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Chamber News Briefs 1
Chamber of Mines News Briefs – February 18 - 19, 2016
[Note: News headlines are hyperlinked to their stories in this
document.]
Federal News
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1 Liberals recruit investment banker to help draft infrastructure
blueprint ............................................... 1
Arctic and Northern News
............................................................................................................................
3 C-COM Ka-band antennas certified for deployment in northern
Canada ................................................ 3
Nunavut News
...............................................................................................................................................
4 Baffinland pitches Mary River-Milne Inlet railway for Nunavut
iron mine ............................................... 4 First
Air welcomes new plane
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5 Lines of communication
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6
NWT
News.....................................................................................................................................................
7 Tłıc̨hǫ Caribou Report: Declining, Diseased, Dying
...................................................................................
7 MLAs opposed to budget cuts
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9 Diavik hiring gets Snap Lake interest
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10 MLAs demand solutions for slumping economy
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11 Gold mine could double Yellowknife's power needs: TerraX
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12
Resource Development and Energy News
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14 Baffinland proposes changing Mary River project's shipping road
to a railway ..................................... 14 De Beers
Canada to file plans to flood Snap Lake diamond mine
.......................................................... 15
Ottawa prepares to hire Giant Mine cleanup manager
..........................................................................
16 Boart Longyear booth at PDAC 2016 to showcase TruCore™ and a
broad range of innovative solutions that increase safety
.................................................................................................................................
16
FEDERAL NEWS
Liberals recruit investment banker to help draft infrastructure
blueprint
Ottawa Citizen - February 16, 2016
Jason Fekete
OTTAWA — The Liberal government has recruited an investment
banker to help design its planned Canada Infrastructure Bank and
persuade large pension funds to invest in Canadian projects, as the
pillars of its multibillion-dollar infrastructure spending plan
take shape.
As part of its infrastructure blueprint, it is also examining
using surplus federal lands and buildings for badly needed
affordable housing across the country.
Prime Minister Justin Trudeau’s government has promised to spend
an additional $60 billion over the next decade on infrastructure —
about double what was committed by the Conservatives – for such
projects as public transit, social housing and greener
communities.
The Liberals have committed to run deficits totalling tens of
billions of dollars over the next few years to help fund their
infrastructure spending plan and boost Canada’s sputtering
economy.
The party promised to balance the books by the end of its
four-year term, but Trudeau stepped back from that election
commitment this week, saying it will be “difficult” to do if
economic growth remains sluggish.
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Chamber News Briefs 2
As the government prepares a budget expected to be delivered in
mid- to late March, it is also laying the groundwork for its
promised Canada Infrastructure Bank (CIB) and examining options for
building affordable housing.
The Liberal government has brought on board a Canadian
investment banker currently working at a major firm in the U.S. to
help design the new bank that was promised in the party’s election
platform, the Ottawa Citizen has learned.
The adviser will also work with large pension funds in Canada as
part of the government’s efforts to persuade them to invest in
Canadian infrastructure projects.
The investment banker will work from Infrastructure Minister
Amarjeet Sohi’s office for a period of four to six months beginning
in early March, as an unpaid volunteer. Government officials
wouldn’t confirm the name of the adviser until the individual
starts in the minister’s office.
The CIB would “provide low-cost financing for new infrastructure
projects,” according to the platform.
The initiative would help ensure projects are built where a lack
of capital poses a barrier, by providing loan guarantees and small
capital contributions to provinces and municipalities.
“The federal government can use its strong credit rating and
lending authority to make it easier and more affordable for
municipalities to build the projects their communities need,” the
platform says.
The Liberals have pledged the CIB will issue green bonds to fund
projects like electric vehicle charging stations and networks,
renewable energy transmission lines and building retrofits.
Craig Alexander, vice-president of economic analysis at the C.D.
Howe Institute, an economic think-tank, said he’s divided over
whether the new bank is an appropriate tool for Ottawa to use to
help get more capital projects built across the country.
The rationale for the idea makes sense, he said, in that the
federal government can borrow for projects at a lower rate than
provinces and municipalities, so it is trying to lend that
capability to the other levels of government.
However, doing so also puts all taxpayers at risk for provincial
and local projects.
“It’s the Canadian taxpayer basically backing provincial and
municipal borrowing,” he said.
The Liberals also expect the new adviser to help get large
pension funds, such as the Canada Pension Plan, the Ontario
Teachers’ Pension Plan, and Ontario Municipal Employees Retirement
System, to invest in infrastructure projects in Canada, but it’s
unclear exactly how that will happen.
Large pension funds often target projects abroad that include
some kind of income and higher rates of return, so it won’t
necessarily be easy to convince fund managers to invest in Canadian
infrastructure if there is a likelihood of a lower rate of
return.
Alexander said there are significant benefits for having
Canadian pension funds invest more in Canada, but they have been
“reluctant to do so” for a variety of reasons. Pension funds won’t
invest in Canada simply for nationalistic reasons, so it must makes
financial sense and maximize returns for pension holders.
He added he is encouraged the government is looking to engage
with the pension funds to see what is possible.
“There’s not enough public money to be able to invest in all the
infrastructure projects that are needed,” he said.
Targeting pension funds and other private investors to finance
Canadian infrastructure would mean a much larger role for
public-private partnerships.
The government’s promised $60 billion in new infrastructure
spending includes $20 billion for public transit, $20 billion for
social infrastructure like affordable housing, and $20 billion for
“greener
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Chamber News Briefs 3
communities,” including water and wastewater facilities, clean
energy and climate-resilient infrastructure.
For affordable housing, Public Services and Procurement Canada
has been working with Sohi to “conduct an inventory of all
available federal lands and buildings that could be repurposed for
affordable housing in communities,” according to briefing materials
obtained under access to information legislation.
