POTASH - BILLITON - Janzen

[Oscar]

BHP BILLITON: SK Potash not the only goal...

Backgrounder on BHP Billiton - from BHP Billiton Watch

http://www.bhpbillitonwatch.wordpress.com

Please circulate

They are big, powerful and determined to get what they want. This is just an example of what they are doing throughout the world. They also got Kevin Rudd former PM of Australia dumped because he tried to get more royalties for the people of Australia.

More case profiles of what they are doing globally can be found at
http://www.bhpbillitonwatch.wordpress.com

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NW Territories: Ekati Diamond Mine profile

[ http://bhpbillitonwatch.wordpress.com/2 ... e-profile/ ]

October 21, 2009 in Canada, Environment, Food Security, Indigenous Peoples, Labor, Sensitive Ecosystems

The Ekati Diamond Mine, owned and operated by BHP Billiton, is located 350 kilometres north of the city of Yellowknife in Canada’s Northwest Territories. Construction began on the mine in 1996 with operations at the open and underground pits beginning two years later. This remote site is accessible by air and seasonally by a 475 kilometre ice road. With the implementation of a multi-stakeholder “Independent Environmental Monitoring Agency” (funded by BHP Billiton) and community monitoring programmes that involve affected communities of Indigenous Peoples, Ekati is one of the most closely monitored mine sites in Canada and has been upheld as a working model of corporate social responsibility (CSR). However, as demonstrated by testimonials from affected peoples and ecological indicators, this large scale mine appears to have had highly concerning social, micro-economic, cultural and ecological impacts.

Initially, BHP Billiton negotiated impact-benefit agreements with four affected communities of Indigenous Peoples: the Kitikmeot Inuit Association, the Dogrib Treaty 11 Council, the Akaitcho Treaty 8 Council, and the North Slave Metis Alliance. However, these agreements were made on a tight time frame and Aboriginal negotiators reported feeling pressured, overwhelmed, ill-informed and confused about the process. This disadvantageous negotiation position has been of ongoing concern during not only the expansion process of the mine, but also currently in the planning phases for mine closure and land reclamation. Barriers to the full participation of Indigenous community negotiators include inequitable positioning in terms of access to resources, technical expertise and time, as well as divisions between indigenous and non-indigenous understandings of the land.

Few financial benefits from the mine remain within the communities, as local royalty earnings add up to less than 1% of the mine’s annual profit. First Nations communities also raise the concern that they are generally not considered for higher paying technical positions that require training and educational backgrounds to which they have had little access. Instead, they are generally concentrated in lower income jobs such as truck driving. With housing prices skyrocketing due to the mining-based economy, this income disparity has disastrous social impacts. Meanwhile, the rotation of fly-in/fly-out short term work shifts has reportedly created social and family instability amongst workers and contributed to an increasing rate of drug and alcohol abuse. Though Ekati workers are unionized, they have faced stiff opposition from BHP Billiton during negotiations of collective agreements. In the past, workers have had to go on strike in order to win minimal concessions.

Significantly, Ekati is located in an environmentally fragile zone, and impacts on the wildlife populations—including caribou, wolverine, bears, ptarmigan and fish—and the land, have been noted by elders of the Indigenous communities. For instance, decreases in the caribou population, grizzly bear population and fish diversity have been observed, and are understood as a likely consequence of mine blasting operations and surface water drainage in the region. Furthermore, residents of the region can no longer hunt in traditional grounds, as wildlife migration patterns—particularly those of the caribou—have shifted. Not only are the animals integral to a sustainable ecosystem balance, but they also are an important basis of physical and cultural survival for Indigenous communities.

Meanwhile, accidental spills and seepage of tailings as well as sewage from the site, acid mine drainage, increases in uranium and aluminium residue in the air, and elevated levels of dissolved solids, potassium, ammonia, nitrates and molybdenum in local water bodies have kept local people on alert. Though cumulative impacts are unknown, water and air contamination are also of concern to communities located downstream (and downwind) from Ekati. At the current time, waste rock and tailings are being stored under permafrost barriers, rock ice caps and frozen core dams. However, given the evidence that global warming trends appear to be already impacting northern expanses of tundra, local Indigenous communities have raised the issue that there is no mitigation plan in place to deal with the impacts of the thawing ground. With the prospects of the future uncertain, those advocating for healthy communities—and the recognition of the fragile web of life upon which we all base our survival—continue to struggle to have their perspectives heard.

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Billiton – more is never enough!
From: Elaine Hughes
To: CBC Morning Edition
Sent: Tuesday, August 17, 2010 8:18 AM
Subject: Billiton – more is never enough!

Good morning

Amidst all the breathless excitement about the money, we can be assured that Billiton will muscle its way to being the only game in town - today, it's Potash Corp; tomorrow, it will be Potash One - more is never enough.

We can kiss the whole industry good bye - forget all the rhetoric.

Meanwhile, Billiton continues developing its Jansen potash mine plans, including how to meet its voracious demand for millions of gallons of water by laying 50 miles of pipe from the Zelma reservoir to the mine site besides targeting the nearby aquifers to supplement their access to water.

It won't take long for central Saskatchewan residents to notice the drop in the water levels in their wells and local water supplies - in every direction for many miles around.

...which they'll be able to supplement . . . how????

Elaine Hughes
Archerwill, SK

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BHP Billiton – Safety Track Record

Sent: Tuesday, July 13, 2010 9:31 AM
Subject: BHP Billiton - Safety Track Record

BHP Billiton – Safety Track Record

Should Saskatchewan be concerned about this company’s safety track record?

