Special Features - N2K - October 2014

OCTOBER 2014 • VOL. 1, ISSUE 7

Preparing tomorrow’s workforce — today

Youth connection Students experience industry at LNG conference

Cedar LNG Haisla going it alone with new terminal plans

Dream comes true Forest future How the BG Group made Port Edward’s vision a reality

Ensuring a sustainable supply of timber

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Over the past two years, LNG Canada has conducted extensive studies for its environmental assessment.

Putting promises to paper

If there’s one person who knows the ins and outs of the LNG Canada project it’s James Baldwin.

Baldwin is the Environment and Regulatory Affairs Manager at LNG Canada and naturally that position gives him a broad perspective on anything and everything to do with LNG Canada and what it will mean for the communities it affects.

The company is preparing its application for an Environmental Assessment Certificate. The document given for review is a behemoth, over 2,000 pages of detailed, intricate explanations for how everything is going to work. By that we mean everything from the facility in Kitimat itself; to shipping the natural

gas; to effects on the local economy, heritage and health; and the approach that LNG Canada will take to ensure responsible management of the environment.

Just to name a few.

The regulatory process actually goes a bit further back from this. In April 2013 the company filed a Project Description with both the Canadian Environmental Assessment Agency (CEAA) and the B.C. Environmental Assessment Office (EAO). CEAA granted substitution of the environmental assessment to the B.C. environmental assessment process, which means the bulk of the handling of the LNG Canada application has fallen to the BC EAO. Both the BC EAO and the CEAA will provide oversight on the project.

After filing the Project Description, LNG Canada had to put together an Application Information Requirements document, which they did in consultation with the public and various groups including a Working Group made up of representatives from First Nations, and federal, provincial, and local government. That document is in a sense like the questions asked on a school test; the AIR sets out what information will be needed in the actual environmental review which, at a successful conclusion, will give LNG Canada their environmental assessment certificate.

If the AIR is the questions on the test, the environmental assessment filing is LNG Canada giving their answers to the teacher. Baldwin

This space is a collaborative promotional venture by LNG Canada and N2K Editor Cameron Orr

says their assessment document is broken up in to several main sections.

Among those sections are the assessment of potential effects of the project, the company’s measures to avoid or reduce potential effects, and the significance of the effects assessed.

Through the filing the company will speak to how to responsibly manage potential project effects.

In terms of quantifying potential effects, Baldwin points as an example to the comprehensive way the company has reviewed potential air quality impacts and greenhouse gas emissions.

On that subject though he’s keen to note the commitment of the company and its partners of making sure LNG Canada designs the facility to assure leading environmental management performance and achieve a low carbon emission intensity.

There is also an entire section in the filing which addresses Aboriginal interests relating to the project. Another section outlines LNG Canada’s with the public consultation activities.

Baldwin says the regulators as well may come back after the process concludes with their own conditions in approving a certificate.

Once the filing has taken place there is a 30-day review where the BC EAO and Working Group make sure all the issues required under the AIR document were addressed in the main filing.

The public will also be welcome to participate in a 45-day public comment period on the application through the B.C. EAO. Further, the BC EAO will plan a series of open houses to allow the public to review the information.

People can request to receive project updates directly from LNG Canada by visiting their website at lngcanada.ca.

Filing for the environmental review is another step in the regulatory process of developing the LNG Canada facility, which otherwise includes receiving an export licence from the National Energy Board, the eventual receipt of an LNG facility permit from the B.C. Oil and Gas Commission and a review by Transport Canada’s TERMPOL process. (Technical Review Process of Marine Terminal Systems and Transshipment Sites.)

