Canadian Media Resource Articles – Page 656

The British may be coming: As U.S. shuns Canadian energy, UK seeks stronger ties – by Claudia Cattaneo (National Post – May 9, 2014)

May 9, 2014

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

With Canada’s long-standing energy partnership with the United States at a low point over disagreements on pipelines, climate change and oil sands development, the British are as eager as ever to step in and strengthen ties.

Michael Fallon, energy minister in David Cameron’s conservative government, was in Calgary Thursday to promote U.K./Canada energy cooperation — including learning from Canada’s “leadership” in carbon capture and storage, promoting more mutual investment and encouraging Canadian oil and gas exports to boost British and European energy security.

“Canada is a very important and a very welcome investor in our energy mix,” Mr. Fallon said in an interview during a day long-visit that included meetings with British companies active in Canada such as Royal Dutch Shell PLC and Centrica PLC, and Canadian companies active in the U.K. including Talisman Energy Inc. and Canadian Natural Resources Ltd.

“There is huge potential [for Canadian companies] in the development of shale, in Canada there is a lot of gas that could contribute to a more stable international market in gas and Canada is at the top of everybody’s list of being a reliable supplier,” he said.

China decries Canada’s ‘negative’ investment rules – by Nathan Vanderklippe (Globe and Mail – May 8, 2014)

May 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.

HONG KONG — China’s incoming ambassador, saying Beijing still does not fully trust Canada, called on the federal government to roll back “negative” new foreign investment rules and smooth the way for increased trade with China.

Luo Zhaohui, a veteran diplomat with a love of basketball, will board a plane Thursday for Ottawa, where he will take charge of an international relationship that is as vital to Canada’s economic future as it is fraught with problems.

China has become banker to Canada’s oil and gas industry and buyer of its minerals and lumber, a country whose vast market and deep pockets have stoked lust among Canadian political and business leaders alike. Annual trade has reached nearly $60-billion (U.S.), although that’s “not enough” in the opinion of Mr. Luo, who held out the promise of a China open to buying more of what Canada has to sell.

But mutual suspicion has clouded the relationship even as ties between the two counties have deepened, with Canadian anxiety over the clout of the rising superpower and China bridling at trade and investment restrictions.

Time to counter human rights abuses by Canada’s mining companies – by Alex Neve (Toronto Star – May 8, 2014)

May 8, 2014

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.

Alex Neve is Secretary General of Amnesty International Canada.

Major change is required to ensure accountability for companies that cause harm and effective remedy for those who are harmed, especially in the mining industry.

The stories mount, stories of human rights abuse and injustice: “mining activists shot,” “mine operations suspended,” “company accused of water pollution.” Far too often a Canadian mining company is behind the story. Canadian mining companies lead the mining world; but none aspire to lead the world in mining-related human rights abuses.

There is a common theme to all the cases: lack of an effective remedy open to the individuals and communities that suffer human rights harms associated with Canadian mining operations. Victims have nowhere to turn for justice. Not in their home country, nor in Canada.

Over the last two decades, as Canadian companies dig in evermore far-flung corners of the world for gold and other precious metals, disturbing accusations of human rights abuses follow.

Centerra Gold continues to navigate minefield of Kyrgyzstan politics – by Peter Koven (National Post – May 8, 2014)

May 8, 2014

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

Centerra Gold Inc. is so used to getting threatened by its host government in Kyrgyzstan that it scarcely blinks anymore.

Over the past couple of weeks, Centerra watched as the Kyrgyz parliament passed a law prohibiting activities (like gold mining) that affect glaciers, and as a government agency suggested the company’s flagship Kumtor mine could be suspended. On top of that, its 2014 mine plan has still not been approved by the state.

If these events happened in another country, mining investors would be running for the hills. But they are so commonplace in Kyrgyzstan that Centerra shares barely budged, remaining around the $5.50 mark so far this week. It is simply the price Centerra has to pay to operate in a country that the Fraser Institute recently deemed the worst mining jurisdiction on earth.

Yet through all the noise, the one constant is that the Kumtor mine continues to run and churn out cash. It has done so for 16 years, with only one brief interruption last year that had anything to do with politics.

“Even though the mine comes under a lot of rhetoric and is used as a political football, they do allow it to continue to operate because it’s such a key part of the country,” Centerra chief executive Ian Atkinson said in an interview.

