Friday, May 6, 2011

Good News for BC

Re: News & Articles - Friday, May 06, 2011
Title: HIGHWAY 37 POWER LINE RECEIVES FEDERAL APPROVAL
Terrace, BC - The Northwest Power Line Coalition heartily welcomes the federal approval of the Northwest Transmission Line today: http://www.ceaa-acee.gc.ca/050/details-eng.cfm?evaluation=51726.

Infrastructure Canada announced that the Northwest Transmission Line, a proposed $404-million, 344-kilometre transmission line project, from the existing Skeena substation south of Terrace to a new substation near Bob Quinn Lake, is not likely to cause significant adverse environmental effects. This decision complements the granting, by the BC Environmental Assessment Office on February 24, 2011, of an environmental assessment certificate for the line.

"This announcement is a critical milestone for the development of industry and green energy projects in northwestern BC," said Dave Pernarowski, Co-Chair of the Northwest Transmission Line, and mayor of the City of Terrace. "The electrification of Highway 37 from Terrace to Bob Quinn Lake and beyond is a fundamental infrastructure development that will allow us to diversify and stabilize the regional economy."

"We are very pleased that the federal government has approved extending the transmission grid into this resource-rich region of the province," stated Gordon Loverin, Co-Chair of the Northwest Transmission Line, founder and current President of the Tahltan Business Council and owner of T'senaglobe Media Inc. "The northwest transmission line will strengthen northwestern BC's economy as well as open up opportunities for Yukon and Alaska. This will also be a catalyst to create cooperation among First Nations to the benefit all peoples of the north."

"We thank the federal government for their timely approval," acknowledged Pernarowski and Loverin. "We look forward to the commencement of construction of this much anticipated power line that will open up opportunities in the Northwest of great value to all British Columbians."

About the Northwest Power Line Coalition
The coalition represents communities, the Northern Development Initiative Trust, non-profit organizations, mineral exploration and mining companies, independent power producers, joint venture First Nations companies and individuals committed to the construction of a high voltage transmission line from Terrace to Dease Lake, British Columbia, and perhaps beyond. The coalition is committed to sustainable economic development in Northwestern British Columbia and believes electrical infrastructure is the key to the future of British Columbia's Northwest.

- 30 -

Contact information:

Dave Pernarowski, Co-Chair, Northwest Powerline Coalition
Email: dr79@telus.net
Tel: 250-615-9576

Gordon Loverin, Co-Chair, Northwest Powerline Coalition
Email: overin@tsenaglobe.coml
Tel: 604-842-9809
Copyright © 2011 HIGHWAY 37 (HWY) All rights reserved. For more information visit our website at http://www.highway37.com/ or send email to cthomson@mining.bc.ca .
Message sent on Fri May 6, 2011 at 3:39:58 PM Pacific Time

Saturday, April 2, 2011

2011 Federal Election in Rural BC

There are 10 ridings in BC that have significant rural areas.



Kelowna Lake Country does not make my list because it is purely an urban riding has no rural aspect to it.

West Vancouver - Sunshine Coast - Sea to Sky Country is the only large riding in BC that really has no major rural aspect to it.  Powell River is in this riding but I think should really be connected to Vancouver Island North.  The nature of West Vancouver and the Whistler corridor really dominate this riding.

There will be at least four new MPs from rural BC, though the odds of it being more than four is very, very low.   The only two ridings with any potential of changing hands are Kamloops-Thompson-Cariboo and Kootenay-Columbia.  In both cases the NDP has a long shot chance.

I will putting pages together for each riding and following the election in rural BC.

Monday, February 21, 2011

Hwy #37 News

First Item:
Announcing New Co-Chair for the Northwest Powerline Coalition
Terrace, BC - Gordon Loverin, founder and current President of the Tahltan Business Council and owner of T'Senaglobe Media Inc., has agreed to assume the position of Co-Chair of the Northwest Powerline Coalition alongside Mayor Dave Pernarowski of Terrace.

"My desire to act as Co-Chair is to help build northern BC by encouraging new opportunities that may arise in extending the transmission grid into this resource rich region of the province", stated Mr. Loverin. "The northwest transmission line will also open up opportunities for Yukon and Alaska; I believe these partnerships will benefit northwestern BC, strengthening the region's economy as well as helping to boost the econominy of Yukon and Alaska. There is a desire to create cooperation among First Nations to the benefit all peoples of the north and I am excited to be a part of that discussion."

Gordon Loverin has been an active member of the Coalition and recently produced the video, Energizing Northern BC's Economy. This video highlights the northwest transmission line project and can be found on the Coalition website at www.highway37.com.

"I'm looking forward to working with Mr. Loverin in his new role as Co-Chair of our Coalition," said Dave Pernarowski. "The electrification of Highway 37 is a critical infrastructure development that will spur industry and green energy projects, allowing us to diversify and stabilize the regional economy and bring much needed employment to our communities and I know that Mr. Loverin has a passion to help make this happen."

