Obama’s pragmatist side wins out in Keystone comments – by John Ivison (National Post – June 26, 2013)

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

Barack Obama downplayed any thoughts that his new climate change action plan is a straight choice between “the health of our children and the health of the economy.”

But it wasn’t just the 33 degree heat that made him wipe his brow continually. This was a defining moment in his presidency — a speech where he made clear he is a firm believer in man-made climate change and intends to match his lofty rhetoric with regulatory action.

What to make of Mr. Obama’s plan from a Canadian perspective? The president was as inscrutable as providence when he talked about whether or not he plans to approve the Keystone pipeline that would carry Canadian crude from the oil sands to refineries on the Gulf Coast.

Mr. Obama made it clear he intends to take on the coal-generated power station industry, which accounts for 40% of the greenhouse gases produced in the United States. He said there are currently no limits to how much carbon dioxide power plants can emit — “It’s not right, not safe and it needs to stop,” he said. This is the president’s big target: four coal-fired power stations in the U.S. owned by one company generate 60% more CO2 than the entire oil sands.

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Gas plants controversy: Dalton McGuinty says Liberals made right decision – by Richard J. Brennan (Toronto Star – June 26, 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.

Information and Privacy Commissioner Ann Cavoukian appeared before a legislative committee probing the government’s decision to cancel power plants in Oakville and Mississauga.

Former premier Dalton McGuinty is unrepentant about the controversial decision to cancel two gas plants, lashing out at his critics for being hyper-partisan and interested only in the demise of the Liberal party.

McGuinty, who appeared Tuesday before a legislative committee probing the cancellations, said he regretted “that it ended up costing as much as it does, but ultimately it is the right decision.”

Despite his sometimes combative defence of his political legacy, McGuinty admitted “we failed as a government” on document retention training. He was referring to Information and Privacy Commission Ann Cavoukian’s finding that top Liberal political staffers destroyed emails and documents contrary to the Archives and Recordkeeping Act.

“I’m calling it the way I see it . . . there is no genuine effort here on the part of the opposition committee members to seek out the truth,” he later told reporters, emphasizing that he’s “not sure Ontarians understand the real complexion” of a committee dominated by the opposition and focused on embarrassing the Liberals.

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PRECIOUS-Gold heads for biggest quarterly loss on record – by Jan Harvey (Reuters U.S. – June 26, 2013)

http://www.reuters.com/

LONDON, June 26 (Reuters) – Gold fell to its lowest in almost three years on Wednesday, putting it on course for a record quarterly loss, as U.S. economic data increased fears the Federal Reserve will soon end ultra-loose monetary policy.

Prices could slide further – some investors saying below $1,000 per ounce – while there is little potential for data, market trends or economic developments in the United States or Europe to reverse an accelerating investor move out of gold.

Spot gold tumbled to its lowest since August 2010 at $1,223.54 an ounce and was down 3.8 percent at $1,227.86 an ounce at 1032 GMT. U.S. gold futures for August delivery were down $47.60 at $1,227.90, having hit a low of $1,223.20.

Strong gains in U.S. orders for durable goods, the largest annual rise in house prices in seven years and rising consumer confidence fuelled speculation the Fed would rein in its $85 billion monthly bond-buying programme, which had helped push gold prices to record highs in recent years.

“We bought gold for two reasons – because we were worried about the inflationary impact of policy and because we thought the financial system was going to fall apart,” Sean Corrigan, chief investment strategist at Diapason Commodities Management, said.

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Vancouver mining firm Barkerville admits big error in British Columbia field’s gold estimate – by Peter Koven (Vancouver Sun – June 25, 2013)

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

Frank Callaghan admits it: telling investors his company held 10.6 million ounces of contained gold last year was a big mistake. “I’ve learned that lesson. Not a nice way to learn it by the way, but I did,” the chief executive of Barkerville Gold Mines Ltd. said.

Almost a year ago, Barkerville, a small junior mining company, stunned the mining community by stating its Cow Mountain project in British Columbia had an indicated resource of 10.6 million ounces of gold, and could hold up to 90 million ounces. Barkerville shares soared even though numerous experts thought the numbers were too good to be true.

One of the biggest skeptics was the British Columbia Securities Commission (BCSC). The regulator promptly cease traded the stock and voiced many concerns about how the data was compiled.

That put pressure on both Barkerville and Peter George, the independent geologist who calculated the resource. To address the BCSC’s concerns, Barkerville hired two consulting firms (Snowden Mining Industry Consultants and Apex Geoscience) to work with Mr. George on an updated resource estimate.

It took a long time, but they have finally finished their work. The new numbers are significantly lower, but in Mr. Callaghan’s view they prove Mr. George was on the right track.