Publisher Todd Hamilton Editor-in-Chief Shaun Thomas Prince Rupert Ed Evans, Sales Lisa Thomas, Sales Terrace Rod Link, Editor Brian Lindenbach, Sales Bert Husband, Sales Erin Bowker, Sales Kitimat Louisa Genzale, Sales Cameron Orr, Editor Smithers Grant Harris, Sales Nick Briere, Sales Chris Gareau, Editor Kendra Wong, Reporter Houston Mary-Anne Ruiter, Sales Jackie Lieuwen, Reporter Burns Lake Laura Blackwell, Sales Jamie Harkins, Editor Fort St. James/ Vanderhoof Pam Berger, Sales Jesse Cole, Reporter Rebecca Watson, Reporter Front Page photo: Jesse Cole N2K CONTACT INFO:

Vanderhoof Fort St. James Burns Lake Houston Smithers Terrace Kitimat Prince Rupert

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big part of successful industry development here in the Northwest is having a workforce that is ready to fill the many job openings that will come and having young people aware of the many opportunities that await them.

Fortunately, there are already many businesses and individuals who are stepping up to the plate today to prepare the workforce of tomorrow. Whether its existing businesses or proposed projects, there is a vast recognition that waiting until a final investment decision is made to begin training is simply not an option.

In this issue of N2K, we look at some of the people that are being proactive when it comes to planning for the region’s bright future.

This month’s feature story tells the tale of how the liquefied natural gas industry came together to give nearly 100 high school students from across the Northwest the chance to experience the industry at the International LNG in B.C. Conference. Lucy Praught, the organizer of the trip, knows all too well how easy it is for teenagers to miss the big picture of what is happening in their own backyard and took it upon herself to make sure the next generation of kids doesn’t miss their chance to be part of the burgoening energy industry.

From there, Jesse Cole looks at one Vanderhoof business that is solving the trades shortage by offering interested youth apprenticeships in their chosen trade. In less than 25 years, Nechako Mechanical has graduated more than 150 apprentices and has no plans of slowing down any time soon.

Prince Rupert’s Ridley Terminals Inc., which is in the midst of a massive financial turnaround, has partnered with Northwest Community College and the Prince Rupert School District to offer millwright and electrician courses to students in the confines of Charles Hays Secondary School while also donating outdated equipment to the college for hands-on training.

And Avanti Mining is taking its workforce recruitment and training programs to where the people are, holding workshops in Vancouver, Terrace and the Nass Valley.

The needs of future industry in the Northwest are well on their way to being met thanks to some of the forward-thinking businesses and individuals highlighted within the pages of N2K. Todd Hamilton N2K Publisher publisher@thenorthernview.com

Out-of-area subscriptions now available e-mail: circulation@thenorthernview.com View our e-version for free at: www.thenorthernview.com/eeditions

Volume 1 • Issue 7

October 2014

YOUTH CONNECTION Industry funds students’ trip 6

SKILLED WORKERS Apprentices at home in Vanderhoof 10

TAKING SHELTER BG Group makes a dream reality 12

SIX DECADES RTA marks 60 years in Kitimat 13

FUTURE FORESTS KSM mine receives the go-ahead 14

IN THE BLACK RTI back from the financial brink 16

MAKING MINES From inception to operation 19

CEDAR LNG Haisla Nation enters the marketplace 21

DIVING IN Haida Gwaii turns to aquaculture 21

FINDING LABOUR Avanti Mining seeks out workforce 24

ASIA BOUND Forestry benefits from port access 26

SEEKING TEACHERS NWCC short on trades instructors 28

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Northwest’s Largest Volume Dealer for a Reason!!

Forging a critical connection with Northwest youth Justin Schnieder photo

Industry comes together to promote opportunities

By Shaun Thomas

G

rowing up in the Northwest, it is sometimes tough to see the abundant opportunities right in your own back yard.

It’s something that Lucy Praught knows all too well.

“I grew up here and went to high school in Terrace and I was also that girl that couldn’t wait to get out of there. I couldn’t see the vision for my community past my passion which, at the time, was bicycles and snowboards. I didn’t think about how my education played into the bigger role of what was going on in the community,” she said.

“You feel like you are in a hole and that nothing is going to happen. You don’t see the big picture.”

But Lucy decided to make the region her home, a decision that has paid off in spades thanks to hard work and the opportunities presented by the burgeoning energy industry. Now serving as the business and community development liaison for construction firm EllisDon, she wants to make sure students in high school understand just what is coming with the emergence of the liquefied natural gas

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“Everyone recognized this is not an area to compete in.”

