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Chamber of Mines News Briefs – December 8 - 10, 2012 [Note: News headlines are hyperlinked to their stories in this document.] News ...... 1 Park one step closer to reality ...... 1 Environmental tech program at 25 ...... 2 NWT News...... 3 Some old costly mistakes ...... 3 Time for youth to take training is now...... 4 Resource Development and Energy News ...... 5 Uranium lobby group dumps on Nunavut board over spring meetings ...... 5 Western Keeping Close Eye on Diamond Valuation ...... 6 A Miner’s Best Friend ...... 7 Harry Winston swings to Q3 profit, cites growth in bridal jewelry sales ...... 7 Harry Winston to keep luxury business - for now ...... 9 We’re Number One! ...... 10 Ottawa approves ...... 11 Anticipation builds for Mary River project ...... 12 Navigable Waters Act changes could spark court battles ...... 14 Federal fisheries officials stalling on talks to protect water ...... 15

NUNAVUT NEWS

Park one step closer to reality Community consultations held in Resolute and Nunavut News/North – December 10, 2012 Jeanne Gagnon A national park proposed for Nunavut has reached another milestone as two community consultations were held last month. The proposed Qausuittuq National Park, located on Bathurst Island, would encompass a good portion of the northwestern area of the island as well as four neighbouring islands. The park, a former home of the North magnetic pole, would protect the endangered Peary caribou, according to Parks . It would be the territory's fifth national park. The proposed national park is also located north of the existing Polar Bear Pass National Wildlife Area, a protected area the Canadian Wildlife Service manages. The idea for the park was first proposed to the Resolute Hunters and Trappers Organization in 1994. The process then moved along with feasibility studies and other regulatory requirements. Parks Canada then held an information session on the proposed national park in Resolute two years ago, with some residents participating in a field trip to Bathurst Island. Parks Canada and the Qikiqtani Inuit Association are now finalizing the Inuit Impact and Benefit Agreement, a necessary document for such endeavours under the Nunavut Land Claim Agreement. As the proposed park enters the final approval process, Parks Canada held community consultations on Nov. 27 in Iqaluit and Nov. 29 in Resolute.

Chamber News Briefs 1 Resolute Mayor Tabitha Mullin attended the information session in the High Arctic community as well as about 15 other residents. The main points raised were the park's boundaries and how far along the project is, she said. "The community is in support of that park on Bathurst Island. I thought it went very well," said Mullin, adding the national park could bring employment to Resolute. Mullin had visited Bathurst Island many times and said it was very different from Resolute. "There is a lot more vegetation. It's also rolling hills but it's (a) very different landscape," she said. "We find it very beautiful, especially in the summer, when there is a lot more vegetation growth and animals to see." Parks Canada, in an e-mail, stated both public meetings "went well," but would not comment further.

Environmental tech program at 25 'We didn't just study the environment; We invented the environment.' Nunavut News/North – December 6, 2012 Peter Worden Students in Arctic College's Environmental Technology Program have had their share of amazing, harrowing and downright nasty learning experiences over the past quarter-century. From learning to change a spark plug with just a rock and Swiss Army knife to learning which caribou tracks to follow, and from taking soil samples in a sewage lagoon to weighing down the back of an aircraft to get its nose up on a short runway, the program has carved out a colourful history since its startup. The program marks 25 years this semester. At an open house and alumni dinner Nov. 30, students and instructors, past and present, rose to recall memories of the program. "Money, there was no money," said Bruce Rigby, one of the first program co-ordinators, recounting how students had no snowmobiles, so one of the ETP's first courses was 'small engines' and the first field-trip was to the local dump to salvage parts. "We had no equipment. The facility today, we would have just died for something like that." Today, the students who make their way through its doors are the Arctic's conservation officers, park wardens, fisheries and oceans personnel, consultants, scientists, RCMP and instructors of tomorrow. Joe Tigullaraq, a decades-long wildlife officer and hunter, was one of the first students in the ETP program back in 1987. Tigullaraq is now with Baffinland. Iron Mines Corp. and said one of the truest measures of competence is knowing how to improvise, like his first ETP assignment to scour the Iqaluit dump for snowmobile parts. "It's the same idea (on the land). A hunter who can improvise will always get home safely," he said. Yes, a lot has changed in the past 25 years: Nunavut wasn't yet a territory; Iqaluit was Frobisher Bay; houses were still on honey-bag service -- a term with which many students today aren't even familiar. Indeed, many of the students today weren't yet born when ETP first began. High school had only recently become available in the town of about 2,000 when Bruce Rigby, Wayne Merry and Mary Tapsell began the ETP. It was modified from similar programs in the Western Arctic -- albeit less relevant to Eastern Arctic -- which often focused on forestry and forest firefighting. The anniversary evening heard anecdotal stories from students and instructors. One alumnus whose graduand letterman jacket read: "Environmental Technology,' explained, "We were mental for the environment." One day, from the back of the class, a student called out a completely made-up flower during a lesson on Arctic flora and fauna.

