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Mining industry needs better attention

Published on February 28, 2011
Published on February 28, 2011

Dear Editor, The Mary March debacle shows a clear picture of a failing system and lack of mining strategy in Newfoundland.

Topics :
Noranda , Canstar Resources , Anglo Newfoundland Development , Newfoundland , Vinland , Buchans

A recent article in the Telegram titled "Exploring the potential in central", seems to have overlooked the strategy of "protecting" Claim Holder's Rights in central Newfoundland. This article states that the province is looking for "public input" into this provincial mining strategy. I suggest seizing this invitation and opportunity.

Many people have become aware that the highly prospective Mary March property located in central Newfoundland-specifically the Buchans area has remained "dormant" for over a decade, held in limbo due to a property dispute between Vinland Resources versus the government, Noranda and Canstar Resources. Now in it's "eleventh" year, this dispute seems to go on and on and on. I might add such a dispute is unheard of in the entire span of Canadian mining history.

Vinland Resources alleged the Mary March property was not part of the Anglo Newfoundland Development (A.N.D.) Company's land package and therefore was open for staking. However this has been show to be false. In fact, in over 10 years Vinland has not put forward any conclusive evidence that this property was open for staking. This Mary March property was understood to be awarded to the A.N.D. Company since 1905. This property has been represented by the government as part of the A.N.D. Charter. It has always been identified as A.N.D. lands by the government.

Why hasn't the present government upheld these proclamations? When asked if the government would step into resolve the dispute, then Natural Resources Minister Kathy Dunderdale said there's not a resolution for that within the government. That's a legal issue, it's before the courts and that is were it's going to be resolved, she said.

However, this is contrary to what legal representatives for the case have stated. They say that a very simple legislative fix could resolve this dispute immediately. So who are we to believe? One would think that a legislative fix would be of utmost importance to "protect" Claim Holder's Rights and in the best interests of the province.

Yet after 10 years of court hearings and three decisions in Canstar's favour by the courts and appeal after appeal by Vinland, we are "still" awaiting a decision. All the while this frivilous dispute continues at the expense of tax payers dollars, tens of thousands of tax dollars.

Apparently the 2010 provincial budget includes $235,000 for the development of a provincial mining "strategy". Shawn Skinner (Minister of Natural Resources) says this strategy intends to ensure that mineral resources are developed in an environmentally responsible manner, while "supporting" exploration and development opportunities.

Gerry O'Connell (executive director of the Newfoundland and Labrador Chamber of Mineral Resources) says, mining in central Newfoundland could be as important, economically as offshore oil is to the Avalon Peninsula.

In order for these statements to resonate true, a mining strategy "must" create a system that "protects" Claim Holder's Rights and stops imminent claim jumping/overstaking in it's tracks. This strategy must also create a safe environment for future mining companies. Obviously new rules and regulations (legislation) must mandate this and be enforced to ensure this kind of situation never occurs in the future.

A 10-year "forced" hiatus in exploration on the Mary March property has severely crippled efforts to explore and hopefully develop a new mine at Mary March. Lost time, money in legal fees, etc.

How ridiculous is this from a government which "claims" to encourage and foster mineral exploration and development in the province.

Is the system "broken" or just inefficient and unprofessional? One thing for sure if this is not resolved soon Newfoundland will not be able to attract quality mineral exploration companies in the future. Funds will seek a safe haven elsewhere.

Don Clark

Canstar shareholder

Comments

  • Username
    Don
    - March 4, 2011 at 16:15:48

    The fact that right now the Ministry of Natural Resources people are travelling Newfoundland propounding the merits of exploring for minerals in NFLD and the "great" job the government is doing to foster this exploration. In the case of Buchans this is absolute, total BS! The government is not only "hindering" exploration but is actually "preventing" legitimate exploration by NOT protecting stakeholders rights. Stakeholders include; the people of Central Newfoundland, shareholders of public companies such as Canstar, XStrata, Phelps Dodge, mining contractors (drillers, assayers, etc.) mineral exploration "service" companies and especially the people of Buchans, Buchans Junction and Millertown. Frankly the entire province is affected by this lack of resolve and government refusal to end this redundant dispute. In order to attract investment and compete globally, the government must "uphold" property rights and do so in a "timely manner".

