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Canadian Media Resource Articles

Lack of political leadership, bureaucratic infighting freeze Arctic plans: Report – by Lee Berthiaume (Windsor Star – July 29, 2013)

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

OTTAWA — The Conservative government’s plans for the Arctic are suffering because of bureaucratic infighting and a lack political leadership, a group of Defence Department advisers has concluded.

They also urged the Canadian military to reach out to both mining companies and Inuit communities as it looks to establish a more tangible presence in the North, saying such relationships can be financially beneficial.

Prime Minister Stephen Harper first announced in 2007 that his government would focus on ensuring sovereignty over the country’s vast Arctic territories, developing its abundant natural resource deposits, and improving the lives of those living there.

But the Defence Science Advisory Board wrote in an internal report published last year and obtained by Postmedia News that “frustration is often the predominant emotion” within federal departments when it comes to the Arctic. The advisory board is made up of academics, analysts and industry representatives who provide the department with advice.

The Department of Aboriginal Affairs and Northern Development is supposed to be the lead department on the Arctic, with other government departments and agencies supporting it in a variety of roles and areas.

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India eyes B.C.’s coal reserves as it ramps up steel production – by Gordon Hoekstra (Vancouver Sun – July 28, 2013)

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

Delegation meets with B.C.’s premier, new international trade minister

India wants to buy a bigger chunk of B.C.’s vast metallurgical coal reserves to feed its growing steel industry, a potential boost to the province’s No. 1 export business, worth $5.7 billion a year.

A high-level delegation led by India’s Steel Minister Beni Prasad Verma was in B.C. this month and met with Premier Christy Clark, International Trade Minister Teresa Wat and B.C. coal industry representatives.

The Indian government forecasts that by 2017 the country will need twice as much metallurgical coal. The additional 47 million tonnes of metallurgical coal India forecasts it’ll need every year is more than B.C.’s entire annual production of 24 million tonnes.

However, British Columbia sits on vast coal reserves of an estimated 13 billion tonnes with several proposed metallurgical coal mines in the environmental assessment process. Karina Brino, president of the Mining Association of B.C., said the province’s coal industry is paying close attention to the burgeoning Indian market.

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How rage over a Mexican mining tragedy has propelled a union leader’s book to the bestseller list – by Oakland Ross (Toronto Star – July 27, 2013)

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.

In Collapse of Dignity, Napoleon Gomez Urrutia reveals much about Mexico’s corrupt mining sector – but what about himself?

Will the real Napoleon Gomez Urrutia please stand up? About 66 years old and living in exile in Vancouver, the Mexican labour leader has trod many different paths during a long, eventful career, and now he has written a book about that journey.

Titled Collapse of Dignity: The Story of a Mining Tragedy and the Fight Against Greed and Corruption in Mexico, the densely written volume recently scaled its way into the Top 10 on The New York Times list of non-fiction bestsellers, an impressive achievement by any measure and all the more so in this case because a good deal of the book is at least somewhat fictitious.

It’s also pretty hard slogging for much of its 368-page length. Still, the good parts are engrossing, and they centre on a mining disaster – or, really, two mining disasters. One of these mishaps took place in northern Mexico, on Feb. 19, 2006, and it was an unmitigated catastrophe.

Sixty-five men lost their lives after a huge explosion hit the Pasta de Conchos coal mine in the early hours that day.

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‘Trains or pipelines,’ Doer warns U.S. over Keystone – by Shawn McCarthy (Globe and Mail – July 29, 2013)

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 telling the U.S administration it will see a sharp increase in cross-border crude-oil shipments by rail if President Barack Obama fails to approve the controversial Keystone XL pipeline.

In a telephone interview from Washington, Canadian Ambassador Gary Doer said oil companies are increasingly turning to trains – and even trucks – as the construction of pipelines has failed to keep up with the boom in North American crude production, and that trend will grow if the President turns down Keystone XL.

“His choice is to have it come down by a pipeline that he approves, or without his approval, it comes down on trains. That’s just the raw common sense of this thing, and we’ve been saying it for two years and we’ve been proven correct,” Mr. Doer said Sunday. “At the end of the day, it’s trains or pipelines.”

