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Aboriginal and Inuit Mining and Oil/Gas

Theresa Spence’s hunger strike obscures the key First Nations issue: resource revenue sharing – by John Ivison (National Post – January 8, 2013)

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

There is hope for the future of relations between natives and non-natives in Canada. It is embodied in leaders like Glen Nolan, a former Cree chief from Northern Ontario, who is the president of the Prospectors and Developers Association of Canada.

He doesn’t support the Idle No More movement because he says he’s never been idle. “There are too many examples of [native] individuals and communities who have broken away from the notion that government is there to look out for them,” he said.

Attempting to get at the truth involves abandoning stereotypes and clichés. That is hard when the subject matter conforms to easily attached labels, like Theresa Spence, the chief of another Cree community in Attawapiskat, who points the finger of blame at Ottawa with one hand, while extending the other for more handouts.

It is a welcome reminder when more sober voices like Mr. Nolan point out that many First Nations reject dependency on transfers from the federal government.

Mr. Nolan, now an executive with a junior mining company developing nickel and copper in Ontario’s Ring of Fire, said his time as chief of the Missanabie Cree First Nation north of Wawa was characterized by building strong support networks to encourage education, work and business creation.

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The real story behind Attawapiskat’s problems – by Thomas Walkom (Toronto Star – January 9, 2013)

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.

Making sense of Attawapiskat is not easy. The James Bay native community is synonymous with poverty. But it sits next to a diamond mine. Its chief, Theresa Spence, has become famous across Canada because of the hunger strike she is waging on an island in the Ottawa River.

She insists she’ll only consume liquids until Prime Minister Stephen Harper meets with her (which he has agreed to do). But what does Spence want from that meeting? This is less clear. She talks vaguely of a new relationship between aboriginal first nations and the federal government.

We now know, thanks to a detailed audit of Attawapiskat’s finances commissioned by Ottawa, that the first nation’s bookkeeping leaves much to be desired.

Auditors from Deloitte and Touche concluded that roughly 80 per cent of the detailed spending transactions they investigated came with little or no paperwork, making it unclear how the monies were spent.

Yet oddly enough, another auditing firm — this one based in Timmins — has regularly been okaying the band’s annual financial statements, all of which are available on the Attawapiskat website.

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Rubicon Minerals appoints new operations boss – by Staff (Northern Ontario Business – January 7, 2013)

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.

Rubicon Minerals has appointed a new vice president of operations and hired a new director of investor relations. “Putting in place a team that can take us to the next level is one of my key priorities,” said Michael Lalonde, Rubicion president and CEO, in a Jan. 7 statement.

Dan Labine is the new operations boss, effective Jan. 21 and Allan Candelario will handle investor relations. Labine has more than 35 years of engineering, mine operation, and project management experience, most recently as Goldcorp’s senior project manager in charge of the construction and development of the Cochenour project in Red Lake.

Rubicon is constructing a gold mine in the Red Lake district. Its Phoenix Gold project is slated for a 2014 startup. Labine supervised the construction of a five-kilometre underground haulage drift between the Cochenour project and its Red Lake mine infrastructure.

Labine previously worked in management for Inco, AMEC Earth and Environmental Ltd. and was a senior project engineer for Nordpro Mine and Project Management Services.

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“One window” consultation [Wabun Tribal Council] provides certainty for miners – by Ian Ross (Northern Ontario Business – January 7, 2013)

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

Shawn Batise favours the “one window approach” when it comes to doing business with exploration firms. The executive director of the Timmins-based Wabun Tribal Council spearheaded the development of a tried-and-true method that enables six First Nation communites to share in the mineral wealth from Treaty 9.

“Our communities are business-minded and know how to approach a development,” said Batise, a graduate of the Haileybury School of Mines and a former mechanical engineering technologist who worked at Detour Lake mine.

Batise handles the negotiations for mining and hydro-electric agreements on behalf of the six communities that make up the tribal council: Beaver House, Brunswick, Chapleau Ojibwe, Matachewan, Flying Post and Mattagami.

The Wabun traditional territories take in a wide swath of northeastern Ontario that includes the major gold and base metal mining and exploration camps in Timmins, Kirkland Lake, Matachewan and Gogama. Batise said their Wabun Resource Development Model is all about “creating certainty” for both industry and communities.

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Poor managing on reserves hurts the young the most – by Christina Blizzard (Toronto Sun – January 8, 2013)

http://www.torontosun.com/

TORONTO – Just when you thought it was safe to stick your toe back into the murky waters of government accountability, along comes Finance Minister Dwight Duncan, all a-Twitter about the leak of an audit report on Attawapiskat.

