Circumpolar Musings: Resource Issues

Proposed dam presents economic and environmental challenges in Alaska

Amanda Graham — Mon, 11 Mar 2013 03:56:17 GMT

(Felicity Barringer/New York Times, 6 March 2013) -- At a time when large dams are being taken down, not put up, the state of Alaska is proposing to construct one of the tallest and most expensive hydroelectric dams ever built in North America. The Alaska Energy Authority is planning to build a 735-foot, $5.2 billion structure on the Susitna River in a largely empty south-central part of the state, which is watered by runoff from the arc of the Alaska Range. The dam, designed to generate up to 600 megawatts of electricity, would create a new power supply for more than two-thirds of the state’s population. But in Alaska, where natural energy resources and wildlife are both foundations of the economy, the proposed dam presents twin conundrums. One is economic: which is better, creating a reliable source of hydroelectricity and weaning some of the state off natural gas, or building a spur off a proposed pipeline to bring gas from the North Slope to the populated region from Fairbanks to the Kenai Peninsula? Or both? The other is environmental: what serves the environment best, replacing natural gas-fired electricity with hydroelectricity, which is free of greenhouse gas emissions, or keeping the Susitna watershed untrammeled and avoiding the risks involved in changing the dynamics of a major salmon stream? ...

New gold deposit discovered in Yakutia

Amanda Graham — Thu, 21 Feb 2013 07:37:38 GMT

(RIA Novosti, 21 February 2013) -- YAKUTSK, February 21 (RIA Novosti) - A new gold deposit has been discovered Russia’s Siberian republic of Yakutia, the region’s economics ministry said on Thursday. The Gora Rudnaya in the republic's Aldan District deposit may hold about 200 metric tons of gold, according to the statement. The deposit has already been registered with the Federal Agency for Subsoil Usage. It will be auctioned shortly after its value is determined. The Republic of Sakha (Yakutia), a vast Siberian land of taiga and permafrost, is known for its vast gold and diamond reserves. From Voice of Russia: "Experts knew that it was worth looking at after they assessed the content of gold and ore parameters. The deposit will be put up for auction in three years. Yakutia’s gold output amounted to 21.2 tons last year. "

U.N. worried by arctic resource drive

Amanda Graham — Thu, 21 Feb 2013 07:11:45 GMT

(UPI, 20 February 2013) -- NAIROBI, Kenya - Awareness of the issue of melting arctic sea ice is much higher than the international community's attention to the matter, a U.N. official said from Nairobi. Changing climate patterns means international oil and gas companies are looking to exploit the estimated 30 percent of the world's unrecovered natural gas and 70 percent of the world's undiscovered oil under in arctic waters. The U.N. Environment Program, in its annual report, said summer ice sheet in 2012 was 18 percent smaller than the previous low record set in 2007. "Changing environmental conditions in the arctic -- often considered a bellwether for global climate change -- have been an issue of concern for some time, but as of yet this awareness has not translated into urgent action," UNEP Executive Director Achim Steiner said in a statement. Problems with Shell's exploration campaign in northern Alaskan waters last year raised concerns about the potential risk of operating in extreme environments. UNEP said no plans for arctic exploration should move ahead without taking steps to ensure the pristine environment, and those who rely on it, is protected.

Canadian Arctic, Australia share surprising similarities

Amanda Graham — Thu, 21 Feb 2013 06:20:25 GMT

(Mia Bennett/Foreign Policy Blogs via Eye on the Arctic via Alaska Dispatch, 12 February 2013) -- Australia and the Arctic aren't often mentioned in the same sentence. One tends to hear more about Australia and Antarctica, since the country has an Antarctic Division and carries out scientific research at the icy continent not so far away from Tasmania. But I think that a comparison of Australia and the Arctic, particularly the Northern Territory (NT) and the Canadian Arctic, is a fruitful one. When I came across an Economist article on the NT from last September entitled "Northern lights," I began thinking about the lands under the Aurora Borealis and Australis. Both Australia and the Arctic seen as exotic and remote, albeit at opposite ends of the earth. The NT constitutes Australia's landmass but contains only one percent of the population. Canadian territories, which make up 39.5 percent of the country's land, are similarly sparsely populated, with only 100,000 people (0.3 percent of the population). Both the NT and Canada's territories are resource-rich frontiers with large indigenous populations. The indigenous populations in the NT and in northern Canada, particularly Nunavut, are a higher percentage of the overall population than in the rest of Australia and Canada, respectively. Yet although both regions are in countries that enjoy some of the world's highest living standards, they are relatively underdeveloped hinterlands.

Arctic: competition for resources on the horizon

Amanda Graham — Mon, 11 Feb 2013 20:55:47 GMT

(Nikita Sorokin/Voice of Russia, 1 February 2013) -- Russia’s Regional Development Ministry continues consultations with experts on a proposed ‘Law on the Russian Arctic’. According to the United States Geological Survey, the bed of the Arctic Ocean contains one fourth of the world’s reserves of oil and natural gas. This treasure trove is quickly opening as climate change melts the Arctic Ice Cap. Dr Mikhail Babenko is an oil and gas expert of the Worldwide Fund for Nature: "Seabed minerals, fish and promising transport routes are also becoming available. In 2012, traffic along the Northeast Passage from Europe to Asia posted a sharp rise. Many governments are now after tapping these resources for the sake of speeding up economic growth." Dr Sergei Pryamikov is in charge of international cooperation programmes at Russia’s Arctic and Antarctic Research Institute in St Petersburg: "Active Arctic exploration brings together some 15 nations. The treaty on the Svalbard Archipelago now brings together as many as 40. Importantly, China, Japan, South Korea and India are also showing great interest in Arctic resources. Several countries advocate a borderless international zone in the Arctic Ocean. Russia, however, continues to insist that Arctic borders do exist, and drawing them must comply with the United Nations Convention on the Law of the Sea."

Dimensions of oil and gas development in Greenland

Amanda Graham — Sat, 05 Jan 2013 00:24:21 GMT

(Andreas Østhagen/The Arctic Institute, 19 December 2012) -- The prospect of offshore oil and gas activity in the waters around Greenland constitutes a highly contentious issue in the larger debate on Arctic petroleum development. Given Greenland’s special status as a part of the Danish Realm, with a high degree of self-governance and a majority Inuit population, oil and gas drilling there has engaged actors with a wide range of interests. Arctic oil and gas development is often generalised into a two-sided conflict between those who emphasise the protection of the environment and those who seek potential profits, with the interests of local communities variably used in favour of one or the other depending on the area of the region under question. Some of the dimensions that seem to determine much of the actual development are often lost in this dichotomy, to the dismay of those in favour of an informed debate. Taking into account that Greenland is just one of the many parts of the Arctic that is experiencing this development, with its own unique characteristics, this article sets out to shed light on the importance of internal political and commercial factors when discussing petroleum development around the island.

Challenging coexistence in the north

Amanda Graham — Fri, 12 Oct 2012 23:38:30 GMT

(Anja Kristine Salo/Indigenous Peoples in the Barents Euro-Arctic Region, 09 October 2012) -- 130 representatives from the government, indigenous peoples and business met in Tromsø on September 10 to discuss extractive industries in the Barents Region, an area where indigenous peoples have lived their traditional life for centuries. "It is huge uncertainty connected to what's happening up north. The indigenous peoples' opinions are not taken into account as often as we would have wanted. This is a great problem," says the President of the Norwegian Sami Parliament, Mr. Egil Olli. He is one of the participants at the seminar arranged by the Norwegian Foreign Ministry and the Working group of Indigenous Peoples in the Barents Region. Scientists, representatives from the mining industry, local, regional and national government officials were also present at the seminar. Many sensitive, difficult and important question and challenges facing member states, indigenous peoples and business entities in the Barents region were addressed at the seminar. "We face a great risk of evolving conflicts between states, indigenous peoples and other stakeholders in this bonanza of oil, natural gas, minerals and plentiful waters in the Arctic. The indigenous peoples in the Arctic have to find the equilibrium in this boom and tackle these challenges, hopefully in co-operation with the national states, business entities, UN and other, regional and international bodies," says Lars Anders Baer, Chairman of the Working group of Indigenous peoples in the Barents Region. The State Secretary at the Norwegian Ministry of Foreign Affairs stressed that the indigenous peoples must be consulted.

