Republic of Mining

Ontario backs away from plans to buy new nuclear reactors – by Adam Radwanski (Globe and Mail – October 10, 2013)

October 10, 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.

Ontario’s government will shelve plans for a major new investment in nuclear power, according to industry and government sources.

Kathleen Wynne’s Liberals have decided against spending upwards of $10-billion to buy two new nuclear reactors as had been planned when Dalton McGuinty was premier, and will commit only to refurbishing existing ones, the sources told The Globe and Mail.

The decision appears to be the latest blow to the nuclear industry, which is already facing a decline in international demand, safety concerns after 2011’s earthquake-induced meltdown at Japan’s Fukushima plant, and the emergence of comparatively cheap natural gas. As the most nuclear-reliant province in Canada and the only one with plans to acquire new reactors, Ontario had been held up as a source of hope for prospective builders, including Candu Energy Inc., the once-mighty division of Atomic Energy of Canada Limited that is now a subsidiary of SNC-Lavalin.

As a result of the change in plans, nuclear power – which accounted for 56 per cent of Ontario’s total energy supply in 2012 – could end up with a somewhat smaller share of the supply mix. At the same time, the decision reflects stagnant demand due largely to the struggles of the province’s manufacturing sector.

The true price tag of McGuinty’s green fantasy – by Margaret Wente (Globe and Mail – October 10, 2013)

October 10, 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.

A year ago, a critic of Dalton McGuinty’s Ontario energy policy speculated that the government’s decision to cancel a couple of unpopular gas plants just before the 2011 election – a transparent ploy to win votes – would wind up costing taxpayers upward of a billion dollars. Mr. McGuinty, who had already announced plans to resign as premier, angrily denied it. “I fully reject that calculation,” he said. “We’re very confident that the costs are in total $230-million. We’ve released all of the documentation.”

On Tuesday, Ontario’s Auditor-General weighed in with her verdict: The gas plants could wind up costing more than $1-billion. Mr. McGuinty was wrong. But so what? It worked. Five crucial ridings went Liberal and the government hung on to power. In my unscientific reckoning, the price of victory was about $90,000 a vote. People are mad as hell, but who are they supposed to draw and quarter? The guilty party has left the room and his successor, Kathleen Wynne, says she’s very, very sorry.

The true price tag of Mr. McGuinty’s energy shenanigans is actually much higher still. The gas plants were just the last chapter in the amazing saga of political manipulation of energy under Mr. McGuinty.

NEWS RELEASE: Danger Ahead For The Ring of Fire

October 10, 2013

For the full report, click here: http://www.eco.on.ca/uploads/Reports-Annual/2012_13/13ar.pdf

Toronto, Oct 10, 2013 – Ontario’s Environmental Commissioner warns that the Ontario government is risking irreversible damage to wildlife and wilderness by considering major industrial development in the Far North before research is done and environmental protections are put in place. The Far North covers 450,000 km2 in Ontario and includes part of the largest block of boreal forest in the world.

In his 2012/2013 Annual Report, “Serving the Public”, Gord Miller says more than 20 companies have filed mining claims for significant deposits of chromite, nickel, copper, zinc and gold in the Ring of Fire area of Ontario’s Far North.

“The government’s long-held rule,” says Miller, “has been to establish planning controls before projects can be built. But infrastructure such as highways and transmission corridors are already on the drawing board in the Ring of Fire, and there’s been little analysis or public debate of their effect on the environment or their benefits for First Nations.”

NEWS RELEASE: Cliffs Appeals Mining and Lands Commissioner Dismissal of Easement Application to Build Road on KWG Claims

October 9, 2013

TORONTO, ONTARIO–(Oct. 9, 2013) – Counsel for KWG Resources Inc. (TSX VENTURE:KWG) (“KWG”) has been served with a Notice of Appeal on behalf of the Cliffs Natural Resources Inc. subsidiary (“Cliffs”) that recently lost its application to the Mining and Lands Commission.

Cliffs had sought an Order to dispense with the consent of KWG for the granting of an easement to Cliffs over mining claims previously staked and assessed by KWG. In a decision released on September 10, 2013 the Mining and Lands Commission dismissed the application.

About KWG: KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite deposit. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Northern Summit vital for growth – by Wayne Snider (Timmins Daily Press – October 8, 2013)

October 9, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Northern Ontario is facing numerous challenges which impact our potential for economic development.

Given the price being fetched by mining commodities (anyone remember 15 years ago when the price of gold was under $300 an ounce?) and the likely resurgence of the lumber industry in the coming years, — due to the predicted rebound of the U.S. housing market — Northern Ontario has the potential to be booming.

This is why it is vital for the provincial government to come to the table for a Northern Summit, as requested collectively by the mayors from the North’s largest cities.

In the summer, Timmins Mayor Tom Laughren was involved with a group of Northern mayors to present a new document — Northern Priorities — to the premier and cabinet ministers. Northern Priorities attempts to assist the government in linking municipalities with its Northern Growth Plan.

