Saturday 22nd September 2018

Resource Clips


Posts tagged ‘yukon’

Visual Capitalist: Nine reasons mining investors are looking at Yukon companies

September 18th, 2018

by Jeff Desjardins | posted with permission of Visual Capitalist | September 18, 2018

In the mining industry, location is paramount.

Invest your capital in a jurisdiction that doesn’t respect that investment, or in a place with little geological potential, and it’s possible that it will end up going to waste.

That’s why, when there’s a place on the map that has world-class geology and also a plan for working with miners and new explorers, the money begins to flow to take advantage of that potential.

Why investors are looking at the Yukon

This infographic comes to us from the Yukon Mining Alliance and it shows nine reasons why people are investing in Yukon mining and exploration companies today.

 

Nine reasons mining investors are looking at Yukon companies

 

For resource investors, it is rare to see variables like government investment, jurisdiction, geological potential and investment from major mining companies all aligning.

However, in the Yukon, it seems this may be the case. Here are nine reasons the Yukon is starting to attract more investment capital:

1. Rich history
Mining was central to the Yukon even over a century ago, when over 100,000 fortune-seekers stampeded into the Yukon with the goal of striking it rich in the famous Klondike Gold Rush.

2. Geological profile
In the last decade, there have been major discoveries of gold, silver, copper, zinc and lead in the Yukon—but perhaps most interestingly, only 12% of the Yukon has been staked, making the region highly under-explored. Spending on exploration and development rose from $93 million to $158 million from 2015 to 2017.

3. Major investment
Major mining companies now have a stake in the polymetallic rush. Recent companies to foray into the Yukon include Agnico Eagle Mines TSX:AEM, Barrick Gold TSX:ABX, Coeur Mining NYSE:CDE, Goldcorp TSX:G, Kinross Gold TSX:K and Newmont Mining NYSE:NEM.

4. Leaders in exploration and mining
Juniors in the region are working on new geological ideas as well as new technology to unlock the vast potential of the region.

5. Progressive partnerships
First Nations and the government of Yukon have recently championed a new government-to-government relationship that enables them to be on the exact same page when it comes to mineral projects.

6. Government investment
The Yukon government is investing in new infrastructure via the Resource Gateway project. It also offers the Yukon Mineral Exploration Program, which provides a portion of risk capital to explore and develop mineral projects to an advanced stage.

7. Made in Yukon process
The Yukon government also tries to foster regulatory certainty to create clarity for companies and investors through its customized tri-party process.

8. Infrastructure
The jurisdiction has 5,000 kilometres of government-maintained roads, receives 95% of power from clean hydro, has international and local airports, and has access to three deep-water, ice-free ports.

9. Geopolitical stability
Canada offers geopolitical stability to start with—but with unprecedented cooperation between the territorial government and First Nations, the Yukon is arguably a step above the rest of the country.

Posted with permission of Visual Capitalist.

As ice recedes, the Arctic isn’t prepared for more shipping traffic

September 10th, 2018
As ice recedes, the Arctic isn’t prepared for more shipping traffic

The Canadian Coast Guard icebreaker Louis S. St-Laurent sails past an iceberg in Lancaster Sound in 2008.
(Photo: Jonathan Hayward/Canadian Press)

 

by Edward Struzik | Queen’s University | posted with permission of The Conversation | September 10, 2018

I was aboard the 111-metre Russian research/cruise ship Akademik Ioffe when it came to a violent stop after grounding on a shoal in a remote region of the Gulf of Boothia in Canada’s Arctic. Fortunately, none of the 102 passengers and 24 crew members was injured. Chemical contaminants that may or may not have been pumped out with the bilge water seemed to be minor.

It could have ended up a lot worse. I was on the ship representing Yale Environment 360, which commissioned me to report on climate change in the Arctic and the research that scientists and students with the U.S. National Foundation-sponsored Northwest Passage Project were to be conducting on that three-week voyage.

It took nearly nine hours for a Hercules aircraft to fly in from the Canadian National Defence Joint Rescue Centre in Trenton, Ontario, 12 hours for another DND plane to come in from Winnipeg and 20 hours for a Canadian Coast Guard helicopter to fly over. By then we were boarding the Akademik Vavilov, a Russian sister ship that had come to the rescue.