Village in Arctic Alaska faces water shortage

Amanda Graham — Fri, 12 Oct 2012 22:19:17 GMT

(Emily Schwing/KUAC - Fairbanks via Eye on the Arctic, 11 October 2012) -- The Arctic Village of Kivalina may run out of fresh water this winter. Governor Sean Parnell declared a disaster in the village last month after heavy rainfall flooded the Wulik River and washed away some of the city's surface water piping. By the time the state Office of Homeland Security and Emergency Management had shipped a new high speed pump and pipe to the community, it was too late according to City Administrator, Janet Mitchell. Slush clogged the pipes and the crew gave up. It's not clear how much water made it into the tanks. Mitchell, who grew up in Kivalina, says residents have always tried to conserve water. But the majority of Kivalina's 436 residents don't have boats or snowmachines to access large quantities of fresh drinking water. So they use the local washeteria. It's unlikely to remain open through the winter.

Committee in UK says Arctic drilling should stop

Amanda Graham — Sat, 22 Sep 2012 17:42:47 GMT

(Marine Science Today, 22 September 2012) -- A committee of Members of Parliament (MPs) in the UK is calling for a complete stop of drilling for oil and gas in the Arctic until certain safety issues have been taken care of. The Environmental Audit Committee has previously voiced their concerns that a spill could cause catastrophic environmental damage. The MPs say that current oil spill cleanup methods are not adequate. They are calling for a pan-Arctic spill response standard, full liability for firms and an environmental sanctuary in the Arctic. Both BP and Shell are involved in Arctic drilling projects. BP’s plans are temporarily on hold and they wouldn’t provide the MPs with evidence that they have an adequate plan for spill response. Shell has stopped drilling for the winter, but they claim that their spill response is adequate. “There appears to be a lack of strategic thinking and policy coherence within Government on this issue, illustrated by its failure to demonstrate how future oil and gas extraction from the Arctic can be reconciled to commitments to limit temperature rises to 2°C,” the MPs said. ”The Government should seek to resolve this matter.” You can read more from the BBC here: MPs call to halt Arctic drilling amid safety concerns.

The Arctic likely to attract $100 billion investments in coming decade-report

Amanda Graham — Fri, 13 Apr 2012 06:22:41 GMT

(Christina Zander and Alexis Flynn/Dow Jones Newswires via NASDAQ, 12 April 2012) -- STOCKHOLM - The Arctic region is likely to attract investment of $100 billion or more over the coming decade, according to a report by independent policy institute Chatham House and the Lloyd's of London insurance market. Interest in the Arctic region has intensified in recent years as a boom in commodities has seen companies scramble for precious resources to satisfy growing demand from China, among others. A melting ice cap hasn't only opened up new shipping routes that significantly cut transport times and distances between Europe and Asia, it has also made the region's estimated rich deposits of oil, gas and minerals more accessible. The report, published Thursday, notes that oil and gas, mining and the shipping industries will be the biggest drivers and beneficiaries of Arctic economic development in the coming years, but it says the Arctic's economic future depends principally on local investment conditions and global commodity prices. "One thing that stands out most clearly from this report is the significant level of uncertainty about the Arctic's future, both environmentally and economically," said Richard Ward, chief executive of Lloyd's. "Some of the technologies that will help to shape that future, such as those involved in deepwater drilling and ice management are already tried, while others are still in their infancy or yet to be developed." Growing interest in four key sectors--mineral resources, fisheries, logistics and Arctic tourism--could, according to the report, generate substantial investment in the region over the next decade, especially in the minerals sector.

Obama Administration announces major steps toward science-based Arctic energy exploration

Amanda Graham — Mon, 20 Feb 2012 23:23:01 GMT

(U.S. Department of the Interior press release via PennEnergy, 17 February 2012) -- Building on the Obama Administration’s record of taking steps to expand safe and responsible development of our nation’s oil and gas resources, Secretary of the Interior Ken Salazar today announced the next steps toward energy exploration activities in shallow waters in the Arctic during a limited period this summer. Today’s announcement is informed by the latest science, and continues to be guided by important new safety standards as well as lessons learned from the Deepwater Horizon oil spill. Those steps include: today’s approval by DOI’s Bureau of Safety and Environmental Enforcement (BSEE) of Shell Gulf of Mexico, Inc.’s (Shell) Oil Spill Response Plan (OSRP) for the Chukchi Sea; coordinated exercises and emergency response planning by U.S. agencies in the Arctic; expanded scientific work, information collection and data sharing among agencies, industry, and research institutions to inform Arctic planning; and undertaking long-term, landscape-scale planning for the Arctic. These steps are the latest in a series of initiatives in line with President Obama’s commitment to an all-of-the-above energy approach, which includes a focus on the safe and responsible production of homegrown oil and natural gas resources by American workers.

Sami mining protest in Arctic Sweden

Amanda Graham — Thu, 02 Feb 2012 06:57:23 GMT

(Radio Sweden via Eye on the Arctic, 1 February 2012) -- This week is festival time in the Arctic Circle town of Jokkmokk in Sweden's Far North. But not all the Sami, the indigenous people of Sweden's Arctic, will be celebrating. Mining, forestry and hydroelectricity provide lucrative business opportunities across northern Sweden. But exploiting natural resources often leads to conflict with Sami herders when reindeer grazing areas are blocked or damaged. High mineral and iron ore prices have led to an explosion in prospecting in recent years and increased the number of conflicts, with a regular stream of objections being brought to court. One of them centres on a mine planned just 40 kilometres west of Jokkmokk. The mining company Beowulf has been accused of illegal test drills that damage Sami grazing lands. Mattias Pirak from the Jåhkågaska Sami reindeer herding community told Sami Radio that opportunities to make big profits from iron ore should not be an excuse to destroy the environment. ... Pirak and other Sami herders are organising a demonstration to coincide with one the most visible demonstrations of Sami culture. Every year the Jokkmokk parade provides a blaze of colour in the dark of winter as herders lead their reindeer through the snow in traditional dress. The market is expecting about 40,000 visitors many of them foreign tourists, and the Sami protestors will also target them with flyers printed in English. However Mattias Pirak says that after the market protest his community will continue with their campaign — and that they will never give up.

Minerals bring economic boom to the north of Sweden

Amanda Graham — Sat, 31 Dec 2011 01:14:45 GMT

(Radio Sweden/Eye on the Arctic, 30 December 2011) -- The job market is bright in Norrbotten County, fuelled by growing global demand for iron-ore and other industrial and precious metals. And while the ground under the city of Kiruna is sinking because of the iron ore mine, it is precisely because of that iron ore, that the job market is soaring. “In Kiruna we have 2.8 percent unemployment,” says Terje Raattamaa, the head of the Employment Office in Kiruna. “That is one of the lowest unemployment rates in Sweden.” Just outside the small mining town of Pajala, Northland Resources, an international mining company, is currently building two new iron ore mines. “We’ve done exploration during the past seven years, but before we started the construction last year, there was just a swamp area and trees here,” says Niclas Dahlström from Northland Resources. “Now we’re investing over US $720 million in the site.” Northland Resources already has three large customers that will buy every single ounce of iron ore the company produces during its first decade. Two traders, Standard Bank and Stemcor, will buy the product and sell it. The third customer, the large steel conglomerate Tata Steel, will use the raw material itself. Northland Resources says it will employ hundreds of people. “During the next two years we’ll employ 400 new people and about 200 people working with logistics, driving large trucks to put the product on rail,” says Dahlström.

