Crème de la crème get creamed for charity
$7.5m gift led by Teck Cominco creates Norman B. Keevil Institute of Mining Engineering at UBC
11 week strike at Ekati ends in tentative agreement
Concrete success story in northern Saskatchewan
Development of plantinum mine near Ontario reserve leads to $10 billion lawsuit
Hupascasath and Ucluelet First Nations partner with Polaris Minerals
Northgate and Tse Keh Nay (3 Nations) sign Kemess South Coope
Fortune Minerals commences underground phase of NICO bulk sample program
Massive cleanup needed at Faro mine could cost $1 billion
Ontario’s diamond rush kicks off with Victor mine construction
By Shirley Collingridge
What is it like to be an Aboriginal woman in a man’s world? The COGEMA Resources Inc. industrial instrumentation technologist/mechanic knows first-hand details about the challenges and rewards of such a role. Kami Schneider-Ross is accustomed to doing – well – the uncustomary.
“Sometimes I feel like I am two different people,” said Schneider-Ross. “I am the work Kami and the home Kami.”
“When I am at work, I act like one of the guys. I demand respect and do not admit to any weakness. I try to talk on the same level as the guys not to make them feel like they have to walk on egg shells around me,” she said. “I know that men will be men and you just have to not take offence. I am a firm believer that everyone has control on their own feelings. No one can take anything from you if you do not give them the power to. I win over people with humour.”
“Home Kami is a lady in every aspect,” she added, “I dress up and am very polite proper and display a lot of emotion. At home, I do not care if people see my weakness.”
Born into the Montreal Lake Cree Nation on Christmas day, Schneider-Ross was named “Kami” – a traditionally male name in many Middle Eastern cultures. Growing up in La Ronge, Schneider-Ross divided her time between studying and sports, equally relishing the challenge of a tough game or a tough exam.
Uncertain what to do after graduation, Schneider-Ross tried her hand at various venues.
She enrolled in the College of Arts and Science but, “I felt like this was a waste of time and money because I did not know what to get into,” said Schneider-Ross. “It was after a summer job for Prince Albert Grand Council, I was referred to go into Environmental Health. This occupation just was not for me.”
Wanting to return home, Schneider-Ross asked her former volleyball coach, an employee at Cameco Corporation, whether he could recommend her for a job. His reply, said Schneider-Ross, was, “Not until you take this course because we need instrumentation really badly. I know you are the type of person who would be excellent in this job. I know you are smart enough. I know your attitude. I know you’d work well in this environment.”
So Schneider-Ross hit the books again, this time to study a traditionally male occupation. After completing the two-year course at La Ronge, Northlands College, she began the four-year apprenticeship period.
“My first instrumentation placement was in McClean Lake. Then I went to Cameco,” she said. “I went to the oil patch just to see a variety of different processes. I did construction there and then I went to the instrumentation shop and worked on contract for a bit,” she said.
For the past two years, she has worked as an industrial instrumentation technologist/mechanic at COGEMA’s McClean Lake minesite in northern Saskatchewan, in preparation for her journeyman’s exam in instrumentation.
COGEMA is a great place to work, says Schneider-Ross but, she cautions, “I don’t want to sugar-coat anything. Being an Aboriginal woman in a trade that’s male dominant - it is a hard road.”
Treatment varies depending on the individual employees. “I have been places where the guys have been great and treated me well and would give me great advice on how to tackle problems that arise,” she said.
Other co-workers can be insecure and unhelpful. “There still is that old school mentality in some places,” she said. Even in the old school bastion, Schneider Ross finds the positive, “I find that being on my own and not having anyone to rely on for advice or help has increased my ability to challenge myself and excel in my trade,” she said.
Still, Schneider-Ross never forgets she continually must prove herself. “I’m a woman in a man’s world,” she said. “So I have to work 110% to prove to my supervisors and my peers that, yes I may be a woman but I can do the job just as well as anyone else.”
“There are the tough times, but the respect and rewards that you get from every week and just knowing that you did your job well is glorious,” she added. “It’ll make up for any bad times that there are.”
What if someone behaves as a sexist? “I am a firm believer that anything that comes up, I can deal with myself,” replied Schneider-Ross. “I knew going into this that in any trade, there are always obstacles when a woman breaks into a man’s domain. There are procedures in place but knock on wood, I’ve never had to go that route.”
Having to prove herself eleven hours a day on a seven-days-in-seven-days-out shift can be trying. Nevertheless, Schneider-Ross finds her current job much more satisfying than her previous position. “I was an environmental health officer,” she said. “You knew the problem and you would write on little tickets and say ‘fix the problem.’ But this is hands-on and you get to fix problems yourself.”
She repairs controllers, valves, level indicators, and more. “Instrumentation deals with anything that measures and controls,” she explained. “That’s everything from flow to temperature to pH’s – levels, pressures. It’s the whole control system – basically the brains of the mine.”
“We calibrate the instruments to make sure they are reading right, and we install them,” she added. “We also take care of computer systems which control all of these devices out in the field.”
Besides the pleasure of hands-on repair, says Schneider-Ross, another reward is job security. “Trades seem to be where it’s at right now for employment,” she said. “They’re really in high demand and they’ll get more in demand as they expand in the future because everyone is retiring.”