The ambassador made his comments to The Globe and Mail after Mr. Obama questioned the much-touted economic benefits of the $7.6-billion project in an interview published in the U.S. on the weekend. The President also suggested Canada could do more to reduce greenhouse-gas emissions to help win approval.

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Journey to the end of the MM&A Railway line – by Les Perreaux (Globe and Mail – July 27, 2013)

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.

There is a sign marking the start of the Montreal, Maine & Atlantic Railway line south of Montreal, but it’s hardly needed: Simply look for the piles of discarded track and cracked and rotting ties amid the ragweed, out past the point where the Canadian Pacific Railway ends in a well-groomed rail bed.

“I can’t tell you how many times we’ve had to call the city to get them to clean up their tracks,” says Amélie Gervais, the owner of Bistro La Trinquette in Saint-Jean-sur-Richelieu, Que. Her quaint restaurant, with its vast courtyard patio, overlooks the Chambly Canal at the start of the MM&A line.

Railroads still count distances in miles, and Saint-Jean-sur-Richelieu stands at what was once Mile 20 of the mighty Canadian Pacific Railway’s “short line” extension from Montreal to the Atlantic Ocean, which helped knit Canada from Pacific to Atlantic for 105 years.

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Revenge is a bad business plan, Newfoundland – by Konrad Yakabuski (Globe and Mail – July 27, 2013)

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 Crosbie never met a hyperbole he couldn’t top. But the former Tory cabinet minister, whose colourful metaphors kept the House of Commons entertained during his stints in the governments of Joe Clark and Brian Mulroney, was barely exaggerating when he recently called the 1969 Churchill Falls hydro contract between Quebec and Newfoundland “one of the greatest public policy disasters entered into by any province or government in the history of Canada.”

More than four decades later, the deal signed by the legendary (and first) Newfoundland premier Joey Smallwood remains the source of such bitterness on the Rock that it’s a miracle Ottawa hasn’t had to send troops to patrol the still-disputed Quebec-Labrador border. Hydro-Québec has the right to purchase all but a fraction of the 5,400 megawatts from the massive Churchill Falls project in Labrador for next to nothing until 2041.

In 1969, the deal didn’t seem so lopsided. Nuclear power was all the rage and many analysts predicted that Quebec, which had no need for power it could only transport by building hundreds of kilometres of never-attempted transmission lines, would end up losing its shirt.

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Biggest diamond ever found and processed in Canada unearthed near Attawapiskat – by Alex Ballingall (Toronto Star – July 26, 2013)

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 35-carat sparkler will, after polishing, go on a world tour to promote Ontario diamonds.

It came from the earth, a crystallized clump of carbon blasted from the rocky soil of northern Ontario by a multinational mining company. Now that it’s in the hands of a leading Canadian diamond maker, the gem from the open pit mine near Attawapiskat is causing a stir. At 35 carats, it’s the biggest diamond ever pulled from Canadian soil that will also be cut and polished in the country.

“That’s what makes this unique,” said Tom Ormsby, director of external and corporate affairs for De Beers Canada, which operates the Victor Diamond Mine in northern Ontario, 90 km west of James Bay. “It will be valued once it’s done being cut and polished,” said Ormsby, who declined to say how much Vancouver-based diamond cutter Crossworks Manufacturing paid to process the precious gem.

The Canadian company, which has a contract to buy as much as 10 per cent of the annual diamond production from the De Beers’ Victor mine, started working on the diamond this week, said Ormsby.

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Gold earnings season as noisy as expected so far – by Peter Koven (National Post – July 26, 2013)

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

The second quarter gold earnings were expected to be noisy, and they have not disappointed so far. Writedowns, plummeting profits and a vast range of realized prices have been key themes in the reports. Most importantly, the miners are unveiling the cost and capital spending reductions they merely hinted at for most of the year. They are a crucial step to preserve balance sheet strength amid a bear market for gold.

On Thursday, Goldcorp Inc. announced it is slashing spending by US$200-million in 2013, and reiterated mine closures are a possibility if gold sinks below US$1,200 an ounce for an extended period. It also cut exploration and general and administrative expenses. Rival Agnico Eagle Mines Ltd. plans to cut more than US$200-million from next year’s budget.

