All posts by Edward Ameh

BC GRAIN MOVEMENT STILL A HEADACHE FOR FARMERS

Share

For David Newman, moving his grain from Saanich in British Columbia to other parts of Canada has become a nightmare.

The grain industry in Canada was hit by massive backlogs of delays resulting in a loss for the farmers. Newman thought the situation would improve but “it has become so bad, we have to change our business models,” he said.
According to documents obtained under an Access to information request, B.C agriculture ministry said the situation had improved reducing railgrain shipment backlogs but Newman disagrees.
“They do not pass our routes as frequently as they do,” he Newman said. He said their profit margins have reduced from 75 per cent last year to 40 per cent. Newman, who is also president of Commodius farms said small farmers like him were being shortchanged.

Spokesperson for B.C’s agriculture ministry Robert Boelens in an email said “Rail lines in B.C. and throughout Canada are held to Bill C-30 and regulations which has improved the grain movement throughout Canada.”

President of B.C Grain Producers Association Robert VanderLinden said “already, most grain producers are two months behind schedule and this is not good for us.” He said last year a lot of the members lost contracts and the association was promised the situation would change this year but “there is little improvement.” Most of the blame was laid at the doorstep of Canada Rail. Phone calls and emails to Canada Rail were not returned.

According to information provided the animal nutrition association of Canada, the BC Grain producers’ association and some farmer associations signed a memorandum of understanding to provide a “made in BC” proposal to move grain from Northern BC to Southern BC. Bob Dornan secretary treasurer of the animal nutrition association of Canada said “that plan was to get attention to the plight of the farmers.” “It didn’t work.” He said he did not sign the document but heard of it. VanderLinden said he knew of the MOU but was not signatory to it.
Shaun Grant, managing director of the South Peace Cleaning Coop, said most of the farmers signed the MOU because “they were fed up with the system.” According to access to information documents, Grant’s organization which is a cooperative of more than 100 farmers is received money from government funded Peace River Agriculture Development fund to draw a proposal to create an alternate rail access to move grain from the area for shipment. Only farmers producing within 100 miles radius of Dawson Creek will benefit from the project. Grant said, “It will be hard to benefit every farmer but most farmers will benefit.”
The business plan for the project will be ready next week and the project will commence later this year pending approval from the BC government. Grant said the project will see grain being transported to the port of Prince Rupert which has less congestion and they have plans of exporting to China and India. “It is more of a marketing plan to export outside Canada,” he said. Grant said only feed grains for a few companies in the Canadian market will be served under the project.
Newman said this is just a means for a few people to enrich themselves to the detriment of the poor farmer. “They will do everything for the big cooperatives to ship outside Canada,” he said. “They don’t care about those of us producing for the local market.”
For Newman and other farmers, they can only hope for frequent transport of their grain by Canada Rail and hope that the next alternative will be to cart more grain for local consumption than for export. Even with that, he can only hope he falls within the mileage of beneficiaries.

Documents

ATIP response from BC’s ministry

Response document

Response document

Response document

Document

 

Access request document

Graffiti tops list of vandalism calls

Share

Graffiti topped the list of complaints of vandalism to the city of Ottawa in December last year.

All 33 complaints of vandalism received in December 2013 were related to graffiti and all 45 received in 2014 were also graffiti related.

“Most of the reports on graffiti last year were gang tagging,” said Mathieu Fleury, Councillor for Rideau Vanier. “The problem of graffiti is not widespread in the residential areas.” He said most of these vandalisms take place at parking lots and other places where there are not many people and this makes it difficult for the culprits to be brought to book.

Fleury’s ward topped the list of complaints. He said the Rideau Vanier Ward topped the list because it is the most densely populated area in Ottawa and the surge in gang activities might have also been responsible for the increase.

He said it it was also difficult to control such acts of vandalism because most of the perpetrators commit such acts at a time nobody is watching them. “I have no control over it and we have to depend on complaints to get rid of such unauthorized graffiti especially offensive ones,” he said.

The City of Ottawa passed the graffiti management law in 2008. Under the law, all city property are to remain graffiti free and culprits face a fine of up to $ 610. “This is to prevent people from drawing on any free space in the city,” said Catherine William the new project coordinator for the Graffiti Management program. Under the program, any graffiti reported to the city will be removed by the city and the culprit pays for the removal in addition to the fine.