The most fulfilling aspect of her career is that, “No two days are the same. It’s not routine work. Everyday is a learning experience. There is always a new instrument, a new problem,” she said.
Schneider-Ross’ shift allows her to travel frequently. In fact, she recently visited Seattle, “looking for a new sports car - an Audi TT convertible, silver,” she said. “I thought I may as well spoil myself.”
“Anything in trades is very well paying,” she added. “In that way, I love this job because it allows me to do everything I want to do – financially and the time we have off.”
Schneider-Ross encourages others to try the less traditional, and to forge ahead regardless of challenges. She says she finds inspiration in this bon mot, “You cannot follow where the path may lead. Go instead where there is no path and leave a trail.” (author unknown)
Her family gave her the tools to face new challenges. “They always led me to believe in myself and never forget where I came from and never give up,” she said. “They always instilled in me to look to the future and never look back.”
To others thinking about entering her field, Schneider-Ross says, “I’m a firm believer, if you can dream it, you can succeed in it. It’s never too late to be what you always wanted to be.”
Schneider-Ross concludes with this advice especially for women: “You can do whatever you dream. It might be tough but even flowers have to go through dirt!”
By Scott Jones
General Manager Project Development
Taseko Mines Limited
Taseko Mines, operators of the Gibraltar Mine, are proposing to develop a new gold-copper mine 125 kilometers southwest of Williams Lake.
If the Federal and Provincial governments give the go-ahead to build the mine and it remains economic to do so, it will become one of the largest economic engines in the Cariboo region and a significant contributor to the provincial economy.
Called Prosperity, the mineral deposit is a large gold-copper resource with the potential to generate:
• $800 million in capital investment;
• 550 direct and 1,280 indirect jobs annually;
• 22 years of economic development.
Building a large metal mine requires extensive technical engineering, scientific analysis and financial evaluation. The process can sometimes take years to complete. Whether Prosperity will be built or not boils down to three basic factors:
a) The economic viability of the project – both construction and operation
b) Being granted regulatory approval to build
c) Public acceptance – the support of First Nations and local communities
At our existing Gibraltar Mine, our approach has always been to ensure that local communities benefit fully from the work we do. We employ 274 people with an annual payroll of $22.6 million. This year we will invest in excess of $65 million on new equipment upgrades and other improvements to ensure Gibraltar’s long term competitiveness and viability. If successful in gaining approval to build the Prosperity mine our approach will be the same.
We believe the public should have as much information as possible about the Prosperity project and will encourage and facilitate broad public consultation, formal and informal, at every opportunity.
The Prosperity Project will be reviewed under the B.C. Environmental Assessment Act and the Canadian Environmental Assessment Act. We are presently updating the extensive economic evaluation and environmental assessment work undertaken in the 1990’s. The work, largely technical and scientific in nature, will continue into 2007.
The environmental assessment process is far-reaching. It assembles all aspects of environmental and socio-economic impact, including input and consultation with communities of interest, to allow a fair and open review by government and the public. No other permits can be issued until an Environmental Assessment Certificate has first been granted.
We believe strongly in the integrity of the environmental assessment process and our ultimate success will be determined by our ability to fully meet all of its requirements.
Crème de la crème get creamed for charity
By Shirley Collingridge
Local celebrities first took a pie in the face for the BC Children’s Hospital (BCCH) Foundation in 1998, when Teck Cominco rolled out its tasty charity “Mining for Miracles.” This year, participants again substituted pie pans for gold pans and bedpans, as the mining, business and political upper crust put their best faces forward to receive the sticky missiles.
In its first eight years, the fund-raiser turned over a huge profit, bringing in more than $7.5 million. This year, the event raised even more dough. The Miracle goal was to ice the cake by topping last year’s $916,963. At $1,083,000, that icing topped the cake plenty high.
“The pie of the president and CEO from Teck Cominco was worth $500 thousand – an amazing, amazing amount,” said an awestruck Shannon Hendrickson, officer manager and assistant to the president at NovaGold Resources Inc., whose company reached deep into its own pockets for the event. Hendrickson was heavily involved in her own company’s participation; she knows firsthand how much effort it takes to achieve the heights.
Hendrickson was right - Teck Cominco’s Don Lindsay’s pie was amazing. In fact, it topped all others, earning a plump $542,760 when Ian Telfer, president and CEO of Goldcorp Inc., zinged Lindsay with the creamy projectile metaphorically bulging with bucks. To achieve this fat sum, Teck Cominco once again matched all funds donated through its company.
With the activities becoming a major source of public and industry-supported funding for the hospital, it seems everyone wants to get in on the festivities. Burlesque dancers swirled, the giant Mining for Miracles charity bear frolicked, and music and entertainment filled the streets. Veteran broadcaster Wayne Cox, one of Global TV’s most popular personalities, stirred his talents into the mix.
Global Television served up a marathon from June 3-4 where the event’s chairperson Graeme Currie, accompanied by a host of Mining for Miracle volunteers and special guests, presented the pot to BCCH.
“It was just a really, great, colourful, loud, enthusiastic event,” said Hendrickson.
“We had a great day,” she said. “They gave away chocolates that had the Mining for Miracles logo imbedded into it. That was a great little touch. Everyone was in really good spirits. It is just such a positive thing – how can it not be a great day?”
