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Newfoundland gold mine a big deal for Green Bay economy

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Local mayors expect the proposed revival of a nearby gold mine could shine brightly on their rural-Newfoundland economy.

Maritime Resources Corporation last week registered a project for environmental assessment to develop a gold mine near the communities of King’s Point and Springdale on the Baie Verte Peninsula. According to a registration document filed with the Department of Municipal Affairs and Environment, the mine could have a life of six years and create upwards of 150 direct jobs when operating at peak capacity. The initial estimated capital investment for the Hammerdown gold mine would be $57 million.

This is all music to the ears of King’s Point Mayor Perry Gillingham. His town of approximately 650 residents is five kilometres from the site of the proposed mine.

“It would be good for us and the overall area of Green Bay,” said Gillingham, whose council has met with the company. He understands the mine would provide well-paying jobs.

“It would be a tremendous spinoff for the local businesses in place,” said Springdale Mayor Dave Edison. With a population of almost 3,000, Springdale is the region’s largest community, and Edison said it already has a number of supply businesses that can work with the mining industry.

The site in question has a history when it comes to gold mining. Richmont Mines operated the mine as a small open pit and underground operation from 2000 to 2004. Ore from the mine was processed at the Nugget Pond processing plant, located 140 kilometres away from the site near the resettled community of Snook’s Arm. Richmont Mines ceased operations in 2004 and decommissioned the site a year later due to a low price for gold.

A conceptual rendering of the proposed Hammerdown gold mine site. — MARITIME RESOURCES CORP. – Contributed

 

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The commodity’s price in Canada has shown strength in recent months, at times exceeding $2,400 per ounce. According to a SaltWire Network article published last month on Anaconda Mining’s drilling plans for eastern Nova Scotia, this sort of price level has not been witnessed since the early 1970s, making it a highly profitable time to mine gold.

Gillingham and Edison both acknowledge the fact activity at the mine in the early millennium benefited their respective towns quite a bit. Both communities also have many residents currently employed in the industry who travel for work.

“There’s a lot of miners here that travel to Labrador, Alberta and Nunavut — wherever there’s mines to,” Gillingham said, adding there are likely miners nearing retirement who would love to finish their careers working close to home.

Springdale Mayor Dave Edison. — SALTWIRE NETWORK FILE PHOTO
Springdale Mayor Dave Edison. — SALTWIRE NETWORK FILE PHOTO

 

Springdale has potential housing subdivisions on the horizon and Edison expects the mine, if it proceeds, would help fill some of these homes.

“It’s easy for (council) to support this,” he said. “We’ve spoken to the CEO of this company, and they’re a reputable company.”

Although he recognizes the short-term value of the mine, Gillingham knows the project will help his town in the long run. Over the last 10 years, King’s Point has placed more emphasis on attracting tourists to the region, highlighting the natural beauty of Green Bay.

“That’s something that can continue on a yearly basis,” he said. “The mine is good. Don’t get me wrong. It will be a big boon for the area … But when that’s gone, hopefully tourists will still be here.”

The project was registered for environmental assessment July 8. The deadline for public comments is Aug. 12, with a decision due from the minister Aug. 22. According to Gillingham, drilling at the site is ongoing and it’s hoped work to develop the mine could begin in 2021.

 

Source:- TheChronicleHerald.ca

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As economy struggles, Fed weighs boosting bond purchases – Nanaimo News NOW

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With the economy showing signs of slowing in the face a resurgence in coronavirus cases and a return to shutdowns in some areas, there has been market speculation that the Fed could decide to boost the size of its monthly purchases.

The minutes show that while no decision was taken on what to do or when, Fed officials were keeping their options open. Some analysts believe the Fed will make an announcement on boosting the bond purchase program at its next meeting on Dec. 15-16, especially if there has been no movement by Congress to provide more economic relief to individuals and businesses.

The minutes said that many Fed officials “judged that asset purchases helped provide insurance against risks that might reemerge in financial markets in an environment of high uncertainty.”

Concern has been growing among economists that the economy is slowing after an initial rebound this summer and could even topple into a double-dip recession in the early part of 2021 if Congress does not replenish expiring support programs.

At the White House Wednesday, Peter Navarro, one of President Donald Trump’s economic advisers, told reporters that a “sober” reading of the economic recovery shows “we are facing … a chasm ahead for millions of Americans unless there can be a bipartisan” deal to provide further economic relief.

The minutes released Wednesday covered the Fed’s Nov. 4-5 meeting, held just after the November elections, and were released with the customary lag of three weeks.

At the meeting, the central bank kept its benchmark interest rate at a record low near zero and signalled that it was prepared to do more if needed to support the economy.

A multitrillion-dollar stimulus effort enacted in the spring has helped support millions of Americans who have been thrown out of work and provided further assistance to struggling individuals and businesses.

But many of those programs have expired and jobless benefits are due to run out for millions of Americans by the end of this year.

Federal Reserve Chairman Jerome Powell had said at a news conference following the two-day meeting that Fed officials had discussed whether and how a bond buying program might be altered to provide more economic support.

In addition to increasing the size of the program, the Fed could decide to alter the composition of the bonds purchases to focus on buying long-term securities as a way of putting added downward pressure on long-term rates.

___

AP White House reporter Kevin Freking contributed to this report.

Martin Crutsinger, The Associated Press

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National child-care system would boost women’s job numbers and economy, report says – Peninsula News Review

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A new report estimates that hundreds of thousands of women could get back into the labour force if the Liberals follow through on a pledge to create a national child care system.