Elaine Hughes
Archerwill, SK

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BHP Billiton to develop Sask. potash mine

[ http://www.cbc.ca/money/story/2010/01/2 ... -1001.html ]

Last Updated: Wednesday, January 20, 2010 | 4:43 PM ET
The Canadian Press

Anglo-Australian mining giant BHP Billiton is preparing to make its first foray into potash production by earmarking $240 million US for the development of its Jansen project in Saskatchewan.

MORE:

[ http://www.cbc.ca/money/story/2010/01/2 ... -1001.html ]

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BHP Billiton - Olympic Dam, Roxby Downs (South Australia)

[ http://www.wise-uranium.org/umopauod.html ]

General issues (Links on website above. Ed.)
Olympic Dam expansion project
License violations at Olympic Dam
> View deposit info
> View PIRSA announcements

General issues

Workers exposed to unsafe levels of radiation at Olympic Dam mine: whistleblower

Workers at BHP Billiton's Olympic Dam are being exposed to unsafe levels of radiation, according to a company whistleblower. BHP Billiton has been warned about the risks at Roxby Downs, but according to South Australian Upper House Greens MP Mark Parnell the company has failed to take action. Mr Parnell says the levels of polonium-210, the toxic by-product of uranium production, have breached health standards. The whistleblower produced documents that show BHP uses manipulated averages and distorted sampling to ensure the figures are below the maximum exposure levels set by government, he said. (Sydney Morning Herald June 4, 2010)

MORE: [ http://www.wise-uranium.org/umopauod.html ]

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Issues at Operating Uranium Mines and Mills - Olympic Dam, Australia

[ http://www.wise-uranium.org/umopauod.html#OLYMPICD ]

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ALERT: Open Houses - SK Jansen Potash Project

From: Elaine Hughes
To: Toxic Nation ; Sask Environmental Society ; Sask EcoNetwork
Sent: Thursday, April 15, 2010 12:55 PM
Subject: ALERT: Open Houses - Jansen Potash Project

Please.....distribute this information to your contacts in the affected areas....

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NOTICE OF PUBLIC OPEN HOUSES

Jansen Potash Project -

[ http://www2.mpmo-bggp.gc.ca/MPTracker/p ... px?pid=103 ]

BHP Billiton Diamonds Inc.'s Jansen Potash Mine project is a proposed 8.0-million-tonnes/year underground potash mine located 140 km east of Saskatoon, Saskatchewan, with an expected mine life of 50+ years. The proposal also includes a processing plant, tailings management area and associated infrastructure, including on-site roads and rail.

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BHP Billiton holds over 7,338 square kilometres of highly prospective exploration permits in Saskatchewan. Now in the Selection Phase of development, the Jansen Project is the most advanced. BHP Billiton is also pursuing opportunities for potash development in the Boulder and Young areas.

[ http://www.bhpbilliton.com/bbContentRep ... Issue5.pdf ]

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Jansen Potash Project – Project #0927-001-12-01.

Submittetd to Saskatchewan Ministry of Environment, November 2008: (100 MB)

[ http://www.bhpbilliton.com/bbContentRep ... oposal.pdf ]

Project Description: Page 52

Tailings area: 1740 hectares (4,297.8 acres)
Height of Tailings Pile: 40 meters
Water consumption/year (m3): 7,360,000
Start of construction: July 2011
Start of Production: January 2015

For further information:
Please visit the company website:

[ http://www.bhpbilliton.com/bb/ourBusine ... opment.jsp ]

Or contact Serge Pelletier at: serge.j.pelletier@bhpbilliton.com
Tel: 1-306-657-8410

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ADDITIONAL INFO:

BHP Billiton to spend US$240M on Jansen potash mine in Saskatchewan

[ http://ca.news.finance.yahoo.com/s/2001 ... hewan.html ]

Wed Jan 20, 3:56 PM Lauren Krugel, The Canadian Press
By Lauren Krugel, The Canadian Press

CALGARY - Anglo-Australian mining giant BHP Billiton (ASX: BHP.AX) is preparing to make its first foray into potash production by earmarking US$240 million for the development of its Jansen project in Saskatchewan.
The company said Wednesday the cash layout will pay for the initial stages of construction at the mine, about 140 kilometres east of Saskatoon.
"The Jansen project is the first phase of what we expect to be our strong presence in the potash sector," Graham Kerr, president of the company's BHP Billiton Diamonds & Specialty Products division, said in a statement.
BHP Billiton will continue to pursue other potash opportunities that fit with its portfolio, including its Boulder and Young potash holdings in Saskatchewan.
The Prairie province is the world's largest producer of the mineral, used primarily to fertilize crops.
Jansen is expected to produce about eight million tonnes a year of agricultural-grade potash. It plans to sink the first mine shafts once engineering and permitting are completed about mid-2011.

