuador, a putative democracy, of poor farmers against police, politicians, and paramilitaries in the employ of a Canadian mining company—is how it fits into the part of Amnesty’s mandate that commits the volunteer-activist organization to fight against political killings and disappearances.

Neither of those outrages are inflicted on those portrayed here, but the film details the myriad small steps—including corporate spin-doctoring, police co-optation, economic suasion, the division of communities, and, finally, threats, bogus legal charges, and physical intimidation and harm—that often lead to those ultimate violations of human rights.

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Production, labour, cost issues weigh down the world’s top gold miners – by Lawrence Williams (Mineweb.com – November 2, 2012)

http://www.mineweb.com/

With the exception of Goldcorp, third quarter results from the big five global gold miners are looking pretty dire.

LONDON (MINEWEB) – This doesn’t look like being a good quarter for the world’s top five gold miners, with only Goldcorp the exception. Both Barrick and Newmont have published figures for the quarter which will have seriously disappointed analysts, while South Africa’s two top producers have of course been suffering badly from the wave of worker dissent in their main country of production which followed on from the platinum mine strikes and the Marikana massacre.

Let’s consider the major miners individually:

Barrick Gold, the world’s largest gold miner, not only saw third quarter earnings fall by 55% compared with a year ago – but also had to report yet another increased capital cost estimate for its massive Pascua Lama project straddling the Argentinean/Chilean border. The project cost now stands at an enormous $8-$8.5 billion, effectively $1billion more than the previous figures only re-estimated a quarter earlier, and getting on for three times the original cost estimate of only three years ago.

This does not bode well for the final project capital cost – indeed the company intimated in its quarterly announcement that even these figures were not necessarily final – and the history of cost pressures suggests that any further adjustments are more likely to be up than down.

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Costs rise again for Barrick’s Andes mine – by Pav Jordan (Globe and Mail – November 2, 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 Andean gold project that is key to driving future growth at Barrick Gold Corp. just got more expensive to build, and the company is still not done looking at costs.

The Toronto-based miner said the Pascua-Lama project, set in the mountains between Chile and Argentina, will now cost as much as $8.5-billion (U.S.) to develop. That’s higher than the shocking $8-billion price tag Barrick issued for the project in July, and more than double a $3-billion forecast when a construction decision was reached in 2009.

“You would expect that when they increased it by such a large amount a few months ago they would have been cautious so that they wouldn’t need to come back and disappoint us once again,” said George Topping, an analyst with Stifel Nicolaus who described the rise as “galling.”

Investors seemed to agree, driving the stock down more than 8 per cent on the Toronto Stock Exchange after Barrick announced the further cost overrun and said third-quarter profit fell by more than 50 per cent. Cash costs edged higher and the company sold less gold at lower prices. Shares of other gold miners also fell, dragged down by falling prices for the metal.

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Ontario’s Power Trip: Dalton McGuinty, power puppeteer – by Parker Gallant (National Post – November 2, 2012)

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

 Premier’s Office overwhelmed bureaucrats on gas-plant scandal

The 56,000 pages of documents associated with the Ontario government’s decision to kill two gas plants originally planned for Mississauga and Oakville show clearly the top-down role of politicians, both in the decisions made and in the attempts to hide the costs. They show, in numerous instances, how Premier Dalton McGuinty was in absolute control through his cabinet ministers to the officials he had appointed to the agencies involved.

As I read the documents so far, including board briefings and emails among the many players, it’s the Liberal strategists attached to the Premier’s Office and Ministry offices who are invested in hiding the mess the gas plants created. As energy consultant Tom Adams suggests in his review of the documents, the evidence suggests the total cost of plant cancellations is likely greater than $1.3-billion, the burden to be borne by electricity consumers.

The documents show that McGuinty strategists managed the gas files to benefit the Liberal party rather than taxpayers and ratepayers. Once the plants were cancelled, in October 2010 and September 2011, the top-down political influence is very noticeable. Post-cancellation negotiations to cover the costs of breaking contracts fell to Liberal party officials who tried to cover up the mess, not to energy experts.