Whaling season off to strong start [mp3]

Amanda Graham — Thu, 05 May 2011 21:25:17 GMT

(Jake Neher/KBRW – Barrow via APRN, 4 May 2011) -- Whalers in Northern Alaska are off to a strong start for the 2011 spring season. Crews have been in full gear since the first leads opened up in the Arctic Sea ice. [mp3]

Demand for polar bear hides soars: auction house

Amanda Graham — Tue, 12 Apr 2011 00:27:44 GMT

(CBC News, 11 April 2011) -- One of Canada's largest fur auction houses says it cannot meet the soaring demand for polar bear hides, provoking concerns about overhunting in southern Hudson Bay and other areas. Demand and prices for polar bear hides have been escalating over the past five seasons, says an official with Fur Harvesters Auction Inc. in North Bay, Ont. Russians are particularly interested in the hides, he said. "The supply does not even come close to meeting the demand," Mark Downey, the auction house's chief executive officer, told CBC News. At the company's most recent sale in January, polar bear hides sold for an average of $5,000, Downey said. One sold for a record high of $11,000. Each buyer at the sale wanted all 80 of the polar bear hides on offer but had to settle for two or three hides each, he said. "There's a lot of interest for really top-quality specimens, 10-footers-plus, well-handled bears for the Russian market," he said. "There's a lot of Russian businessmen or what have you that would like to have a polar bear rug."

Iceland protests EU import ban of seal products

Amanda Graham — Thu, 31 Mar 2011 17:26:49 GMT

(Iceland Review, 20 March 2011) -- Minister of Fisheries and Agriculture Jón Bjarnason has declared his support for Norway’s and Canada’s case against the European Union at the World Trade Organization regarding the ban on the import of seal products. In a meeting with the WTO’s Dispute Settlement Board on Friday, Iceland requested to participate in the complaints committee’s case as a third party, Fréttabladid reports. The dispute concerns an EU regulation barring that the import of seal products to EU market territories. An announcement from the Ministry of Fisheries and Agriculture issued yesterday stated that Iceland’s support for Norway’s and Canada’s cause is consistent with Iceland’s earlier declarations to the international arena. For example, statements made by Minister of Finance Steingrímur J. Sigfússon, who used to chair the Ministry of Fisheries and Agriculture, to that regard to Joe Borg, the EU Commissioner for Fisheries and Maritime Affairs, in 2009 were referenced. The Norwegian news website ABC Nyheter claimed that the issue had caused an internal dispute within the Icelandic government. Foreign Minister Össur Skarphédinsson is said to be against Iceland declaring support for Norway and Canada in their case against the EU. Click here to read about seal hunting in Iceland and the EU ban.

Eskimo whalers call for subsistence whaling law before 2012

Amanda Graham — Tue, 22 Feb 2011 06:19:53 GMT

(Jake Neher/The Arctic Sounder, 21 February 2011) -- The Alaska Eskimo Whaling Commission (AEWC) is calling on Alaska's Congressional delegation to introduce subsistence whaling legislation before 2012. Officials say legislation is needed in case an international regulatory body fails to pass a harvest quota renewal for subsistence hunters. AEWC members and officials passed this and four other resolutions last week during the commission's two-day Mini-Convention in Barrow. The current five year block quota for native subsistence whaling is ending in 2012. At that time, the International Whaling Commission (IWC) will decide whether or not to renew or adjust the quota for another five years. But AEWC officials say the international body is dysfunctional, and has used the quota as a bargaining chip in negotiations on other issues unrelated to Native subsistence whaling. They fear political gridlock in 2012, which could leave the 11 communities in the AEWC without a set quota. A subsistence quota renewal needs the approval three-quarters of IWC member nations to pass. Alaska Eskimo Whaling Commission Vice President George Ahmaogak says it's time to start considering all options to protect against a quota denial from IWC. "It's getting harder and harder to work with the International Whaling Commission," Ahmaogak says, "even though we abide by all their rules, do the census work, a lot of the requirements and mandates by the IWC. Unfunded mandates, if you will. It's getting harder and harder. In 2012, it's going to be a challenge. So, I think we're better off going for domestic legislation. That's why we pushed this resolution on the floor." According to the AEWC resolution, the International Whaling Commission does allow subsistence whaling without a set quota "to meet cultural and nutritional need" under domestic national legislation. It says such legislation needs to correspond with IWC requirements.

Iceland volcano drilling suggests magma could become source of high-grade energy

Amanda Graham — Thu, 17 Feb 2011 04:51:58 GMT

(University of California - Riverside press release via Science Daily, 16 February 2011) -- Geologists drilling an exploratory geothermal well in 2009 in the Krafla volcano in Iceland encountered a problem they were simply unprepared for: magma (molten rock or lava underground) which flowed unexpectedly into the well at 2.1 kilometers (6,900 ft) depth, forcing the researchers to terminate the drilling. "To the best of our knowledge, only one previous instance of magma flowing into a geothermal well while drilling has been documented," said Wilfred Elders, a professor emeritus of geology in the Department of Earth Sciences at the University of California, Riverside, who led the research team. "We were drilling a well that was designed to search for very deep -- 4.5 kilometers (15,000 feet) -- geothermal resources in the volcano. While the magma flow interrupted our project, it gave us a unique opportunity to study the magma and test a very hot geothermal system as an energy source." Currently, a third of the electric power and 95 percent of home heating in Iceland is produced from steam and hot water that occurs naturally in volcanic rocks. "The economics of generating electric power from such geothermal steam improves the higher its temperature and pressure," Elders explained. "As you drill deeper into a hot zone the temperature and pressure rise, so it should be possible to reach an environment where a denser fluid with very high heat content, but also with unusually low viscosity occurs, so-called 'supercritical water.' Although such supercritical water is used in large coal-fired electric power plants, no one had tried to use supercritical water that should occur naturally in the deeper zones of geothermal areas." Elders and colleagues report in the March issue of Geology (the research paper was published online on Feb. 3) that although the Krafla volcano, like all other volcanoes in Iceland, is basaltic (a volcanic rock containing 45-50 percent silica), the magma they encountered is a rhyolite (a volcanic rock containing 65-70 percent silica).

Arctic iron mine raises concerns over ship traffic

Amanda Graham — Wed, 19 Jan 2011 18:29:21 GMT

(Reuters via moneycontrol.com, 19 January 2011) -- A truce called in a bidding war for Canada's Baffinland Iron Mines sets the stage for an environmental battle over the Arctic project and the impact of shipping the ore through ocean ice to world markets. The development, on the drawing boards for decades, took a big step forward last week. ArcelorMittal and Nunavut Iron agreed to drop competing bids and extend a joint, C$590 million (USD 596 million) offer to take control of a project that could end up costing more than C$4 billion to build. Baffinland's board has endorsed the joint bid. The company, which hopes to have the mine producing by 2014, is expected to file a draft environmental impact study with territorial and federal regulators in the next few weeks, government officials say. While mining is not new to Canada's Far North, nothing has been attempted on the scale of Baffinland's Mary River project on Baffin Island, about 1,000 km (650 miles) northwest of Iqaluit, the capital of Nunavut territory. The mine is thought to have enough high-grade iron ore to meet Europe's needs for years. But plans to get the ore off the island include building the North America's northernmost railroad and bringing in a fleet of ships that can break the ice year-round. The impact of ships cutting through water that's covered with ice in winter is a concern, said Martin von Mirbach, Arctic program director at World Wildlife Fund Canada. "It's something that has to be carefully studied," said von Mirbach, saying it has the potential to change life for people and wildlife in a region that experiences 24-hour darkness in winter and round-the-clock daylight in summer. Some local Inuit fear year-round ship traffic will disrupt the migration corridors of wildlife, ranging from polar bears to beluga whales, as well as their own travel on the ice.

Opinion: Sara Wheeler: Why is Russia's Arctic closed to visitors? Who is hiding what?