Chamber News Briefs 2 "We didn't just study the environment. We invented it," the former student announced proudly. Pranks abounded in the program, from solid rock walls constructed quietly outside someone's tent door to guides taking students to their actual camp location after spending four hours building an igloo. Students joke now about moments that were no joke then. Stories about a mother polar bear and her cubs pawing around camp at 4 a.m. made former Arctic College dean Bert Rose, who oversaw the program when it began in 1987, wonder if the program was too risky to undertake. "They came very close to never doing another field camp again," he joked. For all the jokes, pranks and life-or-death instances over its first quarter-century, what made the most impact on students in ETP were the career opportunities. Students spoke emphatically about turning their lives around by enrolling in the program. One female alumnus said when she started the ETP, there were three career choices for women -- become teacher, nurse or housewife. This year, for the first time ever, ETP had more women than men enrolled. Current student Candice Sudlovenick, who grew up in Iqaluit, said she has seen ice going away earlier and earlier in the year. "You hear lots about global warming, and I feel like I can make a difference," said Sudlovenick. "I will probably get a degree in paleontology or archaeology -- something in the field. I had a desk job and I found it boring." Bruce Rigby said students are pretty much guaranteed a job after the two-year program. "So many things are tied to environmental stewardship -- virtually everything you hear about," he said. "You need good research and good analysis. As we get more technologically advanced in the next 25 years, good interpreters will be critical. Back in the '50s and '60s, we'd say, 'There's a good place for a road; build it.' Today, interpretation and decision-making is more important and it's just going to increase as development picks up."

NWT NEWS

Some old costly mistakes NWT News/North – December 10, 2012 Sometimes resistance really is futile. And harmful. That's the reality that should be starting to sink in for First Nations refusing to participate in a NWT devolution agreement in principle. Former premier Floyd Roland signed a framework deal in January 2011 to transfer federal powers over resources and land management from the federal government. He invited First Nations to be partners. The Inuvialuit and Northwest Territory Metis Nation signed on, but other First Nations opposed it. Then the Sahtu had a change of heart and became a partner. The Gwich'in were so offended that they filed a lawsuit. However, the Gwich'in people elected new leadership, Bob McLeod became territorial premier and the lawsuit was withdrawn. The group actually threw its support behind the devolution agreement, which would grant the territory $65 million annually to run transferred programs. The deal will also result in 50 per cent of resource revenue being turned over from the federal government to the territorial government. Half of that 50 per cent will go to aboriginal groups in the NWT, an estimated $2 million to $3 million per year each - for now. Further development projects could raise that figure dramatically

Chamber News Briefs 3 On the outside, by choice, are the Tlicho, Deh Cho and Akaitcho. The latter two groups do not have a settled land claim. Deh Cho Grand Chief Herb Norwegian, like his predecessor Samuel Gargan, has been vocal in his opposition to the devolution agreement in principle. Norwegian and Gargan view the deal as a means of empowering the GNWT. "If we're not careful and we're not moving in the same direction, the whole devolution thing could turn into the devil's solution and I think we need to be very careful about that," Norwegian told his fellow chiefs at a Dene Nations assembly in Dettah late last month. "The devil's in the details. And we have to be very careful and very clear on what it is that we're looking at." In January 2011, Gargan made a comparison between the devolution deal and the revolution that overthrew the government in Egypt. He said the situations were no different. Of course the difference was, and still is, the ability to participate in decision-making. Citizens of countries ruled by despotic regimes have no say in governance. The Dehcho First Nations, like all aboriginal groups, is welcome to help craft a final devolution deal. A better comparison for Norwegian to ponder is when Dehcho First Nations took a similar stance during negotiations on the proposed pipeline from Norman Wells to Zama. Alta. in the mid-1980s. The result of doing nothing then was the pipeline was built anyway, as we see it today. Where are the revenues or other benefits for the Deh Cho from the oil flowing over Deh Cho land? There are none, as former Liidlii Kue First Nation Chief Jim Antoine pointed out recently. Were any lessons learned from that failed leadership? Apparently not. Antoine is the only Deh Cho leader advising co-operation on the devolution deal. The same thing happened with the present Mackenzie Valley pipeline proposal. The Dehcho leadership refused to participate and instead filed lawsuits to stop it, frustrating aboriginal neighbours and potential partners with an eye to economic development for their people. The Dehcho, sensing they could not stop the project's momentum, wound up dropping the lawsuits and taking $31.5 million from the federal government in 2005 in return for a commitment not to launch any further court action. Norwegian is right, the devil is in the details with devolution. For that reason, Dehcho, Akaitcho and Tlicho leaders will be in a better position to understand those details and to modify them by being part of the devolution negotiations process. Refusing to participate again is futile and robs their people of a chance to become financially and politically self-sufficient.

Time for youth to take training is now NWT News/North – December 10, 2012 Cece Hodgson-McCauley It's busy around Norman Wells with preparations for the coming exploration season. I'll say one thing, I take my hat off to the oil companies who are bending backwards to accommodate the local population in trying to get them ready for the multiple jobs that will happen this winter. It isn't like the good old days! Every worker must be certified for this and that, so all you young people out there who may be looking for a job, get your resume up to date and take advantage of all the various training programs that the oil companies are offering. We just went through a training program at the Legion for a few days, we lined up our members, told them what it was all about, the days and the time.