MORE:
[ http://ca.news.finance.yahoo.com/s/2001 ... hewan.html ]

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Potash Mining - Mining Watch Canada

[ http://www.miningwatch.ca/en/home/issue/potash ]

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Environmental Aspects of Phosphate and Potash Mining

[ http://www.miningwatch.ca/sites/miningw ... mining.pdf ]

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Thai Opposition to Potash Mine Becomes Community-Wide Fight

[ http://towardfreedom.com/home/content/view/1463/65/ ]

Written by Tanya Roberts-Davis Tuesday, 18 November 2008
Source: The Dominion
Entering the North-Eastern Thai village of Ban Nonsomboon, one could be fooled by the appearance of rural tranquility: Children, parents and elders chat amongst themselves, relaxing in hammocks and sharing baskets of freshly cooked sticky rice.
It doesn't take long, however, to notice the banners, stickers and posters throughout the community declaring, “No to Potash Mining!” Green flags signifying a commitment to a toxic-chemical-free zone wave in the breeze.
In the midst of this fertile farmland a struggle is brewing. The community is fighting for the preservation of the land they depend on to live, and the fight has a strong Canadian connection.

MORE: [ http://towardfreedom.com/home/content/view/1463/65/ ]

[Oscar]

Potash Corp rejects unsolicited US$38.6 billion bid from BHP Billiton

http://www.canadianbusiness.com/markets/headline_news/
article.jsp?content=b4231650

By: The Canadian Press The Canadian Press - ONLINE EDITION
Posted: 17/08/2010 5:18 AM | Last Modified: 17/08/2010 9:05 AM
SASKATOON - The board of directors of Potash Corporation of Saskatchewan Inc. (TSX:POT) has unanimously rejected a US$38.6-billion unsolicited takeover bid from BHP Billiton Ltd., the world's largest mining company.
PotashCorp says the board thoroughly reviewed an offer of US$130 per share in cash from the Anglo-Australian company and found it to be "grossly inadequate" and not in the best interests of its shareholders.
PotashCorp’s closing stock price on Monday of C$117.23 on the Toronto Stock Exchange and US$112.15 on the New York Stock Exchange.
But the company's chairman said the board of directors believes the offer "substantially undervalues PotashCorp."
"We believe it is critical for our shareholders to be aware of this aggressive attempt to acquire their company for significantly less than its intrinsic value," said PotashCorp chairman Dallas J. Howe in a release.
Potash Corporation of Saskatchewan, the world’s largest fertilizer enterprise, said it has also adopted a shareholder rights plan so that it has "sufficient time to explore and develop alternatives to enhance shareholder value, including competing transactions that might emerge."
BHP Billiton (NYSE:BHP) has been expanding its presence in Saskatchewan's potash hub buying up several smaller names in the business, including Athabasca Potash Inc. (TSX:API) earlier this year.
The company, with a market capitalization of about US$200 billion, is a diversified global enterprise with headquarters in Melbourne, Australia.
It issued a brief statement acknowledging that it had approached PotashCorp with an offer of US$130 per common share but provided no other details.
"BHP Billiton continues to review its options and will make a further announcement in due course," the BHP statement said.

MORE: http://www.canadianbusiness.com/markets/headline_news/
article.jsp?content=b4231650

[Oscar]

Former Sask. premier says foreign investment may not be bad for PotashCorp

http://www.winnipegfreepress.com/business/breakingnews/
former-sask-premier-says-foreign-investment-may-not-be-bad-for-potashcorp-101235104.html

By: The Canadian Press The Canadian Press - ONLINE EDITION

Posted: 21/08/2010 7:02 PM |

REGINA - The former Progressive Conservative premier of Saskatchewan who oversaw the privatization of PotashCorp over 20 years ago says foreign investment may not be such a bad thing.

Grant Devine says Mosaic, another potash company, recently announced it would be a major tenant in a new 20-storey office tower in downtown Regina and that it would be hiring an additional 60 employees.

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Federal NDP Leader Jack Layton has called on Ottawa to conduct a comprehensive review before allowing a foreign takeover of Saskatchewan-based PotashCorp by Australian mining giant BHP Billiton.

Devine notes foreign companies like Mosaic are building and investing more in Saskatchewan.

Layton says the US$38.6-billion hostile takeover bid of PotashCorp by BHP Billiton must be stopped if it's shown it won't benefit Canadians.

Potash said its board of directors is reviewing the BHP offer, formally filed on Friday. But the company has unequivocally dismissed the US$130-per-share bid as too low. In the meantime shareholders have been advised not to take any action.

Layton says he wants to avoid a repeat of a labour dispute that erupted last year between Brazilian miner Vale Inco and its Canadian unionized workforce.

(CJME)

[Oscar]

Selling Potash Corp, greed and market fundamentalism

http://dennisgruending.ca/pulpitandpolitics/2010/08/29/
potash-corp-greed-market-fundamentalism/#more-250

By Dennis Gruending

The Potash Corporation of Saskatchewan is poised for sale to the highest bidder, and shareholders, not to mention company executives, stand to stuff their pockets from a deal when and if it occurs. The company has spurned as inadequate an offer of $38.6-billion (U.S.) from an Australian-based giant called BHP Billiton and has also been in talks with other companies, including two from China. The great and tragic irony for the people of Saskatchewan is that in 1989 a provincial government sold Crown-owned PCS for $630 million, a minute fraction of what it may sell for now. It’s like selling your house and having the new owner flip it for 60 times the price. What has this to do with a blog called Pulpit and Politics? Let’s start with the morality of greed, market fundamentalism, and the common good.

I was a young journalist with a ringside seat in Saskatchewan in 1975 when a government led by Premier Allan Blakeney took over half of the potash industry. I later wrote a biography of Blakeney called Promises to Keep and the potash story is told in that book. Potash (potassium chloride) is used as a component in farm fertilizers, which are in growing demand, notably in China and India, countries that have enormous populations to feed. Saskatchewan has the largest potash deposits in the world.