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Rae in great position to influence Ring of Fire – by John R. Hunt (Sudbury Star – June 26, 2013)

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

Bob Rae is quitting federal politics, but in his new role he may exercise considerable influence upon the future of Northern Ontario. His resignation as MP has sparked a flood of superlatives.

Rae has been called the best prime minister Canada never had and the worst Ontario premier the province ever had. He remains untouched by personal scandal. A political celebrity with friendly contacts in many powerful places.

He is giving up a lot to become a negotiator for the First Nations in the Ring of Fire mining region. According to some reports, he will be negotiating on behalf of as many as nine First Nations. Presumably, native peoples will want a share of the wealth generated by new mines and as many jobs as possible.

Usually, politicians are only influenced by votes or potential votes. Rae will be representing a miniscule percentage of the Ontario population, but he will have both moral authority and a large degree of public support.

The residential schools scandal and the deplorable conditions reported on many reserves have given Canadians a collective guilty conscience that will demand a square deal for the natives in the Ring of Fire.

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Canaccord likens the late 90s downturn to ongoing junior dump – by Kip Keen (Mineweb.com – June 25, 2013)

http://www.mineweb.com/

Canaccord turns back the clock to look at dark times past for the junior sector, finding similarities between today’s market decline and the 1990s.

HALIFAX, NS (MINEWEB) – Canaccord Genuity casts its gaze back on junior sector downturns past to find context in the current, now two-year long rout in junior equities in its most recent Junior Mining Weekly report. As has been noted in these pages, that means skipping over the quick 2008-2009 financial crisis, when juniors rose about as quickly as they fell, to the crumbling junior market in the late 1990s.

“The drop in the TSX Venture harkens back to the 1995-2000 period where it fell (70-75%) from peak to trough over a plus 40-month time frame,” Canaccord noted, referring to the TSX Venture’s precursor, the Vancouver Stock Exchange. Canaccord notes the Venture has so far dropped about 65 percent in 29 months since it started going south, in serious, in 2011. This is more drawn out that the 2008-2009 crash and in profile reminds Canaccord of the late nineties downturn.

Adding some context here Cannacord draws on a veritable list of fear factors that some may rather have forgotten: “This period enveloped the Asian financial crisis (1997), which included Thailand, Indonesia and South Korea, the U.S. dot-com technology bubble (1997-2000), the LongTerm Capital Management hedge fund bailout (1998), Russian debt default (1997-1998) and the Brazilian financial crisis (1994-1999), not to mention the Bre-X Minerals scandal (1996-1997) that tainted investors’ confidence in the junior mining sector.”

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Obama buys more wiggle room on Keystone decision – by Claudia Cattaneo (National Post – June 26, 2013)

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

In announcing his plan to restrain climate change Tuesday, United States President Barack Obama effectively named his price for approving the Keystone XL pipeline: no net increase in greenhouse gas emissions.

The surprise reference to the Canadian project was made in a speech at Washington’s Georgetown University, where he announced long-expected mandatory reductions of greenhouse gas emissions by operators of power plants, the biggest single source in the U.S., while continuing to promote green energy.

“This does not mean we are going to suddenly stop producing fossil fuels,” Mr. Obama added. “But our energy strategy must be about more than just producing more oil. And by the way, it’s certainly got to be more than just building one pipeline.

“I know there has been, for example, a lot of controversy around the proposal to build the pipeline, the Keystone pipeline, that would carry oil from Canadian tar sands down to refineries in the Gulf and the State Department is going through the final stages of evaluating the proposal. That’s how it’s always been done.

“But I do want to be clear. Allowing the Keystone pipeline to be built requires a finding that doing so would be in our nation’s interest. And our national interest will be served only if this project does not significantly exacerbate the problem of carbon pollution.

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Goldcorp – Marlin Mine: Special focus – by Will Daynes (BE Mining – June 7, 2013)

http://www.bus-ex.com/

Sustainable opportunities

While Guatemala’s enormous mining wealth is no longer the well-kept secret that it once was it is still an industry very much in its infancy. Through its Marlin Mine operations, Montana Exploradora de Guatemala, a subsidiary of the Canadian firm Goldcorp, is working to ensure the country will soon be able to unlock its potential.

Possessing a land mass of almost 109,000 square kilometres, the Central America country of Guatemala shares its borders with Mexico, Belize, Honduras and El Salvador, as well as the Pacific coastline to the Southwest and a part of the Caribbean coastline to the east.

Boasting a diverse history, a rich and distinctive culture, and areas of immense natural beauty, Guatemala has, in more recent times, become just as well known for its enormous gold potential. Indeed in 2007 one mine alone processed some 1.7 million tonnes of mineral with an average gold content of 4.55 grams per tonne and 84.31 grams of silver per tonne, further confirming the country as a mining destination of particular interest.

