Canadian Media Resource Articles – Page 652

U.S. miner Cliffs selling ‘Ring of Fire’ exploration camp to Noront – by Peter Koven (National Post – May 23, 2014)

May 23, 2014

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

Cliffs Natural Resources Inc. is selling its exploration camp in Northern Ontario’s “Ring of Fire” mineral belt, suggesting it has little desire to spend more money in the region anytime soon.

Junior miner Noront Resources Ltd. announced Friday morning that it will buy the Cliffs camp for an undisclosed price. The deal is expected to close in the third quarter.

The transaction shows that Toronto-based Noront is committed to developing its “Eagle’s Nest” project in the Ring of Fire, which could become the first mine in the area. And it confirms that Cliffs has other priorities.

The Ontario government was counting on Cliffs, a large U.S. miner, to be the first major company to kickstart development in the remote Ring of Fire, located in the James Bay Lowlands. But Cliffs halted work on its US$3.3-billion project Chromite project in the Ring last November after failing to make traction in its negotiations with Queen’s Park. Cliffs is also dealing with an activist shareholder, excess debt and problems at its Bloom Lake mine in Quebec that require immediate focus.

Russia needs to change rules to encourage mining investment: Kinross CEO – by Peter Koven (National Post – May 23, 2014)

May 23, 2014

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

A geopolitical crisis and widespread boycott did not stop Paul Rollinson from traveling to Russia and offering some genuine criticisms of the host government’s mining laws.

Federal governments in Canada and the United States urged business leaders to skip an economic forum in St. Petersburg this week in protest of Russia’s seizure of Crimea. Some went along with the boycott, but Mr. Rollinson, the chief executive of Kinross Gold Corp., decided to attend. Russia is a crucial jurisdiction for Toronto-based Kinross, being home to the company’s lowest-cost mines.

With Crimea in the backdrop, there was more-than-usual interest in his presentation at the forum on Thursday.

Mr. Rollinson, who is cautious by nature, kept the geopolitics out of his speech. His message was that Russia has tremendous mineral potential, but needs to change the rules if it wants to attract more foreign mining investment. Kinross, which has expressed this view numerous times in the past, is the largest foreign miner in the country by far.

“We’re looking for certainty, transparency, stability and minimal red tape,” Mr. Rollinson said.

It’s time to give new life to our First Nations treaties – by John Olthuis and Bob Rae (Globe and Mail – May 23, 2014)

May 23, 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.

John Olthuis and Bob Rae are partners at Olthuis Kleer Townsend

The news that Archbishop Desmond Tutu is going to the Fort McMurray oil sands has stirred public interest. ‘Why is he going?’ and ‘what will he be saying?’ No one but the Archbishop knows exactly what he will be saying, he’s a free and eloquent spirit. He is going at the invitation of the Athabasca Chipewyan First Nation (May 30-June 1 conference co-sponsored by our law firm) to discuss how economic development in the region could be transformed in ways that respect treaty rights, protect the environment and ensure that benefits are equitably shared.

Treaty 8 was signed in 1899 as the Crown wanted to ensure safe passage for prospectos heading for the Klondike gold rush. In his brilliant book Clearing the Plains, James Daschuk describes how starvation was used as a deliberate tactic of the federal government to subjugate the Prairie population, and how a “miserly interpretation” of the Treaty from the earliest days left aboriginal people huddled in reserves, facing disease, discrimination and poverty.

Early in the 1970’s, Dene elders heard that Canada wanted to build a MacKenzie Valley pipeline. The elders said this was a violation of Treaty 8, which was a “peace and friendship treaty” and not a surrender of land treaty.

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.

Moody’s warns Canadian provinces on debt and credit ratings (You listening, Ontario?) – by Michael Babad (Globe and Mail – May 22, 2014)

May 22, 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.

Debt and taxes

Moody’s Investors Service is warning some of Canada’s provinces to get their act in gear lest their credit ratings face further pressure.

Moody’s, one of the world’s major agencies, didn’t single out any province in a new report released yesterday, pointing out that seven are in deficit. But its debt-to-revenue measure puts Ontario at the top of the naughty list.

Ontario, of course, is in the midst of an election campaign that pits the Liberals against the Conservatives as to who forms the next government.

The governing Liberals have presented a credible budget for these uncertain times, though it misses their original short-term target, forecasting a $12.5-billion shortfall, while still pledging to balance the books in line with the longer-term plan.

They also plan a jobs fund, billions in infrastructure spending and a focus on social services. The Tories, on the other hand, promise to balance the books far earlier, slash public sector positions and create a million jobs over an eight-year period, the latter being a wonderful catch-phrase but about as unrealistic as election promises come.

Barrick named in class action suit over troubled Pascua-Lama project – by David Paddon (Globe and Mail – May 22, 2014)

May 22, 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.