Hendrickson says her favourite part of the event is the crème de la crème – the pie throw. While she did not toss a pie, she did toss some coin into the pot, as did her nine-year-old daughter.
“Our president and CEO was asked if he would take a pie in the face for the kids,” said Hendrickson. That started the dough rolling in at NovaGold.
“We contacted all of our vendors and business associates, asking them to contribute to the BC Children’s Foundation in support of the Foundation of course – but [also] Rick getting a pie in the face,” she said. “Rick” is Rick Van Nieuwenhuyse, NovaGold President and CEO.
That is when the nine-year-old decided to slice a piece of her academic earnings and join the fun. “My daughter donated $18 to see my boss get it,” said Hendrickson. “She earned $50 for her report card. She bought herself a Tamigachi toy and donated the rest to see my boss get a pie in the face.”
“She is fond of him - he is a great guy,” added Hendrickson.
Nieuwenhuyse’s goose was cooked when, on behalf of all NovaGold donors, “Dr. Geoffrey Blair, Head of Surgery, BC Children’s Hospital, took a running leap and got Rick!” chuckled Hendrickson. It is no wonder the doctor was leaping. “We raised $62,313.92 overall – funds from various vendors, then NovaGold matched what we raised,” she said.
It is critical to be involved, says Hendrickson, because the hospital provides services for so many. “Who is not affected by a children’s hospital?” she queried. “Whether you have children or know someone who has had to go there, or is related to someone who has had to pass through those doors, we as a community must pull together and take care of our children across British Columbia and across Canada.”
“Rick thought it was really important that we be a part of it,” she said. “He is also a father; many of our staff members have children.”
“Personally, I have four children so it was a big thing for me,” added Hendrickson. “Two of them have had to be in BC Children’s Hospital.”
Hendrickson praises the hospital’s outstanding services. “There is a special group of people that takes care of the kids there; there is special equipment required. They really take that extra step to try to make things as comfortable and as painless as possible for those kids,” she said.
Those services will only get better as donated funds for the next three years feed the re-development of two BCCH operating theatres into SMART operating rooms.
“SMART rooms are going to be furnished with new medical technology that will make surgery less invasive and quicker for the children,” explained Hendrickson. “This way there will be less waiting time, less blood loss, and a faster recovery – enabling children to check out of the hospital quicker and check back into their lives.”
“SMART rooms are going to be the most effective operating rooms across Canada,” she added. “They are going to be sending children from everywhere here. For us to be a part of that is really important.”
To become part of this sweet success story or to learn more, visit www.miningformiracles.ca. More information about NovaGold is available online at www.novagold.net. For more information about the Teck Cominco, visit www.teckcominco.com.
$7.5m gift led by Teck Cominco creates Norman B. Keevil Institute of Mining Engineering at UBC
British Columbia's only mining engineering program recently received a $7.5-million boost that will significantly increase its capacity for education and research.
The gift, comprising a major donation from Teck Cominco Limited – one of Canada's largest mining companies – plus contributions from the company's partners, will create the Norman B. Keevil Institute of Mining Engineering at UBC, in honour of the company's former President and CEO.
Dr. Norman B. Keevil has been a source of leadership and inspiration to Canada's mining industry since 1962. His dedication to excellence in business and community development has been widely recognized. He is an inductee to the Canadian Mining Hall of Fame and is the recipient of an honorary LLD degree from UBC.
"This generous gift exemplifies the commitment of Teck Cominco and partners, Dr. Keevil and UBC's Faculty of Applied Science to address critical issues faced by the modern mining sector, such as human resource development, community involvement, and safe and sustainable mining practices," says UBC President Martha Piper.
"The new institute will significantly enhance our programs in learning and research, help UBC prepare the global citizens of tomorrow, and meet the demand for skilled professionals in the industry."
The gift will provide support for infrastructure upgrades, faculty recruitment, and an enriched student experience for an expanded number of students, thereby enhancing the quality of education and leading-edge research.
"The Norman B. Keevil Institute of Mining Engineering will rapidly become one of the world's leading mining engineering institutions," says Michael Isaacson, Dean of the Faculty of Applied Science. "It will play a leadership role in preparing graduates and conducting research that best meets societal needs. The Institute will provide innovative solutions to real-world problems and ensure environmental stewardship, sustainability, community enhancement and positive First Nations relations."
"Teck Cominco has long provided employment opportunities to UBC students and applied our leading-edge research to its daily operations," says UBC Mining Engineering Head Malcolm Scoble. "This gift is a natural evolution of our collaboration and represents the strong commitment of Teck Cominco and partners to higher education and to a sustainable future for the industry."
In addition to its own generous support, Teck Cominco has secured contributions from a number of its partners, including The Hallbauer Family Foundation, AMEC Inc., Silver Standard Resources Inc., Mr. Robert Quartermain, Mr. Steven G. Dean and Dr. Klaus M. Zeitler.
Teck Cominco is one of Canada's largest and most diverse mining and mineral processing companies. Renowned for its belief that appropriate human resources development is crucial to the continued success of the mining sector, Teck Cominco has long supported mining education at UBC, including co-op and employment opportunities for UBC Mining Engineering students.
