Canadian Media Resource Articles – Page 454

Saskatchewan Premier Brad Wall renews attacks on possibility of federal carbon tax, defends Energy East – by Sean Craig (Financial Post – June 15, 2016)

June 15, 2016

http://business.financialpost.com/

Saskatchewan Premier Brad Wall renewed his attacks on the idea of a federal carbon tax Tuesday, suggesting that attempts to put a price on carbon could face legal obstacles.

“If the federal government wanted to come with some sort of unilateral carbon tax plan, we think they’re constitutionally restricted from taxing other governments,” he said following a speech on the Energy East pipeline Tuesday afternoon at the Empire Club in downtown Toronto. “In our province that would mean SaskPower and SaskEnergy.”

Wall’s comments come following reports that federal Finance Minister Bill Morneau is considering a national carbon tax. Last week, Prime Minister Justin Trudeau said part of his government’s energy policy objective is to ensure there is a minimum carbon price across the country.

Indian govt steps up mineral exploration ahead of private sector entry – by Ajoy K Das – MiningWeekly.com – June 13, 2016)

June 14, 2016

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

KOLKATA (miningweekly.com) – Indian government-owned and -operated mineral companies are stepping up exploration projects across the country as the government hopes it would help catalyse more private sector investment.

“The Indian government has put in place an efficient framework to attract private, domestic and foreign investment into mineral exploration in the country. But private investments in long gestation projects typically come in with a lag and, therefore, various government-owned entities are being prodded to take a lead,” an official in the Ministry of Mines said.

There has been a flurry of activity among provincial and federal government-owned mineral and mineral processing companies to announce exploration projects.

Turquoise Hill shares soar as takeover rumour back in spotlight – by Peter Koven (Financial Post – June 14, 2016)

June 14, 2016

http://business.financialpost.com/

One of the Canadian mining sector’s most popular takeover rumours is back in the limelight. Shares of Turquoise Hill Resources Ltd. jumped 13 per cent on Monday, closing at $4.16, after Britain’s Sunday Times reported that Rio Tinto Ltd. hired bankers at Goldman Sachs to study a potential privatization of the Vancouver-based company. Turquoise Hill is currently worth $8.3 billion.

It has been nearly 10 years since Rio Tinto first invested in Ivanhoe Mines Ltd., the predecessor company to Turquoise Hill. And in 2012, it became the firm’s controlling shareholder. It is no secret that Rio covets Turquoise Hill’s Oyu Tolgoi mine in Mongolia, and experts were not surprised by the talk that the company is back in play.

“It’s a recurring headline,” said Sasha Bukacheva, an analyst at BMO Capital Markets. Some industry watchers think it is inevitable that Rio will eventually boost its stake in Turquoise Hill. But given the recent positive developments around Oyu Tolgoi, there is some logic for the mining giant to make a move soon.

EXPENSIVE: Increase in costs for cleaning up abandoned mine sites in British Columbia – by Robert Seagraves (Canadian Mining Journal – June 13, 2016)

June 14, 2016

http://www.canadianminingjournal.com/

Information recently released by the B.C. Crown Contaminated Sites Program (CCSP) has Mining Watch Canada calling on the provincial government to “stop talking and start acting” to prevent future mine sites environmental disasters.

MiningWatch Canada supports both the Auditor General’s and the Union of BC Indian Chief’s, (UBCIC) recommendations for a stricter, independent environmental oversight of the mining sector in BC, as well as a much stronger financial security regime that would ensure that the public is never left to foot the bill to clean up contaminated sites.

“Almost two years after the Mount Polley mine disaster, multiple cases of environmental mismanagement, and exponentially growing costs to clean up contaminated mine sites at taxpayers’ expense, it’s about time the B.C. government starts ‘walking the talk’ on desperately needed reforms in the province’s mining sector,” says Ugo Lapointe, Canada Program Coordinator at MiningWatch Canada.

Glencore: Massive investment in coal mines needed – by Frik Els (Mining.com – June 13, 2016)

June 14, 2016

http://www.mining.com/

In its first Sustainability Development report dealing with climate change released on Monday, Glencore argues that despite the rapid growth in renewable sources, coal will continue to be a mainstay of the global energy mix.

The Swiss mining and commodities trading giant said demand for coal was expected to grow by roughly 7% through 2030 to just over 6 billion tonnes of coal equivalent (btce) from 5.6 btce in 2013.

