Friedland resigns from Ivanhoe Mines in Rio Tinto shake-up – by Peter Koven (National Post – April 18, 2012)

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

After running out of options in a multi-year chess battle with Rio Tinto Ltd., there was nothing left for Robert Friedland to do but walk away.
 
In doing so, he leaves behind a $10-billion company that he built from scratch, and the satisfaction that he defied the skeptics and developed a mine in a country that very few investors believed in.
 
In short, Ivanhoe Mines Ltd. was another big win for Mr. Friedland, though his involvement ends with a creeping takeover instead of the premium, all-cash bid that investors have come to expect from Friedland stocks.
 
Mr. Friedland resigned from Ivanhoe Wednesday, as did the entire management team and six other board members that were not appointed by Rio Tinto. The move, which is part of a sweeping agreement between the two companies, paves the way for Rio to take control of all aspects of the giant Oyu Tolgoi project in Mongolia.

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Harper hits right balance between resources and environment – by Marilyn Scales (Canadian Mining Journal – April 18, 2012)

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Prime Minister Stephen Harper appeared to hit the right balance between environmental protection and mine development in the speech he delivered on April 14, 2012, at the Summit of the Americas in Cartagena, Colombia.
 
He highlighted the importance of Canada natural resource industries saying, “Mining alone is an important part of that, mining alone contributed $50 billion to GDP in 2011. We are already the world’s number-one potash producer, second for uranium, and a major global producer of most mineral and energy products.
 
“The mining industry in Canada is capital-intensive, high-tech and knowledge-based, and it produces well-paying jobs for more than 300,000 Canadians. constitutes more than a fifth of our exports and it has close to $200 billion dollars in assets throughout the world. As well, some 60% of the world’s exploration and mining companies are listed on the Toronto Stock Exchange.
 
“In other words, in Canada, we know this industry very well.”

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Ivanhoe Mines CEO Quits in Deal With Rio Tinto – by Alsiter MacDonald and Carolyn King (Wall Street Journal – April 19, 2012)

http://online.wsj.com/public/page/news-wall-street.html

TORONTO—Mining entrepreneur Robert Friedland resigned as chief executive of Ivanhoe Mines Ltd. IVN +13.78%as part of an agreement that ensures majority shareholder Rio Tinto RIO.AU +0.15%PLC’s financial support for a huge Mongolian copper project Mr. Friedland founded and fought to control.

Mr. Friedland and other members of senior Ivanhoe management stepped down Tuesday, the Vancouver-based company said Wednesday.

The move ends a monthslong tussle between Mr. Friedland and mining giant Rio Tinto over control of Ivanhoe and its main asset, the Oyu Tolgoi mine in Mongolia. The mine holds some of the world’s largest unexploited copper and gold deposits. Rio Tinto has gradually increased its stake in Ivanhoe, and in January it raised its ownership to 51%. That gave it effective control of the Canadian company without having paid a premium to other shareholders—a move that Mr. Friedland fought to prevent.

Michael Gordon, Ivanhoe’s interim chairman, said the management change came because as the controlling shareholder Rio Tinto wanted to “participate to a greater degree” in the company’s management.

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A regulatory burden lifted but opposition remains – by Gary Mason (Globe and Mail – April 19, 2012)

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.

Governing is so much more fun with a majority, as Prime Minister Stephen Harper reminds us every day. Opposition parties can yell and scream all they want, but the Conservatives don’t have to listen. They can kill the long-gun registry and bring in an omnibus crime bill and simply plug their ears when Liberals and New Democrats get up in the House of Commons to complain.

The latest move by the federal government to upset the Opposition is a plan to streamline – some would say neuter – the environmental assessment process. The Conservatives have been telegraphing this one for a while.

Mr. Harper has staked the economic future of the country on the resource riches of The West, and why not? In particular, the Prime Minister is focused on helping Alberta get its crude to market as quickly as possible. Future federal budget surpluses depend on it.

In the Prime Minister’s home province of Alberta, they still talk about the Mackenzie Valley gas pipeline project, which ultimately died, in part because of a burdensome regulatory assessment process that dragged on for years.

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Argentina’s expropriation of energy company only isolates country – Globe and Mail Editorial (April 19, 2012)

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.

The decision by Argentina’s President to nationalize the country’s largest energy company may pander to popular sentiment at home, but will only further isolate the country internationally.

President Cristina Fernandez de Kirchner announced the expropriation of 51 per cent of Yacimientos Petroliferos Fiscales to a cheering audience on live television on Monday.

This is a losing cause – just as is Argentina’s claim for sovereignty of the British-controlled Falkland Islands.

The country already has a weak standing in world financial markets, following its failure to repay all of its loans after defaulting on a $100-billion debt in 2001. The latest move will cause more uncertainty and make it more difficult to attract the kind of foreign investment and expert partners needed to develop Argentina’s reserves of shale hydrocarbons.