Chamber News Briefs 4 Well, the training day came, no one showed up. We had to run around, pick them up, some you could not wake up. Very embarrassing. Not all were deadbeats in the end but the training happened without some of our members. You just wait, when the big companies must bring in most workers from the south, aboriginal leaders will scream. They must do something about their generation of young men. But on the other side of the coin, the young people can do their own thing. To young people out there, once you are 18 years old, you are an adult. So take the bull by the horns and form your own organization, plan your future, the resources and expertise are at your disposal. Your leaders have been sitting on their hands since the Berger days in the 1970s, when he postponed the pipeline for about 10 years to give us time to train. So don't depend on leaders, do your own thing for your future. Be inquisitive, research, ask questions, talk to industry. The world is a village today, it is changing. Spread your wings, be adventurous. You have your whole life ahead of you. In the Sahtu, we are like family and we all know families. So I am going to watch. Who are the smartest young group in the Sahtu? We've read so much about the regulatory system in the past. I'm looking through the new guidelines of the new draft that came out in February 2012, 25 pages of gobbledy gook created by bureaucrats sitting behind their desks in fancy offices in the capital city, Yellowknife. It sure makes you wonder. Do these supposedly learned, brainy servants ever go out on the land to mingle with industry of many kinds (oil companies, mining, business on the land), put on work clothes, boots, etc. in 40 below, in mud, snow and ice, eat in camps, to experience first hand what it is like? Sure, these companies make big money but their expenses are big, big. Aboriginal leaders and bureaucrats must realize and be as fair and reasonable when dealing with industry and business of all kinds. Our modern, comfortable and easy way of our life depend on big business. I don't want to go back to gas lamps or candles and cutting wood to cook and keep warm. There is a happy medium and fairness to everything we do in life. We need those multi-national companies. We must be fair and treat them with respect. We need change in the Northwest Territories. We are way behind the Yukon and Nunavut

RESOURCE DEVELOPMENT AND ENERGY NEWS

Uranium lobby group dumps on Nunavut board over spring meetings Nunavummiut Makitagunarningit says NIRB could “discredit” itself Nunatsiaq News - December 07, 2012 The Kiggavik uranium project, about 80 km from Baker Lake, would cost $2.1 billion to build and create hundreds of jobs over its 14-year lifespan. (FILE IMAGE) The Nunavummiut Makitagunarningit lobby group accused the Nunavut Impact Review Board Dec. 3 of preventing Baker Lake Inuit from participating in meetings on Areva Canada’s Kiggavik uranium project — because those meetings are scheduled for the spring. ”Doing so may discredit NIRB as an institution that really serves Nunavummiut,” the NM group said in a letter. That’s because the review board proposes holding a technical meeting from May 28 to May 31 next year, followed by a pre-hearing conference June 4 to June 6, each of which will look at Areva’s draft environmental impact statement for Kiggavik.

Chamber News Briefs 5 Between now and then, Areva will have responded — by Jan. 31, 2013 — to a long list of information requests submitted by a variety of government agencies and other organizations. After distributing Areva’s answers to those questions in early February, the review board will seek comments related to the upcoming technical review of the FEIS and received responses from Areva. Then they’ll move the process into the May 28-31 technical meeting. But those dates, NM said, will make it hard for many Baker Lake residents to attend those meetings and prepare for them. “As you are fully aware, during the spring many Inuit in Baker Lake and other communities spend a great deal of time on the land. The long daylight hours and mild weather is the time for family camping, hunting and fishing,” the group said. And this, NM said, prevents “their proper participation in an important political process.” Because of this, NM suggested NIRB may be in breach of its own guidelines, which state that the review board must “give due regard and weight to the tradition of Inuit oral communication and decision- making.” The group also said the spring meetings may be in breach of Article 12.2.27 of the Nunavut land claims agreement, which says all necessary steps must be taken to schedule meetings to maximize public participation. “Holding these meetings in the spring would serve to do the opposite,” NM said. Derek Ehaloak, the environmental administrator at the review board, said in an email that NIRB will respond to NM soon. Meanwhile, the North Slave Métis Alliance said Dec. 6 that they they support the NM request. “Spring and summer are always frantically busy for us, meaning both our staff and our members, who are involved in on-the-land activities,” the Métis letter said. The Métis group said they have an interest in “the historic transportation route between Hudson Bay and Great Slave Lake, as well as the Ahiak caribou herd, whose range does cover a portion of our traditional territory.” The environmental review process for the Kiggavik uranium project began in March 2010. Areva Canada submitted its first draft environmental impact statement in December 2011, but was required to submit a new one after NIRB found it didn’t conform to the review board’s guidelines. Areva resubmitted the document in April 2012. Under the NIRB’s proposed schedule, the project could move into final hearings by mid-fall of 2013. The Kiggavik uranium project, about 80 km from Baker Lake, would likely cost at least $2.1 billion to build and create hundreds of jobs over its 14-year lifespan.

Western Arctic Keeping Close Eye on Diamond Valuation CJCD Radio News – December7, 2012 Yellowknife, N.W.T. -The complex process of diamond valuation is on the table this week at hearings in Ottawa. Western Arctic M-P Dennis Bevington said the process is important to Northerners because putting a value on the diamonds and dictates how much the Federal government is going to collect in royalties. "They have a real interest in understanding how these diamonds are valued. What the total value of them is, what the company is putting forward, and the value of the diamonds, it’s to maintain a fair share for the government of Canada."

Chamber News Briefs 6 Bevington said diamond valuation is far from an exact science. "It's a very difficult business because of course diamonds don't have any intrinsic value. The only value is what people will pay for them." Bevington said he realizes the diamond valuation process is complicated and expensive, but adds he'll be watching closely how the federal government proceeds.

