Northern Gateway beats back ENGOs – by Peter Foster (National Post – December 20, 2013)

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

As expected, the Joint Review Panel of the National Energy Board and the Minister of the Environment gave provisional approval to Enbridge’s Northern Gateway pipeline on Thursday.

In political terms, that’s a necessary step, even if the government has the power to overrule the JRP. However JRP — or even Cabinet — approval is far from a guarantee that the line will be built.

Wednesday, Financial Post’s Claudia Cattaneo quoted a young man named Ben West, who declared “The Enbridge line will never be completed.” Who is Mr. West? And why should we care what he says? He is the Tar Sands Campaign Director of ForestEthics Advocacy, which is a subsidiary of San Francisco-based environmental NGO ForestEthics. According to his Web profile, he is “passionate” about “environmental justice, and ecological literacy,” and in his spare time is a “juggler, Twitter addict … and wannabe comedian.”

Mr. West is important because — despite his juggling and comedic aspirations — he is representative of a powerful radical minority that is intent on holding up development of the oil sands.

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Northern Gateway: A long way yet to cross the Pacific – by Globe and Mail Editorial (December 20, 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.

Let’s start at the beginning. Canada is producing more oil and gas than ever before, far more than can be used here at home. The long-running development of the Western Canadian oil patch is predicated on much of that resource being exported.

In the case of oil, growing quantities of it are moving by railway, but those virtual pipelines of tanker cars are generally not as safe or as efficient as actual pipelines. That’s why a series of pipe proposals are on the table, heading south, east and west. For Canada’s oil to get to markets at home and overseas, many of these pipelines must be built. The question is not “if.” It is where and how and under what environmental rules.

Which brings us to Enbridge Inc.’s Northern Gateway pipeline proposal. On Thursday afternoon, the federal joint review panel recommended that it be given the green light, subject to 209 conditions. The 1,178-kilometre project aims to move 525,000 barrels of crude from Alberta, across northern British Columbia to the port of Kitimat. It will then be put on tankers – about 220 a year – which will travel down the Douglas Channel and across the Pacific to Asia.

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Panel’s approval for Northern Gateway sets stage for PM’s pipeline battle – by Shawn McCarthy, Gloria Galloway and Brent Jang (Globe and Mail – December 20, 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 AND VANCOUVER — The National Energy Board has given a conditional green light to the Northern Gateway pipeline project, handing off to Prime Minister Stephen Harper a crucial decision that threatens to intensify aboriginal opposition and become a political flashpoint in the next federal election.

In a report Thursday, an NEB review panel recommended that Ottawa approve the $6.5-billion pipeline and crude supertanker terminal in Kitimat,. B.C., once the government and Enbridge Inc. have addressed the 209 environmental, safety and financial conditions set down by the panel. The pipeline would deliver 520,000 barrels a day of oil sands bitumen to the British Columbia coast, opening new markets for the Alberta-based oil industry.

“Opening Pacific Basin markets is important to the Canadian economy and society,” the panel said in a news release. “After weighing all the oral and written evidence, the panel found that Canada and Canadians would be better off with the Enbridge Northern Gateway project than without it.”

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Work begins on open pit – by Ron Grech (Timmins Daily Press – December 20, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Excavators and trucks have started moving earth and rocks around as construction begins on the Hollinger open-pit mine.

“We finally got our permits a couple of weeks ago, so construction is slowly beginning,” Marc Lauzier, general manager of Goldcorp Porcupine Gold Mines, told The Daily Press Thursday. “We’re actually just finishing up the roads now and the contractor who will be doing the overburden stripping is starting to mobilize.

“There may be a couple of drills drilling. We don’t expect to be blasting before mid to end of January. Initially, all we’re going to do is move some earth around … For the most part, it will look like a pretty regular construction project.”

The open-pit operation is expected to create about 60 new jobs. “We’re on a slow ramp-up. Right now we have the people we need, but over the next two or three months, I definitely expect we will start hiring people,” said Lauzier.

“We have about 120 who are already here and we will eventually have a total workforce of about 180. Certainly, over the next year, we will create probably 60 new positions but they won’t all happen in the first couple of months of the year. We will gradually build this up.