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Ottawa needs to reassure Canadians that its new environmental review policies are sound – Toronto Star Editorial (April 19, 2012)

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.

If Canadians could trust Prime Minister Stephen Harper’s government to manage both our oil- and mineral-rich economy and the environment that surrounds it, it would be easy to welcome Ottawa’s plan for simpler, faster and more coherent environmental assessments. The current system is undeniably flawed.

But given Harper’s past hostility to green causes, it’s only natural to question his motives and worry about the impact of his reforms.

It’s easy to illustrate how the system falls down now. Even picayune projects need assessments, like adding more office space inside a federal building, replacing an old military generator, or washing fruit on a blueberry farm.

Meanwhile, federal assessments for major work can take years to launch, and years to finish. One Alberta oil sands project took almost six years before approval was granted. Uncertainty and delays on this scale could discourage investors and sacrifice Canadian jobs at a time when we can’t afford to lose either.

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Power Ring of Fire with hydro, chiefs say – Shawn Bell (Wawatay News – April 18, 2012)

This article came from Wawatay News: http://www.wawataynews.ca/

First Nations and municipal leaders from northwestern Ontario are banding together with a list of demands to ensure long-term benefits of the Ring of Fire stay in the region.
 
The demands include powering the mines with hydropower, connecting remote communities to a hydro grid and road network and building Cliffs Resources’ chromite smelter in Greenstone.
 
“The companies want to come in and exploit the resources and leave nothing behind for local long standing benefits such as electric grid connection and road access, both a boost to the local economy,” said Marten Falls First Nation Chief Elijah Moonias.

Marten Falls was joined by Aroland, Constance Lake and three Lake Nipigon First Nations at the summit, held in Greenstone on April 17. Mayors of four municipalities, including Greenstone and Thunder Bay, were also signatories to the Ring of Fire resolution signed at the summit.

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NEWS RELEASE: NAN WARNS PROPOSED ENVIRONMENTAL ASSESSMENT CHANGES COULD LEAD TO UNREST

Wednesday, April 18, 2012 

FOR IMMEDIATE RELEASE

THUNDER BAY, ON: Nishnawbe Aski Nation (NAN) is warning that changes to the environmental regulatory process will lead to direct confrontation on the ground. Yesterday, the federal government released details of a plan to overhaul the environmental review process for major projects as announced during the recent federal budget.

Currently, Environmental Assessment processes are underway in the Ring of Fire region within NAN, and more major projects are expected to take place. In November 2011, First Nations in the Matawa region, within the Ring of Fire, filed a judicial review against the Environment Minister’s decision to proceed with a comprehensive environmental assessment process for the proposed Cliffs Chromite Project, as opposed to a joint panel review they had called for. This judicial review is expected to be heard in the fall of 2012.

“Consultation and accommodation, let alone consent, have not been met with First Nations. I am concerned with how regulatory reform will affect First Nations, including their ability to meaningfully participate in an environmental assessment process that is proposed to be fast-tracked and unchanged in funding capacity,” said Grand Chief Stan Beardy.

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Another threat to Canada’s mining industry – by Fred McMahon (Troy Media – April 18, 2012)

Troy Media is dedicated to fostering debate about issues shaping Canada and the world. Fred McMahon is the Fraser Institute’s vice-president of international policy research.

VANCOUVER, BC, Apr. 18, 2012/ Troy Media/ – Canadian politicians like to beat their chests about creating world-class centres of industrial and technological excellence. So why then, do some appear intent on destroying our mining industry, the one area where Canada is not simply a world leader but THE world leader?
 
Mining has deep historical roots in Canada. It was a growth engine that elevated us from a developing economy to one of the world’s richest nations. But now the mining sector is facing a threat posed by Private Member’s Bill C-323, the stepchild of C-300 which was narrowly defeated in 2010.
 
Idea has merit . . . but
 
Bill C-323, which appears to be aimed primarily at resource companies, would give Canadian courts jurisdiction in all civil cases from anywhere in the world that involve a violation of international law or a treaty to which Canada is party. The idea is to hold companies responsible in countries where the court system is corrupt, an idea that has merit.
 
But typically, bias in many countries is against foreign companies. For example, in 2001, Chevron bought Texaco, which once had operations in Ecuador.

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Red Lake mine expansions drive thirst for power – by Ian Ross (Northern Ontario Business – April 17, 2012)

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.

Power crunch

Red Lake’s loss may be Thunder Bay’s gain. Power distribution issues in one of Canada’s historic mining districts may force a Vancouver mining company to ship iron ore concentrate – and potential processing jobs – to Thunder Bay.
 
Northern Iron Corporation is advancing an iron ore property south of Red Lake in anticipation of starting production by late 2015.
 
But with gold discoveries and mine development in this remote area of northwestern Ontario occurring at a rapid pace, it’s fuelling calls for more transmission capacity.
 
Company president and CEO Basil Botha doesn’t know if the Ontario Power Authority (OPA) can supply enough juice for a potential mine and mill operation. “Power requirements are of concern going forward.”