Sohi has said the government is looking at a two-phase approach
on infrastructure spending, starting with deferred maintenance,
which will lay the foundation for the broader 10-year strategy.
The government plans to spend an additional $10 billion over the
next two years on aging community infrastructure, like upgrading
buses and subway cars, repairing social housing and rebuilding
wastewater systems.
ARCTIC AND NORTHERN NEWS
C-COM Ka-band antennas certified for deployment in northern
Canada
News Release - February 17, 2016
OTTAWA – C-COM Satellite Systems Inc. (TSXV: CMI), a leading
global provider of mobile auto-deploying satellite antenna systems,
announced today that it has received approval to operate its
Ka-band iNetVu® mobile antenna products on the Galaxy Broadband
network. Galaxy Broadband is a leader in enterprise grade VSAT
services to remote areas across Canada and the United States.
The iNetVu® Ka-98H system was successfully deployed and tested
on the Galaxy F2 Ka-band network in January, expanding C-COM’s
footprint for service in the most Northern parts of Canada. This
exciting development will provide mobile customers in Canada’s
north the capability to deploy the C-COM manufactured iNetVu®
AutoDeployable VSAT solution over Galaxy’s extensive Ka-band
network that covers BC, Northern Alberta, Northern Saskatchewan,
Northwest Territories, Nunavut and Eastern Alaska.
With Galaxy’s service offering, mobile clients in the Canadian
Arctic can now have access to a network that can deliver 5 Mbps
down and 2 Mbps up, rivaling speeds available in more southern
locations of the country. “We feel this is a very good opportunity
for delivering mobile solutions throughout our Ka-band beam
coverage, including the Canadian Arctic”, states Rick Hodgkinson,
President and CEO of Galaxy Broadband. “We see many opportunities
for remote exploration, temporary sites and Government solutions
using mobile antennas in combination with Galaxy`s high power Ka
spot beams that deliver an Enterprise high QoS network.”
“We are pleased to be able to offer mobile broadband capability
to customers in the most Northern parts of the country”, said
Leslie Klein, President and CEO of C-COM Satellite Systems Inc.
“Our Canadian designed and manufactured iNetVu® products will
enable customers in the Arctic to have simple, one button access to
broadband connectivity via satellite.”
About Galaxy Broadband
Since 1992 Galaxy has been a reliable leader in satellite
services to remote areas across Canada and the United States.
Galaxy owns and operates several fully redundant DVB-S2 hubs. With
20 years of delivering communications via satellite, Galaxy’s
customer-centric approach to the VSAT market is straight forward
and simplified. We deliver leading edge technologies quickly and
economically while maintaining client Quality of Service (QoS).
Utilizing geographically diverse uplink centers, Galaxy manages a
Global IP infrastructure interconnecting remote VSATs directly to
the core of major North American carriers with POPs in the USA and
Canada.
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Chamber News Briefs 4
Galaxy has installed over 10,000 systems across North America
and focuses on the Oil & Gas, Mining, Construction, Remote
monitoring and Government vertical markets.
About C-COM Satellite Systems Inc.
C-COM Satellite Systems Inc. is a leader in the development,
manufacture and deployment of commercial grade mobile satellite
based technology for the delivery of two-way high-speed Internet,
VoIP and Video services into vehicles. C-COM has developed a number
of proprietary Mobile auto-deploying (iNetVu®) antennas that
deliver broadband over satellite into vehicles while stationary
virtually anywhere where one can drive. The iNetVu® Mobile antennas
have also been adapted to be airline checkable and easily
transportable. More than 7000 C-COM antennas have been deployed in
103 countries around the world in vertical markets such as Oil
& Gas Exploration, Military Communications, Disaster
Management, SNG, Emergency Communications, Cellular Backhaul,
Telemedicine, Mobile Banking, and others. The Company's
satellite-based products are known worldwide for their high
quality, reliability and cost-effectiveness. C-COM is also involved
in the design and development of a new generation of Ka-band
(communications on the move) antennas, which will deliver satellite
broadband solutions into vehicles while in motion.
NUNAVUT NEWS
Baffinland pitches Mary River-Milne Inlet railway for Nunavut
iron mine
Change of plan catches Qikiqtani Inuit Association by
surprise
Nunatsiaq News - February 19, 2016
Thomas Rohner
Baffinland Iron Mines Corp. has proposed the construction of a
railway from its Mary River mine on north Baffin to Milne Inlet as
part of its Phase II expansion proposal in a Feb. 17 announcement
which likely surprised its Nunavut stakeholders.
“Baffinland has determined the incorporation of a railway is an
integral facet of the Phase 2 proposal due to a number of
environmental, technical and economic benefits,” a letter from the
mining company to the Nunavut Impact Review Board said.
That means Baffinland will have to push back the submission of
an environmental impact statement to the review board from this
April to September, the letter said.
Justin Buller, assistant director of major projects for the
Qikiqtani Inuit Association, announced the news at a board of
directors meeting Feb. 18 in Iqaluit.
The letter later appeared on the NIRB’s public registry.
“They haven’t been too explicit on their reasons [for the
proposed rail line],” Buller told the QIA board members.
Some directors reacted with surprise and concern at the lack of
information and yet another change in plans for the Mary River
mine.
“They’re not thinking about the land or the people. Where do we
draw the line?” a board member said.
“We need to think about this proposed change in that way as we
move forward,” QIA president Pauloosie (PJ) Akeeagok replied,
adding he hoped to get more information and clarity from Baffinland
on the proposed rail line.
Baffinland shipped its first load of iron ore from Mary River
via Milne Inlet in August 2015 as part of its “early revenue”
phase.
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Chamber News Briefs 5
Global prices of iron ore have plummeted since the NIRB first
granted the company its Mary River project certificate in 2012.
For that reason, and because the iron ore market is a
high-volume, low-margin business, the company has changed its plans
for Mary River considerably a number of times.