“We had asked in our document within 90 days of our presentation, which was mid-August, to have a Northern Summit,” Laughren said. “They were very receptive … (and) would try to have this summit and their participation would be before Jan. 1.”

Special Report: The Darfur conflict’s deadly gold rush – by By Ulf Laessing (Reuters India – October 8, 2013)

October 9, 2013

http://in.reuters.com/

KHARTOUM – (Reuters) – With its scrubland, unpaved roads and mud brick huts, the Jebel Amer area in Darfur, western Sudan, can look like a poor and desolate place. Under the ground, though, lies something sought by people everywhere: gold.

In the past year or so the precious metal has begun to alter the nature of the decade-old conflict in Darfur, transforming it from an ethnic and political fight to one that, at least in part, is over precious metal.

Fighting between rival tribes over the Jebel Amer gold mine that stretches for some 10 km (six miles) beneath the sandy hills of North Darfur has killed more than 800 people and displaced some 150,000 others since January. Arab tribes, once heavily armed by the government to suppress insurgents, have turned their guns on each other to get their hands on the mines. Rebel groups that oppose the government also want the metal.

The gold mine death toll is more than double the number of all people killed by fighting between the army, rebels and rival tribes in Darfur in 2012, according to U.N. Secretary General Ban Ki-moon’s quarterly reports to the Security Council.

Spying allegations throw cold water on Canada’s trade and business plans in Brazil – by Stephanie Nolen (Globe and Mail – October 9, 2013)

October 9, 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.

Rio de Janeiro — All of Canada’s negotiations and new ventures with Brazil may be put on ice until there is a resolution to the question of what a Canadian spy agency was doing snooping on one of the South American country’s ministries, says a leading Brazilian expert on relations with North America.

“If they take the same position with Canada as they took with the United States [after similar revelations of spying last month] then everything will be stopped, all the major things,” said Rubens Barbosa, a former Brazilian ambassador to the United States. “The agreements, anything to do with government and the U.S., was put on hold and is still on hold and they may take the same view with Canada.”

n Sunday, the Brazilian news program Fantastico made public documents from the trove acquired by Edward Snowden, a former contractor with the U.S. National Security Agency (NSA). They included a slide presentation that appears to show that Communications Security Establishment Canada (CSEC) was surveying the telecommunications of the Brazilian Ministry of Mines and Energy – a revelation that has sparked outrage here.

NEWS RELEASE: [Liberal] MAURO TO INTRODUCE BILL FOR RETURN OF ONTARIO’S SPRING BEAR HUNT

October 9, 2013

October 8th, 2013

(Queen’s Park) – Today, Bill Mauro, MPP Thunder Bay-Atikokan, introduced a Private Member’s Bill that, if passed, will bring about the return of Ontario’s Spring Bear Hunt.

The bill would introduce an open season from April 15th to June 15th.

The re-introduction of the hunt would:
• Reduce the likelihood that aggressive bear activity will result in physical harm or death to people in Ontario;
• Help protect crops and livestock;
• Reduce bears’ impact on bees — between the years 2000 and 2008, black bears reportedly destroyed over 4,000 beehives/colonies;
• Boost Northern Ontario’s moose population by reducing the number of moose calves killed by bears;
• Increase tourist activity in Northern Ontario.

Mauro has indicated that he is open to the introduction of measures that would reduce the likelihood that female bears are killed during a Spring Bear Hunt.

Fitting the Ring [of Fire] – Thunder Bay Chronile-Journal Editorial (October 8, 2013)

October 9, 2013

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

IN declaring that the Ring of Fire mining belt is not a “magic bullet” for surrounding First Nations poverty, Bob Rae is not pouring cold water on the prospect of prosperity. Instead, the former politician hired to negotiate involvement of nine Matawa tribal council bands is confirming what needs doing to make the most of it. Mining riches will not simply “trickle down” to reserves, he told a Toronto conference. Rather, improved education, job training tailored to mining and better governance are essential.

If this sounds familiar, it still bears repeating. Some First Nations have jumped into mutually beneficial agreements with mining companies. Others remain wary, fearing a lop-sided sharing of spoils from a deposit of chromite and other minerals worth billions. First Nations and many Canadians have environmental concerns.

Apprehension is understandable given the North’s resource history of enriching companies while often ignoring First Nations.

Gradually, Canada’s approach has changed with court rulings that specify the need for consultation first. As Northern Development and Mines Minister Michael Gravelle put it in an interview with Mining Weekly Online, “What we’re talking about is a smart, sustainable and collaborative development” that brings “multigenerational value.”

The banality of billion-dollar boondoggles – by Martin Regg Cohn (Toronto Star – October 9, 2013)

October 9, 2013

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

What’s a billion dollars? It’s a bonfire of insanity — big money going up in smoke to cancel two gas-fired power plants.