Showdown looms in South African platinum strike – by Geoffrey York (Globe and Mail – May 7, 2014)

May 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.

JOHANNESBURG — Platinum mining companies are heading into a final showdown with 70,000 striking workers this week, trying to break a stubborn union that has spearheaded the longest and costliest strike in the history of South African mining.

The outcome is likely to trigger a major overhaul of the country’s platinum sector, leading to mine closings, greater mechanization and thousands of job cuts. It could indirectly benefit several Canadian companies that plan to operate mechanized platinum mines in South Africa.

The three major producers, accounting for about 40 per cent of the world’s platinum production, are seeking to bypass the union by taking their wage offer directly to employees in cellphone text messages, public meetings and radio commercials.

One of the three companies, Lonmin PLC , has set a Thursday deadline for phone-message acceptance from its employees. It is hoping to have its employees back at work by the middle of next week. The other two companies are making similar efforts.

The strike is in its 15th week, inflicting heavy damage on the mining firms and the workers, with no sign of a revival of the talks. The three major producers have lost an estimated $1.6-billion (U.S.) in revenues so far, while the employees have lost about $700-million in earnings.

Sherritt International Corp. wins solid victory in proxy fight, but activist George Armoyan vows to keep pushing for change – by Peter Koven (National Post – May 7, 2014)

May 7, 2014

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

TORONTO — Sherritt International Corp. won a convincing victory in its proxy battle with George Armoyan on Tuesday, but the activist investor insists he is not selling his shares and going away.

Mr. Armoyan earned a round of applause at Sherritt’s annual meeting in Toronto after stating that the company has good potential and is making progress in realizing shareholder value. It was a subdued speech by his standards that cast aside the bad blood from the proxy fight.

“We offered ideas; some have been accepted, some not. But we intend to remain active and involved shareholders,” he said.

Mr. Armoyan, the chief executive of Halifax-based Clarke Inc., launched his campaign against Sherritt last December, claiming the company’s directors were enriching themselves while failing to create value for shareholders. He wanted to replace three existing directors with himself and two handpicked nominees.

Ultimately, his efforts fell well short. All of Sherritt’s nominees were elected at the annual meeting, with each one getting more than 146 million shares voted in their favour.

Europe softens stance on Canada’s oil sands as relations with Russia sour – by Yadullah Hussain (National Post – May 7, 2014)

May 7, 2014

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

As Europe reels from Moscow’s belligerence and utter dependence on its oil and gas supplies, the Harper government is positioning itself as a reliable partner ready to offer energy security to the continent.

In his first international assignment, Canada’s Natural Resources Minister Greg Rickford was out in full force advertising the country’s formidable crude oil and natural gas resources to energy ministers of Germany, France, Italy, Japan, U.K. and U.S. in Rome on Tuesday.

“In a time where many countries are faced with the dual challenges of increasing demands for energy and an unstable energy supply, Canada is a reliable, secure and responsible source of energy,” Mr. Rickford told reporters after a special meeting with the Group of Seven ministers.

As the only major oil and gas exporter in the group, Canada is leveraging its oil and gas reserves to position itself as a reliable supplier of energy and an alternative source to Vladimir Putin’s Russia.

“Our government is committed to expanding markets for our energy products to Asia and Europe, creating jobs and prosperity for Canadians.

Matt Gurney: Wynne does her best to out gas plants McGuinty – by Matt Gurney (National Post – May 7, 2014)

May 7, 2014

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

There’s an election underway in Ontario, with the Liberals, led by Kathleen Wynne, trying to hold onto power against the Tim Hudak-led Progressive Conservatives and Andrea Horwath’s New Democrats.

Ms. Wynne is in a tricky position. Though long a senior Liberal, she only took over as leader of the party — and by extension, Ontario premier — 15 months ago, after the former premier, Dalton McGuinty, resigned. Mr. McGuinty took his ball and went home in the face of mounting evidence that the Liberals had blown a billion dollars of borrowed money to cancel two controversial gas-fired power plants, long championed by his government, in order to shore up his party’s prospects in several hotly contested ridings.

