Saturday 25th May 2019

Resource Clips


Posts tagged ‘alberta’

Alberta Premier Jason Kenney vows to counter a U.S.-backed campaign against the province’s resources

May 23rd, 2019

…Read more

Vivian Krause discusses her one-person campaign to expose wealthy American interests bankrolling Canadian environmentalists

April 26th, 2019

…Read more

Canadian Greens surge again as party takes second place in PEI election

April 23rd, 2019

by Greg Klein | April 23, 2019

Press time results (seats at dissolution in parentheses)

  • Progressive Conservatives: 12 seats, 36.5% of the popular vote (8)
  • Greens: 8 seats, 30.6% (2)
  • Liberals: 6 seats, 29.5% (16)
  • New Democrats: 0 seats, 3% (0)
  • Independent: 0 seats, 0.4% (1)
  • (Voting in one district was postponed)

Promoting its use of wind energy, Prince Edward Island likes to call itself “Canada’s Green Province.” On April 23 PEI’s government just missed turning Green itself.

In an historic first for Canada, the home of Confederation voted Greens into second place, following a few years of electoral gains for the once-marginal party in other parts of the country. At press time the popular vote showed Dennis King’s Progressive Conservatives just 6% higher than Peter Bevan-Baker’s Green Party, which came in barely ahead of the incumbent Liberals whose leader Wade MacLauchlan lost his district to a Tory. But the seat count gave PCs 12, Greens eight and Liberals six. That raises the question of who will rule the province, and how. Among the possibilities is a Green-supported minority government, as is the case in British Columbia.

Canadian Greens surge again as party takes second place in PEI election

PCs won more seats but Greens flourished in the
land of Green Gables. (Photo: PEI government)

Voting in one of the province’s 27 districts was postponed following the death of Green candidate Josh Underhay and his six-year-old son in a Good Friday canoeing accident.

The Liberals collapsed after three terms in office despite budget surpluses and avowals that PEI had built Canada’s strongest economy. Still the country’s biggest potato producer, the province’s other main resource industry is fishing. Economic diversification includes an aerospace industry that accounts for 20% of provincial exports and a bioscience sector employing over 1,000 people.

With 27 electoral districts for a population estimated at 154,748, most winning candidates draw well under 1,500 votes. At 5,660 square kilometres, the province holds just over one-sixth the landmass of Vancouver Island.

But the Greens’ performance suggests continuing growth in some parts of Canada. Last October the party took three places each on Vancouver’s council, parks board and school board, along with one each on neighbouring Burnaby’s council and school board. In B.C.’s 2017 provincial election, Greens rose from one MLA to three, a feat matched by New Brunswick Greens last September. Ontario elected its first Green MPP in June.

Southern Vancouver Island hosts Canada’s sole Green MP, as well as the three MLAs who hold the balance of power supporting B.C.’s minority NDP government.

The environmentalist-nationalist Québec Solidaire went from three to 10 seats in October’s Quebec election.

Not surprisingly, however, Greens fared poorly in last week’s Alberta election, where the party polled only 0.4%. Should PEI PCs hold onto government, they’ll join Alberta along with Saskatchewan, Manitoba, Ontario and New Brunswick in a bloc of provincial conservative governments.

A referendum asking whether PEI should switch to a mixed-member proportional voting system passed in 15 of 27 districts but failed to reach the 17-district threshold.

Alberta fights back

April 16th, 2019

New government promises bold measures to defend a resource-based economy

by Greg Klein

Updated results (seats at dissolution shown in parentheses)

  • United Conservative Party: 63 seats, 55.2% of the popular vote (25 seats)
  • New Democratic Party: 24 seats, 32.2% (52 seats)
  • Alberta Party: 0 seats, 9.2% (3)
  • Liberal Party: 0 seats, 1% (1)
  • Independent candidates: 0 seats, 0.5% (3)
  • Freedom Conservative Party: 0 seats, 0.5% (1)
  • Progressive Conservative Party: 0 seats, 0% (1)
  • (One vacant seat at dissolution)

 

The outcome wasn’t as surprising as last time, when the once-marginal New Democratic Party swept to power in what had long been a moderately conservative one-party province. Yet this was probably Alberta’s most dramatic election since 1935, when a victorious upstart tied to the economic movement known as Social Credit grabbed international attention. Rarely has Western alienation played out so strongly as in this campaign, provoked by Ottawa’s stance on, among other issues, the ongoing war against Canadian resource industries. Foreign interference in the form of U.S. money also came to light, while aspects of the culture wars helped inflame passions.

