Republic of Mining

First Nations leaders want in on natural resources boom – by Les Whittington (Toronto Star – January 11, 2013)

January 11, 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.

OTTAWA—Over the next decade, a huge boom in Canadian natural resource projects — possibly worth $600 billion — is foreseen on or near First Nations lands. And this time, aboriginals are demanding their share of the economic pie.

Behind the complex issues of treaties and historic rights being raised by native leaders is the dollars-and-cents reality of who gets to pocket the benefits from Canada’s mining and petroleum riches.

Natural resources generate $30 billion in provincial and federal tax and royalty revenues annually, along with tens of billions of dollars in economic activity. With worldwide demand for commodities surging upward, Prime Minister Stephen Harper has anchored his government’s economic growth strategy on a massive expansion of the highly profitable natural resource sector.

For First Nations, gaining access to more of this wealth is vital to their hopes of improving their peoples’ living standards. So, new approaches to sharing resource riches will be a key part of any talks between Harper and aboriginal leaders.

At the same time, the ability of native groups to derail the Conservatives’ blueprint for prosperity by blocking natural resource projects has been made apparent by the Idle No More protests.

Ring of Fire brings aboriginal issues to fore in Ontario Liberal leadership – by Teresa Smith (Ottawa Citizen – January 10, 2013)

January 11, 2013

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

OTTAWA — Ontario’s Liberal leadership candidates seem to agree that provincial relations with First Nations — specifically figuring out how to divvy up the resources in the province’s northern “Ring of Fire” — should be a high priority in the coming months.

For the past month, aboriginal leaders supporting Attawapiskat Chief Theresa Spence’s hunger strike have been demanding that Canada renew its “treaty relationship” with First Nations, and agree to share the wealth that comes from extracting natural resources found in their traditional territory.

In Ontario, however, the province is also a signatory to Treaty 9, which was signed in the early 20th century and covers 250,000 square miles of northern Ontario, including Attawapiskat and the Ring of Fire.

According to a former professor of political science who has been watching Canada’s relations with First Nations for 50 years, there can be no change to the treaty relationship unless the provincial government is at the table during discussions between aboriginal leaders and Prime Minister Stephen Harper.

University of Toronto Professor Emeritus Peter Russell said Ontario’s government in the 1880s fought tooth and nail to be included in negotiations so it would have access to the vast land and resources, initially for trapping and logging.

Now, with the discovery of billions of dollars in mineral wealth in the ground around James Bay — Treaty 9 territory, which was supposed to be “shared” by the three treaty partners — the stakes are high.

‘With tourism, you need local buy-in to succeed’: Why Shania Twain’s shrine died, but Anne Murray’s lives on – by Tristin Hopper (National Post – January 10, 2013)

January 11, 2013

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

Last week, Timmins city council announced the Shania Twain Centre, the city’s 11-year, multi-million-dollar bid to lure tourists to the heart of Northern Ontario, was coming to an ignominious end.

Responding to Timmins’s entreaties, Vancouver-based Goldcorp bought the property for an undisclosed sum and, within a few years, the site of the 12,000-square-foot centre will be part of a new mining project. “I think they probably are going to take the buildings down,” said Tom Laughren, Timmins mayor.

Two small Canadian mining towns, both of whom spawned famous singers, yet one attraction lives while the other dies. The reason, it turns out, may be a fable of nostalgia versus modernity, grassroots gumption versus government bungling and the cruel twists of highway geography.

“She’s our hometown girl,” said Maxwell Snow, Springhill’s mayor. Until their favourite daughter became the CanCon selection of choice in the mid-1960s, Springhill was mostly known to Canadians as the site of two devastating mine disasters.

Describing the Anne Murray Centre’s late-1980s origins as “grassroots,” employee Marcie Meekins said it was spawned by some volunteers with the Springhill Industrial Commission who teamed up with her mother Marion.

Vale scales back [in Sudbury] – by Laura Stricker (Sudbury Star – January 11, 2013)

January 11, 2013

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

Vale announced Thursday it will slash spending on a massive pollution-reduction project in Sudbury, as it moves from a two-furnace to one-furnace operation at its Copper Cliff smelter.

“A move to a single furnace is years away, but preparation for this move will mean changes to the Clean AER Project in the immediate future,” Vale said in a statement. “The outcome of this move to a single furnace, combined with adjustments to the Clean AER Project, will be reductions in annual (sulphur dioxide) emissions more than 50% greater than contemplated in the original Clean AER plan, at approximately half the capital investment.”