The paper to be released Wednesday makes the case that federal spending to create a national program would “pay for itself” in the form of extra income tax, extra spending and reduced social costs as more parents entered the workforce.

There is also the potential for tens of thousands of construction jobs as new centres and spaces are built, along with an employment boost in the child-care sector as it expands.

Report author and economist Jim Stanford says the lack of accessible and affordable daycare is a key reason why fewer women in their 30s and 40s are in the workforce than men the same age.

He estimates that between 363,000 and 726,000 women in the “prime parenting age cohort” between 25 and 50 could join the labour force over a 10-year period as a national child-care program is developed.

Among them would be up to 250,000 women moving into full-time jobs.

Stanford’s paper builds on previous research into the economic spinoffs of Quebec’s publicly funded daycare system, but develops estimates based on how a national system might look.

The Liberals have promised to make a long-term spending commitment to create a national child-care system, seeing it as a key avenue to help women harder hit during the pandemic in what has been dubbed a “she-cession.”

“Economists have agreed for years that child care has huge economic benefits, but we just can’t seem to get the ball over the line in Canada,” says Stanford, director of the Centre for Future Work.

“I finally think the ducks are being lined up here and we can actually make this happen,” he adds.

“This really is the moment when we can finally move forward, and it is a moment when Canada’s economy needs every job that it can get.”

A recent report by RBC economists Dawn Desjardins and Carrie Freestone calculated that 20,600 women fell out of the labour force between February and October even as 68,000 more men joined it.

The situation was most acute for women ages 20 to 24, and 35 to 39; one of the reasons the duo cited for the sharper drop was the pandemic-caused closure of child-care centres.

Child-care centres, which often run on tight margins and rely on steep parental fees, couldn’t keep up with costs during spring shutdowns and shed about 35,000 jobs between February and July. Some centres have closed for good.

The worry Stanford notes is that many of the job losses will become permanent and more centres will close without financial assistance from governments.

Scotiabank economists Jean-Francois Perrault and Rebekah Young suggested in September that creating nationally what Quebec has provincially would cost $11.5 billion a year.

Their analysis also suggested federal coffers could reap billions in new tax revenue as women in particular would get into the workforce in greater numbers, offsetting some of the overall cost.

Stanford’s estimate is for a boost to government revenues of between $18 billion and $30 billion per year, split between federal and provincial governments.

“This literally is a social program that pays for itself,” Stanford says.

“The economic benefits of giving this first-class care to early-age children, and getting their mothers in the labour market working to their full potential, are enormous.”

READ MORE: National child-care plan could help Canada rebound from COVID-induced economic crisis: prof

He argues that provinces, mired in a fiscal quagmire worse than the federal government’s, shouldn’t stand in the way of “reasonable demands” from the federal government to create a national system.

Provinces have responsibility for child-care delivery. Stanford says they cannot afford to look this gift horse of new revenues in the mouth given the federal government would foot most of the bill.

Jordan Press, The Canadian Press


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As economy struggles, Fed weighs boosting bond purchases – Preeceville Progress

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WASHINGTON — At their meeting earlier this month, Federal Reserve officials discussed possible future adjustments to the central bank’s monthly bond purchases to boost the economy.

The Fed on Wednesday released minutes of its Nov. 4-5 meeting revealing that while officials believed that no changes were needed to the bond purchase program at that time, “they recognized that circumstances could shift to warrant such adjustments.”

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The Fed since June has been buying $120 billion in bonds each month to keep downward pressure on long-term interest rates as a way of giving the economy a boost as it struggles to emerge from a deep recession.

The purchases have included $80 billion a month in Treasury bonds and $40 billion in mortgage-backed securities.

With the economy showing signs of slowing in the face a resurgence in coronavirus cases and a return to shutdowns in some areas, there has been market speculation that the Fed could decide to boost the size of its monthly purchases.

The minutes show that while no decision was taken on what to do or when, Fed officials were keeping their options open. Some analysts believe the Fed will make an announcement on boosting the bond purchase program at its next meeting on Dec. 15-16, especially if there has been no movement by Congress to provide more economic relief to individuals and businesses.

The minutes said that many Fed officials “judged that asset purchases helped provide insurance against risks that might reemerge in financial markets in an environment of high uncertainty.”

Concern has been growing among economists that the economy is slowing after an initial rebound this summer and could even topple into a double-dip recession in the early part of 2021 if Congress does not replenish expiring support programs.

At the White House Wednesday, Peter Navarro, one of President Donald Trump’s economic advisers, told reporters that a “sober” reading of the economic recovery shows “we are facing … a chasm ahead for millions of Americans unless there can be a bipartisan” deal to provide further economic relief.

The minutes released Wednesday covered the Fed’s Nov. 4-5 meeting, held just after the November elections, and were released with the customary lag of three weeks.

At the meeting, the central bank kept its benchmark interest rate at a record low near zero and signalled that it was prepared to do more if needed to support the economy.

A multitrillion-dollar stimulus effort enacted in the spring has helped support millions of Americans who have been thrown out of work and provided further assistance to struggling individuals and businesses.

But many of those programs have expired and jobless benefits are due to run out for millions of Americans by the end of this year.

Federal Reserve Chairman Jerome Powell had said at a news conference following the two-day meeting that Fed officials had discussed whether and how a bond buying program might be altered to provide more economic support.

In addition to increasing the size of the program, the Fed could decide to alter the composition of the bonds purchases to focus on buying long-term securities as a way of putting added downward pressure on long-term rates.

___

AP White House reporter Kevin Freking contributed to this report.

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