As ice recedes, the Arctic isn’t prepared for more shipping traffic

Passengers aboard the Russian research/cruise ship Akademik Ioffe
watch a Canadian military aircraft fly overhead as they wait to be
rescued after running aground on a shoal in the Arctic.
(Photo: Edward Struzik)

Dangerous scenarios

Had the weather not worked in our favour and had there been thick ice such as the kind we had sailed through hours earlier, we would have faced a number of challenging and potentially dangerous scenarios.

Powerful winds could have spun us around on that rock, possibly ripping a hole into the hull that might have been bigger than the one that was presumably taking in the water we saw being pumped out of the ship. Thick ice grinding up against the ship would have made it almost impossible to get everyone off into lifeboats.

I had warned about a scenario like this in my book Future Arctic, Field Notes from A World On The Edge. Only 10% of the Arctic Ocean in Canada, and less than 2% of the Arctic Ocean in the United States, is charted. Only 25% of the Canadian paper charts are deemed to be good. Some of the U.S. charts go back to the days of captains Cook and Vancouver and the time when the Russians owned Alaska.

I’m not the only one who has been raising the red flag. Arctic experts such as Rob Huebert, Whitney Lackenbauer, Michael Byers and the federal Commissioner of the Environment and Sustainable Development have all highlighted the rising risks of shipping in the Arctic, and the formidable challenges associated with timely search and rescues and the staging of oil spill cleanups.

Groundings have increased

Since the catastrophic grounding of the Exxon Valdez off the coast of Alaska in 1989, the list of groundings of fuel tankers, drilling ships, cargo ships and passenger vessels plying the waters of the North American Arctic has risen significantly.

Most notable among them were the cruise ship Hanseatic which ran aground in the Canadian Arctic in 1996, the Clipper Adventurer which ran aground in Coronation Gulf in 2010 and the Nanny, a fuel tanker that ran aground near Baker Lake in 2012 in an area where marine investigators say there is little margin for error. It was the fifth grounding in that area since 2007.

As sea ice continues to recede in the Arctic, it provides cruise, cargo and tanker companies with new opportunities, and emboldens small vessels to venture into uncharted areas. A recent analysis suggests that the average arctic ship route has moved more than 290 kilometres closer to the North Pole in the past seven years. Mines such as the one at Mary River on Baffin Island use ships to transport their ore. Bigger cruise ships such as the Crystal Serenity that sailed through the Northwest Passage with 1,000 passengers and 600 crew members in 2017 are beginning to test these opportunities.

No rescue ports

There are other factors portending future disasters. There are no ports in the North American Arctic from which to stage a rescue or an oil spill cleanup.

Icebreakers are few and far between. The U.S. Coast Guard has just one in operation. Canada has a few more, but many of them are well on their way to being decommissioned.

Weather forecasting capabilities are poor due to the shortage of meteorological stations and the increasingly unpredictable nature of arctic weather. Powerful summer storms such as the record-breaking cyclone that tore through the Arctic in 2012 are on the increase. Stable shorefast ice is letting go in unpredictable ways.

Our ship, for example, was forced to make a last-minute change to the starting route because of ice that was blocking passage into Resolute Bay. Recognizing the challenges, two cruise companies reportedly cancelled their expeditions this year on short notice.

There is a lot that can and needs to be done to reduce future risks. The Canadian government could compel ships to use forward-looking multi-beam sonar with Bluetooth technology. Charts can and need to be updated rapidly. More weather stations are needed. The dumping of bilge water should be banned. A search and rescue team should be seasonally based in a strategic part of the Arctic. An arctic port is needed sooner rather than later.

There is also a need to determine what impact future shipping will have on beluga and narwhal migrations.

There is time to play catch-up because there are few signs that shipping companies are in a hurry to exploit the shortcuts that the Northwest Passage offers between the Atlantic and the Pacific. But the number of partial transits will increase as cruise ships, mining companies and future oil and gas activity focus their eyes on the Arctic.

As things stand now, we are not prepared.

This article was originally published in The Conversation.

Related:

The Conversation

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. 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.

