The FTA would improve market access for machinery and equipment necessary for mining operations, which will be duty-free once the deal is implemented. There would also be market access “well beyond” Peru’s WTO general agreement on trade in service commitments - notably in mining, energy and professional sectors - according to Renee David, a spokesman for Foreign Affairs and International Trade.

Canada will immediately eliminate 97% of tariffs on Peruvian exports; Peru will eliminate 94% of tariffs on Canadian exports. Both countries will continue to phase out tariffs entirely within a decade of the deal being implemented. The deal will, according to David, “lock in market access for Canadian investors and provide them with greater stability, transparency and protection for their investments.”

There will be obligations to ensure the free transfer of investment capital, protect against unlawful expropriation and provide for non-discriminatory treatment of Canadian investments. The agreement will not be made public until it’s presented to Canada’s Parliament, but those in the mining sector agree it will be good for business.

“Canadians are competing with Americans, Europeans, Australians to provide services and products to the Peruvian mining industry and, as such, would benefit from any tariff advantages that a free trade agreement would bring,” said Jon Baird, managing director of the Canadian Association of Mining Equipment and Services for Export. “Peru is a major mining country, so there’s great markets down there for Canadian products and services.”

Pierre Grafton, vice-president of sustainable development and public affairs at the Mining Association of Canada, said more cost-effective importation of capital equipment will be a key benefit. “It gives us a comparative advantage over other countries that don’t have such an agreement. The Peruvian economy doesn’t necessarily have all of the domestic supplies to build and operate new mines, so you have to import it. And the removal of tariffs on those imports is going to make a pretty important difference.”

The USA concluded negotiations on a free trade agreement with Peru in December 2005; it is expected to come into force on January 1, 2009. Canada has had a foreign investment protection and promotion agreement (FIPA) with Peru since November 14, 2006, which brought greater financial openness and security to investments in Peru.

John DeCooman, vice-president of finance and corporate development at exploration firm Candente Resource Corp., said the country already has few barriers. “It’s a fairly mining-friendly country, and it does what it can do to facilitate that. What’s demonstrated by that is the existing operations within the country, and the continued investment into the country from an exploration and development standpoint, versus other countries that are probably equally as endowed from a mineral potential standpoint, but that aren’t seeing the same kind of in-flow of dollars to the country. They have a government that’s in place today that, despite people’s original concerns about Garcia [Peru’s President Alan Garcia Perez] and his past practices, has continued to demonstrate good policies.”

Baird said the biggest problem his members face with doing business in Peru is language and culture, not trade barriers. The agreement will also have social stipulations dealing with labour and environmental standards. According to Baird, standards are already pretty good. “Some people think in developing countries standards are lower, but they’re not. Newly installed mines operate to standards, which are similar to those in developed countries.”

It will be Canada’s second free trade agreement with a South American country. Its first was with Chile in 1997. 

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“Demand for US coal will reach a new record in 2008 despite a lagging domestic economy,” National Mining Association (NMA) President & CEO Kraig R. Naasz said upon release of the NMA’s mid-year forecast for coal demand and production. “Throughout 2008, coal will continue to supply 50% of the electricity generated for America’s power grid. Coal exports are on the rise thanks to robust growth in overseas demand,” Naasz added. An estimated 72 Mt - 14 Mt more than projected in January-are expected to be exported in 2008. Total demand for US coal is expected to reach 1,105 Mt in 2008, surpassing the previous record established in 2006 when total demand (domestic consumption and exports) reached 1,090 Mt of coal. The projected demand will be met by expanded production in Western coal fields, with production from Eastern coal states remaining unchanged from January’s projections and imports declining somewhat to an estimated 29 Mt.

NMA’s forecast for coal is based on projections reported by the association’s member companies. The mid-year analysis was conducted to account for the potential impacts of a slowing U.S. economy and growing global demand for coal. “Our forecast reflects the powerful underlying conditions that continue to drive demand for US coal including its relative affordability, domestic abundance and reliability as a provider of electricity. Further, metallurgical coal remains a vital component of the infrastructure development that is underway in rapidly developing countries around the globe,” continued Naasz.

“Record demand for US coal is good news for the roughly 525,000 American’s who rely on coal for high-wage jobs and benefits in mining and with companies that make mining equipment and provide valuable services to US coal producers. At a time when so many consumers are concerned about their economic well-being and rising energy prices, coal remains a true American success story,” Naasz emphasised.

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A groundbreaking youth program in the remote communities of western South Australia is promising to become a model for resources companies wanting to genuinely connect with their Indigenous neighbours. That is the outcome already from the program in just its first few months of early work. An initiative of Adelaide-based energy company Beach Petroleum and Save the Children, the three-year program was launched late last year with a A$600,000 grant from Beach - representing one of the State’s largest single corporate expressions of assistance for resources-linked remote communities.

The program aims to provide practical ‘life skills’  for young people in Ceduna, Koonibba, Yalata and Oak Valley.

Organisers announced today that in just four months since the launch, program staff had already held an intensive series of meetings with elders and community groups in the four communities. These talks had successfully provided sufficient feedback to lay the groundwork for the development of a strategic Plan of Action to guide mentoring and educational activities for the first program in Yalata.