Amanda Graham — Sun, 16 Jan 2011 09:05:20 GMT

(Sara Wheeler, The Independent, 16 January 2011) -- The Russian Arctic is savage. I travelled across it to research my book on the Arctic Circle. My nostrils froze, one of my teeth exploded, and my exhaled breath fell in a tinkle of crystals. The region is so isolated that reindeer-herding residents refer to the rest of Russia as "the mainland". But the landscape is the most powerful I have ever seen: dazzling, pristine, a kind of biological haiku. I love the pared-down existence of polar lands and the grace of their peoples under pressure. Chukotka is an Arctic region the size of Turkey in the Russian Far East (it's the bit Sarah Palin can see from Alaska). This magical slab of ice and tundra has no roads at all outside the capital, Anadyr. It took me two years to weasel my way in, but when I got there, I ran into President Medvedev. That morning he had stepped out of his helicopter to pat a reindeer and listen to some Chukchi folk songs in a local school. He was the first Russian head of state to bother; no tsar had ever come within a thousand miles. Five days previously, in a speech on Arctic policy to the Security Council in Moscow, Medvedev had flagged the reason for his visit. "This region," he said, "accounts for around 20 per cent of Russia's gross domestic product and 22 per cent of our national exports." He was talking about oil and gas. And now he wants more. The emergence of the Arctic as an energy frontier has shunted the entire zone into public consciousness, and hydrocarbon extraction is certainly set to remain an economic driver across the polar lands, not just in Russia. I'm not going to stop burning up my own share, so it would be hypocritical of me to call for a drilling ban. But I hope we don't foul up one of our last true wildernesses. ... And why is so much of the Russian Arctic closed to foreigners? Who is hiding what? On the Domodedovo plane back from Anadyr to Moscow, I sat next to a geochemist who had been working on a research vessel scouting the Barents Sea for potential drilling sites. When I asked if safety procedures were policed, he rolled his eyes and ordered another drink.

Arcelor wins bid for Baffin Island iron ore deposits. But not all of them

Amanda Graham — Sun, 16 Jan 2011 08:55:52 GMT

(Mia Bennett/Foreign Policy Blogs, 15 January 2011) -- After several months of bidding wars, ArcelorMittal has beaten out Nunavut Iron Ore Acquisition to acquire a majority of Baffinland Iron Mines Corporation’s shares, thereby winning control of the Mary River iron ore deposits on Baffin Island, in Canada’s Eastern Arctic (map). The world’s largest steelmaker will control 70% of the shares, while Nunavut will control the other 30%, all in all a $590 million valuation. Previously, Arcelor had offered $1.40 a share and Nunavut $1.45, until the two companies agreed to jointly offer $1.50 a share. While Arcelor appears the winner, it is still a major coup for Bruce Walter, the Canadian behind the scenes of many mining deals. He formed Nunavut Iron Ore only last August for the sole purpose of bidding on the Mary Island deposits. Arcelor was set to take over Baffinland last August until Walter attempted a hostile takeover, sending stock prices soaring. The deposits can produce up to produce 18 million tons per year, with an estimated lifetime of 21 years. If the price of iron keeps rising as it has done in the past 10 years, the investment could pay off. But still, it is expected to cost CAN $4 billion to develop the site, which Baffinland had tried in vain to do for years. The project area is expected to consist of an open-pit iron mine and a crushing and screening pit.

Labrador Inuit want to hunt more caribou

Amanda Graham — Sun, 16 Jan 2011 07:09:00 GMT

(CBC News, 14 January 2011) -- The Nunatsiavut government is asking for rule changes that would allow its members to hunt more caribou. Right now Nunatsiavut beneficiaries can kill as many caribou as they want on Inuit lands in northern Labrador, but outside that area, they're subject to the same rules as every other resident of the province. Newfoundland and Labrador limits hunters to just one animal per year. Some Inuit leaders want that to change. "It is very important that special consideration be given to beneficiaries," said Nunatsiavut First Minister Darryl Shiwak. He won't say exactly how many more animals they want but he did say that people in Nunatsiavut want Caribou to thrive in Labrador. "The conservation of this herd is very important but what we heard loud and clear is that people want to be able to harvest some caribou," said Shiwak. He also raised the idea of letting hunters transfer licences so one hunter can kill animals for several people. That's something the provincial government just abolished. The province hasn't responded to Nunatsiavut's request.

Gold strike on Svalbard

Amanda Graham — Tue, 11 Jan 2011 05:38:25 GMT

(Barents Observer, 6 January 2011) -- The company Store Norske Gull has found gold on the Arctic archipelago of Svalbard. Store Norske Gull started drilling this summer in the St. Johnsfjord on the western coast of the island Spitsbergen, after successful geological surveys in 2009. Analysis made in Canada and Sweden show that there is gold in the area, but it is too early to say if the deposits are big enough to be profitable, NRK reports. According to Morten Often in Store Norske Gull, the explorations will continue next summer. Store Norske Gull is a daughter company of the Store Norske Group, which operates Norwegian coal production on Svalbard.

Fishing groups sue over sea lion protection

Amanda Graham — Tue, 11 Jan 2011 05:22:24 GMT

(AP via Anchorage Daily News, 8 January 2011) -- UNALASKA - Alaska seafood organizations are suing to stop a ruling by the National Marine Fisheries Service that would protect fish on which the endangered Steller sea lions feed. Alaska Public Radio Network reported the ruling by the fisheries service has closed an area to fishing Atka mackerel and Pacific cod. The Alaska Seafood Cooperative fishes in the closed area, and takes about 90 percent of its Atka mackerel quota. Linda Larson, an attorney for the cooperative, said the ruling is misguided and unfairly blames overfishing for the decline of the Steller sea lion population when other factors might be to blame. Larson said the cooperative doesn't view the situation as a "conservation emergency." The fisheries service said it had to close the area to be in compliance with the Endangered Species Act.

Icelandic cod fisheries certified as responsible

Amanda Graham — Sun, 19 Dec 2010 03:23:13 GMT

(Iceland Review News, 16 December 2010) -- Icelandic cod fisheries received a Global Trust Certification, an international certification based on strict conditions which confirms responsible fishery control and sustainable use of the ocean’s resources, yesterday. Managing director of Global Trust Certification Peter Marshall presented the certification to the representatives of the Icelandic fishing industry at a special ceremony in the Reykjavík Maritime Museum, a press release from the Federation of Icelandic Fishing Vessel Owners states. “This certification from a third party which meets the demands and ethics regulations of the FAO in fisheries shows that cod fishing in Iceland is well and responsibly managed. I’d like to congratulate the Icelandic fishing industry,” Marshall said, adding that Iceland could become a role model for other nations. Minister of Fisheries Jón Bjarnason said in his speech at the ceremony that the certification is important to the Icelandic fishing industry as it has now been confirmed that it meets the market’s demands on sustainability and renewability of natural resources.

N.W.T. First Nation wants Arctic mining ban back

Amanda Graham — Fri, 17 Dec 2010 18:38:21 GMT

(CBC News, 7 December 2010) -- A Northwest Territories aboriginal group is taking the federal government to court for quietly opening a vast area of once-protected northern wilderness to mining claims. The Dehcho First Nations has asked the Federal Court to overturn Ottawa's order removing an existing ban on subsurface mining in the Horn Plateau, a 25,000-square-kilometre area in the south-central part of the territory. In its application for a judicial review dated Nov. 29, the Dehcho said the federal government's decision to remove the subsurface mining ban breaches an agreement made through the N.W.T. Protected Areas Strategy. The news comes as Ottawa announced proposed boundaries this week for a national marine park in Lancaster Sound, located at the eastern entrance to the Northwest Passage. The Horn Plateau region is the source of the Horn, Willowlake and Rabbitskin rivers, serves as a nesting area for migratory birds, and is a habitat for caribou, wood bison and wolverine species. The Dehcho Dene consider the area — which they call Edehzhie in the Slavey language — to be a sacred place and an important hunting ground. It is also known to have potentially significant oil and gas deposits. The Horn Plateau area has been under interim protection since 2002. Shortly before that protection was set to expire in October, the federal Indian and Northern Affairs Department issued an order-in-council extending that protection until 2012.

Reindeer 'cruelty' slammed by rights group

Amanda Graham — Tue, 07 Dec 2010 23:30:18 GMT

(The Local, 7 December 2010) -- Reindeer are being tormented when slaughtered, according to the animal rights organisation World Society for Protection of Animals (WSPA). WSPA released a video on Monday that shows reindeer in distress when herded and transported, and while at the slaughterhouse. "The film that we are showing is particularly shocking now that Christmas is upon us, but it clearly shows the cruel reality that reindeer are exposed to," Roger Pettersson, secretary general of WSPA Sweden, said in a statement on Monday. The footage also shows a reindeer being killed by a knife stab to the neck, as well as animals being earmarked by knife without anesthesia. "This must be stopped immediately," Pettersson told news agency TT on Monday. WSPA tasked a journalist with investigating the conditions for reindeer on their way to slaughter. "He followed the reindeer herding and observed the gathering, selection, transport and slaughter, and evidence shows a high stress level for the animals. The reindeer are stressed during transport and their antlers become entangled. Even during branding, the animals are treated poorly," said Pettersson. He said it is a challenge to handle reindeer, which are semi-domesticated animals and not accustomed to people. "Densely packed into transport vehicles, reindeer antlers become weapons. They get caught in the sides of transport vehicles and they can even hurt each other before they reach the slaughterhouse," Pettersson said in a statement. As such, Pettersson advocated the use of smaller mobile slaughterhouses such that the slaughterhouse move, not the reindeer. According to the WSPA, the problem of distressed reindeer is similar in all Nordic countries. It said it will call on the the Nordic Council of Ministers to urge it to act. The council adopted a declaration in 2008 that animals should be treated as sentient beings, have intrinsic value, and should be respected accordingly.