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Numsa will now recruit from mining sector, says Jim [South Africa mining unions conflict] – by Matuma Letsoalo (Mail and Guardian – December 18, 2013)

http://mg.co.za/ [Johannesburg, South Africa]

Numsa general secretary Irvin Jim has declared war on the National Union of Mineworkers, saying it will recruit openly in the mining industry.

National Union of Metalworkers of South Africa (Numsa) general secretary Irvin Jim has declared war on its sister union – the National Union of Mineworkers (NUM) – saying his union would now recruit openly in the mining industry and welcome NUM members who wanted to join Numsa.

In a move that is intended to appeal to the mining community, Numsa on Wednesday asked its members to donate anything from R100 towards the Marikana Trust, to support families of the 34 miners who were killed by police in August last year.

The NUM, which has been accused by workers of having close ties with mining companies, has lost thousands of workers to rival union Association of Mineworkers and Construction Union (Amcu). As a results of this, the union lost its prime status as Cosatu’s largest union to Numsa.

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NEWS RELEASE: MAC releases its 2013 Towards Sustainable Mining Progress Report

Click here for the report: http://www.mining.ca/www/media_lib/MAC_Documents/Publications/2013/TSM_Progress_Report/TSM-2013-english.pdf

OTTAWA, Dec. 20, 2013 /CNW/ – The Mining Association of Canada (MAC) has released its ninth annual Towards Sustainable Mining (TSM) Progress Report. The 2013 report takes a detailed look at MAC members’ 2012 performance in the initiative’s three focus areas – communities and people, environmental stewardship, and energy efficiency.

“This year’s TSM results have reinforced our confidence that TSM is taking the Canadian mining industry in the right direction,” said Pierre Gratton, MAC’s President and CEO. “When we first embarked on TSM, the membership set out to improve the environmental and social performance of Canada’s mining industry by implementing mandatory public reporting and third-party verification of performance against rigorous performance standards. Now, after nine years of applying TSM, MAC members can demonstrate significant, meaningful progress in key performance areas that Canadians can have confidence in.”

The 2013 TSM Progress Report takes a detailed look at MAC members’ efforts to contribute positively to the communities where they operate. The report includes facility-level results for 20 member companies of which five companies went through external verification. TSM is the only system in the world that includes public reporting of third-party assured site-level performance for the mining sector.

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OMA NEWS RELEASE: Let’s get going with Ontario safety review

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Minister of Labour Yasir Naqvi has announced the launch of a comprehensive mining safety review to further improve the health and well-being of mineral industry employees. Starting in 2014, Chief Prevention Officer George Gritziotis will lead an advisory panel of industry, labour and health and safety representatives to engage in a collaborative evidence-based review.

“This collaborative safety review follows up on recommendations from the Dean expert panel,” said Ontario Mining Association President Chris Hodgson. “Mining is one of the safest industries in the province and it has demonstrated steady and significant improvement in its safety performance for decades. This review can help sustain that improvement and move the industry closer to its goal of zero harm while helping to prepare for future growth and innovations.”

“Improving mine safety and making sure our miners go home to their families at the end of their shift is what this mining review is all about,” said Mr. Naqvi. “I know that all of our partners share this goal and recognize that it is time for a thorough, evidence-based review of mining safety across the province that will get meaningful results for miners and their families.”

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Bougainville mine: locals who oppose its re-opening must have a voice – by Antony Loewenstein (The Guardian – December 19, 2013)

http://www.theguardian.com/uk

Deference to Bougainvilleans must be the priority – a position that remains anathema to diplomats, politicians and insider media

The mine lies like a scar across a bloody face. Guava village sits in a remote area in Bougainville, Papua New Guinea (PNG), above a copper mine which closed 25 years ago. Resistance to the Rio Tinto-owned pit exploded in the late 1980s and during a recent visit, I got to stand above the massive hole that caused the crisis. Human rights abuses were rampant back then, with locals missing out on the financial spoils. Opposition to the enterprise was inevitable and necessary.

Run by Bougainville Copper Limited (BCL) from the 1970s, the Panguna mine spewed unprecedented amounts of pollution into the ground, water and atmosphere. It lingers to this day but nature has begun to reclaim its rightful place across kilometres of land, dipping its ferns, grass and lush green trees across oily and rusting equipment. Guava, with its 400 inhabitants, is a peaceful place up a steep rocky incline. During the rainy reason, clouds dance around unpredictably and the hot sun shines on the moist and muddy soil. From there, the view above Panguna is breath-taking, the scope of the environmental damage visible, and the lack of clean-up criminally negligent.

