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Harper government fires back at Jimmy Carter Keystone stance – by Alexander Panetta (Canadian Press/Globe and Mail – April 16, 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.

WASHINGTON — The Keystone XL pipeline issue has created a tiff between a former U.S. president and the Canadian government.

The Prime Minister’s Office reacted swiftly Wednesday to a letter signed by Nobel laureates, including Jimmy Carter, urging President Barack Obama to reject the pipeline.

Carter is the first former president to come out against Keystone XL. Prime Minister Stephen Harper’s office responded with a warning: Remember 1979.

It was a reference to the dip in oil supply which followed the Iranian revolution and touched off a global panic. Prices spiked and long lines formed at gas stations, helping destabilize Carter’s one-term presidency.

“Mr. Carter knows from his time as president during the 1979 energy crisis there are benefits to having access to oil from stable, secure partners like Canada,” the PMO said.

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Vale required to produce safety plans – by Carol Mulligan (Sudbury Star – April 16, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

A Ministry of Labour inspector is requiring Vale Ltd. to produce safety plans for the front-line supervisor, superintendent and managers for the area in which millright Paul Rochette was working when he was killed April 6 at the Copper Cliff Smelter Complex.

The requirement to produce the documents by April 25 is part of a phase of examining documentation in the Ministry of Labour’s investigation of the death of the 36-year-old father of two in the crushing and casting plant at the complex. Rochette suffered severe head trauma and another millwright, a 28-year-old man, suffered a concussion and facial lacerations in the accident.

It is believed that a large piston or moil, that crushes nickel-copper ingots at high pressure moving along a conveyor belt, broke off and ended up in the system and may have struck the men. The company and the men’s union, United Steelworkers Local 6500, are conducting a joint investigation into the accident.

The Ministry of Labour and Greater Sudbury Police Service are also investigating. The Labour ministry has control of the scene at this point in the investigation.

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Historic strike recalled – by Kevin McSheffrey (Elliot Lake Standard – April 16, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

ELLIOT LAKE — It was a clear, but cold morning when two bus loads of United Steelworkers stopped at the intersection of Highway 108 and what was once the turnoff to Denison Mines, about 15 kilometres north of Elliot Lake on Wednesday.

This was the second day of a three-day forum that began in Sudbury and will end here Thursday. As many as 90 people from across the country and parts of the United States took part in the forum to remember and commemorate an event that took place in Elliot Lake four decades ago.

The visit to Elliot Lake was to mark the 40th anniversary of the Denison Mines wildcat strike that started on April 18, 1974, and lasted three weeks.

The wildcat strike was to protest the deplorable and unsafe working conditions. One of the biggest issues was ventilation. Underground mineworkers were breathing in dust contaminated with radon daughters, resulting in many getting silicosis and lung cancer, and ultimately dying.

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Harold Hamm: The Billionaire Oilman Fueling America’s Recovery – by Christopher Helman (Forbes Magazine – April 16, 2014)

 http://www.forbes.com/

This story appears in the May 5, 2014 issue of Forbes.

Harold Hamm has transformed the U.S. oil industry like no one since John D. Rockefeller, while helping to keep domestic prices low — and making himself a $17 billion fortune. The great domestic energy boom, he says, is just beginning.

Two Scotches in, with seats on the floor of Oklahoma City’s Chesapeake Energy CHK +0.96% Arena, Harold Hamm is feeling good. And why not? His hometown Thunder is spending the evening whupping the Philadelphia 76ers. Earlier Hamm announced big bonuses for Continental Resources CLR +1.99% employees, courtesy of record oil production. And a judge’s ruling, revealed that morning, in Hamm’s divorce case suggested the energy tycoon would keep the Continental shares he already owned when he married soon-to-be-ex Sue Ann Hamm 26 years ago. With that chunk of stock, encompassing about $16 billion out of his $16.9 billion fortune, Hamm owns 70% of Continental.

As every wildcatter knows, such is life in the oil patch when you’re on a hot streak. And Hamm’s on perhaps the most epic one in domestic energy history, perhaps save for John D. Rockefeller’s. No one, aside from kings, dictators and post-Soviet kleptocrats, personally owns more black gold–Continental has proved reserves of 1 billion barrels, mostly locked underneath North Dakota. Hamm took the company public in 2007–and shares are up 600% since, as the revolution in horizontal drilling has given America a cheap energy booster shot, fueling factories, keeping a lid on gas prices and adding millions of jobs.