Related reading:

And the mania continues

August 10th, 2018

How gold rushes helped make the modern world

by Benjamin Wilson Mountford/La Trobe University and Stephen Tuffnell/University of Oxford | posted with permission of The Conversation

How gold rushes helped make the modern world

Detail from an 1871 lithograph by Currier & Ives portraying the Californian goldfields in 1849.

 

This year is the 170th anniversary of one of the most significant events in world history: the discovery of gold at Sutter’s Mill in Coloma, California. On January 24, 1848, while inspecting a mill race for his employer John Sutter, James Marshall glimpsed something glimmering in the cold winter water. “Boys,” he announced, brandishing a nugget to his fellow workers, “I believe I have found a gold mine!”

Marshall had pulled the starting trigger on a global rush that set the world in motion. The impact was sudden—and dramatic. In 1848 California’s non-Indian population was around 14,000; it soared to almost 100,000 by the end of 1849, and to 300,000 by the end of 1853. Some of these people now stare back at us enigmatically through daguerreotypes and tintypes. From Mexico and the Hawaiian Islands; from South and Central America; from Australia and New Zealand; from Southeastern China; from Western and Eastern Europe, arrivals made their way to the golden state.

How gold rushes helped make the modern world

JCF Johnson’s Euchre in the Bush, circa 1867, depicts a card game
in a hut on the Victorian goldfields in the 1860s. (Oil on canvas
mounted on board, courtesy of the Art Gallery of Ballarat)

Looking back later, Mark Twain famously described those who rushed for gold as

a driving, vigorous restless population … an assemblage of two hundred thousand young men—not simpering, dainty, kid-gloved weaklings, but stalwart, muscular, dauntless young braves…

“The only population of the kind that the world has ever seen gathered together,” Twain reflected, it was “not likely that the world will ever see its like again.”

Arriving at Ballarat in 1895, Twain saw first-hand the incredible economic, political and social legacies of the Australian gold rushes, which had begun in 1851 and triggered a second global scramble in pursuit of the precious yellow mineral.

“The smaller discoveries made in the colony of New South Wales three months before,” he observed, “had already started emigrants towards Australia; they had been coming as a stream.” But with the discovery of Victoria’s fabulous gold reserves, which were literally Californian in scale, “they came as a flood.”

Between Sutter’s Mill in January 1848, and the Klondike in the late 1890s, the 19th century was regularly subject to such flooding. Across Australasia, Russia, North America and Southern Africa, 19th century gold discoveries triggered great tidal waves of human, material and financial movement. New goldfields were inundated by fresh arrivals from around the globe: miners and merchants, bankers and builders, engineers and entrepreneurs, farmers and fossickers, priests and prostitutes, saints and sinners.

How gold rushes helped make the modern world

A nugget believed to be the first piece of gold
discovered in 1848 at Sutter’s Mill in California.
(Smithsonian National Museum of American History)

As the force of the initial wave began to recede, many drifted back to more settled lives in the lands from which they hailed. Others found themselves marooned, and so put down roots in the golden states. Others still, having managed to ride the momentum of the gold wave further inland, toiled on new mineral fields, new farm and pastoral lands, and built settlements, towns and cities. Others again, little attracted to the idea of settling, caught the backwash out across the ocean—and simply kept rushing.

From 1851, for instance, as the golden tide swept towards NSW and Victoria, some 10,000 fortune seekers left North America and bobbed around in the wash to be deposited in Britain’s Antipodean colonies alongside fellow diggers from all over the world.

Gold and global history

The discovery of the precious metal at Sutter’s Mill in January 1848 was a turning point in global history. The rush for gold redirected the technologies of communication and transportation, and accelerated and expanded the reach of the American and British Empires.

Telegraph wires, steamships and railroads followed in their wake; minor ports became major international metropolises for goods and migrants (such as Melbourne and San Francisco) and interior towns and camps became instant cities (think Johannesburg, Denver and Boise). This development was accompanied by accelerated mobility—of goods, people, credit—and anxieties over the erosion of middle class mores around respectability and domesticity.

But gold’s new global connections also brought new forms of destruction and exclusion. The human, economic and cultural waves that swept through the gold regions could be profoundly destructive to Indigenous and other settled communities, and to the natural environment upon which their material, cultural and social lives depended. Many of the world’s environments are gold rush landscapes, violently transformed by excavation, piles of tailings and the reconfiguration of rivers.

