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Quebec Mining

Canada’s last asbestos mine may have future as Mars stand-in – by Peter Rakobowchuk (Globe and Mail – November 25, 2012)

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.

MONTREAL — The Canadian Press – Canada’s last asbestos mine, now winding down its operations, may have a new celestial calling — as a stand-in for planet Mars. Quebec’s Jeffrey Mine hosted nearly two-dozen scientists recently for a simulated Mars mission initiated by Canada’s space agency.

The scientists from four universities made a pair of trips to the Asbestos region, this year and last year, accompanied by a micro-rover. “There are definitely areas (on Mars) that are much more like what we have at Jeffrey Mine,” said Ed Cloutis, a University of Winnipeg professor who participated in the project. The new vocation won’t exactly replace the once-mighty asbestos industry as an economic lifeblood for the region.

The mine had been counting on a $58-million government loan to renovate and keep operating. The simulated Mars mission, on the whole, cost $800,000 — and some local officials, including an alderman and the town’s director general, didn’t even appear to be aware of the project when contacted by The Canadian Press.

The goal of the project was to simulate as closely as possible a Mars rover mission to detect the presence of, and determine the source of, methane on Mars.

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Quebec budget: Marceau says mining royalties plan isn’t ready yet – by Lynn Moore (Montreal Gazette – November 20, 2012)

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

QUEBEC — A widely-anticipated hike in mining royalties didn’t make it into the Parti Québécois government’s first budget because of time constraints, Finance Minister Nicolas Marceau said on Tuesday.

But he and other cabinet ministers are hammering out that royalty framework for natural resources development, Marceau told the National Assembly.

“We want to bring in these changes in an orderly and responsible manner to ensure the stability of the mining sector. We will consult the industry and the stakeholders concerned about this issue so that everyone benefits from the changes that will be made,” he said.

Earlier, Marceau told reporters that the new regime will be unveiled “sooner rather than later.” “In the time I had at my disposal (since the election), it wasn’t possible to arrive here today with a royalties regime,” he said.

During the election campaign, the PQ said it would introduce a five-per-cent royalty on all mining operations, increasing it to 30 per cent if the mine’s profits reached a certain level. Marceau said he remains convinced that an “obligatory royalty based on the net value and a tax based on excess profits are still viable approaches.”

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New Quebec budget delays moves on mining royalties – by Louise Egan (Mineweb.com – November 21, 2012)

 http://www.mineweb.com/

The first budget from Parti Quebecois since it won a September election is being viewed as far more conciliatory than expected, especially toward business.

QUEBEC CITY (REUTERS) – The Canadian province of Quebec promised on Tuesday to overhaul its system of mining royalties next year in a budget that was otherwise seen as more business-friendly than expected.

After winning a September election, the separatist Parti Quebecois (PQ) ruffled feathers in the corporate sector with talk of increasing the financial burden on wealthy households and on companies in order to pay for tax breaks for low and middle-income households, as well as to cover the cost of reversing the previous Liberal government’s decision to raise university tuition and electricity rates.

While the PQ, which has a minority of seats in the legislature, says it still plans to follow through on some of those promises, it scaled back those ambitions somewhat in a budget seen as more conciliatory.

“If we listened to their promises during the election campaign and then look this budget, it’s not the same government,” said Carlos Leitao, chief economist at Laurentian Bank.

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PQ makes oily mess with its pipeline rhetoric – by Sophie Cousineau (Globe and Mail – November 17, 2012)

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.

Just when you think the Parti Québécois has finally put the lid on the outbursts and non-scripted remarks that characterized the party’s first days in power, here comes Daniel Breton.

On Wednesday, Mr. Breton, Quebec’s Environment Minister, said the province could block Enbridge Inc.’s project to transport oil from Alberta to Quebec on environmental grounds. Never would Mr. Breton accept the reversal of the flow of the pipeline between Sarnia and Montreal if it were imposed by Ottawa against Quebec’s will. “What I see is Alberta wanting to transport its oil on our territory without our consent. Are we masters of our own territory or not?” he said, even if is unclear whether the province has authority over the project, which the National Energy Board will review.

After a call from Pauline Marois’ office, Mr. Breton tamed his words. Even his colleague Martine Ouellet, the Natural Resources Minister who has made incendiary remarks of her own, tempered the discourse of this former activist, who is so green he glows in the dark. “There are economic advantages with respect to costs and it also represents an alternate source of supply,” she noted.

There are also political advantages in saving jobs.