- Lucy Praught industry.

And the first step in creating that awareness was a field trip unlike any students had experienced before — a trip to the 2014 International LNG in B.C. Conference held this spring, with industry itself footing a large portion of the bill.

Lack of awareness leads to action Before making the trip, Praught travelled to communities from Smithers to Lax Kw’alaams to talk with students about the emerging industry energy.

What she found was a little surprising.

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Justin Schnieder photo

“I went with one of the proponents to each classroom before the trip and asked, do you know what LNG is?

Most students didn’t know what LNG was and how it was made. The perception was that it came from the oilsands of Alberta. They had no idea why we were sending it to China and didn’t understand policies around air quality and clean energy,” she said, adding a sea of hands went up in every single classroom when the question of who wanted to leave their hometown arose.

“The real eye-opening thing was that we asked the kids if they could name one major project in their community and they had no idea ... I told them that this is why we were there, to do a better job engaging and informing youth.”

With that information, Praught approached teachers about taking a handful of students to the conference, but the idea quickly ballooned.

“The initial goal was to take 20 or 25 kids from across northwest B.C., but we had one teacher say they would really like to not choose and asked if we could take the entire class. That was a Grade 10 planning class and I thought it was a great year, it’s such a pivotal year because it is when students are choosing their courses for Grade 11 and 12,” she said, noting the final number turned out to be closer to 95 young people.

“We ended up taking the Grade 10 planning class

“We asked kids if they could name one major project in their community and they had no idea.”

- Lucy Praught from Prince Rupert, Lax Kw’alaams, Kitimat, Terrace and in the case of Hazelton we took the Grade 10 trades class.”

From there, Praught reached out to the LNG industry and its partners with an idea to connect the nearly-100 northwest youth directly to the industry and the opportunities it provides. With an average cost of $900 per student needed to cover the cost of hotels, food and flights alone, it was no small request. But, said Praught, the industry stepped forward in a big way, covering those expenses plus the reduced student registration fee to create a free trip that students of any economic background could attend.

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Justin Schnieder photo

“It was amazing that everyone worked together. I think everyone recognized that this is not an area to compete in ... one of the things that we forget as a community is that because these projects aren’t going yet there is no cash flow, so this was an opportunity for everyone to cost share a great initiative,” she said, adding every LNG player and pipeline company operating in the Northwest were among those that stepped forward.

“We did have a few companies outside of LNG that support LNG contribute, such as a crane company, an environmental consulting company and a camp company.

It was really a potluck of donations. Everyone’s donation was kept in confidence and it was whatever that company could afford .... it really took out that competitive aspect of it, there was no gold, silver or bronze sponsorship or grandstanding. To this date, nobody knows who gave what.

With the funding in place, the students took flight in May.

Learning and lifestyle Regardless of what career in energy students may pursue, or what career in general, post-secondary school is a major stepping stone. With that in mind, the students’ first stop was at the University of British Columbia (UBC).

“I really wanted them to be there so they could not just envision it, but see it and touch it so it wasn’t as scary,” said

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“We as adults are making plans for this workforce and this workforce has no idea what we’re making plans for.”

- Lucy Praught Praught.

“We also talked to the admissions officer there to see what students need to get into UBC so the kids could understand what was needed for GPA. And not only do they look at GPA, the admissions officer also said they look at the person as a whole in terms of volunteering and activities. It was really eye-opening.”

From there students checked into the Hyatt in downtown Vancouver, a hotel strategically chosen by tour organizers.

“We stayed at the Hyatt in Vancouver because I wanted the kids to have an understanding that this is what life is like in industry – you stay in a nice hotel and eat great food. The process of having a good job includes these benefits,” she said.

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Justin Schnieder photo

Even at dinner, the students had the opportunity to directly ask the decision makers of the province just what a potential energy industry boom means to them.

“We had dinner at the Hyatt and were lucky enough to have dinner with the Ministry of Natural Gas Development there, as well as Jobs Minister Shirley Bond and Education Minister Peter Fassbender. We had panels where one student from each school sat with the ministers and talked about the opportunities, but also the challenges,” said Praught.

