CALGARY -- Alberta's loss could be Saskatchewan's and British Columbia's gain if the two provinces keep their taxes and royalties intact while Alberta boosts its take.
Richard Neufeld, B.C.'s Energy Minister, Maynard Sonntag, Saskatchewan's Minister of Industry and Resources and Brad Wall, leader of the main opposition Saskatchewan Party, said Tuesday they're watching closely Alberta's fiery royalty debate.
Premier Ed Stelmach will outline Wednesday night in a television address the highlights of a new royalty deal, expected to involve a large increase in government take from oilsands projects and moderate increases from the conventional business. Details of the strategy will be made public Thursday after markets close.
Several large energy companies have threatened to reduce their spending in Alberta and boost their programs in Saskatchewan and B.C. if they feel Alberta goes too far.
Mr. Sonntag said if Saskatchewan re-elects an NDP government it will continue to promote energy investment and not boost its royalties and taxes to keep up with any changes in Alberta.
"We have worked extremely hard in our province to strike the right balance," he said. "We think we have achieved that now. We are certainly not looking to change anything."
Brad Wall, leader of the business-friendly Saskatchewan Party, said he'll strive to make his province competitive and where possible the most competitive jurisdiction in investment in all sectors of the economy.
"Should we form the government, we want to have as competitive an economic and investment environment as we possibly can have," Mr. Wall said. "We see significant potential for further development of our oil and gas sector, to the extent that we are able to keep a competitive edge with respect to other jurisdictions, we want to be in a position to do that to attract investment."
Saskatchewan's oil-prone industry is booming as producers step up programs in big plays like the Bakken to cash in from soaring crude prices. Activity has slumped in natural-gas prone Alberta and British Columbia because gas prices have been weak. Saskatchewan is also enjoying a surge in activity from the recent discovery of oilsands deposits across the border from the Fort McMurray-centred Athabasca basin.
Fiscal terms for the oil and gas sector in the three Western provinces are either competitive or slightly more advantageous in B.C. and Saskatchewan, where governments have tried to lure more energy activity.
Mr. Neufeld said B.C. reviews royalties on a regular basis and will watch Alberta's strategy before deciding what to do. Still, the province wants to promote continued investment and its residents welcome industry activity, focused in the province's Northeast.
"Most people understand that it is a huge provider of monetary resources to fund health care and education across the province," he said. "Are we going to take advantage of [Alberta's new policy]? No. What we need to do is make sure that our royalties are set, and our programs are set, to encourage the things, the goals that we have in the province of B.C."
Neither province has seen demands from its population to increase their share of oil and gas revenue, the politicians said.
"The industry is welcome here," Mr. Sonntag said.
Financial Post
ccattaneo@nationalpost.com ----
Kemess North not dead yet - (by the 666evilz bolshovikz polo-ticz?) -
By Thom Barker Black Press
Oct 12 2007
A partisan mining crowd broke into spontaneous applause as Harold Bent, Northgate Minerals’ environmental manager, outlined his concern that a recent panel decision could have far-reaching implications for the B.C. industry.
Bent told Kevin Krueger, B.C. minister of state for mining, and the 80 industry delegates gathered at the Smithers Golf and Country Club on Thursday, that the panel’s recommendation not to approve his company’s Kemess North project has weakened confidence in B.C. mining.
“I just wanted to hear from the minister that the government is going to take a very serious look at [the panel’s] report,” Bent said, adding that, overall, the report was favourable to the company.
Krueger assured Bent and the rest of the audience the Northgate saga is not over.
“I’m concerned as well, but it is a process,” he said.
“It isn’t something ministers interfere with, the Environmental Assessment Office has its mandate and it has its authority.”
He encouraged people to be patient as the project goes through that process.
The minister also addressed concerns that the decision could set a precedent that effectively gives First Nations veto power over resource projects.
“I don’t think people should say that because it isn’t true and I think it’s destructive to say that,” Krueger said.
“I think it’s incumbent on all of us to work together,” he said, citing Galore Creek and Ruby Creek as shining examples of industry and First Nations collaboration.
Despite the preponderance of discussion surrounding Kemess, the meeting was positive overall. Krueger described a situation that can only be characterized as a massive boom.
“It is a phenomenal increase,” he said.
“We have 25 of the 52 major projects that are seeking approval across Canada right here in British Columbia.
He added that his staff is working on 30 different mines with eight more in the pre-approval phase and talked about an unprecedented investment in exploration of $265 million last year.
“This year, I’m certain we’re going to go over $300 million,” he said.
He cited a Price Waterhouse Cooper report that the B.C. mining industry is paying an average salary of almost $100,000 per year.
“Most people are pretty excited about that, especially in the area that’s been devestated by the mountain pine beetle,” he said.
Cress Farrow, Regional District of Bulkley-Nechako chair, was encouraged by Krueger’s comments regarding the Geoscience B.C. Quest project. Geoscience B.C. is an industry organization that has been conducting geophysical and geochemical surveys with government support through the Prince George area from Williams Lake to Mackenzie.
Farrow questioned Krueger as to whether the RDBN could expect funding that would extend the exploration work west to mitigate the impact of the pine beetle.
“I’m very optimistic, Farrow said.
“The money will be there.”
Peter Ogryzlo, senior geologist for Huckleberry Mines and a founding member of the Smithers Exploration Group, asked the minister for help with a rather unique issue.
“The biggest, single barrier we have found to employing more [miners] is the lack of a drivers licence, particularly among First Nations youth,” he said.
Krueger said he had not encountered that problem before, but would take it up with his colleagues.
The minister admitted that and other workforce challenges will require some innovative solutions, but said it’s a good problem to have.
This is a very good move to boost production to 430.000 oz/year at a cash cost of just $184/oz.
Annual cash flows will be about $250 million/year and will increase when Davidson adds 175,000 oz/year in 2010.
No debt and still over $140 million in cash, after this acquisition.
Annual cash flow will be about $0.90 per share in 2008, implying a fair value of about $9 per share at a conservative 10 times cash flow.
Worth investing for......
Too bad this truly Native Canadian Kid has to take a fair chunk of it's considerable cash... along with the potential employment riding with that cash, driven out of the country..
Such is the risk of a meddlesome bolshevikz bureaucracyz, with too much time and taxpayer fiatz-money in it's hands only think about their own goldenz pensionz umbrellaz, IMO.
Onward to Australia we GO, mates!
We are one of the few golds up this morning as the product tests former heights!
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