The original proposal called for a $5-billion railway to be
built from the mine south to Steensby Inlet on the Foxe Basin side
of Baffin Island — a plan shelved by Baffinland due to its high
price tag.
Instead, the company began transporting iron ore along a
100-kilometre tote road between the mine and Milne Inlet, near
Eclipse Sound on Baffin’s northeast shore.
And then in late 2014, Baffinland proposed significant changes
to its project certificate, including:
• more than tripling truckloads of iron ore along the tote road
to the Milne Inlet port;
• nearly tripling the output of iron ore from Milne Inlet, from
4.2-million tonnes to 12-million tonnes per year;
• increasing the shipping season from three or four months a
year to ten months a year; and,
• building a second dock at Milne Inlet and a nearby tank farm
capable of holding 140-million litres of fuel.
The NIRB decided in August 2015 that the proposed changes
warranted a full public review, requiring Baffinland to submit a
new Environmental Impact Statement.
Now that Baffinland is aiming to submit its assessment in
September, the review board won’t likely make a decision on the
company’s proposed Phase 2 project until the spring of 2017.
That’s because after Baffinland makes its submission, the NIRB
has to conduct community consultations and a technical review.
In the meantime, Buller said at the QIA’s board of directors
meeting Feb. 18 that the Baffin Inuit organization will push ahead
with its own community consultations on the mining company’s
proposal and on a revamped Inuit Impact and Benefits Agreement.
The first round of community consultations took place in
November 2015, Buller said, in the five communities most affected
by Mary River: Clyde River, Pond Inlet, Igloolik, Hall Beach and
Arctic Bay.
And Buller said QIA staff just completed a second round of radio
shows in those communities seeking local input.
Monthly radio shows will follow, Buller said, but before the
next set of call-in shows, the QIA will try to find out more
details from Baffinland on the proposed rail route to Milne
Inlet.
Buller pointed out that under the original project certificate,
Baffinland was approved to build a rail line to Steensby Inlet,
from which 18 million tonnes a year of iron ore from Mary River can
be shipped.
In an update issued later on Feb. 18, QIA said Baffinland’s new
Milne Inlet railway plan likely involves more changes to the Milne
Inlet port, the shipping route from Milne Inlet, and the types of
ships that may be used.
First Air welcomes new plane
ATR 42-500 first of its kind in Canada; company to acquire
six
Northern News Services - Wednesday, February 17, 2016
Meagan Leonard
The new ATR 42-500s will eventually replace the airline's
300-series aircraft and are the first to be used in Canada. Faster
and more fuel efficient, the turbo-prop is more comfortable for
passengers and can
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Chamber News Briefs 6
carry 1,000 kilograms more weight, according to First Air
director of sales and marketing Rene Armas Maes.
Standing in the cabin of the new plane ahead of an introductory
flight to Cambridge Bay Tuesday morning, Armas Maes said the
42-seater is more comfortable than "any other aircraft flying out
of Yellowknife" and will be ideal for the charter market.
"It might not be big news for some carriers but it's big news
for the Northern carriers," he said. "You don't see that much
investment being put into the market."
The plane was making its debut flight in the North this week,
with stops in Kugluktuk, Cambridge Bay and Hay River. He said this
particular model is ideal for First Air's Northern schedule.
"This is a more fuel-efficient aircraft, an aircraft that can
take off on shorter runways than the other ones ... and is going to
fly faster," he said. "Economically speaking, it makes more sense.
It's going to help us have better economics in the routes and
hopefully improve our margins and reduce our costs."
He said a low Canadian dollar means the cost of purchasing fuel
and parts for planes has gone up. He said savings from better
efficiency will help ensure the cost of flights for customers
remains consistent.
"The problem we're having today is the currency has been
depreciated 35 to 40 per cent," he said. "But it doesn't mean that
the fare is going to be increased."
In terms of operation, Armas Maes said the 42-300 and 42-500 are
essentially the same but pilots recently traveled to Houston, Texas
for training.
"It's basically 95 per cent commonality," he said.
Although this first model will not be used for transporting
cargo, Armas Maes says the company will be getting some
combi-configuration planes as well, capable of transporting goods
and people. Once in operation, the planes will have flights from
Yellowknife to Cambridge Bay, Kugluktuk, Hay River, Fort Simpson
and the mines.
Lines of communication
Road, power line top agenda at regional roundtable gathering
Northern News Services - Wednesday, February 17, 2016
Darrell Greer
A winter road to Manitoba, the advancement of hydro-electric
connection and waste management were among the highlights of the
Hudson Bay Regional Roundtable meetings in Churchill, Man., this
past week.
Roundtable co-chairs Government of Nunavut (GN) Minister of
Community and Government Services (C&GS) Joe Savikataaq and
Churchill Mayor Michael Spence welcomed more than 80 delegates,
including Manitoba MP Terry Duguid and Kivalliq Inuit Association
president David Ningeongan.
Arviat Mayor Bob Leonard said the meetings represented a big
step forward for both the winter road and the hydro line.
He said the two projects are gaining real momentum and, in his
opinion, are going to go ahead.
"The next planning phase will take about a year and then the
regulatory process will begin, so I see the road becoming a reality
in about 10 years," said Leonard.
"That power line will change everybody's life in our region.
"The GN's infrastructure - the power houses, tank farms and
everything - are getting old.
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Chamber News Briefs 7
"We're going to have to invest in something really soon, so are
we going to invest in what we're doing now and build more tanks and
diesel generating plants to leave us right where we are now, with
the most-expensive way of producing power."
Leonard said nobody messes around with fuel oil in Churchill
anymore.
He said every house in the town uses electric heat.
"They have a made-in-Manitoba rate of about five cents a
kilowatt hour.
"We pay 60-some cents per kilowatt hour for private homes in the
Kivalliq.
