2013年12月29日星期日

Is LNG fracking worth its weight in water?


More than seven billion litres of water were used for fracking in B.C. last year. If the government’s liquefied natural gas sector takes off, the water needed to get shale gas out of the ground in the northeast corner of the province will likely increase by 500 per cent, or more.
Much of that water is consumed with only minimal regulation. A new law set to be introduced in the spring would, for the first time in B.C., impose fees for the use of groundwater and allow for government to restrict water use in times of scarcity. But it’s not likely to rein in the practise of hydraulic fracturing, which is critical to the development of LNG.
Lana Lowe is the director of the Fort Nelson First Nation’s department of land and resources. The water taken out of the band’s territory has already increased 12-fold in the past two years. Sitting in on an environmental appeal board hearing in Victoria in late December, where the Fort Nelson are trying to stop just one of the many applications for a fracking project in their backyard, Ms. Lowe senses that they are trying to stand in the way of a locomotive.
“There is a gold rush on our water resources,” she said, during a break in the hearing, which has already run on for weeks. The band’s chief is not attending because she is at the Site C dam hearings – the resources of this band of 800 members are stretched thin.
At issue in the appeal board hearing is Nexen Inc.’s licence to divert water from North Tsea Lake, north of Fort Nelson – up to 2.5 billion litres per year. The company stores the water for fracking. The Fort Nelson First Nation says this is in the core of their traditional territory and it infringes on their treaty rights, which grant them the right to hunt and fish as they did before they signed their treaty in 1899.
This is just one of many such projects in their territory, and the cumulative impact has transformed the north, now cross-hatched by clearings for seismic readings, the most visible mark on the landscape.
But below, the water table is changing too. Ms. Lowe recalls her grandmother used to drink straight out of the muskeg. “Our elders didn’t have to bring water when they went out on the land. … Now everyone packs water. They are afraid of contamination.”
Environment Minister Mary Polak is planning to bring in the new Water Sustainability Act in the spring, applying some regulation to the allocation of water rights. She said in an interview this should address some of the fears around fracking. Water used for fracking is currently sourced from both surface and groundwater – the latter source is largely unregulated. The act would require that environmental flows be considered by decision-makers before authorizing water use. Which is not to say that the government would shut off the taps.
“This act will allow us to have tighter control because we’ll have better understanding, better monitoring, better reporting and the capacity to step in if there is a risk to environmental flows,” Ms. Polak said. Will it bestow a social licence on fracking – something that is increasingly in question? “I think increasing transparency will be a huge part in creating that trust. We have made good strides but there is more we can do. The more information people have, the more confidence they can feel in our regulatory regime.”
However, she does not see the need for a dramatic change in practices: “We don’t have any evidence of drinking water contamination in our history of fracking.” Then again, that is still under study. The Ministry of Health is conducting a Human Health Risk Assessment of the oil and gas sector in the region. The study is expected to be complete by the spring.
Ms. Lowe, who has reviewed the proposed changes to water regulations, doesn’t take much comfort from Ms. Polak’s assurances. “This new Water Act looks like they are going to make it easier for companies to get what they want for shale gas. We are getting in front of that, and it is a really tough position to be in. There is so much pressure to get this done.”
Ms. Polak acknowledges that her legislation is unlikely to satisfy everyone. The new Water Sustainability Act is bound, she said, to “get people’s dander up.” But she accepts that as inevitable, falling back to a quote attributed to Mark Twain to describe the path ahead: “Whiskey is for drinking, water is for fighting over.”