It worked. The Liberals held the seats. But the crass opportunism of the move, combined with the eye-popping price tag and efforts to whitewash the entire affair, destroyed Mr. McGuinty’s credibility. So he left. That’s where Ms. Wynne came in, and she’s been been trying to disassociate herself from Mr. McGuinty and the gas plants ever since.

In theory, at any rate. She apologized for the scandal. She insists she’s running as her own woman, on her record, not that of Mr. McGuinty — though her government has seemed a bit unclear on that, claiming the victories while denying the failures.

Yukon Party won’t cancel mineral claims in the Peel – by CBC News North (May 06, 2014)

May 7, 2014

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

Reversing Peel claims ‘would send shockwaves through the investment community:’ Mines Minister

The Yukon government says it won’t be cancelling mineral claims in protected areas of the Peel Watershed. Scott Kent, Minister of Energy, Mines and Resources, says cancelling claims would create a series of lawsuits and demands.

“It’s something that we think would send shockwaves through the investment community if we were to expropriate or compensate.” The debate took place yesterday in the legislature, as protesters gathered to protest the Peel Watershed land use plan.

Many were disappointed when the Yukon government released its land use plan for the area that feeds the Peel River in January. The government’s plan protects 29 per cent of the region from development, rather than the 80 per cent called for by the Peel River planning commission.

It also says existing mineral claims in protected areas are still valid and can be developed, such as those held by Tarsis Resources in the southeast part of the region. Yesterday, the opposition said the Yukon government could cancel or expropriate existing claims in the Peel without paying companies.

Pierre Lebel powers Red Chris mine toward production – by James Kwantes (Vancouver Sun – May 6, 2014)

May 7, 2014

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

‘Finding a way’ to build B.C.’s next mine included a foray into power line construction for Imperial Metals

VANCOUVER — Imperial Metals chairman Pierre Lebel is on the cusp of opening a copper-gold mine, Red Chris, that the company won in a bidding war, financed and developed from an exploration project.

Once it goes into full production in the fall, B.C.’s next mine will employ about 270 people in an area with high unemployment and produce 88 million pounds of copper and 52,700 ounces of gold annually. Not bad for an “accidental” mining executive.

Lebel grew up in the mining hotbed of Sudbury, Ont., but his passion was law. After earning his MBA and a law degree, however, a call from a friend led to Calgary and a job with a small uranium prospect generator called E & B Explorations. That was in 1978.

“Before you know it, you’re doing less and less law and more and more business, and learning as you go along,” Lebel said during a recent interview in Imperial’s Vancouver offices.

E & B became Imperial Metals, and the young lawyer’s temporary gig led to a mine-building career at the helm of a public company that — once Red Chris is up and running — will employ about 900 B.C. residents at three mines.

Poison pills a little more potent after B.C. ruling – by Boyd Erman (Globe and Mail – May 6, 2014)

May 6, 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.

Making a hostile bid for a Canadian company just got a little bit harder.

Canada’s securities regulators are steadily giving corporate boards more room to breathe in hostile takeover situations, an evolution that will please critics who have long said that it’s too easy to put Canada’s companies in play with unsolicited bids. And it’s happening in the absence of national reform on the issue, which has stalled because of a standoff between Quebec and the rest of Canada on the amount of power that companies should have to shun hostile bids.

Unlike the United States, where boards of directors can simply say no thank you to a hostile bid, in Canada a bid has more often than not led to a sale just a few months later. That’s because the anti-takeover defences erected in the form of shareholder rights plans (better known as poison pills) have historically been viewed very skeptically by regulators. Pills can be complicated affairs, but the upshot is that they make it very difficult for a hostile bid to succeed so long as they are in place.

However, they aren’t in place very long. Provincial securities watchdogs have generally tossed out the defences six to nine weeks after a hostile bid is made. The mantra has been to let shareholders decide whether they want to sell.

Bipolar markets: Eric Coffin on the macro view for metals – by Eric Coffin (Mining Markets – May 2, 2014)

May 6, 2014

http://www.miningmarkets.ca/

Another period of sideways, with a few sharp turns along the way to keep traders on their toes. We basically stand where we were a month ago and we’re still waiting to see if we get a spring rally in resource stocks that lifts us above the March high for the Venture index. Admittedly, there isn’t a lot of “spring” left to work with and we all know how boring things can get as we exit May.