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Quebec shows tougher approach toward mining sector with access road deal – The Canadian Press/CTV News (November 15, 2012)

http://www.ctvnews.ca/

QUEBEC — Quebec’s new government is living up to its pledge to take a tougher stance with mining companies after offloading some responsibility for the construction of a controversial access road.

Finance Minister Nicolas Marceau announced Thursday that Quebec has renegotiated a deal that will see Stornoway Diamond Corp. (TSX:SWY) assume a bigger share of the costs to build a route to its proposed mine.

Marceau expects the agreement on the 240-kilometre highway extension to the Renard diamond mine site will save Quebec taxpayers at least $124 million. “We’re not going to build gold-plated roads with huge cost overruns,” Marceau told a new conference.

“The signal we’re sending to mining companies is that we’re ready to make deals with you, but the terms must be reasonable for Quebec taxpayers.”

PQ officials had expressed concern that costs for the Route 167 project had exploded beyond the estimated budget of $260 million in 2009. By August, the price tag had soared to $472 million.

The new deal will drop the maximum cost down to $304 million, the government insists. The PQ has criticized the previous Liberal government’s northern-development plan — known as the Plan Nord — for being too generous to the mining sector.

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Stornoway strikes new deal with Quebec on diamond mine road – by Nicolas Van Praet (National Post – November 16, 2012)

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

MONTREAL – Stornoway Diamond Corp. has struck a new deal with the Quebec government on a controversial highway leading to its Renard diamond mine that will see it pay a bigger share of the total costs but ensures construction of the mine itself remains on target for 2013.

The renegotiated agreement is the first of several the Parti Québécois government is looking to revamp as it grapples with significant cost overruns on 20 major infrastructure projects inherited from the previous Liberal administration. The new deal saves Quebec taxpayers $124-million and marks the start of new effort to recoup public money that was bargained away to benefit the private sector, PQ ministers said.

“There are other cases where it will be harder to save money, but we’ll do as much as we can on all the projects,” Quebec Finance Minister Nicolas Marceau told reporters. “We will make sure that, in those deals, Quebecers are not paying too much.”

The Stornoway deal involves the Route 167 extension, a 243-kilometre all-season highway leading to the company’s Renard site. The road, championed publicly by former Premier Jean Charest as one of the centrepieces of his Plan Nord development project, had become a political lightning rod after costs ballooned from initial estimates of $260-million to more than $470-million.

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Osisko buying Queenston Mining in all-stock deal – by Craig Wong (National Post – November 13, 2012)

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

Canadian Press – Osisko Mining Corp. signed an all-stock deal Monday valued at $550-million to buy Queenston Mining Inc. and its flagship Upper Beaver project in Ontario’s Kirkland Lake region.

Osisko president and chief executive Sean Roosen said work on the Upper Beaver project is coming to a critical stage in its development. “We feel this is the perfect time for us to bring our mine permitting and development teams into the project to back the plan and to make Upper Beaver a successful mine,” Mr. Roosen said on a call with analysts.

“We also have the ability to fund Upper Beaver development from internal cash flow so we don’t anticipate any further dilution as we evolve these projects.”

Queenston also owns several other gold properties in the Kirkland Lake gold camp area as well as interests in projects in Quebec, Manitoba and elsewhere in Ontario.

Queenston president and CEO Charles Page said the Upper Beaver project has the potential for four million ounces of gold. “Osisko’s proven development team can certainly maximize the potential of the Upper Beaver project,” he said.

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NEWS RELEASE: OSISKO ANNOUNCES FRIENDLY ACQUISITION OF QUEENSTON

November 12, 2012

MONTREAL, QC and TORONTO, ON – November 12, 2012. Osisko Mining Corporation (“Osisko”) (TSX:OSK) (FRANKFURT:EWX) and Queenston Mining Inc. (“Queenston”) (TSX:QMI) (OTCQX:QNMNF) are pleased to announce that they have entered into a definitive agreement (the “Agreement”) pursuant to which Osisko will acquire, by way of a court-approved plan of arrangement, all of the issued and outstanding common shares of Queenston. Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising 230km2 of prime exploration lands on trend with Osisko’s flagship Canadian Malartic mine.

Pursuant to the terms of the Agreement, Queenston shareholders will receive 0.611 of an Osisko share for each common share of Queenston held, implying an offer of C$6.00 per share based on Osisko’s closing price on the Toronto Stock Exchange (“TSX”) on November 9, 2012. The offer represents a 45% premium to Queenston’s 30-day volume-weighted average price (“VWAP”) for the period ending November 9, 2012.