“Tough love the rallying cry of the cowards who ‘leak’ these ‘audits’. Too much tough not enough love for our aboriginal bothers and sisters,” Duncan tweeted Monday.

Give me a break. Try too much pot calling the kettle black. As a politician, Duncan was part of a government that regularly leaked documents in order to get out their spin. But when the Tories do it, it’s cowardice? It sure explains why this province is in such dire economic straits.

If he really believes it’s acceptable for the band council in Attawapiskat to spend more than $100 million without adequate documentation, then is it any wonder this province is broke?

A scathing audit report by the accounting firm Deloitte found in random audits of transactions from April 1, 2005, and Nov. 30, 2011, 81% of the files didn’t have adequate documentation.

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NEWS RELEASE: Foundation Signs Agreement with Wahgoshig First Nation

Vancouver, B.C. January, 8, 2013; Foundation Resources Inc. (TSX.V:FDN: “Foundation” or “the Company”) is pleased to announce that further to the Company’s press release dated November, 14, 2012, the Waghoshig First Nation (“WFN”) has agreed to amend its Memorandum of Understanding (MOU) with Sheltered Oak Resources Corp. allowing Foundation to become a party to the agreement upon the completion of the acquisition of OAK. The agreement is limited to the Kerrs Property, which is also in Lake Abitibi area of Ontario, but does serve as a basic starting point for future negotiations between the parties.

“While this is agreement relates to the Kerrs Property, it contains what most knowledgeable industry participants would consider standard terms, and we believe it demonstrates a desire by WFN to work with mineral exploration companies on mutually respectful terms,” stated Barry Girling Interim CEO of Foundation. “Robert Hanson, Chairman of OAK and I had what can only be described as a very productive meeting with Chief David Babin and we look forward to continuing the strong relationship that has existed between OAK and WFN.”

The Company has also increased its offer to acquire 100% of the outstanding shares Solid Gold Resources Inc (TSX.V:SLD: “SLD”) on the basis of one share of Foundation for each share of SLD (the “FDN Offer”) up from its previous offer of 0.8333 shares of Foundation for each share of SLD (see press release dated November 27, 2012). The proposed terms of the FDN Offer represents a premium of approximately 45% to the 10 day SLD VWAP price of 0.031 per share for the period December 20, 2012 through January 7, 2013. MGI Securities Inc. (“MGI”) is acting as financial advisor to the Company with respect to the FDN Offer.

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Mining observer questions [Ring of Fire] Cliffs’ mine start-up date – by Thunder Bay CBC Radio (January 8, 2013)

 http://www.cbc.ca/thunderbay/

Ring of Fire project will likely be delayed for a variety of reasons, says industry watcher

A mining observer and blogger predicts chromite production in the Ring of Fire may not begin until as late as 2020.

Stan Sudol said he believes the fragile global economy — along with challenges related to infrastructure and First Nations communities — will slow development of the mineral zone. But there’s also an upside to a longer wait, he said.

“It gives us a little bit more time to decide exactly what type of transportation infrastructure would be the best for the Ring of Fire and how both Aboriginal and non-Aboriginal communities could best take advantage of this enormous transformational opportunity,” Sudol said.

Cliffs Natural Resources, the biggest company operating in the Ring of Fire, currently has a target start date of 2016. “Cliffs initially said they’re looking at 2016, but then there were some reports of 2017,” Sudol said. “I think a safer bet would be 2019 [or] 2020.”

Chance of takeover

In an e-mail to CBC News, a spokesperson for Cliffs called Sudol’s prediction about the mine’s start-up timeline and the company’s potential as a takeover target “pure speculation” on his part.

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[Solid Gold Resources] Stretch still waiting for public apology – by Jonathan Migneault (Sudbury Star – January 8, 2013)

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

A former mining company CEO could take two First Nations leaders to court in January if they do not issue a public apology for alleged slander and defamation.

Darryl Stretch, the former president and CEO of Solid Gold Resources Corporation, gave Dave Babin, chief of the Wahgoshig First Nation, and Harvey Yesno, grand chief of the Nishnawbe Aski Nation, until Dec. 17 to issue a public apology for comments they made at a Sudbury press conference on Nov. 7.

Both parties did not respond to Stretch’s letter by that date. Jamie Monastyrski, director of communications with the Nishnawbe Aski Nation, said they will issue a statement responding to Stretch’s allegations in the new year.

Babin said in the Nov. 7 press conference that his First Nation has only ever had problems dealing with Solid Gold Resources. “We’ve had other companies contacting us saying they want to work with First Nations,” Babin said. “They are learning the rules coming in. They seem to understand our issues. We’re willing to work with them. We’ve proven that with the many companies on our territory.”