Multinationals on strike

By 1975 the multinationals that had been allowed to mine the resource were on strike against the province. They were in court saying that Saskatchewan’s royalty rates were unconstitutional and they also decided to stop paying their taxes. The companies were miffed when Blakeney, who came to power in 1971, insisted that the existing low royalty rates must be raised. He believed that the resource belonged to the people of province and that revenue generated from higher potash royalties could be used to pay for prescription drug, children’s dental, seniors’ and other programs. Blakeney had established a number of new Crown Corporations and he wanted them to become involved in joint ventures with private industry in oil, potash and uranium. That would give the province more influence over the pace and conditions of development and a bigger piece of the profit from each resource. Blakeney also believed that having resource company head offices in Saskatchewan would provide quality and well paying jobs that would give the province’s young workers and graduates a reason build to lives at home rather than leaving for greener pastures elsewhere.

The legislation introduced in 1975 gave the government the power to purchase and, if necessary, to expropriate potash mines. By 1978, the province had purchased three mines and had a share in a fourth. The industry lawsuits were dropped and PCS was on its way to becoming a successful mining company, which co-operated with private sector companies in an offshore marketing cooperative that exists to this day. David Dombowsky, the first PCS president, was plucked from Blakeney’s civil service and paid an upper end civil servants’ salary, likely less than $200,000 a year.

Privatizing potash

Blakeney’s government was defeated in 1982 and by 1989 a Conservative administration had privatized much of PCS. Erin Weir, a Saskatchewan native who is now an economist for the United Steelworkers in Toronto, says the potash privatization “was the worst fiscal decision in the province’s history.” The government’s public share offering earned $630 million, an artificially low price driven by ideology and cronyism and abetted by incompetence. The government and its supporters in the mining industry, not to mention the brokerage houses and law firms who made millions in preparing the privatization share offerings, argued that governments have no place in business, that a Crown corporation would lack the capital to expand the industry, and that private enterprise was inherently more efficient than a government owned company. These arguments have become ubiquitous since the 1980s and their constant repetition constitutes the mantra of market fundamentalism.

Economist Weir points out that mines owned by PCS 1989 still account for 80 per cent of the privatized company’s potash production and capacity. “Depending upon which assumptions one accepts, the costs of privatization exceeded the benefits by between $18 billion and $36 billion. In other words, the Saskatchewan government gave up between $17,000 and $35,000 for every man, woman and child in the province.”

PCS, privately-owned, continues to mine and sell potash and its head office nominally remains in Saskatoon, but anyone close to the industry will tell you that the nerve centre of the operation is now in Chicago. The majority of PCS shareholders do not reside in Canada. While they will profit handsomely from a sale price in the range of $40 billion, there is rarely a word about how the sale would benefit the people of Saskatchewan. As Globe and Mail columnist Jeffrey Simpson writes, “the only debate seems to be about price.” In the minds of shareholders and most of the media, self-interest is considered to be synonymous with public interest, assuming the latter concept is even considered. In effect, there is no common good.

Corporate citizens

The Globe and Mail newspaper reports that, depending on the PCS sale price, Chicago-based CEO William Doyle, stands to gain between $400 and $700 million from his salary, severance and pension plans, as well cashing in on his stock options in the company. That’s a long way from the civil servant’s salary paid to the first CEO of the Crown corporation.

The chairman of BHP, which made the $38.6 billion offer, has made the usual noises about being a good corporate citizen in Saskatchewan and Canada, and keeping jobs and the head office in the province. Similar promises have been made by a myriad of other companies, including U.S. Steel, which promised to keep jobs in this country after a takeover but promptly closed Canadian mills. The Saskatchewan and Canadian governments have said little. The Saskatchewan Securities Commission will look at any offer that is made but appears under-resourced for so massive an undertaking. Columnist Simpson says the federal government, “goes through the motions” of reviewing any such takeovers and applying to them a “net benefit” test – but Ottawa never stops a takeover. Canada has lost Algoma Steel, Falconbridge, Dofasco, Hudson’s Bay Company and others, all in the name of allowing private enterprise to flourish. Ironically, if BHP doesn’t buy PCS the company may fall to the Chinese – and both of the suitor companies are government owned. The Chinese would love to control the pricing and production of potash, a resource that they covet. BHP, for its part, has troubled relations with unions and Aboriginals in project locations and a spotty environmental record — in Papua New Guinea, South Africa and Northern Canada.

Collective purposeAcclaimed historian Tony Judt (recently deceased) wrote that: “Something is profoundly wrong with the way we live today. For thirty years we have made a virtue of the pursuit of material self-interest: indeed, this very pursuit now constitutes whatever remains of our sense of collective purpose.” A similar observation might well be applied to potash and other takeovers.

[Oscar]

LETTER: KOSSICK: BHP Billiton's Social Accountability (with permission. Ed.)

From: Don Kossick
Sent: Tuesday, August 31, 2010 11:06 AM

Dear Editor, (Star Phoenix, Regina Leader Post)

As we witness the BHP Billiton attempt to take over the PotashCorp of Saskatchewan it would be instructive for all of us to look at BHP Billiton's record as a good global corporate citizen, and their adherence to social accountability.

The information is rather alarming.

BHP Billiton Watch has tracked BHP Billiton activities throughout the world. They have reported for example that in Papua New Guinea BHP ran the OK Tedi Copper and Gold Mine. They dumped waste directly into the OK Tedi and Fly River systems. It has been the centre of international controversy since the 1990's, and the people of the area are still fighting for compensation because of the destruction of their food and water resources.