Possessing a stable, macroeconomic backdrop, Guatemala is fast earning a reputation as having perhaps the greatest future mining potential of any Central American country. Other factors that are helping to attract the interest of international investors include the free movement of goods and trade, and a local labour force with a reputation for being hard working, fast learners.

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Oh, Canada: How America’s friendly northern neighbour became a rogue, reckless petrostate – by Andrew Nikiforuk (Foreign Policy Magazine – July/August 2013)

http://www.foreignpolicy.com/

Andrew Nikiforuk is contributing editor to the Tyee, a Canadian online newspaper, and author of Tar Sands: Dirty Oil and the Future of a Continent.

For decades, the world has thought of Canada as America’s friendly northern neighbor — a responsible, earnest, if somewhat boring, land of hockey fans and single-payer health care. On the big issues, it has long played the global Boy Scout, reliably providing moral leadership on everything from ozone protection to land-mine eradication to gay rights. The late novelist Douglas Adams once quipped that if the United States often behaved like a belligerent teenage boy, Canada was an intelligent woman in her mid-30s. Basically, Canada has been the United States — not as it is, but as it should be.

But a dark secret lurks in the northern forests. Over the last decade, Canada has not so quietly become an international mining center and a rogue petrostate. It’s no longer America’s better half, but a dystopian vision of the continent’s energy-soaked future.

That’s right: The good neighbor has banked its economy on the cursed elixir of political dysfunction — oil. Flush with visions of becoming a global energy superpower, Canada’s government has taken up with pipeline evangelists, petroleum bullies, and climate change skeptics. Turns out the Boy Scout’s not just hooked on junk crude — he’s become a pusher. And that’s not even the worst of it.

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Hail to the New Province of ‘Noront’ [Northern Ontario separation] – by Joe Lascelles (Highgrader – Summer 2013)

http://www.highgradermagazine.com/

HighGrader Magazine is committed to serve the interests of northerners by bringing the issues, concerns and culture of the north to the world through the writings and art of award-winning journalists as well as talented freelance artists, writers and photographers.

Having been raped, robbed, screwed over from the beginning of Confederation, the Northern region of Ontario has had enough and we will not take it anymore. We will no longer let those feudal lords (Southern Ontario politicians) dictate how much they will leave Northerners to eat as they carry away our resources, all to fatten the coffers and the members of Government, to be spent almost exclusively in Southern Ontario.

For years, decisions for Northern Ontario have been made in Toronto by Southern politicians who, it might be said, have not bothered to even come to see how we live, see what we do for entertainment and how deep and numerous our potholes are. Southern Ontarians take as truth the Stompin’ Tom Connors ditty that Sudbury women play Bingo and the men all get stinko on a Sudbury Saturday night.

For all they think of us, most Northerners now have oil stoves to heat up our igloos. We can now cook up our seal blubber before eating it. Timmins? That’s really the North Pole isn’t it? Cochrane? Oh yes, they know something of Cochrane because they have polar bears roaming around the Esquimo village.

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Codelco: The copper conductor – by John O’Hanlon (BE Mining – February 27, 2013)

http://www.bus-ex.com/

Copper fundamentals are highly buoyant. Demand for copper is increasing at over half a million tones annually, most of it driven by China, which consumes 20 percen of global supply. Demand for copper shows no sign of levelling off in the opinion of researchers at Yale, who calculated from 2006 consumption figures that global demand for copper would exceed the amount extractable from the ground by 2100.

Codelco (Corporación Nacional del Cobre de Chile or the National Copper Corporation of Chile) was founded in 1976, five years after the Chilean government nationalized the entire copper mining industry. Codelco grouped the existing deposits into a single mining, industrial and commercial corporation and today it is the biggest copper producer in the world controlling a tenth of known global reserves.

Codelco has more than $20.835 billion in assets and in 2011 its equity totalled $6.065 billion. In the same year the company produced 1.79 million metric tons of refined copper – over ten percent of world copper production. And at today’s investment levels it estimates it has the capacity to maintain current production rates for a further 70 years at least.

But that can’t be done without strategic investment, and a number of specific projects are being targeted. The Andina Division is located at 3,000 metres above sea level a little to the north of the Chilean capital Santiago and at the base of the chain of operations that is strung out along the Andes in the northern half of Chile.

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Mine Closure: Who Pays Giant Costs? – by Jack Caldwell (I Think Mining.com – June 25, 2013)

http://ithinkmining.com/

At this link is my EduMine course on Mine Closure: The Basics of Success. One issue I do not address in the course is a looming tendency, namely should we tax existing mines to pay for closure of old mines?

