Canadian Media Resource Articles – Page 677

Mining in an ENGO hole – by Peter Foster (National Post – March 5, 2014)

March 6, 2014

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

“We live in a world with thuggish NGOs breathing down our necks”

If Stephen Harper went to the mammoth Prospectors and Developers Association of Canada (PDAC) Convention in Toronto this week to provide a boost to the industry, he chose a strange way of doing it.

Why would the PM bash Taseko Mines’ New Prosperity project in B.C. by suggesting that the environmental report that turned it down was “damning?” Presumably he did so to counter the constant allegation that his government is “soft” on the environment. However, his move backfired since it drew a sharp response from Taseko (as reported by the Post’s Peter Koven).

Taseko’s forthright vice president of corporate affairs, Brian Battison, questioned both Mr. Harper’s understanding of the project’s environmental threats and the status of related aboriginal land claims. He pointed our that those claims had been deemed not to meet the test of legal title. The case is now before the Supreme Court.

One doubts, meanwhile, that talking about turning down Taseko won the feds any brownie points when it comes to the real issue: the extraordinary success of radical environmental groups in holding the extractive industries in Canada —

Miners misplace hopes for cash in private firms – by Rachelle Younglai (Globe and Mail – March 5, 2014)

March 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.

Contrary to popular belief, private equity is not going to be the saviour for mining companies desperate for cash to fund their exploration and projects.

There are only a few private equity firms that have a real interest in the mining space and they are taking their time looking for new investments.

“The industry has developed a level of exuberance around private equity which isn’t well researched and certainly overblown,” said Michael Scherb, general partner with London-based Appian Capital Advisory LLP, which has raised $375-million (U.S.) to invest in mining assets.

“The real capital dedicated to the space is really only in a handful of dedicated mining specialist investment houses,” said Mr. Scherb on the sidelines of the Prospectors and Developers Association of Canada conference in Toronto. He is looking to deploy his fund’s capital over the next few years and recently made an investment in a Toronto-listed junior miner.

PDAC: The age of paternalism is gone, Bob Rae says (Northern Miner – March 5, 2014)

March 6, 2014

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

“Good progress” is being made at the bargaining table on a framework agreement between the Matawa Tribal Council and the provincial government on advancing the Ring of Fire, says former Ontario Premier Bob Rae, who represents the Council in the negotiations. But he warns that much work needs to be done and says he “refuses to give in to the sentiment that says this has got to be done in two weeks, or two months, or four months.”

“This has got to be done right and it has to be done in a way that shows real understanding and respect for the people whose lives are going to be more impacted than the lives of anyone in this room,” he said during a panel discussion Tuesday at the PDAC.

Rae argues that the First Nations have to be consulted in a way that is different from consultations that have taken place in the past. Ontario is a province that has relied extensively on mining for development for over 150 years, he points out, but “this development has taken place without particularly benefiting First Nations communities.”

When people talk about what has to be done so that this project or this part of Ontario is able to benefit from growth and prosperity, Rae says, “it’s really quite simple.”

Dash for salt: Cities scramble to find this winter’s hottest commodity – by Karen Howlett (Globe and Mail – March 5, 2014)

March 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.

Niagara Falls is hoarding its stockpile. Hamilton is mixing its dwindling supply with sand. New Jersey is importing the scarce commodity known as white gold all the way from Chile. And sales are booming on the black market.

Road salt shortages are a continent-wide problem this winter. Long bouts of frigid temperatures and an abundance of snow have depleted reserves in parts of Ontario and the Northeastern United States faster than they can be replenished. Windsor Salt, one of three major suppliers in Ontario, is facing its highest demand in two decades. The company has shut its doors to new customers, and its three mines are working overtime to meet commitments on existing municipal contracts.

“You can’t just push the button and produce more,” said Luc Savoie, vice-president of sales and marketing.

The shortage of a crucial ingredient used to break up ice on city streets has forced many regions to ration supplies, make panic-buying calls to neighbouring communities with salt to spare and revise road maintenance budgets. The coveted mineral has even become a hot item on the black market in what amounts to war-on-winter profiteering.

PDAC 2014: In Ring of Fire, Cliffs remains elephant in the room – by Peter Koven (National Post – March 4, 2014)

March 5, 2014

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

TORONTO – In Northern Ontario’s Ring of Fire, Cliffs Natural Resources Inc. remains the elephant in the room that no one wants to talk about.

A Tuesday lunch panel at the Prospectors and Developers Association of Canada (PDAC) convention focused on the giant undeveloped deposit in the James Bay Lowlands and what has to be done to move it forward.

There were some encouraging comments in that regard from former premier Bob Rae, who is representing the Matawa Tribal Council in its negotiations with the province over Ring of Fire development. He said the two sides are “making good progress at the bargaining table,” and he is optimistic that they will reach a framework agreement soon. That is good news for all involved.

But the panel largely ignored the broader questions investors have about the Ring of Fire: Does it make economic sense for a major mining company to invest the capital required for this highly remote project? And do any of them want to?