The Bougainville civil war, which was sparked by conflicts over the mine, lasted 10 years and cost the lives of up to 15,000 people. The PNG government blockade, comparable to that imposed on Saddam Hussein’s Iraq, caused immense suffering amongst the civilian population.

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Chrome, Cliffs and Fire: how Ontario’s Ring of Fire started burning for all the wrong reasons – by Razvan Isac (Global Business Reports Roundup – December 18, 2013)

http://gbroundup.com/

TORONTO, CANADA – The Ring of Fire, named so in honor of Johnny Cash’ famous country ballad, is a mineral rich region situated in Ontario’s deep north, approximately 540 km northeast of Thunder Bay. Containing chromite, nickel, copper, platinum, zinc and gold resources equating over $60 billion in value, it is even said that the Ring of Fire alone could sustain Ontario’s mining industry for a century. However, nothing as good as this comes easy in life, and this particular James Bay Lowlands area is no exception.

While several issues have been on the development agenda since the Ring of Fire’s discovery in 2007, the most controversial and complex ones so far have been the establishment of proper infrastructure and finding the appropriate formula for collaborating with the Matawa First Nations of the region. Given its scale and projected economic benefits, the Ring of Fire has certainly been a topic of high political interest for the last couple of years. However, on November the 20th, this subject became a fiery-hot topic that has since sparked several weeks of intense national media coverage and debate.

Cliffs Natural Resources, probably the largest private player with a stake in the region, announced on the 20th of November that it would be suspending its $3.3 billion Black Thor chromite project indefinitely. The company quoted project timeline uncertainties and the unresolved infrastructure issue as the main reasons for taking the decision. The announcement took the general public by surprise, and subsequently caused immediate and heated political debates, in which the likes of Ontario’s premier, Kathleen Wynne, and Ontario’s Minister of Northern Development and Mines, Michael Gravelle, were put in the spotlight. However, a closer look into the evolution of Cliffs Natural Resources’ Black Thor project developments in 2013 reveals plenty of early signs that this suspension was bound to happen.

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Canada: Québec Finally Adopts Its Reform Of The Mining Act – by François Paradis, Hugo-Pierre Gagnon and Sophie Amyot Osler, Hoskin & Harcourt LLP (Mondaq.com – December 19, 2013)

http://www.mondaq.com/

On December 10, 2013, Bill 70 – An Act to amend the Mining Act (Bill 70), tabled by the Minister of Natural Resources (the Minister) on December 5, 2013, was adopted by the Québec National Assembly. Bill 70 is the current government’s second attempt to reform Québec’s mining legislation after Bill 43, tabled in June and which sought to replace the existing Mining Act, was blocked by the opposition on October 30.

Bill 70 includes most of the changes proposed by Bill 43 (see our Osler Update of June 14, 2013, Plan Nord – Parti Québécois Advances Reform of Québec’s Mining Act) for the main provisions of Bill 43); however, in order to obtain the opposition parties’ support, the government had to make certain concessions, discussed below, on important aspects of the bill.

Conditions for granting a mining lease

First, with respect to the conditions for granting a mining lease, the ore processing feasibility study proposed in Bill 43 and which mining investors viewed as a major irritant, has been replaced by a scoping and market study, expected to be both less costly and less time consuming.

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BHP to close Perseverance nickel mine – by Oliver Probert (Australian Journal of Mining – December 19, 2013)

http://www.theajmonline.com.au/

BHP has ceased operations at its Perseverance mine in Leinster, WA, after the mine was shut following seismic activity in October.

Perseverance was closed on October 31 this year, after nine miners were trapped following a 3.7 magnitude earthquake. All nine were returned to the surface safely, and there were no injuries reported.

After further investigation, BHP has decided to formally cease operations at Perseverance, but will continue to maintain the underground mine – leaving the door open for the potential re-opening of the mine down the track.

BHP’s Leinster operations are part of its Nickel West business unit. “Since the [seismic] event, Nickel West technical and operational teams, supported by independent experts, have been assessing the technical data and risks on the sub-level cave operations and all the options available,” BHP said on Tuesday.

