Resource World Magazine

Resource World - June-July 2019 - Vol 17 Issue 4

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32 www.resourceworld.com J U N E / J U L Y 2 0 1 9 Speculations by Leonard Melman A new public concern has been growing like an avalanche and could be presenting a genuine threat to the well-being of the entire mining industry. I am referring to the public's obses - sion with fears relating to "Climate Change." Those concerns have escalated into world- wide panic regarding the consequences of man-made alterations to the world's climate which the United Nations claims will lead to unalterable damage to the Earth within 12 years and which will ultimately threaten life on our planet as we know it. Anyone who doubts that this is turning into a world-wide issue should consider that we now see children leaving their schools to march in the streets protesting this 'threat' to their futures. We are seeing Op-Ed and Letters sections of newspapers in the US, Canada, Western Europe and Australia/New Zealand filled with statements attesting to the validity of the change. We are seeing politicians already suggesting or even enact - ing legislation to reduce man's impact on the planet. There are growing protests such as a recent gathering of thousands of people in London (UK) blocking roads and bridges to denounce the "climate emergency." In short, huge segments of the popula - tion (voters) are vociferously demanding action – and politicians are listening. I believe the mining industry should be seriously concerned because many of the solutions being proffered could have impor - tant negative impacts on mining. One of the areas of law mentioned with great frequency is reducing the consump- tion of fossil-based fuels. For example, Montréal's municipal government just enacted a regulation where, "…Owners of existing commercial, industrial and resi- dential buildings with oil-burning furnaces will have until 2030 to convert to a renew- able energy source." Maine is acting to reverse a previously-enacted moratorium on new wind turbines. New York's Governor, Andrew Cuomo, recently declared that New York State should move to 100% renew - ables by 2040. And, perhaps more important than all other regulatory suggestions combined is the Green New Deal (GND) proposal which has been officially entered into the United States Congressional Record and is receiv - ing wide support. This document first lists the ominous climate developments which are now of utmost concern including rising sea levels; an increase in wildfires and severe storms; droughts; and other extreme weather events which now threaten human life, healthy communities and critical infrastructure. The GND document also notes that should Global Warming continue and reach an increase of above 2° C we can expect mass migrations, one-half trillion dollars annual loss of economic output in the US alone; rampant wildfires and other horrific events. According to the document, in order to fight these threats America must meet 100% of power demand through clean, renew - able, and zero-emission energy sources; upgrade all existing buildings in the US to achieve energy efficiency; remove pollution and greenhouse gas emissions from manu- facturing and industry; and legislate clean, affordable and accessible public transit and high-speed rail. One of the direct concerns that min- ing – and other industries – must address is the implied promise to eliminate all fos- sil fuels specifically including diesel fuel, gasoline and heating oil. It has been sug- gested that the impact of this measure alone would render many distant mining projects economically unworkable since diesel-gen- erated electric power would no longer be available. Many also use airplanes to fly in personnel and equipment and/or semi- trailer trucks on winter roads to transport heavy equipment to sites and also use heat - ing oil to keep Arctic projects warm and habitable. Also, if successful, most mining projects plan to use fossil-fuel transport to ship end products to markets. Concerns such as these – combined with relatively flat price performance in metals themselves over the past few years – are clearly having an effect on mining finance. First, the number of new mining compa - nies being listed on the TSX or Venture exchanges dropped sharply from 2017 to 2018 while we are also seeing a movement away from mining investment toward more opportunistic areas such as marijuana. Clearly, the mining industry must fight this barrage of one-sided propaganda with the available contrary evidence. For instance, we should inform the public that ocean levels are not inundating coastal cit - ies such as London, New York, Los Angeles, Vancouver, etc. The rate of melting of glaciers is now slowing down. Indeed, researchers at the University of Iceland say each of the country's largest glaciers will expand this year for the first time in 25 years. The number of hurricanes and other violent storms over the past decades is not increasing in an unusual manner. These statements are provable and must be publicized in order to present a more balanced picture to the public before the mining sector is harmed by the enactment of new laws and regulations which could further impede this industry. n This material is taken from sources believed to be reliable and is provided for information only. Any investment decision should be made only after prior consultation with investment professionals. Leonard Melman is a financial and political writer who focuses on issues relat - ing to the resource sector. Mr. Melman lives in Nanoose Bay, British Columbia, Canada and can be reached at lmelman@shaw.ca Climate change and mining

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