Verde Potash Announces Cost Reductions and Mr. Leonardo Moretzsohn's Resignation


Verde Potash (TSX: "NPK") ("Verde" or the "Company") would like to announce that Mr. Leonardo Moretzsohn has resigned from the Board effective immediately for personal reasons. The Company would like to thank Mr. Moretzsohn for his support and contribution, wishing him well in his future endeavors.
In order to reduce costs, Verde will reduce its number of directors to six, five of whom will be non-executive directors.
Over the last few weeks, the Company has been reducing costs as much as possible, including personnel, consultancy, benefits and travel expenses.
President & CEO, Cristiano Veloso, commented: "The Company is expecting to reap the benefits of a highly productive past year with anticipated results in Q1 2014 from a pre-feasibility study, Inova Agro's funding allocation decision, and ThermoPotash agronomic trials. Nevertheless, the Company is taking measures to substantially reduce its expenditures. Also, since IPO in 2007, Verde has issued only 9,114,559 shares and intends to continue protecting its share structure while advancing the project."
About Verde Potash
Verde Potash, a Brazilian fertilizer development company, is focused on advancing the Cerrado Verde project located in the heart of Brazil's largest agriculture market. Cerrado Verde is the source of a potash-rich deposit from which the Company intends to produce both ThermoPotash and potassium chloride (KCl). ThermoPotash is a controlled-release, non-chloride, multi-nutrient fertilizer that is ideally suited for Brazilian soils. In addition, the Company is developing its Calcario limestone project, limestone being a key raw material in the Company's process to produce both ThermoPotash and KCl
About the Cerrado Verde Potash Project
Cerrado Verde is a unique project: 1) its high grade potash rock outcrops and is amenable to strip mining, allowing fast construction of a scalable operation; 2) it is located in the midst of the world's third largest and fastest growing fertilizer market; 3) it connects to Brazil's largest fertilizer distribution districts via existing and high quality infrastructure; 4) it has the potential to supply both ThermoPotash and KCl to Brazil's local agriculture market from its large potash-rich deposit.

2013年12月25日星期三

Mui coal mining launches today


THE multi-billion shilling coal mining in Mui Basin, Kitui County was launched yesterday after months of anxiety.
Speaking yesterday after a meeting with local leaders and the investor, Energy Cabinet Secretary Davis Chirchir said that all the issues that had stalled the start of the mining process had been resolved.
Chinese firm, Fenxi Mining Industry won the tender to mine the coal deposits in the Mui basin, which is estimated to be valued at over Sh3.4 trillion. Chirchir said that once the project has been completed, the mineral could provide up to 3,500 megawatts of cheap electricity. The project will also create jobs as well as boot the economy of the county and the country at large.
The local community has complained that the government has kept them in the dark during tendering and negotiation for compensation and relocation of the current land owners. But Chirchir said that all the issues that had been raised by the local community including land adjudication and processing of titles and revenue sharing will be addressed.
Coal deposits have been discovered in four blocks and it is estimated that about 30,000 households who will have to be relocated to pave the way for the project.
Community Liaison committee led by Eric Mutua confirmed that the concerns they had raised had been addressed. During the press briefing yesterday, Governor Joseph Malombe, Senator David Musila and area MP Joe Mutambo and other local leaders were present. Also present was the voce chairman of Fenxi, Yang Wusheng.
The committee was formed for purposes of linking locals with the government and to ensure that local interest were protected.
- See more at: http://www.the-star.co.ke/news/article-148285/mui-coal-mining-launches-today#sthash.UrwTbQ1l.dpuf

Hormone-Disrupting Chemicals Linked to Fracking Found in Colorado River


This week, more evidence came in that hydraulic fracturing (or fracking) poses potentially serious risks to drinking water quality and human health.
A team of researchers from the University of Missouri found evidence of hormone-disrupting activity in water located near fracking sites – including samples taken from the Colorado River near a dense drilling region of western Colorado.
 
The Colorado River is a source of drinking water for more than 30 million people.
 
The peer-reviewed study was published this week in the journal Endocrinology.
 
Fracking is the controversial process of blasting water mixed with sand and chemicals deep underground at high pressure so as to fracture rock and release the oil and gas it holds. It has made previously inaccessible fossil fuel reserves economical to tap, and drilling operations have spread rapidly across the country.
 
The University of Missouri team found that 11 chemicals commonly used in the fracking process are “endocrine disrupters” – compounds that can affect the human hormonal system and have been linked to cancer, birth defects, and infertility.
 
“More than 700 chemicals are used in the fracking process, and many of them disturb hormone function,” said Dr. Susan Nagel, associate professor of obstetrics, gynecology, and women’s health at the University of Missouri School of Medicine and a co-author of the study, in a news release.
 
“With fracking on the rise, populations may face greater health risks from increased endocrine-disrupting chemical exposure.”
 
The research team collected samples from ground water and surface water from sites in Garfield County, Colorado, where fracking fluids had accidentally spilled, as well as from the nearby Colorado River, into which local streams and groundwater drain. They also took samples from other areas of Garfield County where little drilling has taken place, as well as from a county in Missouri where there had been no drilling at all.
 
They found that the samples from the spill site had moderate-to-high levels of endocrine-disrupting activity, and the Colorado River samples had moderate levels.  The other two samples, taken from areas with little or no drilling activity, showed low levels of endocrine-disrupting activity.
 