The new government promises bold measures to defend a resource-based economy

Back in the ’30s, however, William Aberhart’s Social Credit failed to enact the radical reforms intended to deal with the Great Depression. The results of incoming premier Jason Kenney’s bold talk remain to be seen, despite the overwhelming victory of his United Conservative Party. Kenney’s biggest challenge will be to overcome the opposition to pipelines and tankers that deprives Albertan oil producers of Asian markets and consequently much higher prices.

Certainly Kenney won a decisive mandate. Barely half an hour after polls closed, media projections called a UCP majority. The party comprises a 2017 merger of the Progressive Conservatives and Wildrose Party, which together polled 52% in 2015, compared with only 40.6% for the NDP. But that year the New Democrats took 54 of 87 seats.

Much of Kenney’s success came from his portrayal of “the Trudeau-Notley alliance,” in which he blamed the prime minister and incumbent premier for wrecking Alberta’s economy through a combination of appeasement, indifference and outright animosity. Notley, at best an ineffectual supporter of Alberta oil and at worst an ideological enemy, made an easy target. So did Justin Trudeau, struggling with an image tarnished by SNC-Lavalin, that scandal’s revelation of favouritism towards Quebec jobs, and policies towards Alberta jobs that evoked memories of his father’s National Energy Program, often blamed for wrecking Alberta’s economy during the 1980s.

The new government promises bold measures to defend a resource-based economy

Kenney found easy targets in the “Trudeau-Notley alliance”
but victory might give him tougher battles to fight.
(Image: United Conservative Party)

Allusions to the NEP surfaced in Kenney’s description of Bill C-69, “the Liberals’ ‘No More Pipelines’ Law” and “a federal sucker punch to an already-reeling Alberta economy.” Kenney promised a constitutional challenge.

He portrayed Notley’s opposition to Ottawa’s Bill C-48, banning oil tankers from northern B.C. ports, as an insincere and tardy effort.

Kenney committed to ditch Notley’s carbon tax and sue Ottawa if it tries to impose the federal carbon tax on Alberta, as Trudeau’s government has done to provinces that didn’t enact their own carbon taxes.

Addressing an especially sore point for Albertans, Kenney promised a referendum on equalization. Consistently punishing Alberta through good economic times and bad, the inter-provincial transfers of money consistently benefit Quebec through bad times and good.

Turning his confrontational stance westwards, Kenney vowed to take on Trans Mountain pipeline foe British Columbia “on day one” by proclaiming Alberta’s Turn off the Taps legislation. Also known as Bill 12, it would stop Alberta oil shipments to an Alberta oil-dependent province that opposes exports of Alberta oil to Asia. B.C., on the other hand, stands ready to defend its convenient ethics in court.

Kenney also vowed action on foreign funding in Canadian campaigns. The issue gained prominence just days before the vote, with an April 12 Financial Post article by researcher Vivian Krause. American money, she stated, was helping finance efforts to defeat UCP candidates, part of a much wider, ongoing U.S.-funded campaign to “landlock” Albertan oil and gas, as well as destroy other Canadian resource industries.

From the very beginning, the campaign strategy was to land-lock the tar sands so their crude could not reach the international market where it could fetch a high price per barrel.—Tar Sands Campaign
director Michael Marx,
as quoted by Vivian Krause

According to documents she’s made public, foreign money moved from activism and court challenges to specifically anti-UCP efforts that benefit the NDP.

A group called Progress Alberta was working against UCP candidates, while another group called Leadnow urged its supporters to join Progress Alberta’s anti-UCP efforts, she stated. Referring to U.S. tax returns, Krause reported that “both Leadnow and Progress Alberta are partially funded—US$62,843 (2016-2017) and US$162,587 (2013-2016) respectively—by the Tar Sands Campaign.” The Tar Sands Campaign gets its money from the Rockefeller Brothers Fund, she added.

Krause quoted Tar Sands Campaign director Michael Marx as stating: “From the very beginning, the campaign strategy was to land-lock the tar sands so their crude could not reach the international market where it could fetch a high price per barrel.”

Krause charged that Notley knew about the foreign-funded activity but refused to act.