Like the last issue, I held this one for a few days hoping to see more news to report on and, like the last issue, not too much arrived. Things are warning up (weather wise). Summer exploration is beginning in the northern hemisphere so news should pick up. For the record, I did add a new company at the SD level and you can expect to see some new choices in these pages soon. I am waiting on technical data for a couple of stories I like. I need the data to cover them properly but I don’t expect it to change my basic opinion so odds are you see one of these in the next issue.

The editorial in this issue helps make the case for physical demand underpinning the gold market. I think a lot of the obvious sellers are out and the price has found a higher base than late 2013. There is always room for a Ukraine boost but I hope for both humanitarian and practical reasons people just buy the yellow stuff because they think it’s cheap.

For all the recent fear in the market after another flare up in the Ukraine its hard to complain about how the big indices are holding up. All are near their highs. That’s good but there are some strange cross-market correlations that make one wonder.

Sherritt poised to fend off dissident George Armoyan at annual meeting – by Peter Koven (National Post – May 6, 2014)

May 6, 2014

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

TORONTO – Sherritt International Corp. is poised to win its proxy fight against dissident shareholder George Armoyan, but the battle ensures the miner will be under pressure to deliver in the months ahead.

Sherritt is likely to receive enough votes for a victory at its annual meeting in Toronto on Tuesday, according to people close to the situation. Even Mr. Armoyan acknowledged he is in a tough fight. The chief executive of Clarke Inc. wants to replace three members of the board with himself and two handpicked nominees.

“It is what it is,” he said in an interview. “Life goes on. You give it your best shot and go on to the next thing.”

Mr. Armoyan is frustrated over some of Sherritt’s tactics, and thinks the company spent way too much money fighting him off. He is also very upset by the decision of Institutional Shareholder Services (ISS) to back Sherritt’s incumbent board, as he believes the proxy advisory firm did not give his arguments a close enough look.

“They never spoke to me. It looks like they had their mind made up,” he said. There is always a chance of a last-minute settlement before or during the annual meeting, but both Sherritt and Mr. Armoyan said that such a deal is unlikely. There were numerous attempts at a settlement early in the dispute, but the mud-slinging from both sides has gotten worse since then.

Conflict Will Be The Norm If Mining Company Ignores Our Concerns – by Annita McPhee (Huffington Post – May 5, 2014)

May 6, 2014

http://www.huffingtonpost.ca/

Annita McPhee is the President of the Tahltan Central Council.

In a pristine corner of northwestern B.C. called the Klappan, a drama is unfolding that might seriously compromise the relationship between First Nations and the booming natural resource sector in B.C.

The 4,000 square-kilometre region southeast of Iskut is called the Sacred Headwaters by Tahltan people because it is the source of three wild salmon rivers — the Skeena, Nass and Stikine — and because it has been full of life for thousands of years. Tahltan people consider the Klappan to be Earth’s birthplace and it’s a well-travelled, traditional hunting ground that carries significant cultural, spiritual and social values for the Tahltan Nation.

Our territory is also rich in mineral and energy resources and that has led to both success stories and conflict as the province and private companies have sought to exploit the natural resources of our territory.

Our people support responsible development that protects the environment and respects Tahltan rights and traditional uses. Companies that understand this, and that commit to working with us in deciding how to use the resources of our territory, have thrived.

First Nations mining and mineral strategies critical for engagement – by Simon Rees (MiningWeekly.com – May 5, 2014)

May 6, 2014

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

TORONTO (miningweekly.com) – Engagement and consultation between mining and exploration companies and the First Nations is one of the most pressing issues for the Canadian sector today.

Get it right and a project will move forward more smoothly and with the additional benefit of robust support from aboriginal communities keen to assist in the success; get it wrong and a legal quagmire will almost certainly lay ahead, with project development hindered or even halted. The damage done to the corporate image can also be both lasting and deep.

KEEP TALKING

Some aboriginal communities inherently distrust the industry, pointing to some of the sector’s previous transgressions, while others may simply want to keep their territory free from any development whatsoever.

“Many aboriginal peoples like the remoteness of their communities,” Manitoba East Side Road Authority aboriginal economic development manager Norma Spence told Mining Weekly Online. “A lot of communities have had such bad experiences with the industry in the past that it’s hard for them to believe that nothing bad will happen to their lands.”