“It was interesting for government and industry to hear that even at 15 or 16 we, as adults, are making plans for this workforce and this workforce has no idea what we’re making plans for. It was really eye opening and it was great to hear how passionate the kids were and how they wanted to get involved, but that gap existed.”

Along with a stop at the conference itself, where students got to interact with industry professionals and both see and hear about LNG, the students stopped at the Vancouver Aquarium to learn more about marine mammal biology and marine safety.

The trip, said Praught, was an effective one – students were sitting with their teachers on the flight home planning their courses for the coming year.

A life-changing experience Seeing the impact this trip had on the students and the knowledge it imparted, Praught is looking to make this connecting of youth and industry an annual event – even if there is no conference to attend.

“Unfortunately the next LNG in B.C. conference isn’t until October, 2015, so it will miss a school year cycle, but there is talk of taking that conference on the road as far as the youth portion is concerned ... I would like to see something happen this fall because I don’t want to drop the ball when we have this momentum and there is interest, especially now having these kids mentor younger kids to tell them about this experience.

I’m really excited to see it happen again,” she said.

“It’s a lesson for these young people: Your opinion does matter. We want you to be plugged in, this is how we can plug you in, and you have an impact because we want you to be at the table in three years or five years.”

Whether students choose to pursue a career related to energy development or not, the impact this type of industry support has can be summed up with the following story that is among the most memorable of the trip.

“For one young man from Hazelton, it was his first time ever seeing the ocean. His only life’s movement had been from Hazelton to Smithers. Even though if there were a major incident in the ocean it would impact his lifestyle because how the rivers are connected, he’s never touched the ocean ... for that young person to go home and be so inspired that he is changing his course load on the plane to have a better life, that impact from that industry donation is multigenerational because he is going to grow up and have a family and make sure his kids and grandkids are going to see things he never saw,” recalled Praught.

“It was just a really cost-efficient way to truly impact a lot of people.”

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Preparing the next

Generation

Jesse Cole photo

Nechako Mechanical’s long apprenticeship history

By Jesse Cole

T

hese days a trade is often a more profitable and accessible option than a university degree is and more of today’s youth are looking to the trades to find their futures and fortunes.

Nechako Mechanical has been encouraging this focus on trades through their apprenticeship programs for the last three decades.

The largest fabrication facility north of British Columbia’s Lower Mainland, Vanderhoof ’s Nechako Mechanical is the birthplace of what is now known as the BID group of companies. BID Group operates businesses that span from British Columbia to Quebec to South Carolina in the United States.

Started in 1982, Nechako Mechanical has been training eager young tradespeople since 1990 when John Simoes, the manufacturing manager with Nechako Mechanical, put his first apprentice through the program. Since then Simoes, Nechako Mechanical and the BID Group have put hundreds of apprentices through school.

“My first apprentice went through in 1990,” said Simoes.

“The last number through here was 154 apprenticeships.

As BID Group we’ve put well over 250 apprentices through.”

Operating primarily in the mining and lumber industries, Nechako Mechanical has fabricated structural steel, line equipment, log feeders, stackers and more for markets as diverse as Canada, the United States and Russia.

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“The last number through here was 154 apprenticeships.”

- John Simoes Despite working primarily in these two industries, apprentices have a number of options when they enlist in the program.

“We’ll put them through the apprenticeship program depending on what they want to do. They have choices of metal fabricating, millwrighting, welding and machining out of this shop. t’s up to them, what they feel would suit them best,” says Simoes, acknowledging part of his role in the program is to help guide students towards the best role for them “I’m also quick to point out to some of them that maybe that’s not the trade they want to be doing, maybe they’re better suited for this one. However, I try not to do that, we want them to make their choice so we let them decide in the majority of the cases.”

With more than 40,000 square feet of available space, Nechako Mechanical is home to a number of different operating centres including their fabrication plant, paint shop, machine shop and millwrighting shop.

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There are currently 66 tradespeople at the operation and many of those who work in the facility are either graduates of the apprentice program or are enrolled in the program.