11 week strike at Ekati ends in tentative agreement
An 11-week strike at Canada's original diamond mine has ended in a tentative agreement between BHP Billiton (NYSE:BHP) and the Public Service Alliance of Canada that could become the first union contract in the North's diamond industry.
``We've managed to get a first agreement in a diamond mine in Canada and that's an achievement in itself,'' PSAC spokesman Jean-Francois Des Lauriers said June 23rd.
Richard Morland, vice-president of operations at the Ekati mine, said the one-year deal works both for employees who went out on strike and those who crossed the line.
``We believe this an excellent deal for all employees. We look forward to everybody getting back to work.''
Des Lauriers wouldn't release details of the agreement covering 375 bargaining unit employees until they had a chance to look at it.
But in a release Ekati management said the deal includes salary increases, increased paid personal leave, incentive pay and bonuses.
As well, employees who chose not to go on strike will not be forced to join the union, although they will pay dues, Des Lauriers said. Future hires will have to take out memberships.
The company said it promises not to harass workers who took part in legal strike activity, while the union has been cautioned against reprisals against employees who remained at work.
Neither union nor company officials would confirm whether the agreement contains seniority rights.
Ekati spokeswoman Deana Twissell said the agreement will allow the company to keep working with independent contractors as well as honour agreements that include employment guarantees with aboriginal groups.
``It does allow us as a company to maintain our flexibility,'' she said.
The Ekati mine, about 300 kilometres northeast of Yellowknife, kept operating during the strike, which began April 7. About 2,000 workers are employed at the site.
The agreement came early Thursday after a marathon bargaining session as both parties prepared for an unfair labour practices hearing before the Canadian Industrial Relations Board.
The union alleged BHP tried to remove clauses that had already been signed off on. Des Lauriers suggested the prospect of that complaint going before the board gave the company an incentive to start talking.
``That process put pressure on the company to reopen talks.''
The agreement ends a strike that saw accusations of unfair labour practices fly on both sides.
As well, the striking union accused BHP Billiton of selling ``dirty diamonds'' produced by strikebreakers, taking aim at one of the prized marketing edges of Canadian diamonds.
Diamond marketers trumpet the fact Canadian stones are mined in a socially responsible way to counteract concerns that some gems from elsewhere in the world fund civil strife or repressive regimes.
Ratification votes are to be held over the next few days. Des Lauriers said results should be available by the middle of next week.
All legal actions have also been withdrawn.
Union officials acknowledged at the start of the walkout that it would be seen as a test of the commitment of aboriginal workers. PSAC trumpeted its successful organization of Ekati, where just under 40 per cent of the workforce is aboriginal, as an important step to gaining their trust after decades of suspicion.
Reports of the number of workers crossing the picket line varied wildly. The union described it as a ``handful,'' while the company said it was 40 per cent. The fly-in job site in the middle of the tundra made independent counting difficult.
Des Lauriers called the tentative agreement a victory for labour solidarity.
``It was very tough,'' Des Lauriers said. ``There were a lot of people who have never been in a wage economy.
``We're incredibly proud of these folks.''
BHP owns 80 per cent of the Ekati mine, which produces nearly four per cent of current world diamond production by weight and six per cent by value.
Concrete success story in northern Saskatchewan
By Shirley Collingridge
Thanks to a well-entrenched spirit of cooperation and good old-fashioned ingenuity, northern Saskatchewan has another concrete success tale to tell. Points Athabasca Contracting Ltd. (PACL) will develop high-strength concrete tunnel liners at Points North. The liners will be used at the Cigar Lake project.
Cigar Lake, a joint venture between Cameco Corporation, COGEMA Resources Inc., Idemitsu Exploration Canada Ltd., and TEPCO Resources Inc., is operated by Cameco.
“This will be the first significant manufacturing operation developed in northern Saskatchewan to serve the uranium mining industry,” said Jerry Grandey, Cameco's president and CEO. “It will supply critical components for the Cigar Lake project and will create capacity for PACL to develop other regional business opportunities.”
The concrete segments are used to reinforce tunnels underground to ensure safe mining conditions. The estimated value of the work is $40 million.
Creating both the liners and the agreement was no small feat, said Geoff Gay, manager of Atha-basca Basin Develo-pment Limited Partnership, PACL’s majority owner.
Three years ago, negotiations began after PACL manager Brad Darbyshire spotted the precast segments at Cigar Lake. The sight set Darbyshire’s entrepreneurial bells loudly pealing.
“I happened to be at Cigar Lake and saw these precast underground tunnel liners,” said Darbyshire. “I simply asked the questions – where do you get these and what are they for? Obviously being a new company, we were pursuing any opportunity to build new business.”
“Precasting is a business that there are select few in the market right now,” added Darbyshire. “You’ve got to know the business and price it accordingly. Graham Construction does concrete of all kinds. They do not run precast plants but they do precast structures.”
“So I looked to them to provide some assistance and some knowledge through their people to see whether this would be something we could do or not,” he added.
”The consensus is, ‘it’s just concrete,’ kind of attitude but this is four times stronger than typical concrete,” he said.
“As far as Graham Construction, I think they have gone beyond the call of duty when they get into these ventures. I really do not know if they expected this venture to get this big,” said Darbyshire.
