An Approach for the RoF Development
posted on
May 05, 2012 07:25PM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Instead of forming lobby groups with threats to disrupt the development of the RoF if certain demands are not met, a more reasonable approach should be discussion potential mutual benefits with the potential investors (national or international). Since threats would scare off potential investors who want to put their investment in a stable jurisdictions. This would apply to the company level and its shareholder as well. If there is a more stable country to come in to develop the natural resources there, international companies would not pick countries like Mongolia, Venezuela, and now Argentina (nationalisation of a major Spain's oil company) and Indonesia (tax surcharge). As far as shareholders are concerned they would shy away from companies which have exposure to such countries. They would sell their shares and invest in different companies. The same effects would result from wars, civil unrests, constant labour troubles, or potential off-and-on blockades. Companies are investing billions of dollars in major projects and they want to protect their investment as an obligation to their shareholders. They don't have to spend the money in an unstable situation. They just pick up their marbles and go play elsewhere which is less risky.
Quebec provides a good example of government initiatives to encourage the development of their natural resources. User-friendly rules and regulations, tax rebate for exploration, cheap power rates, government spending some $80B for their Plan Nord and they don't seem to have too many run-ins with the FNs.
Why can't we do this in Ontario. Let's start with the infrastructure, roads, RR, transmission line, communications network. How much does Ontario have for infrastructure development in the next 3 years, some $13B? and the RR would cost some $2B). This deveopment can be done with the assistance from the Fed and co-operation from the FNs since the modern facilities and mining operations will help the development of the norther communities which are presently isolated from the large population centres in the south. PM Harper seems to be keen in the development of natural resources to sell the stuff abroad (Asia) and to build wealth for the people of Canada.
Let do this infrasture thing first, without endless analysis, debates, and squables among different groups. The governements should get together to form a unified game plan and fast track it. This is called nation building.
"You build and they (the companies) would come". All this is not for free, since fees could be charged to the companies to recover the initial investment. This is in addition to the creation of jobs for a lot of folks including the people FN communities, taxes, etc.
It's a two way street for both the company and local population. Companies are not given a green light to come in and rob the wealth that belongs to the people, but a head-on collision approach using threats would not really be helpful in attracting potential investors.
Just my musings,
goldhunter