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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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Argentina’s move to take control of YPF could jeopardize foreign investment – by Shawn McCarthy (Globe and Mail – April 17, 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.

OTTAWA — Argentina is planning to nationalize control of the country’s largest oil company, a move that could discourage foreign investors in one of the world’s hottest emerging oil and gas plays.
 
President Cristina Fernandez on Monday sent a bill to the country’s Congress to expropriate 51 per cent of the shares of YPF, the Argentine subsidiary of Spain’s Repsol, complaining the company is failing to meet its investment obligations in the country.

The move has heightened concern among investors in companies exploring for oil and gas in the country – including several Canadian plays.
 
In addition to U.S. giants such as Exxon Mobil Corp. and Apache Corp., (APA-N94.552.282.47%) Calgary-based companies that have properties in the South American country include Americas Petrogas Inc., (BOE-X2.38-0.46-16.20%) Gran Tierra Energy Inc., (GTE-T6.24-0.05-0.79%) and ArPetrol Ltd. (RPT-X0.05-0.005-9.09%)

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NEWS RELEASE: Summit of First Nations and Northwestern Municipalities shows alignment on sharing Ring of Fire benefits

Summit Resolution says Exton is favoured site for Ring of Fire ferrochrome refinery and north/south access

(Greenstone, ON, April 17, 2012) A Summit between leaders of Lake Nipigon and Ring of Fire North/South Alliance First Nations met on Saturday April 14, 2012 with Mayors of Greenstone, Nipigon, Hearst and Thunder Bay to demonstrate solidarity in their position that the opportunities and benefits of resource development related to the Ring of Fire remain in the area.

A Ring of Fire Resolution supporting (a) Exton (between Aroland First nation and Nakina) as the preferred refinery site and (b) a north-south access route to Marten Falls was signed by six First Nations (Marten Falls FN, Aroland FN, Bingwi Neyaashi Anishinabeek FN, Constance Lake FN, Animiigoo Zaagi’igan Anishinabeek FN, and Red Rock Indian Band) and four regional Mayors (Greenstone, Hearst, Nipigon and Thunder Bay). Peter Collins, Regional Grand Chief, Union of Ontario Indians, Anishinabek Nation Council & Chief of Fort William First Nation participated by teleconference. Chief Collins and other community leaders unable to attend are also expected to sign the Resolution over the next few days. 

Chief Elijah Moonias of Marten Falls First Nation, on whose traditional lands the Ring of Fire chromite deposits are located, addressed the gathering held in Greenstone. Chief Moonias stated, “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 roads access – both a boost to the local economy.

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Mining grads in demand – by Gemma Karstens-Smith (National Post – April 17, 2012)

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

From gas to gold, getting raw materials out of the ground is big business in Canada. The country produced more than $50-billion worth of minerals in 2011, up from $19.6-billion in 2001, according to estimates from Natural Resources Canada.

“We’ve seen just a huge surge in growth and investment, driven largely by demand from countries like China,” said Paul Hebert, vice-president of government relations for the Mining Association of Canada. “We’re seeing a lot more exploration, we’re seeing huge investments in projects of all sizes, investments to expand, but also investments in new projects.”

There’ll be about $140-billion worth of investments in the mining sector over the next five years, Mr. Hebert said.

The increase in production has created a demand for engineers and workers. There were 308,000 employed in mining in 2010, according to the MAC. But there will be a need for more than 100,000 new workers over the next decade.

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One process for miners – by Perrin Beatty (National Post – April 17, 2012)

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

Perrin Beatty is president and chief executive of the Canadian Chamber of Commerce.

Cuts to government jobs may command the headlines, but the most significant item in the federal budget was the long-overdue decision to clean up Canada’s inefficient regulatory oversight of natural resource projects.
 
For the natural resource industries, last week’s budget was, very simply, the most significant policy change in decades. Canada has identified a chronic competitive weakness and is moving to fix it. At the Canadian Chamber of Commerce, where we have identified regulatory inefficiency as one of the top 10 barriers to Canadian competitiveness, we welcome this move.
 
Currently, a whole crowd of federal agencies is involved in assessing a project. Because Parliament has established independent processes under different statutes — the Fisheries Act, the Species at Risk Act, the Navigable Waters Act, the Migratory Birds Convention Act, to name a few — there is little effective co-ordination. Every review must be carried out to ensure the legality of a licence. Each can require slightly different information, and proceed on different time frames.

This regulatory “scrum” frustrates both project proponents and the officials who have to administer it. Even once they have emerged with a federal permit, project proponents aren’t finished.

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