“My supervisors are in their 30s or younger and almost all of them have a trade through the apprenticeship here and have stayed on,” Simoes said.

But Simoes was quick to acknowledge that many of their graduates do move on to other places as well.

“We’re aware that many people will move to greener pastures and we’re okay with that. We’re very much aware that many of them will move on to something and if I were to look at the industry that some of my guys are in, some of them work for my competition now … some guys have moved to Alberta, some have started their own businesses. They do move on but most of them are very good at giving me their time during their time working here,” he said, noting the success of the program comes down to helping fill a void in the region.

“There’s a number of reasons but I think the biggest reason is that there aren’t as many companies out there that offer apprenticeships. Our goal when we first started this was to bring tradespeople to Vanderhoof.

That was an issue because there weren’t that many, so we as a group — myself, David and Brian Fehr, the owners of the companies — decided that we would do our own training and help to put people through school here.”

Simoes also believes their apprenticeship program has been so successful because many of the people

“Many people will move on to greener pastures, and we’re okay with that.”

- John Simoes they enroll are young and unsatisfied with a lot of the other options (or lack of options) available to them and have a hard time finding work in a mill without formal training.

“It’s been successful because we get these young guys that have graduated or tried something else prior and they didn’t like it so they come to me,” Simoes said.

“We’ve got my supervisors and myself and we believe that we’re knowledgeable when it comes to what we do; we’ve got a lot of experience behind us. It’s our teaching method that we use with these younger guys.”

When entering the program, prospective tradespeople are given an aptitude test for the trade they’re interested in. From there students must complete a four-year apprenticeship, or roughly 6,200 hours of training, before they are certified as a red seal tradesperson.

In addition to the training, students must pass an examination at the end of their apprenticeship and are given some financial help from Nechako Mechanical as well as having full-time employment with Nechako Mechanical while they learn.

A proposed liquefied natural gas facility located on Lelu Island within the District of Port Edward. Pacific NorthWest LNG would generate significant benefits for northwest British Columbia and the rest of the province.

• 330 new careers operating the facility • 300 local spin-off jobs • 4,500 construction jobs at peak activity • $1 billion in new annual revenue for local, provincial and federal governments • Contracting opportunities for local and regional businesses Visit www.PacificNorthWestLNG.com to learn more about the project and follow our progress.

Canadian Energy. Global Reach.

Making a dream

come true

Shaun Thomas photo

BG Group makes community gazebo a reality

By Shaun Thomas

A

s the sun shone down on Port Edward on Aug. 26, residents of all ages came together at the municipal offices to celebrate a milestone for the small North Coast community.

Where once there was only grass now stands a massive custom-built gazebo; a beautiful handmade covered shelter that, despite the ribbon blocking the stairway, was already home to children at play and seniors enjoying the burgers and salad prepared by the Port Edward Volunteer Fire Department and the Lions Club. It’s a structure Port Edward Mayor Dave MacDonald said has been more than a decade in the making.

“We have been talking about this for at least 15 years.

The vision was to have a gazebo, but we just didn’t have the funds to do it,” he explained.

Enter the BG Group, proponents of a liquefied natural gas terminal on Ridley Island. Hearing the desire of the community, the company came forward with a $20,000 donation that helped bring council’s vision to reality.

“We wanted to thank the community for allowing us to put up our environmental monitoring equipment here and generally working with us and welcoming us over the past few years ... everyone in the community has been very generous about giving us time to talk about our work and we wanted to show our support with a project for the

12

“When we asked for a donation, we sure didn’t expect what we got.”

- Mayor Dave MacDonald community, something they wanted, and we knew this was something they had wanted for a number of years. They chose the project and we are delighted to support it,” said BG Group Canada president Madeline Whitaker.

“With a lot of these projects we have all been making demands on the time of local people because we want to talk to them and consult with them about what we are doing. I think it’s important that they see some early benefit of this early engagement and I think this is a beautiful symbol of that benefit.”

For Mayor MacDonald, having the BG Group step forward to help create a legacy project like the gazebo shows the dedication energy companies have to the region.

