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Ageing baby boomers, few replacements threaten U.S. mining sector—NRC Report – by Dorothy Kosich (Mineweb.com – March 22, 2013)

http://www.mineweb.com/

The retirement of the baby boomers who comprise the bulk of the mining-related workforce could mean problems for mining, academia, and even the American life style, says a new report.

To read the report, “Emerging Workforce Trends in the Energy and Mining Industries: A Call to Action,” go to http://www.nap.edu/catalog.php?record_id=18250

RENO (MINEWEB) – A new report by the National Research Council of the National Academy of Engineering is concerning that the loss of a large number of experienced energy and mining workers in industry, academia, and government may actually impact the high standard of living and importance of the United States in the global economy.

For example, the Mine Safety Health Administration (MSHA) expects that 46% of the coal-sector workforce will be eligible to return in five years.

“Not only are there too few younger workers in the pipeline to replace them, but there is little time to capture the knowledge of experienced employees before they leave,” said the NRC’s Committee on Emerging Workforce Trends in the U.S. Energy and Mining Industries.

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Canada budget extends tax credit for junior mining firms – by David Ljunggren (Reuters Canada – March 21, 2013)

http://ca.reuters.com/

OTTAWA (Reuters) – Canada’s federal budget on Thursday met a key demand of the mining industry by proposing to extend a 15 percent mineral exploration tax credit for investors in flow-through shares.

The credit – used mainly by junior mining firms – has raised an average of C$800 million ($784 million) a year in new financing, according to the budget document. In the run-up to the budget the mining industry had lobbied Ottawa to keep the credit, which had been due to expire on March 31 this year.

“Given the ongoing economic uncertainty and to support the mineral exploration efforts of junior mining companies, (the budget) proposes to extend the credit for an additional year, until March 31, 2014,” said the document.

Extending the measure is projected to cut federal revenues by a total of C$100 million over the 2013/14 to 2014/15 fiscal years.

Flow-through shares allow companies to renounce or “flow through” tax expenses associated with their Canadian exploration activities to investors, who can then deduct the expenses in calculating their own taxable income. The credit is an additional benefit for investors in flow-through shares.

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How Silver Wheaton prospers despite mining slump – by Pav Jordan (Globe and Mail – March 22, 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.

When Randy Smallwood goes hunting for a mine acquisition, he has one hard and fast rule: Bet on the asset, not the management team.

Rather than a stinging rebuke of his mining brethren, the mantra is what has helped Mr. Smallwood, a geological engineer by training, build Silver Wheaton Corp. into the world’s largest precious metals streaming company after he helped found it in 2004.

“We look for management-proof projects,” the chief executive officer of Vancouver-based Silver Wheaton said during a recent visit to Toronto. “We want assets that will be good under any management team.”

Silver Wheaton makes its money by purchasing streams of future silver and gold production from companies that mine it as a byproduct; Silver Wheaton can then sell the precious metals into the spot market, usually at a higher price. The company invented the so-called streaming business, under which it makes a lump-sum, upfront payment and then pays the production cost for ounces on delivery from mines typically focused on copper, lead, zinc or nickel.

Long relegated to the fringes of the mining industry, streaming is now drawing mainstream attention as miners face soaring costs at the same time as debt and equity markets have slammed shut.

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China leader’s first trip highlights growing clout of BRICS nations – by Geoffrey York (Globe and Mail – March 22, 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.

JOHANNESBURG — For a glimpse of a potential new world order, take a look at the carefully chosen plans for the first overseas trip by China’s new President.

Fresh from his triumph in China’s leadership transition this month, Xi Jinping won’t be paying his respects in Washington or Europe on his debut foreign tour. Instead, on Friday, he flies to Russia – and then onward to three resource-rich African countries, in a trip laden with symbolic and political meaning.

The centrepiece of Mr. Xi’s nine-day “diplomatic blitzkrieg,” as some in the African media are calling it, is the annual summit of the BRICS group of nations, to be held in the South African coastal city of Durban next week. The BRICS themselves are evolving into a political entity, offering China a chance to lead the group and campaign for a multipolar world where the West is less dominant.

Originally an economic bloc, BRICS – now comprising Brazil, Russia, India, China and South Africa – is venturing further into politics and security. The summit will feature an unexpectedly heavy agenda of global issues, from the Syrian war to the planned creation of a development bank to compete with the World Bank, with $50-billion in seed money.