This evening in a Vancouver pub, I drank the evening away with friends of forty and more years vintage. We have all been involved in mining for that many years and have seen our share of closed mines and mines that will never be closed. We drifted inexorably to the Giant Mine in Yellowknife, Northwest Territories, Canada.

Here is what I read today about the closure of that mine:

“A northern review board has given its conditional stamp of approval to a federal cleanup plan for an abandoned gold mine near Yellowknife.

The main environmental hazard at Giant Mine is the 237,000 tonnes of highly toxic arsenic trioxide dust stored in 15 underground chambers — there’s enough to kill every person in the world. The arsenic trioxide is a byproduct from decades of gold mining.

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Cossacks Ramp Up Pressure on [nickel] Mining Firm After Riot – (RIA Novosti – June 25, 2013)

http://en.ria.ru/

MOSCOW, June 25 (RIA Novosti) – A representative of a Cossack organization said that a mining company whose allegedly environmentally disastrous operations incited hundreds of locals to riot in central Russia has a month to stop the project or face the consequences, the Komsomolskaya Pravda newspaper reported Tuesday.

“We reserve the right to campaign against nickel exploration by any legal means,” Valery Davydov was cited as saying.
“And let them keep in mind that if they so much as insert a shovel into the ground, the entire region will explode,” he said, adding that the decision was endorsed by eight Cossack organizations.

The Cossacks, an ethno-social group in Eastern Europe known for their social conservatism and pre-revolutionary military exploits, were repressed under the Soviets for their loyalty to the tsar. Today the group is showing a revival, regaining prominence in Russian public life and sometimes performing vigilante police duties.

The 13-month-long standoff over a prospective nickel mine in the Voronezh Region exploded last weekend, when a crowd of several hundred stormed the premises of a geological exploration party and torched cars, construction trailers and drilling rigs.

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NEWS RELEASE: DRILLING COMMENCES ON NORTH AMERICAN NICKEL’S MANIITSOQ NI-CU-CO & PGE SULPHIDE PROJECT, SOUTHWEST GREENLAND

06/24/2013

VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 24, 2013) – North American Nickel Inc. (TSX VENTURE:NAN)(OTCBB:WSCRF) (CUSIP: 65704T 108) (the “Company”) is pleased to announce that diamond drilling has begun on its 100% owned Maniitsoq project. A minimum of 3,000 meters is planned and it will focus on testing high priority VTEM electromagnetic (EM) anomalies defined within the 70 km-long Greenland Norite Belt and on following up the multiple high-grade nickel sulphide intersections drilled by NAN last year at Imiak Hill and the Spotty Hill discovery.

NAN CEO Rick Mark states: “The full team is now in Greenland and helicopter supported fieldwork, including channel sampling and ground truthing of anomalies is underway. The drill team has also begun its work and is supported by a second helicopter. The plan is flexible allowing us to stay in areas that produce core of interest to the geologists on site. COO Neil Richardson is leading the crew. We are planning to ship core samples weekly out of Maniitsoq. It will be an exciting summer for all of us.”

The drilling will be done with a helicopter-portable drill contracted from Westcore Drilling Ltd. A borehole pulse EM (BHEM) system, supplied and operated by Crone Geophysics & Exploration Ltd., is on site. It is anticipated that most holes will be surveyed with the BHEM system, which greatly increases the search radius of the holes, allowing geologists to target follow-up holes more precisely. The system can also be used for surface surveying in the event that an EM anomaly requires more detailing prior to drilling.

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Miner calls for end to Australian class war – by John McCarthy (Brisbaine Courier-Mail – June 25, 2013)

http://www.couriermail.com.au/business

ANGLOAMERICAN has called for the end of class warfare and for more vision from governments to revive Australia’s global business and repair its reputation

New chief executive Mark Cutifani said Australia’s reputation had been badly damaged by the debate over mining tax and the Government’s initiation of class warfare. That debate was sparked by attacks on the mining industry by people such as Gina Rinehart and his comments will add fire to the internal power struggle in the Labor Government.

Mr Cutifani said people in Europe and Asia were concerned about Australians brawling with each other, rather than debating the issues. “That is something they say they haven’t seen for 20 or 30 years,” Mr Cutifani said.

He would tell a Minerals Council of Australia forum in Canberra tomorrow that governments had not spent the revenue from the mining industry wisely. “There is a lack of vision, but it’s even worse than that,” he said. “It worries me that we have been fighting each other, rather than working together.

“The class warfare thing has done incredible damage,” Mr Cutifani said. “I am amazed by how many people who are observing us remark on how we are fighting each other, rather than just our normal robust debate.”

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