“When we asked for a donation, we sure didn’t expect what we got. Without their donation of $20,000, this would not be sitting here today,” he said.

Celebrating a

Milestone

Rio Tinto Alcan photo Rio Tinto Alcan executives and two pioneer retirees who joined the company in 1954 gathered to cut the ceremonial cake during the company’s 60th Anniversary celebration on Sept. 12. As well as a formal reception, the company hosted a family fun day for the people of Kitimat on Sept. 13 that included live music and activities for people of all ages, wrapping up with a fireworks display.

Caring for the forest

of tomorrow

Rebecca Watson photo

By Rebecca Watson

T

rees grow, get cut, are made into wood products and then the cycle begins all over again.

Unfortunately, natural disasters coupled with a growing demand have Canadian forests looking somewhat blotchy these days. In the quest to restock B.C. forests, surveyors are the ones who look after the replanted stands and assess whether or not they are adequate and on course to become free growing.

“This is a renewable industry, but it is the mill’s or licensee’s responsibility to get it back to what it once was.

We, as silviculture surveyors, monitor this new forest along the way,” said John Prestmo, president of Van Dolah Enterprises Inc., a forestry consultant company in Vanderhoof that works primarily in silviculture and is one of the main suppliers for surveying in the Vanderhoof Forest District.

Logging companies collect timber with an obligation to replant the land and tend it until it has reached a free growing state. In response to wildfires and the pine beetle epidemic, the B.C. Government launched a reforestation initiative called Forests For Tomorrow in 2005 that focuses on the land outside of the logging industry obligations.

The BCTS branch of the Ministry of Forests, Lands and Natural Resources also develops timber sales, which again comes with an attached free-growing responsibility.

Each section or ‘block’ of land harvested is customarily replanted within one year and after three years a silviculturalist will start a surveying process.

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“We keep track of it so they can keep on top of it.”

- John Prestmo “We keep track of it so they can keep on top of it,” said Prestmo, who along with his crew, works in Fort St. James, Fraser Lake, Vanderhoof, Prince George and Burns Lake on multiple projects for a variety of clients throughout the spring, summer and fall months.

As surveyors, it is their job to establish plots throughout each block and collect representative samples of what is there and how the stand is progressing. This is done by attaching a plot chord to a shovel that is staked upright into the ground.

The surveyor counts and assesses all trees that fall within the radius, also known as ‘spinning the plot’. By multiplying the number of trees within the plot by the plot radius factor (200), the number of trees per hectare can be determined.

“So if we have six well-spaced trees in the plot, we know we have 1,200 well-spaced stems per hectare based on that plot,” said Prestmo.

A site plan prior to harvest determines standards that will be used in assessing the trees such as preferred and acceptable species, target, minimum and maximum densities and minimum free growing heights.

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“Generally we are assessing the stand for current or potential problems that could compromise the success of the trees that were planted and making recommendations for treatments if required, such as fill planting or brushing,� said Mr. Prestmo.

Surveyors are also trained to spot issues with pests such as hare damage, stem rusts and Warren’s root collar weevil (an insect that gets underneath the tree and eats away the collar above the roots).

Nikki Ford, 29, a surveyor at Van Dolah Enterprises Inc., said other than the bugs she loves her job because she gets to be outdoors and visit places nobody else can.  “Sometimes we quad, sometimes we walk and sometimes we drive right into the block,� said Ford as she walked through a survey block. “Occasionally we have to walk a couple of kilometres [through some really tough ground], especially when the climate is wet with richer soil where things tend to grow bigger.�

At Year Six surveyors return, but only to perform a walkthrough survey (recce) to determine when the free growing survey will happen; usually at Year 10 or later.

Surveyors must predict when the stand of trees will be tall enough to meet minimum free growing heights, between one and two metres.

Once surveyors declare the site free growing the company is no longer responsible and the land reverts back to the Crown.

Rebecca Watson photo

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Black Press file photo

Ridley Terminals weathers the darkest of days

By Shaun Thomas

A

fter having endured some of the darkest days imaginable, Ridley Terminals Inc. (RTI) celebrated its 30th year of operations with one of its strongest years both financially and in terms of coal movement and now looks to a very bright future.