The new findings add urgency to calls for moratoriums on fracking until the risks have been fully assessed and regulations and monitoring put in place to safeguard water supplies and public health.
 
Due to the so-called “Halliburton loophole,” the oil and gas industry is exempt from important requirements under the federal Safe Drinking Water Act, and states have been slow to fill the regulatory gap.
 
Colorado, in particular, should exercise the utmost caution.
 
According to a report by Ceres, a Boston-based non-profit organization that educates investors about corporate environmental risks, 92 percent of Colorado’s shale gas and oil wells are located in “extremely high” water stress regions, defined as areas in which cities, industries and farms are already using 80 percent or more of available water.
 
Adding contamination risks to the high volume of water fracking wells require – typically 4-6 million gallons per well – argues strongly for a precautionary approach to future development and a pause in existing production until the full range of environmental health risks can be assessed.
 
But Colorado Governor John Hickenlooper has said the state will sue any city that bans fracking within its borders.  Indeed, in July 2012, the state sued the front-range town of Longmont, which had issued such a ban.
 
A statement about the new findings of endocrine-disrupting chemicals (EDCs) in waters near fracking sites issued by Concerned Health Professionals of New York, and posted here, concludes with this warning:
 
“These results, which are based on validated cell cultures, demonstrate that public health concerns about fracking are well-founded and extend to our hormone systems. The stakes could not be higher. Exposure to EDCs has been variously linked to breast cancer, infertility, birth defects, and learning disabilities. Scientists have identified no safe threshold of exposure for EDCs, especially for pregnant women, infants, and children.”
And environmental health expert Sandra Steingraber writes in a letter posted at the same site:
 
“[I]t seems to me, the ethical response on the part of the environmental health community is to reissue a call that many have made already:  hit the pause button via a national moratorium on high volume, horizontal drilling and fracking and commence a comprehensive Health Impact Assessment with full public participation.”
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2013年12月18日星期三

Shares spike at Aquila after Baosteel lifts stake


SYDNEY – Shares of Australia's Aquila Resources briefly rose more than 6% on Thursday after the company said one of China's largest steelmakers, Baosteel, had raised its stake to almost 20%.
The stock climbed as high as A$2.25, or by A$0.13 before falling back. At 03:00 GMT it stood 2% higher at A$2.16.
Baosteel bought 19-million Aquila shares, or 4.6% of all outstanding shares, taking its stake to just under the 20 percent threshold where it would need to declare its takeover intentions under Australian securities rules.
Baosteel initially acquired a 15% interest in 2009 and has a representative on the company's board.
Aquila in a statement said it took Baosteel's move as a "sign of support" for its undeveloped West Pilbara iron-ore project.
China, under its five-year plan, has said it aims to secure half its imported iron ore from mines owned or co-owned by Chinese firms by 2015, up from 15% in 2011.
Aquila's executive chairman, Tony Poli, was not available for comment. A company spokesman said it was not immediately apparent if the stock was acquired by Baosteel on or off market.

