Twitter

British Columbia Mining

The Horrible Reputation of Canada’s Mining Sector – by Stan Sudol

Stan Sudol is a Toronto, Canada-based communications consultant, mining columnist and blogger. stan.sudol@republicofmining.com

Biggest commodity super-cycle in the history of mankind

The future of mining has never been brighter, yet its image among the general population seems to have plunged lower than the famous Kidd Creek mine in Timmins, Ontario – the world’s deepest base metal operation. The largest rural to urban migration in the history of mankind is taking place in China. It has been often said, that China needs to build two cities the size of Toronto, Canada and Sydney, Australia to accommodate that growth, every year! Analysts estimate that China’s middle class is expanding so rapidly that it will soon overtake the current U.S. population of 312 million.

In October, 2011, the world’s population had passed the seven billion mark. India, Brazil, Indonesia, Turkey and many other developing countries are following China and urbanizing and industrializing their economies. Mining experts feel that over the next 25 years, we will need to dig out of the ground as many minerals as consumed since the beginning of mankind.

One of the biggest concerns is a shortage of skilled workers. In the next decade half the mining workforce in Canada is eligible to retire and there are significant difficulties attracting and engaging the digital generation.
According to the Ottawa-based Mining Industry Human Resource Council’s 2011 hiring report, the industry will need to hire betwee 75,280 to 141,540 new workers in Canada depending on the state of the global economy by 2021. Similar labour shortage issues exisit in other western mining jurisdicitions like Australia and the United States.

Read more

Controversial Prosperity mine proposal gets second chance – by Canadian Press (Globe and Mail – November 7, 2011)

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— The Canadian Press – A controversial proposal for a massive copper and gold mine in British Columbia will get another chance to become reality after Canada’s Environmental Assessment Agency agreed to a second review of the mine.

Taseko Mine’s original proposal failed the federal government’s first environment review, but the company has launched what it’s calling its New Prosperity proposal.

Federal Environment Minister Peter Kent instructed the agency to set up a process that will review the environmental concerns raised in the past assessment and consider the mining company’s changes.

With higher, longer-term prices for copper and gold, Taseko said it would spend an extra $300-million on the project to address the main concerns of the last environmental rejection, including the preservation of Fish Lake.

Read more

New Prosperity plan is environmentally sound – by Russell Hallbauer, President and CEO, Taseko Mines (Northern Miner – November 04, 2011)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

I read the editorial submission of Chief Marilyn Baptiste, of the Xeni Gwet’in band of the Tsilhqot’in National Government (TNG), on The Northern Miner’s website on Nov. 2.  It purported to list eight reasons why Taseko Mines’s resubmitted application to the Canadian Environmental Assessment Agency (CEAA) for the New Prosperity gold-copper project in B.C. will fail.

Ms. Baptiste’s latest comments are consistent with her wholesale rejection of any constructive dialogue around New Prosperity, which nevertheless holds tremendous value regionally, provincially and nationally.

The sentiments expressed in Ms. Baptiste’s editorial do not represent the views of the vast majority of people in Williams Lake and Cariboo communities.

Read more

Eight reasons why Taseko’s New Prosperity will fail – by Chief Marilyn Baptiste (Northern Miner – November 2, 2011)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Marilyn Baptiste is the elected chief of the Xeni Gwet’in band of the Tsilhqot’in First Nation, whose territory largely lies to the west of the Fraser River and Williams Lake, B.C., where Taseko Mines’ New Prosperity copper-gold project is located. See www.xeni.ca for more.

Investors hoping to cash in on Taseko Mines’ second bid to develop the Prosperity copper-gold mine (“New Prosperity”) should think back a year. At that time, despite assurances from the company and its president that the original Prosperity mine proposal would be accepted, it was soundly rejected by the federal government and the company’s share price plunged.