“We sampled 12 different aggregate locations in the Athabasca region. Because it is an Athabasca initiative, that was another part of our research and development. We spent quite a bit of money doing aggregate sourcing. What seemed to be the key, we had to come up with an aggregate strong enough to stand this type up in this type of concrete,” he said.
“Three and a half years later, here we are getting into making them,” he concluded. “Between those two points, we did spend a couple hundred thousand dollars in research. . . . We had multiple meetings. We spent a lot of time on it – a lot of negotiating with Cameco.”
In fact, PACL invested more than $200 thousand to study potential aggregates and mixed designs. It conducted a feasibility study as to location before launching negotiations with Cameco, where its first tender failed because the price was not competitive.
At last, both the proposal and samples met or exceeded Cameco’s stringent requirements. PACL plans to launch production in August, and will develop its own gravel pit to supply the plant.
As the region’s first manufacturing plant, said Gay, “It is going to give about 10 to 15 people some seasonable employment. It is going to give the company steady, long-term business. They are involved in mine construction right now. We know that’s going to end at some time so this manufacturing allows us to see a stable base for the long term – at least 15 years.”
“Points Athabasca Contracting has emerged as a solid, mature contracting entity with an excellent future,” added Brian Lueken, president of Graham Group. “Graham Group is extremely proud of our role in making that happen.”
PACL is a joint venture industrial construction company owned 25% by Graham Group Ltd. and 75% by seven northern communities (Hatchet Lake First Nation, Black Lake First Nation, Fond du Lac First Nation, Northern Settlement of Wollaston Lake, Northern Hamlet of Stony Rapids, Northern Settlement of Uranium City, Northern Settlement of Camsell Portage), through ABDLP. PACL’s other owners also epitomize the spirit of support and cooperation.
“So they will benefit there,” said Gay. “They will [also] benefit from the employment which we hope will be a large percentage of local residents. There will obviously be some spin-off opportunities in the long-term as we grow.”
Speaking on behalf of the Federation of Saskatchewan Indian Nations, vice-chief Guy Lonechild praised the venture. “This manufacturing agreement helps in meeting the enormous challenges northern First Nations governments face in achieving meaningful participation in the resource sector. Cameco and its co-venturers are important partners in helping us meet those challenges, and this agreement is an indication of their commitment.”
The liners are only the beginning, says the entrepreneurial Gay. “[The venture will allow us to] look around and see if there is any other opportunity to supply concrete products in the south or actually manufacture other products for mines,” he said.
The company hopes to branch off into other concrete products like precast culverts and bridge decks.
Darbyshire added, “It’s a long-term deal so it’s definitely a business builder. That’s what we are looking for as a company – is long-term agreements.”
“Fifteen years is what they are saying right now. If the life of the mine is longer, I suspect it would go longer,” he said.
“Construction is a dicey business,” added Darbyshire. “It’s up and down. A lot of companies go away when it gets low. This ensures we won’t go away anywhere. This makes us solid. Cameco has other [long-term] contracts coming out that we are currently negotiating with them.”
“The Athabasca Group is a very motivated group of northern communities that want to ensure participation,” he added. “The communities contribute a lot politically and land use is something they focus on.”
These northern communities and their partners all made high-grade efforts to ensure the concrete success of this venture. For more information about these northern ventures, visit www.athabascabasin.ca.
Development of plantinum mine near Ontario reserve leads to $10 billion lawsuit
By Mike Oliveira
The development of a potentially rare and lucrative platinum mine near a reserve in northern Ontario has prompted a First Nation to sue the provincial government, while it faces a $10 billion lawsuit from a Canadian exploration company.
The cases centre around Platinex Inc.'s (TSXV:PTX) hopes to mine for platinum in an area populated by about 1,200 members of the Kitchenuhmaykoosib Inninuwug First Nation, located about 600 kilometres north of Thunder Bay, Ont.
The company says about 90 per cent of the world's platinum comes from mines in South Africa, and a Canadian mine would be an extraordinary opportunity for all those involved, including the Aboriginal community.
But the community has made it clear they are against mining on their traditional territory and a landmark Supreme Court ruling dictates they should have been consulted before Platinex was cleared by the province to go forward, said deputy Grand Chief Alvin Fiddler of the Nishnawbe Aski Nation, which is providing assistance in the legal fight.
``For any company to work in Aboriginal territory, it's just common courtesy to call the chief and council and say, `We're interested in doing this type of work in your community, can we come and sit down and talk about it,''' Fiddler said.
He said the community was shocked to find the company setting up to work and drill in a lake about 15 kilometres from their reserve, an area they consider to be part of their traditional territory.
They asked the company to leave the area but Platinex said it had received a permit from the province to do exploratory work and refused. But Platinex pulled out after further confrontations and sought legal assistance.
``The company turned around and sued the community for $10 billion. We thought it was maybe a typo, we thought it was $10 million but it was really $10 billion,'' Fiddler said. ``So that was a shock to the community.''
The company has filed the injunction to continue its work because it was legally cleared to do so, on land which – according to some legal interpretation – may be Crown property, said Platinex lawyer Neil Smitheman.
He said the monetary value attached to the case may give a wrong impression of what Platinex is after, since it refers to the maximum value the company believes the mine could be worth, and not a sum being sought from the First Nation.
