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November 18, 2010 --- Vol. 04, No. 46November 2010

Northwest Territories

PERMITTING – The Federal Court has quashed a mining company's permit to explore on the traditional lands of two Northwest Territories First Nations because they had not been properly consulted, CBC News reported Nov. 16. In a decision dated Nov. 12, Federal Court Justice Michael L. Phelan cancelled North Arrow Minerals Inc.’s land-use permit because the company and the federal government failed to consult with the Lutselk’e Dene First Nation and the Yellowknives Dene First Nation about the proposed exploration work. The two Akaitcho First Nations have concerns about the Vancouver-based company’s bid to drill for lithium at its Phoenix site near Aylmer Lake, about 340 kilometers, or 211 miles, northeast of Yellowknife. Both First Nations have said the exploration work could disturb their ancestral burial grounds. The Mackenzie Valley Land and Water Board issued the land-use permit to North Arrow on July 16, 2009, but First Nation officials said they had not been consulted before the permit was awarded. ‘This decision sends a clear message to companies who want to operate in Akaitcho Dene territory,” Chief Edward Sangris of the Yellowknives Dene First Nation said in a statement Nov. 16. “This is our land,” Sangris added. “We are open to working with industry, but companies need to respect us, respect our rights, and respect what we have to say.” Phelan’s ruling noted the federal government’s duty to “meaningfully consult with and accommodate First Nations” before permits are issued on a development project. “In this case, no one took responsibility for ensuring meaningful consultation. The duty was not met,” Phelan wrote in his decision. He added that the two First Nations “were not necessarily entitled to all that they would like, but they were entitled to some substantial actual consultation.” Phelan agreed with the First Nations about North Arrow’s minimal efforts to consult with community officials about the exploration project. “There were no face-to-face meetings with chiefs on issues; no real meetings with the communities and no attempt to address any of the communities’ or leaders’ ideas into North Arrow’s proposal,” the judge said. “North Arrow simply refused to negotiate.” But the federal Indian and Northern Affairs Department simply accepted assurances from North Arrow that proper consultations took place, and the Mackenzie Valley Land and Water Board accepted the federal department’s assurances, Phelan’s decision stated. Federal lawyers had argued that the First Nations were not specific enough about their concerns, but Phelan said the concerns were “sufficient enough to engage the duty to consult. Had that duty been met, either the specifics would have been developed or their inadequacy exposed or any problems settled,” the ruling states. “Without real consultation, none of these results could be obtained.” Akaitcho Dene First Nations have developed their own exploration agreement procedure, in which mining companies that want to explore on their lands can work out formal arrangements with affected First Nations. The Yellowknives Dene and Lutselk’e Dene First Nations said North Arrow rejected exploration agreements that were proposed to the company.