The EKATI Diamond Mine in Canada is owned and operated by BHP Billiton 350 miles north of Yellow Knife. It was supposed to have negotiated impact-benefit agreements with four affected communities of aboriginal people. The communities involved in the negotiations point out that they were pressured, overwhelmed, ill informed and confused about the process. This disadvantageous negotiating position has been an ongoing concern not only in the expansion period of the the mine, but currently in the planning process for mine closure and land reclamation. It is also reported that few financial benefits from the mine remain with communities as local royalties added up to less than 1 per cent of the mine profit.

Another example is in South Africa where the BHP Billiton's office is the site of protests by labour, community, health and environmental groups. They have nominated BHP Billiton as amongst the most consistent corporations committing environmental injustices in the country - particularly in neglecting the health and safety of workers. Workers at their subsidiary Samancor Manganese have consistently reported that the health and safety risks of handling manganese is not readily available to them. In 1999, tests carried out on Samancor workers found them suffering from manganese poisoning, neurological disorders, paralysis of limbs and kidney failures.

This raises the question of where is the watchdog on how a company such as BHP Billiton understands and carries out its social accountability to the health and safety of workers, to the environment, to the communities affected by its operations in terms of jobs and royalties that are littel more than a pittance of the wealth being taken out. Those are the questions that should be put to the federal and provincial government on the takeover bid by BHP Billiton. PotashCorp and all the potash mining industry in Saskatchewan should be subject to the same scrutiny.

Maybe in this social accountability process people of Saskatchewan can start to reassert their rights as the fundmental owners of the potash resource which will continue to yield great wealth for generations to come.

Sincerely,

Don Kossick
111 Albert Ave.
Saskatoon, Saskatchewan S7N 1E6
306 665 6185

[Oscar]

INDEPENDENT REVIEW OF POTASH RESOURCES UNDERWAY

http://www.gov.sk.ca/
news?newsId=3d648a8d-3e6b-4631-807a-0769f10bc65a

News Release - September 2, 2010

Energy and Resources Minister Bill Boyd today announced that The Conference Board of Canada will conduct an independent analysis of a proposed takeover of Potash Corp.

"No matter who owns the potash mines, the people of Saskatchewan own the potash," Boyd said. "It is our job as government to protect the best interests of Saskatchewan people and to be sure the province and Saskatchewan residents receive the maximum benefit from this valuable resource."

The Conference Board will provide a report identifying the risks and opportunities this development presents. The report will include an assessment of what governments can do to lower risk and increase opportunities.

The report will be completed and made public by September 30, 2010 and will be used as the basis for Saskatchewan's submissions to Industry Canada, the agency responsible for analyzing transactions under the Investment Canada Act.

The Conference Board is widely regarded as Canada's foremost independent, not-for-profit applied research organization. The organization's mission is to build leadership capacity for a better Canada by creating and sharing insights on economic trends, public policy and organizational performance. -30-

For more information, contact:
Bob Ellis, Energy and Resources
Regina
Phone: (306) 787-1691
Email: robert.ellis@gov.sk.ca


(629) Terms of Reference (pdf.):

http://www.gov.sk.ca/adx/aspx/
adxGetMedia.aspx?mediaId=1214&PN=Shared

[Oscar]

Give Saskatchewan residents a voice in potash future, says Lingenfelter

http://www.thestarphoenix.com/news/
Give+Saskatchewan+residents+voice+potash+future+says+Lingenfelter/3495915/story.html?cid=megadrop_story

By Cassandra Kyle, The StarPhoenix September 8, 2010

The people of Saskatchewan must have input into the creation of a serious plan for the province’s potash reserves, Saskatchewan NDP leader Dwain Lingenfelter said Wednesday.

Flanked by unionized potash workers and fellow NDP MLAs, Lingenfelter called for the launch of public hearings into the issue of potash control that has arisen in the province since BHP Billiton made a $38.6-billion US bid for Potash Corp. of Saskatchewan Inc. in August.

Saying Brad Wall’s Saskatchewan Party government has shown weak, indecisive leadership and contradictory positions regarding the province’s potash wealth, Lingenfelter also called for an immediate recall of the Saskatchewan Legislature for a special session to set out the terms for future potash sales, mining and development.

Additionally, the NDP leader wants the Wall government to demand Prime Minister Stephen Harper and the federal government commit publicly to refuse the approval of any PotashCorp takeover until the people of Saskatchewan have had their voices heard on the issue.

MORE:
http://www.thestarphoenix.com/news/
Give+Saskatchewan+residents+voice+potash+future+says+Lingenfelter/3495915/story.html?cid=megadrop_story

[Oscar]

BHP Billiton ‘has no intention of becoming incorporated’ in Saskatchewan: SREDA; company says tax abatement request an ‘administrative error’

http://owlsandroosters.blogspot.com/

Wednesday, September 01, 2010

[Documents at: http://owlsandroosters.blogspot.com/ ]