How gold rushes helped make the modern world

The Earth, at the End of the Diggings.
(Courtesy, Ballaarat Mechanics’ Institute)

As early as 1849, Punch magazine depicted the spectacle of the earth being hollowed out by gold mining. In the “jaundice regions of California,” the great London journal satirised: “The crust of the earth is already nearly gone … those who wish to pick up the crumbs must proceed at once to California.” As a result, the world appeared to be tipping off its axis.

In the U.S. and beyond, scholars, museum curators and many family historians have shown us that despite the overwhelmingly male populations of the gold regions, we cannot understand their history as simply “pale and male.” Chinese miners alone constituted more than 25% of the world’s goldseekers, and they now jostle with white miners alongside women, Indigenous and other minority communities in our understanding of the rushes—just as they did on the diggings themselves.

Rushes in the present

The gold rushes are not mere historic footnotes—they continue to influence the world in which we live today. Short-term profits have yielded long-term loss. Gold rush pollution has been just as enduring as the gold rushes’ cultural legacy. Historic pollution has had long-range impacts that environmental agencies and businesses alike continue to grapple with.

At the abandoned Berkley pit mine in Butte, Montana, the water is so saturated with heavy metals that copper can be extracted directly from it. Illegal mining in the Amazon is adding to the pressures on delicate ecosystems and fragile communities struggling to adapt to climate change.

The phenomenon of rushing is hardly alien to the modern world either—shale gas fracking is an industry of rushes. In the U.S., the industry has transformed Williston, North Dakota, a city of high rents, ad hoc urban development and an overwhelmingly young male population—quintessential features of the gold rush city.

In September last year, the Wall Street Journal reported that a new gold rush was underway in Texas: for sand, the vital ingredient in the compound of chemicals and water that is blasted underground to open energy-bearing rock. A rush of community action against fracking’s contamination of groundwater has followed.

The world of the gold rushes, then, is not a distant era of interest only to historians. For better or worse, the rushes are a foundation of many of the patterns of economic, industrial and environmental change central to our modern-day world of movement.

Benjamin Mountford and Stephen Tuffnell’s forthcoming edited collection A Global History of Gold Rushes will be published by University of California Press in October 2018. A sample of their work can also be found in the forthcoming volume Pay Dirt! New Discoveries on the Victorian Goldfields (Ballarat Heritage Services, 2018).

Benjamin Wilson Mountford, David Myers Research Fellow in History, La Trobe University and Stephen Tuffnell, Associate Professor of Modern U.S. History, University of Oxford

This article was originally published on The Conversation. Read the original article.

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Fabled Klondike gateway sold to cruise ship line for US$290 million

June 7th, 2018

by Greg Klein | June 7, 2018

It’s been a local fixture for decades but a company that panders to pampered argonauts will officially take over the Alaska panhandle port of Skagway. This of course was the landing point for an earlier, much hardier breed nicknamed after Jason and his buddies of Golden Fleece fame. The Klondike argonauts also sailed storm-tossed seas but, while passing through this little town seeking gold, often got fleeced themselves.

Fabled Klondike gateway sold to cruise ship line for US$290 million

From frontier hellhole to tourist mecca,
Skagway trades on its Klondike connection.
(Photo: Skagway Convention and Visitors Bureau)

Such was the case when frontier bad guy Soapy Smith and his gang ran Skagway like a criminal fiefdom. They succeeded for a while, but it was right on the docks in 1898 that Smith and vigilante Frank Reid shot and killed each other. Their mortal remains rest in a graveyard on the edge of town.

Skagway was one of two main ports of arrival for the Klondike, along with Dyea, about five kilometres northwest. The latter town led to the Chilkoot Trail, where desperate hopefuls would make something like 50 trips of up to six hours each climbing to a North West Mounted Police checkpoint to carry supplies sufficient to survive a Yukon winter.

The rival route led to the White Pass, “a hellish place even for those inured to hardship and disappointment by having survived the different hell that was Skagway,” wrote Douglas Fetherling in The Gold Crusades. Railway construction began a few months before Smith’s death, with the line reaching Whitehorse in 1900. There, the White Pass and Yukon Route transferred its goods and passengers onto riverboats towards Dawson City.