The transaction values Queenston’s equity at approximately C$550 million on a fully diluted in-the-money basis and implies an enterprise value of approximately C$400 million. Pro forma the transaction, Queenston shareholders will own approximately 12% of Osisko (based on fully diluted in-the-money shares outstanding).

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Black clouds over Plan Nord – by Alain Castonguay (CIM Magazine – November 2012)

http://www.cim.org/en.aspx

PQ calls for revision of mining royalty regime

When Quebec’s Legislative Assembly was dissolved on August 1, the Charest government was unable to pass two significant legislative acts regarding resources, namely Bill-14 that would create a foundation for an innovative mining development model, and Bill 27, a bill to establish the corporation La Société du Plan Nord. Even the budget bill, which notably sought to modify the royalty regime for land-based oil extraction, failed to pass.

This year’s election saw Martine Ouellet, current minister of natural resources, re-elected on the Parti Québecois (PQ) ticket in Vachon. Ouellet actively worked to block Bills 14 and 27. PQ candidates Lorraine Richard (René-Lévesque) and Luc Ferland (Ungava) were also re-elected. These two members of the national assembly used the time allotted to them to delay the detailed study of bills in a parliamentary committee. Richard and Ferland, who have been very critical of Plan Nord, beat out the incumbent Quebec Liberal Party (PLQ) candidates in Fermont and Lebel-sur-Quévillon.

On August 23, in Montreal, the Fédération des chambres de commerce du Québec used the election campaign as a chance to hold a debate on natural resources. Participants included Martine Ouellet, Raymond Bachand (PLQ, re-elected in Outremont) and Gérard Deltell (Coalition Avenir Québec, re-elected in Chauveau). On this occasion, Ouellet emphasized her party’s platform, which she had been hawking on the campaign trail:

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Quebec Mineral Exploration Association (AEMQ) calls on Quebec to play by the rules – by Marilyn Scales (Canadian Mining Journal – October 30, 2012)

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Concern is mounting within the industry as the Quebec government mulls a ban on uranium exploration. This news is creating uncertainty in Quebec’s mining industry, particularly with respect to Strateco Resources’ Matoush project in the Otish Mountains roughly 200 km from Chibougamau and Mistissini.

Strateco has been working at Matoush since 2006, and says it is considered one of the highest grade uranium projects in the world. At Dec. 31, 2011, the deposit had an indicated resource of 453,000 tonnes grading 0.78% U3O8, containing 7.78 million lb of yellowcake. There is also an inferred resource of 2.04 million tonnes grading 0.43% U3O8 and containing 19.22 million lb of U3O8 using a cut-off grade of 0.10%.

Between 2008 and 2012, Strateco conducted rigorous studies into the impact of the Matoush project, which have been independently monitored and verified. Following these studies, the Canadian Nuclear Safety Commission (CNSC) approved an underground exploration program at Matoush earlier this month. The licence is valid until Oct. 31, 2017.

The alarm is being raised by the Quebec Mineral Exploration Association (AEQM).

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Opposition on uranium mines won’t change: Cree – by Michelle Lalonde (Montreal Gazette – October 23, 2012)

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

MONTREAL — The next step in the proposed uranium mine project near Mistissini in northern Quebec got a green light from the Canadian Nuclear Safety Commission last week, but even the commission acknowledges that the Cree Nation is waving a big red stop sign.

Chief Robert Shecapio flew down to Montreal from his community of Mistissini, north of Chibaugamau, this month to draw attention to his community’s intense opposition to uranium mining. That position is held widely across the nine Cree nations of northern Quebec, not to mention hundreds of municipalities all over the province that have passed resolutions against it.

“We are not opposed to any other kind of development foreseen in our territory … (but as for uranium), our opposition will not change.” Shecapio told The Gazette last week.

The Matoush Project is the most advanced of about 20 proposed uranium mining projects for northern Quebec, and was part of the defeated Liberal government’s much-vaunted Plan Nord. While the Parti Québécois called for a moratorium on uranium mining in 2009, the party was less clear on the issue during the recent election campaign.

Environment Minister Daniel Breton and his aide Danielle Rioux have refused repeated requests for an interview with The Gazette on the issue over the last two weeks.

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PRESS RELEASE: NUCLEAR: DOCTORS SUPPORT THE MORATORIUM ON URANIUM EXPLORATION AND LAUNCH OF A GENERIC BAPE PROCESS FOR URANIUM MINES IN QUEBEC

PHYSICIANS FOR GLOBAL SURVIVAL (CANADA)

2012.10.23

Physicians for Global Survival (Canada) says it is in total agreement with Quebec Environment Minister Daniel Breton’s decision to impose a moratorium on uranium exploration and to launch a generic BAPE process regarding uranium mining in Quebec.