BHP Billiton is in the midst of a dramatic US$38.6 billion hostile takeover bid for the world’s largest fertilizer producer, Potash Corporation of Saskatchewan.
The world’s largest mining company, on August 25, 2010, reported earnings of $12.72 billion for the fiscal year ended June 30, more than double the $5.88 billion earned in the previous year.
BHP’s revenue increased 5.2% to $52.8 billion from $50.21 billion. The company’s cash position also improved, swelling 15% to $12.46 billion from last year’s $10.83 billion, in spite of $9.8 billion in capital investment and debt reduction, the Wall Street Journal reported. [BHP vows restraint in its bid for Potash (Wall Street Journal, August 26, 2010)]
Despite the staggering riches, the Australian-based mining giant sought a five-year tax holiday from the City of Saskatoon for its new office space located in the downtown core.
City council was set to consider the matter on July 21, 2010. However, just prior to the meeting, representatives from BHP approached corporate services general manager Marlys Bilanski and asked that the request for tax abatement be withdrawn.
“They indicated that there was some confusion when the application was initially made and it was not their intent to request an abatement,” the city said in an email response to a query. There was nothing in writing, only the verbal request.
Gordon Graham, the company’s project director for potash development, elaborated further in an email on August 30, 2010: “The essence of the situation is there was an administrative error made in our office, and we had not planned on applying for the tax abatement. When we discovered that it had however been submitted, and was scheduled for discussion, we asked the council to pull the application.
“At this time we have no plans on resubmitting the application.”
BHP’s explanation seems a little suspect given that the application had been in the system for nearly two years and company lawyers were corresponding with officials in Saskatoon. Then there’s the timing. The decision to pull the plug on the request came just three weeks before BHP first approached PotashCorp on August 12, 2010, with a proposal to combine the two companies. The company is currently trolling for public support through feel good, full-page ads in the StarPhoenix and Leader-Post. News of a tax break might not go over too well right now.
The city’s business development incentives policy is designed to encourage companies to locate or expand their operations in Saskatoon, create new employment opportunities, place Saskatoon in a competitive position in attracting businesses that it would not otherwise occupy, increase the long-term viability of a project, and/or demonstrate the city’s commitment to a business or industry.
The policy offers corporations meeting the eligibility requirements for a property tax incentive a tax abatement of up to 100% of new or incremental taxes in year one, 80% in year two, 70% in year three, 60% in year four, and 50% in year five.
The value of incentives for new or local expansions in the manufacturing or processing sectors that will create 100 or more new, full-time or full-time equivalent employees may be eligible for tax abatements of up to 100% of new or incremental property taxes for a period of five years.
The Saskatoon Regional Economic Development Authority (SREDA) administers the policy on behalf of the city. An incentives review sub-committee consisting of five members of SREDA’s board of directors, one of which is a representative of city council and the general manager of corporate services or designated appointee, evaluates applications.
The SREDA board then reviews each incentive application and reports to city council recommending acceptance or denial of the request.
In a memo dated July 9, 2010, SREDA chair John Cross informed the city’s corporate services general manager that BHP’s incentive application was received on July 28, 2008.
Cross said BHP’s application was complete with one exception: “BHP is not currently incorporated in the Province of Saskatchewan, and has no intention of becoming incorporated in the Province of Saskatchewan.”
The SREDA board initially approved the application on July 30, 2009, “pending BHP correcting the deficiency in the application.”
BHP legal counsel, Fasken Martineau DuMoulin LLP, in a letter dated July 29, 2009, argued that “BHP Billiton Diamonds Inc. is incorporated pursuant to the Canada Business Corporations Act, under Corporation Number 448237-9, is in good standing with respect to the filing of Annual Returns, and has not been dissolved under that Act, and the Corporation is extra-provincially registered in Saskatchewan under Entity Number 101139980, with all required filings up to date.”
Cross concludes by stating that the SREDA board approved the application for submission to city council.
According to a separate memo from SREDA CEO Tim LeClair to Bilanski, dated February 15, 2010, the organizations incentives review sub-committee recommended approval of BHP’s application in February 2010.
SREDA approved the application without knowing the estimated value of the five-year tax abatement. In an email dated July 16, 2010, Bilanski notes that “this totally depends upon when and to what degree the building will be occupied and finished as tenancy increases. The maximum will be somewhere in the order of $150,000 (includes municipal, school and library taxes.)”
In his memo, Cross describes a similar situation with an application from Alstom Canada Thermal Services requesting a five-year tax abatement. Apparently, Alstom is not currently incorporated in Saskatchewan either, yet it appears SREDA did not ask the company to correct the deficiency. It instead argued that pursuant to the provisions of the Business Corporations Act (Saskatchewan) extra-provincially registration accords a corporation the same rights, privileges, and obligations to carry on a business, own land, initiate suits, etc. as if it had been incorporated in Saskatchewan.
“If there is no clear reason for Alstom to be incorporated in the Province of Saskatchewan, incorporation should not be required,” Cross said. On that basis, it appears SREDA approved the application for submission to city council. Without actually saying so, it would seem that SREDA is using the same rationale for approving the BHP application.
The problem is, regardless of what BHP’s lawyers and the province’s Business Corporations Act say, the application from BHP doesn’t appear to comply with the city’s business development incentives policy.
The city’s incentives policy is explicit; to be eligible for an incentive “all of the following criteria must be met.” The very first item on the list of requirements is: “The applicant must be a legally incorporated corporation in the Province of Saskatchewan.”
Cross said that BHP is not currently incorporated in the province. And yet, SREDA says in a document attached to Cross’s memo that the company “meets all of the eligibility requirements” of the city’s policy.
There is no grey area. The city goes so far as to bold and underline the word ‘all’ to drive home the importance of the eligibility criteria. The policy does not say that being extra-provincially registered satisfies the requirement that applicants must be a legally incorporated corporation in the province. The city has the power to amend the policy but hasn’t.
The policy does provide, upon the advice of SREDA and with the approval of council, for the criteria to “be waived or modified to recognize the uniqueness” of an incentive request. However, SREDA did not advise council to do that. The agency simply recommended the application be approved. BHP may be somewhat new to the city but they’re hardly unique.
BHP’s request for a tax break was all but ignored by the media. It seems only radio stations NewsTalk 650 and NewsTalk 980 took notice.
Mayor Don Atchison, who happens to be a SREDA board member, had no qualms with the tax abatement insisting it is a normal way of attracting business investment.
“Six years from now, when you still have nothing, you’ll still have nothing. It’s not into perpetuity. It’s (just) five years.” [Saskatoon Deciding on Proposed Tax Break for BHP (NewsTalk 650, July 21, 2010)]
Following the company’s decision to withdraw its request, Atchison said he understands that for some, the world’s largest mining company asking for a tax break might not look good, but maintains there’s a benefit to a five year tax break.
He says Saskatoon is competing with other cities to attract large companies like BHP Billiton. [Mining Giant Withdraws Request For Tax Break In Saskatoon (NewsTalk 980, July 22, 2010)]
Getting into the potash business has been on BHP’s radar for quite a while.
In the first issue of its quarterly newsletter Potash Pages, the company points out, “The potash industry is a fundamentally attractive one, with only three major basins (Canada, Belarus and Russia) and a growing world market. The potential for BHP Billiton in Saskatchewan is substantial with over 7,338 square kilometers of highly prospective exploration permits in the immediate vicinity of existing major potash mines. BHP Billiton is focused on developing the first new potash mine in almost 30 years in the province of Saskatchewan.” [Potash Pages, September 8, 2008]
It’s hard to imagine BHP would let a $150,000 tax abatement get in the way of coming to the province. There’s too much money to be made.
BHP is leasing the entire Discovery Plaza, located at 130 3 rd Ave. South. The office, according to SREDA, is the headquarters for Project Jansen and the Athabasca scale up and operations.
Discovery Plaza Inc. is owned by John Williams, president of North Prairie Developments Ltd. In the company’s November 2009 newsletter, North Prairie announced that BHP would be “the first major tenant” in the recently completed building.
Discovery Plaza is located on the site of the former Extra Foods, the downtown’s only grocery store that closed October 9, 2004.
In April 2006, Williams confirmed that his company bought the building. [Grocery Store Sold (StarPhoenix, April 12, 2006)]
In an interview with the StarPhoenix on April 15, 2008, Williams confirmed that a new office building would be built and should be ready for occupancy by June 2009. Williams said the investment was going ahead even though he had no firm commitment from a tenant.
“We’ve been talking to a few people, but we don’t actually have a firm lead client at this point in time, so we’re still working on a spec basis,” Williams said. “But we think the market’s there.” [Developer plans new four-storey building downtown (StarPhoenix, April 16, 2008)]
BHP’s subsequent tax abatement request in late July 2008 fits the timeline nicely.
However, the BHP website shows the company didn’t move to Saskatoon until September 2008 when its potash development office opened at Innovation Place.
SREDA helped roll out the red carpet for BHP on January 22, 2009, hosting a reception at the Sheraton Cavalier to welcome the company to the city.
BHP moved into Discovery Plaza on January 25, 2010. [BHP Billiton Expands Potash HQ (NewsTalk 650, January 31, 2010)]