"These discussions really highlight to me how slowly change
comes about.
"It's good to keep dialogue going even though we haven't had a
lot of success yet, but we're really on the verge now with the
power line and road project."
C&GS manager of community operations Rob Hedley of Rankin
Inlet said the roundtable has a real sense of immediacy in making
the two projects a reality now.
He said everyone understands what needs to happen, so it's a
matter of getting studies done, getting through regulatory
processes and finding levels of government to sign cheques.
"I'm an eternal optimist, so I believe in the government
eventually getting it right," said Hedley.
"We keep doing this because we are optimistic and we want to get
it done.
"And, right now, it all seems to be going in the right
direction."
Hedley said positive steps are also being taken to meet common
challenges in the delivery of health care in Nunavut and
Manitoba.
He said the idea is to create a partnership to ensure the higher
level issues are being addressed.
"We also went out to see how Churchill handles its waste
management, and it was neat to see how a Northern community is
effectively handling waste and recycling.
"With things reaching panel discussions there's more involvement
from the mayors and other stakeholders now, so that's also going
really well.
"This is not a zero-sum game type of idea where there's a winner
and a loser.
"The idea is to have mutually beneficial partnerships where
everyone gains on both sides, and that's exactly the direction we
seem to be headed now."
NWT NEWS
Tłıc̨hǫ Caribou Report: Declining, Diseased, Dying
In a new study, hunters say mining plays a key part in the
shocking state of the Bathurst herd.
The Edge - February 17, 2016
Along with a notable drop in Bathurst caribou numbers, the
Tłıc̨hǫ have been noticing a stark decline in the health of the
animals, which many are chalking up to the impacts of mining in the
area.
According to interviews with elders and hunters in Wekweètì and
Behchokǫ̀, the caribou meat they are harvesting is increasingly
covered in cysts and blisters, their lungs and livers coated with
pus and mucous, and in general they appear to have less body
fat.
The information comes in a new report issued by the Tlįchǫ
Research and Training Institute, which brings together local
researchers, academics, government and non-governmental
organizations and corporations. Over the past three years,
researchers met with 14 Tłıc̨hǫ elders and hunters in Wekweètì
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Chamber News Briefs 8
and two in Behchokǫ̀ to gather traditional knowledge about
health and migration patterns of the herd, which has declined from
an estimated 472,000 in 1986 to between 15,000 and 22,000 in
2015.
“Contributors to the report unanimously identify the
establishment of large-scale mines and associated industrial
activities on the Bathurst caribou migration route and feeding
grounds as the main factor behind caribou health defects and
changes to their behaviour and migration,” the report reads.
Although it takes care to point out that the information presented
is not of a scientific nature. “This TK [Traditional Knowledge]
study has documented the anecdotal information on recent changes to
caribou physiology, behaviour and migration.
“The next step is to combine the strengths of TK and science,
where TK can provide the current conditions of caribou and habitat,
and science can establish the biochemical pathways that connect the
demonstrated physiological abnormalities to their source; thus,
link biology and testimony to the main factors of disturbance.”
Blisters and cysts in the meat
The picture of caribou health the report paints is grim, so much
so that several respondents said they were afraid to eat the
meat.
“Hunters have observed numerous cases of a white pus-like
substance and spots on organs and liver, blisters and cysts in the
meat, lungs coated in green mucous/fluids, and attached to the rib
cage, altered color and consistency of the bone marrow, and a
hardened texture of the hides. None of these phenomena were
observed before large-scale mines were developed on the caribou
feeding grounds,” says the report.
Furthermore, hunters say that the animals are getting far
skinnier. This has potentially disastrous effects: “The decrease of
fat reserves can make animals vulnerable to starvation, especially
during periods of freeze and thaw, in late fall and spring, when
lichen can be covered in ice or crust for prolonged periods, and
animals can be prevented from accessing their forage.”
The change in body fat has also, perhaps, led to the significant
change in pregnancy rates. As Joseph Judas put it: “All the females
are supposed to be having a baby but some of them are not like
that, they have no babies! They are supposed to have it but it
didn’t happen. But before those [mines] being established, almost
all the females used to have babies to go back to the Barrenlands.
So in that case it’s a really big change from those times till
today.”
Perhaps most disturbing, several respondents reported seeing
large numbers of caribou that had died without apparent cause:
“From 1999 to present, the hunters have found numerous dead animals
lying on the ground. The guides have reported seeing over a hundred
deceased animals scattered on the land. Most of the animals had no
physical injuries; they had simply bedded down.”
What’s causing it?
For the elders and hunters interviewed, the cause of the poor
health is directly related to nearby mining, Ekati in
particular.
“The mining activity affects the state of the caribou habitat,
both by construction of infrastructure and by creating dust and
noise pollution. This negatively affects the state of their food
and their habitat,” the report reads. “Dust and chemicals are being
absorbed into the vegetation and waters where the caribou forage
and drink, and this is likely connected to the physiological
changes experienced by Tłıc̨hǫ in recent years.”
That said, while, “The report documents a direct correlation
between mining activities and health issues… the study does not
demonstrate the biochemical pathway linking pollution from mines to
the abnormal health issues.”
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Chamber News Briefs 9
Since the boom in large-scale mines in the area, the migration
routes have also changed, moving progressively further north.
“The caribou avoid the area: the forage quality is poor and the
vegetation smells and tastes different, due to dust and pollution
spread by winds over the forage areas. Noise pollution, industrial
activity and mine site infrastructure also play a role in caribou
avoidance of the area. The elders describe how the large-scale,
open-pit mines and their associated infrastructure, including a
30-kilometer all-season road from Ek’ati to the open pit at Misery,
has established a “wall” around the Ek’atì area and, thus blocked
the main migration route.”