Those concerns came to the forefront last November, when Cliffs suspended all work on its Chromite project in the Ring. Some analysts said this was a smart move given the high risk and potentially low returns associated with the project.

More First Nations consultation and accommodation required – Rae – by Simon Rees (MiningWeekly.com – March 5, 2014)

March 5, 2014

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

TORONTO (miningweekly.com) – Former Premier of Ontario and chief negotiator for the Matawa First Nations Bob Rae told delegates at the Prospectors and Developers Association of Canada conference that greater efforts are needed to embed the practice of consultation and accommodation between the mining sector and Canada’s First Nations communities.

Equally, the First Nations must be able to provide answers when a company approaches to consult. “[The] First Nations have to ask themselves: ‘what shall we say when we‘re asked our opinion? What do we say when we’re consulted?’” Rae said on Tuesday. “It’s not easy, but it is essential.”

Rae acknowledged that the duty to consult and engage still has many imprecisions, often because the foundations of best practice continue to be solidified, frequently through the court system. “People say: ‘what does it mean that there’s a duty to accommodate and consult? How why does it [work]?’ … As frustrating as that is, these issues are still going to be litigated. It’s still a contested area of the law,” he said.

Fitting into this, both federal and provincial governments should work towards strengthening and streamlining the framework that facilitates accommodation.

Harper reassures miners after rejection of Taseko open-pit mine – by Kim Mackrael and Rachelle Younglai (Globe and Mail – March 4, 2014)

March 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.

TORONTO — Prime Minister Stephen Harper sought to reassure the mining industry that his government was on its side after spurning the development of a high-profile gold and copper project in British Columbia.

In a surprise visit to a mining conference in Toronto, Mr. Harper defended his Conservative government’s rejection of Taseko Mines Ltd.’s New Prosperity project in the region of Cariboo-Chilcotin but said that did not mean the door was closed forever.

“The environmental assessment was extremely negative,” Mr. Harper told the Prospectors and Developers Association of Canada conference.

But, he said, “We don’t like to see communities and regions deprived of what are obviously … significant opportunities for people in the region. “They are always in a position to examine the environmental assessment and to propose a new project based on their attempts to address some of the issues.”

Ring of regulations – by Mark Zastre (National Post – March 4, 2014)

March 4, 2014

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

Mark Zastre is Global Mining Leader, Grant Thornton International.

Mining ventures need infrastructure to proceed yet governments stymie their development through regulations and impediments

Canada’s long-awaited mining powerhouse, the Ring of Fire, promised major economic development and employment opportunities for northern Ontario. Communities rushed to ready themselves for the coming boom in jobs and lobbied hard for the placement of the sought-after chromite smelters and associated infrastructure.

But despite its promises and potential, the Ring of Fire has fallen victim to delays and setbacks, sparking an industry-wide debate of who is to blame. The mining industry has grown increasingly uncertain about investing in Canada and has identified the provincial and federal governments, Aboriginal communities, commodity prices, and the environmental lobby as major contributing factors to this uncertainty.

Beyond the speculation of the causes of the Ring of Fire delays however, new data collected in the Grant Thornton International 2014 Global Mining Survey paints a larger picture of the infrastructure challenges faced by this industry and demonstrates that delays are not unique to the Ring of Fire, but rather threaten the sustainability of the broader Canadian mining industry.

Harper pledges support for mining industry – by Lisa Wright (Toronto Star – March 4, 2014)

March 4, 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.

The annual convention of the Prospectors and Developers Association of Canada kicks off Monday with Harper making surprise appearance. Prime Minister Stephen Harper paid a surprise visit to a major gathering of miners in Toronto Monday, pledging his ongoing support to the struggling mining industry.

Harper is the first sitting prime minister to attend the 82-year-old conference, a major networking event hosting nearly 30,000 people in the global mining industry through Wednesday at the Metro Toronto Convention Centre.

About 60 journalists from around the world were invited to the question-and-answer format session between Harper and incoming PDAC president Rod Thomas before 400 convention delegates.

Neither the audience nor media – whose bags and equipment were checked thoroughly before entry to the conference hall by a sniffer dog — were allowed to ask questions.

Feds promote mining prospects at annual PDAC event (CBC News – March 3, 2014)

March 4, 2014

http://www.cbc.ca/sudbury/

Slump in prices has made for a tough climate for those working in the mineral exploration industry

As the world’s mining community meets for the annual Prospectors and Developers Association conference, the federal government is also talking about its role in promoting development.

Natural Resources Minister Joe Oliver met with junior mining companies at the conference on Monday and he released the latest information government researchers have gathered on remaining mineral deposits.

Oliver said the data is particularly important at a time when the mining industry is going through a downturn.

“We all know that exploration for these type of deposits, especially deeper ones, impales significant financial risk,” he said. “And yet the discovery of these deposits can ensure the industry’s longer term prosperity.”

Oliver said the goal is to help companies better understand where new mineral deposits are — as well as their potential size — so they are more willing to invest.