In 2013, in the midst of an expansion project that will double the Prince Rupert terminal’s capacity to 24 million tonnes, RTI saw total revenue increase by $26.6 million from the previous year to sit at $131 million despite throughput only increasing by one per cent. That is a far cry from years past when RTI was struggling to keep its head above water.

“Less than a decade ago, the terminal reported an accumulated deficit of $188 million and relied on

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occasional appropriations to keep the facility operational.

At the end of 2013, RTI now has accumulated retained earnings of $60 million – a turnaround of $248 million - and $114 million in cash and cash equivalents,” wrote president and chief operating officer George Dorsey in the Crown Corporation’s annual report.

“The terminal continues to handle record volumes while upgrading and expanding the site to handle growth.

Over the past two years, over $150 million has been expended on capital initiatives with tens of millions more committed to complete the current buildout and upgrade .... funded by the terminal without federal assistance.”

The result of this increased revenue can be seen not only in the ongoing expansion, but in the day-to-day

operations of the terminal.

“Prior to the last few years, we’ve had 1978 dozers running all over the place for 27 years and we’ve now brought out D10s and D11s which makes it more reliable and more efficient to move product. One of our big ticket items is we replaced barrels from our dumper to sufficiently handle both steel and aluminum cars,” explained RTI controller Cordell Dixon during a Sept. 8 annual general meeting.

“Also in 2013, we did erect a much larger, more robust third stack reclaimer. The two existing stack reclaimers are being refurbished this year and will be completed by the end of this year ... 35 acres of the current area did not exist four years ago. We had to move the rail line to the

“RTI now has accumulated retained earnings of $60 million - a turnaround of $248 million.”

- George Dorsey outer rim, so this area is purposed for the future for more stock yard capacity.”

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Black Press file photo

Ridley Terminals weathers the darkest of days

By Shaun Thomas

A

fter having endured some of the darkest days imaginable, Ridley Terminals Inc. (RTI) celebrated its 30th year of operations with one of its strongest years both financially and in terms of coal movement and now looks to a very bright future.

In 2013, in the midst of an expansion project that will double the Prince Rupert terminal’s capacity to 24 million tonnes, RTI saw total revenue increase by $26.6 million from the previous year to sit at $131 million despite throughput only increasing by one per cent. That is a far cry from years past when RTI was struggling to keep its head above water.

“Less than a decade ago, the terminal reported an accumulated deficit of $188 million and relied on

16

occasional appropriations to keep the facility operational.

At the end of 2013, RTI now has accumulated retained earnings of $60 million – a turnaround of $248 million - and $114 million in cash and cash equivalents,” wrote president and chief operating officer George Dorsey in the Crown Corporation’s annual report.

“The terminal continues to handle record volumes while upgrading and expanding the site to handle growth.

Over the past two years, over $150 million has been expended on capital initiatives with tens of millions more committed to complete the current buildout and upgrade .... funded by the terminal without federal assistance.”

The result of this increased revenue can be seen not only in the ongoing expansion, but in the day-to-day

operations of the terminal.

“Prior to the last few years, we’ve had 1978 dozers running all over the place for 27 years and we’ve now brought out D10s and D11s which makes it more reliable and more efficient to move product. One of our big ticket items is we replaced barrels from our dumper to sufficiently handle both steel and aluminum cars,” explained RTI controller Cordell Dixon during a Sept. 8 annual general meeting.

“Also in 2013, we did erect a much larger, more robust third stack reclaimer. The two existing stack reclaimers are being refurbished this year and will be completed by the end of this year ... 35 acres of the current area did not exist four years ago. We had to move the rail line to the

“RTI now has accumulated retained earnings of $60 million - a turnaround of $248 million.”

- George Dorsey outer rim, so this area is purposed for the future for more stock yard capacity.”

