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Manitoba Mining

Birchtree: Vale sheaths the Sword of Damocles – Editorial (Thompson Citizen – May 15, 2013)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000. editor@thompsoncitizen.net

It was one of the rare good news announcements to come from Vale, still Thompson’s most important employer, in the last 2½ years: Birchtree Mine, which opened in 1968, is “no longer scheduled to be placed on care and maintenance in August,” Lovro Paulic, vice-president for Vale’s Manitoba Operations, told employees in an internal Manitoba Operations update circulated May 6.

Still, it must be seen in perspective for what it is: good news by virtue of not being bad news. The status quo hasn’t changed and there is no net gain here. The good news is that for the time being at least there is no loss either. Still, it must be seen in perspective for what it is: good news by virtue of not being bad news. The status quo hasn’t changed and there is no net gain here. The good news is that for the time being at least there is no loss either. About 185 Vale employees work at Birchtree Mine, along with approximately 25 non-Vale contractors.

Kelly Strong, Vale’s vice-president of Ontario and UK operations since last November, told a packed luncheon last month in Sudbury that nickel prices of a little more than $7 a pound are comparable to $2.50 a pound a decade ago, and are creating huge challenges for Vale. Nickel prices were under $7 last week. Strong said several factors have substantially increased mining costs, including oil prices that have increased by 350 per cent, and the Canadian dollar, which has increased in value by 60 per cent compared to the U.S. dollar.

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Chiefs stand together to demand development on their own terms – by Ian Graham (Thompson Citizen – May 3, 2013)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.  

ian@thompsoncitizen.net

Representatives of the Assembly of Manitoba Chiefs (AMC), Manitoba Keewatinowi Okimakanak (MKO) and the Southern Chiefs’ Organization (SCO) held a press conference outside the provincial governments Mines Branch and Mineral Resources Division office in Winnipeg on April 26 to announce that Manitoba First Nations are declaring moratoriums on resource development in their traditional territories and that stop work orders on mine development are being posted and will be enforced.

“We’re no longer going to be sitting back watching corporations and governments come into our traditional territories and ancestral lands and exploit our resources, leaving us nothing at the end of the day,” said AMC Grand Chief Derek Nepinak. “We’re not going to accept that. The status quo is done. For far too many generations now, provincial governments, federal governments have worked in collusion with the corporate industries to come into our territories and to take the vast wealth of our ancestral lands. Meanwhile they come back to us with contribution agreements that are wholly inadequate to provide for the basic needs of our communities and our citizens. Those days are over, those days are done and what’s happening here I think is an emergence of a new unified position. Once again our people are leading the way.”

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Eviction notice adds to gloom in mining sector – by Martin Cash (Winnipeg Free Press – July 4, 2013)

http://www.winnipegfreepress.com/

These are not the best days to be in the mineral-exploration business in Manitoba.

Metal prices are low — gold prices are at their lowest level in 36 months; nickel, lowest in 48 months; copper, lowest in 30 months; and zinc, lowest in 18 months — investors’ appetite for risky (albeit tax-deductible) exploration plays is just about non-existent and starting this week in Manitoba, there is an additional one percentage point of sales tax on expensive equipment.

On top of that there is the potentially deal-breaking uncertainty over treaty land claims. One exploration company — Mega Precious Metals — that has been diligently working on a Manitoba gold property called Monument Bay for many years was surprised this week with an eviction notice from nearby Red Sucker Lake First Nation in northeast Manitoba.

In a news release, the band referred to the operation as “a mineral-exploration company operating illegally in Red Sucker Lake First Nation traditional territory.” But that same mineral-exploration company has been co-operating with the band for years and signed a memorandum of understanding (MOU) with Red Sucker Lake in 2010.

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Manitoba First Nation evicts mineral-exploration company – by Staff (Winnipeg Free Press – July 2, 2013)

http://www.winnipegfreepress.com/

The Red Sucker Lake First Nation presented a stop-work order and eviction notice over the weekend to a mineral-exploration company that reserve officials say is operating illegally in its traditional territory.

Mega Precious Metals, a mineral-exploration company based in Thunder Bay, has been drilling and developing a potential gold mine for a few years at Monument Bay, about 60 kilometres northeast of Red Sucker Lake First Nation.