Kenney was quick to follow up. “We now know that for months Rachel Notley has been sitting on a legal opinion indicating that the government of Alberta could take action against groups behind the Tar Sands Campaign,” he declared. “Some have estimated that Alberta is losing up to $16 billion a year in value from the price discount that results from our oil producers being captive to the U.S. market. This is a direct result of the campaign to landlock Canadian energy supported by the Tar Sands Campaign, which in the last year has succeeded in delaying the Trans Mountain Expansion, Keystone XL and the Line 3 replacement project.”

Some have estimated that Alberta is losing up to $16 billion a year in value from the price discount that results from our oil producers being captive to the U.S. market. This is a direct result of the campaign to landlock Canadian energy supported by the Tar Sands Campaign.—Jason Kenney

Kenney pledged to challenge the charitable status of foreign-funded groups, cut off their provincial funding, hold a public inquiry into foreign funding that attacks Albertan energy, ban foreign entities from financing political action committees and urge Ottawa to pass Bill S-239, which would ban foreign money from federal politics.

Krause has previously stated that Rockefeller money helped fund Leadnow’s anti-Conservative campaign in the 2015 federal election.

Now that a provincial government intends to act on her findings, something that started as a Quixotic one-woman campaign could have enormous impact. According to her figures, U.S. interests like the Rockefellers have paid Canadian activists well over half a billion dollars so far.

Of course the extent to which Kenney’s tough talk produces results remains to be seen. Still Notley had nothing to show for any claim of supporting Alberta resources. Kenney found it easy to associate her with the prime minister, the UCP’s continual target. The anti-pipeline Bill C-69 “is just one of the terrible consequences of the Trudeau-Notley alliance,” Kenney argued. “Alberta’s NDP gave Justin Trudeau licence to kill Northern Gateway, to surrender to a U.S. veto of Keystone XL, to change regulations that led to the death of Energy East and to fold in the face of the B.C. New Democrats’ obstruction of the Trans Mountain expansion. On top of that we’ve got Trudeau’s tanker ban, Bill C-48 and a cap on our oilsands.”

Krause pointed out that heavy-handed enviro-activism persisted despite Notley’s attempts at appeasement. The NDP increased the carbon tax, capped allowable emissions and created the world’s largest boreal forest preserve. “Surely the campaign against Alberta would finally be over,” Krause wrote. “But, again, no.”

The UCP victory adds considerable weight to moderate conservative provinces, now stretching from Alberta to Ontario and including New Brunswick. Along with the federal Conservatives, they could present troublesome interference to the federal Liberals’ re-election efforts in October. In fact as a six-term MP who served a number of cabinet positions in Stephen Harper’s Conservative government, Kenney could overshadow federal Conservative leader Andrew Scheer.

On the other hand, a strong conservative bloc might discourage the Liberals from almost any interest in economic issues, thereby freeing them to campaign exclusively on their Trudeauvian zeitgeist.

American machinations

March 23rd, 2019

Vivian Krause exposes U.S. money and tactics behind Canadian environmentalism

by Greg Klein

This isn’t the kind of Yankee imperialism Canadian protesters typically protest. Powerful American interests pay Canadian environmental activists big, big money—well over half a billion dollars so far—that does nothing for the environment but undermines our economy and national unity. That’s Vivian Krause’s message and, as the pipeline controversy gains intensity, her story’s gaining prominence. But, she argues, Ottawa still shows no intention of using its power to stop this foreign interference.

The money trail begins with huge American backers that include the Gordon and Betty Moore Foundation, the Rockefeller Brothers Fund, the William and Flora Hewlett Foundation, and the David and Lucile Packard Foundation, she says.

Vivian Krause exposes the U.S. money behind Canadian environmentalism

They fund intermediaries like the Oak Foundation, Tides Canada and its U.S.-based parent organization the Tides Foundation.

The intermediaries, in turn, channel money to Canadian groups like the David Suzuki Foundation, Greenpeace Canada, the Pembina Institute, West Coast Environmental Law, the Dogwood Initiative, several first nations and the Council of Canadians, supposedly founded as a nationalist group to protect Canadian sovereignty.

Some examples? The Moore Foundation alone, she says, has pumped $259 million into Canada through more than 500 payments averaging about half a million each. Tides got $83 million. “West Coast Environmental Law, for example, receives on a monthly basis between $25,000 and $100,000 just from this one foundation.” Some first nations got $58 million in 99 payments averaging $580,000 each.