The changes will see the cost of the Clean AER project reduced from $2 billion to $1 billion. The company’s operating costs will also be reduced, but by how much remains to be seen, said Angie Robson, Vale’s manager of corporate affairs.

“Vale has moved from what was once a growth strategy to really focus on generating value rather than production volume and also ensuring that each of our operations are self-sufficient and able to stand on our own two feet,” Robson said.

“Changes in our asset footprint, such as the commissioning of the Long Harbour project in Newfoundland, and decisions to optimize and redistribute some of the flow of our raw materials, have created conditions for moving from a two-furnace operation to a single-furnace operation for our smelter … We see it as the next logical step in our evolution here in Sudbury.”

Union, company [KGHM] working together – by Carol Mulligan (Sudbury Star – January 11, 2013)

January 11, 2013

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

A joint team of three people each from KGHM and United Steelworkers Local 2020 is working to reduce the number of union members who will be laid off when Podolsky Mine ceases production March 29.

Poland-based KGHM posted a notice Wednesday at the mine, as required under the Employment Standards Act, that 70 hourly rated positions would be cut when the mine closes.

That doesn’t mean 70 union jobs will be lost, said Wess Dowsett, area co-ordinator and staff representative for USW.

Six jobs were saved Thursday when the committee met for the first time. It decided to retain at least half a dozen employees for a year and keep the mine located north of Capreol on care and maintenance.

“There is always the possibility the closure will be delayed again or it may reopen in the near future,” said Dowsett, so the company will maintain the mine so it can reopen in short order if need be.

The fact KGHM is putting Podolsky on care and maintenance gives the union hope it may return to production in the future.

First Nations threaten to limit access to traditional lands – by Rick Garrick (Wawatay News – January 10, 2013)

January 11, 2013

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

Shibogama’s Margaret Kenequanash is warning the erosion of treaty rights will result in “very difficult” access to First Nations territory.

“Prime Minister Harper and his government can make all the legislation and impose funding cuts that will have devastating impacts and will erode our treaty rights,” said the executive director of Shibogama First Nations Council during the Nishnawbe Aski Nation Treaty Unity press conference, held on Dec. 21 in Thunder Bay. “This will not be recognized in our territory and will meet strong opposition without our free, prior and informed consent. And it will be very difficult to access our territory. All the prime minister is doing is removing his Majesty and his subjects’ access to our territory.”

Keneqauanash said the federal government’s move to vacate the treaty relationship leaves First Nations with no option but to use the resources within their territory to develop the future for their people without the involvement of government. “We are resilient people — we are survivors,” Kenequanash said. “We’ve been surviving for hundreds and hundreds of years. We will remain a strong nation.”

Kenequanash said the Shibogama chiefs support Attawapiskat Chief Theresa Spence on her hunger strike and demand a response from the prime minister on treaty issues.

“Bill C-45 (Jobs and Growth Act) is only one of many different pieces of legislation and policies that First Nations and tribal councils are contending with from the federal and provincial governments,” Kenequanash said.

Chief Moonias vows to oppose Cliffs at all costs – by Shawn Bell (Wawatay News – January 10, 2013)

January 11, 2013

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

Neskantaga Chief Peter Moonias burst into the national media’s attention in the spring when he announced to the world that he would stop a bridge to the Ring of Fire from being built over the Attawapiskat River, by any means possible.

“They’re going to have to cross that river, and I told them if they want to cross that river, they’re going to have to kill me first. That’s how strongly I feel about my people’s rights here,” Moonias said in May.

Since then Neskantaga has become a thorn in the side of Cliffs Natural Resources, the mining giant that Moonias has pegged an “American mining bully.”

Moonias’ efforts have brought international attention to the First Nations fight to be consulted and accommodated on what may be the biggest development ever in northern Ontario. For those efforts he has earned Wawatay’s male newsmaker of the year.

The First Nation is making true its claim to use any means possible to oppose the Ring of Fire until proper consultation gets completed.

In May the chief sent a series of letters to the Ontario government, demanding consultation and expressing his concerns over Cliffs’ announcement that it was going ahead with its Ring of Fire chromite mine, along with a north-south highway and a smelter in Sudbury.

Ontario coal-burning power plants to close this year – by John Spears (Toronto Star – January 10, 2013)

January 11, 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.