Commentary: Drilling in offshore Alaska Arctic

Amanda Graham — Mon, 29 Nov 2010 05:53:51 GMT

(John Donovan/RoyalDutchShellPLC.com [unaffiliated blog], 27 November 2010) -- From a former employee of Shell Oil USA: Latest industry estimates are that the new drilling technologies have given and will give the US about 100 years worth of gas reserves from unconventional ‘tight’ shales, sands, carbonates and hydrocarbon ‘source’ rocks. That is about 2500 trillion cubic feet of natural gas. Actual proven reserves are now about 1/4 to 1/3 that amount. What I find interesting about the gas reserve estimates for both the Chukchi and Beaufort offshore areas is that it does not exceed 25 trillion cubic feet, or about one years worth of domestic US consumption. The question now is : Why do we want to drill for this gas in such a hostile environment now, when we really don’t have any need for the gas? The logic escapes me. Oil reserve estimates for both areas are on the order of 20 billion bbls. While that is a significant amount of oil, not producing it will do nothing to effect the global price of oil, now or in the near future. And it is only about 8 months worth of current global consumption. Alaska’s state budget will be drastically effected because of lost royalty revenues if those reserves are not produced. But so what? There are other areas in the state to drill for oil and gas that are not nearly as environmentally sensitive, or where ‘accidents’ won’t have such a severe environmental impact, such as the National Petroleum Reserve. All things considered, including the off shore operating track record of the major oil companies in far less hostile environments, I think it is best to just sit back and wait awhile before trying to develop oil and gas reserves in the Alaskan Arctic. We can afford to do so. And I see no compelling ‘national security’ need to proceed ahead. Any so-called ‘national security imperative’ that would supposedly require drilling in the off shore Alaskan Arctic is a canard.

Major pipeline in northern Canada years away, despite approval

Amanda Graham — Sat, 20 Nov 2010 23:00:56 GMT

(Mike De Souza/Postmedia News via Canada.com, 15 November 2010) -- OTTAWA — A proposed $16 billion pipeline project in northern Canada could still be years away from beginning construction, despite getting a green light from the federal and Northwest Territories governments Monday, says a spokesman from the leading stakeholder, Imperial Oil. "The project would literally need thousands of individual permits for specific pieces of work," said Imperial Oil spokesman Pius Rolheiser. "As we said in our (public submissions), the stars would really need to align in order for construction of the project to commence in 2014." The two governments delivered a 127-page report on Monday that is rejecting many of the recommendations proposed by an environmental review panel, and referring others to the National Energy Board which is expected to release its own conditions for the project in the coming weeks. Rolheiser said the project proponents are also hoping to continue negotiations on financial aspects of the program such as taxes and royalties. Environment Minister John Baird acknowledged that talks had taken place, without making any commitments. "I think at the end of the day this is going to have to be a commercial decision," Baird told reporters. "The price of natural gas is very different than just a few short years ago or certainly very different from when this project was initiated." But he added that there could be tremendous economic benefits for Canada and its northern region in particular.

More ore found in Kiruna

Amanda Graham — Sun, 14 Nov 2010 02:58:10 GMT

(BarentsObserver, 12 November 2010) -- The LKAB company in northern Sweden has found iron ore worth more than one billion Swedish kroner in its 50-year old waste deposit. "It is absolutely fantastic that we have found ore in our old rock deposits," LKAB representative Anna Tyni told Swedish Radio. The ore was discovered in more than 50-years old rock piles, newspaper Dagens Industri reports. The LKAB company is with its iron mines in and around Kiruna a cornerstone company in northern Sweden.

Russians restarted coal mining at Svalbard

Amanda Graham — Mon, 08 Nov 2010 18:09:53 GMT

(BarentsObserver, 8 November 2010) -- The Russian company Trust Arktikugol has restarted coal mining at the archipelago of Svalbard after a two-and-a-half-year break. The production halt came after a fire in the local mine in 2008. Sea water was pumped into the mine to extinguish the fire, which subsequently destroyed equipment and required a major overhaul of production. Production restart was further complicated by low coal prices, NRK reports. In 2009, Svalbard had a population of 2,753, of which 423 were Russian and Ukrainian, Wikipedia informs. In Barentsburg, mining is the only livelihood, while the neighboring Norwegian settlement of Longyearbyen in addition to mining also has a well-developed tourist industry and a significant presence of polar researchers.

Battle over U.S. Arctic refuge's future heats up

Amanda Graham — Mon, 04 Oct 2010 03:44:50 GMT

(Yereth Rosen/Reuters via FoxBusiness, 1 October 2010) -- ANCHORAGE, Alaska - A planned study of possible new wilderness protections for the Arctic National Wildlife Refuge has sparked a furor in Alaska, where energy companies have long dreamed of tapping oil reserves beneath its vast coastal plain home to herds of migrating animals. The U.S. Fish and Wildlife Service effort announced this week is part of a sweeping review of a land-management plan for what is the second-largest national wildlife refuge in the United States. The agency stresses that its work is just starting and that a formal draft is not expected until next year. But the oil industry and its political allies regard it as a prelude to an attempt to keep the refuge off-limits to energy production for good by formally declaring its remote coastal tundra as wilderness. "Alaska will not allow the federal government to lock up more land without a fight," Governor Sean Parnell said this week. The Alaska Wilderness League, for its part, accuses oil companies of trying to destroy a refuge that represents the only place on Alaska's North Slope that is legislatively closed to development. "The Arctic Refuge is one of the last true wilderness areas left in the United States — some places are just too special to sacrifice to oil and gas development," said Cindy Shogan, the league's executive director. Established 50 years ago in the northeast corner of Alaska, ANWR occupies 19.3 million acres, stretching from saltwater marshes of the Beaufort Sea on its northern edge to the spruce, birch and aspen forests in the Brooks Range's southern foothills. Its wilderness plan was last revised in 1988, eight years after Congress expanded the refuge to its current size and effectively closed all of it to energy development.

Marine mammals buoy diets, culture and community

Amanda Graham — Mon, 13 Sep 2010 04:24:42 GMT

(Dimitra Lavrakas/Dutch Harbor Fisherman, 9 September 2010) -- Marine mammals have provided Alaska Natives with a healthy diet and warm clothes for thousands of years. Coastal villagers often say, "This is our garden." Of course it is. With North Slope villages listed with a growing season of one day in most gardening books food must come from somewhere. And for anyone who has bitten into a slice of mutuk at minus 20, that fat is the ultimate energy bar — you can feel the heat creep through your veins before it even reaches your stomach. It is a direct example of how people managed to survive the Arctic so well for so long. But in the 21st century, hunting for marine mammals comes with much misunderstanding and many cultural taboos. While "Save the Whales" has been the rallying cry for conservationists, "Yeah, save the whales for dinner" just might be the quip you overhear at a whaling camp on the shore ice off Barrow during spring whaling season. ... All of the marine creatures that feed northernmost communities now face a new future — an ice-free shipping lane, seismic tests and exploration in search of new sources of oil and gas. Plus there are international disputes over who owns what in the Arctic. The U.S. Coast Guard is considering establishing a base in Barrow to protect the country's interest in the Arctic. Canada is asserting that it owns a large part of the Arctic. The Inuit Circumpolar Conference, founded in 1977 with the help of North Slope Mayor Eben Hopson, united Inuit from Canada, Greenland, Alaska, and eventually Russia in discussions on issues of common concern. ... On Sept. 2, Secretary of the Interior Ken Salazar and his deputy secretary David J. Hayes held a town hall meeting in Barrow to discuss issues of importance to the North Slope. "It's a challenge," says Itta. "We live in modern times and we depend on a cash economy just like other people. We also have this deep connection to a traditional subsistence lifestyle, so we have to protect the web of life in the ocean. I think our best bet is to recognize that offshore development is probably going to happen, and to insist that we have a say in how it happens. We are the people who will have to live with the impacts, and we have very recently seen what can happen when things go wrong offshore. So I feel justified in demanding world-class protections and mitigations. "If the government and the companies are really committed to doing it right, then they should be willing to spend a little bit of money to calm our fears by going the extra mile toward protecting the ocean and our culture." The ringed and bearded seals, the beluga, bowhead and the gray whales that visit occasionally, the walrus and all the other creatures that are a vital part of Inupiat lives go about their business unaware of the very important decisions being made for them on land.