A Miner’s Best Friend Up Here Business – November 2012 Chris Windeyer The Northwest Territories Geoscience Office turned 10 years old recently, less than a year after getting another $5.2 million in government funding. We spoke with senior geologist John Ketchum about the office’s work and the importance of getting boots on the staking ground. What does the office do exactly? Our work is being targeted toward trying to make geoscience information both modern and more readily accessible. Within the NWT, there’s certain a lot to do. We’re basically still playing catch-up on our geological potential here, which of course is tied to our resource economy. We’re also involved in resource assessments that support initiatives where land may be going under future protection. The philosophy has always been that people would like to know what’s there before it’s protected. Some studies suggest that the availability and quality of geoscience information produced by government is an important predictor of investment by industry. What parts of the territory are you focusing on, in terms of baseline research? We’re continuing work in the Slave Province, where the Yellowknife gold deposits were found. There’s more gold out there and it’s being actively explored right now with current gold prices. Other areas that are expensive to operate in, but are also thought to have high potential, are different regions of the Mackenzie Mountains. With money from CanNor, we’ve been able to fund projects in these more remote regions that are simply harder places to work given the costs of working there. We’ve also been active in the Mackenzie Valley with regard to geoscience information behind the shale oil prospect there. What’s the value of having boots on the ground versus methods like serial surveying? The technology has been a wonderful addition to the tools that we have in our toolbox. But the boots on the ground are going to remain as an important, if not the most important, part of what we do. We’re in the process right now, with the Mackenzie Mountains, of upgrading maps that were initially drawn on the basis of helicopter flights where a lot of the geology was mapped by looking out of a helicopter window. So the next stage to improve on that situation is to put someone on the ground actually walking across the land and making the more critical observations. Are you finding lots of holes in the data? Yeah. There are areas not far away from Yellowknife that only saw very basic reconnaissance mapping in the 40s or 50s. The more detailed mapping in some of these areas is only happening now. I heard someone liken it once to finding a needle in a haystack, and your job is to find the haystack. We’re describing the types of hay in the haystack too. We’re providing information that points to what part of the haystack might be the most interesting to really look at in detail. And if we find the needle, that’s wonderful. But the needles tend to get found by prospectors.

Harry Winston swings to Q3 profit, cites growth in bridal jewelry sales Canadian Press – December 6, 2012

Chamber News Briefs 7 Canadian Press - Harry Winston Diamond Corporation (TSX:HW) says it swung to a third-quarter profit of US$3.4 million as its luxury brand business saw strong growth in bridal jewelry sales. The Toronto-based diamond miner and retailer, which reports in U.S. dollars, said that amounts to earnings of four cents per share, compared to a loss of $4.7 million or six cents per share in the same period last year. During the third-quarter last year, it booked an $8.4 million, or 10 cent per share, after-tax charge related to the derecognition of a paste plant. During the most recent quarter, consolidated sales increased 51 per cent to $180.4 million for the quarter compared to $119.7 million year over year. Robert Gannicott, chairman and chief executive officer said the company's luxury brand business experienced strong growth in bridal jewelry sales, and noted the Diavik Project has successfully switched fully to underground ore production. "This has been a quarter of solid progress on many fronts for us," said Gannicott. "Although the underground mine is still tuning its operating procedures, it has already reached and exceeded its planned underground production rate. "The rough diamond market has recovered its poise as optimism returns in America, still the world's largest consumer of diamond jewelry." The company also announced the appointment of former federal cabinet minister Chuck Strahl to its board of directors following his retirement from politics. "His experience and interest in northern development is a welcome addition to the board," Gannicott said. In its mining segment, rough diamond sales grew 134 per cent to $84.8 million, compared to $36.2 million in the comparable quarter a year earlier. The increase largely stemmed from a 286 per cent increase in volume of carats sold. However, the average price slipped to $96 from $159 in the prior year, largely due to a higher portion of smaller size diamonds due to an improved market for those goods. In its luxury brand segment, sales grew 14 per cent to $95.6 million, compared to $83.5 million in the quarter of 2011. The total number of units sold grew eight per cent. Operating profit for the luxury brand segment increased 265 per cent to $5.3 million in the third quarter compared to $1.5 million in the comparable quarter of the prior year. Earlier this month, the company said it is buying BHP Billiton's diamonds business, including its stake in the Ekati diamond mine in the Northwest Territories for US$500 million in cash. Under the deal, BHP Billiton's employees working at Ekati, in Yellowknife and in diamonds marketing in Antwerp, Belgium, will join Harry Winston. Harry Winston already owns a 40 per cent stake in the nearby Diavik mine, also in the Northwest Territories, in a joint venture with Rio Tinto. The Ekati mine — Canada's first diamond mine — is 310 kilometres northeast of Yellowknife and 200 kilometres south of the Arctic Circle. Harry Winston said the current Ekati mine plan calls for another seven years of production, but noted there are additional resources which could become economic with increased diamond prices. And in October, Harry Winston said it has received "various indications of interest'' regarding the possible purchase of its luxury retail business, but said it was not in active talks.

Chamber News Briefs 8 The company cut its 2012 production target for the Diavik mine to 7.4 million carats that month as operations shifted their efforts to concentrate on processing higher-valued diamonds. As recently as the company's second-quarter financial report issued in September, the 2012 production target for Diavik had been eight million carats.

