Northern Gateway pipeline approved by National Energy Board – with more than 200 conditions |
- Northern Gateway pipeline approved by National Energy Board – with more than 200 conditions
- Gold price drops to 3-year low
- Glencore Xstrata raises stake in Africa's copper belt
- IMAGE GALLERY: The leach tank break at Ranger Mine
- Mining ranks fifth – occupations projected to add the most new jobs
- Reaction to the Enbridge decision
| Northern Gateway pipeline approved by National Energy Board – with more than 200 conditions Posted: 19 Dec 2013 01:39 PM PST An independent panel appointed by Canada's National Energy Board (NEB) has approved Enbridge's proposed Northern Gateway pipeline, with more than 200 conditions. The three-member NEB panel will hand over its report and recommendation to the Federal government and Ottawa will issue its decision next year. "Based on a scientific and precautionary approach to this complex review, the Panel found that the project, if built and operated in compliance with the conditions set out in its report, would be in the public interest," the NEB wrote in a news release. Enbridge (NYSE:ENB), Canada's biggest energy transport company, first proposed the $6.5 billion project in 2004. The company's plan is to build twin lines across 1,177km from northern Alberta to Kitimat, BC, providing a steady stream of oil to tankers and opening Alberta's petroleum industry to Asia's oil-hungry markets. The westbound portion of the line would carry up to half a million barrels per day, and the eastbound nearly 200,000 barrels of condensate – a product used to thin oil for pipeline transport. The report In addition to recommending that the Federal government approved the project – subject to 209 conditions – the NEB has cautioned the government to ensure that the construction and routine operation of the line would "cause no significant adverse environmental effects, with the exception of cumulative effects for certain populations of woodland caribou and grizzly bear." The panel concluded that the "environmental burdens" of the pipeline could be "effectively mitigated." Meanwhile, the effects of a large oil spill would be "significant," but "unlikely and not permanent." The NEB also praised Enbridge for taking steps to minimize the likelihood of a large spill through its "precautionary design approach." As for economic considerations, the panel found that "opening Pacific Basin markets is important to the Canadian economy and society" and that the project would bring significant benefits. "After weighing all of the oral and written evidence, the Panel found that Canada and Canadians would be better off with the Enbridge Northern Gateway project than without it," the NEB wrote. Conditions The NEB's blessing has strings attached. In its news release, the panel identified some key conditions which include several requirements related to animal habitats – such as a Caribou habitat restoration plan – and measures to mitigate the risks of a potential oil spill – including a research program on the behaviour and clean-up of heavy oils. Opponents and proponents Environmental opposition has been fierce with groups citing concerns over potential oil spills and the difficulty tankers would have navigating the islands of the Douglas Channel. Enbridge came under fire last year after releasing a video of the tankers' passage while photo-shopping out about 1,000 square kilometers of islands. Opponents were quick to respond to Thursday's news. The Sierra Club issued a statement claiming that the Panel's decision "flies in the face of overwhelming evidence" and is a "message of disrespect to British Columbians on the eve of the holiday season." "The panel's recommendation is a disappointment, but unsurprising given such a flawed process," said Sierra Club BC campaigns director Caitlyn Vernon. Enbridge argues that the project would provide thousands of jobs and boost the revenues of Alberta, BC and Canada. The company also claims that over 200 experts and scientists have conducted a comprehensive environmental assessment and determined that the project is safe. BC businesses applauded the NEB's decision through the BC Chamber of Commerce. "This is great news for B.C.: It means that this pivotal, job-creating project has been examined from every angle and found sound," CEO of the BC Chamber of Commerce John Winter said in a statement. "With this decision, British Columbians can confidently back this project, knowing that it meets our top-tier environmental and community standards." Political support Canada's Minister of Natural Resources Joe Oliver was quick to respond to the NEB announcement. "The Panel's report represents a rigorous, open and comprehensive science-based assessment," Oliver said. "Now that we have received the report, we will thoroughly review it, consult with affected Aboriginal groups and then make our decision. We also encourage everyone with an interest to take the time and review the report." Meanwhile, Prime Minister Stephen Harper has already declared his support for the project, saying the government is committed to helping Canada's energy resources access new markets. In November the premiers of BC and Alberta surprised the public after reaching a framework agreement on an energy partnership – though BC Premier Christy Clark has identified five conditions relating to environmental, aboriginal and economic issues. In anticipation of Thursday's announcement, opponents have argued that even with Federal approval, the pipeline won't be built. Speaking with The Province last month, Keith Stewart, campaign co-ordinator for Greenpeace, said that although he "fully expect[s]" Ottawa to give its approval but that he thinks the line will "never be built." Jessica Clogg, senior counsel at West Coast Environmental Law, told The Province that a number of First Nations groups would likely take the project to court. "The courts have ability to quash or set aside any unconstitutional decisions of government," she said. Enbridge's share price was up just over 1% minutes ahead of the news, trading at $45.33 per share. See also: BC and Alberta one step closer to moving Alberta's oil sands to Asian markets  |
