British Columbia Mining – Page 60

Ross Beaty’s decade-long copper dream comes to an end – by Dorothy Kosich (Mineweb.com – June 18, 2014)

June 18, 2014

http://www.mineweb.com/

With the proposed C$470 million sale of Lumina Copper to First Quantum Minerals, Ross Beaty finally closes shop on developing copper companies.

RENO (MINEWEB) – Over a decade ago, this reporter – who does not invest in stocks, and refrains from offering investment advice – was being tutored in the intricacies of financial journalism pertaining to the North American hardrock mining sector by one of the best, brightest and most successful North American gold and silver entrepreneurs.

My mentor at the time, renowned mining entrepreneur Ross Beaty, decided it was time he got into copper. His decision would provide a rare opportunity for a reporter to watch a mining company being born (in this case, actually three copper companies) and, eventually, to watch these companies pass into history.

During a conference call Tuesday, Beaty told analysts he was wistful at the prospect that he would be selling the last of those copper companies – Lumina Copper to First Quantum Minerals for C$470 million.

Back in January 2005, Beaty mesmerized his audience at the Northwest Mining Association convention with his theory that the mining sector may be approaching a “Hubbert’s Peak” for copper production. Globally, economic copper resources were being depleted with the equivalent production of three world-class copper mines being consumed annually; meanwhile, copper demand was increasing by more than 575,000 tons annually and accelerating, he observed.

Government may delay decision on Enbridge Northern Gateway: Rickford – by Jenny Uechi (Vancouver Observer – June 11, 2014)

June 12, 2014

http://www.vancouverobserver.com/

The federal government may delay a decision on the controversial Enbridge Northern Gateway, Natural Resources Minister Greg Rickford said at an energy conference in New York. He said the Joint Review Panel’s report from December, which recommended approval with over 200 conditions, is still being considered.

“Obviously, this is an extensive report with 209 conditions, and the government obviously has the clear option of taking that on its face, or other options that would or could include delays,” Rickford said to reporters at the event, according to the Financial Post.

He added that the government was making “careful considerations” now and would respond to the report in the “not-too-distant future.” The government has until June 17 to announce a decision on the project.

The 1,177-kilometre pipeline would bring oil sands bitumen from Alberta to Kitimat, BC, for shipment to Asian and U.S. markets. It has been fiercely opposed by Northern BC residents and a coalition of over 130 First Nations.

“The fact that the Harper government is even considering a delay speaks volumes to how unpopular this project is,” said ForestEthics campaign director Ben West.

Opinion: First Nations, mining for change – by Russell Hallbauer (Vancouver Sun – June 9, 2014)

June 10, 2014

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

Agreement would give new meaning to New Prosperity mine’s name

Russell Hallbauer is president and CEO of Taseko Mines

Many readers likely will have read that the British Columbia government has now signed 14 economic development agreements with First Nations across the province. These agreements commit the provincial government to share up to 37 per cent of the B.C. mineral tax from B.C. mining operations collected within First Nations’ traditional territories.

Over the past four years, $12 million has been shared with various First Nations. The most recent agreement was the one signed May 21 on the Huckleberry Mine, a few hundred km from Williams Lake.

A similar agreement is being developed between the government and those bands in proximity to our Gibraltar Mine.

These agreements, over the next 25 years of Gibraltar’s life, will allow First Nations communities to benefit directly over and above employment and other opportunities, in the financial success of the Gibraltar Mine.

Taseko personnel were some of the earliest advocates of revenue sharing when the process began with government and the Mining Association of British Columbia a number of years ago.

B.C. mining industry climbing out of dark hole – by Derrick Penner (Vancouver Sun – June 5, 2014)

June 6, 2014

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

Sector looks to recover after hitting bottom, according to survey

While B.C. miners face an uncertain future, it pales in comparison with the challenges of the global industry, which saw its profits crushed in 2013, according to a new report from accounting and consulting firm PwC.