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Superstorm vs. teacup tempest – by Peter Foster(National Post – November 2, 2012)

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

TransCanada issue is ­nothing compared with Sandy-sized McGuinty scandal

The commentaries in this paper on Wednesday by Terence Corcoran and Tom Adams about the horrendous waste, foot-dragging and dodgy political meddling attached to the cancellation of two Ontario gas plants, and to Ontario energy policy in general, make for infuriating reading. The cancellation of the plants, in Oakville and Mississauga, could cost $1.3-billion or more. The costs of the Green Energy Act will be multiples of that amount.

Those commentaries provide ample support for suspicions that Ontario Premier Dalton McGuinty prorogued the legislature in an attempt to stonewall further investigation, even if the price was throwing himself out of office.

This case meanwhile throws up the issue of the enormously different standards to which the public and private sectors adhere, and are held.

The final figure for which Queen’s Park had to settle with ­TransCanada Energy, the company with the contract to build the Oakville plant, is not known, but could be up to $900-million. This sum is outrageous if you are an Ontario taxpayer, but certainly cannot be blamed on TransCanada, which has come under vicious — and unjustified — attack from other directions.

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Oil giants impress with hefty $3.1B profit haul despite economic gloom – by Claudia Cattaneo (National Post – November 2, 2012)

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

Hate it or love it, when the going gets tough in Canada’s economy, there’s always oil. Collectively, Suncor Energy Inc., Imperial Oil Ltd. and Husky Energy Inc., Canada’s largest integrated oil companies, reported a profit haul on Thursday of more than $3.1-billion for the third quarter.

The three companies’ results were so good against a backdrop of general economic gloom, oil and gas price volatility, pipeline bottlenecks, rising costs, assorted controversies, that analysts were surprised and even ecstatic.

“Financials blow away The Street,” CIBC World Markets Inc.’s Andrew Potter said of Imperial’s $1.040-billion income, up from $859-million in the same period last year.

Mr. Potter also praised Suncor for reducing oil sands cash costs to the lowest level since 2009, leading to a profit of $1.555-billion, up from $1.287-billion last year, and record cash flow of $2.740-billion, up from $2.721 billion.

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Nexen-CNOOC deal: Eight questions – by Tim Armstrong (Toronto Star – November 2, 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.

Tim Armstrong, a lawyer and formerly Ontario’s deputy minister of industry, trade and technology, was the province’s agent-general for the Asia-Pacific region from 1986 to 1990.

The proposed takeover of Calgary-based Nexen Inc. by the China National Overseas Oil Corp. (CNOOC) would be the biggest Chinese acquisition of a Canadian company, and possibly just the start of an expanding Chinese stake in Canada’s energy sector.

The deal is now under review, but is the Harper government genuinely contemplating a rejection of the CNOOC bid, or is it just tweaking its rationale for acceptance — as most commentators speculate?

Those who raise concerns are accused by supporters of the deal of being either chauvinistic or anti-free market. However, there can be little doubt that Chinese state-owned enterprises (SOEs) are intensifying efforts to dramatically increase their ownership of our oilsands sector.

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Cliffs eyes more delays [Ring of Fire chromite project] – by Sebastien Perth (Sudbury Star – November 2, 2012)

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

Cliffs Natural Resources admits it may have to delay production at its Black Thor project in the Ring of Fire to 2017. The news came out during a recent quarterly report conference call, nearly a month after Cliffs announced it was pushing back production in the Ring of Fire to 2016.

Cliffs director of global communications Pat Persico said the company is still aiming for 2016, but that could easily change based on the market situation.

“As noted during our earnings call, Cliffs’ CEO Joseph Carrabba had noted that the company has several options and levers we can pull should the market change. One of those levers is capital spending related to our chromite project. Officially, we are working toward the end of 2016, but this could push the production target date beyond 2017,” Persico said.

He said despite the “significant potential” the Black Thor project represents, iron ore prices have caused Cliffs to re-evaluate the project’s timeline.

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Cliffs says it will include Neskantaga feedback in environmental assessment – by Rick Garrick (Wawatay News – November 1, 2012)

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

Cliffs Natural Resources is looking to include Neskantaga’s concerns about an important gathering place on the Attawapiskat River in the environmental assessment process for its Ring of Fire chromite mine.

