Chamber of Mines News Briefs February 18 - 19, 2016€¦ · Chamber of Mines News Briefs – February 18 - 19, 2016 [Note: News headlines are hyperlinked to their stories in this

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 ................................................................................................................................................ 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 ................................................................................................................... 5 Lines of communication ............................................................................................................................ 6

NWT News..................................................................................................................................................... 7 Tłıc̨hǫ Caribou Report: Declining, Diseased, Dying ................................................................................... 7 MLAs opposed to budget cuts .................................................................................................................. 9 Diavik hiring gets Snap Lake interest ...................................................................................................... 10 MLAs demand solutions for slumping economy ..................................................................................... 11 Gold mine could double Yellowknife's power needs: TerraX ................................................................. 12

Resource Development and Energy News .................................................................................................. 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.


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


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.


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.


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


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


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.


"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


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.”


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.


"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.


"(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.


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


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.


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."


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.


"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


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.


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


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.


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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Chamber of Mines News Briefs February 18 - 19, 2016€¦ · Chamber of Mines News Briefs – February 18 - 19, 2016 [Note: News headlines are hyperlinked to their stories in this