The world’s top 40 mining companies lost $280 billion in capital value on stock markets last year and profits, at $20 billion, down 72 per cent, representing the lowest level in a decade, the report states.

Canadian companies account for eight of the top 40 companies in the global survey, including Vancouver-based heavyweights Goldcorp. Inc., Teck Resources Ltd. and First Quantum Minerals Ltd.

“I think we’ve hit the bottom, and we’re starting to crawl out,” said James Gravelle, leader of PwC’s global mining practice.

Looking at first-quarter financial results for the companies that have reported, mining firms are starting to see firmer profits and improved stock values, he added. This is the result of cost cutting and rationalizing within the industry in recent months, according to Gravelle.

U.S. coal curbs would boost B.C.’s Westshore Terminals traffic – by Wendy Stueck (Globe and Mail – June 4, 2014)

June 5, 2014

The 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.

VANCOUVER — B.C.’s biggest coal export facility, Westshore Terminals Ltd., is operating at full capacity and regularly turns away business from U.S. coal producers that want to get their product to export markets. A $275-million upgrade now under way may provide some breathing room.

But it likely won’t be enough to suit American producers keen to find new customers if proposed U.S. regulations reduce domestic demand. “Westshore is running at capacity right now,” Greg Andrew, director of environmental and engineering services at Westshore Terminals, said Tuesday.

“It’s a function of our ability to receive trains, store coal and move it out to ships. And we are pretty much operating at capacity in both the receiving of coal and loading of ships right now.”

The push for export options through Westshore and other existing and proposed export terminals on the West Coast of Canada and the U.S. could become more pronounced as a result of regulatory changes in the U.S., where President Barack Obama on Monday announced plans to curb emissions from coal plants by 30 per cent from 2005 levels by 2030.

[KGHM] Company unveils new plan for controversial Kamloops B.C. mine to address concerns about health risks – by Cam Fortems (Vancouver Sun – May 29,2014)

May 29, 2014

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

KAMLOOPS – The company behind a controversial copper-gold mine near Kamloops has unveiled a new proposal in an effort to address concerns about potential health risks.

Members of the Kamloops Area Preservation Association have said an estimated 90,000 people could be exposed to toxic dust containing arsenic, lead and aluminum that would blow over the city from the open-pit mine that they fear is too close to homes.

Now, KGHM Ajax has come up with a plan to move the mine farther south and eliminate a tailings stack in favour of a conventional tailings pond to the southeast.

The tailings pond will cover Goose Lake, which the company described as a slough with a maximum depth of one metre. Ajax officials announced last August that they were working on a new mine plan. They also said the pit would be expanded, along with ore production.

The joint venture involves Poland-based KGHM and Vancouver junior partner Abacus Mining & Exploration Corp. The project must still be approved by the federal and provincial governments after environmental assessments have been done.

BC First Nations to profit from Imperial Metals’ Huckleberry expansion – by Henry Lazenby (MiningWeekly.com – May 21, 2014)

May 22, 2014

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

TORONTO (miningweekly.com) – New revenue-sharing agreements will enable four First Nations in the Bulkley-Nechako area of British Columbia to benefit from the expansion of TSX-listed Imperial Metals’ Huckleberry copper mine.

Economic and community development agreements (ECDAs) would enable the Cheslatta Carrier First Nation, the Nee-Tahi-Buhn Band, the Skin Tyee Nation and the Wet’suwet’en First Nation to receive a share of mineral tax revenues collected by the province from the expansion of the Huckleberry mine, located 123 km south-west of Houston.

“These agreements will not only bring social and economic benefits to the four First Nations, but the entire Bulkley-Nechako region. ‎Reaching non-treaty agreements with First Nations is an important component of our government’s BC Jobs Plan, and I’m proud that today we surpass our goal of ten new agreements by 2015. They ensure First Nations have the opportunity to participate in the economy, while giving industry the certainty to invest in our province,” provincial Aboriginal Relations and Reconciliation Minister John Rustad said.

