Re: Warning shot over the bow?
in response to
by
posted on
May 01, 2018 09:03AM
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)
Ringer, to me this is like watching a comedy act.
When it comes to Steel, Trump has said from the beginning that as long as Canada tightens its borders and doesn't allow cheap foreign steel to slip in and make its way to the USA...he is ok with Canada.
It's a win win for Canada and the USA...or err umm...I mean the consortium that has worked so hard over 10 years to position themselves in a multitude of companies for cheap that either provide ingredients for steel or make the steel.
It seems to me that Trudeau is being given an excuse to come down hard on foreign steel suppliers....the "TRUMP forced me to do it. Sorry to be so ...mean..foreign suppliers."
The current LNG example is just one example of a win-win situation.
The consortium behind LNG Canada named the prime contractors for its $40-billion export project on Friday, taking the development forward amid concerns that steep import tariffs on some steel components could still make the project untenable.
The consortium, led by Royal Dutch Shell Plc, has yet to make a final investment decision on the project, but says it will come down some time this year. PetroChina Company Ltd., Korea Gas Corp. and Mitsubishi Corp. are the other partners on the project.
There are wild claims flying about as proponents of the liquefied natural gas industry attempt to convince the federal and British Columbia governments that fabricated steel products for potential LNG plants here simply have to be built in China.
Not only is that untrue, it also represents a serious threat to our existing vibrant steel fabrication industry in B.C. — which supports 5,000 direct and thousands more indirect jobs, with annual revenues of $1.5 billion. And across Canada it’s a $5 billion industry with 40,000 jobs.
Unfortunately, both LNG Canada (which is considering a $40 billion LNG plant in Kitimat) and Woodfibre (with a possible $1.6 billion project in Squamish) claim that LNG steel modules simply cannot be produced in Canada.
So they want the federal government to exempt it from anti-dumping duties of up to 45.8 per cent on fabricated steel components from China.
But Canadian steel fabricators can build those modules — and create good jobs and investment here in B.C. And we will do the job right the first time, something that Chinese steel has repeatedly failed at.
First, the anti-dumping duties imposed last year were the result of a thorough investigation by the Canada Border Services Agency and the Canadian International Trade Tribunal, which found that fabricated industrial steel components from China, South Korea and Spain were being illegally “dumped” in Canada — sold here for below the market price in the exporting countries.
The CBSA also found that various levels of the Chinese government subsidized steel components.
That’s unfair and illegal competition, designed to deprive B.C. and Canadian steel fabrication companies and workers of their jobs.
Fortunately, Canada’s three major political parties agree — illegally dumped Chinese steel is a threat.
“We are very concerned about the actions taken by China and the dumping of steel and aluminum on the global market,” Liberal Prime Minister Justin Trudeau said last month.
After a tour of Burnaby’s George Third and Son steel fabrication plant late last month New Democratic Party leader Jagmeet Singh agreed, stating: “We’ve got a strong and vibrant industry … that needs to be protected.”
And opposition Conservative leader Andrew Scheer said last fall: “In the case of China … you have a lot of government subsidies artificially lowering the costs potentially keeping Canadian companies from even starting up.”
Canada isn’t alone: last month the European Commission extended anti-dumping duties of 48 to 72 per cent on Chinese steel products by another five years after an investigation found continued unfair trade practices.
Let’s clear up other LNG claims. They argue that the 45.8 per cent dumping duties will make their projects unaffordable.
In fact, the 45.8 per cent is only the highest margin of dumping duties imposed on companies that refused to cooperate with the CBSA investigation; three cooperative exporters have dumping rates of just 2.4 per cent or less.
Canada can’t build steel LNG modules? Incorrect. Large and very complex steel modules have and can be assembled in Canada’s east coast — and our west coast can do the same, given our track record with some of the best and most complex industrial facilities in the world.
Think otherwise? Just look at the new Port Mann Bridge, the Rogers Arena or the Richmond Olympic Speed Skating Oval, which all used steel fabricated in B.C. and Canada.
What’s more, the fabricated steel needed for the LNG Canada project represents just half a year’s existing Canadian capacity – it is extremely do-able.
And fabricated steel represents just 1.6 per cent of the total project cost – any claims Canadian steel would cost extra “billions” is simply wrong.
But granting duty remission to Chinese steel would essentially eliminate investment and jobs in new and existing module yards on B.C.’s coast.
Is Chinese steel really cheaper? No. Check out Victoria’s new Johnston Street Bridge — budgeted first at $40 million and then $63 million — it is now at $105 million and counting and three years late.
Why? Because of costly problems with the Chinese fabricated steel supplier.
Let’s be clear: the LNG industry requests for remissions and exemptions from duties and tariffs on Chinese steel products isn’t about making their projects go or not go — it’s about maximizing profits by unfairly using illegally dumped and subsidized foreign fabricated steel.
B.C. and Canadian steel fabricators and workers would welcome the LNG industry creating new projects here — but not at the cost of our own businesses and jobs.
Eric Bohne is general organizer for the Ironworkers Union in Western Canada; Ed Whalen is CEO of the Canadian Institute of Steel Construction