The growth is primarily driven by emerging markets that continue to build low cost, coal-fired electricity generation plants. Cumulative demand over the period of the study amounts to between 19 – 21 billion tonnes and in order to meet future demand 500 million to 1 billion tonnes of export capacity would have to be developed.

Canada must invest more in its Indigenous people: OECD report – by Levon Sevunts (Radio Canada – June 13, 2016)

June 14, 2016

http://www.rcinet.ca/en/

The new Liberal government ought to continue sharing more of the fruits of Canada’s growth with the country’s Indigenous population, says a new report presented today at the opening of the 22nd International Economic Forum of the Americas Conference of Montreal.

The latest Economic Survey of Canada prepared by the Organization for Economic Co-operation and Development (OECD) was presented by OECD Secretary-General Angel Gurría and Canada’s Finance Minister Bill Morneau at the three-day conference attended by dozens of leading politicians, civil society representatives and business figures from Canada and across the globe.

Canada should be improving outcomes for its Aboriginal Peoples through providing more resources for their education, training, health care, housing, entrepreneurship and environmental infrastructure servicing their communities, says one of the key recommendations of the survey.

New approach needed to prevent gold miners’ sins of the recent past – by Henry Lazenby (MiningWeekly.com – June 10, 2016)

June 13, 2016

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

TORONTO (miningweekly.com) – For more than two decades, gold miners have tried to conduct business using a model regarded by several analysts as fundamentally wrong, a model whereby miners aim to grow yearly revenue at all costs, driven by increasing output and replacing reserve and resource bases.

However, despite much higher gold prices for over a decade from 2003 onwards, declining output, stagnant or dwindling reserves and resources, negative earnings and massive asset write-offs have proven that this business model is an abject failure, author of the Mercenary Geologist website Mickey Fulp tells Mining Weekly.

He says that, for them to produce more ounces at increasingly lower margins, gold miners cannot generate sufficient cash flow to meet the real costs of producing gold. “Mining is a value industry. It is not, and has never been, a growth industry,” he stresses, pointing out that, since the most recent bull market started in 2003, most of the major producers have failed to be profitable.

Ontario is fighting climate change the wrong way – Editorial (Globe and Mail – June 11, 2016)

June 13, 2016

http://www.theglobeandmail.com/

Let’s start with the good news. The national debate over global warming has largely moved on from arguing over whether anything should be done to reduce carbon emissions, to debating how best to do it. This is progress.

More good news: Ottawa and provincial governments covering the bulk of the Canadian population – British Columbia, Alberta, Quebec, Ontario – all agree with the idea of putting a price on carbon, as a way of discouraging the burning of fossil fuels. Making it more expensive to use carbon is the easiest and most efficient way to begin to lower greenhouse-gas emissions.

And now, on to the less positive news. Last Tuesday, Ontario released its “Five Year Climate Change Action Plan.” The Liberal government of Premier Kathleen Wynne could have simply brought in a carbon price and stopped there. The principle of taxing carbon has all-party support, from the Leap Manifesto wing of the NDP to Progressive Conservative Leader Patrick Brown.

OBITUARY: Nova Scotia mining pioneer dies, owed ‘deepest gratitude’ – by Rachel Ward (CBC News Nova Scotia – June 12, 2016)

June 13, 2016

http://www.cbc.ca/news/canada/nova-scotia/

Geologist Avard Hudgins, 79, discovered and promoted mines around the Maritimes

A Nova Scotia geologist and prospector’s days of exploring have ended, leaving a legacy as steadfast and unassuming as the rocks he studied. “My dad had the kindest heart, the warmest smile and face — and neverending questions,” son Lee Hudgins says.

Avard Hudgins is credited with discovering and promoting Maritime mines, several of which ended up employing hundreds of people. “He was a true Nova Scotian, Bluenoser, true Maritimer. He really believed that everything we need is here,” son and once business partner Bruce Hudgins says.

“If there were a few others Avards out here, we wouldn’t have to worry so much about jobs leaving this province, people having to leave this province looking for work.” Avard Hudgins died June 8 from cancer. He was 79.

Lundin mulls interest from multiple parties on Tenke copper mine – by Susan Taylor (Reuters U.S. – June 9, 2016)

June 10, 2016

http://www.reuters.com/

TORONTO – Lundin Mining Corp is weighing interest from “multiple parties” for its stake in the Tenke Fungurume copper mine in the Democratic Republic of Congo, Chief Executive Paul Conibear said on Thursday.

In June, Tenke mine operator Freeport-McMorRan Inc agreed to sell its majority stake to China Molybdenum for $2.65 billion to help cut its debt.

