Canadian Media Resource Articles – Page 642

A model for First Nations relations – by David Zimmer (National Post – July 9, 2014)

July 9, 2014

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

David Zimmer is the Ontario Liberal Minister of Aboriginal Affairs.

The Supreme Court of Canada’s recent decision in the Tsilhqot’in Nation case arising out of British Columbia will inform the way business is conducted across Canada. Here in Ontario, I believe the ruling is consistent with the progress our government has been making in the area of aboriginal consultation and resolving land claims for many years — an approach that has created a province well-prepared for sustainable development benefitting aboriginal people, industry and all Ontarians.

The Tsilhqot’in Nation decision builds on earlier decisions of the Supreme Court, including the Delgamuukw, Haida and Mikisew cases, that have given meaning to the constitutional protection of aboriginal and treaty rights and established principles that guide governments in their relationships with aboriginal communities. Consistent with the spirit of these decisions, Ontario launched the New Relationship Fund in 2008.

The Fund has so far helped almost 200 First Nations and Métis communities and organizations engage in consultations with governments and industry on resource-based economic development activities. And the principles underlying the decisions are the same as those that led the province to modernize the Mining Act in 2009, creating the first legislation in Ontario that embeds consultation principles related to established or asserted treaty and aboriginal rights.

It’s also in the spirit of these earlier rulings that, this year, the government signed a historic regional framework agreement with the nine Matawa member First Nations for negotiations on sustainably developing the Ring of Fire.

Copper miners’ paths diverge over Indonesia export tax – by Michael Taylor and Allison Martell (Reuters India – July 8, 2014)

July 8, 2014

http://in.reuters.com/

JAKARTA/TORONTO – (Reuters) – Six months into a dispute with Indonesia’s government that has halted copper exports, two U.S. mining giants are using very different tactics in a bid to resume shipments – behind the scenes talks or raising the stakes with an arbitration claim.

Freeport-McMoRan Copper & Gold Inc and Newmont Mining Corp account for 97 percent of Indonesia’s copper production, exporting tens of thousands of tonnes of concentrate a month before a row over a new export tax halted shipments.

As the latest bid to broker a deal runs up against Indonesia’s presidential election, Freeport is pushing on with government-led talks, with chief executive Richard Adkerson in Jakarta again last week.

Newmont, however, has filed for international arbitration, pushing to uphold the letter of the law on its contract but drawing a rebuke from the government which has questioned its “good will” in talks.

“Freeport is using the carrot and I guess Newmont is using the stick,” said Chris Mancini, analyst at Gabelli Gold Fund. Gabelli Funds holds stakes in both companies.

In an effort to push miners to build domestic smelters and processing plants, Indonesia introduced new mining export rules in January.

Mining for the truth in Guatemala – by Melinda Maldonado (MACLEAN’S Magazine – July 8, 2014)

July 8, 2014

http://www.macleans.ca/

What lawsuits claiming rape and murder in a Guatemalan jungle mean for Canadian companies abroad

Rosa Elbira Coc Ich was warming tortillas when the men came. Their trucks rumbled down the dirt road toward her home, a shack she’d rebuilt in eastern Guatemala after a forced eviction 12 days earlier. It was Jan. 17, 2007, and as hundreds of police, military and private security workers returned, she heard their voices pierce the thick tropical brush as they called out for the leaders of the community.

Nine of the men pushed their way into her home.

“Where’s your husband?” a policeman asked, pressing a gun to her temple, according to documents filed as part of a lawsuit in an Ontario court. When she couldn’t answer, the officer said he was going to kill her. Then the men pushed her to the floor, ripped off her clothes and covered her mouth. Ich claims all nine of them raped her.

Nearby 10 other women from the Mayan Q’eqchi’ community say they experienced the same ordeal—gang rapes at the hands of police, military and private security from the Fenix nickel mine, 300 km northeast of Guatemala City—during evictions from the homes they’d built on the mine’s property.

Why gold looks set to lose its shine – by Scott Barlow (Globe and Mail – July 8, 2014)

July 8, 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.

The price of gold, the value of the U.S. dollar and inflation are all closely tied, and this can make it difficult to figure out whether the current bullion price is high or low based on history.

The good news is that this problem can be solved by adjusting the gold price for inflation. The bad news is that once this is done, the future does not look bright for gold investors.