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  • Username
    frank d
    - March 4, 2011 at 01:45:24

    RE Canstar Resources et all.. Exerpt from Fraser Institute Report March 3, 2011.by Jean-Francois Minardi, "In order to attract investment and compete globally, governments must offer sensible, stable mining policies which, above all,uphold the rule of law and respect negotiated contracts and property rights," Minardi said. While he did not specifically name Newfoundland in his findings,I believe that the finger could be pointed directly at this province in its approach to settling the Canstar,/ Vinland dispute that is before the courts in the province of Newfoundland. thank you regards frank d.

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  • Username
    Minardi Speaks
    - March 3, 2011 at 12:23:32

    Link to Fraser Inst. release this AM. The second last paragraph should be mandatory reading in Nfld. http://www.marketwire.com/press-release/Fraser-Institute-Mining-Industry-Rebukes-Quebec-Preferring-Alberta-Saskatchewan-Investment-1405261.htm "In order to attract investment and compete globally, governments must offer sensible, stable mining policies which, above all, uphold the rule of law and respect negotiated contracts and property rights," Minardi said. Newfoundland and Labrador placing 13th with barely a mention, last report they placed in 8th position. Is it any wonder the rating is rapidly falling! In view of current regulatory policies they are down there with Zimbabwe and The Congo.

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    Karl-Heinz Broich
    - March 2, 2011 at 23:03:40

    This Mary March debacle , I just can't get my head around it anymore,is utterly disgusting. This abuse of the system one would expect elsewhere but not here, not in Newfoundland. It is very unfortunate that the politicians who have the means , havn't the gonads to stop this. So my question how much longer ???

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  • Username
    Gary
    - March 2, 2011 at 13:00:56

    When will this legislative circus end? It is nonsensical to think that the disputed pinprick of land would have been deliberately excluded from the 1,000 plus acres acquired over a hundred years ago. Where is our decision here? A month of deliberation over this case would have been three weeks too long. We are now into March. Time to get the drills in the ground and find out if this 11 year wait has been worth it.

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  • Username
    Doug P.
    - March 2, 2011 at 08:17:11

    The biggest issues for me are the apparent lack of urgency and also the refusal of the government to backstop and protect the legal owner of the property. Although I agree that a legislative fix should have happened long ago I could live with seeing the decision being produced through the courts if it happened in a timely manner. This HAS NOT happened. It's clear to me that Canstar Resources will ultimately develop the property but while we wait for the glacial progress of the NFLD courts to arrive at that decision jobs are lost, the tax base is smaller than it could be and, of course, the lawyers thrive. I would be, and am, very reluctant to invest in any NFLD venture that falls under the provincial government's purview until there is a clear demonstration that the government will protect the legal owners interests and do so in a timely manner.

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  • Username
    Ernst
    - March 1, 2011 at 23:38:42

    Regardless of the outcome of this latest adjudication, it is eminently clear that the Government, and yes, Premier Dunderdale, must pass legislation that will prevent such a dispute from ever taking place again.To fail to do so, will send a clear message that Newfoundland and Labrador is not investment friendly and cares little for the local population who would benefit from such investment.

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    TOM
    - March 1, 2011 at 23:10:11

    "Country Risk" is something mining companies and their investors experience in corrupt third world countries, not in Canada. I'm afraid this fiasco will tarnish the mining industry in NFLD for a long time to come. What a shame this was not settled years ago.

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  • Username
    frank d.
    - March 1, 2011 at 22:23:10

    First and formost I am a shareholder in Canstar and obviously my comments are self serving, however I have been reading the Bullboard on Stockhouse over a long period of time and I, like many other disgruntled shareholders cannot understand why this courts and appeals procedures have consumed so very much valuable time and obviously very much money without a binding ruling one way or another. Surely the beaurocrats involved in this long ongoing dispute. I would hope are very educated people, who, after the many years of dialogue presented in the numerous court and appeals would finally be able to render a swift and final non appealable decision on this very important issue in the very immediate near future. Remember this does not only impact the companies and individuals that are involved it > I would remind you it also impacts the credibility of the province of Newfoundland as a place to do business especially mining business along with the prosperity of its citizens.

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  • Username
    Roger D
    - March 1, 2011 at 19:26:07

    As a long time investor in the mining industry in Canada, and by extension, around the world, I am disappointed in Newfoundland's inability to deal with a simple problem in their own backyard. The 11 year process to decide on the mineral rights of the Mary March property ends up hurting the people of the province. The investment community is flush with money to invest in significant mining operations as this is purported to be. As with all good things, this too will come to an end and the losers will be the citizens of the province who have not been given the ability to take advantage of “cheap” equity for the development of their mining industry. The Government of Newfoundland must step up and look out for their citizens as well as those people who want to provide the capital to invest in the development of a mine. Issues like this should be dealt with fairly and expeditiously. These appeals are an abuse of the legal system and tax payer’s money. It appears that the legal system cannot resolve this endless loop, so it should be up to the Government to take action to resolve this once and for all.