TORONTO — The Canadian Press – Several Canadian law firms are pursuing a class action against Barrick Gold Corp. (TSX:ABX) and some of its current and former senior officers, alleging they misrepresented how much risk the company faced when it undertook construction of the multibillion-dollar Pascua-Lama mine project in South America.

The project involves one of world’s largest deposits of gold, estimated at nearly 18 million ounces, but the company missed its original target of starting production in early 2013 due to opposition from local groups and Chilean authorities.

The suit, filed Wednesday with the Ontario Superior Court of Justice, alleges Barrick described Pascua-Lama as a feasible and highly economic project due to the low cost to construct the mine and to produce gold and silver from it, adding that the company knew or should have known that it would have to overcome significant obstacles.

“The mine is located underneath glaciers in the Andes mountains and the environment is subject to extreme temperature and weather changes. Barrick is a sophisticated mining company that has constructed and operated mines all over the world.

Kinross Gold caught up in Canada’s tensions with Russia – by Carrie Tait and Rachelle Younglai (Globe and Mail – May 22, 2014)

May 22, 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.

CALGARY and TORONTO — Kinross Gold Corp. is caught in a diplomatic row between Canada and Russia. A third of the Toronto-based company’s gold production is in Russia, and Kinross is trying not to inflame relations with Canada’s Conservative government while carrying out its fiduciary duties.

The company ignored the Harper government’s plea to boycott Russian events and is sending its chief executive officer to St. Petersburg for an economic summit this week. Its decision is seen as shrewd given that the company has a lower profile than other global companies like Morgan Stanley and Alcoa, which have heeded Western requests to stay away from high-profile events in Russia in protest against its aggression in the Ukraine.

“I don’t think it is going to cause blowback to Kinross,” said Ian Lee, a professor of corporate strategy and public policy at the Sprott School of Business at Carleton University. “They will win some kudos in Moscow, obviously, because they will be seen in Putin’s crowd to have stood up to the Canadian authorities who were pushing or promoting the boycott and the sanctions.”

Massive Russia-China gas deal to shake up LNG markets – by Nathan Vanderklippe and Brent Jang (Globe and Mail – May 22, 2014)

May 22, 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.

BEIJING and VANCOUVER – Russia has struck a deal to supply some $400-billion (U.S.) worth of natural gas to China over three decades, a breakthrough pact that solidifies ties between the nations as the West seeks to isolate Russia amid the crisis in Ukraine.

After a decade of failed attempts, the countries struck the agreement on Wednesday while Vladimir Putin and Xi Jinping, the presidents of Russia and China, were in Shanghai for a two-day conference. The deal will spark development of massive gas fields in Eastern Siberia and the construction of some 4,000 kilometres of pipelines, efforts that together are expected to cost $55-billion (US).

Under the deal, China agrees with a single stroke to buy from Russia’s OAO Gazprom nearly half the volume of natural gas consumed by all of Canada.

And for Canada, that new source of natural gas is another sign that its own ambition to become a major exporter of the commodity faces intensifying global competition. Energy companies are planning several liquefied natural gas export projects on the British Columbia coast, but Canada is well behind other international players.

Junior miners Rio Alto and Sulliden strike friendly deal to merge – by Peter Koven (National Post – May 22, 2014)

May 22, 2014

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

M&A activity continues to pick up in the mining space, as small miners Rio Alto Mining Ltd. and Sulliden Gold Corp. Ltd. are teaming up in an all-stock deal that combines similar assets located next door to each other. It is a sensible deal from a strategic standpoint. But for Rio Alto, it did not come particularly cheap.

Vancouver-based Rio Alto agreed to pay a 43% premium for Sulliden, which values the company at roughly $300-million and is well above its net present value, according to analysts. But Rio chief executive Alex Black promised investors he would create value out of the transaction “by performing.”

“A big proportion of my net worth is in Rio Alto,” he said on a conference call. “I’m not going to screw around with my investment and put that at jeopardy by making stupid decisions. This is a great decision for me as a shareholder, and therefore for every shareholder.”

Rio Alto owns the La Arena gold mine in Peru, where it has proven to be a highly capable operator. Just 30 kilometres away, Sulliden is trying to develop the Shahuindo project. Mr. Black claimed the two projects are virtually carbon copies of each other, as they have similar geology and use similar mining and processing methods. That means there should be plenty of synergies.

China and Russia’s US$400-billion natural gas deal ‘complicates’ new LNG projects – by Yadullah Hussain (National Post – May 22, 2014)

May 22, 2014

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

Russia’s US$400-billion natural gas deal strengthens Vladimir Putin’s hand and gives China greater leverage to secure better pricing deals with Canadian and other exporters looking to capture a slice of the Asian market.

“This is the biggest contract in the history of the gas sector of the former USSR,” said Mr.Putin, after state-controlled Gazprom signed a deal with China National Petroleum Corp (CNPC) Wednesday.

The deal, a decade in the making, is a coup for Mr. Putin who is keen to demonstrate his ability to find alternative markets as his primary energy customers in Europe are seeking new supply sources in the aftermath of the showdown in Ukraine.

