Red Dog Mine, in hunt for more ore, proposes new road
Nat Hertz, Alaska’s Energy Desk, October 2, 2018
One of Alaska’s largest mines is moving toward a significant expansion, applying for state and federal permits to build a 10-mile road to a pair of new prospects in a remote part of Northwest Alaska. The 30-year-old Red Dog Mine has generated profits for its operator, Canadian mining company Teck. Teck, in turn, pays hundreds of millions of dollars in yearly royalties to the Alaska Native regional corporation, NANA, that owns the land where the mine sits. It also hires hundreds of NANA shareholders. But without a new source of zinc and lead, the money and jobs could disappear in less than 15 years, when Red Dog is expected to run out of ore. Teck’s planned road leads to a pair of new prospects, Anarraaq and Aktigiruq, that could extend the mine’s lifespan.
Our Take: Great news for Red Dog, NANA, NANA shareholders and Alaska! Build the road!
LNG Canada Partners Announce Long-Awaited Final Decision
Irina Slav, OilPrice, October 2nd, 2018
The five companies behind the US$31 billion (C$40 billion) LNG Canada project have made a final investment decision on the project, they said in a press release, ending months of uncertainty and worry that the large-scale project could become the second failed LNG initiative in British Columbia. LNG Canada will be the first liquefied natural gas production and export facility in the country, and according to federal PM Justin Trudeau, it “is the single largest private sector investment project in Canadian history.” LNG Canada is a project of Shell, with a 40-percent stake, Malaysia’s Petronas with 25 percent, PetroChina with 15 percent, Mitsubishi with 15 percent, and South Korea’s Kogas with 5 percent.
BC FIRST NATIONS SEE BIG BENEFITS FROM LNG CANADA FID
Dale Lunan, Natural Gas News, October 2, 2018
After lean years, Big Oil is under pressure to spend
Ron Bousso, Reuters, October 2, 2018
Executives at the world’s biggest oil and gas companies are under growing pressure to loosen the purse strings to replenish reserves, halt output declines and take advantage of a crude price rally after years of austerity. With oil at a four-year high of $85 a barrel, exploration departments are urging company boards to drill more, wages are creeping higher, service companies say rates will have to rise and some investors say Big Oil must start growing again soon. For the heads of companies such as BP (BP.L), Chevron (CVX.N) and Royal Dutch Shell (RDSa.AS) who have pledged to stick to lower spending after slashing budgets by as much as 50 percent since 2014, the pressure may become hard to resist.