Republic of Mining

In Japan, an LNG revolution looks to Canada – by Nathan VAnderklippe (Globe and Mail – January 21, 2014)

January 21, 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.

TOKYO — It’s winter, and the grass is struggling to take root on the roof of a cavernous new underground tank on the shores of Tokyo Bay. Workers completed the tank, with its thick insulating concrete walls and brilliant stainless steel inner liner, in October. Soon after, it accepted its first load of liquefied natural gas (LNG), chilled to -162 C.

From the ground, it’s all largely invisible: only a slight mound struggling to turn green hints at the enormous energy stored below. “Nobody finds it interesting because you can’t see the tank. It’s hidden,” says Kunijiro Taguchi, a lifetime employee of Tokyo Gas Co Ltd. who now serves as an energetic corporate tour guide.

But in world energy markets, this addition to the Tokyo Gas Ohgishima LNG Terminal – the largest tank of its kind – is an unambiguous signpost of the broad energy transformation under way in Japan. Nearly three years after the Fukushima nuclear disaster, Japan is only part-way through the work of preparing for a rush of new overseas energy imports, one that stands to see tankers filled with Canadian LNG among the 69 ships each year that pour out their cargoes at Ohgishima.

Klondike [mini-series] is lovely – just less than it could be – by John Doyle (Globe and Mail – January 20, 2014)

January 21, 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.

Pasadena, Calif. — It starts tonight. It’s Discovery’s first-ever scripted project, Klondike (Discovery Canada, 9 p.m.). And here’s how a Discovery executive described the making of it: “56 days, 9,000 feet above sea level, above the cloud cover, temperatures that dropped to almost 30 below zero for 16 hours straight, and raging rapids. For our cast and crew, that was a day on the job. This is Klondike.”

The six-hour, three-night miniseries (continuing Tuesday and Wednesday) is based on Charlotte Gray’s 2010 book, Gold Diggers: Striking It Rich in the Klondike. The guy in charge of the lavish adaptation is Ridley Scott. And there’s a stellar cast – Richard Madden from HBO’s Game of Thrones, Abbie Cornish, Tim Roth and Sam Shepard.

It’s good, entertaining and visually it is stunning. Just don’t look for premium-quality cable drama subtlety and nuance here.

As fine as it is, it seems like it was a quickie but eye-wateringly expensive production. Tim Roth was asked, “When you play a villain like this, do you do an elaborate backstory to justify how you behave?” To which he answered, “No!” And scoffed.

Canada: Mining And Aboriginal Consultation In The Yukon – by Roy Millen and Monika Sawicka (Mondaq.com – January 20, 2014)

January 21, 2014

http://www.mondaq.com/

Blake, Cassels & Graydon LLP

Mining and Aboriginal Peoples are both significant aspects of life in the Yukon. The territorial government recently amended its mining legislation to require consultation of Aboriginal Peoples before exploration programs are undertaken. The Yukon Supreme Court also recently quashed the government’s approval of a proposed mining exploration project. These legal developments provide a timely reminder of the importance of undertaking proper processes in developing, financing and acquiring projects in First Nations’ territory.

BACKGROUND

Mining in the Yukon is governed by the Placer Mining Act and the Quartz Mining Act. Both statutes have been amended in response to a December 2012 decision of the Yukon Court of Appeal in Ross River Dena Council v. Government of Yukon.

As described in our Blakes Bulletin: Duty to Consult Fosters Change to Yukon Mineral Claims Regime, the Court of Appeal held that the Yukon government’s open entry registration system for quartz mineral claims is subject to the Crown’s duty to consult with First Nations.

Gold junior wants government settlement after First Nation conflict – by staff (Northern Ontario Business – January 21, 2014)

January 21, 2014

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

A Sudbury-based junior mining company isn’t ruling out a settlement agreement with the province to relinquish its claims on its dormant gold properties in northwestern Ontario after a dispute with a First Nation community.

Northern Superior Resources is suing the Ontario government for $110 million for failing to consult with the Sachigo Lake First Nation after multiple disagreements with the band caused the company to abandon exploration on its mining claims in late 2011.