In the 1950s the WP&YR became a world innovator by introducing the concept of containerized freight handling, loading the cargo from the world’s first container ship to rail at Skagway and then truck at Whitehorse. The distinctive containers can still be seen around Skagway, serving various purposes such as garden sheds.

The WP&YR’s fortunes rose and fell with those of the mining industry, recounted Marina McCready in Gateway to Gold. Competition arrived in 1978 from a new Whitehorse-to-Skagway highway. A mining slump shut down the service in 1982, but it reopened in 1988 to offer summer sightseeing excursions. They still run 110 kilometres between the little downtown and Carcross, Yukon, passing through a corner of northwestern British Columbia.

Today “dat tourist trap Skagway,” as a character in Ken Kesey’s Sailor Song called it, features numerous restored turn-of-the-century buildings, some of them transplanted from Dyea. Part of the town comprises the Klondike Gold Rush National Historical Park, which in 1998 became an international site managed by both the U.S. and Canada.

From May to September the narrow docks host cruise ships magnificent for their stature but still dwarfed by mountains rising suddenly to the north and south.

On June 6 TWC Enterprises TSX:TWC announced an agreement to sell the WP&YR’s “complete rail, port and merchandise operations” to Carnival Corporation & plc for US$290 million. Debt estimated between $70 million and $80 million will be deducted from the price. TWC may take up to $84 million of the proceeds in Carnival shares. Expected to close by July 31, the transaction would put three docks and four cruise ship berths under a single cruise ship line.

The port also ships concentrate from Yukon’s only hardrock mining operation, the Minto copper-gold-silver mine held by Capstone Mining TSX:CS but subject to a purchase agreement with Pembridge Resources plc. Proponents of some would-be mines in B.C.’s Golden Triangle contemplate shipment through Skagway.

Canadian exploration spending projected to rise 6%; Manitoba contradicts its Fraser Institute ranking

March 14th, 2018

by Greg Klein | March 14, 2018

It’s hardly a boom time scenario but mineral exploration within Canada should see a healthy 6% spending increase this year, according to recent federal government figures. Info supplied by companies shows an estimated total of $2.238 billion planned for exploration and deposit appraisal this year, compared with $2.111 billion in 2017. The second annual increase in a row, it’s far less dramatic than last year’s 29.6% leap.

Canadian exploration spending projected to rise 6% Manitoba contradicts its Fraser Institute ranking

The Natural Resources Canada survey compares preliminary numbers for metals and non-metals from last year with projected budgets for 2018.

Together Quebec and Ontario account for more than half the spending, with la belle province getting 27.3% of last year’s total and 29.3% of this year’s, while Ontario got 24.9% and 26.5%.

Some runners-up were British Columbia (12.2% of Canada’s total in 2017 and 13% in 2018), Saskatchewan (9% and 7.4%) and Yukon (7.8% and 7.7%).

Proportionately Manitoba enjoyed the greatest increase, a 42% jump from $38.5 million to $54.7 million, in a performance at odds with the province’s most recent Fraser Institute ranking. Less spectacularly but still impressive, the figures show Quebec climbing 13.9% from $576.5 million to $656.7 million. British Columbia gets a 12.9% increase from $257.7 million to $290.9 million, and Ontario 12.7% from $526.2 million to $593 million.

Some disappointments include Saskatchewan, falling 13% from $189.9 million to $165.1 million. Nunavut plunged 34.6% from $169.3 million to $110.7 million.

Nunavut has to address its land access issues. In the NWT, work on the proposed Mineral Resources Act and other legislation must be to improve the investment climate. Settling long-outstanding land claims and reducing the over 30% of lands off limits to development would also help, as would proactive marketing by indigenous governments.—Gary Vivian, president, NWT and
Nunavut Chamber of Mines

Addressing the territory’s performance along with its neighbour’s 10% drop, Northwest Territories and Nunavut Chamber of Mines president Gary Vivian said, “Nunavut has to address its land access issues. In the NWT, work on the proposed Mineral Resources Act and other legislation must be to improve the investment climate. Settling long-outstanding land claims and reducing the over 30% of lands off limits to development would also help, as would proactive marketing by indigenous governments.”