[Oscar]

BHP Billiton hires trio of high-profile lobbyists

http://www.thestarphoenix.com/business/
Billiton+hires+trio+high+profile+lobbyists/3560782/story.html

BY THEOPHILOS ARGITIS, BLOOMBERG SEPTEMBER 22, 2010

BHP Billiton Ltd. hired advisers to three Canadian prime ministers to lobby on its behalf as it seeks to win political support for a $38.6-billion US hostile bid for Potash Corp. of Saskatchewan Inc.

Michael Coates, an adviser to Prime Minister Stephen Harper in the last three election campaigns, has registered for the Melbourne-based firm, according to the website of Canada's lobbyist registry. William Pristanski, an aide in the 1980s to former Progressive Conservative leader Brian Mulroney, and Bruce Hartley, former assistant to the Liberals' Jean Chretien, also registered on behalf of BHP Billiton.

BHP Billiton, which had no active lobbyists registered on its behalf until last month, is seeking to win government approval for the takeover bid amid calls from opposition lawmakers for the government to set conditions on any foreign acquisition of the Saskatoon-based fertilizer maker.

BHP Billiton chief executive officer Marius Kloppers is scheduled to be in Ottawa for meetings with lawmakers this week.

MORE:
http://www.thestarphoenix.com/business/
Billiton+hires+trio+high+profile+lobbyists/3560782/story.html

[Oscar]

BHP Billiton eyes uranium

[See safety whistleblower info below this article. EMH ]

http://www.thestarphoenix.com/Billiton+ ... m/3554243/
story.html

Potash first on company's Sask. agenda

By Cassandra Kyle, The StarPhoenix September 21, 2010 8:36 AM

While potash remains top of mind for BHP Billiton, the CEO of the world's largest mining company told The StarPhoenix on Monday that the province's uranium reserves are also of interest to the firm.

"There has been a fair amount of internal thinking about the uranium potential here," Marius Kloppers said in an interview.

"I would say that those two commodities (potash and uranium), probably in order, are the ones that interest us," he said.

BHP Billiton targets tier-one assets, meaning resource deposits must be large and among the best in the world to be of interest to the company. Some of Saskatchewan's smaller natural deposits, such as rare earth elements, are likely not in the firm's range.