Australia to ship more iron-ore as miners shrug off China risks


SYDNEY – Australia raised its forecasts for exports of iron ore and metallurgical coal -- its two top export revenue earners -- reflecting massive expansion work underway to meet demand for raw materials to make steel in China.
despite moves to curb industrial growth rates and close some ageing steel works, China continues to produce more than two-million tonnes of crude steel daily, almost 10 times the rate in the United States.
Australia, the world's biggest producer of iron ore, forecast a 23.3% rise in exports to 650-million tonnes in the 2013/14 fiscal year, data from Australia's Bureau of Resources and Energy Economics (BREE) showed on Wednesday.
The forecast was raised from an estimate of 615-million tonnes just three months ago.
"The super cycle is not over yet," said Keith Goode, an analyst for Eagle Mining Research in Sydney, referring to unprecedented commodity demand driven by Chinese demand.
"In China, the main demand still appears to be for iron ore."
Australia's troika of big producers are spending billions of dollars to dig more, betting on greater economies of scale to enable them to ride out troughs in the demand cycle
Rio Tinto is preparing to raise output capacity by about a fifth to 360-million tonnes by 2015. BHP Billiton is also boosting production.
Fortescue Metals is in the early stages of setting up its next stage of growth in iron ore production beyond an annualised rate of 155 million tonnes.
China has plenty of its own iron ore. But much of it is so low grade its cheaper to import ore with three times higher iron content from Australia than mine it at home.
Australia's exports of metallurgical coal used in making steel for the year are forecast to increase by 6%to 163.9-million tonnes, according to BREE.
China alone is expected to boost its imports of metallurgical coal by 8% to 99-million tonnes in calendar 2014, BREE said.
CHINA RISKS
The Australian data underscores continuing strength in iron ore shipments and a resurgence in coal, while other major commodities produced in the country wane.
China buys the lion's share of Australia's iron and coal.
China's overall iron ore imports are expected to climb to a record 850-million tonnes next year, up from an estimated 800-million tonnes this year, in step with steel output and demand.
Still, according to Australia & New Zealand Bank, markets for raw materials used in steel making face pressure as higher freight rates and falling steel prices curb Chinese buying leading into the Chinese New Year.
China rebar futures -- a barometer of activity -- hit a 2-1/2-month high last week, though the May 2014 contract has declined more than 2% since then.
And while still above two-million tonnes, China's average daily crude steel output fell for the third straight 10-day period this week and declined 3.7% in the first 10 days of December, data from the China Iron and Steel Association showed.
Also, steel mills in China are facing more shutdowns next year under China's latest economic reform agenda as the government steps up its fight against air pollution.
A slower Chinese economy is also expected to halve the growth pace of steel demand to around 3% next year.
Nonetheless, after falling below $87/t in September 2012, the steel-making mineral now fetches around $134 .
By contrast, rising costs and declining gold prices are cutting or wiping out profits of Australian gold producers.
Exports by Australia, the world's second-biggest gold producer behind China, are forecast to decrease by 4% in 2013/14 to 270 tonnes, BREE said.

2013年12月15日星期日

Mamba Minerals Ltd to merge with CHAMPION IRON MINES LIMITED

Mamba Minerals Ltd and CHAMPION IRON MINES LIMITED:Says Mamba Minerals Ltd has entered into a definitive arrangement agreement (Arrangement) to effect a merger with CHAMPION IRON MINES LIMITED.Says under the terms of the Arrangement, CHAMPION shareholders will receive 11 Mamba shares for every 15 shares they hold.Says the merged company will remain listed on the Australian Securities Exchange.Says Mamba Chairman Michael O’Keeffe will transition to Executive Chairman of the merged company with an immediate term mandate to progress the development of Fire Lake.Says Thomas Larsen the current Chairman and CEO of CHAMPION will become the CEO of Mamba. 


Read more: Van Oord-GMB JV to Reinforce Dordrecht Island

Patriot Gold pours first gold from Arizona project


Las Vegas-based emerging gold producer Patriot Gold has poured first gold from the Moss project, in Mojave county, Arizona.
The company said that to date, precious metal sales had weighed in at $365 826, based on 270.4 oz of gold and 588.6 oz of silver recovered over recent months from the pilot plant.
The precious metals were sold at $1 326/oz of gold and $22.30/oz of silver. More shipments were undergoing processing for which Patriot was waiting to determine its value.
Patriot Gold's earn-in partner had recently provided a technical update for the Moss project, reporting positive findings. Canada-based Northern Vertex has the right to earn a 70% interest in the Moss property, after which the companies would form a 70:30 joint venture.
Construction of the pilot plant started in early May and was completed at the end of July. According to the preliminary economic assessment (PEA) for Phase 1 of the project, 91 000 t of ore was to be extracted from the mine.
Mining started in June and a total of 90 199 t had been mined. Leaching began in mid-August, and would continue well into 2014.
Northern Vertex had now gathered enough data from processing to optimise the leach pad design, which could result in increased plant throughput.
"We are delighted to reach this momentous milestone on our project, which has been fast tracked through to production. We look forward to gathering pertinent data over the next year to set the base for transition into Phase 2 operations," Patriot Gold president and CEO Bob Coale said.
The second phase would target an output of 42 000 oz of gold equivalent a year from the end of 2014.

