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British Columbia Mining

New Gold signals delay at B.C. mine as low prices bite – by Peter Koven (National Post – December 14, 2013)

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

Thanks to plunging gold prices, a British Columbia project that looked like a priority for New Gold Inc. a year ago is not such a priority anymore.

The Vancouver-based miner announced late Thursday it will put its Blackwater project on the backburner and focus on building the smaller Rainy River project first. The announcement came as the company released results from a feasibility study on Blackwater.

The results were roughly in line with an economic assessment released last year. But the gold market is much weaker today than it was then, meaning the expected returns on the project are lower as well.

At a gold price of US$1,300 an ounce (above the current level of US$1,235), Blackwater has a net present value (NPV) of US$991-million, and a decent internal rate of return of 11.3%, according to the study. But if gold falls to US$1,150, the NPV sinks to just US$403-million. That is not attractive for a mine expected to cost US$1.9-billion.

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B.C. Indian band breaking all stereotypes – by Paul Watson (Toronto Star – December 14, 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.

LAX KW’ALAAMS, B.C.—Out of sight on the rainforest’s edge, just south of Alaska, the people of this ancient fishing village couldn’t wait any longer for rescue.

Outsiders who flew in by float plane or landed at the ferry dock, 20 minutes away along a pot-holed road in Tuck Inlet, brought federal money and stacks of government rule books telling the Tsimshian band how to spend it.

Yet the community was drowning in debt. Leaning on Ottawa’s creaky native bureaucracy for support, it was a life-or-death struggle for Lax Kw’alaams’ people to hold their heads high enough to survive. They didn’t have the experts they needed to save themselves.

So chief councillor Garry Reece and his council looked outside for a new band administrator, eager to get someone who could find profit in the big water and trees that surround them.

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First Nation seeks equal face-time to lobby feds on New Prosperity – by Derrick Penner (Vancouver Sun – December 13, 2013)

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

With B.C. Energy and Mines Minister Bill Bennett in Ottawa lobbying in favour of Taseko Mines Ltd.’s New Prosperity mine proposal in the province’s Interior, the First Nation affected by the project is seeking equal time with federal ministers to make their case as to why the mine shouldn’t be built.

And the Tsihlqot’in National Government warned federal decision makers that it will oppose any decision approving the project in court, which could leave the Crown on the hook for millions of dollars in compensation to Taseko if an approval is rejected.

Chief Joe Alphonse, Tribal Chair for the Tsihlqot’in National Government, said “it is a disgrace” for Bennett to be lobbying for the mine project despite two versions of Taseko’s proposal both receiving federal environmental assessment reviews that concluded the project would pose significant, irreversible risks to the environment.

Bennett went to Ottawa for meetings with four federal ministers and a dozen B.C. MPs to express his confidence in Taseko’s ability to build the mine without serious damage to the environment and deliver the message that the project is important for the economic development of the Cariboo region.

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B.C. mines minister to lobby for New Prosperity project – by Derrick Penner (Vancouver Sun – December 10, 2013)

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

Environmental review found long list of concerns, but Bill Bennett says B.C. economy needs the mine

Mines Minister Bill Bennett is heading to Ottawa to support the contentious New Prosperity mine proposal in the Cariboo, the minister said Tuesday.

Bennett, speaking to project boosters brought together by the B.C. Chamber of Commerce in Vancouver, said he will go to the national capital Thursday to tell his federal counterparts that the province considers the $1.5-billion New Prosperity mine an important piece in its economic plan.

“I’m going to seek to influence the decision, of course,” Bennett said to reporters. “I want them to say yes because they can say yes. I want to make sure they have all the information to do that.”

A decision on whether the open-pit copper-gold mine goes ahead rests with federal Environment Minister Leona Aglukkaq. She is studying a second review by the Canadian Environmental Assessment Agency, which concluded the mine would have significant environmental impacts. Taseko Mines Ltd. is disputing a major element that went into that conclusion.

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Court overturns B.C. government’s ruling that rejected mine – by Matthew Robinson and Derrick Penner (Vancouver Sun – December 10, 2013)

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

Ministers’ decision to stop $2.5-billion project failed test of ‘procedural fairness,’ judge says

VANCOUVER — Prospects for a proposed open-pit gold and copper mine in northern B.C. improved this week after a B.C. Supreme Court justice turfed a previous decision by two senior provincial government ministers to reject the project.

Pacific Booker Minerals Inc. asked the B.C. Supreme Court in April to overturn Environment Minister Terry Lake and Energy, Mines and Natural Gas Minister Rich Coleman’s rejection last September of its $2.5-billion mining project, located 65 km north of Smithers at Morrison Lake. In a decision released Monday, Justice Kenneth Affleck set aside the ministers’ decision, raising the possibility the mine could yet proceed.

“(The) ministers’ decision refusing to issue the certificate failed to comport with the requirements of procedural fairness,” wrote Affleck in his decision, which awarded costs to the company.