“I have no ambition to go to court,” said company president and CEO Tom Morris. “It serves no purpose to any party. But we do need to get this resolved.” The gold exploration outfit claims the company was hurt by the inaction of the Ontario government and wants compensation for the $15 million invested in exploration since 2005 as well as the estimated value of its three gold properties located near the Manitoba border.

Northern Superior filed a statement of claim with the Ontario Superior Court last October. The company accuses the province of failing to protect its interests in a remote area of Ontario that’s become a hotbed for First Nation-industry conflict in recent years.

Mining while female: The perils of Marikana – by Ilham Rawoot (Al Jazeera.com – January 20, 2014)

January 21, 2014

http://www.aljazeera.com/

Women miners in South Africa say they are often subjected to sexual harassment – and worse – while on the job.

Johannesburg, South Africa – It has been almost two years since 27-year-old Pinky Mosiane was raped and murdered hundreds of metres underground in an Anglo Platinum mineshaft in Marikana, South Africa.

A suspect in the Mosiane case was finally arrested three months ago. This was not the first time a woman mineworker had been raped underground in South Africa. But it was the first time that substantial attention was given to these women and the sexual harassment they are subjected to on a daily basis.

In August 2012, a mining town named Marikana, along the “Platinum Belt” in South Africa’s North West province, made headlines around the globe. Thirty-four mineworkers employed by platinum miner Lonmin were killed when police opened fire during a strike over wages.

But the women of Lonmin have often remained unnoticed. “Anne”, a miner employed by Lonmin in Marikana who asked that her real name not be used, has been working underground for three years fixing ventilation pipes. With her gold-painted nails and not a stray hair amid her tight braids, it is hard to imagine her labouring in overalls, covered in black dust.

Goldcorp never made ‘reasonable’ takeover proposal, Osisko says as it rejects hostile bid – by Peter Koven (National Post – January 21, 2014)

January 21, 2014

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

TORONTO – Osisko Mining Corp. has launched a war of words with hostile suitor Goldcorp Inc., saying it never received a “reasonable” offer from the gold mining giant.

As expected, Osisko formally rejected the $2.6-billion offer from Goldcorp on Monday. But what stood out most was Osisko’s interpretation of prior negotiations with Goldcorp.

Last week, Goldcorp revealed that it made three separate takeover offers for Montreal-based Osisko in 2008 and 2009, and claimed Osisko “continually” refused to entertain them. It also said that Osisko refused to hand over private information, even after the two sides signed a confidentiality agreement.

The implication was that Osisko’s board was acting entrenched and not giving shareholders the chance to evaluate bids. Osisko chief executive Sean Roosen offered a vastly different take on Monday. He claimed all three of the proposals were “value destructive” and came at a discount to the current share price.

The North’s resource boom: Is it prosperity or exploitation? – ‘ARCTIC CIRCLE’ PANEL (Globe and Mail – January 21, 2014)

January 21, 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.

Doug Saunders: In recent years, the North has taken on a new political and economic prominence in Canada. Will this create a new era of prosperity and independence for northern communities, or does it bring a risk of exploitation and damage to communities and environments?

Michael Byers: Despite the increased media attention, Canada lags far behind other Arctic countries in seizing the opportunities presented by rising resource prices and retreating sea ice. Russia generates more than 20 per cent of its GDP from the Arctic. Norway profits from being the world leader in the high-tech field of Arctic oil and gas. Iceland has turned itself into a global tourist destination. As for Canada, consider this: Despite having the longest coastline of any of the Arctic countries, our most northern port is at Churchill – in Manitoba. Balancing economic development, local governance and environmental protection will never be easy. But serious investments in infrastructure – including a port at Iqaluit, the capital of Nunavut – would be a good start.

Rob Huebert: The economics of the north have been fundamentally changing. The development of the diamond industry has already changed much of what happens in numerous aspects of the Northwest Territory.