With New Prosperity, once again there is a proposal before the federal government’s Canadian Environmental Assessment Agency (CEAA) and the company’s president is saying he is confident it will be approved. And once again the federal government will have no choice but to reject it.

Here are eight reasons why the New Prosperity bid will fail:

Read more

A tale of two BC mining fiascos – by Rafe Mair (Rossland Telegraph – November 01, 2011)

http://rosslandtelegraph.com/

Rafe Mair was a B.C. MLA 1975 to 1981, Minister of Environment from late 1978 through 1979. Since 1981 he has been a radio talk show host, and is recognized as one of B.C.’s pre-eminent journalists.

There are two mining stories out of last week in Lotusland. For openers, let’s deal with “Prosperity” lake which, before the corporate flacks got involved, was called Fish Lake.

The short story is that this is a mine prospect held by Taseko Mines. While the Provincial government approved it, it was turned down by the feds who then gave the company time to put in a new proposal, which they did. With the speed of light the Canadian Environmental Assessment Agency received the new application last February and hasn’t yet decided anything.

This delay brought a fire and brimstone editorial from the Fraser Institute’s house paper, the Vancouver Sun, which threw unsourced “facts” at us, including a promise of 71,000 jobs with 5,400 new residents for the nearby town of Williams Lake.

Read more

The Right Footing: Rio Tinto Alcan and the Haisla First Nation – by David Hicks (The Global Commodities Report – October 2011)

Published by New Vanguard Media, The Global Commodities Report is a digital magazine about the benefits of resource business.

The Kitimat aluminum smelter was built smack in the middle of the claimed traditional territory of the Haisla First Nation back in the oblivious 1950s. With a $2.5 billion upgrade in the works, it was time to re-engineer the social relationship as well.

A long overdue formal agreement, called the “Haisla Nation – Rio Tinto Alcan Legacy Agreement”, has been achieved between Rio Tinto Alcan, the owner and operator of the aluminum smelter at Kitimat, British Columbia, and the Haisla First Nation, both of whom reside at the headwaters of the Douglas Channel in northwestern BC.

While the first relationship protocol and series of meetings between the parties began just over a decade ago, the current relationship took work, but both parties ratified the 30-year renewable agreement in support of the aluminum operations at Kitimat.

Read more

The West grabbing a growing share of Canada’s investment capital – by Gordon Hamilton (Vancouver Sun – October 29, 2011)

The Vancouver Sun, a broadsheet daily paper first published in 1912, has the largest circulation in the province of British Columbia.

Strong commodities markets, especially mining, pulling growing volume of M&A activity to western provinces

The Western provinces are taking a bigger share of Canadian business investment as a result of the global commodities boom, a PricewaterhouseCoopers (PwC) report on mergers and acquisitions shows.

Ontario and Quebec continue to be the top investment destination, according to the report Deals Quarterly Special Feature, but the two Central Canada provinces are losing market share to the West. The report looks at merger and acquisition activity province-by-province over the last 10 years.

“There is certainly a shift, a trend,” Kristian Knibutat, PwC Canadian deals leader, said in a teleconference on the report Friday. He said the geographic shift comes as no surprise, given the “super cycle” that commodities have been experiencing over the decade.

Read more

New Prosperity mine proposal must be put on review fast-track – Vancouver Sun Editorial (October 27, 2011)

The Vancouver Sun, a broadsheet daily paper first published in 1912, has the largest circulation in the province of British Columbia.

A fact sheet about Williams Lake put out by the city’s economic development office cites statistics on building permits, business licences, real estate and the labour force, providing a snapshot of the local economy.

Under the Industry subheading, it lists the price of just two commodities, gold and copper, the lifeblood of the region. At its doorstep lies one of Canada’s largest gold-copper deposits, holding the promise of 13.3 million ounces of gold and 5.3 billion pounds of copper.

Primary industries and services related to them represent the largest source of employment here and the income generated supports other businesses that maintain the city’s viability and vitality. So, when former federal environment minister Jim Prentice killed Taseko Mines’ Prosperity mine last November, it hit the city hard.