- 30 -

About the Highway 37 Power Line Coalition
The coalition represents communities, the Northern Development Initiative Trust, non-profit organizations, mineral exploration and mining companies, independent power producers, joint venture First Nations companies and individuals committed to the construction of a high voltage transmission line from Terrace to Dease Lake, British Columbia, and perhaps beyond. The coalition is committed to sustainable economic development in Northwestern British Columbia and believes electrical infrastructure is the key to the future of British Columbia's Northwest.

Contact information:

Dave Pernarowski
Co-Chair
Northwest Powerline Coalition
Email: dr79@telus.net
Tel: 250 615-9576
Copyright © 2011 HIGHWAY 37 (HWY) All rights reserved. For more information visit our website at http://www.highway37.com/ or send email to cthomson@mining.bc.ca .
Message sent on Mon Feb 21, 2011 at 3:29:31 PM Pacific Time
----------------------------
Item #2

George Abbott has come out in the leadership debate in favour of higher BC Hydro rates to ensure there is the money to build the needed infrastructure, which includes the NTL.

Wednesday, February 2, 2011

Northwest Powerline

The Northwest Poweline project has now passed through the BC Environmental Assessment process and is awaiting approval from the Minister.   I would be very surprising to have it turned down.   The next step is to get Federal approval for the project, one would hope this would happen quickly.  Given that the feds have offered money for the project, one would expect them to approve, the problem is that nothing will happen if a federal election is under way.

How important is the powerline to BC?   The Northwest Transmission Line is the single most important piece of infrastructure in BC but it has taken years to get to where it is now.

The transmission line will make a number of advanced mineral projects economically viable. Among these are Cooper Fox's Schaft Creek. Imperial Metals' Red Chris, NovaGold's Galore Creek, Capstone's Kutcho Creek, and Hard Creek Nickel's Turnagain project. If only a couple of these projects come into production, BC's mineral exports will be significantly boosted. Within several years of completion of the line it is reasonable for BC to expect more than $1,000,000,000 in new mineral exports, this is worth more than the BC film industry. $3,000,000,000 in new exports in ten years is a very reasonable expectation. The total new tax revenues for the government are very significant and more than pay for the cost of the construction of the line.

There is also one coal mine under consideration in the area, Fortunes Minerals Mount Klappan Anthracite Coal project. Anthracite coal is the highest value coal available.   The mine would have annual revenues of around half a billion.

The Northwest Transmission Line also opens up a large area of BC for the production of green power. There are about 25 potential run-of-river projects that would be economically feasible if the NTL is built. These projects would provide about 1,200 GWh per year, a quarter of what Site C would provide. This new power would also provide another $100 million in new revenues in BC. It is not only run of the river that is possible, there is also some very significant potential for geothermal power and wind power as well in the region.

In Wrangell Alaska there is a strong interest in the NTL because it makes it possible for them to be connected to the Western Interconnection.  There is a local group there advocating for the line, the Alaska-Canada Energy Coalition.   They should be able to offer some power into the grid should there be a connection built to them.

The NTL will also make it possible for sawmills to be developed along Highway #37. There is an annual allowable cut in the Cassiar and Nass timber supply areas of more than 1.2 million cubic metres of timber but this timber can not be processed locally. In the Cassiar TSA, the lack of milling facilities dramatically reduces the area of forest that is economically harvestable. A single sawmill somewhere around Iskut would make it possible to have a higher annual allowable cut.

You would think that with all these strong economic, job and tax benefits to the province, this transmission line would have been the number one infrastructure project in BC years ago. Unfortunately the Northwest Transmission Line has long suffered from its location.

Governments in BC are driven by the voters and the majority of the voters are located in the Lower Mainland. Spending several billion dollars on infrastructure in the south west of BC is an easy political sell, convincing government to spend money on new infrastructure in the Northwest is just not very easy at all. Even though the NTL will clearly have a significant impact on the GDP of BC and provide the provincial government with significant tax revenues, there has never been a strong and vocal support of the project in Victoria.

As it stands, the scope and scale of the NTL is much smaller than is needed.  If half the mines open the line will be beyond capacity.  Realistically the government should be looking at a minimum 500kV line and should be looking at extending all the way to Yukon connecting with the grid in the territory at Watson Lake which then makes the case for a transmission line from there to Teslin, another 272 kilometers.  Connecting Yukon then makes connecting Alaska a reasonable expansion.

The government is willing to fund the Gateway project and transit expansion, but it seems unwilling to put much effort into infrastructure needed for the resource industries.   There is a fairly quick return on investment for government from infrastructure for the resource industries.  