Young changes his tune at last Canuck concert – by Ezra Levant (Toronto Sun – January 20, 2014)

January 21, 2014

http://www.torontosun.com/

Neil Young ended his Blame Canada tour in a bizarre way. At his last anti-oilsands concert in Calgary, he left his five diesel tour buses idling outside throughout the entire concert.

They kept burning fuel. “Bio-diesel,” we’re assured, trucked in from the U.S.A., so I guess that’s OK.

Inside the concert, Young did something even weirder. All week, he had been comparing the oilsands to Hiroshima, claiming it caused cancer, that there was no reclamation of the land afterwards, that it caused pollution in faraway China, etc.. But then on Sunday, he said he was fine with all of it — he could actually support the expansion of the oilsands — if “the First Nations treaties (are) honoured.”

Huh? So all that Hiroshima talk was just a bargaining chip to get some legal tinkering?

It’s uncertain what Young means by “honouring the treaties,” which happened to be the name of his concert tour. Actually, “Honor the Treaties” was the title of his tour. It was designed in California, and they don’t spell honour with a u down there.

The multibillion-dollar road map to B.C.’s coming LNG boom – by Peter Tertzakian (Globe and Mail – January 21, 2014)

January 21, 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.

In last week’s column, we looked out on the horizon of time and pointed out a wave of capital expenditures coming toward Canada’s oil and gas industry. Although we needed to squint for clarity, as there still is much uncertainty, we estimated that the spending crest could be as high as $16-billion a year within a few years.

When they arrive, most of these extraordinary dollars will be surging toward British Columbia’s fledgling liquefied natural gas (LNG) industry, a province where the status quo is only $6-billion of annual oil and gas spending.

Early hints of the wave are already being felt on the coast, especially Prince Rupert and Kitimat. Hoping for an empty airplane seat beside you? Forget it. Needing a place to stay? “No Vacancy” signs are lit up at the motels. Eating out? Steak houses have beefy waiting lists.

And the big dollars haven’t started to flow yet. That will happen when the head offices of leading multinational consortia rubber-stamp their final investment decisions (FIDs).

Report: China may use influence to soften Indonesia’s nickel ore ban – Frik Els (Mining.com – January 20, 2014)

January 20, 2014

http://www.mining.com/

Indonesia surprised the mining world little over a week ago putting into effect an outright ban on nickel ore exports, against expectations of a last-minute climb down by authorities.

Indonesia accounts for around a fifth of global supply at an estimated 400,000 tonnes of contained metal and the ban was seen as a potential game changer in the market for the steelmaking raw material..

Nickel prices have reacted in a fairly subdued manner however with three-month nickel on the LME last trading at $14,650 a tonne. That’s up around 7% since the ban was implemented, but a far cry from 2013’s high of $18,700 struck in February and still near levels last seen in 2009.

Global warehouse levels have risen sharply over the past two years – hitting a record 260,000 tonnes this year according to LME data – keeping prices subdued. Ample available metal and ore combined with a 20% rise in worlwide mining output since 2011 just as the market was moving into surplus.

New proposal could aid juniors and help even the playing field for small investors – by Alisha Hiyate (Mining Markets – January 14, 2014)

January 20, 2014

http://www.miningmarkets.ca/

Private placement financings may be opened up to non-accredited investors

With so little money flowing into the beaten-down junior mining sector, Canadian regulators are proposing to loosen the restrictions around private placement financings to allow regular joe investors to participate.

The proposal, which was published for comment on Nov. 21, lays out the case for opening up private placements to retail investors that already own shares in a company listed on the TSX Venture Exchange, subject to a limit of $15,000 per company each year.

The change would help to even out the playing field for small investors, who, at the moment, can only buy shares on the secondary market. Currently, participation in private placement financings are limited to accredited investors – meaning institutions or wealthy or sophisticated individuals.

Private placements, which are priced at a discount to market and often include a sweetener in the form of a warrant, have long been the dominant mode of financing for juniors because they do not require companies to do the expensive and time-consuming work of filing a prospectus.