Combining figures for mine complex development with exploration and deposit appraisal, this year’s projected country-wide total rises 8.9% to $14.9 billion, the highest number in the four years of data released in this survey.

Commodities getting the most money are precious metals, although at a nearly 1.5% decrease to $1.35 billion this year from $1.37 billion last year. A more drastic drop was uranium, down 23.4% to $103.7 million. Base metals saw a 38.4% surge to $406.9 million. Coal’s projected for a 31.1% boost to $70.8 million.

Exploration and deposit appraisal expenses considered for the survey include field work, engineering, economics, feasibility studies, the environment, land access and associated general expenses. Natural Resources Canada did not consider work for extensions of known reserves.

Recent studies from PricewaterhouseCoopers showed a marked improvement in junior mining company finances and a relatively stable, if cautious, ambience for more senior Canadian companies.

Covering a different period with different methodology than Natural Resources Canada, a study by EY, the B.C. government and the Association for Mineral Exploration calculated a 20% increase in B.C. exploration spending from 2016 to 2017.

See the Natural Resources Canada survey here.

Mining commentator Stan Sudol says undue emphasis on the gold rushes stifles Canadians’ understanding of a vital industry

November 10th, 2017

…Read more

Canadians need to get past the Klondike to understand mining’s contributions: Stan Sudol

October 13th, 2017

by Greg Klein | October 13, 2017

Rights offerings to be streamlined, says CSA

Like the nugget in this prospector’s hand, the
Klondike’s place in history looms unrealistically large.

The Fraser, Cariboo and Klondike gold rushes undoubtedly played an important nation-building role, with the latter becoming especially famous “thanks to terrific public relations from writers like Jack London, Pierre Berton and Robert Service,” says Stan Sudol. But how important were those events when the Yukon coughed up about 12 million gold ounces, “small change compared to the Timmins camp which is currently at 73 million ounces and counting!”

In a speech to the Canadian Business History Association Conference the Sudbury native and communications consultant/mining strategist/speech writer/mining blogger related how Ontario’s gold and base metals discoveries far surpassed the western gold rushes for their importance to the Canadian economy. “Notwithstanding the historical hype of the Klondike the two most important mining events in our history are the discoveries of the Sudbury nickel mines in 1883 and the Cobalt silver boom of 1903.”

And, he notes, while London, Berton and Service missed out on these developments, Sudbury did attract the attention of Stompin’ Tom Connors.

Sudol outlines the history of the Ontario and Quebec camps, looking at their social and environmental impacts as well as economic contributions. His compelling account takes readers up to the present, as mining in the Northwest Territories and Nunavut helps create an indigenous middle class.

Read it here on the Republic of Mining.

At a regulatory crossroads

October 4th, 2017

It’s time to fix federally induced problems, says the Mining Association of Canada

by Greg Klein

The fundamentals behind the last supercycle remain in place, insists Pierre Gratton. Yet the Mining Association of Canada president/CEO warns that the country has lost ground as a global industry leader. While the current upswing continues, the transition to a cleaner, lower-carbon future will call for even more mineable commodities. Whether Canada participates to its fullest potential, however, depends largely on policies directed by Ottawa.

Addressing a 230-strong Greater Vancouver Board of Trade audience on September 27, Gratton noted that by 2015 Canada lost its first-place spot for exploration investment. The usurper was Australia, which proved itself “much more strategic and successful over the past decade.” Meanwhile this country’s list of active projects has fallen to nearly half its 2011 peak of 2,700. Only two new projects came up for federal environmental assessment in 2016, an historic low. “We’ve got world class deposits sitting idle,” he added, citing Ontario’s Ring of Fire, Nunavut’s Izok Corridor and British Columbia’s New Prosperity.

It’s time to fix federally induced problems, says the Mining Association of Canada

Pierre Gratton: “Hopefully we’ll get it right this time, we’ll lock
it in, we’ll know what the rules are and get down to business.”
(Photo: Matt Borck, courtesy Greater Vancouver Board of Trade.)

Yet opportunities have been improving, he maintained, and not just because of stronger commodity prices. In addition to continued growth among emerging economies, carbon-reducing measures call for new technologies that require more mining products. That’s the case for electrified transportation, wind and solar generation, and energy storage.