Update 1 – Vale back at work on Ontario nickel project – by Allison Martell and Euan Rocha (Reuters U.S. – February 3, 2014)

March 4, 2014

http://www.reuters.com/

(Reuters) – Vale SA’s Canadian unit has resumed work on its Copper Cliff Deep nickel project in the Sudbury basin and expects to complete a feasibility study by the end of the year, a company executive said on Monday.

The project is expected to cost somewhere in the range of a billion dollars to build and could be one of the unit’s lower-cost operations, said Kelly Strong, Vale’s vice president of Ontario and UK operations.

If it goes ahead, the revised project, now dubbed Copper Cliff Mine, would be another boost for the Sudbury basin in northern Ontario, where Vale recently opened Totten, its first new mine in more than 40 years. “It’s going to look a little bit different than the original project – it’s going to be three phases,” said Strong.

The project would merge and expand what are now two separate mines. Its earlier incarnation was put on hold in the wake of the 2008 financial crisis. In 2010, Vale Canada said it was re-evaluating the project, though work did not proceed.

The first of the three phases could start producing within the next two to three years, Strong told Reuters. A final go-ahead will depend on the project securing a green light from Vale’s board in Brazil.

Vancouver-based Goldcorp wins reprieve from Osisko Mining on takeover bid (Canadian Press – March 3, 2014)

March 4, 2014

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

MONTREAL – Osisko Mining Corp. said Monday it has settled a lawsuit it filed against Vancouver-based Goldcorp Inc. as part of the Montreal-based company’s fight against a hostile takeover by the senior gold miner.

Under the settlement, the offer from Goldcorp has been extended to April 15, from March 10, while Osisko continues its search for an alternative bid. Osisko has also agreed to waive its shareholder rights plan by April 14 and provide Goldcorp with access to due diligence materials starting April 1, or earlier if Osisko signs a deal with another bidder.

“Given the robustness of our process to pursue value maximizing alternatives, the extension to April 15, 2014 provides a meaningful extension to the anticipated time to complete this work,” Osisko president and chief executive Sean Roosen.

“The April 15, 2014 date also provides certainty of timing for those in the process to complete their work and propose executable arrangements to unlock value for all stakeholders.”

Tallying Quebec’s self-inflicted mining wounds – by David Parkinson (Globe and Mail – March 4, 2014)

March 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.

A few years ago, Quebec was the belle of the ball for prospective mining investors. Now, it seems, its Parti Quebecois government’s policy positions are well on their way to making the province a wallflower.

A new global survey of mining companies, from Canadian economic think tank the Fraser Institute, shows that Canada in general remains highly desirable for mining investment. Seven Canadian jurisdictions rank in the top-16, out of 112 global jurisdictions, in terms of overall mining investment attractiveness, a measure that combines the quality of the mineral potential and the receptiveness of government policy.

(Newfoundland and Labrador, ranked 3rd in the world, is Canada’s highest-ranked jurisdiction.) Also, five provinces rank in the top-20 in a list of jurisdictions with the most investment-friendly government policies (led by Alberta, at Number 3).

In both rankings, Quebec isn’t among them – underlining the province’s rapid fall from grace as a mining-investment destination.

Trade pacts to spur mining investment – by Barrie McKenna (Globe and Mail – March 3, 2014)

March 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.

OTTAWA — Canada is signing an investment protection agreement with Cameroon and launching negotiations with Kenya as it pushes to secure better rights for Canadian mining companies in Africa.

Trade Minister Ed Fast is slated to make the announcements at this week’s Prospectors and Developers Association of Canada convention in Toronto, an annual gathering of the global mining industry.

Ottawa has 26 investment treaties in force around the world. Last year, it signed 10 new ones, including seven in Africa. But even as Mr. Fast strikes new deals, the most important Foreign Investment Promotion and Protection (FIPA) agreement that Canada has reached to date – with China – sits on a shelf in Ottawa, signed, but not ratified.

Ron MacIntosh, a former Canadian diplomat and now a research fellow at the University of Alberta’s China Institute, said Ottawa is sensitive to critics who worry the agreement would give China the right to sue the government “any time it’s not happy about something,” particularly in the wake of China-based CNOOC Ltd.’s takeover of Calgary-based oil producer Nexen Inc. in 2012.

Mining sector digs in for growth – by Derek Sankey (Vancouver Province – March 3, 2014)

March 3, 2014

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

Oilsands forecast to remain strong

CALGARY HERALD – Canada’s mining sector is on the cusp of growth in new jobs fuelled by several projects set to move ahead after struggling through broadly weaker commodity prices and a recent “down cycle,” say industry officials.

Oilsands mining has remained strong – and forecast to remain so – while base and precious metals rebound and new mines are coming on stream, following some workforce reductions in the last few years.

“There are a number of new mines currently in the pipeline that have a tremendous opportunity to gain some of those jobs back,” says Ryan Montpellier, executive director of the Mining Industry Human Resources Council (MiHR). “We’ve seen new employment in our north, in coal (and) there is some potential for new diamond mines,” he adds.

“There is a lot of potential in the industry today.” Year-over-year job growth increased by 11,000 jobs from 2011 to 2012, while the total number of mining jobs, including drilling and exploration, was 418,000 in 2012, according to Natural Resources Canada data.