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In B.C., Northern Gateway has poisoned the well – by Gary Mason (Globe and Mail – March 22, 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.

When Natural Resources Minister Joe Oliver announced plans this week to strengthen Canada’s oil-spill defences, critics were swift to disparage the proposed measures.

It was just a cynical effort to deflect widespread criticism the government was receiving in Vancouver for closing the apparently much-loved Kitsilano Coast Guard station, some groused. It was a too-late PR ruse designed to salvage the Northern Gateway pipeline initiative, others said. B.C. New Democratic MP Nathan Cullen maintained that the initiatives were an exercise in greenwashing – a term for efforts designed solely to propagate the perception that an organization’s goals are environmentally friendly.

Intentional or not, Mr. Oliver’s news conference served to illustrate just how poisoned energy policy debate is in Canada, particularly as it pertains to the construction of oil pipelines.

As things stand, there is almost nothing that the federal government can say on this subject – at least in British Columbia – that isn’t going to be immediately denounced. Mr. Oliver can assert that his plan would bring Canada closer to a “world-class” system for oil tanker safety, but few care and fewer still believe him. He could promise that every oil tanker entering the port of Vancouver, or leaving the port of Kitimat, would have eight tugboats surrounding it to guarantee it would never run aground; it wouldn’t matter.

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NEWS RELEASE: PDAC Applauds Federal Budget’s Support of the Mineral Exploration Sector

March 22, 2013 09:02 ET

TORONTO, ONTARIO–(Marketwire – March 22, 2013) – The Prospectors & Developers Association of Canada applauds the Harper government’s budget announcement of a renewed commitment to the Mineral Exploration Tax Credit (METC), as well as key investments in skills training and aboriginal communities.

“The mineral exploration industry is a key driver for our economic recovery and provides critical economic stimulus to some of Canada’s most remote communities,” said Ross Gallinger, PDAC executive director. “The Government of Canada’s support for industry is recognized and appreciated.”

Exploration and mining remain a strategically important sector to the Canadian economy. The industry generates revenue and stimulates growth across the length and breadth of the country, from Vancouver Island to Newfoundland, from Southern Ontario’s salt mines to the metal and diamond mines of the Far North. The sector has a substantial economic impact on our nation’s north and on Aboriginal communities.

“We are pleased that the federal government has demonstrated their support for our sector by renewing the METC. This program has a proven track record of keeping jobs and investment in Canada and will continue to encourage investment in Canadian exploration projects,” said Gallinger. “This is a positive step on behalf of the government to ensure that Canadian companies have access to the financial instruments necessary to remain competitive, particularly given the capital-raising challenges many exploration companies are currently facing.”

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Two Iraqs, one big mess – by Yadullah Hussain (National Post – March 22, 2013)

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

I am really not sure what the endgame for all this is, to be perfectly honest

Trust an oil company to dive headfirst into a region where the asset resource is untested, political and security risks are elevated and the supply routes are controlled by a bitter rival that deems all contracts illegal. Moreover, some of the companies have not even been paid despite actively producing the asset.

Welcome to Kurdistan, a semi-autonomous part of the troubled country of Iraq, a nation divided politically, ethnically and now along oil interests 10 years after being invaded by the United States.

“When Talisman went into Kurdistan in 2008, they were mindful of the fact they were taking a certain amount of risk,” said Richard Herbert, executive vice-president of exploration at Calgary-based Talisman Energy Inc. Despite the challenging political and geological landscape, the company has found at least 115 million barrels of oil and 1.5 trillion cubic feet of natural gas from its two blocks in the region.

For many oil operators, Iraq has lived up to its expectation as one of the last remaining low-hanging fruits in the conventional oil sector, with operating costs of US$2 to US$3 per barrel, compared to US$25 to US$30 in Canada, according to the International Energy Agency.

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ONTC talks include Northern leaders – by Wayne Snider(Timmins Daily Press – March 22, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Northern leaders will have the chance to provide input into the privatization of the ONTC.

Northern Development and Mines Minister Michael Gravelle announced Thursday the formation of an advisory committee to provide the provincial government with input into the divestment process of the Ontario Northland Transportation Commission.

“I made a commitment to set up this Ministerial Advisory Committee to ensure the voices of Northerners and all those impacted by the divestment of ONTC were heard,” Gravelle said in a press release.