REEs – For nearly a month, China has blocked the export to Japan of rare–earth metals, obscure minerals with names that sound like science–fiction fantasies but whose applications make them essential to modern life. Manufacturers employ the 17 rare earth elements in everything from smart bombs to windshields; the average car contains close to five kilograms of rare earths. Wind turbines use magnets made from neodymium, halogen lights need scandium and the battery packs in hybrid cars use at least 12 kilograms of lanthanum. While their uses are myriad, more than 95 percent of the world's rare–earth supply currently originates in China. Even before its trade dispute with Japan, China this summer announced a 40 percent reduction in export quota for 2010 compared with the previous year. As China hoards its precious minerals, manufacturers scramble for other suppliers. And Canadian companies will benefit from the rare earth rush. “End users want to see an alternative supply. So that’s the opportunity that’s presented itself,” said Don Bubar, president and CEO of Avalon Rare Metals, which is developing a C$899 million project in the Northwest Territories. Avalon is “five years down a 10–year timeline” to getting its rare earth deposit into production, Bubar said in a Nov. 18 report by PRLog. Other Canadian firms, such as Great Western Minerals Group and Quest Rare Minerals, have their own domestic projects in various stages of development. With roughly 70 rare–earth exploration companies listed on the Toronto Stock Exchange alone, there is now prospecting taking place from British Columbia to New Brunswick. Meanwhile, Great Western Minerals intends to start production using minerals from a South African mine within the next three years. With demand increasing by roughly 9 percent annually over the past few years, the market for rare earth metals will only increase as China constricts its exports. “Only recently have investors recognized the explosive growth in rare earth metals, caused by the demand for all these gadgets that people use,” says Scott Walters, managing partner with MaxCapital Markets, a Toronto investment firm. “You backstop that with China’s massive stockpile, and people want to hedge their exposure. And they’re looking to Canada.” Industry watchers say developments like Avalon’s Thor Lake project or Quest Rare Mineral’s Strange Lake project in northern Quebec have the potential to deliver both a large quantity and full spectrum of rare earth metals. But Canadian mining firms face competition beyond China. Mines in the United States and Australia will likely be operational within two years, potentially covering 30 percent of global demand. Concerns over China’s rare earth monopoly were only heightened by that country’s decision to halt exports to Japan following a collision between a Chinese fishing boat and Japanese patrol boats. Even if tensions ease, Chinese rare earth exports are still expected to dwindle, with some experts projecting they will cease entirely by 2015. A report released in August by China’s industry ministry calls for the country to dominate 70 percent of the worldwide market for computer components, fluorescent lights and other products containing rare earth elements. Combined with consumers love for iPods, hybrid cars and flat–screen televisions, China could be driving a revolution in Canadian mining. “Even without the supposed cold war of rare earths with China, you’d still have demand for it,” says Walters. “China is just the icing on the cake.”

TRAINING – A new training arrangement between the Mine Training Society, Aurora College and the Workers’ Safety and Compensation Commission in Northwest Territories is filling a need mines have for underground mine rescuers and giving students hands‐on instruction. Until recently, mine rescue or mine survival training was taught at the Giant Mine in Yellowknife. But thanks to a new collaboration between the WSCC, Aurora College and the Mine Training Society, students now get vital hands‐on experience with equipment and techniques they’ll use in mines when lives are on the line and seconds count. This new sharing arrangement lets students get their hands dirty on equipment they’d use in real life situations, according to program organizers. Pat Tymchatyn, the senior underground mine training Instructor at Aurora College, said the Underground Miner Program has really evolved since he came onboard three years ago. “Now they’re getting the practical hands‐on when before they could just do the theory for Mine Rescue. It’s something we weren’t set up to do before,” Tymchatyn said in a Nov. 12 statement. “Now that we have the WSCC on board, along with our longstanding partner, MTS, we have a lot more resources to draw from. Our combined organizations can offer much more in‐depth training than any of us could provide alone,” he said. WSCC Mine Rescue Coordinator and Inspector of Mines Dave Arthur said all workplaces benefit from safety education and training. “Delivering mine rescue training before the workers even start work at a mine site, allows them to hit the ground running when they eventually get there,” Arthur said. “Regardless of what job path they take at the mines, as trained Underground Mine Rescuers, if trouble strikes and the alarm sounds, they’ll be ready to save lives together.” Aside from the everyday underground mining techniques the students learn during the 12‐week course, they also learn first aid, mine rescue, fire suppression and other life-saving skills. Hilary Jones, the general manager of the Mine Training Society said the MTS and Aurora College partnership along with the WSCC’s assistance is filling a void in the local mining industry and employers are responding. “We’re keeping on top of developments in the mining industry,” Jones said. The effort to train these students as underground miners is paying off, she said. “By adding the mine rescue certification to their other skills they develop in the Aurora College Underground Miner Program, they become very desirable employees – the mines are even interviewing them before they graduate.” The Mine Training Society has the dual focus of training and placing northerners in mining jobs and building a legacy of education and awareness about the employee and skill needs of the mining industry in cooperation with the northern territory’s education system and communities.


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