Ontario’s last coal-burning power plants will close by the end of this year, Premier Dalton McGuinty is expected to announce Thursday. The closure is either one year earlier than scheduled, or six years late, depending on your perspective.

The current deadline for closing the coal plants is Dec. 31, 2014 — which makes the new deadline a year early. But the McGuinty government had ridden into office in 2003 promising to close the coal plants by the end of 2007.

By that measure, the closure comes six years late. Closing the coal plants had been one of the Ontario Liberals’ signature promises, which they used to differentiate themselves from the Progressive Conservatives in the 2003 election.

“We’ll replace our dirty, outdated coal-fired electricity plants — the biggest source of air pollution in Canada — with cleaner burning natural gas, and renewable energy such as wind and solar,” McGuinty had vowed during the campaign.

Once in office, McGuinty found he couldn’t meet his 2007 deadline, as demand for power grew and Ontario struggled to keep the lights on.

Cutting to one furnace at Copper Cliff – by Staff (Sudbury Northern Life – January 10, 2013)

January 10, 2013

http://www.northernlife.ca/

Citing volatile market conditions and cost challenges, Vale announced today that it plans to move to a single-furnace operation at its Copper Cliff smelter. The move will have immediate effects on the company’s $2-billion Clean Atmospheric Emissions Reduction (AER) project.

In mid-October, facing weaker metal prices, Vale undertook a comprehensive review of all its projects and operations. The first step, announced Oct. 18, was that operations at its Frood site of the Stobie Mine would be suspended as of the end of the year.

Although 85 jobs were affected by the decision, there were no layoffs. At the time, Vale said it remained committed to the Clean AER project, although it shifted the completion date from late 2015 to 2016.

The goal of the changes, said Base Metals CEO Peter Poppinga, was to “deliver a business model that is simpler, self-funding and self-sustaining.” The Base Metals division could no longer expect to rely on financing from Vale’s larger iron ore business, he said. By the end of this year, the division is expected to fund itself entirely.

Today’s statement said moving to a single furnace at Copper Cliff is the next logical step. Vale does not expect that to happen before the end of 2016.

Vale Statement About Sudbury Clean AER Project – (January 10, 2013)

January 10, 2013

In the face of volatile market conditions and operating cost challenges affecting the broader mining sector, work began last year to reinvent the business model for Base Metals through a comprehensive review of all projects and operations. A wide range of opportunities are being explored to drive value in the business.

Changes in our asset footprint, such as the commissioning of our Long Harbour project in Newfoundland, together with decisions to optimize and redistribute the flow of raw materials, have made the move from a two-furnace operation to a single-furnace operation at our Copper Cliff Smelter the next logical step for the business. The current and future mine plans in Ontario do not support a two-furnace operation.

A move to a single furnace is years away, but preparation for this move will mean changes to the Clean AER Project in the immediate future. The outcome of this move to a single furnace, combined with adjustments to the Clean AER Project, will be reductions in annual SO2 emissions more than 50% greater than contemplated in the original Clean AER plan at approximately half the capital investment. This represents a significant investment of $1B in our Ontario operations while reducing sustaining capital requirements by $1B over the next two years.

We do expect that over the next several years there will be fewer jobs in the smelter complex with a change to a single furnace – but given the lead time we will look for ways to minimize any impacts.

Alcoa results: resilient but not shiny – by Martin Mittelstaedt (Globe and Mail – January 9, 2013)

January 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.

Alcoa Inc. kicked off the U.S. earnings season with figures that matched profit forecasts but provided little encouragement for those hoping for market-moving gains.

The big aluminum producer reported Tuesday that it made 6 cents (U.S.) a share from continuing operations in the fourth quarter of 2012, equalling analysts’ consensus estimates.

Revenue for the Pittsburgh-based company was $5.9-billion, up 1 per cent from the third quarter 2012, but down 2 per cent compared with the year-earlier fourth quarter. The shares gained about 1 per cent in after-hours trading.

As the first component of the Dow Jones industrial average to report numbers, Alcoa historically has been viewed as a market bellwether – hence the widespread interest in its results.

But some analysts are cautioning investors not to read too much into what Alcoa’s announcement may portend for fourth-quarter profits across the entire U.S. economy. Alcoa is just one company, in a sector – materials – that doesn’t have as much impact on the broader market as it once did.

Petronas taps TransCanada for pipeline – by Kelly Cryderman and Nathan Vanderklippe (Globe and Mail – January 10, 2013)

January 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.