“The advisory committee has also been established to meet the standard our government has set out: To see that divestment recognizes the economic development value of the ONTC, and that the decisions made reflect the need to put in place a Northern transportation strategy that recognizes growth and prosperity.”

The divestment of the provincially owned ONTC was announced on March 23, 2012. The move sparked protests across Northeastern Ontario. The Northlander passenger rail service was shut down in September. Freight rail and Ontera, the telecommunications arm of the ONTC, are still in line for privatization.

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Mine safety milestones celebrated – by Ron Grech (Timmins Daily Press – March 22, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – No mineral is as valuable as the people who mine them. That was the overwhelming sentiment expressed Thursday night at the Dante Club as the Porcupine Safety Group awarded 90 supervisors for achievement in safety.

The supervisors were recognized for managing crews who have undergone anywhere 5,000 to 75,000 man hours without lost time to injury. In addition to the individual supervisor awards, two majors awards were presented to local mines in recognition of their top safety records.

De Beers Victor Diamond Mine was presented the Angus D. Campbell Award for going in excess of 300,000 man hours with no lost time to injuries and lowest medical frequency. Andre Giroux, safety supervisor at Victor Mine, said maintaining an accident-free environment is not an easy tasl.

“There’s quite a bit of work to it,” he said. “Every day we have a safety theme that goes out to the workforce… It’s brought up to every crew’s toolbox talk every morning. Everybody sits in on it, there is a different one each and every day. It drives the message home that we have to work safely to achieve our targets.”

The other major trophy presented Thursday night was the Robert Dye Award, which was shared by two local mines who have undergone less than 300,000 but more than 25,000 man hours with no lost time to injuries.

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Share the mineral wealth, say First Nations – by Staff (Northern Ontario Business – March 21, 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.

Engagement with First Nations and respecting treaty rights must be “cornerstones” of this week’s federal budget, said Nishnawbe Aski Nation Grand Chief Harvey Yesno.

“Canada will not achieve its full potential unless First Nations are engaged in a meaningful way in the development of our traditional lands and wealth of resources they contain,” said Yesno, in a March 20 press release.

Leadership within the Thunder Bay-based political and policy organization is calling on Ottawa to “renew its treaty relationship with First Nations” by respecting treaty right and supporting agreement that ensure that they share in the wealth generated by natural resource extraction.

“First Nations are fed up with being portrayed as a burden on taxpayers and are ready to play a major role as contributors to the economic growth of Canada. We are not against development, but need to have meaningful input into decision-making on critical issues that directly affect our people and our lands.”

Aboriginal people and their role in the economy is expected to be a focus in Finance Minister Jim Flaherty’s budget.

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NEWS RELEASE: BC AMTA achieves 500 Aboriginal hires in Mining Industry

KAMLOOPS, BC, March 21, 2013 /CNW/ – In three fast years, BC Aboriginal Mine Training (BC AMTA) has partnered with government, First Nations and the BC Mining industry to support, train and recruit Aboriginal people. On March 20, 2013 they reached a milestone of placing 500 men and women from First Nations communities across the province into sustainable mining-related careers.

With 25 percent of the mining workforce scheduled to retire within the next five years and 1200 Aboriginal communities within 200 kilometres of an operating mine or exploration project1, BC AMTA has set in motion an achievable process that proves a new way of doing business with First Nations is possible.

Those possibilities include training and placing more Aboriginal people into mining careers as new offices open up across the province to meet industry demand. New BC AMTA regional offices include New Aiyansh (Terrace) and Merritt, to complement existing operations in Kamloops, Cranbrook and Williams Lake.

Communities are generating economic health through increased education and employment. “I wanted to become employable and to get a job so my husband and I could stop struggling, and dream of financial freedom,” says Iona Chelsea2, a recent graduate of the Mining Skills for an Entry Level Workforce. The ripple effect of Iona’s commitment to education has inspired her daughter as well – they now enjoy time studying together.

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NEWS RELEASE: Harper Government supports development of first ever on-reserve potash mine

TRADING SYMBOL: TSXV: EPO

VANCOUVER, March 19, 2013 /CNW/ – Encanto Potash Corp. (“Encanto” or the “Company”) (TSXV: EPO and OTCQX: ENCTF) along with The Honourable Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development and Muskowekwan First Nation Chief Reginald Bellerose today announced an important milestone in the development of the first on-reserve potash mine in Canada.