Backed by U.S. bucks, the beneficiaries go after Canadian resource industries, especially Alberta oil production, focusing on proposed Canadian pipeline projects and oil tanker traffic. Oddly excluded from the concerns of American funders and Canadian protesters are American oil production and American tanker traffic—even the American tankers that navigate British Columbia’s coast.

Ready to reveal sources, her website links to tax returns, policy papers and other documents to substantiate her message. Not only does she expose so much of their funding, but she also disputes the truthfulness of some of their key statements. Working “from my dining room table, using Google on my own nickel,” Krause single-handedly challenges an extremely well-funded and vocal movement.

She’s been accused of shilling for the federal Conservatives and the oil industry. But that brings a spirited retort: “I did what I did in spite of the Conservative party and in spite of the oil industry,” Krause tells ResourceClips.com. “I actually did what they should have done. But none of them were doing proper issue management research. They weren’t even following this.”

Vivian Krause exposes the U.S. money behind Canadian environmentalism

Vivian Krause delivers the keynote speech at
Resource Works’ fifth anniversary celebration.

Having spent the 1990s working for UNICEF in Guatemala and Indonesia, she then took a job with one of the world’s largest producers of farmed salmon, an industry opposed by B.C. environmentalists. She happened to find documentation tracing their money and strategies to American sources. Then the money trail branched out.

“The same funders blocking farmed salmon from markets were starting to do the same to Alberta oil,” she recalls. “The tactics were the same, the funders were the same, some of the same individuals were involved.

“I worked with charities so I understand charities and charitable foundations. I worked in Indonesia, one of the most corrupt countries in the world, so I was trained to spot things that are fishy, and I also knew a resource-based industry—I witnessed the frontlines of activism against the salmon farming industry.”

As her research continued, she “couldn’t find anyone else who would do this. I kept wondering which think tank, which organization will take this over so I don’t have to do this anymore. I couldn’t find anybody.”

She acknowledges some honorariums in the past and the occasional speaker’s fee, but she remains a self-supporting individual fighting a one-person counter-campaign.

That’s against a movement that “doesn’t help the environment,” she argues. “All it does is bench Canada from the world market. And I would argue that we are one of the best oil producers. Look at what Alberta has done—they put on a carbon tax, they capped production and they created a protected boreal forest. No other oil-producing jurisdiction has done anything near that. Despite all that the Alberta government has done, they’re still being bullied out of the market. So I would argue that this anti-pipeline activism, if it intended to help mitigate the climate and environmental impacts of oil, has had the opposite impact.”

Despite all that the Alberta government has done, they’re still being bullied out of the market. So I would argue that this anti-pipeline activism, if it intended to help mitigate the climate and environmental impacts of oil, has had the opposite impact.

The American-funded campaign also intensifies the conflict between Alberta and some other Canadian jurisdictions, thereby weakening national unity, Krause says. Additionally she’s found American money intruding into Canadian election campaigns.

In one example following Canada’s 2015 federal election, she discovered the Oakland-based Online Progressive Engagement Network (OPEN) boasting that its Canadian campaign contributed “greatly to the ousting of the conservative Harper government.” Krause describes OPEN as a Rockefeller intermediary and the parent organization of Leadnow. Leadnow claimed to have defeated 26 Conservative incumbents, an obviously dubious statement, but Krause maintains the group may well have made a difference in some ridings.

So what’s Ottawa doing about this foreign interference? Nothing, Krause says. Her submissions to the Canada Revenue Agency have gone unanswered. As for Elections Canada, “I feel that they ignored crucial evidence and had they not ignored it they would have come to a different conclusion.”

Canada’s Elections Act has loopholes so big “you could drive a heavy hauler through them,” she adds. “And the amendments that the current government has proposed will not solve the problem.”

But any solution would depend on the CRA, she emphasizes. “As I was told during the Elections Canada investigation, if the Charities Directorate allows Canadian-registered charities to bring in money for those purposes, they then ‘Canadianize’ the money. And then, when those charities report the money to Elections Canada, for the purposes of Elections Canada it’s Canadian. So the CRA needs to enforce the Income Tax Act so that charities are not conducting activities that are not exclusively charitable.”

Nevertheless, she remains optimistic. For that, she credits several prominent natives for “lifting the taboo. There was a taboo on talking about this American funding. The BC Liberals, for 10 years, said we can’t fight it. They used to say, ‘They’ve got billions, we’ve only got millions. We have to go along with this Great Bear Rainforest’ [a 6.4-million-hectare West Coast environmental reserve] even though they knew that there’s no great bears in the Great Bear Rainforest.