In a release on the same day, Babin and Yesno asked the province to withdraw support from what they said were “racist and radical industry representatives, particularly members of the Mining United group and the Ontario Prospectors Association.”

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Six lessons from a brilliant, scathing year-old CBC report on Attawapiskat’s mismanagement – by Jonathan Kay (National Post – January 8, 2013)

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

CBC News made headlines on Monday by publicizing a scathing audit report on Attawapiskat, the impoverished northern Ontario Cree community led by hunger-striking chief Theresa Spence.

Yet you’ll find an even more searing indictment of Attawapiskat’s leadership in a televised report from the CBC’s Adrienne Arsenault. That segment is a year old, but it’s getting a new life on the internet thanks to a Twitter-based resurrection campaign led by blogger Richard Klagsbrun.

Watch the video: It’s shocking how many important lessons from Attawapiskat Ms. Arsenault manages to pack into just eight minutes.

1. The idea that the destitution of far-flung First Nations such as Attawapiskat is a result of Ottawa’s neglect is wrong. Ms. Arsenault’s quick tour of Attawapiskat — a place that then was supposed to have been in a housing crisis — shows a half-dozen well-constructed houses with no one living in them. When questioned about this total waste of resources, Chief Theresa Spence has no real answer.

2. In fact, Ms. Arsenault’s reporting suggests that the real problem in Attawapiskat is Ms. Spence’s own incompetent leadership — in which capacity she is aided by her live-in boyfriend Clayton Kennedy, who serves as the community’s manager. Neither apparently can be bothered to fill out the paperwork required to get needed resources from Ottawa, or even supply basic accounting information.

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Audit nightmare: The RCMP, not Harper, should be meeting with Chief Spence – by Ezra Levant (Toronto Sun – January 8, 2013)

http://www.torontosun.com/home

A new audit of the Attawapiskat Indian reserve was released Monday. It was shocking. The accounting firm of Deloitte randomly chose 505 financial transactions, between April 1, 2005 and Nov. 30, 2011, to review. They found “81% of files did not have adequate supporting documents and over 60% had no documentation of the reason for payment.”

A lot of that money was supposed to go to housing. Attawapiskat is the reserve where some houses have leaky roofs, poor insulation, broken plumbing and are generally unfit for habitation. But Deloitte wrote, “There is no evidence of due diligence in the use of public funds, including the use of funds for housing.”

Deloitte can’t find where the money went. But maybe the long list of people on the band’s rich payroll might know, starting with Theresa Spence, the chief, or her boyfriend, Clayton Kennedy, who just happens to be the town’s financial manager. He bills the band $850 a day to manage their finances.

In fact, there are 21 politicians on the band payroll. Plus plenty of full-time staff. But Deloitte didn’t find that reassuring: “Attawapiskat First Nation did not provide us with any job descriptions for individuals who are involved in the financial management of funding agreements.”

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Reserve squalor isn’t about funding, but where the money goes – by Lorne Gunter (Toronto Sun – January 6, 2013)

http://www.torontosun.com/home

Cash not the answer

Back in the fall of 2011 when Attawapiskat Chief Theresa Spence was first in the news, Mark Milke of the Fraser Institute produced a fascinating comparison of her reserve’s budget versus budgets for similar-sized non-aboriginal communities across the country.

Milke pointed out that Attawapiskat, a settlement with fewer than 1,600 residents, had an annual operating budget of nearly $32 million. Meanwhile, Atikokan, Ont., near Thunder Bay had almost 3,300 inhabitants — more than double that of Attawapiskat — and yet spent just $8.4 million providing municipal services. That’s one-quarter the budget for a town with twice the population, or $20,140 per capita in Attawapiskat versus $2,550 in Atikokan.

Spence’s complaint back then was that her reserve had too few houses for residents because Ottawa was giving it too little money. Milke’s point was that there was no shortage of funds, so the cause of Attawapiskat’s problems must lie elsewhere.

There are legitimate reasons why a reserve such as Spence’s might have to spend significantly greater amounts providing services.

For instance, while Atikokan is hardly central, Attawapiskat is truly far away from industrial civilization. What’s more, in Attawapiskat much of the employment is based on jobs created by the band government, whereas in Atikokan the private sector is the big employer. Plus the band is nearly the sole source of housing and health care.

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The energy sector will secure Canada’s future – by Daniel Lang (National Post – January 7, 2013)

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

Senator Daniel Lang represents Yukon and serves on the Energy, Environment and National Resources Committee and on the Standing Committee on National Security and Defence.