Monday’s closing gold spot price was $1,317.11 (U.S.) per ounce. To pick an example from history, the closing gold price for July 7, 1980, was $667.50. The nominal dollar difference is big, but that doesn’t mean much until we adjust for the difference in spending power of the U.S. dollar caused by rising prices.

Because of inflation, the spending power of one U.S. dollar has been more than halved since 1980. So just comparing the nominal price of gold then and now makes no sense. In effect, these are different currencies.

To assess whether gold is more or less expensive now, it is necessary to calculate an inflation-adjusted gold price using the same currency.

Environmental group uses poll to battle oil sands PR – by Shawn McCarthy (Globe and Mail – July 4, 2014)

July 8, 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.

OTTAWA – A Toronto-based environmental group is challenging the aggressive messaging from the federal government and industry on the economic benefits of the oil sands with the release of a poll that suggests Canadians are ill-informed about the impact of the sector.

In a survey released Friday, Environmental Defence said 57 per cent of respondents overestimated the contribution of the oil sands to the national economy. According to Statistics Canada, oil sands production accounts for 2 per cent of the country’s gross domestic product, but more than 40 per cent of respondents pegged the figure at 12 per cent of GDP or higher.

The environmental group focused on the value of production from existing oil sands projects, but it did not account for current growth and new jobs that result from the construction of new projects or the pipelines and other infrastructure needed to get higher volumes of crude to market.

Prime Minister Stephen Harper and his ministers have routinely characterized the oil sands specifically – the the resource sector generally – as the engine of economic growth for Canada, and warn against any action that would slow down development.

Taseko sees ‘positive future’ for New Prosperity mine after high court ruling – by Gordon Hoekstra (Vancouver Sun – July 6, 2014)

July 7, 2014

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

Tsilhqot’in Nation says company is in denial about central-B.C. project, mine is dead

A Supreme Court of Canada decision may have opened the door to a twice rejected gold and copper mine mired in a legal battle.

That’s because the $1.1-billion New Prosperity mine falls outside the 1,750 square kilometres of territory in central B.C. for which the Tsilhqot’in now has title and where consent is needed for industrial projects, says Taseko Mines Ltd.

The aboriginal title question always hung over the project, and now it’s settled, says the company. “It’s the only mine development deposit (in British Columbia) that people now know for sure is not in aboriginal title area,” says Brian Battison, vice-president of corporate affairs for Taseko.

The Tsilhqot’in continue to oppose the project, citing hunting and trapping rights, and admonish the company for continuing to push a project unwanted by First Nations. “I think Taseko has a very twisted view of things. I think it’s very, very irresponsible,” said chief Joe Alphonse, tribal chairman of the Tsilhqot’in.

The continuing dispute over New Prosperity shows how the complex nature of resource development in British Columbia — where aboriginal, industrial, government and local non-native interests often overlap — will continue to pose a challenge despite the landmark Supreme Court of Canada decision.

Thomas Berger’s latest fight: Keeping the Yukon wilderness wild – by Jason Unrau (Globe and Mail – July 7, 2014)

July 7, 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.

It’s been half a lifetime for Thomas Berger since he recommended – successfully – that a proposed pipeline along Yukon’s Beaufort Sea coast be scrapped, and a trunkline from the mouth of the Mackenzie River delta through the Northwest Territories to Alberta be delayed indefinitely.

But the 81-year-old lawyer’s latest interest in Canada’s North is not to weigh mega-project pros and cons, but to test the limits of the government’s authority over Crown land, entwined in a modern land claim in the Yukon known as the Umbrella Final Agreement (UFA).

“My legacy goes a long way back and I won’t be around to know what people make of it,” Mr. Berger said. “But this is a case I agreed as a lawyer to undertake. I think it’s an important case.”

Mr. Berger’s clients – Nacho Nyak Dun and Trodek Hwech’in First Nations, Yukon Conservation Society and CPAWS – are suing the territorial government to try to protect a 68,000-square-kilometre Xanadu of unpopulated wilderness known as the Peel watershed.

Rich in flora and fauna – Trondek Hwech’in Chief Eddie Taylor describes the Peel as a university and a breadbasket for the First Nation – the Peel also possesses incredible mineral and hydrocarbon potential.

Quebec’s Renard diamond mine is a glimmer of hope for slowing industry – by Anna Nicolaou (Globe and Mail – July 7, 2014)

July 7, 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.

Something sparkly has caught Quebec’s eye. Nearly a decade after the most precious form of carbon was found in the northern mountains of Quebec, the first diamond mine in Quebec is opening in July. Stornoway Diamond Corp.’s Renard mine, nestled near the Otish Mountains, is projected to produce 1.5 to 2 million carats of diamonds a year.