“In terms of Neskantaga’s interest in the river, that is one of many aspects that has to be incorporated into the environmental assessment,” said Jason Aagenes, director of environmental affairs at Cliffs, during an Oct. 24 media briefing prior to a Cliffs open house in Thunder Bay. “We’re looking for feedback and input, not just from Neskantaga but all of the area First Nation communities, into the environmental assessment. The purpose of the environmental assessment is to take into account areas of cultural or archeological sensitivities and make sure that the project will not adversely impact those areas.”

A Lakehead University professor recently confirmed Neskantaga’s concerns about the gathering place after conducting a surface examination at the location where Ring of Fire companies are planning to build a bridge across the Attawapiskat River.

“It is a place of high archeological potential,” said Scott Hamilton, a professor in Lakehead University’s department of anthropology. Hamilton found evidence of occupation at the gathering place, including log tent frames, five gallon barrels cut into stoves, hide stretching racks and a metal pipe that he speculated could be the remnants of a musket dating back to the days of northern Ontario’s fur trade.

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Ring of Fire on the backburner for Cliffs? – by Northern Ontario Business staff (November 1, 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

Volatile commodity prices and cost pressures have Cliffs Natural Resources pushing back the start of chromite production at its Black Thor project in the James Bay lowlands Ring of Fire camp to 2017, or even beyond.

In the Cleveland miner’s Oct. 25 third-quarter conference call, Cliffs chairman and CEO Joseph Carrabba said the company is curbing capital spending and is holding off on early site construction at the remote location in the James Bay lowlands until a feasibility study is finished next summer.

It’s the second time in recent months that Cliffs has pushed back the start date at Black Thor by an additional year after steadfastly maintaining it was sticking to its original project startup date of 2015.

While Black Thor has great long-term potential, Carrabba said the sharp decline in prices of iron ore – Cliffs’ bread and butter commodity — has the company taking a serious re-evaluation of the massive $3.3-billion mine and processing development project.

“This includes delaying the major capital spending outlays and could push the production target date beyond 2017,” Carrabba told analysts.

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Potash Corp. eyes Israeli rival by Pav Jordan (Globe and Mail – November 1, 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.

Potash Corp. of Saskatchewan Inc., facing sharply lower demand in India and China, is setting the stage for a possible takeover of Israel Chemicals Ltd., in a politically sensitive move aimed at securing new markets for the world’s biggest producer of the crop nutrient.

Potash Corp., the world’s largest fertilizer maker, is looking to buy either all or a part of Israel Chemicals Ltd. (ICL), a $16.4-billion company in which it already owns a 14-per-cent stake.

“Discussions have occurred with Israeli government officials around potential options to increase our ownership stake in Israel Chemical Ltd.,” Potash Corp. said in a brief statement, in response to news out of Israel that it was in merger discussions.

The politically charged talks have involved state officials including Israeli Prime Minister Benjamin Netanyahu, underscoring the importance of ICL – which holds mining rights to the Dead Sea – to the government, which has a golden share in the company.

A merger would put key state assets into the hands of the fertilizer giant at a time when its production capacity is growing but it needs to find new markets. A merger would put key state assets into the hands of the Canadian fertilizer giant at a time when it is already targeting large organic capacity growth.

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Foreign workers shouldn’t get jobs Canadians can do: Kenney – by Kristy Kirkup (Toronto Sun – October 31, 2012)

http://www.torontosun.com/

OTTAWA — Immigration Minister Jason Kenney said Wednesday he wants to ensure the temporary foreign work program operates “on the basis of Canadians first” in light of concerns raised about permits granted to Chinese miners at a B.C. coal mine.

“Companies cannot access foreign workers unless or until they have demonstrated to the government that they have advertised the job in Canada, offering it to any qualified Canadians,” Kenney told QMI Agency.

“We never want to give jobs away to foreign workers if qualified Canadians are available and applying for them.”

Human Resources and Skills Development Canada is now investigating why the work permits were granted to about 200 mine workers at HD Mining International Ltd., located west of Grand Prairie, Alta.

Employers who wish to hire temporary foreign workers must apply for a “labour market opinion” from Service Canada that assesses “the impact the foreign worker would have on Canada’s labour market.”

“Concerns have come to light, subsequent to these labour market opinions being approved for that particular mine, that Mandarin was listed as a work requirement,” Kenney said.

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