Some Canadian provinces and US States have already enacted a moratorium on uranium exploration and use: British Columbia, Nova Scotia, Virginia. We firmly believe that Quebec must follow suit and that it should seriously study the risks associated with this industry.

There are many reasons why PGS opposes the development of uranium exploration and mining. The first one is that this industry spews enormous quantities of toxic and radioactive wastes into the environment (80-85 per cent of the initial ore mass). Some of these substances have half-lives of thousands of years. Others, such as radon gas, can travel far from the mine site and contaminate the environment. The risk of air, land, groundwater and surface water contamination is quite significant.

We wish to underline that the health risks associated with radioactive substances are already well known and that this knowledge is getting better and better. Uranium causes bone and kidney pathologies and is toxic to the neurological system, liver and embryo.

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Two approaches to northern [Ontario] mines – Thunder Bay Chronicle-Journal Editorial (October 19, 2012)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

IT has become standard procedure for campaigning politicians to change their minds once in office — if they ever had any intention of keeping some promises in the first place. “Read my lips, no new taxes,” was George H.W. Bush’s way of phrasing it, but many seeking office in Canada have done the same. Departing Ontario Premier Dalton McGuinty said as much in advance of the 2003 election campaign, only to introduce the Ontario Health Premium, the largest tax increase in post-war Ontario.

Pauline Marois sees things another way, at least in so far as northern Quebec is concerned. Running against Liberal Jean Charest, the Parti Quebecois leader had little good to say about his signature regional development policy, Plan Nord, which seeks to stimulate industrial activity north of the 49th parallel. But now that Marois is premier, and with mining potential that may be on a par with that in Northern Ontario, Marois is allowing for the possibility of tax incentives to attract mining projects to Quebec’s Far North.

The difference between Quebec and Ontario’s approach is important because it signals the McGuinty government’s unwillingness to engage in hard bargaining in spite of holding the high cards.

Marois has stipulated that in order to be eligible for the tax credits she once eschewed, mining companies would have to process their ore in Quebec. This, of course, results in far greater economic benefit to the host region and province than if raw ore is shipped elsewhere — usually to low-cost, low-wage places chosen by companies to maximize profits.

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ArcelorMittal eyes Canadian iron ore stake sale: sources – by Euan Rocha (Montreal Gazette/Reuters – October 19, 2012)

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

Deal could potentially avoid Investment Canada hurdle

TORONTO – ArcelorMittal, the world’s largest steelmaker, is exploring the sale of a minority stake in its Canadian iron ore business, sources familiar with the situation said.

The company has retained RBC Capital Markets and Goldman Sachs to assist in the process, which has been going on for a few months, said one of the sources, adding that a deal is likely to be announced before the end of the year.

ArcelorMittal (NYSE: MT) is one of Canada’s top exporters of iron ore to steel markets around the world and its operations account for about 40 per cent of Canada’s iron ore output. It operates two large open-pit mines in the province of Quebec, where it also owns the Port-Cartier industrial complex that includes a pellet plant, storage areas and port facilities for shipping.

ArcelorMittal Mines Canada, which traces its origins back to the Quebec Cartier Mining Co., produces 15 million tonnes of iron ore concentrate and more than 9 million tonnes of iron oxide pellets annually.

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Quebec Premier floats idea of tax credits to attract Plan Nord mining investment – by Sophie Cousineau (Globe and Mail – October 18, 2012)

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.

Paris — During Quebec’s electoral campaign, Pauline Marois criticized the Plan Nord, intimately associated with her Liberal predecessor Jean Charest, for its generosity towards private companies. But now that the Parti Québécois Premier is courting French investors in Paris, helping out mining companies no longer looks like such a bad idea.

The PQ government is thinking of introducing new tax credits to attract mining projects to the Plan Nord territory, which encompasses all of Quebec north of the 49th parallel. “This is an avenue we could choose,” Ms. Marois said during the news conference that ended her three-day mission in France.

But there is a catch. To be eligible for these tax credits, companies would have to transform the metals and minerals extracted locally. “It is an exchange of friendly services,” said Ms. Marois, who wishes to put the PQ’s imprint on the Liberal program.

“But we are pressing on with the North’s development,” she said. The new tax credits would be similar to the ones that Quebec used to create a multimedia and video game hub in Montreal, Ms. Marois explained. They translated into a fixed amount of money per employee hired on an annual basis.

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