Read more

B.C. shells out $30 million in settlement of [uranium] mining company case – by The Canadian Press (Canadian Business Magazine – October 21, 2011)

http://www.canadianbusiness.com/

VANCOUVER – At a time when British Columbia’s premier has staked her jobs agenda on a burgeoning mining industry, the province has agreed to hand over $30 million to one company in a settlement over what the company’s president called “dirty dealings.”

Boss Power Corp. and lawyers for the provincial government were scheduled to square off in court this month over the company’s claim that the province had effectively expropriated its uranium deposit 50 kilometres northeast of Penticton without compensation.

Instead, lawyers for the government agreed to the pay out, saying in a news release earlier this week that B.C. had reached a legal agreement for Boss Power to surrender all claims to its uranium and mining rights.

Read more

MININGWATCH NEWS RELEASE: ATTEMPT TO REVIVE PROPOSED PROSPERITY MINE MUST END NOW Oct 19, 2011

 Source: http://www.newswire.ca/en/story/861389/attempt-to-revive-proposed-prosperity-mine-must-end-now

Posted on behalf of the Tsilhqot’in National Government-MiningWatch

[MiningWatch is providing logistical support to the Tsilhqot’in during their Ottawa vist and will continue to support them with techncial reviews of the project and communications support.]

Company submits option already reviewed and found to be worse than original plan

OTTAWA, October 19, 2011: The Tsilhqot’in Nation, supported by BC and national chiefs, today called on the Canadian Environmental Assessment Agency (CEAA) and the federal government to reject the re-bid Prosperity mine project without further waste of time and tax dollars.

“The company is on record admitting this new option is worse than the one that was rejected last year, and a CEAA review panel has already agreed with that assessment,” said Chief Joe Alphonse, Chair of the Tsilhqot’in National Government, which represents six First Nations.

Read more

Open Letter: UBCIC Supports Tsilhqot’in Nation and Call for Rejection of “New Prosperity” Mine (October 19, 2011)

The Union of British Columbia Indian Chiefs was founded in November, 1969, by a majority of Indian chiefs in BC, partly in response to the federal government’s 1969 White Paper, which was a blueprint for assimilating Canada’s First Peoples, and partly as an inevitable outcome of a growing conviction of many of our people that our survival in the face of such policies depended upon our ability to work together. The goal of the UBCIC is to support the work of our people, whether at the community, nation or international level, in our common fight for the recognition of our aboriginal rights and respect for our cultures and societies.

October 19, 2011

Prime Minister Stephen Harper
Government of Canada

Premier Christy Clark
Province of British Columbia

Dear Prime Minister Harper and Premier Clark:

Re: UBCIC Support for Tsilhqot’in Nation and Call for Rejection of the “New Prosperity” Mine

We are writing with respect to Union of BC Indian Chiefs (UBCIC) Resolution 2011-35, “UBCIC Support for Tsilhqot’in Nation and Call for Rejection of the “New Prosperity” Mine” which was presented, affirmed and passed by consensus at the UBCIC’s 43rd Annual General Assembly on September 15, 2011.

Read more

Can $300M save Fish Lake and B.C. mining? – by Terence Corcoran (National Post – October 20, 2011)

The National Post is Canada’s second largest national paper.  Terence Corcoran is the editor and columnist for the Financial Post section of the National Post.

First Nations appear to threaten B.C. mining over Taseko’s Prosperity mine

The benefits of mining to Canada are well known. A news story in the Financial Post Tuesday suggests the industry’s contribution to the national economy may be too well known, even taken for granted, to the point where nobody much cares if $11-billion worth of GDP growth is blown away in a protracted battle with First Nations groups and environmentalists over Taseko Mines’ gold and copper project in British Columbia.