“The taboo has been lifted. Now we can start asking for some accountability, starting with the CRA.”

Visit Vivian Krause’s website.

Watch Resource Works’ site for an upcoming video of a March 14 speech by Vivian Krause.

Rex Murphy comments on the carbon tax and Fort McMurray’s decline

March 8th, 2019

…Read more

Miners and explorers pick their spots in Fraser Institute’s latest report card

February 28th, 2019

by Greg Klein | February 28, 2019

Ontario dropped dramatically but an improved performance by the Northwest Territories and Nunavut helped Canada retain its status as the planet’s most mining-friendly country. That’s the verdict of the Fraser Institute’s Annual Survey of Mining Companies 2018, a study of jurisdictions worldwide. Some 291 mining and exploration people responded to questions on a number of issues, supplying enough info to rank 83 countries, provinces and states.

Canadian and American jurisdictions dominated the most important section, with four spots each on the Investment Attractiveness Index’s top 10. Combined ratings for all Canadian jurisdictions held this country’s place as the miners’ favourite overall.

The IAI rates both geology and government policies. Respondents typically say they base about 40% of their investment decisions on policy factors and about 60% on geology. Here’s the IAI top 10 with the previous year’s numbers in parentheses:

  • 1 Nevada (3)

  • 2 Western Australia (5)

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 5 Alaska (10)

  • 6 Chile (8)

  • 7 Utah (15)

  • 8 Arizona (9)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

Here are Canada’s IAI rankings:

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

  • 11 Newfoundland and Labrador (11)

  • 12 Manitoba (18)

  • 15 Nunavut (26)

  • 18 British Columbia (20)

  • 20 Ontario (7)

  • 30 New Brunswick (30)

  • 51 Alberta (49)

  • 57 Nova Scotia (56)

Despite Ontario’s fall from grace, the province’s policy ratings changed little from last year. Relative to other jurisdictions, however, the province plummeted. Concerns include disputed land claims, as well as uncertainty about protected areas and environmental regulations.

The Policy Perception Index ignored geology to focus on how government treats miners and explorers. Saskatchewan ranked first worldwide, as seen in these Canadian standings:

The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars. A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.—Ashley Stedman,
senior policy analyst,
the Fraser Institute

  • 1 Saskatchewan (3)

  • 9 New Brunswick (13)

  • 10 Quebec (9)

  • 11 Nova Scotia (24)

  • 14 Alberta (16)

  • 18 Newfoundland (10)

  • 24 Yukon (22)

  • 30 Ontario (20)

  • 33 Manitoba (27)

  • 42 NWT (42)

  • 44 B.C. (36)

  • 45 Nunavut (44)

The NWT and Nunavut’s indifferent PPI performance suggests greater appreciation of the territories’ geology boosted their IAI rank.

This year’s study included a chapter on exploration permitting, previously the subject of a separate Fraser Institute study. Twenty-two jurisdictions in Canada, the U.S., Australia and Scandinavia were evaluated for time, transparency and certainty. Cumulatively, the six American states did best, with 72% of explorers saying they got permits within six months, compared with 69% for the eight Canadian provinces, 53% for the two Scandinavian countries (Finland and Sweden) and 34% for the six Australian states.

A majority of respondents working in Canada (56%) said permitting waits had grown over the last decade, compared with 52% in Australia, 45% in Scandinavia and 28% in the U.S.

A lack of permitting transparency was cited as an investment deterrent by 48% of respondents working in Australia, 44% in Canada, 33% in Scandinavia and 24% in the U.S.

Eighty-eight percent of explorers working in the U.S. and Scandinavia expressed confidence that they’d eventually get permits, followed by 77% for Australia and 73% for Canada.

Saskatchewan led Canada for timeline certainty, transparency and, with Quebec, confidence that permits would eventually come through.

As for the IAI’s 10 worst, they include Bolivia, despite some recent efforts to encourage development; China, the only east Asian country in the study; and problem-plagued Venezuela.

  • 74 Bolivia (86)

  • 75 La Rioja province, Argentina (80)

  • 76 Dominican Republic (72)

  • 77 Ethiopia (81)

  • 78 China (83)

  • 79 Panama (77)

  • 80 Guatemala (91)

  • 81 Nicaragua (82)

  • 82 Neuquen province, Argentina (57)

  • 83 Venezuela (85)

Explorers made up nearly 52% of survey respondents, producers just over 25%, consulting companies over 16% and others nearly 8%.