The Muskowekwan First Nation potash mine project has been accepted by the federal government under the First Nations Commercial and Industrial Development Act (FNCIDA). The Act will enable the federal government to enact regulations that incorporate a provincial regulatory regime to govern commercial and industrial activities within a province.

The federal government and the Muskowekwan First Nation will begin discussions with the Province of Saskatchewan to explore a potential regulation under FNCIDA relating to the proposed mine.

“I am pleased to announce that the Muskowekwan First Nation potash project is a step closer to becoming a reality,” said Minister Valcourt. “The development of the first on-reserve potash mine in Canada will create employment and economic growth as well as other long-term benefits for the First Nation and surrounding communities. I applaud the community and its leaders for their vision and commitment to the long-term prosperity of the Muskowekwan First Nation.”

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Chiefs call for joint review panel [in Ring of Fire] – by Carol Mulligan (Sudbury Star – March 22, 2013)

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

Chiefs of First Nations whose territories fall within the Ring of Fire say they aren’t the people slowing an environmental assessment of the area.

It is Cliffs Natural Resources and the government of Canada, they say. Cliffs, because it asked for a review that isn’t as thorough as the one the chiefs called for, and the federal government for agreeing with that.

Nine chiefs are hailing as a victory this week a federal court order that will allow submission of the affadavits of three expert witnesses the chiefs intend to call in a judicial review.

Cliffs and the federal government had wanted to strike the affadavits of Justina Ray, Robert Gibson and Neil Hutchinson, arguing they were “acting improperly as advocates.” Cliffs is in the early stages of developing its Black Thor deposit in the Ring of Fire, 540 kilometres northeast of Thunder Bay.

That project is undergoing a co-ordinated environmental assessment under the Canadian Environment Assessment Act and the Ontario Environmental Assessment Act, and the chiefs have no quarrel with a joint assessment.

What they object to is the federal government has approved a comprehensive study — a title they say is a misnomer because it is essentially a “paper” review of the impact of Cliffs’ mining project on their territories.

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Xstrata outlines future in Timmins – by Thomas Perry (Timmins Daily Press – March 21, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – When Xstrata Copper talks the Timmins Chamber of Commerce listens … especially when the words of wisdom contain good news for the community.

Tom Semadeni, general manager of Xstrata Copper, provided chamber members with an update on the efforts to extend the life of the company’s Kidd Mine during Thursday’s instalment of the President’s Series Luncheons at the Porcupine Dante Club.

“Xstrata is the fourth largest mining company in the world and we are split into seven commodity groups,” Semadeni said. “There is a coal group, there is a copper group, there is a zinc group, there is an alloys group, their is a nickel group, those are the main ones.”

And with more than 1,000 full-time workers – including 823 at the Kidd Mine and 220 at the Met Site – Xstrata Copper remains one of the largest non-government employers in the Timmins area. The company also employs an additional 165 contract workers.

Xstrata Copper has hired 250 employees at its Timmins operations in the past two years and 546 in the past five years, partially due to retirements. In addition, it is facing up to 400 more potential retirements during the next seven years.

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Morien Resources Corp. interested in purchasing Donkin mine – by Sharon Montgomery-Dupe (Cape Breton Post – March 20, 2013)

http://www.capebretonpost.com/

DONKIN — There may be a light at the end of the Donkin mine. Xstrata Coal officials confirmed Wednesday the company is in discussions with Morien Resources Corp. about purchasing Xstrata’s 75 per cent interest in the mine. Morien Resources has a 25 per cent interest in the Donkin coal project.

“We have had some initial discussion, and with all commercial transactions there will be ongoing discussions between ourselves and Morien,” said Val Istomin, Xstrata business development manager.

However, Istomin said the Donkin mine remains up for sale in the meantime. “We haven’t stopped the sale process,” he said.

“At the end of the day all we want to do is exit this asset and hand it on to new people and they can continue on to the process. “If another company comes along and wants to buy the mine, we will be happy to talk to them about that.”

Xstrata Coal had recently issued a statement that it was unable to find a third-party buyer for its 75 per cent stake in the Donkin coal project. When the Cape Breton Post contacted Morien Resources Corp. for comment, president and CEO John Budreski issued a press release announcing the company’s intention to purchase Xstrata’s share.

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