Forestry: Global lumber trade up
The worldwide market for lumber has increased 25% in the past two years, according to Wood Resource Quarterly.
The newsletter said last week the Middle East and Africa has seen a growing appetite for lumber in the construction sector, while lumber prices in the U.S. and Canada have climbed most of 2012 so far, reaching their highest levels since early 2011.
Still, B.C. lumber sector continues to struggle amid the aftermath of the pine beetle epidemic, safety issues in sawmills and a slow down in demand from China.
Mining: Coal shipments
Cardero Resource Corp. (TSX:CDU) has inked a 15-year agreement with Ridley Terminals in Prince Rupert to ensure capacity for coal shipments from the Vancouver company’s Carbon Creek project.
The agreement extends from January 1, 2014, to December 31, 2028, and would see Ridley receive as much as 900,000 tonnes of metallurgical coal from Cardero per year. The deal is subject to Ridley receiving federal approval for a fourth stacker that would increase its capacity. Carbon Creek is in northeast B.C., and Cardero has yet to make a final investment decision on the project.
Mining: Diamond plan
Vancouver’s Stornoway Diamond Corp. (TSX:SWY) has committed to spend $28.4 million to help develop its flagship Renard diamond project toward permitting and financing by the end of the year.
Renard is in north-central Quebec, and its initial mine life is projected to be 11 years.
Stornoway said construction has started on the Route 167 highway extension project to help serve the mine, and the company has also signed an impacts and benefits agreement with the Cree First Nations of the James Bay Region.
Energy: Alterra’s aboriginal agreement
Clean energy producer Alterra Power (TSX:AXY) has signed a key agreement with B.C.’s Klahoose First Nation to develop a 124-megawatt run-of-river hydroelectric project north of Powell River.
The agreement sets out the terms under which the project can proceed with the help of the local First Nations.
The Vancouver-based company already operates a 235-megawatt hydroelectric facility nearby and has secured a 40-year power purchase agreement with BC Hydro and environmental assessment certificate from the provincial government.
Mining: Prophecy’s new coal contract
Prophecy Coal (TSX:PCY) is looking to cash in on Mongolian buyers interested in coal from its Ulaan Ovoo mine in the landlocked Asian nation.
Last week, the Vancouver-based company signed a sales agreement with a local Mongolian iron- manufacturing plant for the sale of 22,100 tonnes of thermal coal from Ulaan Ovoo.
John Lee, Prophecy’s chairman and CEO, said the company is looking to decrease its operating costs, increase sales and make the mine cash flow positive without relying on Chinese and Russian export markets.