CALGARY — Buttressing Canada’s position in the global race to export liquefied natural gas, TransCanada Corp. announced Wednesday that it plans to build a $5-billion pipeline to transport B.C. shale gas to the West Coast and onward to lucrative Asian markets.

The deal will see TransCanada build and operate a link to deliver natural gas to Lelu Island near Prince Rupert where Progress Energy Canada Ltd. – now a subsidiary of Malaysian state-owned firm Petronas – plans to build the massive Pacific Northwest LNG export facility.

The announcement shores up national efforts to catch up and compete with established LNG export projects in Australia and the Middle East, and will help Canada take advantage of strong natural gas prices in Asian markets versus depressed levels in North America.

“It’s a huge opportunity for Canada. But to capture that opportunity, we need to compete on a global basis,” TransCanada’s president and chief executive officer Russ Girling said in an interview Wednesday.

Barrick to Lead Wave of Gold-Mining Asset Sales in 2013 – by Liezel Hill (Bloomberg Businessweek – January 08, 2013)

January 10, 2013

http://www.businessweek.com/

Barrick Gold Corp. (ABX) and its global competitors are poised to sell assets this year as the companies seek to reverse two years of share-price declines.

Barrick, the largest producer of the precious metal, held talks to sell its majority stake in African Barrick Gold Plc (ABG), which runs the company’s highest-cost mines, before announcing today the negotiations had ended. CEO Jamie Sokalsky is reviewing the company’s other assets, and Newmont Mining Corp. (NEM), the world’s second-biggest gold miner, and Canada’s Kinross Gold Corp. (K) are among other producers that may sell assets, according to Dahlman Rose & Co.

“Every single one of the companies in this industry is looking for ways to create value, whether it be a spin out, or being taken over, or a restructuring,” David Christensen, who oversees about $450 million as CEO of San Mateo, California- based ASA Ltd., said in a Dec. 11 phone interview.

The possibility of increased sales represents an about-face for an industry that spent $69.7 billion on 410 takeovers and joint ventures in the last five years, as companies competed to boost output and reserves. Now gold miners including Barrick say they’re focused on returns instead of growth after equities lagged behind gains by the metal for the sixth straight year.

‘Clock starts ticking now’ on First Quantum’s Inmet pursuit by Pav Jordan (Globe and Mail – January 10, 2013)

January 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.

First Quantum Minerals Ltd. has started the countdown on its $5.1-billion hostile takeover offer for Canadian rival Inmet Mining Corp., taking the bid to create a “top five” copper producer directly to shareholders.

The $72-a-share offer was sweetened twice after Inmet, the owner of the massive Cobre Panama copper project, rebuffed friendly approaches by First Quantum at $62.50 in October and $70 in November.

“The clock starts ticking now, today,” First Quantum president Clive Newall said Wednesday, three weeks after announcing the company’s intention to go hostile.

First Quantum wants to get its hands on Cobre Panama, the $6.2-billion project Inmet is building in Central America, which will be the biggest mine in the region’s history.

The bid is a bet that demand for copper has even further room to grow after a decade of ravenous consumption by No. 1 consumer China that pushed prices to record highs last year of more than $4.50 (U.S.) a pound. On Wednesday, copper was trading at about $3.67 a pound.

Alberta’s tiny Karnalyte takes on potash’s global giants – by Pav Jordan (Globe and Mail – January 10, 2013)

January 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 small Alberta company is readying a deal with a major Asian partner to help finance a potash mine in Saskatchewan, positioning itself to become one of the first new producers of the crop nutrient in Canada in years.

According to sources familiar with the situation, Karnalyte Resources Inc. is expected to ink a $45-million agreement this week that will see the small Okotoks, Alta.-based company sell a 19.98-per-cent stake for $8.15 a share.

The buyer, believed to be either a Chinese or Indian company, has also committed to a subsequent equity injection of $15-million over the next year or so and will buy potash from Karnalyte at market prices for 20 years once production begins.

The dollars involved in the deal are small, but the significance to the industry is great. The deal underscores the growing push by top consumers India and China to distance themselves from Canada’s Canpotex Ltd. and Russia’s BPC, producer groups that have long controlled most of the world’s supply amid strong profits.

Independent producers such as Karnalyte are banking on that trend and are building mines to sell potash directly into those markets. Similarly, BHP Billiton Ltd., the world’s largest diversified miner, is building a $14-billion potash mine in Saskatchewan called Jansen that will be twice the size of any other currently producing mine.