Yukon's newest gold-rush millionaire feels like a Clampett

Amanda Graham — Sun, 22 Aug 2010 19:05:10 GMT

(Anchorage Daily News, 19 August 2010) -- Shawn Ryan of Dawson, Yukon, and his family are just back from a European vacation. It was their first vacation, and it's hard to imagine one more deserved. After years of prospecting in the Yukon, living in a tin shack, searching for the long-rumored gold veins that fed nuggets into fabled Klondike streams, the Ryans are millionaires and could rake in millions more from the modern-day gold rush that Shawn started, reports Canada's Globe and Mail. Whether Ryan actually has discovered the source of Klondike gold has yet to be determined, but his finds have been significant enough to set off one of the biggest claim-staking frenzies since prospectors poured into the Yukon and Alaska in the 1890s. His newfound wealth comes mostly from deals signed with other prospectors giving them access to his claims.

PM slams EU over seal ban go-ahead

Amanda Graham — Sun, 22 Aug 2010 03:37:44 GMT

(CBC News, 20 August 2010) -- Prime Minister Stephen Harper is slamming the European Union's decision to proceed with a ban on seal products despite a court ruling ordering that the policy be suspended while legal challenges to it are heard. Speaking in Charlottetown on Friday, the prime minister urged the EU to respect its own court's injunction, saying the ban is "completely unfair and a discriminatory treatment" of a Canadian industry that employs people of modest means. Seal industry workers, Harper said, are being "targeted by environmental extremists based on complete misinformation." The Canadian government will continue to defend the sealers' interests because they respect the "same kind of humanitarian considerations" that are present in other areas of animal husbandry, Harper said. "They should not be targetted like this, and the government of Canada will continue to speak out in their defence," said the prime minister. According to media reports, the EU ban went into effect on Friday, but seal products sold by groups that have already filed court actions appealing the ban are exempt from it. Those groups include the Inuit Tapiriit Kanatami, which represents Canada's 53,000 Inuit, and Greenland's Inuit.

EU seal ban suspended

Amanda Graham — Fri, 20 Aug 2010 19:03:58 GMT

(CBC News, 20 August 2010) -- A European Union ban on seal products was temporarily suspended Thursday, the day before it was set to take effect, because of a legal challenge by Inuit leaders. The Inuit Tapiriit Kanatami, representing Canada's 53,000 Inuit, and other Inuit organizations in Greenland and Norway filed a legal challenge against the EU's ban earlier this year, calling it illegal and immoral. The Canadian Seal Marketing Group and the Fur Institute of Canada are also involved in the challenge. The EU's General Court, based in Luxembourg, agreed to impose a delay on the ban in order to properly consider the legal challenge, saying the delay was in the "interest of the proper administration of justice." "I'm pleased to report that we have just learned this morning that the petition launched by the Inuit Tapiriit Kanatami for an injunction has been granted," Federal Fisheries Minister Gail Shea announced in St. John's. "This means that the ban does not come into force tomorrow." Inuit leaders were pleased with the news. "The … [court] has decided there's more time required to properly review our request," said Mary Simon, president of the Inuit Tapiriit Kanatami, told CBC News. "To us, that is a very important decision because it is rare that the European Union court would suspend an EU legislation." "To us, it makes it clear that the EU court is taking our legal case seriously." Simon expects the court case will be heard in the fall or early winter.

Canada to get tough with Greenland over Arctic drilling: environment minister

Amanda Graham — Sun, 23 May 2010 16:53:27 GMT

(Shannon Montgomery/Canadian Press via Metro News Halifax, 20 May 2010) -- CALGARY - Environment Minister Jim Prentice says he will demand the highest environmental standards be followed as Greenland explores offshore oil drilling just outside of Canada's territorial waters. Prentice said he'll make Canada's position very clear at a meeting of Arctic countries next month. "We certainly want to be sure that the highest possible environmental standards are being followed and we intend to make our views known," he said at an event in Calgary. "Obviously drilling offshore wells in the Arctic environment, particularly deep wells, is something that we are concerned about. Greenland recently accepted bids to drill in Baffin Bay near the mouth of Lancaster Sound, which is close to where Canada hopes to establish a marine conservation area. The territory hopes to drill along thousands of kilometres of the maritime border it shares with Canada starting this summer.

Forest companies, conservationists join to protect Canada's boreal forest

Amanda Graham — Thu, 20 May 2010 21:32:55 GMT

(ENS, 18 May 2010) -- TORONTO, Ontario - In a deal that marks the coming together of two traditional adversaries, environmental groups and the member companies of the Forest Products Association of Canada today agreed to manage a broad swath of northern boreal forest to the highest environmental standards. Under the agreement, the 21 FPAC member companies, who manage two-thirds of all certified forest land in Canada, commit to the highest environmental standards of forest management within 72 million hectares (277,993 square miles) of public forests licensed to FPAC members from British Columbia in the west to Newfoundland and Labrador in eastern Canada. Nine conservation groups commit to global recognition and support for FPAC member efforts. "Do Not Buy" campaigns by the groups Canopy, ForestEthics and Greenpeace will be suspended while the agreement is being implemented. New logging will be suspended on nearly 29 million hectares (111,969 square miles) of boreal forest to develop conservation plans for threatened woodland caribou, while maintaining essential fiber supplies for uninterrupted mill operations. "This is our best chance to save woodland caribou, permanently protect vast areas of the Boreal Forest and put in place sustainable forestry practices," said Richard Brooks, spokesperson for participating environmental organizations and Forest Campaign coordinator of Greenpeace Canada. "Concerns from the public and the marketplace about wilderness conservation and species loss have been critical drivers in arriving at this agreement," Brooks said. "We have a lot of work to do together to make this agreement successful and we are committed to make it happen." "The importance of this agreement cannot be overstated," said FPAC President and CEO Avrim Lazar. "Together we have identified a more intelligent, productive way to manage economic and environmental challenges in the boreal that will reassure global buyers of our products' sustainability."

Canada to review Arctic drilling after U.S. spill

Amanda Graham — Thu, 13 May 2010 23:47:27 GMT

(Alexandre Deslongchamps/Blomberg Businessweek, 12 May 2010) -- Canadian national and provincial energy regulators will review the safety requirements for offshore drilling projects in a bid to prevent an oil spill similar to the one in the Gulf of Mexico. The Calgary-based National Energy Board will review procedures for Arctic drilling, while Canada’s easternmost province of Newfoundland said today it appointed Mark Turner, former chief operating officer of North Atlantic Pipeline Partners and Newfoundland LNG Ltd., to probe its ability to prevent and respond to a spill. While Prime Minister Stephen Harper has said Canada’s rules are safe, the opposition Liberal Party said yesterday it wants to conduct a review of offshore drilling and that a moratorium could be necessary if current rules aren’t stringent enough. “We need to learn from what happened in the Gulf,” Gaetan Caron, the regulator’s chair, said in a statement released yesterday. “The information taken from this unfortunate situation will enhance our safety and environmental oversight.” The National Energy Board will announce the details of the review in the “near future,” according to the statement. It takes the place of a separate review the Board had begun into the need for Arctic operators to be able to drill relief wells during the same season. The watchdog said there is currently no offshore drilling in the Arctic and it hasn’t received any applications for such a project.