The National Post’s editorial board recently highlighted the need to explore new avenues for getting Canadian oil to market. I agree. In the Senate, we have been considering a recent report on Canada’s energy sector — Now or Never, Canada Must Act Urgently to Seize its Place in the New Energy World Order. It is important that all Canadians understand how vital our energy reserves are to the economy, and the challenges that lie ahead for us.

The energy sector plays a vital role in keeping Canada strong, free and prosperous. It employs over half-a-million Canadians and contributed a staggering $94-billion to our country’s exports in 2010. It also contributed $35-billion in taxes and royalties in 2008 to various levels of government. With oil production set to double by 2030, these contributions to our tax base and our living standards will prove crucial to all Canadians. I stress all Canadians. Even provinces without abundant oil resources will share in the wealth through transfer payments.

The energy sector is the largest private-sector employer in Canada. Young Canadians need to be introduced to the opportunities in the energy sector as they plan their careers. Moreover, these opportunities must also be accessible to all Canadians, including aboriginal youth, 400,000 of whom will be eligible for the workplace between 2012 and 2020.

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A map of the future [Northwestern Ontario/Ring of Fire] – economically speaking – by David Robinson (Northern Ontario Business – January 2013)

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. Dr. David Robinson is an economist at Laurentian University in Sudbury, Canada.  drobinson@laurentian.ca

As minister of northern development and mines, Rick Bartolucci has published the most important development map of Northern Ontario. It isn’t a map of what he is doing, or even what he plans to do-this map shows what others have stopped doing. But with a bit of imagination the map also shows Northern Ontario’s future.

Strange to say, the map didn’t get into the Northern Growth Plan. Maybe the team that wrote the plan didn’t realize what they had. After all, why do we care where all the abandoned mines in Northern Ontario happen to be? It’s just one of the many neat maps available on the Ministry Northern Development and of Mines website.

It is the unsurprising information in this map that matters. The map shows that there are a lot of abandoned mines. We all knew that, although we probably didn’t know just how many. The map shows that mines tend to be found close to railroad lines and major highways. That isn’t very surprising either. The third, not very surprising but important fact, is there are only four abandoned mines in the northwest quarter of the province.

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Ring of Fire – Miles before we dig (Part 2 of 2) – by Stan Sudol (Sudbury Star – January 7, 2013)

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

The Ministry of Northern Development and Mines estimates the value of the current known chromite deposits at US$50 billion over its 30-year lifespan. Noront Resources is developing a nickel/copper mine with a current 11-year lifespan.

The mineral deposit is “open at depth,” which means that even though official TSX regulations will not allow you to estimate the potential size of the orebody, most feel that mine will be in production for much longer.

The Ring of Fire mining camp will become bigger than the nickel mines of Voisey’s Bay, Nfld., and Raglan, Que. combined. It’s bigger than diamond deposits in the Northwest Territory or the uranium mining district in northern Saskatchewan.

We have just begun to explore this geologically rich mining region that will probably equal, if not exceed, the legendary trillion-dollar Sudbury basin. These developments, and potentially many more to follow, will significantly alleviate impoverished living conditions in the adjacent Aboriginal communities, as well as provide enormous economic benefits for the entire province.

But how are the First Nations going to build their capacity and take full advantage of these extraordinary job opportunities — and, most importantly, give their consent to sustainable development of their traditional territories — when many, if not most, of them are living in deplorable conditions?

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Accent: Ring of Fire – Miles to go before we dig [Part 1 of 2] – by Stan Sudol (Sudbury Star – January 5, 2013)

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

It may be a cliche, but over the past six months, how things have changed and how they’ve stayed the same in the Ring of Fire.

There may be some ongoing activity or discussions behind the scenes, but without a doubt, the declining state of the global economy, First Nations issues and Ontario politics seem to have halted any progress on a variety of issues.

First let’s look at the fragile nature of the world economy. The U.S. is still struggling; Europe is worse, with skyrocketing unemployment rates in many countries; and China’s past double-digit expansion is gone. It is estimated that their economy will “only” grow 7% this year.

The price of commodities and the value of resource companies have plummeted. Many mining projects are being put on hold or cancelled, while layoff notices are being handed out. Funding for junior exploration companies — the source of future discoveries like the Ring of Fire — has become almost impossible to find, putting many on life support.

The stock price of Cliffs Natural Resources has plummeted from US$100 per share a year and a half ago to a little under US$30 recently.

Cliffs has publicly stated that they are looking for a partner to help develop their Northern Ontario chromite deposits. Recently, the company has put their Bloom Lake iron ore expansion project in Quebec’s Labrador Iron Trough on hold and stopped production at two of their U.S. iron ore mines.

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