The moves come just as credit rating agency Moody’s warned the gold producers “must take action” to protect their ratings and minimize earnings deterioration. Miners in virtually every commodity are trying to slash costs and spending right now, but there is a greater urgency in gold because of the rapid decline in price.

“They’re starting to show the first signs of capital discipline,” said Greg Taylor, a portfolio manager at Aurion Capital. While they have announced some aggressive measures to preserve cash, Veritas analyst Pawel Rajszel said that details have been limited so far, and that companies are largely pushing spending into the future rather than cutting it.

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De Beers, Canadian partner welcome panel’s report on NWT project (Canadian Press/Globe and Mail – July 23, 2013)

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.

YELLOWKNIFE — De Beers Canada and its partner Mountain Province Diamonds have received conditional approval from the Northwest Territory’s environmental review panel for their proposed Gahcho Kue open-pit diamond mining project.

The report from the Mackenzie Valley Environmental Impact Review Board says the three-mine project has the potential to harm aquatic life in Kennady Lake, as well as the Bathurst caribou herd – raising concerns about the impact on hunting.

But the board’s panel says the project has economic merit and the environmental impact can be reduced to an acceptable level with appropriate measures.

“De Beers made important commitments to minimize impacts from the Project on the environment including water quality, fish, caribou, other wildlife, air quality, and people,” said the board’s report to Aboriginal Affairs Minister Bernard Valcourt, who will make the final decision on whether the project proceeds and under what conditions.

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Noront offloads interest in Quebec project, focuses on Ring of Fire – by Henry Lazenby (MiningWeekly.com – June 28, 2013)

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

TORONTO (miningweekly.com) – Explorer Eagle Hill has consolidated its ownership of the prospective Windfall Lake project, in the Abitibi mining camp of northern Quebec, as project developer Noront Resources agreed to sell its 25% interest in the project for $5-million in cash and 25-million shares.

Noront said selling its interest, royalty interests and all other associated rights in the noncore asset provided it with an immediate cash infusion that would be put to use in developing the company’s flagship Eagle’s Nest project, in the chromite-rich Ring of Fire-region of northern Ontario, while the equity interest in Eagle Hill would allow it to participate in the upside potential of the Windfall Lake gold project.

Eagle Hill had also entered into a binding letter agreement with its strategic partner Southern Arc, under which Southern Arc Minerals had agreed to invest, together with Dundee Corporation, a total of $12-million in Eagle Hill to complete the Windfall Lake transaction and advance the project. Dundee had been a shareholder in Eagle Hill since February 2012, and currently owned an 18.8% interest in Eagle Hill.

Noront had previously agreed to sell its stake in the Windfall Lake project to gold producer Maudore Minerals. Completing of the transaction was still subject to obtaining shareholder approvals of Eagle Hill and Southern Arc to finance the agreement, for which Eagle Hill had already paid a non-refundable deposit of $615 000 and obtaining all required stock exchange and regulatory approvals.

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Canada aboriginal movement poses new threat to miners – by Julie Gordon and Allison Martell (Reuters Canada – March 17, 2013)

http://www.reuters.com/

(Reuters) – An aboriginal protest movement that’s often compared with Occupy Wall Street has the potential to disrupt mining projects across Canada, threatening to undermine the country’s coveted reputation for low-risk resource development.

Idle No More, a grass-roots movement with little centralized leadership, swept across Canada late last year with the help social media. Protesters blocked roads and rail lines, and staged big rallies in the country’s largest cities to press a sweeping human rights and economic development agenda.

Mining companies are also in the movement’s sights as aboriginal bands seek to renegotiate old agreements and seize more control over mining developments, whether they are on lands designated as native reserves or not.

“We’ve existed in this territory for millennia. We don’t have a land claim – it’s beyond that, actually. Our rights exist throughout all of our territories,” Arlen Dumas, chief of the Mathias Colomb Cree Nation, said about the northern Manitoba land where HudBay Minerals Inc, a Toronto-based mid-tier miner, is building its Lalor project.