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Massive investment will complete Kitimat smelter project – by Richard Gilbert (Journal of Commerce – December 9, 2013)

http://www.journalofcommerce.com/

Rio Tinto is planning to invest US$2.7 billion to complete the modernization of its aluminium smelter in Kitimat, B.C., while the company is cutting back on capital spending at projects around the world.

“For nearly 60 years, the smelter has been a major impetus for the economic development of northwest British Columbia,” said Jean Simon, president, primary metal, Rio Tinto Alcan.

“We are very proud to announce this US$2.7 billion investment to complete the modernization project. This is one of the largest private investments in B.C.’s history and it will ensure the sustainability of the aluminium business in Kitimat for decades to come.”

Rio Tinto announced on Dec. 1 that the US$3.3 billion Kitimat modernization project will be completed in 2014.
The project involves the demolition of several buildings on the site of the existing smelter and clearing space for a new plant.

The project began in 2011 and will create 2,500 jobs during the peak period of the construction phase.

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Gold fever still burning among fanatics despite plummeting prices – by Paul Luke (The Province – December 8, 2013)

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

The yellow-eyed horde that overruns the Vancouver Convention Centre next month will look like 9,000 shiny Gollums escaped from The Hobbit, all chanting “precious metal” in unison.

It’s going to resemble an epidemic of 24-karat zealots, a gang of metallic cheerleaders, an orgy of apocalyptic paranoia. Most of all, it’s going to look like a swarm of golden insects finally come home. Because that’s what these people are – gold bugs.

And Vancouver is the gold-bug capital of the world. Next month, 8,000 to 9,000 gold bugs will storm the Vancouver Convention Centre for two days of what is billed as the world’s largest investment conference dedicated to resource exploration.

These gilded zealots are unfazed by gold’s tumbling price this year. For a gold bug, lower prices simply mean you can buy gold and gold stocks more cheaply, and wait for them to resume their inevitable climb.

From simple gold-buying hobbyists to dogmatics who despise Richard Nixon for taking the U.S. off the gold standard in 1971, the conference will be glittering heaven.

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Taseko requests Federal Court review of New Prosperity environmental assessment – by Dene Moore (Canadian Business Magazine – December 2, 2013)

http://www.canadianbusiness.com/

VANCOUVER – The Canadian Press – The proponent of a once-rejected gold mine in the British Columbia Interior has filed an application for judicial review of a second critical environmental assessment that found the project would cause significant adverse environmental effects.

Taseko Mines Ltd. (TSX:TKO) is asking the Federal Court to quash the federal panel findings and declare that panel members failed to observe procedural fairness at the hearings held earlier this year.

The panel “based its decision on an erroneous finding of fact that it made in a perverse or capricious manner or without regard to the material before it…,” said the application filed in Vancouver on Monday.

Taseko said the panel based its conclusions on faulty information — failing to account for a design feature intended to prevent seepage of contaminant material from a tailings storage facility. “Taseko had no choice but to file this application in order to comply with a 30-day time limit,” Taseko president Russell Hallbauer said in a news release.

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Opinion: Critics of coal shipments are misinformed – by Mark Gordienko, Steve Hunt, Brian Cochrane and Tom Sigurdson (Vancouver Sun – November 27, 2013)

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

B.C. can’t afford to lose 26,000 jobs supported by the coal industry

Mark Gordienko is President, International Longshore and Warehouse Union Canada; Steve Hunt is Director, United Steel Workers District 3 [Western Canada]; Brian Cochrane is Business Manager, International Union of Operating Engineers Local 115; Tom Sigurdson is Executive Director, B.C. Building Trades.

Our unions’ members are responsible for mining and transporting metallurgical coal from British Columbia to markets overseas. So we welcome the positive Environmental Impact Assessment released Nov. 18 by Port Metro Vancouver on the proposed Fraser Surrey Docks expansion.

The study, by experts such as Dr. Leonard Ritter, Professor Emeritus of Toxicology at the University of Guelph’s School of Environmental Sciences, shows that many complaints by environmental groups and others are misinformed or exaggerated.

The Environmental Impact Assessment states: “The project is not likely to cause significant adverse environmental, socio-economic, or health effects, taking into account the implementation of the main risk mitigation measures described above, in addition to mitigation measures, construction and operation management plans, best management and standard practices.”

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Mining firm worried about review process – by Peter James (Prince George Citizen – November 26, 2013)

http://www.princegeorgecitizen.com/section/princegeorge

A mistake in an environmental review could shake the confidence Canadians have in the regulatory system, according to a representative of a mining company alleging a major error has already occurred.

Taseko believes Natural Resources Canada erred when evaluating the seepage rates of its proposed New Prosperity copper and gold mine near Williams Lake by modeling the potential impacts using an incorrect design for the tailings pond. The company is calling on Environment Minister Leona Aglukkaq to “correct the record” when she makes a final determination on whether the project could cause significant adverse effects.

“You expect, and I think the public expects, that these processes are going to be thorough and fair and appropriate, after all these are significant projects in Canada that go through an environmental assessment of this nature,” Taseko vice-president of corporate affairs Brian Battison said Monday. “People need to have confidence in the process, that the process is fair and unbiased. A mistake like this kind of calls into question the validity of the process and that has the potential to shake people’s confidence in the process.”