“Large herds of caribou were seen every year up until the late
1990s,” the report says. “Hunters say that 1996 and 1997 were good
years when lots of caribou came through Wekweètì. But from 1998 and
‘99, changes in the population started to occur. The caribou were
still numerous, but not so much as in 1996 and ‘97. During the
following years into 2000, the population consistently decreased,
up until 2003 and 2005, when caribou started to become hard to find
on the Barrenlands northeast of Wekweètì.”
This shifting migration route, combined with the general decline
in herd numbers, which the report suggests may also have to do with
disrespectful hunting practices, means that, prior to the 2015
hunting ban, many Tłıc̨hǫ hunters had to fly north rather than hunt
along the traditional migration routes near Wekweètì.
Social Impact
The impact of this is not just on the caribou, but on the
hunters themselves and the economy of the Tłıc̨hǫ region.
“As the population of caribou has continued to decline, hunting
is now banned for Tłıc̨hǫ hunters. This means people’s economy —
which was built around hunting the Bathurst caribou population in
spring and fall — has entered a full recession,” the report says.
“Whereas before, Tłıc̨hǫ freezers were full of caribou meat, and
most community members were occupied with the many activities
necessary to secure a living from hunting, the freezers are now
empty, and people are increasingly dependent on the monetary system
to buy groceries at the local store or in Yellowknife.”
MLAs opposed to budget cuts
Testart, Beaulieu say they will fight any attempt to claw back
programs and services
Northern News Services – February 17, 2016
John McFadden
The territory's regular MLAs are attempting to set the tone for
the session of the legislative assembly that begins tomorrow,
stating they will fight cuts to programs and services despite the
territorial government's forecasted deficit.
The assembly's priorities and planning committee, which is
comprised of the 11 regular members of the assembly, stated they
will come out firmly against any measures aimed at balancing the
government's books that may be proposed.
While the committee states it supports responsible government
spending, MLAs are concerned that implementing measures that cut
back programs and services will be detrimental to the economy and
undermine many of the priorities of the assembly, a Monday news
release states.
"Any decision to cut programs and services must be made to
strengthen our economy, and not for the sake of balancing the
government's books," said Tu Nedhe– Wiilideh MLA Tom Beaulieu, who
is the committee chairperson.
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Chamber News Briefs 10
"We owe it to the people and communities of the NWT to be
diligent and make decisions that are well thought out and where all
options are kept on the table." Beaulieu says the assembly's
financial decisions this term will have "far-reaching implications
on the people and economic well-being of the NWT." "At this
critical juncture in the NWT's history, decisions must be carefully
considered," said Beaulieu.
"The committee will engage with cabinet in the coming weeks to
ensure a balanced approach to addressing our fiscal
challenges."
Kam Lake MLA Kieron Testart, who is also deputy chairperson of
the committee, joined Beaulieu at Monday's news conference. He said
among his other priorities is to make sure the public is aware they
can be part of the budget process.
Further to that Testart said he wants to hear from cabinet about
resource development and help for small business. He said he wants
to know "the government's plan to support mineral exploration in
the NWT and not just through strategies and action plans but actual
concrete measures," Testart said.
"I'm also going to be looking for information on what we are
doing to support the manufacturing sector and small businesses,
including a tax cut for small businesses in the North."
Yellowknife North MLA Cory Vanthuyne said the government's
finances and the economy will top his list of concerns when he gets
a chance to challenge cabinet ministers during question period.
In an e-mail, Vanthuyne listed his priorities for the upcoming
session. "Establishing certainty for the economy by investing in
priority projects such as Mackenzie Valley Highway, Tlicho Road and
(an allweather road to the diamond mines), ensuring the federal/
territorial funding is re-established to its previous level,
support the recommendations of the community funding formula review
so underfunded communities can meet their infrastructure needs,"
Vanthuyne stated.
It was announced yesterday the federal grant was partially
restored. He also would like to see financial help for people
making energy efficiency improvements to their homes to reduce
impacts on the environment and reduce the cost of living.
Yellowknifer asked the two other regular MLAs from the city,
Yellowknife Centre's Julie Green and Frame Lake's Kevin O'Reilly
what they expect to be hot-button issues during this session but
neither responded by press time.
Diavik hiring gets Snap Lake interest
Several unemployed miners turn out at job fair in
Yellowknife
Northern News Services - February 18, 2016
John McFadden
Some of those now unemployed miners showed up at a career fair
last Friday at Sir John Franklin High School, looking to secure one
of the roughly 90 jobs up for grabs immediately at the Diavik
Diamond Mine, about 300-kilometres northeast of Yellowknife.
"We did get interest. I can't give you a lot of data on it but
it is positive," said Doug Ashbury, Yellowknife spokesperson for
for Rio Tinto, which operates Diavik.
"Individuals (from Snap Lake) were approaching us about
opportunities."Ashbury said he did not have an exact numbers on how
many former Snap Lake workers visited them at the job fair but said
the response was positive and encouraging. The new workers are
needed for the construction of what's known as the A-21 dyke,
Ashbury said. He added that the dyke is a rock-filled structure
built in the lake and used to safely remove the water from that
portion of the lake and open-pit mine the A-21 kimberlite pipe.
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Chamber News Briefs 11
"(There is) a US$350 million budget for that project and
associated with that is the need to hire ... The hiring we are
doing is for the construction phase so it is a seasonal annual
hiring and that will take us to approximately four years," Ashbury
said. "At the end of it we're going to need an open-pit work
force." He said there will be opportunities for people hired to
work on the construction of the dyke to transition to full-time
work at Diavik, once the new mine opens which is expected in
2018.
Construction on the A-21 dyke began last year. Ashbury said that
construction work cannot proceed right now because the lake is
frozen. He said until break up, workers will be crushing rock and
stockpiling it.