The opening of Renard comes at a convenient time: Globally, demand for diamonds greatly exceeds supply, largely because few new mines have been discovered recently.

“There’s Renard in Quebec, DeBeers in the Northwest Territories and one pipe in Russia, that’s about it,” said Edward Sterck, diamond analyst at BMO Capital Markets. “And these are not of the same world-class scale as DeBeers in Botswana and Russia, which are now very old and in decline, so… Supply is incredibly limited.”

Diamond prices have crept higher over the past few years as demand flourishes, particularly in emerging markets such as India and China, where the growing middle class seeks luxury goods.

Work together on Gateway, for prosperity’s sake – by Mike Harris (Globe and Mail – July 7, 2014)

July 7, 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.

Mike Harris, former premier of Ontario, is a senior business adviser at Fasken Martineau and a senior fellow at the Fraser Institute.

Canada is a resource nation. In every region, its natural resource sectors, including mining, forestry, energy and oil and gas, support vital social programs and provide stable, well-paying jobs.

However, regardless of their economic contributions, major infrastructure projects face intense scrutiny – as they should. In order to proceed, these projects must balance economic development with environmental and safety protections.

Consider, as just one example, the Northern Gateway pipeline, recently approved by the federal government. Since being proposed more than a decade ago, the project’s journey hasn’t always been easy. It has faced tough criticism. But thoughtful debate has taken place and ideas have been exchanged that have resulted in a better pipeline proposal.

As a former premier, I know first-hand the experience of fighting for economic development for your province and its people, but not to the detriment of local communities and the environment. Receiving social licence for resource projects must be the leading objective for proponents; public input and consultations are paramount.

Kyrgyzstan’s Centerra Gold shares vulnerable to possible seizure after key court ruling – by Peter Koven (National Post – July 4, 2014)

July 4, 2014

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

TORONTO – The government of Kyrgyzstan has lobbed many nationalization threats at Centerra Gold Inc. over the past 17 years. But a court ruling has turned the tables and made a large chunk of the government’s own Centerra shares vulnerable to potential seizure.

The strange turn of events is tied to Canadian junior miner Stans Energy Corp., which is also active in Kyrgyzstan. In 2012, a parliamentary committee revoked Stans’ licence for a rare earths project under highly suspicious circumstances, and the company launched legal action to protect its rights.

Those efforts culminated in a key ruling this week, as an arbitration court in Moscow ordered Kyrgyzstan to pay US$118.2-million to Toronto-based Stans.

It is highly unlikely that Kyrgyzstan will respect the ruling and pay out any cash. That leaves Stans the option of securing verdicts against one or more of the state’s foreign assets. And a logical one to go after would be Kyrgyzstan’s 32.7% stake in Centerra, currently worth almost $500-million.

David Vinokurov, vice-president of corporate development at Stans, declined to comment on whether the company would target Centerra, also based in Toronto, shares for payment. But he acknowledged that it would be a logical place to look.

Iron failings [Labrador Trough] – Editorial (St. John’s Telegram – July 04, 2014)

July 4, 2014

http://www.thetelegram.com/

The Labrador Trough may have seen a feeding frenzy in its day, but the herd seems to be thinning. Lured by cheaper iron from competitive sources, customers have been moving on to greener pastures.

The latest victim: Labrador Iron Mines, which announced Wednesday it’s suspending operations on both sides of the Labrador-Quebec border.

Over the past financial year, the company lost $105.2 million, compared to a net loss of $129.7 million a year ago. It said 2014 will be a “development year” as it concentrates its efforts on its Houston Mine, located near Schefferville in northern Quebec. That project is slated to begin production in April 2015.

In February, Cliffs Natural Resources announced it was idling its operations in Wabush indefinitely, leaving 400 employees out of work. But optimism still springs eternal among government and industry officials.

Two days after the February closure, Premier Tom Marshall was in Wabush announcing that Newfoundland and Labrador Hydro had been instructed to forge ahead with a third line to supply power from Churchill Falls to Labrador West.

Glencore slams Australian report that it paid zero tax in three years – by Henry Lazenby (MiningWeekly.com – July 3, 2014)

July 4, 2014

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

TORONTO (miningweekly.com) – Global diversified mining giant and commodity trader Glencore has condemned a recent report by Australian media company Fairfax Media, claiming that through aggressive tax structuring, Glencore had paid zero tax over the past three years, despite earning income of A$15-billion.