2013年12月8日星期日

Local workers may not be in line for mining jobs


Mel Rothenburger’s recent speech on the mine was inspiring and right on the money in my view (The Daily News, Nov. 25).  
What he didn’t address was the assumption that most of the proponents of the mine are making that there will be lots of great paying jobs for Kamloops workers if the mine goes ahead.  
I think there are good reasons for doubting that assumption.  More likely there will be an army of foreign workers hired “temporarily” at minimum wage to do the work, replacing them with “new” foreign workers when their time runs out.
To quote the Huffington Post:
“Thousands of Canadian employers use temporary foreign workers. The Alberta Federation of Labour recently obtained a list of more than 4,000 companies that have used the ‘fast-track’ process since it came into existence a year ago, in April 2012.”
“We took that list and combined it with the Globe and Mail’s list of largest Canadian employers to find out which of them are using the ‘fast-track’ process. Of the
50 largest Canadian employers, The Huffington Post was able to confirm that at least 18 of them were on the AFL’s list.”
Also look at the following link for Temporary Foreign Worker Impacts Felt Far Beyond RBC (www.huffingtonpost.ca/2013/04/13/rbc-foreign- workers_n_3073989.html)
On this post, Mark Thompson, professor emeritus at UBC’s Sauder School of
Business, says the story is much bigger than the four dozen Royal Bank workers, and it’s far from over:  
“I think there’s going to be more examples of temporary foreign workers doing things that most people in the public wonder about.”  
Thompson says there are over 300,000 temporary foreign workers in Canada in jobs that aren’t temporary in restaurants, in health care, and in many other fields.
“Normally, if you have a shortage of people, the response is wages go up . . . If you can get foreign workers for the prevailing rate where the market doesn’t clear, then you never have to raise the wages for the Canadians,” he said.


Comments:
  • Avatar
    Oh boy...here we go again. I got as far as The Huffington Post....and quit reading. Here's a few non-fear-mongering comments instead. The rules for foreign workers are very strict....maybe try researching what hoops the employers have to jump through before any foreign worker comes here. Ironic that those whining about a supposed lack of local hiring, are all old and retired. I guess these same locals also have no idea what the shortage of skilled workers means to the economy or to employers. How many of you have ever worked at Domtar ?....if you have, you would KNOW that they very rarely hire from outside THIS community. For years they wouldn't even accept an application if it didn't have a Kamloops return address. Did any of you even realize that ? My company, as well as most, have a policy of in house job posting first....then they go in company and finally, they will go outside the company. I really wish some people around here would get all the facts before they blindly swallow what a bunch of self-serving and partisan people throw at them. Sad...but that's why it's Fruitloops.
      • Avatar
        I admire you for your constancy in believe that our governments are acting in our best interests and that their regulations are applied fairly and honestly and that no one knows how to get around these rules or manipulate the decisions of panels and boards. However your comment about "hoops" that employers have to jump through is mostly wrong. A company can cease to be the employer - they contract out the provision of labour to a contracting firm to supply the workers - and these contractors are bringing in temporary foreign workers by the thousands with few or any "hoops". They are replacing Canadian workers who are being fired, all over the country for example 300 highly skilled trades workers were fired in Fort McMurray a month ago and replaced with temporary foreign workers using this approach. Please get all the facts before you blindly swallow what a bunch of self-serving and partisan people throw at you.
          • Avatar
            Having faith in our government to look after our interests before those of corporations or foreign nations is becoming rare.
              • Avatar
                Naivety in a young child is called innocence; but in an adult who has been around so much, seen so much and knows so much, I would call it blind ignorance.
              • Avatar
                There is a severe shortage in BC for skilled labour in all levels of resourse extraction. In Austrailia, mines are loosing people in droves as workers leave mining operations for better paying LNG projects. The same will happen here in BC. Firstly Ajax will have difficulty drawing workers from establsihed mines to work for a foreign owned low grade operation with no track record that will be subject to shut down at the first hint of lower copper prices. Secondly KGHM has a poor environmental record http://www.greenbiz.com/news/2... and poor labour relations back home http://www.euronews.com/2011/0...
                Who would quit their secure employeement to work for this substandard organization? Workers from Poland?
                • Avatar
                  Ajax Mine's priority is to its shareholders
                  - Not employees
                  - Not the City of Kamloops
                  - Not the environment
                  - Not the politicians
                  The will build this mine as cheaply as possible, operate it as cheaply as possible and if it means hiring their own from back in Poland, they will. The average miner's salary in Poland is $3000 USD. That is why they will not guaranttee to hire locally. Do the math, a Polish worker will take a job at a much lower wage than local workers and will likely be more qualified as they are trained in KGHM procedures. Less operating costs means more profits to the Company, 32% of which is owned by the Polish government. The mine has a high probability of hiring foreign workers and profits will trickle back home to fund government services there as Hydro subsidies ensure profits are maximized. Seniors and schools in BC will be worst hit by 28% Hydro increases all while Ajax profits will fund seniors and schools in Poland.
                  THIS IS TOTALLY UNACCEPTABLE!