Harry Winston to keep luxury business - for now Reuters – December 7, 2012 Julie Gordon Harry Winston Diamond Corp. has no plans to sell or spin off its watch and jewellery division from its mining division in the next year, though the retail arm will eventually stand on its own, the company’s chief executive said on Friday. “In the fullness of time, it will certainly either become separated or be sold to someone that can do better with it than we would be able to,” Robert Gannicott said in a conference call with investors. “But clearly that time is not now,” he said. “It still requires further investment and it still needs to get through at least another year.” Harry Winston’s shares fell more than 2 per cent on Friday, the day after the diamond miner and retailer revised down its full-year diamond production targets. A source close to the matter said in October that the company had looked to sell its watch and jewellery business to concentrate on mining and that it had approached potential buyers. The company later said it was not in active talks regarding any such transaction. Harry Winston then agreed in November to buy BHP Billiton Ltd.’s Ekati diamond mine in northern Canada for $500-million (U.S.). It said it would fund the cash deal with existing resources and debt, including a $400-million term loan and a $100-million revolving credit facility. “In order to purchase Ekati we have taken on a debt facility,” said Mr. Gannicott. “We don’t have any great pressure to dispose of the diamond luxury retail business.” The luxury business, which includes retail salons around the world, functions as an information base for Harry Winston by providing insight into consumer trends, allowing the miner to better anticipate rough diamond demand and pricing. There is also opportunity for more vertical integration between the mining and retail segment, especially after the Ekati deal closes in early 2013. The Ekati mine produces some 6 per cent of the world’s diamond supply by value. Founded by its namesake in 1932, Harry Winston was the first jeweller to lend million-dollar baubles to Hollywood stars to wear on the red carpet. The company owns a 40 per cent stake in the Diavik diamond mine in Canada’s Northwest Territories, a joint venture with Rio Tinto PLC. After a long slump in rough diamond prices, the company said that things are looking up in the United States, the world’s top diamond market. “We do not expect rapid near-term rises in rough diamond prices,” said Mr. Gannicott. “But we do believe the corner has been turned in an industry where demand is clearly poised to outstrip supply.” Rough diamond sales in the fiscal third quarter more than doubled to $84.8-million, up from $36.2- million in the year-earlier period, as an increase in the volume of carats sold outweighed a drop in the average price per carat. Luxury brand sales rose 14 per cent to $95.6-million, up from $83.5-million in the same quarter of 2011, and the company said that it expects to continue to increase its market share in the jewelry and watch sectors.

Chamber News Briefs 9 “We’ve seen strong sales in Japan and an improvement in America, the two most important diamond markets, while Chinese tourists are having a big impact on sales in other centers,” Mr. Gannicott said. The company has opened retail salons in China as it looks to tap into the fastest-growing luxury market in the world. It also opened a salon at Harrods department store in London in August and a salon in Geneva, Switzerland, is due to open early next year.

We’re Number One! Up Here Business – November 2012 Drew Hasselback A report by the mining group of global law firm Baker & McKenzie LLP speaks very highly of Canada as a destination for mining investment. The report is based on interviews the firm conducted with about 300 leading interviews the firm conducted with about 300 leading individuals in the mining industry, among them top company executives, lawyers, bankers and service providers. The Baker & McKenzie study is similar to the annual rankings of mining jurisdictions the Fraser Institute produces each year, but there are some key differences. The main one, I think, is that the Baker & McKenzie study doesn’t break down jurisdictions to the state or provincial level, but examines the investment climate in six important mining countries from a purely national perspective. Canada does very well when stacked up against Australia, Brazil, China, Indonesia, and South Africa. The law firm asked the miners to rank countries in 12 separate criteria. Canada placed first in eight of those, among them political stability, educated workforce, security of land tenure and ability to enforce contractual rights. Perhaps one of the biggest surprises is the broad industry support Canada receives for its resource taxation rules. Canada is the only country where a majority of respondents believe the taxation and royalty regime encourages investment. “We can conclude from responses relating to the countries analyzed as part of our research study that Canada leads the way in attracting investment into its mining industry,” the report states. “The Canadian government, it seems, has found the right balance between protecting the interests of the mining industry in addition to respecting and upholding the rights of wider stakeholders.” This is a valuable viewpoint, because investment funds are growing scarce. Canada might not be the cheapest place to build or operate a mine, but we retain a significant competitive edge thanks to our political stability. Foreign investors are willing to pay a premium to invest in our country because they’re confident their assets won’t be arbitrarily seized by a jealous government. Still, the survey reveals at least three concerns. First, Canada gets a knock for its regulatory hurdles. The report notes how the same project can face parallel reviews from both the federal and the provincial or territorial governments. That said, the report notes that Prime Minister Stephen Harper’s Conservative government has moved to address this by promising to replace the duplication with a system of “one project, one review.” The appropriate legislative changes are in place, but it will take time for the new rules to settle in. Aboriginal issues are a second concern. While it’s not a majority view, a substantial minority, some 38%, say that the legal issues surrounding aboriginal rights discourage investment. I can see where this might come from. Most of the industry is careful to make sure it properly consults and works with aboriginal communities. Yet it’s the high-profile failures, and not the lesser-known success stories, that make it into the media. While the survey clearly shows that the majority appreciates Canada’s balanced approach to development, the size of that minority view alarming.