At the centre of the project, near Williams Lake, some 400 kilometres north of Vancouver, sits Fish Lake, a small 118-hectare body of water. Call it the $300-million lake. That’s the amount of money Taseko Mines has anted up to preserve Fish Lake in response to a Canadian Environmental Assessment Agency (CEAA) claim that the destruction of the lake was grounds for killing the Prosperity mine. At $300-million, or $3-million per hectare, Fish Lake is likely more valuable than Lake Tahoe.

In a 250-page panel review last July, the CEAA could find few problems with Taseko’s open-pit mine project, a $1-billion investment that would create thousands of jobs over a 24-year operating period.

Read more

Taseko floats second plan for B.C. site – by Peter Koven (National Post – October 19, 2011)

The National Post is Canada’s second largest national paper.  pkoven@nationalpost.com 

TORONTO  – The economic benefits appear to be massive. Now the main question is whether the federal government will approve it this time.

Nearly a year after Ottawa rejected Taseko Mines Ltd.’s Prosperity project in central British Columbia, the company is highlighting a third-party economic study that shows the proposed mine would increase real gross domestic product in Canada by $11-billion over the next two decades, while creating an estimated 71,000 jobs.

The study, prepared by the Centre for Spatial Economics, also suggests government revenue would rise by $9.8-billion over the life of the mine, and the B.C. population would grow by an estimated 5,400.

“It just shows you the kind of economic impact one mine can have. It’s unreal,” Taseko chief executive Russell Hallbauer said. Prosperity, 125 kilometres southwest of Williams Lake, is already one of the most controversial mining projects in Canadian history, well before any shovel has been put into the ground.

Read more

NEWS RELEASE: Taseko’s New Prosperity Mine Would Increase Real GDP by $11 Billion, Add 71,000 Jobs over 20 years, New Study Reveals

October 18, 2011, Vancouver, BC- A new comprehensive economic study of Taseko Mines’ (TSX: TKO; NYSE Amex: TGB) (“Taseko”) proposed $1.5 billion New Prosperity Gold Copper Project located in British Columbia reveals that the project would provide a significant economic stimulus to the economy, and create thousands of new jobs for Canada over its 20 year mine life.

Using a macroeconomic model of the British Columbian economy, The Centre for Spatial Economics (C4SE), who has previously developed Canadian Department of Finance fiscal forecasts, reviewed the New Prosperity Project, starting with the 2013 construction phase and ending with the anticipated 2036 closure of the mine. The conclusions of the report suggest long term contributions to national, provincial and regional economies, including a significant increase in federal and provincial revenues and sustained job growth.

On June 6th, 2011, Taseko Mines responded to an invitation by the Federal government of Canada to submit a revised proposal for the development of its Prosperity Gold and Copper deposit in BC. New Prosperity, the company’s revised plan, includes an additional $300 million in capital investment to limit the mines environmental impact, notably the preservation of Fish Lake.

Read more

Premier Clark’s best move speeding up approvals for dozens of new mining projects – Vancoucer Sun Editorial (Vancouver Sun – October 11, 2011)

The Vancouver Sun, a broadsheet daily paper first published in 1912, has the largest circulation in the province of British Columbia.

Premier Christy Clark’s pledge recently to accelerate approvals for mining projects is a rare ray of light in the gloom of economic stagnation.

With weak GDP growth, fiscal deficits, slumping stock markets, high household debt and a slight improvement in personal disposable income for much of the past decade, the prospect of eight new mines opening and another nine expanding by 2015 should prove a game-changer for British Columbia.

These projects are expected to create 1,800 new, well-paid jobs in communities where good jobs are hard to find. The average annual wage in mining last year was $108,100, income that will support families and local businesses and provide tax revenue for government to spend on what people say matters to them, namely health care and education. Besides jobs on and under the ground, mining supports auxiliary jobs in Vancouver and other urban centres where the financing, accounting, regulatory and legal work are done.

Read more