“The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars,” said Ashley Stedman, who co-wrote the study with Kenneth P. Green. “A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.”

Download the Fraser Institute Annual Survey of Mining Companies 2018.

Battlefield correspondent

January 24th, 2019

Rex Murphy sees human casualties in the war on Canada’s resource industries

by Greg Klein

Rex Murphy sees human casualties in the war on Canada’s resource industries

An SRO audience paid rapt attention to Rex Murphy’s VRIC speech.

 

There’s something inspiring about a Newfoundlander—a Newfoundlander born in Newfoundland before it even joined Canada—coming to the West Coast largely to defend Alberta’s oil and gas sector. Actually Rex Murphy’s message applies to Canada’s resource industries overall, focusing on the people who work in them, their families and others who helped build the country. He sees the chasm between those who find fulfillment in employment and those who would shut down the industries that provide it.

Rex Murphy sees human casualties in the war on Canada’s resource industries

A National Post columnist who’s somehow tolerated by the CBC, Murphy proved a huge hit with an overflow crowd at the Vancouver Resource Investment Conference 2019. “As a journalist, I’m in a room full of achievers,” he quipped. “This is a very awkward spot.” But unlike most journalists, he neither ignores nor celebrates an enormous shift in Canadian society.

He remembers miners from Baie Verte and Buchans who frequented his mother’s restaurant in the 1950s, “the gentlest of men” despite their gruelling work. But important as mining was, Newfoundland’s main source of survival was fishing. That changed dramatically in 1992.

That’s when 31,000 people, “at the stroke of a pen on a single day, were completely removed from the Newfoundland inshore fishery. Something that had gone on for 450 years, that defined the culture, the humour, the idiom, the songs, the pattern of settlement, the whole idea of Newfoundland, was wrapped up in that fishery…. For the first time in 500 years no one could jig a codfish and have it for supper. But also it was 31,000 people abruptly unemployed.”

Proportionately that would have been 660,000 people in Ontario, he added. One man he knew, desperately hoping for a job in Hamilton, sold his house for seven plane tickets. “That’s how rough it was.”

Rex Murphy sees human casualties in the war on Canada’s resource industries

But as one regional resource economy collapsed, another boomed. Alberta’s oilpatch needed workers. Murphy calls it “one of the great rescue operations of Canadian Confederation, which most people still haven’t even heard about…. It was one of the great moments, unsung, of Confederation at work, where one region of the country, very willingly, allowed a strange bunch with certainly a stranger language to wander into their province … one of the great songs that we should be singing, that the enterprise of Alberta and a primary industry rescued one of the great social and cultural blows of another part of the Confederation. Did you ever hear about it?”

We more likely heard vilification, often coming from activists, celebrities, media and increasingly Ottawa, he maintained. “You heard every criticism you could hear about poor Fort McMurray. Even after the fire they went after it…. You had the oil price decline, you had the burning of Fort McMurray, you had a flood in Fort McMurray, you had the departure of capital from Fort McMurray, you had the layoff of engineers in Fort McMurray, and what did they decide was the cure? Let’s bring in a carbon tax.

“I mean, the poor creature’s already laid out on the morgue table and they want to take another few shots at the head.”

Rex Murphy sees human casualties in the war on Canada’s resource industries

Resource extraction was vital to the generations who built this country, Murphy emphasized. “It is only in a country as prosperous as our own that we get to the point where we denigrate and derogate the essential industries that brought us precisely to where we are.”

Prosperity, or at least just simply work, can provide intangible benefits too, he pointed out.

“Do you know what it’s like not to have work? There’s no psychological stress greater except loss of a loved one or breakup of a family…. It’s not just the work, it’s not just the paycheque, it is the fulfillment of the human personality.”

Although often incredulous, Murphy’s cri de coeur falls short of actual despair, especially when laced with homespun humour. Nevertheless a despairing thought might occur to listeners who wonder whether the intangible value of an earned paycheque matters much in a culture of entitlement, or among those who find remuneration in activism. As for work’s fulfillment of the human personality, maybe another type of personality has gained prominence, one that finds fulfillment in espousing fashionable convictions and obstructing useful projects.

What remains to be seen is whether the people he speaks for are declining, in numbers as well as influence. Maybe previous generations could have offset such a fate by producing a few more Rex Murphys.