Chamber News Briefs 10 Finally, the report notes that the European Union is the destination of nearly one quarter of Canada’s mineral exports. Europe’s serious economic troubles are therefore bad news for Canada. Most developers talk about a strategic focus on Asia. So anyone asking about a specific project planned for the North should take care to quiz company executives on their expectations from Europe.

Ottawa approves Mary River 'Nunavut open for business,' says Chamber of Mines Nunavut News/North – December 8, 2012 Lyndsay Herman A project with a price tag three times the size of Nunavut's GDP has passed an important step toward realization. On Dec. 3 the federal government gave its approval to Baffinland Iron Mine Corp.'s Mary River Project, located 160 km south of , based on a recommendation from the Nunavut Impact Review Board. "I think it's a really positive signal for investors," said Tom Hoeffer, executive director of the NWT and Nunavut Chamber of Mines. "Nunavut has got a tremendous mineral potential. One of the best in the world, same as the NWT. Every time we see a positive decision being made on proposed projects it helps send that signal. "Nunavut is open for business." From here, the project will work with the Nunavut Impact Review Board to acquire necessary permits and licences, as well as finalize an Inuit Impact Benefit Agreement with the Qikiqtani Inuit Association. "It's a very important step," said Gregory Missal, head of corporate affairs for Baffinland Iron Mines Corp. "It essentially represents the transition of the approvals ... from the environmental assessment phase to the permitting or regulatory phase. "The next milestone will be getting these permits and authorizations in place over the coming months. We're hopeful we'll be able to do that by early- to mid-2013." After that, Baffinland will embark on approximately four years and $4 billion in construction, requiring about 2,000 employees on the site at any given time, Missal said. Two major construction projects for the Mary River Project are a port at Steensby Inlet and a 149-km railway from Steensby Port to the mine site. Both are vital to Baffinland's plan to ship iron ore to predominately European markets year-round. The approved project will produce 18 million tonnes of iron ore annually from one of nine known deposits on Baffinland-owned titles. The deposit which will be in production, referred to as Deposit 1, has a mine life of approximately 21 years. Missal said the other deposits are not developed or understood enough to know if they will be brought to production in the future, and if they are, they would need to go through full environmental assessment and approval first. Regardless, the NIRB review application states "mine infrastructure will be at 30 million tonnes annually so production from Deposits No. 2 and 3 could be accommodated with only minor expansion to the existing mine infrastructure." Last week, the price for iron ore was at $120 US per tonne.

Chamber News Briefs 11 Anticipation builds for Mary River project Communities in work-preparation mode for massive Baffinland Iron Mines project Nunavut News/North – December 10, 2012 Thandiwe Vela Economic development officers in the six communities that will be most impacted by Baffinland Iron Mines Corp.'s Mary River Project are getting into work-preparation mode, as anticipation heats up for the multi-billion dollar project. The federal government recently approved Toronto-based Baffinland's proposal for the open pit iron ore mine operation, including construction of a road between and the site, and a 149-kilometre railway to a port at Steensby Inlet. The $4-billion to $6-billion project will require a workforce of up to 4,000 people during the construction phase and nearly 1,000 throughout the 21-year expected mine life of the first deposit. While still awaiting details of benefits to be included in the pending Inuit Impact and Benefits Agreement (IIBA), economic development officers (EDOs) in , Clyde River, Hall Beach, , Pond Inlet and Iqaluit are looking forward to the employment and business opportunities expected to come for their communities. Mittimatalik/Pond Inlet "This is an opportunity for some of the High Arctic communities to help develop their communities economically and it's an opportunity that I really don't think people should turn up," said Pond Inlet EDO Colin Saunders. Pond Inlet is the community nearest to the Mary River deposits. Despite previous mine operations in the region, including the former zinc-lead Mine, the , and various exploration projects, the community has never seen a project as large as Mary River. "It's not necessarily the first mining project that Pond Inlet has been involved in, but it is the first one that we're involved in at this scale with this being such a large project," Saunders said. "We're hoping to get a generous amount of local people working up there.As well, hopefully, we can entertain more businesses to try and set up shop here locally. "With more positive news from the regulators, etcetera, we're slowly taking steps to advance our initiatives as well." During Baffinland's 2008 bulk sample, 44 Pond Inlet residents were hired to work on rotational shifts including labourers and heavy equipment operators, Saunders recalled - hoping to see that number of Pond Inlet employees at least double with the steady, long-term jobs during Mary River's operations. /Clyde River In Clyde River, EDO Billy Palluq said at least 20 to 30 people in the community have received national Workplace Hazardous Materials Information System (WHMIS) certificates, preparing them to handle fuel, chemicals, and other potentially hazardous work site materials. "I think they're ready for employment now. I think the people of Clyde River are prepared for it," Palluq said, adding there is currently no employment in the community from Baffinland, but he anticipates the company will extend training and hiring for the project to the community next year. Work-ready training programs are currently in the works with partners including the Ilisaqsivik Society in Clyde River, the Hamlet of Pond Inlet, and Baffinland. /Hall Beach