To read the latest damning report from the independent auditor general’s office is to weep. In clinical, actuarial language, it exposes the costly blunders that brought down Dalton McGuinty and now weigh down his successor as premier, Kathleen Wynne — with taxpayers and ratepayers paying for their mistakes.

By deconstructing those cancellation costs, the auditor general’s office has come up with a bracing figure of $1.1 billion (plus or minus) that raises the political stakes:

Brace yourself for endless “billion-dollar-boondoggle” sound bites from the opposition. But beyond the alliteration, it’s an illustration of a home-grown Greek tragedy — borne of political hubris and human miscalculations.

Power plant cancellations could cost $1.1B: Auditor general – by Richard J. Brennan and Robert Benzie (Toronto Star – October 9, 2013)

October 9, 2013

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

It could cost Ontario taxpayers up to $1.1 billion to scrap two gas plants in Oakville and Mississauga so the Liberals could save five seats in the 2011 election.

Premier Kathleen Wynne admitted it was a “big . . . bad mistake” to scrap power plants in Oakville and Mississauga after a report by Ontario’s financial watchdog found taxpayers are on the hook for up to $1.1 billion.

That number was the startling tally Tuesday from auditor general Bonnie Lysyk in a long-awaited report on the price tag for scuttling the Oakville generating station three years ago — the first of two cancellations to save five Liberal seats in the 2011 election.

Lysyk concluded the tab for cancelling Oakville and relocating the plant to Napanee could skyrocket to $815 million — dramatically more than the $310 million the Ontario Power Authority had estimated and exponentially higher than the $40 million the Grits initially claimed.

NEWS RELEASE: RETRANSMISSION: Champion is Pleased With Quebec Government’s Announcement of A Pre-Feasibility Study for A Third Railway Under Their Economic Policy

October 8, 2013

TORONTO, ONTARIO–(Marketwired – Oct. 8, 2013) – CHAMPION IRON MINES LIMITED (TSX:CHM)(OTCQX:CPMNF)(FRANKFURT:P02) (“Champion” or the “Company”) is pleased to comment on today’s announcement by the Quebec Government Economic Policy regarding the initiation of a pre-feasibility study for a third railway to transport iron ore from the Labrador Trough.

The announcement by the Quebec Government is as follows:

“As part of a vision for responsible development of northern infrastructures that are essential to ensuring the economic and social development of the northern territory.

The government is completing them, while ensuring the risk is shared among all the partners in question. The government will include the First Nations and Inuit in discussions concerning the North for all.

As part of Québec’s Economic Policy – Putting Jobs First, the government has announced investments including the following, a Pre-Feasibility study regarding the construction of a new railway link.

Ring of Fire junior wins strategic victory – by Ian Ross (Northern Ontario Business – October 8, 2013)

October 8, 2013

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

Frank Smeenk didn’t want to use the opportunity to gloat. “It’s important not to do that publicly,” chuckled the CEO of KWG Resources. The Toronto junior miner’s bitter rival in the Ring of Fire exploration camp, Cliffs Natural Resources, was dealt a blow last month in gaining road access to its Ring of Fire chromite projects.

Ontario’s Mining and Lands Commissioner ruled against the Ohio-based mining giant, which had been seeking an easement to cross the mining claims of KWG in order to build an ore haul road out of its deposits in the James Bay region.

In a ruling released Sept. 10, the tribunal ruled that granting an easement to Cliffs would interfere with KWG’s ability to work its claims since “numerous heavy trucks (passing) every day” would cover up future drilling and sampling sites.

“It’s extremely material,” said Smeenk of the commissioner’s office ruling. “There couldn’t be any more material information for the owners of KWG.” KWG has a 30 per cent ownership stake in the Big Daddy chromite deposit with Cliffs, but the junior miner holds a strategic piece of ground.

Boart Longyear focused on weathering cyclic storm, building on lessons learnt – by Henry Lazenby (MiningWeekly.com – October 8, 2013)

October 8, 2013

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – The world’s largest drilling company, Boart Longyear, has positioned itself to weather the difficult markets and emerge a leaner, more efficient company that had taken to heart lessons learnt in its recent overleveraged past.

CEO Richard O’Brien said the company was now positioned to perform better with its significantly reduced cost footprint.

“The plan is to keep the costs permanently off the balance sheet, even in the event of a rebound in market conditions,” O’Brien, who joined Boart Longyear this year from gold mining giant Newmont Mining, told Mining Weekly Online in an interview on Monday.

He blamed over-enthusiastic outlook assumptions for the debt blowout and spending that left the company exposed to the recent downturn. The Utah-based and Australia-listed company had last month finalised issuing $300-million in senior secured notes to retire most of its $450-million in debt.

Despite the newly issued notes bearing a 10% coupon, the debt restructuring would give Boart at least some relief from debt covenants that had cast an uncertain shadow over its immediate future.