Lundin has a 24 percent stake in the mine and the right of first offer on any sale. Last month it hired the Bank of Montreal to help it consider its options. Freeport owns 56 percent of Tenke, one of the world’s largest copper deposits. Congo’s state mining firm Gecamines owns a 20 percent stake.

Lundin could do nothing and allow the China Moly deal to proceed, supplant the offer, or sell its stake.

Whati road not a subsidy to mining industry, says N.W.T. minister – by Ollie Williams (CBC News North – June 09, 2016)

June 10, 2016

http://www.cbc.ca/news/canada/north/

The N.W.T. government denies a proposed all-weather road from Behchoko to Whati is a simple “subsidy to the mining industry.”

Fortune Minerals wants to mine for cobalt, bismuth and other minerals at a site almost 50 kilometres north of Whati. The company says an all-weather road from Whati to the existing highway network is critical to the mine going ahead, and has asked the territory to look at building one.

The territory believes the road is worthwhile and will cost around $150 million. Federal funding to help meet that cost has not yet arrived, but the project remains listed in the 2016-17 business plan for the N.W.T. Department of Transportation.

Oil CEOs meet to plot new strategy as fissures within industry grow – by Claudia Cattaneo (Financial Times – June 10, 2016)

June 10, 2016

http://business.financialpost.com/

At a private meeting at the Calgary Petroleum Club last Friday, 150 or so oil and gas CEOs and other business leaders met to discuss the future of Canadian energy. Most of the companies represented were small players. The Canadian Association of Petroleum Producers, the large industry association that is seen as being dominated by the largest companies, was not invited.

The general discussion was about frustration that Canadians are being played for fools by their own governments about the real potential and cost of renewable energy, leading to rushed decisions to transition away from hydrocarbons and meet greenhouse gas reduction targets, without a fulsome and honest assessment of the consequences.

“Why are we only looking at the impacts of oil and gas, compared to the benefits of renewables?” asked Michael Binnion, the president and CEO of Calgary-based Questerre Energy Corp., who convened the meeting.

Dominion beats fiscal Q1 forecasts despite lower sales, Misery production ahead of plan – by Henry Lazenby (MiningWeekly.com – June 9, 2016)

June 9, 2016

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

TORONTO (miningweekly.com) – The NYSE-quoted stock of Canadian diamond producer Dominion Diamond Corp on Thursday rose more than 7% to $11.64 apiece after the company late on Wednesday reported a net loss beating analyst expectations.

The Yellowknife, Northwest Territories-headquartered miner, which owns an 89%-stake in the Ekati mine and is in a 40/60 joint-venture partnership with mining major Rio Tinto at the Diavik mine, reported a net loss attributable to shareholders in the quarter ended April 30 of $1-million, or $0.01 a share, compared with a net income of $12-million, or $0.14 a share diluted a year earlier.

Wall Street analysts had on average expected a loss of $0.10 a share. Dominion reported a 5% year-over-year decline in revenue to $178.3-million. It explained that despite declaring commercial production at the Misery Main kimberlite pipe ahead of schedule in May as a result of changes to the prioritisation of mining activities during the quarter, the transitional period at Ekati continued to impact earnings.

Saskatchewan’s Brad Wall warns the oilpatch is under siege by activists – by James Wood (Calgary Herald – June 8, 2016)

June 9, 2016

http://calgaryherald.com/

“Alberta has made their decision. I think the timing for another new national tax,
carbon tax or levy of some sort, is just wrong,” he said, comparing the situation
to a hypothetical new tax on vehicles being introduced when the auto industry
was in turmoil during the economic crisis of 2008-09….Wall said he isn’t
suggesting governments shouldn’t try to curb greenhouse gas emissions but he
downplayed Canada’s 1.6 per cent contribution to global carbon output.

Saskatchewan Premier Brad Wall came to the heart of the oilpatch Wednesday to warn that the energy industry is under “existential threat” from environmental activists.

In a speech to the Explorers and Producers Association of Canada at the Petroleum Club, Wall slammed the idea of a national carbon tax and took aim at both the United States government for rejecting the Keystone XL pipeline and other Canadian provinces for throwing up obstacles to energy transportation projects.

Wall, whose Saskatchewan Party was recently re-elected for a third term, said the energy industry needs defenders against “an ever-growing matrix of activists,” citing proponents of the Leap Manifesto within the NDP and the divestment movement that calls for companies and public bodies to shed their energy holdings.