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The need to achieve balance in the panel review process – by Karina Briño (Vancouver Sun – November 25, 2013)

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

Karina Briño is President and CEO of the Mining Association of British Columbia.

In resource-rich British Columbia, it is not surprising that much of the conversation around economic growth and job creation has surrounded a broader discussion about sustainable resource development. Often the case is compelling, weighing the economic benefits alongside an industry wide commitment to environmental safeguards and stewardship.

As British Columbians we are very fortunate to live in a place that has rigorous and stringent environmental and consultation processes. These processes are important and play a critical role in creating a forum for public input and community consultation that help ensure the development of our natural resources is done in a sustainable, respectful manner.

This is in part achieved by the panel environmental review process, which includes a community hearing component. The panel hearing process is set up to be a quasi-judicial forum that is arm’s length from government. It is an opportunity for proponents, stakeholders and community members alike to come to the table on the important issue of sustainable development.

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Canada: BCSC Commissioned Report Provides Cold Comfort For Junior Miners And Investors – by Arman Farahani and Cory Kent – McMillan LLP (Mondaq.com – November 23 2013)

http://www.mondaq.com/

On October 17, 2013, the British Columbia Securities Commission (the BCSC) released a report prepared by KPMG entitled “B.C. Junior Mining at a Crossroads: Executive Management’s Perspective” (the Report). The BCSC commissioned the Report in connection with its annual Capital Ideas conference to obtain a better understanding of (i) the downturn in B.C.’s junior mining sector, and (ii) the factors that have impacted the availability of financing for junior mining companies (Juniors) engaged in financing activities in B.C.

The Report is based on interviews with senior executives from 15 British Columbian Juniors, largely in exploration phases across a variety of mineral sectors, including gold, copper, uranium, silver and other base metals.

In short, the participants were of the opinion that most of the root causes that have led to the current state of financing for Juniors were due to the cyclical nature of the mining industry and current economic and market conditions. The general comforting (or discomforting) message from the participants is to “wait it out – the market will come back”, with words of caution that the next one to two years will likely continue to be challenging for Juniors seeking financing.

All participants indicated that current market conditions are not favourable for attracting retail and institutional investment in Juniors.

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B.C. prepared to risk water quality on Elk Valley coal mine – by Mark Hume (Globe and Mail – November 25, 2013)

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 — When the provincial government issued an environmental certificate to Teck Coal Ltd. this fall it appeared pollution problems associated with a massive new coal mine in the Elk Valley had been resolved.

But background documents show that is far from the case. The British Columbia government has rolled the dice on the project and is hoping that Teck’s money – and experimental water-treatment plants – can save the Elk River.

A document that gives the minister’s reasons for issuing a certificate for the Line Creek mine, states the environmental assessment “was not able to conclude on the magnitude, reversibility and therefore significance” of an array of pollutants. Nor could it determine “the effectiveness” of two planned water-treatment facilities that will use new methods in an attempt to filter out selenium.

In other words, the government knows the new mine is going to pollute but it doesn’t know whether the water-treatment plan will work.

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Mine firm says panel review error outrageous – by Terri Theodore (The Canadian Press/Global News – November 19, 2013)

http://globalnews.ca/toronto/

VANCOUVER – The Canadian Environmental Assessment Agency is reviewing a complaint from the company proposing a $1.5-billion mine in British Columbia’s Interior that a mistake was made in a joint environmental assessment of the project.

Taseko Mines Ltd. (TSX:TKO) said the error is so outrageous it’s nearly unfathomable.

In a letter to the Canadian Environmental Assessment Agency, the company questioned why the panel conducting an environmental review on the proposed New Prosperity mine would use incorrect information for its final assessment.

On Tuesday, the agency confirmed that the information provided by Taseko was being reviewed by officials within the agency.

It didn’t say what action, if any, would be taken if Taseko’s claims are proven correct. Earlier this month, an agency panel released a report saying it didn’t believe Taseko’s design for the proposed copper and gold mine could avoid contaminating nearby Fish Lake. The survival of the lake is at the centre of the dispute.

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‘Balance’ required in Ring of Fire development, says B.C. First Nations leader – by Erica Lenti (The Canadian Press/Canadian Business Magazine – November 12, 2013)

http://www.canadianbusiness.com/

TORONTO – A First Nations leader from B.C. says aboriginal communities in Ontario’s Ring of Fire could benefit from striking a balance between mining development and land preservation.

Annita McPhee is president of the northwestern B.C. First Nations Tahltan Central Committee and says a balanced approach is required in negotiating how the northern Ontario mineral deposit will be developed.

McPhee says while it is important to sustain the mineral-rich land in the James Bay First Nations territory, opening it up to external industries offers potential monetary and employment benefits. In the Tahltan territory of B.C., mining development created tensions between First Nations and mining corporations from as early as 2005.

Led by McPhee, her group has negotiated $2 billion in resource development since 2011 in non-sacred pockets of Tahltan land, and another $11 billion is being considered. In return, the Tahltan have seen increased employment and funding for health care and cultural programs.

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