Protesters cut off access to the gold-copper-zinc mine for several hours in early March, demanding talks with the company on an ownership stake in the C$794 million ($773.84 million) project, which has started limited production.

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Attawapiskat protestors hurting First Nations with lawless blockade of De Beers mine – by Jonathan Kay (National Post – February 22, 2013)

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

Canadian politicians and First Nations leaders all agree that economic development will be critical for raising the living standards of Canada’s native population. In many cases, this will mean bringing large, multinational corporations onto traditional native lands — because only these companies have the resources and expertise necessary to develop mines and other capital-extensive resource-extraction operations.

Unfortunately, as the example of Attawapiskat shows, the situation in and around many reserves actively repels that kind of investment.

Large, risk-averse companies won’t invest in areas of the country where the local population doesn’t respect Canadian laws — or even obey local band chiefs. Militant native protesters in these areas may think they’re striking a blow for economic empowerment. But all they’re really doing is reinforcing the stereotype that native tribes aren’t responsible business partners.

The De Beers Victor Mine, located in the lowlands 90 km west of the James Bay Cree community of Attawapiskat, cost $1-billion to create. Before a single diamond particle was extracted, the company negotiated impact benefit agreements (IBAs) with four local communities — including Attawapiskat.

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OPP inaction [on De Beers roadblock] results in ‘lawless’ north – by Brian Lilley (Toronto Sun – Feburary 22, 2013)


Above Commentary by Ezra Levant on February 21, 2013

http://www.torontosun.com/home

Lawyers for the Ontario Provincial Police will appear in court Friday to provide excuses for their inaction in enforcing a court order near the De Beers diamond mine in Northern Ontario.

There are no excuses, and in my view the police force, including OPP Commissioner Chris Lewis, should be cited for contempt. This all stems from a half-dozen protesters from the Attawapiskat First Nation who decided to blockade the winter road that services the mine.

The road is used for resupplying the work site with fuel and equipment too heavy to fly in.

“Due to the blockade, we have lost a total of 14 of the available 20 days to deliver the critical freight and fuel to resupply the mine,” De Beers said in a statement. “Should we not be able to complete the program as planned, we are concerned for the health and safety of our employees at site and the future of our mine.”

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Attawapiskat blockade may force De Beers to close mine – CBC News Thunder Bay (February 19, 2013)

http://www.cbc.ca/thunderbay/

Diamond miner says it is still waiting for action on court-ordered injunction

Despite what was called a “successful” meeting with protestors and a court injunction issued Friday, a road block on the winter road to the De Beers diamond mine near Attawapiskat continues. De Beers said if it continues, it may consider temporarily shutting down the operation.

Mine access has been blocked intermittently by a handful of protesters — members of the Attawapiskat band — at several points this month. Some of those people say they have concerns about the community not benefitting enough from the mine.

“These have not been … community initiatives,” De Beers spokesperson Tom Ormsby said. “They’ve been individually driven by individual agendas or individual concerns or claims.”

Because the winter road has a limited lifespan and it’s not possible to ship some supplies by air, De Beers might have to simply lock the front gate. “If we do not get our supplies in, all things are on the table, including a possible closure,” Ormsby added.

Ormsby said the company is still waiting on the court injunction to be acted upon to disband protesters and re-open the road to the Victor Mine.

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Attawapiskat blockaders served injunction: Report (Toronto Sun Video Report – February 17, 2013)

http://www.torontosun.com/home

A sheriff presented a group of people blocking the road to a diamond mine in Attawapiskat with a court injunction Sunday, the Aboriginal Peoples Television Network reported.

The station said the sheriff appears to have flown to the airport at the De Beers Victor mine and then drove 90 km to the blockade site. The ice road from the mine does not cross through reserve land, though the area is Attawapiskat’s claimed traditional territory.

Accompanied by two OPP officers, the sheriff read the injunction to a handful of blockaders before posting it, APTN said on its site.

Last Friday, De Beers diamond mine officials asked a Timmins judge for the injunction to end the illegal blockades that have prevented supplies from entering the company’s mine off and on for nearly two weeks.

Residents say the blockades are about the mine’s environmental impact on their community and about proper compensation.

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