“The transition to a low-carbon future is not years away from now—it has already started and it’s accelerating at a rapid pace.” Unless Canada turns that to its competitive advantage, “we will lose this opportunity to other countries… It’s going to be us, Australia or someone else.”

Moreover, Canada can produce these commodities “as a leader in sustainability.” This country “already operates some of the lowest-emitting, highest-tech and most socially responsible mines in the world.” Gratton credited companies that implemented MAC’s Towards Sustainable Mining program with reducing greenhouse gas emissions. And altruism can be rewarding: “Our Canadian-made mining standard has caught the attention of Apple and other global companies that see it as a program robust enough to demonstrate responsible sourcing.”

But if environmental progress bodes well for Canadian mining, the policy environment remains uncertain. The 2012 regulatory reforms of the previous Conservative government lost both public and investor confidence, Gratton argued.

Ottawa now needs to put “the principle of one project/one review squarely into action. We need a federal process that no longer places an unfair and unequal burden on Canada’s mining sector alone, which has sadly been the case since 2012.”

For a couple of these pieces, like the Fisheries Act and the Navigation Protection Act, I think the mining industry is probably going to come out fine. The Environmental Assessment Act, I don’t know.

The Liberals, he said, are “committed to review and replace all of the federal reforms of the previous Harper government…. For a couple of these pieces, like the Fisheries Act and the Navigation Protection Act, I think the mining industry is probably going to come out fine. The Environmental Assessment Act, I don’t know. At this point it is still so much in flux it is hard to know exactly where this will land.”

Six years of regulatory uncertainty with the prospect of more to come contributes to “this question mark in Canada. And hopefully we’ll get it right this time, we’ll lock it in, we’ll know what the rules are and get down to business.”

Returning to climate change, Gratton noted some industry initiatives, including wind energy reducing diesel dependency at Diavik and Raglan, and the transformation of B.C.’s former Sullivan mine into a community-owned solar plant that sells electricity to the grid. Goldcorp’s (TSX:G) Borden project, anticipated for 2019 production, would be Canada’s first all-electric underground mine.

Not only would the battery-powered fleet cut emissions, it “will significantly reduce ventilation costs,” Gratton stated.

“But we need to do more to spur innovation.” MAC proposes government support for innovation superclusters, a possible “catalyst to achieve transformative outcomes for our industry and help re-establish Canada as a global leader for mining innovation.”

Northern infrastructure, bringing both roads and electricity to isolated areas, again complements both the industry and the environment. Gratton pointed to the Northwest Territories’ planned $150-million all-season road to the Tlicho community, and the federal/Yukon $360-million road that would access the Coffee and Casino projects, two potential mines that would “contribute billions in new investment … and thousands of direct and indirect jobs.”

With federal funding available for green infrastructure, here’s an opportunity to take more communities off diesel, fully open up B.C.’s Golden Triangle and deliver to Yukon and the projects up there reliable, clean energy.

Referring to the 344-kilometre extension of B.C.’s Northwest Transmission Line in 2014, Gratton said: “I’ve a pitch for you today. Why not finish the job and take that line all the way to the Yukon? With federal funding available for green infrastructure, here’s an opportunity to take more communities off diesel, fully open up B.C.’s Golden Triangle and deliver to Yukon and the projects up there reliable, clean energy.”

Undiscouraged by the rugged 800-kilometre gap between the provincial and territorial grids, he added, “I was meeting recently with Yukon officials and they’re very interested in this. I remember also that Premier Horgan, when he was Energy and Mines critic, was a big champion of this project too. So here’s a nation-building project that maybe he can get behind.”

“I could talk about many other things as well, but the key takeaway is that we need to reposition Canada and enhance our competiveness going forward. And it’s critical because other countries are doing the same.”

But in response to an audience question about native consent, was he optimistic or euphemistic? “We’re not in a world of veto,” Gratton insisted. “We’re in a world of deep and meaningful engagement.”

Speaking with ResourceClips.com, he said MAC’s supercluster proposal could create regional centres for excellence focusing on mining and exploration in Sudbury and Vancouver, processing in Quebec City and oil sands in Edmonton.

There are some issues where we’ve made real progress with this new government that we hadn’t been able to make under the previous government.