| Gold price drops to 3-year low Posted: 19 Dec 2013 12:52 PM PST The gold price dropped 3.5% to a more than 3-year low on Thursday, after a decision yesterday by the US Federal Reserve to make cuts to its economic stimulus program boosted the dollar. On the Comex division of the New York Mercantile Exchange, spot gold or so-called front-month futures dropped more than $40 an ounce to $1,193.60 by the close and near its lows for the day. That was the weakest closing level for the metal since August 2010. The three-month contract for gold fell to an intra-day low of $1,187 at the end of June . The Fed surprised the market on Wednesday with the announcement of a scaling back of its $85 billion a month purchases under its quantitative easing program that has pumped $4 trillion of easy money into the US economy. Monetary expansion, particularly since the financial crisis, has been a massive boon for the gold price. Gold was trading around $830 an ounce before Chairman Ben Bernanke announced Q1 in November 2008. Gold and the US dollar usually moves in the opposite directions and gold's perceived status as a hedge against inflation is also burnished when central banks flood markets with money. But with ultra-loose monetary policy now a step closer to ending and with inflation remaining near record lows in the US two major factors providing support for the gold price have now been removed. There has been a steady exit from the gold market since April when a $200 drop in the price over two trading sessions shocked investor confidence in the metal. Holdings of the world's largest gold ETF – SPDR Gold Shares (NYSEARCA:GLD) – has dropped 30 tonnes just this month and in total more than 800 tonnes have left gold-backed funds this year. Given the lack of inflation and with large investors abandoning the sector in droves, the metal seems destined to drift lower in the absence of a strong catalyst to drive the price higher. The price of gold is down some 28.7% in 2013 and is set to break its 12-year bull run that took it from around $270 an ounce at the end of 2000 to a record high above $1,900 in September 2011. Gold's $480 an ounce fall in 2013 is the worst performance since 1980, when the yellow metal hit $850 an ounce in January only to fall back $200 in a matter of days. At $2,400 an ounce in inflation adjusted terms 1980's gold price still hold the all-time record. In that year the US inflation rate peaked at just under 15%, versus 1.2% today.
 |
| Glencore Xstrata raises stake in Africa's copper belt Posted: 19 Dec 2013 09:05 AM PST  Open pits of the Mutanda copper mine seen from the air, via YouTube. Glencore Xstrata (LON:GLEN) confirmed Thursday it had acquired an additional 14.5% interest in Mutanda, a copper mine in the province of Katanga, Democratic Republic of Congo, raising its indirect interest to 69%. Mutanda, a high-grade copper and cobalt producer, has become a significant producer of the red metal thanks to Glencore. The firm has invested $670m to double the mine's capacity from about 100,000 tonnes of copper cathodes in 2012 to 200,000 tonnes next year. The mine is seen as one of Glencore's key growth assets in Central Africa's copper belt, where the miner and commodities trading giant already owns indirect interests in copper operations through its majority stake in DRC company Katanga Mining. The company acquired a 54.5% interest in Mutanda in July, receiving at the time a put and call option agreement for the additional 14.5% stake. Glencore is also moving full-speed with its plans to boost coal production in South Africa. On Wednesday it was granted regulatory approval to purchase the right to export an additional 6.5 million tonnes through the Richards Bay Coal Terminal from BHP Billiton's Energy Coal South Africa (BECSA). Despite the mounting issues affecting the mining industry in South Africa, from strikes to growing costs, the company's chief executive Ivan Glasenberg has never been not afraid of betting on Africa's largest economy. Not counting he is a native of South Africa, Glasenberg has repeatedly said the country is a great platform from where the company can tap into the rest of the continent. Glencore Xstrata's projects in the country include the Goedgevonden thermal-coal complex in the Mpumalanga province, the Helena underground chrome mine on the eastern limb of the Bushveld Complex, the Wonderkop ferrochrome plant in the North West Province and the Eland platinum mine near Pretoria. Glencore merged this year with Xstrata – company that had strong South African links – to form one of the world's largest commodities groups. |
| IMAGE GALLERY: The leach tank break at Ranger Mine Posted: 19 Dec 2013 08:51 AM PST Mining Mayhem has a gallery of images of the Ranger Mine leach tank break. On Dec. 8 a leach tank with 1,450 cubic metre capacity failed at Energy Resources Australia's Ranger Mine (ASX:ERA) spilling mud, water, ore and acid. The mine is located within the Kakadu National Park. Mine officials say the spill was contained. Regulatory officials are investigating. |
| Mining ranks fifth – occupations projected to add the most new jobs Posted: 19 Dec 2013 08:20 AM PST Despite a falling gold price and workplace automation, the US Bureau of Labor Statistics forecasts that mining will be one of the top sectors adding jobs and it will out pace transportation and agriculture in hiring.
The BLS projected what sectors will be adding the most new jobs between 2012 and 2022. Mining was fifth with an annual employment rate changes of 1.4. First was health care and social assistance. Agriculture, manufacturing and utilities are all expected to see declines. |
| Reaction to the Enbridge decision Posted: 19 Dec 2013 07:30 AM PST Individuals and groups took to Twitter to criticize the National Energy Board's approval of Enbridge's proposed Northern Gateway pipeline: The real fun is about to begin. |
| You are subscribed to email updates from MINING.com To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 Comment for "Northern Gateway pipeline approved by National Energy Board – with more than 200 conditions"