Business and technology news website Business Insider had published an internal email to staff by Glencore’s coal CE, Peter Freyberg, in which he dispelled the media speculation surrounding its tax payments, saying that the firm had paid A$400-million in corporate income tax since 2011.

He also said Glencore had paid A$8-billion in royalties and taxes, including A$2-billion related to corporate income tax, in Australia since 2007.

“As you will be acutely aware, for much of this period the resource industries in which we participate have faced significant challenges including low commodity prices, high input costs and a robust Australian dollar.

“Profitability is significantly lower than during the preceding four years – the reality is that a significant proportion of Australia’s coal mines are currently operating at a loss and although we run an efficient business, we are not immune to the market conditions.

The Supreme Court’s BC land-title decision? It’s more important than you think – by Bob Rae (Globe and Mail – July 4, 2014)

July 4, 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.

Bob Rae was Premier of Ontario 1990-1995, a federal Member of Parliament 2008-2013 and leader of the federal Liberal Party 2011-2013.

Some of the reactions to the Supreme Court’s decision in the Tsilhqot’in First Nation case, which requires pipeline projects and similar developments to seek aboriginal approval, are so over the top they cannot go without comment.

Nearly forty years ago a case from the Nisga’a community known as Calder made a similar long journey through the courts, and it was there that the Supreme Court (long before the Charter) held that the arguments from both Ottawa and British Columbia that no aboriginal title or claims survived the arrival of European settlement was wrong.

The invasion and occupation of the Americas had been seen by imperial powers as a conquest of empty land, whose borders and boundaries were decided by any number of treaties and agreements signed in Europe. In the sixteenth century there was even a theological argument in the Valladolid debate about whether aboriginals were human. The doctrine of “terra nullius” was often invoked to assert the legal fiction that these lands belonged to “no one” before they were “discovered” by white people from Europe.

The Calder decision rightly blew those doctrines out of the water, and urged governments, First Nations, and other aboriginal peoples to sort out their relationships on the basis of equality and respect.

Remembering Bre-X: Suicide and the gold ‘find of the century’ – by Douglas Goold (Globe and Mail – June 24, 2014)

July 4, 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.

With its wood carvings, objets d’art and pool surrounded by palm trees, it was hard to imagine a more luxurious hotel than the Shangri-La in Jakarta. When I knocked on the door of Suite 1234, a gruff John Felderhof greeted me. It was Feb. 28, 1997, and I was on assignment for The Globe and Mail. What neither of us knew was that this would be the last interview the controversial vice-president of exploration for Bre-X Minerals Ltd. would give before the whole Bre-X fable unravelled.

Bre-X had grown from a Calgary-based penny gold stock to a $6-billion company based on its claim to have discovered one of the world’s largest gold finds in the jungles of Busang, Borneo. The story was so compelling and well-known that I was frequently stopped in the street by people who recognized me eagerly asking whether I thought the estimates would continue to grow.

It was hard to imagine they could. On a conference call a few weeks earlier, Felderhof had famously suggested the find could be as much as 200 million ounces, with a value of $70-billion (U.S.), then the equivalent to the GDP of the Philippines. Regulators were looking into the claim.

Felderhof was born in Holland but grew up in Nova Scotia, and was an old-fashioned explorer with a major discovery to his credit. But the Bre-X phenomenon was increasingly looking too good to be true.

Labrador Iron halts mines amid steel-industry slump – by Bertrand Marotte (Globe and Mail – July 3, 2014)

July 3, 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.

MONTREAL — Labrador Iron Mines Holdings Ltd. said it is halting all operations at its mines for the rest of the year, the latest industry player to fall victim to slumping demand.

The benchmark price of iron ore, used to make steel, has plummeted 30 per cent this year on rising global supply and reduced steel output in the critical Chinese market. The spot price is in the $93 (U.S.)-a-tonne range, down from almost $120 in early April, a level at which high-cost producers such as Labrador Iron can barely meet their costs. Some observers see the price falling to below $80.

Labrador Iron is experiencing “considerable strain” on its cash resources and now needs outside investment if it is to continue operations, the company’s chairman and chief executive officer John Kearney said.

Across-the-board cost-cutting measures are in place and Labrador Iron is in talks for potential financing with commodity traders, financial institutions and others, the company said. The focus for 2014 is development of the flagship, long-life Houston Mine in the Labrador Trough, it said.