“Under the protocols of the sponsorship, we have been given sufficient time to go out and meet with different groups to gain a real presence in the four communities and - more importantly - to gain their trust and respect,” Save the Children’s Programs Manager, Ms Joan O’Connor, said. “We have hired a full-time Program Coordinator - based in Ceduna - and this full-time, on the ground presence is making a measurable and positive difference in the willingness of individuals and communities to participate.”

The newly appointed Program Coordinator, David Peedom, has long experience in negotiating and consulting with indigenous communities in Australia and overseas, bringing a level of confidence in the initial stages of work.

“Before now, I’ve been going out to Ceduna six or seven times a year to talk with local families and be advised of their needs. But having someone permanently there and accessible to the communities has been a major plus for us,” O’Connor said.

Save the Children has been involved in the Ceduna area for more than 20 years, through various youth health and nutrition programs, and a soon-to-be-launched parenting program. But O’Connor says the youth program may open the door to a whole new level of support - both in the communities of western South Australia, and further afield.

“This is, to my knowledge, the first time that a South Australian resources company has become involved in this kind of program at such a grassroots level,” she said. “It has really stirred the corporate community to do more on issues of social responsibility.”

Next month, Peedom and a small team will work with community representatives to develop a long-term Plan of Action for youth development in Yalata, which will also provide a model for the other three communities.

“Although this is initially a three-year program, we are laying the foundations for a concerted program of support over five to ten years and beyond,” O’Connor said.

Save the Children has already identified 10 young people with the potential to become mentors to specific groups within the community. These people will be the first beneficiaries of a new TAFE certificate designed to improve community-appropriate mentoring skills, leading eventually to other qualifications addressing specific education needs and practical skills for job-seeking and employment.

The program also proposes a number of innovative uses of sport, music and recreational activities as gateways for the mentoring process.

As a result, Save the Children’s efforts are attracting support from several State Government Departments, Families SA, the Indigenous Coordination Centre and the Far West Women’s Group.

“We are focused on the individual communities becoming an integral part of the decision-making process - as opposed to historically, just being told what to do,” O’Connor said.

The South Australian program is attracting wider audience, with Save the Children already being approached by a number of mining companies wishing to support indigenous communities in Western Australia, where the organisation conducts similar programs in the Kimberleys.

“This program is a new venture in SA, but we are winning strong support from the State Government and are very confident that it will generate more attention and support from a range of SA companies in the future,” said Ms Michele Leonard, Save the Children’s Australia Program General Manager. “Beach Petroleum’s commitment and ongoing backing is a bold step but demonstrates how a resources company can work together with local remote area communities to make a difference in the lives of people who don’t normally benefit from this kind of initiative. Such corporate vision is inspirational.”

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Australian coal plant engineering company Sedgman has made a strategic investment in clean coal technology company Exergen, which has developed a novel process for removing moisture and contaminants from brown coal. Sedgman’s Managing Director Peter Hay said the technology had been successfully trialled at a pilot facility at Beaconsfield in northeast Tasmania. “This technology has some very exciting applications, particularly in electricity generation, where the process has potential to cut carbon emissions by up to 40% when combined with new-technology power generation plants.”  
Of almost equal importance is that the moisture removed from the coal will supply up to 40% of the water required for power station cooling.

“Sedgman will also be involved in developing applications for the technology in other areas such as coal to liquids (CTL), coal gasification and in other energy mineral sectors,” Hay said. Exergen Director Martin Albrecht said he was pleased to welcome Sedgman aboard as a quality partner with unparalleled experience in the design, construction and operation of coal processing plants. “We believe Sedgman’s involvement will now enable us to unlock the full value of Exergen’s technology and move ahead from concept stage to commercialisation,” he said.

The proces involves the dewatering of brown coal using Continuous Hydrothermal Dewatering Technology, including wastewater treatment and emissions control.

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On May 2, 1983, Barrick Gold made its debut as a publicly traded company on the Toronto Stock Exchange. The stock began trading on May 2, 1983 at C$1.20 per share. An investment in Barrick of C$10,000 at that time was worth C$322,583 (CAD) on April 30, 2008. Between its listing on May 2, 1983 and December 31, 2007, market capitalisation on the TSX increased 329%; ounces of gold produced increased 2014%; and gold reserves (in thousands of ounces) increased 736%.

“We celebrate our 25th as the leader in the gold mining industry, with approximately 125 Moz of gold reserves and 51 Moz of Measured and Indicated resources, located on some of the most prolific gold belts in the world,” said Chairman, Founder and Acting CEO Peter Munk. “Today, Barrick’s competitive advantage is its strength, breadth and scale. The company has the combined financial muscle and more than 20,000 talented employees to execute its development plans for the future.”

Originally listed as Barrick Resources Corp under the symbol BRC, the company’s trading symbol on the TSX changed to ABX in December, 1983. By the end of 1984, Barrick’s first full year of operation, it had produced 34,078 oz of gold. In 2007, it produced 8.1 Moz of gold. Barrick now has the largest market capitalisation of any gold producer and is the 10th largest company on the TSX by market capitalisation.

“We started the business with a talented team that wasn’t afraid to dream big,” said Munk. “Today Barrick Gold is the world’s pre-eminent gold company, recognised for our ability to deliver on what we promise. Our values guide us. We have produced solid earnings through ethical business practices and a commitment to share the benefits of mining with the communities where we operate.”

Barrick says it is the industry leader in reserves, production, earnings, and has the deepest project pipeline. It has 27 operating mines and ten projects in progress, located on five continents. The company employs more than 20,000 people.

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