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  • Username
    Roger D
    - March 1, 2011 at 19:24:49

    As a long time investor in the mining industry in Canada, and by extension, around the world, I am disappointed in Newfoundland's inability to deal with a simple problem in their own backyard. The 11 year process to decide on the mineral rights of the Mary March property ends up hurting the people of the province. The investment community is flush with money to invest in significant mining operations as this is purported to be. As with all good things, this too will come to an end and the losers will be the citizens of the province who have not been given the ability to take advantage of “cheap” equity for the development of their mining industry. The Government of Newfoundland must step up and look out for their citizens as well as those people who want to provide the capital to invest in the development of a mine. Issues like this should be dealt with fairly and expeditiously. These appeals are an abuse of the legal system and tax payer’s money. It appears that the legal system cannot resolve this endless loop, so it should be up to the Government to take action to resolve this once and for all.

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  • Username
    Don
    - March 1, 2011 at 18:52:43

    Mike, I am actually pleased that judge Faour hasn't rushed his decision. I am hopeful that he will finally lay this redundant dispute to rest. The residents of central Newfoundland deserve better--- specifically Buchans, Buchans Junction and Millertown. Besides a resolution will benefit the entire province in many ways. It looks very unprofessional to have a property dispute continue for over a decade in the absence of any conclusive evidence.

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  • Username
    Roy
    - March 1, 2011 at 17:21:51

    Phelps Dodge-Noranda-Canstar is the registered owner, had already explored said lands and had already drilled several holes, pulled some spectacular results, then guess what, a claim jumper appears and attempts to take the property away. Is this how the Department of Natural Resources runs the mining industry here?

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  • Username
    Mike
    - March 1, 2011 at 16:17:22

    This has gone on far to long. We are now into March 2011 and even the judge who should have made a decision by the end of 2010 has been dragging his feet on a decision. Justice Alphonsus Faouris is now proving that the justice system in NFL is broken. I now understand why Newfoundland & Labrador slipped 3 positions to 8th place in the Fraser Institute best places in the world for mining survey. The Newfoundland & Labrador government need to wake up and think about how many jobs they are losing because of these kinds of mining misjudgments going on in their province.

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  • Username
    James
    - March 1, 2011 at 15:18:38

    Personally I await the judgement of the court and if clear title is not settled this time around I will sell my position in Canstar never to return. It will also end any future investment in Newfoundland for obvious reasons. It was and is the lack of urgency to settle this in a timely manner that is most frustrating. ie period of time between hearings and court dates, decisions, factums etc. This is a result of having to deal with governments and their branches and tribunals which very quickly turns into a long feeding frenzy. The taxpayers can continue to foot the bill for a lot of this but I will no longer have dead money tied up in it.

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  • Username
    Legislative Fix
    - February 28, 2011 at 21:56:54

    This is largely a matter of dispute between the Department of Natural Resources, as represented by the Claims Recorders Office and Vinland Resources. I believe that everyone hoped that the Mineral Rights Adjudication Board's unanimous decision on October 23/09 would finally resolve this matter. However, existing legislation could not prevent Vinland from exercising it's statutory right to appeal. In every single other province in Canada this can't come up, because legislation has passed a law that in effect says, whoever is the registered owner in the Mineral lands registry is the absolute owner. Period. A simple legislative fix would stop this dispute in it's tracks and put Newfoundland on the same playing field as the rest of Canada.

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  • Username
    Dave
    - February 28, 2011 at 18:41:17

    This dispute has definitely given a whole new meaning to lip service in my opinion. When will the Province put a final decision on the table and get people working -------the ultimate question.

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  • Username
    Priority
    - February 28, 2011 at 16:54:58

    The province must take into consideration the potential economic and social benefits the Mary March property can provide. In the big picture employment opportunities are very significant. As former Minister of Natural Resources, Premier Dunderdale knows first hand how detrimental this has been for central Newfoundland. Why hasn't the Premier made this a priority? According to the lawyers involved in this case, it is absolutely clear and unambiguous that government has the power to end this frivilous dispute, whether it is before the courts or not.

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