ECDAs are agreements between British Columbia and First Nations for sharing the direct mineral tax revenue on new mines and major mine expansions.

Opinion: Mining matters to us all – by Karina Brino (Vancouver Sun – May 21, 2014)

May 21, 2014

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

Industry employs more than 10,000 people, delivered a half-billion dollars to government in 2013

Karina Briño is president & CEO of the Mining Association of British Columbia.

Much has changed since the first B.C. Mining Week more than 25 years ago. B.C. has grown to become one of the leading economies of the Pacific Rim. Vancouver is a thriving, multicultural metropolis and the Canadian gateway to Asia. A province that once relied on fisheries and forestry to employ thousands and support whole communities now looks to mineral extraction and natural gas for the same benefits.

Established in 1901, the Mining Association of B.C. is one of B.C.’s oldest associations. It aims to support a strong and vibrant mining and mineral processing industry, one that will continue to create wealth and opportunity for all British Columbians for generations to come. The contributions of the industry extend far beyond the sites and communities in which our members operate. The industry touches the lives of all British Columbians in one form or another.

In 2013, the industry generated $8.5 billion in revenues, directly employed 10,720 people, and made payments of $511 million to government — money that is used to fund hospitals, schools, roads, bridges, and other public services that people across the province depend on daily.

British Columbia mining boom concerns unite tribes across borders – by Ed Schoenfeld (CoastAlaska News – May 19, 2014)

May 21, 2014

http://www.ktoo.org/

Tribal leaders from Alaska and Canada say it’s time to work together to oppose mines affecting both sides of the border. It’s part of the growing scrutiny of projects near transboundary rivers.

Parts of Southeast Alaska are only a couple dozen miles from British Columbia. Historically, tribal groups from both sides have met, traded and married.

“Tlingit, Haida, Tsimshian people who live in Alaska all have tribes, clans and relatives on the other side,” says Richard Peterson, president of Southeast’s Central Council of Tlingit and Haida Indian Tribes of Alaska. He says over the years, many of those connections have been lost. Now, he says, they’re coming back.

“I’m really excited that we could remove these invisible barriers, this invisible line that they call the border, that somehow successfully separates us so well. We’re doing away with that line,” he says. Peterson spoke at a recent program in Juneau about traditional life and changes coming to parts of northwestern British Columbia.

LNG projects could generate $200 billion in investment in B.C., EY estimates – by Nelson Bennett (Business in Vancouver – May 20, 2014)

May 21, 2014

http://www.biv.com/

U.S. and Australia have a head-start in the global race to dominate market, LNG conference speakers warn

By 2020, the British Columbia government hopes to see three major liquefied natural gas plants on the West coast of B.C. – something professional services firm EY estimates would generate more than $200 billion in investment. That’s when many 20-year LNG contracts with large customers in Asia – primarily electrical utilities – are up for renewal.

But it will take four or five years to build the pipelines and LNG plants, and to date, none of the pipelines that will be needed to supply the LNG plants are under construction.

No offtake agreements with Asian customers have been signed yet, no final investment decisions have been made, and the industry is still waiting for details on the implementation of a new two-tiered LNG tax.

Meanwhile, Australia has three LNG plants already in operation, seven under construction, and a new Exxon Mobil LNG plant in Papua New Guinea loaded its first tanker – destined for Japan – just last week.

Mining: Geologist takes mineral hunt to his hometown – by James Kwantes (Vancouver Sun – May 13, 2014)

May 14, 2014

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

Rob McLeod returns to Stewart to explore for gold at Red Mountain, site of his first job after graduation

When exploration geologist Rob McLeod graduated from the University of B.C. in 1993, his first job was drilling for gold at an underground project at Red Mountain near his hometown of Stewart.

It was a “dream job” for McLeod, who grew up fishing, hiking and exploring abandoned mine shafts in the area. During the winter drill program, he would pack ski equipment on the Snowcat they used to travel up the mountain and ski down at the end of the day.