Greenland proceeds with plans for offshore drilling in Arctic waters

Amanda Graham — Sun, 09 May 2010 17:44:28 GMT

(Darrell Delamaide for OilPrice.com via OilGuy/OpEdNews.com, 9 May 2010) -- While the oil spill from a sunken drilling rig in the Gulf of Mexico threatens to become an environmental disaster, plans are proceeding for opening up new drilling territories in the iceberg-infested waters off Greenland. The island, an autonomous territory under Danish sovereignty, this week conducted an auction for 14 blocks in Baffin Bay, off the northwest coast of Greenland near Canadian territorial waters. Results will be announced in August. In the meantime, Cairn Energy will this summer begin drilling off DiskoIsland in Baffin Bay on the basis of leases awarded in earlier auctions. Exxon Mobil and Chevron also hold existing leases, while Royal Dutch Shell and Norway's Statoil were among the bidders in this week's auctions. The U.S. Geological Survey has estimated that some 50 billion barrels of oil may be found offshore Greenland, where ice covers four-fifths of the surface territory for a good part of the year. Some in Greenland, which has a population of only 57,000, hope that oil will be the ticket to independence from Denmark, which has controlled the island since the 18th century. The portion of the Labrador Current flowing through Davis Strait off western Greenland is known as "iceberg alley" because huge chunks of ice that calve from the northern glaciers make their way into the northern Atlantic along this route. Ironically, global warming, which has melted some of the Arctic glaciers, has made offshore drilling in these waters more feasible. However, the Gulf oil spill is raising concerns in Canada about the risks posed in drilling so near the Canadian coastline. Cairn Energy's only offshore drilling experience has been in the much warmer Indian Ocean, and no one has had to cope with an oil spill in Arctic waters. Officials from eight Arctic countries, including Canada, are to meet in Greenland next month to discuss possible environmental risks of oil exploration and production in the region. Last fall, seven companies with drilling licenses, including Cairn, formed the Greenland Oil Industry Association to exchange expertise and liaise with the government on environmental and other issues. Analysts estimate that an oil price of at least $50 a barrel is necessary to make Arctic offshore drilling worthwhile. Prices have hovered around $80 a barrel in recent months.

Arctic research set to be beefed up

Amanda Graham — Thu, 06 May 2010 06:50:35 GMT

(China Daily, 6 April 2010) -- Beijing - The Arctic will be the focus of stepped-up research and expedition efforts to deal with challenges and opportunities arising from melting ice cover, the country's top administrator on polar research has said. Climate and environmental changes in the Arctic have a direct impact on China, Qu Tanzhou, director of the Chinese Arctic and Antarctic Administration (CAA) affiliated to the State Oceanic Administration, told China Daily. "We need to increase scientific research and expeditions to better comprehend the Arctic Ocean and global climate change," Qu said, adding that China lags behind some countries in this regard. The Stockholm International Peace Research Institute (SIPRI) released a report in February saying that the Arctic could become consistently ice-free during summers from 2013 to 2060, posing economic, military and environmental challenges as well as offering opportunities. China, like other countries under the framework of the United Nations Convention on the Law of the Sea, has the right to participate in the exploration of the Arctic, Qu noted. "Scientific expeditions are the first step. We will take part in more activities through cooperation or independent exploration," Qu said. It is estimated that the Arctic has 30 percent of the world's undiscovered gas and 13 percent of the world's undiscovered oil, which are "global resources, not regional", Qu pointed out. The UN convention defines territorial waters as those extending 12 nautical miles beyond a country's coast. Waters extending 200 nautical miles are a country's exclusive fishing and mining zones. It also stipulates that the high seas and the resources in the seabed there are the common heritage of mankind. "We will strengthen collaboration and exchanges with Arctic and Antarctic countries in polar research," he said.

Inuit orgs form new Nunavut resource company

Amanda Graham — Mon, 12 Apr 2010 16:52:33 GMT

(Nunatsiaq News, 12 April 2010) -- In an effort led by the Kitikmeot Inuit Association, three Inuit associations in Nunavut have bought into a new corporation that’s aimed at creating more Inuit involvement and decision-making power in Nunavut resource development projects. The new company, called the Nunavut Resources Corp., will buy into mining projects on Inuit-owned and Crown land, an April 9 press release said. “The formation of NRC means Inuit can move from being watchers to being participants and decision-makers in the development of the North,” the company’s press release said. Charlie Evalik, who now serves as president of the Kitikmeot Inuit Association, will chair the new corporation, while Inuit organizations like the Kitikmeot Inuit Association, the Kivalliq Inuit Association and Nunavut Tunngavik Inc. will own it. In the press release, Evalik is quoted as saying Inuit get jobs, contracting opportunities and royalties from current benefit arrangements but still depend on others to make key development decisions. “That means the real gains, including capital gains, from development in Nunavut go to others. It is time for Inuit to enhance their participation in development on their lands and in Nunavut,” Evalik is quoted as saying. The press release said the company’s board, drawn from “business leaders with expertise in corporate finance and mineral development,” will be appointed over the next few months.

Restricting Kola reindeer

Amanda Graham — Mon, 12 Apr 2010 07:25:10 GMT

(Barents Observer, 7 April 2010) -- Regional authorities in Murmansk want to limit the free movement of reindeer herds to 100-200 km wide zones. In an interview with newspaper Vedomosti, regional Governor Dmitry Dmitriyenko said that his administration plans to establish 100-200 km wide zones for the regional reindeer herds. This will help raise productivity, the governor argues. Today, reindeer herds migrate over major parts of the peninsula. Governor Dmitriyenko says the changing climate makes it increasingly difficult to gather the herds at slaughter time because the rivers now freeze later than before. It is the indigenous Sami population which has the reindeer herding as its main industry. The main Sami settlements are located in the central parts of the peninsula with the town of Lovozero as the main centre.

The North scrapes bottom

Amanda Graham — Mon, 12 Apr 2010 05:59:46 GMT

(Nathan VanderKlippe/Globe and Mail, 9 April 2010) -- Diavik Diamond Mine, NWT - Ninety metres below a gaping hole in the subarctic Barren Lands, a huge square tunnel ends at a wall of dark rock. Overhead, water drips from Lac de Gras, the epicentre of Canada's diamond boom. The dripping is a reminder that the lake's shores were moved to make way for an open-pit mine. Now that that pit has reached its bottom, miners are down here digging a network of tunnels to extract what remains of the carrot-shaped deposit of kimberlite that they have been pulling from the ground for nearly a decade. In the light of their lamps, the rock looks black as coal. Hidden inside are the diamonds that have shaped the fate of the Northwest Territories for the past 20 years. Between Diavik and other diamond mines, the wealth at Lac de Gras, about 300 kilometres north of Yellowknife, accounts for nearly a quarter of the territorial economy. Diamonds have pumped billions into local businesses and bank accounts, and have been a catalyst for remarkable social change, including dramatic increases in graduation rates in some aboriginal communities as economic success is passed from generation to generation. But the fact that miners are working 90 metres underground, and not still scraping away the surface, points to the end of the boom. A place already rocked by the global downturn now faces the reality that its payday resource is running out. One former government official warns that a looming lack of jobs may create a “lost generation”; another refers to the coming years as Exodus 4, the latest painful chapter for a territory that has witnessed severe busts before.

China and the Arctic (mp3)

Amanda Graham — Wed, 10 Mar 2010 22:43:29 GMT

(CBC Radio: The Best of The Current, 9 March 2010) -- China has no territory in the Arctic. But thanks to global warming and the possibility of new shipping lanes, its Arctic ambitions are on the rise. We started this segment with some sound of an icebreaker cutting its way through the Arctic ice. It turns out the largest non-nuclear ice-breaker in the world is owned by China ... a country with no Arctic territory and no obvious connection to the region. On top of that, China is now building another ice-breaker, one that would be smaller but capable of handling the kind of high-tech Arctic research in which the country is becoming increasingly engaged. The full extent of China's Arctic ambitions was outlined in a report released last week by the Stockholm International Peace Research Initiative. It's called China and The High North Prepare for an Ice-Free Arctic. Linda Jakobson is the author of the report. She's the Acting Programme Director and the Senior Researcher for the Institute's Programme on China and Global Security. And she was in Shanghai. According to Gordon Chang, China is likely to press its interests in the Arctic as far as it is able to ... something he says Canada should keep in mind in the coming years. Gordon Chang is a writer with a weekly geo-political column for Forbes.com. He has lived and worked in China and Hong Kong. He's also the author of The Coming Collapse of China. And he was in New York City this morning. For his thoughts on whether Canada is equipped to impose its own presence in this equation or defend its Arctic interests, we were joined by Michael Byers. He is the Canada Research Chair in Global Politics and International Law at the University of British Columbia. He's also the author of Who Owns The Arctic? And he was in Vancouver.