"To be frank with you, things like rare earths and so on are probably too small for our company to really move the needle," Kloppers said. "Historically, we have not put that in a strategic frame and it's unlikely that will change."

Andrew Mackenzie, a BHP Billiton executive and chief executive of non-ferrous metals, said the company prefers to anchor itself in tier-one ore bodies.

"Saskatchewan is probably blessed with two (world-class resources), and they are what you have in potash and what you have in uranium, which really are world champion resources," Mackenzie said. "That would be where our interest would lie."

BHP Billiton is already involved in the uranium industry through its base metals division.

Mackenzie stressed the company's uranium focus remains on its own properties, such as its Olympic Dam mine and the Yeerlirrie project, both of which are located in Australia.

And in Saskatchewan, he added, potash is BHP Billiton's top priority.

MORE:
http://www.thestarphoenix.com/Billiton+ ... m/3554243/
story.html

= = = = =

BHP Billiton - Olympic Dam, Roxby Downs (South Australia)

http://www.wise-uranium.org/umopauod.html

General issues

Workers exposed to unsafe levels of radiation at Olympic Dam mine: whistleblower

Workers at BHP Billiton's Olympic Dam are being exposed to unsafe levels of radiation, according to a company whistleblower. BHP Billiton has been warned about the risks at Roxby Downs, but according to South Australian Upper House Greens MP Mark Parnell the company has failed to take action. Mr Parnell says the levels of polonium-210, the toxic by-product of uranium production, have breached health standards. The whistleblower produced documents that show BHP uses manipulated averages and distorted sampling to ensure the figures are below the maximum exposure levels set by government, he said. (Sydney Morning Herald June 4, 2010)

MORE: http://www.wise-uranium.org/umopauod.html

[Oscar]

GOVERNMENT RELEASES CONFERENCE BOARD REPORT ON POSSIBLE POTASHCORP TAKEOVER

http://www.gov.sk.ca/
news?newsId=999dae02-de62-4830-ac61-ae83a172de68

News Release - October 4, 2010

[ Potash Study - Final Report.pdf:

http://www.gov.sk.ca/adx/aspx/
adxGetMedia.aspx?mediaId=1245&PN=Shared ]

BHP Billiton's proposed takeover of PotashCorp could reduce provincial revenues by at least $2 billion over the next 10 years while having little or no net effect on employment in the industry.
The report highlights some potentially positive impact from the repatriation of some PotashCorp head office jobs that have moved to Chicago. The report also clearly establishes the importance of stability for Saskatchewan in potash markets both in terms of price and volume.
Those are some of the key findings of a report prepared for the provincial government by the Conference Board of Canada. The report outlines both the risks and the opportunities associated with the potential acquisition of PotashCorp by BHP Billiton.
Energy and Resources Minister Bill Boyd said the potential revenue loss is concerning because changes to the royalty structure to mitigate the loss could have negative effects on the Saskatchewan industry and the other potash companies.
The province commissioned the Conference Board report in early September. Boyd said the government will consider its findings in the coming days as the province prepares its views on the proposed transaction to be provided to the federal government.
"There are both pluses and minuses to this BHP bid," Boyd said. "This report will help to inform our view of whether an ownership change represents a ‘net benefit' to Canada and to the people of Saskatchewan."
Boyd restated the government's position that no matter who owns the potash mines, the people of Saskatchewan own the potash.
"From the outset, Premier Wall has said our government will protect the interests of Saskatchewan people," Boyd said. "That will be our guiding principle as we deal with this matter in the days ahead." -30-

For more information, contact:
Rebecca Rogoschewsky
Executive Council
Regina
Phone: 306-787-0980
Cell: 306-529-1601

[Oscar]

Exploiting Saskatchewan’s Potash: Who Benefits?

http://www.policyalternatives.ca/publications/reports/
exploiting-saskatchewan’s-potash-who-benefits

by John W. Warnock January 27, 20011
The Canadian Centre for Policy Alternatives, Saskatchewan Office today released Exploiting Saskatchewan’s Potash: Who Benefits? by John W. Warnock. The new report considers the history of potash exploitation in the province with an eye to answering the question of whether the people of Saskatchewan are receiving the full benefit from the exploitation of this strategic natural resource.
With the recent controversy over the proposed BHP Billiton takeover bid of PotashCorp, the question of ownership of Saskatchewan’s vital natural resources are again front and centre. Warnock argues that to ensure that Saskatchewan receives the full benefit of its natural endowment, we must move to a more democratic form of resource ownership and management.

For the full press release, visit here:
http://www.policyalternatives.ca/newsroom/
news-releases/saskatchewan’s-potash-who-really-benefits-report

To view the full report, visit here:
http://www.policyalternatives.ca/publications/reports/
exploiting-saskatchewan’s-potash-who-benefits

Simon Enoch, PhD
Director
Saskatchewan Office of the Canadian Centre
for Policy Alternatives (CCPA)
Suite G–2835, 13th Avenue
Regina, Sk. S4T 1N6
Office Phone:(306) 924-3372
E-mail: ccpasask@sasktel.net

Are you a member? The best way to ensure progressive research continues to be published in Saskatchwan is by joining the CCPA. To find out how you can support the CCPA call our office - Join Today!

[Oscar]

For more information on Potash mining in Saskatchewan, go to:

[ viewtopic.php?f=5&t=3110 ]

Editor