"Last year we hired several individuals and we'll be hiring more
this year. We are expanding. There have been several employment
opportunities listed in various locations," Ashbury said. "The A-21
workforce will peak at approximately 200 people."
Ashbury did not say whether the company is giving hiring
priority to laid-off Snap Lake workers but added their skills
should be transferable. Diavik is looking for heavy equipment
operators including bulldozers, excavators and haul trucks. The
company is also looking to hire safety advisers, supervisors and
team leaders.
MLAs demand solutions for slumping economy
Finance minister says specific actions likely won't be announced
until May-June budget session
Northern News Services - Friday, February 19, 2016
John McFadden
Kam Lake MLA Kieron Testart said he is tired of hearing the
government's gloomy rhetoric about expenditures outpacing revenues
while not presenting any solutions. His cry for answers came during
his member's statement as the 18th Legislative Assembly resumed
sitting yesterday for the first time this year.
Testart said it's unfair to leave government employees in the
dark on whether the government is considering any layoffs.
Tu Nedhe-Wiilideh MLA Tom Beaulieu told Finance Minister Robert
C. McLeod it's time to quell the rumours.
The finance minister said the government will be able to provide
some answers by the May-June budget session.
"We have tasked out officials with putting some options
together," said McLeod.
"They will share them with cabinet. Cabinet will share them with
committee (regular members) and depending on some of the directions
we take, they will come forward during the May-June budget
cycle."
The government has not made any concrete proposals about cutting
programs, services or jobs to help balance its budget, said
McLeod.
The exchange took place following the opening address by NWT
Commissioner George Tuccaro who began the session by outlining the
18th Legislative Assembly's mandate for the next four years.
Tuccaro began by saying this is the first time the territorial
government has publicly set out its mandate. He said that aligns
with earlier pledges by the government that the 18th assembly will
be the most transparent and accountable in the territory's
history.
He repeated the government's position that the territory's
economy is struggling due to a plummeting and surprising drop in
commodity prices, which is hurting mining activities in the
territory on which the GNWT relies for resource royalties.
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Chamber News Briefs 12
Tuccaro suggested the government's course of action will depend
greatly on its ability to collaborate with other levels of
government, specifically Ottawa and aboriginal governments.
"Living beyond our means is not a responsible choice," said
Tuccaro. "Fiscal responsibility is a crucial measure of
accountability."
The government's priorities must reflect the public's values,
said Tuccaro, adding its attempts to be more accountable and
transparent will help to create more public engagement in the
political process.
Tuccaro said the government will also make it a priority to work
on clarifying and improving aboriginal rights and settling
outstanding land claims with the Akaitcho, NWT Metis Nation and the
Dehcho First Nations. New offers will be made by the government in
an effort to reach agreements, said Tuccaro.
Colonialism and residential schools and the negative effects
they had on indigenous people will also be addressed during this
assembly, said Tuccaro, including ways to implement recommendations
that came out of the Truth and Reconciliation Commission.
Tuccaro also said First Nations government training programs
will be launched during the life of this assembly.
Tuccaro said this government will make the high cost of living a
priority, and make sure the federal government follows through on
its election promise to increase the Northern Residents Tax
Deduction by 33 per cent.
Tuccaro said high costs for goods and services in the NWT means
that some residents cannot afford some of the basic necessities of
life, including food, shelter and clothing.
Gold mine could double Yellowknife's power needs: TerraX
Nuclear, wind, considered possible options; power corp.
spokesperson suggests liquid natural gas plant
Northern News Services - Wednesday, February 17, 2016
Meagan Leonard
As optimism swirls around development of the Yellowknife City
Gold project, some are wondering where the mine will get its power
when it comes online.
Over the last two years, drought and low water levels in the
Snare system have left the GNWT on the hook for $50 million in
diesel expenditures. With the new mine anticipated to double or
triple the city's power load, TerraX Minerals president Joe
Campbell said he pitched the idea of a nuclear reactor to the
premier.
"You need a high, steady base rate to get a high peak draw when
you turn on certain bits of machinery," he said. "There's only a
couple of systems available today that will provide those levels of
power."
Campbell said technically the mine could be run on diesel but it
is not the most environmentally or economically friendly option. He
said he is hopeful TerraX and the GNWT can do some brainstorming
before production begins around 2025.
"Diesel is a tough option. It requires a lot of infrastructure
and transportation of fuel (over) great distances," he said. "If
there's an opportunity to do something other than diesel then we
should definitely look at it."
This isn't the first time nuclear power has been suggested as an
alternative for the city.
Last fall, Yellowknife city councillor Niels Konge pitched the
idea of a tiny nuclear reactor powered by a softball-sized chunk of
depleted uranium. However, when asked about the concept, the GNWT
energy division said it would not seriously consider the technology
until it's been established elsewhere. Yellowknifer Daniel Gillis
has also been a very vocal advocate of small-scale nuclear
technology.
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Chamber News Briefs 13
GNWT spokesperson Andrew Livingstone stated in an e-mail nuclear
energy continues to be an area of interest given the territory's
high energy costs but the government is looking at other options
first.
"We are aware of the development and use of contained,
small-scale nuclear technologies," he said. "However, none exist in
North America and there are technical and regulatory issues with
'micro-nuclear' that will take a number of years to address before
we can use them here."
In a 2012 study by the Institute for Energy Research, nuclear
power was found to have the lowest electricity production costs at
an average of 2.10 cents per kilowatt hour. Currently, Yellowknife
customers pay 28.9 cents per kilowatt hour.
Northwest Territories Power Corp., spokesperson Pam Coulter said
in the event a gold mine was connected to the North Slave grid, the
most viable option would be a liquid natural gas plant adjacent to
Yellowknife.
"This would provide power to the mine for its lifespan and
provide both non-diesel back-up and growth potential for the North
Slave," she stated in an e-mail. "Licensing timelines for nuclear
would likely exceed this mines' in-service date."