He said Platinex just wants to continue its work and is caught in the middle of a fight between the First Nation and the government over an ongoing land claim.Platinex is a small company that can't afford to sit back and wait for the years it might take for the dispute to be settled, Smitheman said.
``If we don't get on the property to do exploratory work, it'll cause irreparable harm to the company financially,'' he said.
``A geologist went out and staked it and thinks there may be a significant platinum deposit there. So this could be something really quite exciting as far as the mining community is concerned – and dealt with properly– I think as far as the First Nation community is concerned as well.''
Smitheman said the development could bring jobs and additional revenue to the community but understands not everyone likes the idea.
``I think that some members of the First Nation community would welcome (the development), others are concerned about losing their traditional way of life, however, in fairness.''
Hupascasath and Ucluelet First Nations partner with Polaris Minerals
By Heather Andrews Miller
Consultation turned into a successful business venture when the Hupacasath and Ucluelet First Nations and Polaris Minerals Corporation came together recently to form Eagle Rock Materials (EMR). The project involves a rock quarry near Port Alberni, BC and saw a common vision of environmental protection, sustainable resource utilization, and giving back to the community through revenue and jobs.
“Polaris Minerals Corporation had been looking for a large granite deposit, from Mexico to Alaska,” says Chief Judith Sayers of the Hupacasath First Nation. “They were delighted to find a site in our territory which, when tested, showed a lot of potential.” She notes that the company followed the proper protocol in approaching the First Nations in the area to invite whichever wanted to be involved. “Ourselves and the neighbouring Ucluelet First Nation responded.”
Polaris helped by providing funds so the two communities could explore their possible involvement further and ensure that it would be an environmentally-friendly, viable business. Sayers says the agreement took another year to become solidified. “Polaris was very patient and supportive while we worked out the permits, leases and certificates that are needed to proceed with a venture such as this,” she adds. “But it looks good. We’ll be shipping six million tons per year and the deposit is so large that there’s estimated to be 117 years worth of material.” For its part, Polaris, a publicly-traded company based in Vancouver, followed its goal of paying particular attention to local communities and the traditional rights of the First Nations in whose traditional territories it planned to undertake project activities.
With the work still in the development stages, the next step is to secure unloading sites in California. “We’re not actually in production yet as we’re just building our first port of the three we need to get started,” she says. “California has a lot of regulations to overcome and satisfy, but Governor Arnold Schwarzenegger has authorized a lot of highway and airport construction and we’re coming on board at a perfect time.” Eagle Rock Materials will not need to look further for markets because the California demand will fully occupy their manpower and other resources. Once ERM is fully operational, it will be the biggest aggregate supplier in Canada and will provide 80 employment positions, with the two First Nations promised half of the jobs, she says. Training will begin shortly to ensure there are members ready to fill those jobs.
The revenue gained from the sale of the product will enable the band councils to improve housing, health care and educational facilities as well as meet other needs in their communities. ERM is a progressive and precedent-setting model for businesses working with First Nations as there are only 250 members of the Hupacasath First Nation, and Sayers says their share of government support is almost negligible. The revenue from the ERM project will greatly supplement that income.
“Industry needs to work with First Nations communities in recognition of the fact that we often live in rural areas at the frontline of resource development. Working and consulting with First Nations is a moral, ethical and good business obligation,” she says. “And it benefits the business too, as it’s an incredible public relations exercise.” In the case of EMR, the joint venture provides local ownership, rather than a multi-national corporation taking all the profit out of the territory, and an ever-increasing labour shortage problem will be solved as there are many Aboriginal people willing and able to work, given the training and employment opportunities.
The key is to learn from each other and use the advantages of working together to form a lasting partnership. “The business sector can play a huge role in resolving Aboriginal and treaty rights and title claims,” she says. “Working together will bring long term benefits for our people as well as stability, and new opportunity.”
Northgate and Tse Keh Nay (3 Nations) sign Kemess South Coope
Northgate Minerals Corporation (TSX:NGX)(AMEX:NXG) and the Tse Keh Nay (3 Nations) are pleased to announce that they have signed a Cooperation Agreement related to the operation of Northgate's existing Kemess South mine in Northern British Columbia.
In the Agreement, the Tse Keh Nay (3 Nations) consisting of the Takla, Tsay Keh Dene and Kwadacha First Nations have agreed to formally respect the rights and interests of Northgate's wholly owned subsidiary Kemess Mines Ltd. to operate the Kemess South Mine within the traditional territories of the Tse Keh Nay. In exchange for this recognition, Kemess Mines Ltd. has agreed to respect the Tse Keh Nay's rights in the area and to provide funding to the Tse Keh Nay in the amount of $1,000,000 per year over the remaining Kemess South mine life. The funding will be used to benefit the Tse Keh Nay member communities.
As part of the Agreement, Northgate and the Tse Keh Nay (3 Nations) have agreed to meet twice per year during the term of the Agreement to discuss issues of mutual interest related to Northgate's ongoing activities at the Kemess South mine.
The Tse Keh Nay First Nations Group consists of the Takla, Tsay Keh Dene and Kwadacha First Nations that have lived in communities in the North Central portion of BC since time immemorial and who have asserted Aboriginal rights and title to the area currently occupied by the Kemess South mining and milling operation.