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Why the Great Wash U Sit-in Against Peabody Coal Matters: Which Side Are You on? – by Jeff Biggers (Huffington Post – April 16, 2014)

http://www.huffingtonpost.ca/

Entering its second week, the inspiring Washington University sit-in against Peabody Energy has already gone beyond its goals to cut school ties with the St. Louis-based coal giant, and forced the rest of the nation to ask themselves an urgent question in an age of climate change and reckless strip mining ruin: Which side are you on?

Will other schools, alumni groups — and investors in Peabody Energy — follow the lead of the Washington U. students?

Case in point: Tonight in my native Saline County in southern Illinois, the county commissioners genuflected to short-term Peabody coal dollars over the “negative impact on about a dozen homeowners who live near the site of the proposed mine,” according to one cynical commissioner, and voted to allow the company to close off Rocky Branch road for a proposed strip mine expansion, despite the lack of EPA permits, and documented evidence of flooding, blasting and emergency access problems.

Facing financial ruin, grave heath problems and displacement, the Rocky Branch residents will fight on, thanks to the Wash U. students, and continue to tell the truth: We all live in the coalfields now, in this age of climate change, and it is no longer acceptable to allow anyone to be collateral damage to a disastrous energy policy.

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COLUMN-China economic data shows trend to less-intensive commodity use – by Clyde Russell (Reuters U.K. – April 16, 2014)

http://uk.reuters.com/

Clyde Russell is a Reuters columnist. The views expressed are his own.

LAUNCESTON, Australia, April 16 (Reuters) – China’s economic growth data contains a short-term positive and longer-term negative for commodity demand in the world’s largest user of raw materials.

The positive is that gross domestic product (GDP) growth of 1.4 percent in the first quarter is soft enough to justify the mini-stimulus spending on infrastructure planned by the authorities.

While many in the market will focus on the year-on-year GDP growth of 7.4 percent being ahead of the market consensus for 7.3 percent, the more important figure is the quarterly outcome. If annualised, this would come in at 5.8 percent, well below the government’s target for 7.5 percent growth.

Even a mini-stimulus that boosts spending on rail and other infrastructure would be positive for demand for major commodities, such as iron ore, copper, crude oil and coal. There are, of course, risks to the short-term outlook in the form of a crackdown on using commodities as collateral for financing deals.

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Osisko strikes new $3.9-billion deal with Yamana, Agnico Eagle – by Bertrand Marotte (Globe and Mail – April 16, 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.

Osisko Mining Corp. has struck a deal valued at about $3.9-billion that would see Yamana Gold Inc. and Agnico Eagle Gold Inc. acquire Osisko in a cash-and-stock transaction.

Meanwhile, Goldcorp Inc. — which recently raised its hostile bid for Osisko and its rich Canadian Malartic gold mine to $3.6-billion — said it plans to nominate its own slate of 11 directors to replace Osisko’s board members at Osisko’s annual meeting May 20.

The new offer — which adds Agnico Eagle as a partner — represents roughly an 11 per cent premium to the implied value of Goldcorp’s hostile offer. Under terms of the deal announced by Osisko and its partners Wednesday, Agnico Eagle and Yamana will form a joint acquisition entity that will acquire all of Osisko’s common shares.

Agnico and Yamana will each own 50 per cent of Montreal-based Osisko and they will form a joint committee to operate the Canadian Malartic mine in northwestern Quebec.

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Price slump hits B.C. coal miners – by Brent Jang (Globe and Mail – April 16, 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.

VANCOUVER — A devastating price slump is hammering British Columbia’s coal sector as a U.S.-based company halts mining in the province while other players face mounting pressure.

Walter Energy Inc. highlighted the troubles Tuesday when it announced its decision to stop B.C. mining until coal prices recover.

Last week Virginia-based James River Coal Co. filed for bankruptcy protection in the United States, underscoring tough times in the global industry.

The coal industry has traditionally been a key driver of B.C.’s economy, with companies generating billions of dollars in revenue every year and employing thousands of workers. Now producers are starting to question the viability of their projects as prices hit new lows.