Although it’s too early to evaluate the Liberals’ performance, the former Chretien-era government communications guy did say, “There are some issues where we’ve made real progress with this new government that we hadn’t been able to make under the previous government.”

Environmental permitting delays, he pointed out, “have been horrendous. At times it takes five years after an environmental assessment before you get your permit. The previous government announced a policy that would shorten that to eight months but didn’t do anything to implement it. This government has actually put in place the tools to make it happen. So we are seeing those timelines shrink.”

Additionally Ottawa now consults with MAC much more than did the previous government. The Conservatives’ lack of dialogue, he stated, “could be why they got things wrong.”

Mining supporters and critics speak out as government ministers meet in New Brunswick

August 14th, 2017

by Greg Klein | August 14, 2017

This is the week that the country’s mining ministers convene with their counterparts from all Canadian jurisdictions. Taking place this year in St. Andrews, New Brunswick, the Energy and Mines Ministers’ Conference will “discuss shared priorities for collaborative action to advance energy and mining development across the country.” Participants will also hear from the industry and its critics, with the latter highlighting NB’s proposed Sisson tungsten-molybdenum open pit mine.

The Canadian Mineral Industry Federation proposed reforms in six key areas that would expand the industry’s “vast socio-economic contributions to Canadians.” Not surprisingly, regulatory streamlining topped the list. The group called for an “effective, timely and co-ordinated regulatory process, from pre-environmental assessment to post-EA permitting.”

Mining supporters and critics make voices heard as government ministers meet in New Brunswick

Workers at the Sisson project, one of the world’s largest
undeveloped tungsten deposits and now site of a protest camp.

Proportionately Canada’s largest private sector employer of natives, the industry called on governments to enhance indigenous participation through “investments in health, education and skills training, and by implementing government resource revenue-sharing mechanisms.”

Looking at climate change, the CMIF warned that poorly crafted regulations could push mining “to competitor countries with less stringent climate change policies.” The group also called on governments to acknowledge the challenges of working in remote regions dependent on diesel fuel.

On a related topic, the CMIF encouraged governments to provide isolated regions with better infrastructure to “benefit both industry and local and indigenous communities.”

Concern about a shrinking land base prompted the CMIF to recommend that “mineral potential is factored into all land withdrawal decision-making processes.”

The group also called for government and industry to collaborate on a Clean Resources Innovation Supercluster, which would concentrate industry, R&D and associated small and medium-sized enterprises in one area to attract investment and develop synergies.

A coalition of native and advocacy groups, however, challenged the conference to make good on this year’s theme of Clean Growth.

“We’re not against ‘clean growth’ or ‘clean energy’ but these must not be empty words,” said Jacinda Mack, co-ordinator of First Nations Women Advocating for Responsible Mining and a community member affected by British Columbia’s 2014 Mount Polley tailings dam collapse. “We’re here to alert the public and our governments that there are still serious problems with the way mining is done in this country, and that there can’t be any clean growth or clean energy without first having clean mining.”

The coalition also emphasized its opposition to the proposed Sisson open pit mine, about 330 kilometres by road from the conference location. A partnership of Northcliff Resources TSX:NCF and a subsidiary of family-owned Todd Corp, the plan received federal environmental approval in June. Proponents describe Sisson as one of the world’s largest undeveloped tungsten deposits, with an estimated 27-year lifespan.

But a newly released report charges that the project’s “mining waste facility design is business-as-usual, using the same facility design and water cover approach used at the failed Mount Polley mine.”

Members of the Maliseet First Nations have occupied a protest camp at Sisson since early July. In February, chiefs of the six Maliseet nations signed a multi-million-dollar revenue-sharing deal with the province, CBC reported. But five of the chiefs later “denounced” the agreement, the network stated.

The coalition estimates liability for contaminated mine sites across Canada to surpass $10 billion, a figure that “can easily triple or quadruple once the true costs for site cleanup and risks from spills and failures are considered.”

Two newly elected governments join the conference this year. In November the Yukon Liberals returned to power after a 14-year hiatus. Last month B.C.’s NDP was sworn in as the province’s new government after gaining support from the three-MLA Green Party to vote down the minority BC Liberals’ Throne Speech.