Wednesday, January 26, 2011

Observations on the 2011 Exploration Roundup

I was over in Vancouver yesterday at the 2011 AME Exploration Roundup, I was asked to provide some postings for the Core Blog.  Here is what I offered them:

I attended Roundup each year from 2001 to 2007 and then I took a four year break before coming back this year. Normally from year to year there are only incremental changes. Having taken a break has allowed me to see there are some significant changes to the Roundup.
First Nations are much more in evidence now than even five years ago and much more than 10 years ago. For way too many years the mining industry viewed the First Nations as an opposition group and not as partners. Dan Jepsen, who was at AME BC from 2002 to 2008, spent a lot of time and energy building a new attitude towards First Nations and it is very much in evidence at Roundup this year.
It is crucial in BC that companies have a good social contract with the nearby First Nations. For far too long many mining juniors did not take this seriously which has lead to problems down the road for many a promising project. The fact we are seeing leaders from First Nation communities at the Roundup means the sort of two way positive relationship needed to allow projects to move forward here in BC are happening. I am also happy to see that more and more aboriginal people are seeing mining as an important future for their communities.
Another change I saw this year compared to the past is a shift among who the exhibitors are. There has been a shift away from mining juniors to many more companies supplying services to industry. The Cambridge House Investment Show down the way at the Trade and Convention Centre seems to be where a lot more of the mining junior promotion is going on than at the Roundup. I only had a day to be in Vancouver and heavy schedule of people to see, so I did not get a chance to check out the Cambridge show.
With the exhibitors being much more about the suppliers than the mining juniors, from what I could see there were a lot more company executives and geologists were talking with each other. It seemed to me in the past that often many of the mining juniors at the Roundup were doing a lot of investment relations and not spending the time informally talking as members of the industry.
I have to admit that this shift makes it harder for me to track down people from specific companies and talk with them about what I do and how I might help them but that is my problem. Next year I will have to spend several days there so that I can spend some time at the evening receptions.

The one final observation I have is about the ability of Roundup to cope with the size of the event. Has it become too big to continue at the Westin Bayshore or is it time to move to a larger venue?

Monday, January 24, 2011

2010 Mineral Exploration Numbers are Out

In 2010 companies spent $322,000,000 on exploration in BC, this is more than a doubling from 2009 when it was only $157,000,000.  This is still below the figures for 2008 ($367,000,000) and 2007 (abt $430,000,000).

What needs to kept in mind that that a lot of this exploration expenditure was at existing mine locations or advanced projects close to production.   As an example, Mount Milligan had $33 million spent on it in 2010.

In the last six years $1.8 billion dollars as been spent on exploration in BC.   What is important in this spending is that a lot of the money is going on the work needed to move mines into production or keep them in operation.  

In the last few years large scale mines have been bogging down in trying to get through all the regulatory hoops.  What has been working not badly has been the small mine program.   The Shasta gold mine in the Toodoggone by Sable Resources that pulled out 700 ounces gold equivalent - $960,000.  Eagle Plains Resources has done much the same with the Yellow Jacket Project in the Atlin area.

In general there are about six of seven major mines that could very well be operating within the next couple of years.   New Afton, Cooper Mountain, Mount Milligan, Kitsault, Dome Mountain, and Kemess North (now as an underground project) are all clearly moving towards production.   This represents the biggest expansion in new mines in ages in this province.

It will be interesting to see what the mood is like at the AME Exploration Roundup when I go there tomorrow.

Wednesday, July 7, 2010

Depressing News

The Black Press has purchased 11 papers from Glacier Media, in the Kootenies the Trail Daily Times, Grand Forks Gazette, Creston Valley Advance, Fernie Free Press,  and Nelson Daily News, in the Cariboo the Advisor group of  the Cariboo Advisor, Quesnel Advisor, and 100 Mile House Advisor and Prince Rupert Daily News and the Hagensborg Coast Mountain News

The Black Press already has papers in 100 Mile House, Williams Lake, Quesnel, Prince Rupert,  and Nelson.   In four of these towns the Black Press is closing the competing paper, only in Williams Lake are they keeping both papers open, though for how long anyone can guess.

They are closing four of the papers, two of which I can understand, the Quesnel Advisor and 100 Mile House Advisor, the Black Press already has papers in those towns.  The Black owned Nelson Star has only been around since 2008 and the Northern View in Prince Rupert since 2006.  It feels really odd that the Black Press would close the long established dailies in Prince Rupert and Nelson in favour of the recent start ups.   The only sense is that the existing dailies are union shops and this is a way to get rid of the CEP.

Not mentioned in much of the press about these purchases is that Glacier sold more papers, the Cranbrook Townsman and Kimberly Bulletin were purchased by Don Kendall who was a VP with Black Press

In the interior of BC there are very few small town papers not owned by David Black or his former VP.


No where west of Prince George can read a non Black Paper, between Prince George and Kamloops he owns then all.