Red Sucker Lake is about 700 kilometres northeast of Winnipeg. A spokesman for the band said action was taken now because new permits were issued recently without appropriate consultation with the band.

“The permits and licences granted to Mega Precious Metals Inc. are unlawful due to the absence of adequate consultation and accommodation,” says a statement from the band.

A spokesman for the band said there has been no violence or aggressive action related to the eviction notice.

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Oil more lucrative than mining [in Manitoba] – by Martin Cash (Winnipeg Free Press – June 7, 2013)

http://www.winnipegfreepress.com/

Manitoba industry hits revenue record in 2012, surpasses usual leader

For the first time, Manitoba’s oil industry has bragging rights over its resource cousins in the mining sector. In 2012, oil-industry revenue slightly nudged mineral-production receipts for top spot in Manitoba –$1.51 billion in oil and about $1.4 billion in nickel, copper, gold zinc and the rest of the underground miners’ production.

Last year, 18.5 million barrels of oil were produced. That’s 23 per cent more than 2011 and it has been growing by more than 20 per cent annually since 2005.

John Fox, assistant deputy minister of mineral resources for the Department of Innovation Energy and Mines, said there is no reason to think production won’t increase again this year.

“At 222 wells drilled already this year, we’re slightly ahead of last year,” Fox said. “We anticipate a similar 10 to 20 per cent increase in production in Manitoba in 2013. It’s not dying down.”

Manitoba’s oil production is restricted to the southwest corner of the province along the northeastern flank of the Williston Basin that extends into Saskatchewan, North Dakota, South Dakota and Montana.

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First Nations Chief’s charting economic success in Northern Manitoba – by Frank Busch (Troy Media – June 2, 2013)

http://www.troymedia.com/

Frank Busch is Director of Information and Marketing with the First Nations Finance Authority. The views expressed, however, are his own.

WESTBANK FIRST NATION, BC, Jun 2, 2013/ Troy Media/ – The Chiefs of Northern Manitoba gathered in Winnipeg for the 2013 Manitoba KeewatinowiOkimakanak (MKO) Economic Summit, Trade Show and Jobs Fair recently. MKO has their work cut out for them as they attempt to chart a course from poverty to prosperity. While approximately $3 billion in revenue from hydro, mining, forestry, fisheries and tourism is generated in Northern Manitoba every year, the First Nations in that region remain some of the poorest in the country. The MKO Chiefs understand that First Nations have been left out in the past and cannot afford to be left out in the future.

“If you fail to plan, you plan to fail” says Chief Garrison Settee of the Pimicikamak Cree Nation “it’s not enough to just talk about economic development, we have to make it happen.”

Manitoba Hydro alone will invest more than $34 billion in Northern Manitoba over the next 20 years. The main projects to be undertaken are Bipole III Transmission Project, the Keeyask and Conawapa generating stations, their associated domestic AC transmission facilities and a new Canada-U.S. transmission interconnection. The issue put to the MKO Chiefs is on how to best navigate these uncharted waters.

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A pot of gold at the end of Manitoba mine cleanup? – by Peter Kenter (Daily Commercial News – April 25, 2013)

http://www.dcnonl.com/

A Toronto environmental company is cleaning up a toxic Manitoba mine site at no cost to taxpayers. Its compensation? It gets to keep any gold it can extract from a stockpile of arsenopyrite concentrate.

“As the price of gold and copper began to rise, we realized the possibility for extracting value from mine tailings,” says Ross Orr, president and CEO of BacTech Environmental Corporation.

The company is employing bioleaching technology, which uses microbes to extract valuable metals from undesirable materials.

“Bacteria digest the sulphides to break up the matrix of the tailings materials,” says Orr. “The arsenic and iron go into the solution and the precious metals go into a precipitate for which we can use conventional extraction methods.”

While the technology isn’t new, the application is. The plant would be the world’s first bioleaching facility for the remediation of toxic material. The company initially met with some resistance, however, when it presented its ideas under its other banner, mining firm REBgold Corporation.