The skiing was good, and so were the drill hits. “I’ve had my eyes on it ever since,” McLeod said of the property at the southern edge of B.C.’s “golden triangle,” a mineral-rich area beside the Alaska panhandle that hosts high-grade gold and stores of copper and silver.

McLeod now has his hands on Red Mountain as well, after an option agreement with current owner Seabridge Gold. The deal gives McLeod’s Revolution Resources 100-per-cent ownership of the project in exchange for a total of $3.5 million in cash and the expenditure of $7.5 million in exploration and development expenses over the next three years.

NEWS RELEASE: BC mining industry financial results dip in 2013

May 14, 2014

http://www.pwc.com/ca/en/index.jhtml

Some industry insiders believe the worst may be over

Click here for the report: http://www.pwc.com/ca/en/mining/publications/pwc-mining-industry-british-columbia-2014-05-en.pdf

VANCOUVER, May 14, 2014 — British Columbia’s mining industry faced significant headwinds in 2013 continuing the slide from a peak in 2011. While total shipments were higher in 2013 than 2012, revenues and earnings were down, according to the PwC BC Mining Industry Survey for 2013.

“In 2013 we saw investment in B.C.’s mining industry remain depressed as prices for its key commodities such as coal, copper, zinc and moly remained soft,” said Mark Platt, survey co-author and leader of PwC’s BC mining practice. “Producers hunkered down to minimize costs as they were hit with increased electricity rates, commodity market volatility, a skilled labour shortage and the additional costs of B.C.’s return to a PST and GST system last year.”

Fully automated mines ‘a distinct possibility’ – by Shawn Conner (Vancouver Sun – May 13, 2014)

May 14, 2014

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

Safety concerns drive mining industry to embrace mechanized performance of repetitive tasks

Increasingly, the mining industry is turning to robotics. In some parts of the world, drones and driverless trucks are being used for mining operations. In B.C., most of the robotics so far are used in drilling. “Underground, we are further ahead than across Canada in terms of either using robotic or semi-autonomous-type pieces of equipment, particularly with drills,” said John Thompson.

A part-time professor at Cornell University, Thompson is the founder of PetraScience Consultants Inc. and is a Chair at the Canada Mining Innovation Council. Many of the machines used for drilling at the New Afton copper-gold mine west of Kamloops are automated or partly robotic.

“Our jumbo drills are semirobotic,” said Sean Masse, mine manager for New Afton, which has both open pit and underground operations. The big Sandvik drills are 12.5 metres long, two metres high and three metres tall. The 21.8-tonne drills bore the holes for the explosives that blast ore free.

“Our surveyors will draw up a design for how the drilling should go, and then we put that card into the jumbo’s computer, and the jumbo will automatically take the drill-bit to where the hole is supposed to be on that pattern. The only thing the operator does is make sure it’s not going to drill into where there’s a remnant of the last (explosive) round.”

Opinion: Change is challenge for mining – by Phil Hopwood (Vancouver Sun – May 12, 2014)

May 13, 2014

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

Phil Hopwood is the Canadian mining sector leader at Deloitte.

Canada’s mining companies must embrace innovation and improve productivity to ensure their future success

As we enter BC Mining Week, it is an appropriate time to take an honest look at the state of the industry in the province. Mining is one of British Columbia’s vital resource industries. It contributed $9.2 billion to the provincial economy in 2012 and it is very much an industry in flux.

Historically, mining companies have waited out the storm as markets have swung, but this time it is different. We are seeing it is imperative for these companies to adjust their way of doing business if they want to survive and thrive. Mining firms continue to be confronted with the compounding challenges of cost inflation, falling commodity prices, supply-demand imbalances and decreased productivity levels.

As skilled workers retire from the workforce, and we continue to see the number of graduates in degrees such as mining engineering decline, mining companies, especially in B.C., need to embrace innovation and revise their core systems and processes while applying new approaches to financial, safety and talent management programs as well as external relations with communities, governments, shareholders and regulators.