Videos of VRIC 2019 presentations will be posted online in the coming weeks by Cambridge House International.

Cross-country events mark Investor Education Month

October 2nd, 2018

by Greg Klein | October 2, 2018

Following the ounce-of-prevention principle, securities commissions across Canada plan a number of initiatives to encourage smarter, safer investment strategies. A month of events begins with World Investor Week, in which Canadian regulators join the International Organization of Securities Commissions from October 1 to 7. Here’s an outline of this country’s events from province to province.

British Columbia
The B.C. Securities Commission will release new research on millennials this month, along with new tools to help people understand their investment returns. The BCSC also plans design updates to InvestRight.org to improve its efficacy.

Cross-country events mark Investor Education Month

Alberta
A digital education campaign called Spot the Odd will raise awareness of the Alberta Securities Commission’s free resources as well as encourage financial literacy and fraud awareness. A number of activities across the province will include Don’t Get Tricked, to be held in Calgary on October 17.  The ASC provides other resources on CheckFirst.ca.  

Saskatchewan
The province’s Financial and Consumer Affairs Authority has a cryptocurrency awareness campaign slated for Facebook, Twitter, the FCAA website and YouTube. In addition, businesses planning to use cryptocurrencies are invited to discuss their project with the FCAA to learn whether it falls under securities legislation.

Manitoba
The Manitoba Securities Commission will formally launch MoneySmartManitoba.ca to promote financial literacy and planning. The MSC will also take to the Twittersphere with news, tips and strategies for investors.

Ontario
The Ontario Securities Commission plans social media chats on Twitter and Facebook with the hashtag #IEM2018. The OSC also hosts GetSmarterAboutMoney.ca, plans a telephone townhall for October 10, presents public events around the province with OSC in the Community and further encourages awareness through an investor newsletter.

Participating in World Investor Week helps promote investor education and protection both locally and globally.—Tyler Fleming,
Ontario Securities Commission

Quebec
L’Autorité des marchés financiers will release results of its fourth Financial Awareness Index, measuring the public’s knowledge and use of financial products and services. The AMF will also present the third edition of its Talking Money in Class! contest for high school teachers and take part in the Quebec Seniors’ Fair.

New Brunswick
The Financial and Consumer Services Commission will present online info with special emphasis on initial coin offerings. For more tips on fraud, investors may visit fcnb.ca and follow the commission on Facebook and Twitter. The Fortune online trivia game allows investors to compete with others across the province to learn more and win prizes.

In addition to all that, the Canadian Securities Administrators umbrella group offers its own online tools and resources. The CSA invites the public to take advantage of Investor Education Month and World Investor Week by following @CSA_News on Twitter and @CSA.ACVM on Facebook.

Read: Regulators emphasize innovation and deterrence as financial sanctions fail.

Reaching arctic mines by sea

September 10th, 2018

Operating in northern Canada often means creating your own transportation routes

by Greg Klein

Amid all the controversy over spending $4.5 billion of taxpayers’ money to buy a pipeline project whose $9.3-billion expansion might never go through, Ottawa managed to come up with some good, if relatively minor, infrastructure news. Rehab work will begin immediately on an idled railway connecting with a port that together linked Churchill, Manitoba, with the rest of Canada by land and the world by sea. Should all go to plan the private-public partnership would be one of just a few recent success stories in northern infrastructure.

Operating in northern Canada often means building your own infrastructure

The arctic Quebec riches of Glencore’s Raglan mine
justify an especially roundabout route from mine to market.

Denver-based owner OmniTRAX shut down Churchill’s deep-water port in 2016, blaming the demise of grain shipping through that route. The following year the company said it couldn’t afford rail repairs after a flood washed out sections of the line. Now the railway, port and an associated tank farm come under new ownership in an “historic” deal involving the Missinippi Rail Limited Partnership and the Fairfax Financial Holdings & AGT Limited Partnership.

“The consortium brings together First Nations and community ownership and support, along with significant private sector leadership and global investment capacity, and further, short line rail operation and shipping experience,” Ottawa enthused. As stakeholders heaped praise on the federal government, the source for much of the money seemed clear. But not even the purchase price, let alone details on who pays how much, have been disclosed.

Still the revitalization program, which could re-open the railway this coming winter, heightens the potential of resource projects in northern Manitoba and Nunavut’s Kivalliq region. As such, the apparent P3 success contrasts with a northern infrastructure setback to the northwest.