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Hudbay continues to build on Manitoba legacy – (Northern Miner – April 17, 2013)

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

VANCOUVER — Canadian base metal producer Hudbay Minerals(HBM-T) laid a foundation for success on the Flin Flon greenstone belt in northern Manitoba roughly 85 years ago. During that time the company has developed 26 mines in the region and moved around 145 million tonnes of ore. And with one major development project nearly complete and a strong resource base, Hudbay looks poised to tap the mineral wealth of Flin Flon’s volcanogenic massive sulphide (VMS) deposits for a long time to come.

The heart of Hudbay’s current production is its flagship 777 underground mine in Flin Flon, which has been producing copper, zinc, gold, and silver in concentrate since around 2004. The 777 operation was especially important for the company in 2012, when it was going through a transition period due to the permanent closure of its Trout Lake and North Chisel mines.

In 2013, 777 will again be Hudbay’s main profit driver, with production expected to total 1.6 million tonnes of ore grading 2.18% copper, 4.41% zinc, 1.94 grams gold per tonne, and 30.89 grams silver per tonne.

“The life of mine at 777 is around eight years, but we still see good potential to extend that life,” commented president and CEO David Garofalo during a first quarter presentation. “For the last several years our replacement ratio on production has been roughly one third, and we’re optimistic we can continue to do that and extend the mine life beyond that 2021 timeline through additional exploration.”

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HudBay granted injunction, judge tells RCMP to enforce it – by Bruce Owen (Winnipeg Free Press – March 21, 2013)

http://www.winnipegfreepress.com/

One of the top mining companies in Manitoba won a court injunction Wednesday to stop aboriginal protesters from blocking access to two of its remote mines.

But Justice Glenn Joyal’s court order could end up having no more clout than similar injunctions issued by courts in Manitoba and other provinces to restrict Idle No More protestors, who’ve called for a national day of action today to mark International Day for the Elimination of Racial Discrimination.

In approving the temporary injunction on behalf of Hudson Bay Mining & Smelting, Joyal said he expects protesters from Mathias Colomb Cree Nation (MCCN) to follow it and perhaps more importantly, RCMP to enforce it.

“The intention has to be to enforce the order,” Joyal said to lawyers representing the Mounties. “I’m confident the injunction will be respected and that the parties will in good faith carry on about their business.” An RCMP spokesman said late in the day the Mounties were reviewing the injunction.

A judge criticized the RCMP in January for not enforcing an injunction on behalf of Canadian National to remove protesters from a rail line west of Portage la Prairie.

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Mining firm [HudBay Mining] seeks to end roadblocks – by Bruce Owen and Geoff Kirbyson (Winnipeg Free Press – March 19, 2013)

http://www.winnipegfreepress.com/

Heading to court to obtain injunction

One of the biggest employers in northern Manitoba wants a judge to do what the RCMP won’t — stop a Manitoba First Nation from putting up Idle No More roadblocks at its mining sites.

Lawyers for Hudson Bay Mining and Smelting will be in court Wednesday to get an injunction to stop the Mathias Colomb Cree Nation and Chief Arlen Dumas from engaging in any acts that interfere with the mining company and its employees, court documents filed last week in Court of Queen’s Bench say.

HBM&S also wants an order for RCMP to arrest anyone who contravenes that injunction. “I am concerned that if further blockages occur, the RCMP will require a court order to take steps to enforce compliance with HBM&S’s right to access to and from its projects and mining operations in Manitoba,” HBM&S vice-president Brad Lantz said in an affidavit.

Members of the Mathias Colomb Cree Nation have blocked access to the HBM&S Lalor project near Snow Lake twice this year and have threatened to blockade access to the company’s Reed Lake copper mine, 120 kilometres east of Flin Flon.

Lantz said at the two Lalor project blockades RCMP attended, but took no action to restrain protesters from interfering with access to company property.

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HudBay sues First Nation over Idle No More blockade – by CBC News (March 18, 2013)

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

A Manitoba First Nation is being sued by Hudson Bay Mining and Smelting for a series of Idle No More protests and blockades.

The company claims protestors from Mathias Colomb Cree Nation (MCCN) caused a safety risk to employees when they blocked the entrance to where the company’s gold, zinc and copper mine is being developed near Snow Lake in January and March.