In 2011, coal prices soared to $300 (U.S.) a tonne. Prices for metallurgical coal have since tumbled to roughly $120 a tonne, hurt by ample new supplies from Australia, slower-than-forecast economic growth in China and a shift away from long-term coal pricing contracts that had provided some stability.

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3 Reasons Why Palladium Prices Should Continue To Surge – by Royston Wild (Forbes Magazine – April 15, 2014)

http://www.forbes.com/

A confluence of factors have propelled palladium to multi-year peaks in the past few days. Recent highs above $800 per ounce representing the highest level since March 2011, and for some a march towards 2001′s all-time high of $1,090 is considered a very real possibility.

I am amongst those who reckon that palladium is poised to enjoy further solid price appreciation, and here I outline the three major factors which should continue to drive the metal skywards.

Russian shipments on the wane

The escalating political crisis in Ukraine has been a significant driver of palladium’s ascent in recent weeks, with Russia’s alleged involvement in the conflict prompting the US and the European Union to discuss imposing heavy economic sanctions on the country.

Norilsk Nickel is the world’s largest producer of the precious metal, and last year the company produced 2.58 million ounces of the material, or about 40% of total global supply. So the possibility of trade restrictions being placed on Russia could be catastrophic for metal supplies.

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Canada knew nuclear deal with China could be seen as ‘weak’: Docs – by Carl Meyer (Embassy News – April 16, 2014)

http://www.embassynews.ca/

Briefing notes say even though safeguards changed, non-proliferation policy would still be achieved.

After a major Canadian uranium mining firm landed deals with Chinese state-owned enterprises, the Harper government met several times with the firm and then announced a new protocol to ship raw Canadian uranium directly to China—even though it knew the protocol’s safeguards could be perceived as “weak,” government documents show.

Nuclear disarmament advocates fear the new scheme is an example of commerce driving policy in Ottawa. They say it could set a precedent that countries can establish workarounds to international nuclear security standards if the status quo was seen to be restricting potential trade.

“Commercial interests, as important as they are, must be shaped and constrained by non-proliferation considerations,” said Cesar Jaramillo, program officer for space security and nuclear disarmament at Waterloo-based Project Ploughshares.

But Canada says the deal with China will ensure Canadian uranium is used only for “strictly peaceful, non-military purposes” and that the new requirements are “appropriate to the level of the proliferation risks involved.” The Chinese Embassy also assured Canadians that its nuclear facilities are safe and under control.

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Can Canada Prosper without a Prosperous Ontario? – by Livio Di Matteo, Jason Clemens, and Milagros Palacios (Fraser Institute – April 2014)

Click here for the entire report: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/can-canada-prosper-without-a-prosperous-ontario-rev.pdf

Summary

Ontario’s economic struggles, which are most dramatically illustrated by its transition to a “have-not” province, have implications far beyond the borders of the province. For the better part of a decade, and particularly since the recession of 2008/09, Ontario’s economic performance has dragged down that of the national economy. Due to both the sheer size of Ontario’s economy and its population, as well as the fact that the Canadian economy is highly integrated, what happens in Ontario influences our national economy.

The important influence of Ontario on the national economy is borne out by statistics. For example, if we compare the variation in per-capita GDP growth for Canada (without Ontario) against the variation in Ontario for the period from 1982 to 2012, we find that the variation in Ontario explains roughly three quarters of the variation in the rest of the national economy. Simply put, for the better part of three decades, the success of Canada’s economy was inextricably linked with the success and failure of Ontario’s economy.

Ontario’s influence is also seen in employment statistics. About two thirds of the variation in employment growth in the rest of Canada between 1982 and 2012 is explained by the variation in employment growth in Ontario. In other words, Canada experienced strong employment growth when Ontario experienced strong employment growth, and vice versa.

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UPDATE 2-BHP and Australian rivals raise iron ore targets as competition grows – by James Regan (Reuters India – April 16, 2014)

http://in.reuters.com/

SYDNEY, April 16 (Reuters) – Australian miners are racing ahead with plans to expand iron ore production to capture more of the Chinese market for the steelmaking ingredient, amid strong competition from the world’s biggest supplier Vale of Brazil.