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Federal budget: Critics blast Ottawa’s plan to overhaul environmental review process – by Michael Woods (Toronto Star – April 18, 2012)

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.

Critics cried foul Tuesday over the federal government’s decision to overhaul its environmental assessment process, calling it a bid to fast-track big oil and gas projects at the expense of the environment.

And environmentalists say there’s no better cautionary tale than the proposed Prosperity mine near Williams Lake in Interior B.C., which the province approved in 2010 but the federal government later disallowed.
 
The Conservative government’s planned changes, announced Tuesday but first mentioned in last month’s federal budget, would hand over environmental oversight for many projects to the provinces and reduce the number of federal review organizations and departments from more than 40 to three.
 
Minister of Natural Resources Joe Oliver said the assessment process needs streamlining because the current one is duplicative and cumbersome, and small projects that pose no risk to the environment are delayed. The government says new rules would provide predictability for investors.

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Despite hyperbole, environmental fast-tracking won’t give ‘big oil’ a ‘free pass’ – by John Ivison (National Post – April 18, 2012)

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

 Joe Oliver sounded like Robin Williams in the Dead Poets Society, as he urged Canadians to carpe diem — seize the day.
 
The Natural Resources Minister was visiting an engineering company in Toronto to highlight new legislation aimed at streamlining regulatory reviews on big energy projects, first revealed in the March budget.
 
“We are at a critical juncture. The global economy has presented Canada with an historic opportunity….We must seize the moment if we want to tap into the tremendous appetite for resources in dynamic, emerging economies.” To hear Mr. Oliver tell it, the problem of getting oil-sands crude to markets in Asia will be solved by his bill, which he claims will yield “timely, effective and efficient project reviews.”
 
The goal is to reduce to 24 months environmental reviews of major projects like the Northern Gateway pipeline from the oil sands to the B.C. coast. Mr. Oliver pointed out that some mine applications have taken up to six years before winning approval. “What kind of message does that send to investors?” he asked.

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Ottawa elbows regulators in quest for final word on pipeline approvals – by Shawn McCarthy (Globe and Mail – April 18, 2012)

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.

The federal government is asserting its control over pipelines – including the proposed Northern Gateway oil-sands project – taking from regulators the final word on approvals and limiting the ability of opponents to intervene in environmental assessments.

In proposed legislation unveiled by Natural Resources Minister Joe Oliver on Tuesday, the Harper government will clear away regulatory hurdles to the rapid development of Canada’s natural resource bounty.

Ottawa is aiming to reduce the number of projects that undergo federal environmental assessment by exempting smaller developments completely and by handing over many large ones to the provinces. It will also bring in new measures to prevent project opponents from delaying the assessment process by flooding hearings with individuals who face no direct impacts but want to speak against the development.

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Canadian miner vies to be major rare-earth supplier – by Pav Jordan (Globe and Mail – April 18, 2012)

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.

The race is on for mining companies vying to become the world’s next big producers of heavy rare-earth minerals, used to manufacture components for everything from vent fans for jet engines to laser-guided systems for smart bombs.

From hundreds of companies actively exploring for rare-earth deposits, only a handful – including a few Canadian – have made discoveries that could establish them as key suppliers in the quickly evolving market.

The 17 so-called rare-earth elements have been mined for half a century – with most of them coming from the Bayan Obo mining district in China. The minerals had been largely ignored until recent years, when they found their way into technological innovations ranging from smartphones to super-magnets used in wind turbines and automobiles.

Prices for the minerals touched all-time highs after No. 1 producer China tightened export restrictions on rare earths by nearly half in 2010 as it sought to guarantee supplies amid booming demand from its own market, which analysts say could consume all it produces within a decade. The caps were highly criticized by governments in Europe and the United States, which have complained to the World Trade Organization.

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What if the U.S. becomes an oil exporter? – by Jeffrey Simpson (Globe and Mail – April 18, 2012)

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.

Since the middle of the last century, the United States has been a net importer of oil (and not many years ago, it imported about two-thirds of its yearly consumption). The assumption of continued U.S. dependence on “foreign” oil provided one foundation stone for future Canadian prosperity. Canada, a self-described “energy superpower,” would always be able to send ever-larger quantities of oil to slake our neighbour’s insatiable thirst.

But what if the U.S. becomes an oil exporter, no longer needing anyone else’s oil? The change – or threat, if you prefer – for Canada would be immense. Indeed, it’s not too far-fetched to say that all the assumptions on which Canada has based its fossil-fuel industries can no longer be taken as axiomatically correct.

For the bitumen oil in Alberta, the future could be particularly murky. The oil resources there are immense, but finding markets for that oil might be very hard, indeed. Not only might the U.S. need less and less, but opposition to pipelines through British Columbia to ship oil to Asia is so intense that no guarantee exists they’ll be built for a very long time, if ever.

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