The deal also gives Russia a strategic market share in the world’s fastest growing major natural gas market. The International Energy Agency expects China’s natural gas demand to rise 6% per year through 2035.

While details of the deal were not disclosed, analysts believe Russia secured the 30-year deal to supply 38 billion cubic metres of natural gas per annum via pipeline at US$10 per million cubic feet, compared to the US$14-US$15 per mcf for Asian gas imports.

Wynne, Hudak at odds over how to help Ontario auto industry (CBC News Canada – May 21, 2014)

May 22, 2014

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

Liberals want to ‘partner’ with business, PCs want to lower taxes, hydro rates

Ontario Liberal Leader Kathleen Wynne and Progressive Conservative Leader Tim Hudak are offering contrasting views on how best to help the auto industry prosper in the province.

Wynne was in Windsor on Wednesday, touting the importance of Ontario’s auto sector. She promised her party would to continue to work with and invest in auto manufacturers and suppliers should it form the next government. Ontarians head to the polls June 12.

“The auto sector is fundamental to this region but it’s also fundamental to Ontario,” Wynne said, speaking at Omega Tool, an auto parts supplier. Omega was previously a recipient of $440,000 in provincial money. The grant was part of a $4.5-million expansion. Dave Cecchin, president of Omega, said the grant helped create 10 “highly skilled jobs.”

“There is a direct connection between government and business … and the creation of jobs,” Wynne said. Wynne claimed that the Liberal government’s $4.8-billion investment in GM and Chrysler during the 2008 recession saved 95,000 jobs.

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.

Editorial: Aboriginals can’t veto everything, despite best intentions (Vancouver Sun – May 21, 2014)

May 21, 2014

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

United Nations pipeline report goes too far

United Nations special rapporteur James Anaya crossed a line recently between promoting the cause of Aboriginals in this country and unhelpfully interfering in Canadian politics.

Anaya, the rapporteur on the rights of indigenous people, a law professor at the University of Arizona specializing in human rights, is one of 37 unpaid UN rapporteurs who regularly examine and publicly report on human rights problems around the world.

With so many civil wars, terror activities and natural disasters rampant around the globe, it is hard to believe human rights conditions in highly developed, democratic countries would be a priority for the United Nations. Canada already is so aware of the Aboriginals’ plight, and the courts so attentive to their aspirations.

This country is taking measures to address past wrongs, with financial redress and a truth-and-reconciliation process. The federal government is advancing legislation aimed at improving on-reserve governance and education for Aboriginal youth. It also is taking measures to improve water quality on reserves.

Cameco delays Millenium Mine – by Jason Warick (Regina Leader-Post – May 20, 2014)

May 21, 2014

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

Cameco Corp.’s decision to delay construction of its Millennium uranium mine is one more reminder of Saskatchewan’s vulnerability to the whims of commodities markets, experts say.

However, the province’s economy should be strong enough to weather the recent troubles in the uranium and potash industries, they add. Robust oil prices, a record grain harvest and other factors provide reasons for optimism. “Saskatchewan has got everything the world wants,” said Colin Boyd, professor of management in the University of Saskatchewan’s Edwards School of Business.

Boyd said reliance on any single commodity “can be a roller-coaster ride,” but Saskatchewan is diversifying. “I think we’ll be absolutely fine,” he said.

Fellow Edwards School professor Brooke Dobni said there may not be record economic growth every year, but the long-term outlook is good. “We’re not at the peak, and there are so many variables we don’t control, but we’re still doing OK, Dobni, the school’s chair for Saskatchewan enterprise, said.

Cameco’s Millennium uranium mine project is 36 kilometres from the company’s Key Lake operation in the Athabasca Basin. Cameco owns 69.9 per cent of the project and serves as the operator, with Japan’s JCU Exploration Co. owning the remainder.

Anti-pipeline groups want to slay golden goose – by Lorne Gunter (Toronto Sun – May 20, 2014)

May 21, 2014

http://www.torontosun.com/home

On Tuesday, a coalition of First Nations, environmentalists and lefty think-tanks vowed to fight the $12 billion Energy East pipeline to take oilsands oil from Alberta to refineries and ports in eastern Canada.

Although not formally aligned yet (they have held a closed-door strategy meeting in Winnipeg, but have not forged a single front organization), the groups pledged to oppose Energy East with as much ferocity as opponents of the Keystone XL project have used in the United States.

Many of these same groups and others also vehemently oppose Northern Gateway and Kinder Morgan in B.C. Not all, but most of them are, indeed, opposed to oilsands development altogether.

But just so I’m clear, here, you groups all still want even more billions from Ottawa and the provinces for development on reserves and in other First Nations communities, right?

Just where do you imagine that money is going to come from? If you block the largest economic development projects in the country, from whom will the federal and provincial governments collect the taxes to pay for the social spending you dream of?