Chamber News Briefs 12 The Mary River job opportunities will be especially welcome in Hall Beach where there is currently lack of privately-owned companies, a couple stores, and major unemployment for the community of 750, said EDO Shelly Brake. "There's not that many employment opportunities so the mining will be a good thing for us because it will provide a lot of jobs for a lot of people," she said, adding the more residents that are employed, the more the existing stores will benefit from spending. "There will be a lot more money coming in. It will help the stores, help the people, they'll be able to buy more things, have the Ski-Doos they want, be able to travel. Having the money will be beneficial to the people, the stores, the business," she said. "The people are in agreement with the Mary River project." Iglulik In Iglulik, there are mixed feelings about the project but for the most part feelings are positive due to the amount of training and employment opportunities that will come with the mine, said EDO Lucie Idlout. "I think there will be quite an opportunity for business on the local level in terms of how we might be able to service Baffinland directly or people coming through the community directly," Idlout said, adding nine residents recently returned from heavy equipment training in Morrisburg, Ont., making them "prime candidates" for work at the mine once it opens. Among the concerns are the impact of ship strikes on the marine mammals, Idlout said, and how the routing of massive ore carriers to Europe might affect the number of narwhal, beluga, and resident quotas on marine mammals. Imposing limits on the total number of ships travelling the shipping route during the open water season is one of the key recommendations in the Review Board's report. There are 184 recommendations attached to the board's approval. Iqaluit Concerns about the impact on wildlife and the environment have also been raised in Iqaluit, according to EDO Joamie Eegeesiak. "With all these new helicopters and airplanes that need to get to the mine and out, they make so much noise," Eegeesiak said. "I think we have to watch whether or not it's interrupting our hunting and trapping." The traffic in and out of the community will also have a "very good impact" on the capital's businesses, including the hotels, restaurants and suppliers, she added. As the project brings more jobs to the community, the hamlet and other businesses and organizations will likely lose employees to the higher-paying mine site positions, fears Eegeesiak, calling for more training initiatives for higher-level positions such as project officers and managers, to avoid a skilled labour shortage in the community. "You have people with these expertise that are already in the community that are working for, say, the hamlet as water truck drivers. The hamlet has to have the capacity not only to fill those jobs but also to make sure that their own jobs are filled in competing with the mine for skilled people," she said. Ikpiarjuk/Arctic Bay Arctic Bay EDO Clare Kines said the point of hire community is "certainly looking forward to the economic opportunities, the jobs, and the boost for business.

Chamber News Briefs 13 "We're also at the same time mindful of trying to minimize any negative impacts - increased social problems, policing problems, things along that line," Kines added. "We want the process to be, and it has been, thoughtful. "Just because of the size of it there's no way it cannot have an impact on the community, positive, and hopefully the negative impact will be minimal." Please see page 26 for more on the Baffinland project. Fact file Point-of-hire communities distance from mine site The proposed mine site would be: * 155 km from Iglulik * 160 km from Pond Inlet * 192 km from Hall Beach * 280 km from Arctic Bay * 415 km from Clyde River * 1,000 km from Iqaluit Source: NIRB Final Hearing Report

Navigable Waters Act changes could spark court battles Changes replace mandatory project reviews with optional federal assessments. Hill Times – December 10, 2012 Justin Ling It does not look like there will be any bridge over the troubled water of the House of Commons any time soon. Tempers flared across the aisle last week in House Chamber after a vote to remove federal oversight on bridges, dams, wharfs, and just about everything else that can built on or around Canada’s waterways. The majority-governing Conservatives passed their sprawling fall budget implementation act, Bill C-45, through third reading. The bill includes an overhaul of Canada’s 130-year-old Navigable Waters Protection Act (NWPA), a bill originally introduced by John A. Macdonald to ensure that no construction project would interfere with Canadians’ ability to freely pass through public waterways. The bill removes all but a few dozen of Canada’s thousands of lakes and rivers from that oversight, and changes the requirement to notify Industry Canada of the construction projects. While previously all projects in or around public water had to be vetted by Industry Canada, this bill makes such reviews optional. The changes to the NWPA have been decried by the opposition parties, who say that it’s the finishing touch on the government’s effort to dismantle Canada’s environmental regulation system. Industry Canada officials have said the changes are warranted because the NWPA’s scope has resulted in a massive backlog of project reviews. The governing Conservatives, for their part, say that the bill was never meant to be about environmental protection, and that their goal was to hack away at the onerous red tape that can hamper families from building wharfs at their cottages. NDP MP Megan Leslie (Halifax, N.S.), her party’s environment critic, disagreed. “This act has always been environmental legislation. It’s always been interpreted that way,” she said.

