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At this link is a report that is a pleasure to read.  The report is called Pathways to Mineral Development—A Report of the Stakeholder Engagement Panel for the NWT Mineral Development Strategy.   Here from the Executive Summary is why the report was prepared:

  • Given the limited life expectancy of the operating mines, and the fact that the projects currently in the advanced stages of exploration or development would employ less than half of the current mining workforce, revitalizing grassroots exploration must be a priority.
  • The principal deterrents to investment in exploration and development are uncertainty surrounding the regulatory regime, gaps in infrastructure (particularly power and roads), land access restrictions, and unsettled land claims.
  • The principal barrier to the NWT reaping greater benefits from mineral development is the limited pool of skilled workers. This is exacerbated by community wellness issues and the pressures inherent in the work rotation schedule. As a result of the skilled labor shortage, 50 percent of the mining workforce commutes from outside of the NWT. This results in significant lost revenue in terms of federal transfers under the Territorial Formula Financing Agreement, as well as reduced tax revenues and ongoing salary leakage to other jurisdictions.
  • Northerners value their environment. Key indicators suggest that the operating mines are not having a deleterious effect on the physical environment, which can be attributed to a combination of modern mining practices and a rigorous regulatory regime.
  • Devolution represents an historic opportunity for the GNWT to make immediate improvements to the management and marketing of the NWT’s mineral resources, and in so doing, re-brand the NWT as an excellent place to do business. As the responsible resource manager following devolution, the GNWT will also be in a much stronger position to forge strategic partnerships with Aboriginal governments to collaboratively manage and market the mineral resources of the NWT.

And here is the framework for what they recommend:

  • Creating a Competitive Edge:  Key themes include enhanced public geoscience, incentives to promote exploration, aggressive marketing of the potential of the NWT as a place to explore and mine, and investments in infrastructure.
  • Creating a New NWT Regulatory Environment:  Although the foundational elements of the regulatory regime are largely a federal responsibility, there are a number of steps that the GNWT can take to improve client service and to increase certainty.
  • Aboriginal Engagement and Community Capacity Building:  Enhanced community capacity and the development of “engagement roadmaps” and would contribute to more Pathways to Mineral Development Report of the Stakeholders Engagement effective consultation as well as timely permitting and environmental assessment processes.
  • Sustainability: Key recommendations include accelerated land use planning, review of the Protected Areas Strategy, implementation of a legally-enforceable progressive reclamation policy, increasing opportunities for NWT businesses, and establishment of a Heritage Fund to ensure a lasting legacy.
  • Workforce Development and Public Awareness:  Priorities include securing ongoing funding for established training programs, doubling-down on efforts to increase high school graduation rates, increasing awareness of career opportunities in mining, and improving public understanding of the modern mining industry.

The ninty-page report goes into detail on each of these points.  Well worth while reading.  The only depressing thing is the limited life of the mines currently in operation in the NWT.  Tomorrow I go to one of them to deal with limited space for tailings.

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For months I let Paul Collier’s The Plundered Planet sit on my desk.  A reader of this blog had recommended the book to me.  A colleague took it off my desk and returned the book praising it.  I was almost nervous to read it least I could not share their enthusiasm. (more…)

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Penguins

Here is an announcement that Gold Fields in South Africa is supporting my alma mater: (more…)

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One of the miracles of the free-market system is that when one person sells a share, there is another who is buying.  Who are the current buyers when all are seemingly selling? (more…)

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There is no mine water solution for the Pascua Lama mine in the high Andes of Chile and Argentina.  Here is one report(more…)

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Massive landslide damages Kennecott\'s Bingham Canyon Mine

A massive slope failure has occurred at the open pit of the Bingham Canyon Mine in Utah.  Here is a link to a magnificent collection of photographs of the failure, which appears to have taken out part of a building, access roads, and filled the bottom of the pit with slide material.  Nobody was hurt: the mine had been monitoring movement and when deformation increased from 1 mm a day to 5 mms day they pulled out all workers.  A fine testament to the engineers who study rock and soil slope stability in the open pit mine context.  (more…)

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The government of Argentina has ordered Vale to continue to employ nearly 6,500 workers at the Rio Colorado potash mine that Vale is seeking to close.   Vale wants to close the mine as it is presumably not making money, inflation in Argentina is 25 % per annum, and Vale did not get tax breaks they were seeking.  (more…)

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This is an obscure piece: to protect the innocent (or guilty as the case may be.) I obfuscate.  I am back in California as I write this, having used my Global Entry card for the first time—the stupid machine struggled to read my fingerprints.  (more…)

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Yesterday I finished a three-day EduMine webcast on Mining Investment – Understand the Risks.  Today I took my own advice to heart and attended a presentation by Luquman Shaheen of Panoro Minerals Ltd on their projects in Peru.  Should I invest?  Should I advise you to invest?  Should we join Hudbay Minerals who own some seven percent of the company in the excitement of new prospects in a mining-potential-rich part of Peru? (more…)

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Here are links to two e-books on the issues of risks and mining in 2013.  Both required reading if you are investing in mining:

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