The city’s “Paint up” project which seeks to replace vandalism through graffiti with mural paintings is still running. “Under the paint up project, individuals or groups could come to the city and engage in mural paintings which will be supervised by the city,” William said. “Because there is a financial package involved, it is hoped more youth will get involved in this and avoid graffiti vandalism.” William said even though Ottawa’s problem with graffiti is not as bad as other major cities like Toronto and Montreal, programs such as the paint up will help reduce graffiti vandalism. She said the city will be hosting annual Anti Graffiti Symposium dubbed TAGS 2015 conference later this year where other cities in the country will learn from each other how to tackle the issue of graffiti vandalism.

Under the graffiti management law, any resident whose property has been vandalized has to pay for the removal of the graffiti. Even though William admits, this could make innocent citizens pay for the crime of others, “unfortunately, it is the law,” she said. “The city can discuss how best the issue can be handled with the owner,” she added. She said even though the city can do little about that, discussing the issue can bring out some solutions. “That is why we urge everybody to call 3-1-1 when they notice something,” she said.

Fleury also admits this aspect of the law could be harsh but said the law and other programs like paint up are ways graffiti vandalism can be resolved. “We are open as a city to all forms of discussions but we must also work within the confines of the law,” he said.

The Vanier Community Church has been vandalized with graffiti three times within the last two years. Officials of the church had not responded to requests for interview at the time of filing this report

KINROS GOLD’S PROFIT PLUMMETS IN CHIRANO

Share

Canadian mining giant Kinross Gold made an 85 per cent loss at its Ghanaian Chirano mines  in the first quarter of 2014 compared to the same period last year.

This huge dip in loss comes despite the company’s ability to reduce cost of production by 20 per cent. The company attributes the huge loss of profit to the reduction in global price of the precious metal.

In a statement after releasing 2014 first quarter results, CEO of the company Paul Rollinson said “While lower gold prices affected earnings, Kinross is making steady progress to reduce costs.”

Paul Rollinson is the CEO of Kinross Gold. Photo credit: globeand mail.com
Paul Rollinson is the CEO of Kinross Gold. Photo credit: globeand mail.com

Rollinson also touted the company’s ability to reduce production costs of gold at the mines. Despite reducing costs, Kinross also produced 12 per cent more gold in the first quarter of 2014 than 2013. “Capital expenditures for the quarter were approximately half of what they were a year ago, while our all-in sustaining cost continued to decline” he said. Rollinson added “in addition, we’ve been able to reduce production cost of sales on a per ounce basis by 16% at Chirano.” The company’s first quarter financial statement it made made $3.10 million in 2014 compared to $24 million. Analysts say this is a true reflection of how companies are feeling the pinch of the price fall. Frank Ametefe, an analyst and a lecturer at University of Ghana’s Business School said Chirano is not the only mine that is affected. He said as a result of the falling prices of gold on the world market, companies are cutting costs as much as possible. “From the results posted, you can see the company is trying very hard to reduce costs just to make up for some of the losses,” he said. The report saw Kinross’ other mines in Russia, U.S.A, Chile, Brazil and Mauritania reduce production costs. As a result, the company which is listed on the Toronto stock Exchange and the New York Stock Exchange has not declared any dividend since March 2013.

Frank Ametefe is a Ghanaian analyst and a lecturer at the University of Ghana Business School
Frank Ametefe is a Ghanaian analyst and a lecturer at the University of Ghana Business School

Ametefe fears the reduction in cost production might result in the company laying off workers. “Already we have seen Newmont Ghana and Anglogold Ashanti lay off almost 5,000 workers, I’ll not be surprised if Chirano announces it is going to fire workers,” he said. Kinross plans to reduce production in its Obra open pit mines and later close it. Ametefe fears this could result in worker layoffs. With gold prices predicted to fall further, and the company predicting to further cut costs, it is unclear what the fate of local workers would be. Emails to Kinross to make comments on this issue were not responded to. Emails to the Ghana Chamber of Mines to ascertain whether Kinross has sacked workers also were not answered. Rollinson hopes the company could break even or make profit with the measures of cost reduction. “We continue to deliver on our strategy, which is focused on capital discipline, operational excellence, quality over quantity and balance sheet strength,” he said.

Kinross Shares closing 30th January 2015 by EddieAmeh on TradingView.com

Already, the shares of Kinross which have plummeted over the past months is beginning to see a steady rise.