Northgate Minerals Corporation is a gold and copper mining company focused on operations and opportunities in the Americas. The Corporation's principal assets are the 300,000-ounce per year Kemess South mine in north-central British Columbia, and the Young-Davidson property in northern Ontario. Northgate is listed on the Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange under the symbol NXG.
Fortune Minerals commences underground phase of NICO bulk sample program
Fortune Minerals Limited (TSX-FT) announces that it has reached a major milestone in its goal of achieving commercial production with the commencement of the underground phase for its $9.5 million bulk sample program at the NICO gold-cobalt-bismuth deposit. The portal entrance to the underground workings was completed last week and the contractor has started driving the ramp down to the central part of the NICO deposit where the bulk sample will be collected.
The Company is conducting this bulk sample program to evaluate conditions for future mining operations, verify the continuity of grades in the central part of the NICO deposit, and collect a sample of mineralized material for larger scale pilot plant processing. The program will consist of mining 750m of a 5m x 5m decline ramp at a -15% gradient and 100m of lateral development work. Approximately 2,700 tonnes of mineralized material and 57,000 tonnes of waste rock will be mined by October 2006.
Further, additional geotechnical drilling required for construction of the proposed plant site and tailings area has now been completed under the supervision of Golder Associates Limited. The drill was then moved to the deposit and is currently testing certain gold-rich areas where there is potential for expansion of the gold zone.
The project is located 160km northwest of the City of Yellowknife, Northwest Territories. In preparation for this and other work at NICO, approximately 100 truck loads of equipment, fuel and supplies were recently delivered to the site over the government winter ice road to the nearby communities of Wha Ti and Rae Lakes. New camp, office and maintenance facilities have been constructed to accommodate the miners from KeTe Whii - Procon, a joint venture company between the Tlicho, Yellowknife and Lutsel K'e Dene First Nations and Procon Mining & Tunnelling of Burnaby, British Columbia.
NICO is already being assessed in a full feasibility study led by Micon International Limited, which is expected to be complete in mid-2006. In addition to Micon, Met-Chem Canada Inc., P&E Mining Consultants Inc., Golder Associates Limited, EBA Engineering Consultants Ltd., KVK Consulting Associates Inc. and EHA Engineering Ltd. are working on this study. At US$375/ounce gold, US$15/pound cobalt and US$3.25/pound bismuth, the deposit contains 806,000 ounces of gold, 68.0 million pounds of cobalt and 76.5 million pounds of bismuth. The current prices for these metals are approximately US$685/ounce of gold, US$16/pound of cobalt and US$5/pound of bismuth. New reserve estimates are in preparation for the Micon feasibility study, which will incorporate updated metal prices.
Massive cleanup needed at Faro mine could cost $1 billion
By Chuck Tobin
Massive. A billion dollars perhaps. It's the only way to describe the job that lies ahead with the cleanup of the Faro mine.
Almost unthinkable, or unbelievable, is the task.
It's like a make-believe tale of how ugly and how wrong things can go with mining.
But it's real, starkly real.
Taxpayers are now spending between $10 million and $14 million per year baby-sitting and trying to sort out what to do with what used to be the hottest iron in the Yukon's economy.
Hundreds uprooted their families to move to the territory and work for the largest open-pit lead-zinc mine in the world.
A town was built. The dance halls were full. Cash flowed through the Yukon like an IV drip gone wild.
The railway hummed with the product. The Otter Falls that once graced the back of the $5 bill was turned into a trickle for the hydro power to supply the raging success.
Like the Alberta tar sands now, Faro used to run some of the biggest equipment in the country. There are those who remember the lights dimming in Whitehorse when the mine fired up its mammoth electric shovel.
The Faro project rocked the Yukon, like nothing else since the Gold Rush.
Then came the crash of '82. The rail went silent. Throngs who came, left.
There was enough surplus juice to run Vancouver's sky train for a decade.
The infamous Clifford Frame pushed through a deal to reopen Faro in the mid-1980s with promises of a return to the good old days.
Then premier Tony Penikett bought it. But the company went broke.
There was another kick at the can in the mid-1990s by another company. But it went broke.
Canadians own the mine now, by virtue of bankruptcy proceedings, as the companies who came and went never did put up the money required to take care of the mess they made.
Now, taxpayers must do it.
The job could cost somewhere between $100 million and a billion, according to Roger Payne, director of the recently created Faro Closure Office.
Payne and other office staff are in the midst of a public campaign to explain what exists at the three open pits, what alternatives for closure and reclamation they see as viable. There are lifelong Yukoners who have no idea of what is involved.
To get an idea, they could picture the entire downtown Whitehorse, fill it with toxic material, so that nothing can be seen, except maybe the antenna at the top of the tallest building.
The tailings site at the Faro mine measures four kilometres long, and a half a kilometre or more wide. The average depth of the tailings is 15 metres or 50 feet, but as much as 22 metres or 72 feet in some spots. One option to deal with the tailings is to pump them back into the original and the largest of the three open pits. The most cost effective and efficient way to move 55 million tons of tailing is to blast them with a hydraulic water pump, the kind they used to use in the Klondike gold fields to wash away hillsides – and then pump them by a slurry pipeline back to the Faro Pit.
It would take 12 years just to move the tailings, and another 10 to 20 years to reclaim the poisoned earth beneath them. It is one of the viable options though.