Power Corp., operates seven hydroelectric plants in the
territory with a total capacity of 50 megawatts. The largest is
Talston, which has an 18 megawatt capacity and provides power to
Fort Smith, Hay River, Fort Resolution and Enterprise. Coulter said
the company has explored the possibility of connecting the South
Slave to the North Slave grid but it is not cost effective based on
current demand.
"It doesn't appear to be economically feasible in the short- to
medium-term," she said. "However, if demand for power increased
significantly due to a new mine, we could re-examine the potential
of this connection."
The GNWT is also conducting a study to determine expansion
options for the future while examining more cost-effective ways to
offset periodic droughts and load growth, said Livingstone. One
concept is a wind farm near the Snare Hydro dam, 140 kilometres
from the city. Elevation in this area is high enough to access a
wind layer capable of providing two to three megawatts per turbine
with a goal output of 10 megawatts. A wind farm established at the
Diavik Diamond mine in 2012 cost $13 million and has an output of
9.2 megawatts from four turbines. It is anticipated that
Yellowknife could be partially powered by wind energy within two to
three years.
If TerraX requires energy similar to that of Con or Giant Mine,
Livingstone said most if it could be offset by capacity at the
Snare hydro system if water levels remain consistent, or through an
expansion to the Bluefish facility.
"During the period of planning leading up to the construction of
the mine, other options could emerge," he said. "Load growth in
other areas could substantiate the development of a new hydro site
... infrastructure and energy development go hand-in-hand."
The average load for the North Slave grid in 2015, including
Yellowknife, Behchoko and Dettah was approximately 21 megawatts
with a peak of 35 megawatts. Campbell said he anticipates the mine
will double this.
"Right now the system that's in place north of the Slave is not
large enough to do the city, let alone an additional mine on top of
it," he said. "That's why we have to start talking about these
things now."
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Chamber News Briefs 14
RESOURCE DEVELOPMENT AND ENERGY NEWS
Baffinland proposes changing Mary River project's shipping road
to a railway
Phase 2 environment impact statement postponed to September
CBC News - February 18, 2016
Elyse Skura
Baffinland Iron Mines is proposing another change to its Mary
River project on north Baffin Island — this time a decision to
build a railway — which will delay the submission of its phase 2
environmental impact statement by several months.
Oliver Curran, the company's director of sustainable
development, sent a letter to the Nunavut Impact Review Board
Wednesday outlining its decision to re-evaluate how it will
transport ore from the mine site to Milne Inlet. "By way of our
alternatives assessment, Baffinland has determined the
incorporation of a railway is an integral facet of the Phase 2
proposal due to a number of environmental, technical and economic
benefits," Curran wrote.
The company did not explicitly say why it considers using rail a
better transportation method than using trucks along the tow
road.
Baffinland is currently going through the NIRB process for its
phase 2 proposal, which includes a controversial plan to ship ore
out of Milne Inlet for 10 months every year — a process which would
mean breaking up ice near Pond Inlet.
QIA board reflects on changes
Justin Buller, the Qikiqtani Inuit Association's assistant
director for major projects, and Enookie Inuarak, a member at large
with the QIA executive, explained the letter at a public board of
directors meeting in Iqaluit Thursday.
Baffinland had expected to file an environmental impact
statement to the Nunavut Impact Review Board this April. Now, it
doesn't expect to complete that document until September.
"After that there will be a period of comments and information
requests that can go back and forth between the company and other
stakeholders," said Buller.
Baffinland Letter Mary River mine changes
Then there will be technical meetings and public hearings, as
part of the NIRB process, but Buller doesn't expect that will
happen now until early 2017.
"I don't expect that we'll have much more information from the
company until then, but you never know. They've changed the project
many times before."
No changes to 10-month shipping proposal
Buller and Inuraq say this change does not reflect a change of
heart from Baffinland regarding its plans for 10-month
shipping.
In Inuktitut, Inuraq said Baffinland has not said when it will
move forward with work on Mary River, as the company has "indicated
that they are lacking financial resources."
It also appears that the company will still send ore south to
Steensby Inlet, as well as north to Milne Inlet.
"Right now they're permitted to transport 18-million tonnes from
Mary River to Steensby and they're permitted to move 4.2-million
tonnes from Mary River to Milne. They're proposing to increase that
amount from 4.2 to 12," he said.
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Chamber News Briefs 15
"They haven't said that they're planning to move all of it
North."
Buller says, while Baffinland hasn't explicitly stated this, it
is also looking to expand the port to accommodate larger ships.
That way "they don't have to ship as many times and they don't
have to use the trans-shipping method where one ship offloads its
cargo to another ship," he said.
"It makes the project more efficient."
Inuit organization looks to communities
Last November, the Qikiqtani Inuit Association visited the five
affected North Baffin communities to find out what local Inuit want
to know about the project.
"Typically what we're trying to do ... is understand community
concerns, potential impacts, worries, opinions, and pull that into
a QIA position so that QIA can then advocate for
beneficiaries."
Community directors expressed concerns about the many changes
with the project and the potential effects of this latest
development.
"Where do we draw the line?" Abraham Qammaniq, Hall Beach's
community director, said in Inuktitut. "They're not thinking of the
land. They're not thinking of the people."
Other board members wondered if there would now be fewer jobs
available for local Inuit.
"There's a good chance that operating the railway would reduce
the number of truck driver positions available for Inuit in the
region," said Buller. "But, there's also the trade-off that people
would be needed to build the railway."
President PJ Akeeagok said it was too early for the association
to have an official opinion on this latest change.
The Qikiqtani Inuit Association is planning to create a public
service announcement to explain the changes and hold more radio
call-in shows to gauge opinions, before formulating a position.