In April Transport Canada rejected a request to fund the bulk of a $527-million proposal to build another deep-water port at Grays Bay, Nunavut, along with a 227-kilometre year-round road leading to the territory’s former Jericho diamond mine. The Northwest Territories offered to build its own all-weather link, where a winter road now connects Jericho with three operating diamond mines in the NWT’s portion of the Lac de Gras region.

However the federal refusal prompted Nunavut to pull its support for Grays Bay. Undeterred, the Kitikmeot Inuit Association joined the NWT and Nunavut Chamber of Mines at last month’s Energy and Mines Ministers’ Conference in Iqaluit to argue the case for Grays Bay and other infrastructure projects. Chamber executive director Tom Hoefer said that with the exception of the NWT’s 97-kilometre Tlicho all-season road, the two territories have gone more than 40 years without government support for major projects. The last came in 1975, when Ottawa partnered with industry to build the world’s first ice‐breaking cargo ship, serving the former Nanisivik and Polaris mines in present-day Nunavut, he said.

With no power grids to our remote mines, [companies] must provide their own diesel-generated power, or wind in the case of Diavik. Being off the highway system, they must build their own roads—whether seasonal ice roads or all-weather roads. The ice road melts every year and must be rebuilt annually for $25 million…. Some of our mines must build their own seaports and all provide their own airports.—Tom Hoefer, executive director
of the NWT and Nunavut
Chamber of Mines

Hoefer compared the Slave geological province, home to deposits of precious and base metals along with rare earths and Lac de Gras diamonds, to the Abitibi. Kivalliq, he added, also offers considerable potential in addition to the regional operations of Agnico Eagle Mines TSX:AEM.

But while mining plays an overwhelming role in the northern economy, he stressed, it’s been up to northern miners to build their own infrastructure.

Baffinland’s Mary River iron ore mine co-owners ArcelorMittal and Nunavut Iron Ore want to replace their hauling road with a 110-kilometre railway to the company’s port at Milne Inlet, where ore gets stockpiled prior to summer shipping to Europe. Now undergoing environmental review, the railway would be part of a proposal to increase extraction from four million tonnes to 6.2 million tonnes annually and finally make the mine profitable. An environmental review already recommended rejection of the increased tonnage proposal, but the final decision rests with Ottawa. (Update: On September 30, 2018, Ottawa approved the increased tonnage application for a one-year trial period.)

The rail line, if approved in its separate application, could be in operation by 2020 or 2021.

That would make it Canada’s only railway north of 60, except for a CN spur line reaching Hay River, NWT, from Alberta and a tourist excursion to Carcross, Yukon, from the Alaska Panhandle town of Skagway. (Also connected by highway to the Yukon, Skagway provides year-round deep-water port facilities for the territory, including Capstone Mining’s (TSX:CS) Minto copper mine.)

Projected for production next year, Amaruq comprises a satellite deposit for Agnico’s Meadowbank gold mine in Nunavut. The company has built a 50-kilometre all-weather road linking Amaruq with Meadowbank’s processing facility and the company’s 110-kilometre all-weather road—by far the territory’s longest road—to Baker Lake. Interestingly that’s Nunavut’s only inland community but the hamlet has seasonal boat access to Chesterfield Inlet on northwestern Hudson Bay. From there, still restricted to the ice-free months, ships can reach Churchill or the St. Lawrence Seaway.

Also primed for 2019 gold production is Agnico’s Meliadine, 290 kilometres southeast of Meadowbank. The company’s 25-kilometre all-weather road connects with summer shipping facilities at Rankin Inlet, 90 klicks south of Chesterfield Inlet.

With its Doris gold operation only five kilometres from the Northwest Passage port of Roberts Bay, TMAC Resources TSX:TMR hopes to mine two more deposits on the same Hope Bay greenstone belt by 2020 and 2022 respectively.

But the most circuitous route from northern mine to market begins in arctic Quebec using trucks, ship, rail and more rail, then another ship. Glencore hauls nickel-copper concentrate about 100 kilometres by road from Raglan to Deception Bay, roughly 2,000 crow-flying kilometres from Quebec City. That’s the next destination, but by water. From there the stuff’s offloaded onto rail for transport to a Sudbury smelter, then back by rail to Quebec City again. Ships then make the trans-Atlantic crossing to Norway.

This is Part 1 of a series about northern infrastructure.

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