Greenland moves to formalize Arctic-apartheid system in gemstone exploration

Amanda Graham — Mon, 08 Mar 2010 20:55:00 GMT

(True North Gems Apartheid press release via PRWeb, 5 March 2010) -- Nuuk, Greenland - Niels Madsen, a small scale mining activist and one of the founders of the 16th August Union, a Greenlandic association of small scale miners, has issued a call to the international community to block the Greenland Bureau of Minerals and Petroleum’s (BMP) continuing attempt to disenfranchise Greenlanders from their mineral resources. The BMP has recently revoked communal ownership of the land and its resources, which were formerly guaranteed under Article 32 of the Greenlandic Constitution. On March 8th, Greenland’s Manager of the BMP, Jorn Skov Nielsen will present in Toronto to the Prospectors and Developers Association of Canada http://www.pdac.ca/ with the clear aim of offering Greenland’s vast mineral wealth to large-scale mining companies. “Any company that collaborates with the BMP is not only in violation of the UN Declaration of Indigenous Rights,” said Madsen, “they are also supporting what has clearly become an apartheid system.” True North Gems, Inc., (TNG), a junior Canadian mining company prospecting for ruby on Greenland since 2004 was recently granted rights to an enormous exploration license near the village of Fiskenaesset. On Tuesday 9 March 2010, TNG is scheduled to give a 20 minute presentation to the Canadian diamond community. Until the documentation of valuable gem deposits in Greenland, Inuits were allowed to gather, polish and sell gem material. Once exceptionally valuable ruby was documented by TNG, the BMP issued completely new mining laws. “Once an applications is filed to mine, the BMP delays or outright refuses to issue licenses,” said Madsen. “We also want to benefit from the ruby we already collected and legally own and pay fair taxes, but at present that is not possible.” “Even though True North Gems is very unpopular in our country, we respect large scale mining. But we cannot tolerate being thrown out of the many big exploration areas which will soon be covering the entire land which is our commons,” said Madsen, who gathered four thousand signatures in support of Inuit small scale mining rights for ruby on Greenland. ... “The BMP is guilty of marginalizing the Inuit from their own wealth and inheritance,” said Valerio. “Not only do their new small-scale mining laws discredit the BMP in the eyes of the international gemstone community, they also humiliate and discriminate against very people they claim to represent.” [See the protest web site.]

Letter: Iceland will play crucial role in Arctic sea route

Amanda Graham — Mon, 08 Mar 2010 20:48:38 GMT

(Robert H. Wade/Financial Times Comment, 4 March 2010) -- Sir, Your article “Exploring the openings created by Arctic melting” (March 2) highlights China’s growing interest in emerging sea routes across the Arctic. One reason is that the distance from Chinese ports to European and east coast North American ports is much shorter across the Arctic than through Suez or around the Horn. Chinese planners anticipate building giant ice-strengthened container ships able to use the shorter route as the ice melts. But the cargoes would have to be shifted to smaller ships to enter their destination ports. Where would the transshipment port be located? One obvious place is Iceland, which sits at the entrance to – or exit from – the Arctic ocean. It has several fjords suitable for such a port. This may help explain China’s more-than-usual friendship with tiny Iceland. The Chinese embassy is the biggest in Reykjavik by far. When the president of Iceland paid a state visit to China in 2007 he was received with all the pomp and ceremony of the head of a major state. And when Iceland was campaigning for a seat on the security council in 2008, China backed it publicly and helped to raise support from mini states in the Pacific and Caribbean. ...

Coal project in Canadian North gets cold shoulder from Nunavut review panel

Amanda Graham — Sun, 07 Mar 2010 18:21:54 GMT

(Randy Boswell/Canwest News Service, 4 March 2010) -- A controversial proposal to open a coal mine on Ellesmere Island — potentially one of the planet's most northerly industrial operations — has hit a major roadblock after a Nunavut review agency ruled that "the high likelihood of immitigable impacts" to wildlife and globally-significant fossil beds in the region demand that the project be "modified or abandoned" by its B.C.-based developer. The thumbs-down recommendation from the Nunavut Impact Review Board, filed Feb. 22 with the federal government, was hailed as a victory of fossil science over fossil fuel by the U.S.-based Society of Vertebrate Paleontology, which had described the proposed Weststar Resources Corp., coal project as a threat to "some of the most significant sites in the world" for fossil researchers. The board's decision leaves the project's fate in the hands of the federal government and could force the company to radically redesign its development plans. "The news couldn't be better," society president Blaire Van Valkenburgh said in a statement sent Thursday to Canwest News Service. "This is the strongest possible outcome in our favour." In its report, submitted to Indian and Northern Affairs Minister Chuck Strahl, the review board cited "unacceptable potential adverse impacts" — including possible disruption of Inuit hunting activities — in rejecting the proposed mine. Despite a submission from Environment Canada, backing Weststar's plan — described by the federal ministry as "a type where the potential adverse effects are highly predictable and can be mitigated with known technology" — the NIRB concluded there was too great a risk of harm to Peary caribou, other "sensitive wildlife" and "significant paleontological resources."

Preparing for exploration off Yamal

Amanda Graham — Sun, 21 Feb 2010 20:03:11 GMT

(BarentsObserver, 19 February 2010) -- A Russian government service is to evaluate a report on the exploration of the shelf west of the Yamal Peninsula. The Russian Service on Ecological, Technological and Nuclear control is to conduct a state evaluation of materials on the mapping of the waters west of the Yamal Peninsula, the government body informs on its website. The waters outside Yamal are along with the Kara Sea believed to contain major amounts of hydrocarbons, and first of all natural gas. Gazprom is currently in the process of developing land-based fields in the Yamal Peninsula. Those fields, among them the huge Bovanenkovo field, could pave the way also for offshore developments. It is Gazprom which has the licenses to the fields in the area. The Ministry of Natural Resources will, in the course of February, publish a report on the development of the Russian shelf, RIA Novosti reports.

Ethical-sealing pledge could lift EU ban: senator

Amanda Graham — Fri, 12 Feb 2010 06:12:52 GMT

(CBC News, 11 February 2010) -- A Quebec senator is calling on Nunavut to sign on to a proposed international declaration on ethical seal hunting, which she says could help Canada challenge the European Union's trade ban on seal products. Senator Céline Hervieux-Payette is visiting Iqaluit this week to promote the Universal Declaration on the Ethical Harvest of Seals, which she released last year. Hervieux-Payette, who plans to go on an Inuit seal hunt on Thursday, said Tuesday the declaration could help Canada make a case to the World Trade Organization to force the EU to overturn its seal product ban. "It was just a pure political decision which has no legal ground," she said of the ban. The seal-product ban was adopted by 27 European countries last year, in part because of anti-sealing campaigns that accused Canada of conducting an inhumane seal harvest. The ban has a limited exemption for seal products derived from traditional Inuit hunts, but Inuit sealers and leaders have said such exemptions are not clear and the overall ban has still affected the Inuit seal hunt. The Canadian government has already filed a complaint with the World Trade Organization, arguing that the ban violates the EU's trade obligations. As well, Inuit organizations in Canada and Greenland are suing the European Union over the trade ban. The Universal Declaration on the Ethical Harvest of Seals aims to promote a balance between ensuring animal welfare, maintaining the well-being of people in sealing communities, and protecting the environment. The document states that its signatories — which currently include the governments of Quebec and Newfoundland and Labrador — care about the welfare of animal populations and believe in ensuring they are hunted properly. The declaration calls for the seal population to be monitored and documented, and harvest quotas to be defined. As well, it says seals must be killed in a quick and professional manner, using humane methods.