If the tailings aren't moved, taxpayers will be faced with engineering and strengthening the four dams that keep the tailings from spilling into Rose Creek, and eventually the Pelly River. There are four preferred options for managing the tailings pond.
There is another set of options for putting the original pit to bed, another set for the Grum Pit 12 kilometres away and its sister pit, the Vangorda Pit next door. All of the four sites are toxic capsules that will dissolve into the environment if they're not looked after. There are natural creeks diverted here and there, constantly fighting to get back to their original course.
It's clear, that no matter what approach is taken to deal with matters at the Faro mine, there will always be a need for ongoing water treatment and monitoring at the site. Forever, is how the Faro Closure Office describes it.
Canadians are currently spending $10 million to $14 million a year to care for and maintain the site and plan for its closure.
The director of the Faro Closure Office said his staff is tasked with the job of taking what they learn from the public, from the First Nations, the territorial and federal governments, and forming a reclamation recommendation.
The water licence for the mine that was renewed for six years in 2003 by the Yukon Territory Water Board states there must be a reclamation plan in place by the time the licence expires in 2009.
Payne acknowledges 2009 is the target. Whether the time frame is realistic, he won't commit.
How much everything will cost is being worked on now, and Payne says that information will be circulated to the public in September when the closure office does another round of public consultation.
He does stick to his original estimate he gave when asked after he was hired for the job last year: "Probably over $100 million and less than a billion."
Right now, says Payne, office staff just want to help Yukoners understand the scope of the project, and what the different options are.
Ontario’s diamond rush kicks off with Victor mine construction
On June 19th Ontario Premier Dalton McGuinty kicked off what he hopes will be a homegrown diamond rush as construction began on a billion-dollar mine on the western coast of James Bay, the product of more than 40 years of exploration and patience.
Owned by gem magnate De Beers, the project promises hundreds of jobs, an economic boost to a remote part of the province populated mostly by Aboriginals and the long-awaited beginnings of Ontario's fledgling diamond industry.
``Not only does it represent new economic opportunity in the north – this being our first diamond mine ever – but it's the beginning I think of new opportunity for the diamond sector,'' McGuinty said after travelling to the remote northern community.
``We have a wonderful new kind of marriage here between private sector and a First Nations community. We are bound and determined to make sure that this is a winning combination.''
Economists predict the mine will add some $6.7 billion to Ontario's gross domestic product over its projected 12-year lifespan.
Canada's diamond industry already ranks third among the world's largest producers, trailing behind Botswana and Russia.
Most of Canada's gems are currently gathered from beneath the earth's crust in the Northwest Territories, which exported 12 million carats last year.
And with an increase in diamond exploration in the last decade, some analysts predict Canada will be the largest producer in the world within the next 20 years.
Northern Ontario hopes to be a major player in that role, as diamonds are seen as a badly needed shot in the arm to economically dormant region.
On hand for the opening ceremony, Northern Development Minister Rick Bartolucci called the possibilities for Ontario's diamond rush ``limitless.''
``There's an awful lot of exploration going on across northern Ontario,'' he said during the flight into the region, a soggy landscape covered in muskeg and thick bedrock.
``The future of diamond mining is extremely bright.''
Aside from the potential wealth of diamonds, the project represents an unique partnership between a large corporation and Aboriginal peoples.
More than 300 First Nations people have found work through the mine, whether on the actual construction site or helping build nearby roads and powerlines. De Beers is pumping hundreds of thousands into the Attawapiskat, Kashechewan and neighbouring Aboriginal communities, which suffer greatly from substandard housing, staggering unemployment rates and high suicide rates among youth.
Attawapiskat First Nations Chief Mike Carpenter is mindful of the potential wealth lying underneath Aboriginal land and hopes it will lead to a self-sustaining economic base for his people.
``We hope for a future with less dependency on the government,'' he said. To that end, he'll be watching to make sure the jobs De Beers offers his people aren't limited to entry-level ones, but also include higher-paying supervisor and management roles. He said the Victor project is a learning experience, since he's sure more mines will open in the future.
``Whatever we negotiated, we're satisfied and will make the best of it,'' he said. ``We know that there are many (mines) to come. This gives us an opportunity to learn and change or fix other projects and do better during negotiations.''
Bartolucci says diamond production will only strenghten the province's current mining industry, worth about $7 billion in 2005. Until recently, northern Ontario's remoteness and wet terrain deterred companies from doing basic diamond exploration when there were easier and less expensive alternatives available. But as diamond wells in other parts of the world begin to dry up and so-called ``clean'' diamonds – the hallmark of Canadian gems – become the hot trend in jewels, investors are increasingly turning their attention to northern Canada.
While McGuinty and other cabinet ministers were breaking ground Monday, explorers continued to pour over samples from at least 20 more diamondiferous kimberlite pipes in northern Ontario, including ones in Kirkland Lake and Wawa.
Victor, which is scheduled to open in late 2008, will yield approximately six million carats during it's 12-year life, employing about 600 people during construction and another 400 during production.
The overall Victor mine site, which includes a mess hall, accommodation complex and air strip, impacts an area about 5,000 hectares large, affecting an area roughly four times the size of Toronto. An open pit, the actual mine will be about 800 metres by 400 metres with a depth of 30 metres.