Protestors claim it was the company that closed the gate. They also disagree it was a blockade. “Actually we didn’t organize blockades. We organized demonstrations where you go and exercise some of our treaty rights on our ancestral lands,” said MCCN Chief Arlen Dumas.

Dumas said HudBay and the Manitoba government should have obtained consent from area aboriginals before going ahead with development. The band never surrendered its rights to the land and resources, he said. Work is well underway on development of the 916-hectare property.

A court hearing on the lawsuit is scheduled for Wednesday. Hudson Bay Mining and Smelting also wants an injuction against any further protests.

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Mathias Colomb Cree Nation issues second stop work order to Hudbay – by Ian Graham (Thompson Citizen – March 8, 2013)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000. editor@thompsoncitizen.net

IAN@THOMPSONCITIZEN.NET

Mathias Colomb Cree Nation (MCCN) at Pukatawagan announced March 5 that Chief Arlen Dumas would return to the Lalor Mine near Snow Lake to issue a second stop work order against Hudbay, which operates the mine. A previous stop work order from MCCN was issued to the company and the Manitoba government on Jan. 28.

“Both the province and Hudbay have failed to comply with the order and thus Chief Arlen Dumas is returning to issue a second order,” announced MCCN in a press release.

“This order is issued because: Hudson Bay Mining and Smelting Co., Ltd. And affiliated companies have breached the traditional laws of Missinippi Nehethowak as represented by Mathias Colomb Cree Nation by constructing, operating, and extracting resources from Lalor Mine at Snow Lake without the express permission of the owners Missinippi Nehethowak as represented by Mathias Colomb Cree Nation,” read the stop work order presented on Jan. 28. “WARNING: The failure to stop work, the resumption of work without permission from the Missinippi Nehethowak as represented by Mathias Colomb Cree Nation is punishable by the laws of Mathias Colomb Cree Nation.”

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Too many roadblocks for northern roads? – by Lou Smyrlis (Canadian Transportation and Logistics Blog – March 13, 2013)

http://blog.ctl.ca/

With more than 15 years of experience reporting on transportation issues, Lou Smyrlis is one of the more recognizable personalities in the industry. An award-winning writer well known for his insightful writing and meticulous market analysis, he is a leading authority on industry trends and statistics.

Attending the Transport Institute’s Northern Exposure 2 conference in Winnipeg recently proved an illuminating foray into the challenges of serving Canada’s northern communities – admittedly the kind of stuff those of us who live and work in more forgiving climates, terrains and transportation networks don’t think much about, but should.

Why should we? Because our once isolated northern communities will become increasingly more economically important and demanding of better freight transport services.

Mining and energy exploration and development combined with population growth are the new realities for the country’s traditionally isolated northern communities. For example, there is $130 billion worth of mining investments projected over the next five years for Canada, most of it in the north.

At the same time, the population of remote northern communities is growing at 4-5% while the rest of Canada is growing at about 2%. And these growing communities will be in need of goods just like the rest of us.

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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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HudBay bets big with Constancia project as rivals pull back – by Pav Jordan (Globe and Mail – March 8, 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.

Toronto-based HudBay Minerals Inc. is a rare breed these days. In an industry reluctant to spend on anything beyond operating costs, the base metals miner is plowing ahead with a copper project in Peru called Constancia that will cost it nearly as much to build as the company’s entire market capitalization.

Even as global miners report billion-dollar cost overruns and asset writedowns and the industry is buffeted by demand headwinds in commodity markets – HudBay is spending $75-million a month on Constancia, where thousands of workers are already on site.

“It’s a relatively small company with a big project in development in Constancia and that’s got the market a little bit concerned,” said John Hughes, an analyst with Desjardins Securities in Toronto, who nevertheless has a “buy” on the stock and a target price that is 30 per cent higher than where it’s currently trading.

Others share not only his concerns, but also his enthusiasm about potential growth at the company, and 80 per cent of analysts polled by Bloomberg News have a “buy” rating on HudBay, which closed at $10.12 a share on Thursday.

“They’re basically betting their market cap on one mine,” said George Topping, an analyst with Stifel Nicolaus in Toronto, who also has a “buy” on the stock, with a target price of $13.75 a share.

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