Chamber News Briefs 14 Industry Canada says that the changes will give the government freedom to focus resources where they’re needed while speeding up the “approval of major construction projects,” but leaving industry with the option to request a review of a project. Green Party leader Elizabeth May (Saanich-Gulf Islands, B.C) called that “laughable.” She said nobody, Ducks Unlimited aside, will opt-in to that review. Ms. May called the bill a “withdrawal” of the government’s constitutional responsibility to protect “the right of a Canadian to put a canoe in any body of water.” Assembly of First Nations National Chief Shawn Atleo, also criticized the bill on the grounds that the changes could “compromise key aspects of the Crown-First Nation relationship” and slammed the government for failing to consult First Nations groups about the changes. When asked if the government had met its duty to consult with First Nations, Industry Canada said simply that First Nations were “invited to participate in technical briefings to outline the steps taken to modernize the NWPA.” Unless the bill is amended, that could leave First Nations with the same recourse as anyone else opposing a project under the act—litigation. The bill allows for a review if someone can convince a federal judge that the project is an obstruction to navigation. Industry Canada insists that the common law route is sufficient to protect Canadians’ right to access the country’s thousands of waterways. Ms. May calls that route costly and time-consuming. Cases filed in the federal court under the existing legislation show that the common law remedy isn’t always fruitful. There are only a half dozen cases listed that directly involve the NWPA, and only two of the cases led to the court opening a review of the decision. One case echoes the Conservative talking points, where a group of landowners were forced into a time- consuming review process to repair their island’s aging bridge. Other cases involve First Nations and environmental groups using the legislation as a means to oppose mining, logging and damming projects. Federal judges dismissed all but one. In the end, the process of passing this legislation has left the opposition with a bad taste in its mouth. The opposition’s overtures—both in good faith, and partisan—were ignored. Ms. Leslie said that the NDP approached the government multiple times, through different channels, to hold negotiations on the legislation, while Ms. May introduced a spate of amendments that sought to keep the oversight of the bill—which she admits needed some reforms—while cutting down on unnecessary red tape. They were rebuked by House Leader Peter Van Loan (York-Simcoe, Ont.). “This is a form of parliamentary insanity; to treat every piece of legislation as though every amendment is some sort of political defeat,” Ms. May says. “This is not normal.” The back-and-forth on the budget bill got so heated that it nearly came to blows last week after a terse exchange between Mr. Van Loan and New Democrat House Leader Nathan Cullen (Skeena-Bulkley Valley, B.C.). Ms. May called the incident “unfortunate on all sides.” She says that the adversarial hollering, stomping and acrimony that was on display during last week’s votes “sets the tone in the House of constant warfare.”

Federal fisheries officials stalling on talks to protect water Postmedia – December 9, 2012 Mike De Souza

Chamber News Briefs 15 OTTAWA - The Department of Fisheries and Oceans has no formal plans to consult with stakeholders on new regulations or partnerships to prevent industrial pollution in the wake of a major changes to environmental protection laws adopted last summer, says newly-released internal correspondence obtained by Postmedia News. Despite pledging to develop new regulations and partnerships to protect Canadian waterways when it implemented the changes to Canada’s Fisheries Act and other legislation, the department is unable to provide any timelines or details of its progress, nearly six months later A department spokeswoman, Melanie Carkner, told Postmedia News it was continuing discussions with a “variety of stakeholders,” and that new regulations “should be published at the same time as the final amendments to the Fisheries Act come into effect.” The latest changes to the legislation are expected to be adopted by the Senate this month, following changes from July that removed federal protection of fish habitat, shifting the focus toward protecting commercial, recreational or aboriginal fisheries. Fisheries Minister Keith Ashfield, who is temporarily on medical leave, touted the new legislation last spring, noting that it gives the Harper government new tools to authorize industrial water pollution. The government also indicated that it could subsequently use standards developed by industry associations to guide its efforts, provided that they meet “strict requirements” for fisheries protection. But conservation groups are concerned about the environmental impacts of the legislation and budget cuts, noting that the government isn’t actively following through on its commitment to work with them on new partnerships. Craig Orr, an ecologist and executive director of Watershed Watch Salmon Society, said groups have “struggled” to get information on where the legislation is going. “The problem is they’re just putting it off and putting it off, and we just need to see something concrete for some kind of consultation on the details,” said Orr, who is also part of a Pacific region caucus consulted by the department. “The changes seem to be announced at a breakneck speed but the public is not being engaged… and they just don’t know when the engagement is going to happen and whether it’s going to be done in a meaningful way.” Orr said a senior official at the department – in charge of its “transformation” – told him it hasn’t confirmed any engagement plans and was not anticipating any major workshops or gatherings with stakeholders. “I do expect that we will engage folks in bilateral meetings and perhaps in the context of the regulatory process,” wrote Trevor Swerdfager, assistant deputy minister of transformation in a Nov. 21 email to Orr. “Other than that, we do not have a large formal process planned.” Other internal emails, obtained by Postmedia News through access to information legislation, reveal that department officials were uneasy about a reporter asking questions and “really latching on to this partnerships thing.” “Is there anything else we can say about it at this time, or can we simply tell him that the ‘how’ will be developed through policy and regulations over the coming months?” wrote Alain Belle-Isle, a manager of public affairs and strategic communications in a June 28 email to other department officials. “I think we need to be clear with him about what this means. He’ll keep coming until he gets an explicit answer.” Fisheries and Oceans Canada was unable to answer several follow-up questions from Postmedia News sent last Wednesday about the nature of Swerdfager’s role in “transforming” the department or about consultations and partnerships with conservation groups.

Chamber News Briefs 16 Carkner said there were delays in getting answers because of a high level of illnesses within the department last week. Orr said he has spoken to some Fisheries and Oceans employees who are troubled by recent cuts to resources and personnel responsible for habitat protection. “There’s a huge amount of angst and depression in the department over this whole issue of habitat protection,” Orr said. The changes also provoked confusion between Environment Canada and Fisheries and Oceans officials in the summer as each asked the other to explain Ashfield’s comments in a letter that touted the need for new tools to authorize water pollution. “We are not certain which ‘new tools’ are being referred to in the letter,” said Environment Canada spokesman Mark Johnson in an internal email sent to his counterpart, Carkner, at Fisheries and Oceans on June 28. Johnson had suggested one day earlier that the Fisheries Department should ask their minister, Ashfield, to explain his comments. “I’m sure you see how it would seem bizarre that EC should clarify a statement made by Minister Ashfield,” he wrote. “Please advise.”

Chamber News Briefs 17