Why Colombia halted a US company’s coal exports – by John Otis (Global Post – January 20, 2014)

January 20, 2014

http://www.globalpost.com/

Drummond Co. helped make Colombia the world’s No. 4 coal exporter. But after alleged dirty deeds, now Bogota’s punishing the Alabama firm.

BOGOTA, Colombia — By shipping 80,000 tons of coal per day, the Alabama-based Drummond Co. has helped turned Colombia into the world’s fourth largest coal exporter — but it’s always been a dirty business.

From Drummond’s Caribbean port near the resort city of Santa Marta, cranes loaded Drummond coal onto open-air barges for delivery to ships. This process kicked up coal dust that fouled the air, water and beaches, angering local fishermen, beachgoers, hotel owners and environmental activists.

But it all came to a halt Jan. 13 after the Colombian government ordered Drummond to stop loading coal until it meets new environmental standards. Under a Colombian law that took effect Jan. 1, coal must now be loaded directly onto ships via enclosed conveyor belts, a much cleaner system.

Duluth: Hearing on PolyMet mine project draws hundreds, for and against – by John Myers (Forum News Service – January 18, 2014)

January 20, 2014

http://www.twincities.com/

The main ballroom at the Duluth Entertainment Convention Center had 1,500 chairs set up Thursday night for the public hearing on the PolyMet copper mine project, and nearly all of them were taken.

Another 100 or so people stood along the back wall for more than two hours of public testimony on the so-called Supplemental Joint Environmental Impact Statement, the environmental review document.

The hearing, the first of three, was hosted by Minnesota Department of Natural Resources, the U.S. Army Corps of Engineers and the U.S. Forest Service — the regulatory agencies that ultimately will decide if the environmental review is officially “adequate” or not.

The audience appeared roughly split evenly, with half saying the science is sound and the project is ready to go ahead but half saying that too many questions loom unanswered.

PolyMet wants to build Minnesota’s first copper mining operation just north of Hoyt Lakes, an open pit mine and processing center that also would produce nickel, gold, platinum, palladium and other valuable minerals.

Coal mining, selenium, and the costs of toxic pollutants – by Mark Hume (Globe and Mail – January 20, 2014)

January 20, 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 — Sutton Lake, near Wilmington, North Carolina, isn’t a place many British Columbians have heard about. But it might not be long before it is cited in court documents here, because of a study that quantifies the cost of replacing fish killed by pollutants.

The 1,100-acre lake was created in 1971 on land owned by Duke Energy to cool water coming from the Sutton Steam Plant. To form the lake, the power company had to dam a creek, which the state government approved only on the condition the reservoir was developed as a public fishery.

The company agreed – and soon had created a place where the fishing was so good it became the focus of bass tournaments.

Sutton Lake, however, was also polluted with selenium leaching from coal ash stored in nearby waste pits. And that’s why Sutton Lake is relevant in Canada, where selenium pollution produced by coal, uranium and bitumen extraction is of growing concern.

Deep-sea mining could make ‘largest footprint of any single human activity on the planet’ – by Kevin Douglas Grant (Global Post – December 19, 2013)

January 20, 2014

http://www.globalpost.com/

Honolulu, Hawaii is emerging as a hub for a race to extract billions of dollars worth of minerals from the ocean floor. Modern technologies like cell phones, laptops, wind turbines and hybrid vehicles all require rare minerals, often difficult and expensive to extract from the earth.

As demand for these kinds of products surges globally and more accessible deposits of those minerals are depleted, Civil Beat reported Wednesday, countries around the world are flocking to Hawaii to explore a vast undersea area believed to contain massive mineral deposits worth hundreds of billions of dollars.

The area is called the Clarion-Clipperton Fracture Zone, and organizations from countries including Japan, Great Britain, Russia, South Korea, China, France, Germany and the US are now using Honolulu as a departure point for exploration. Though the zone is just one of several in the sights of deep-sea mineral industry pioneers, researchers involved believe it holds great promise.

Their expeditions are mapping parts of the zone about 500 miles southeast of Hawaii, which covers a total estimated area of 6 million total square miles.