“Following this analysis BHP Billiton has decided it is unable to safely resume operations in the sub-level cave at Perseverance mine.”

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Australian bauxite miners are pinning their hopes on a new market in China – by Kathryn Diss (Australian Broadcasting Corporation – December 19, 2013)

http://www.abc.net.au/news/

Australian bauxite miners are pinning their hopes on a turnaround in the struggling industry, with a new market likely to open up in China.

Indonesia has long satisfied China’s growing hunger for bauxite to feed its aluminium smelters, which has prevented Australian companies from entering the market.

Now that might change, with Indonesia expected to endorse tough, new restrictions on exports from January. Peter Kopetz from Stockbroking agency State One Capital says he has been closely watching the bauxite price increase in recent months.

“Some of the projects which maybe were marginal beforehand are becoming more economic as the price goes up and we’ve seen a gradual price increase over the last 12, 24 months and we see that continuing,” he said.

“There’s a push for Australia to become a more prominent player in the bauxite industry; we’ve got the quality, we’re close to China and of course we can supply long-term the raw materials to whatever china needs.”

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COLUMN-China’s 2014 commodity demand subject to policy influences – by Clyde Russell (Reuters U.K. – December 19, 2013)

http://uk.reuters.com/

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

LAUNCESTON, Australia, Dec 19 (Reuters) – China’s commodity demand has been lumpy this year, with weakness in crude oil and copper being offset by robust gains in iron ore and coal, and this pattern is likely to continue into next year.

However, the relative winners may change. Much will depend on the track of economic reforms and how much success the world’s largest commodity user has in rotating its economy to be more consumer-led.

China’s official target for gross domestic product growth was 7.5 percent for 2013, and while the target for next year has not yet been announced, it’s likely to be maintained or perhaps lowered slightly. But more important than the overall target for GDP is how the growth is achieved.

The pattern for the past two years has been that China’s economy has seen momentum losses in the key industrial sector, followed by a re-acceleration in growth as policies are implemented to boost infrastructure and construction investment.

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Indonesia to Study Rules for Miners With Smelters as Ban Looms – by Yoga Rusmana and Agus Suhana (Bloomberg News – December 19, 2013)

http://www.bloomberg.com/

Indonesia, the world’s largest mined nickel producer, will study rules for mining companies operating smelters as a ban on mineral-ore shipments nears, said Coordinating Minister for the Economy Hatta Rajasa.

The government will seek legal advice on the regulations as interpretations differ, Rajasa said today. The law that bans shipments must be fully implemented and companies that don’t have smelters will have to comply, he said.

Freeport-McMoRan Copper & Gold Inc. (FCX), owner of the world’s second-biggest copper mine at Grasberg, said last week it intends to abide by the terms of its contract of work, which allow it to operate the mine and export concentrate. Indonesia is seeking to boost the value of shipments by promoting local processing and is set to prohibit all ore exports after Jan. 12.

“We will look at regulations but they cannot contradict the law,” Rajasa told reporters in Jakarta. “We must pay attention to business concerns.”

Three-month nickel advanced 0.2 percent to $14,165 a metric ton on the London Metal Exchange at 8:39 p.m. in Singapore.

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Go short gold, long nickel – Barclays – by Geoff Candy (Mineweb.com – December 19, 2013)

http://www.mineweb.com/

The bank expects 2014 to be another tough year for commodities but sees good things to come from a move out of structural surplus.

GRONINGEN (MINEWEB) – 2014 is likely to be another difficult year for Commodities, writes Barclays, in a note out earlier this week. But, it expects base metals to out perform both oil and precious metals in the early parts of the year.

The main reasons for this are twofold. Firstly, on the base metals side, Barclays expects 2014 to mark the end of a period of structural surplus that has afflicted base metal markets to a greater or lesser degree since 2007/2008.

“Markets such as aluminium and lead are expected to move into deficit, while surpluses in nickel and zinc are likely to shrink dramatically. Even in copper, the one exception, where we expect supply to grow faster than demand, the surplus next year is likely to be very modest indeed,” the bank writes.

This, Barclays says is primarily a result of an acceleration in demand growth that is currently running at an annualised rate of around 8%, which it points out is double the level of the first quarter of 2013.

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