De Beers Canada to file plans to flood Snap Lake diamond
mine
'In a lot of cases flooding won’t impact the mine,' says Tom
Ormsby of De Beers Canada
CBC News - February 18, 2016
Guy Quenneville
De Beers Canada may flood the underground workings of its
shuttered Snap Lake diamond mine 220 kilometres northeast of
Yellowknife.
The company, which is currently suspending operations at the
unprofitable mine as a step towards placing the site on care and
maintenance, said it will file an extended care and maintenance
plan, which will include flooding the mine's underground tunnels
(which come with inherent and costly water problems).
"Companies look at partial or full flooding from an economic
point-of-view, as pumping water is expensive," said Tom Ormsby,
head of corporate affairs for De Beers Canada.
"Companies review costs as well as the technical specs on
whether or not flooding will compromise the integrity of the mine.
In a lot of cases flooding won't impact the mine, so it is a fairly
common practice for mines on care and maintenance."
Flooding the mine shouldn't be read as a bad sign, said Paul
Zimnisky, a diamond industry analyst.
"I don't think it's an indication of permanent closure at this
time," he said.
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Chamber News Briefs 16
De Beers said the length of the care and maintenance may be
three years or more, dependent on market conditions, "but will be
reviewed in late 2016."
Flooding also brings environmental benefits, said Zimnisky.
"By ceasing the pumping, the risk of returning contaminated
water back to the lake is reduced."
Ottawa prepares to hire Giant Mine cleanup manager
Workshop Feb. 25 in Yellowknife will spell out procurement
process
CBC News - February 18, 2016
Guy Quenneville
The federal government is close to kickstarting the process for
hiring a company to oversee the $900-million cleanup of Giant Mine
in Yellowknife.
"Public Works and Government Services Canada anticipates posting
its request for proposals for the Main Construction Management
contract in May 2016," the department recently wrote on
buyandsell.ca, the government's procurement website.
The department is hosting a workshop in Yellowknife on Feb. 25
to spell out the procurement process for the contract.
Projects to be carried out at Giant Mine include freezing the
237,000 tonnes of arsenic trioxide stored underground, taking down
close to 100 buildings, covering tailings ponds, water treatment,
restoring Baker Creek to as ecologically sound a state as possible
and long-term monitoring.
The overall timeline for remediation remains unclear.
Boart Longyear booth at PDAC 2016 to showcase TruCore™ and a
broad range of innovative solutions that increase safety
News Release - February 18, 2016
SALT LAKE CITY – Boart Longyear (www.BoartLongyear.com), the
world’s leading provider of drilling services, equipment and
performance tooling, will use PDAC 2016 – from March 6 to 9 in
Toronto – as an opportunity to showcase TruCoreTM and a broad range
of innovative solutions that increase safety.
“Boart Longyear is always focused on developing products to meet
clients’ productivity and safety needs,” said Kent Hoots, senior
vice president, global products. “We are looking forward to talking
with show attendees about some of our most recent product
innovations that will help them drill smarter and safer.”
Boart Longyear’s product experts will be on hand during PDAC
2016 at Booth 101 to showcase the following products:
TruCore™ Core Orientation System: The first product in Boart
Longyear’s instrumentation line, TruCore enables drillers to
provide the accurate data and the results mining clients count on,
while decreasing spend on consumables. As a trusted supplier of
drilling equipment and tooling for more than 125 years, Boart
Longyear is proud to offer the first alternative solution in the
marketplace for core orientation.
Sonic Performance Tooling and LS™250 MiniSonic™: Boart Longyear
will showcase its full line of sonic performance tooling, including
bits, core barrels, rods, casing and more. Additionally, experts
will be onsite to discuss the recently launched LSTM250
MiniSonicTM, a compact sonic rig that provides an overall safer
working environment. The rig is ideally suited for a wide range of
environmental and infrastructure drilling applications, including
difficult-to-reach drill sites.
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Chamber News Briefs 17
Drill Control Interface (DCi™): The DCiTM provides drilling
contractors a fully electronic interface to safely and efficiently
operate underground drilling equipment, such as the LMTM series,
via an independent, light-weight control panel. The LM75, LM90 and
LM110 rigs are compatible with the DCi system. The DCi increases
safety on-site by moving the driller away from moving parts and
hydraulic hoses.
LM™ / LF™ Rod Handlers: The risk of hand injuries due to the
handling of drill rods is one of the biggest hazards to drillers’
safety on-site. Boart Longyear’s range of patented rod handlers and
rod presenters significantly reduces a driller’s exposure to this
risk by totally or partially automating the rod tripping
process.
Reverse Circulation (RC) Rods: Boart Longyear’s RC rods are
manufactured from high-grade, quality steel, which ensures less
wear and longer lifetime, straighter holes and easier assembling of
inner rods in outer tubes. Drill rods are available with
Metzke-type, Remet-type, Faber-type and Matrix-type threads.
Drilling Services: Boart Longyear Drilling Services
professionals will also be on hand at PDAC to answer all your
questions about the company’s range of drilling services
capabilities and equipment.
About Boart Longyear
Boart Longyear is the world’s leading provider of drilling
services, drilling equipment and performance tooling for mining and
drilling companies globally. It also has a substantial presence in
aftermarket parts and service, energy, mine de-watering, oil sands
exploration and production drilling.
The Global Drilling Services division operates in over 30
countries for a diverse mining customer base spanning a wide range
of commodities, including copper, gold, nickel, zinc, uranium, and
other metals and minerals. The Global Products division designs,
manufactures and sells drilling equipment, performance tooling, and
aftermarket parts and services to customers in over 100
countries.
Boart Longyear is headquartered in Salt Lake City, Utah, USA,
and listed on the Australian Securities Exchange in Sydney,
Australia. More information about Boart Longyear can be found at
www.boartlongyear.com. To get Boart Longyear news direct, visit
www.boartlongyear.com/feed.
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