Efforts to beat already ambitious output targets comes as a crackdown in China on using commodities as collateral to raise cash risks unleashing iron ore sales from tens of millions of tonnes sitting in Chinese port warehouses, pressuring prices.

Fortescue Metals Group Ltd, which is raising production 57 percent this year, says its needs iron ore prices to stay between $110-$120 a tonne for the next 12-18 months in order to pay off a targeted $2.5 billion in debt.

The Australian Bureau of Resources and Energy Economics forecast an average price of $110 a tonne this year but only $103 a tonne in 2015. By 2016, Citigroup sees the price falling to $80.

Iron ore was quoted at $117.10 .IO62-CNI=SI on Wednesday. BHP, the world’s biggest diversified mining company, on Wednesday lifted full-year iron ore production guidance by 5 million tonnes to 217 million as it pushes ahead with new mine work in Australia.

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Walter Energy idles Canadian mines as expensive acquisition comes back to haunt – by Peter Koven (National Post – April 16, 2014)

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

TORONTO – A Canadian acquisition from three years ago continues to create headaches for U.S. coal miner Walter Energy Inc.

When Walter paid $3.3-billion in cash and stock for Vancouver-based Western Coal Corp., the company thought it was creating a dominant North American coal producer for years to come. The metallurgical coal market was red-hot, and Western provided Walter with one of the best production growth profiles in the industry.

Unfortunately for Walter, the deal has backfired in almost every conceivable way. Coal prices plummeted; the company ran into balance sheet problems; it ended up in a proxy fight with a former Western shareholder; and on Tuesday, Walter announced it will idle all the Canadian operations it bought in the Western transaction.

Walter has been eyeing a closure of its Canadian mines for months. But the tipping point came after a quarterly coal sales contract got settled around US$120 a tonne. The cash costs at Walter’s Canadian and U.K. operations were above US$132 in the quarter ending Dec. 31, meaning Walter would be bleeding cash if it kept these mines running.

“Our CEO said that we’re just as well served to leave the coal in the ground and wait for a time when the market conditions are better,” Walter spokesman Tom Hoffman said.

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SEC conflict mineral rule violates freedom of speech, U.S. court says – by Andrew Zajac (National Post/Bloomberg News – April 16, 2014)

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

A U.S. Securities and Exchange Commission rule requiring companies like Boeing Inc. and Apple Inc. to disclose whether any “conflict minerals” are used in their products violates their free-speech rights, an appeals court in Washington said.

The rule was part of the 2010 Dodd-Frank Act overhauling regulations of securities markets and applies to certain minerals, including gold, tin, tungsten and tantalum, mined in Democratic Republic of the Congo and neighbouring countries. It was intended to help ensure that use of the minerals didn’t benefit armed groups responsible for violence in the region.

The appeals panel decision represents the second time courts have faulted regulators for carrying out a requirement of the 2010 Dodd-Frank Act. SEC Chair Mary Jo White said in October the goals of the Dodd-Frank disclosure mandates were laudable while questioning Congress’s decision to have her agency implement them.

The SEC’s authority to require disclosure of important information to investors shouldn’t be used to “effectuate social policy or political change,” Ms. White said. The requirement to disclose the information will cost thousands of companies as much as US$4-billion to put in effect, according to the SEC.

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Big ore find saved Timmins 50 years ago – by Jeff Labine (Timmins Daily Press – April 15, 2014)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Half a century ago, the Timmins economy faced possible collapse. The Hollinger gold mine, which had been operating since 1910, was on its last legs and there didn’t seem to be any suitable replacement to keep the economy flowing in the city.

Rumours started to spread about a possible ore discovery in the area, but few facts were known at the time. Texas Gulf Sulfur Company had made a discovery of a lifetime in November 1963 but the company kept that fact quiet for months.

The American-based company didn’t make the discovery public until April 16 1964. The Daily Press ran the news that the company had discovered more than 23 million tons of ore.

The Kidd Creek mine would become world-famous for its copper, zinc and silver deposits and also earn the distinction of being the deepest base metal mine in the world reaching depths as far down as 10,000 feet.

But trying to break that story was a difficult task for Gregory Reynolds, a reporter at the time for The Daily Press. He and a fellow reporter dogged miners and the higher-ups at Texas Gulf, trying to find someone who could confirm their suspicions that something big was going to happen.

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