See Page 18

17

Shaun Thomas photo Although 91 per cent of the product goes to China, Japan and South Korea, RTI never forgets that it is the people of the North Coast that make the terminal the success it is. “Over the past three years, RTI has done $1.4 million in community outreach and $550,000 of that was done in 2013,� said corporate affairs manager Michelle Bryant, pointing to a free community day at the Prince Rupert civic centre and medical equipment for the hospital as just some of the reinvestment done by the company. “Last year one of our focuses was youth leadership and part of youth leadership is developing the youth in the community to reach their full potential. One of the ways we did that was have a youth camp of excellence at Lakelse in Terrace.�

Outside of community outreach, Bryant said RTI

is committed to ensuring the next generation of tradespeople have the best opportunities possible available despite the smaller population of the Prince Rupert area. “We partnered with School District 52 and Northwest Community College and in this program the three entities partnered to provide a training program in Prince Rupert that consisted of a millwright program run out of Charles Hays Secondary School in September of last year until January and an electrical foundations program that ran from February until the end of June. The program will be running again this year,� she said. “Our older equipment that we ran on site, which was still in running order, we donated this equipment to NWCC for them to use in the mechanical department so that they had actual physical machines to use.�

- With files from Kevin Campbell

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Making a mine

Inception to production

UTM photo

By Kendra Wong

T

rudging through the backcountry, pushing your way through branches and bushes, stepping over rocks and fallen trees may sound like another weekend in the wilderness, but for some they are the first steps toward building a mine.

There are currently two metal mines operating in northwest B.C., the Huckleberry copper mine and the Endako molybdenum mine.

However, the process of building a mine from the ground up takes anywhere from two to five decades, according to

“People don’t realize a lot of these mines have been 50 or 20 years in the making.”

- Anastasia Ledwon the CEO of UTM Exploration Services Ltd. See Page 20

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“The average time that it takes is 28 years to go from licking a rock to becoming a mine,” said Anastasia Ledwon, who is also a professional geoscientist for the company.

“People don’t realize that a lot of these mines have been 50 or 20 years in the making to get that far and that it has taken a lot of exploration before something kicks high enough to justify putting in a mine.”

UTM is a turnkey mineral exploration service company that offers project management, geological services, report writing, permit applications and First Nations consultations.

Ledwon explained that exploration begins by prospecting, where two people walking through the wilderness will find an interesting-looking rock and take samples of it. “[Then] you can have small mapping crew to look at the area and geoscientists to grab soil samples. Then it moves into drilling to see what’s under the ground and putting together a 3D picture from that to see if you actually have a good sized deposit,” said Ledwon of the process.

“That then goes to someone who can tell you if it’s economically viable.”

Of roughly 2,500 exploration projects, Ledwon said

20

“We have been on mountain tops where very few people have been. There’s some beautiful places to see.”

- Anastasia Ledwon only one will make it to mine status, adding that the man-power of a project can range from one drill and a small crew to a large-scale project which could involve as many as 12 drills.

According to the Ministry of Energy and Mines, there were 229 active exploration projects in B.C. in 2012, 82 of which were in the Northwest.

“Working in the bush is great. The best thing about it is you get to see a lot of places where nobody else ever goes,” said Ledwon, who has spent time prospecting in the Arctic and around B.C. “We’ve been on mountain tops where very few people have been. There’s some beautiful places to see.”

Haisla go it alone with

Cedar LNG Cameron Orr Photo

By Cameron Orr

W

ith dozens of liquefied natural gas (LNG) proposals eyeing a shot at supplying overseas countries with the fuel, a new one to enter the field has a twist not many others have: It is entirely owned by a First Nation group.

The Haisla, whose home reserve is Kitamaat Village just 15 minutes away from the District of Kitimat, are owners of new company called Cedar LNG, which is proposing to build a floating LNG terminal on the Douglas Channel.

The company has submitted for three export licences â&#x20AC;&#x201D; three because theyâ&#x20AC;&#x2122;re planning up to five floating liquefaction facilities and having three licences gives them flexibility on how they conduct business when in operation.

Company CEO Dave LaVallie said each of the floating

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LNG facilities they hope to moor in the Douglas Channel can receive up to 400 million cubic feet per day of gas, and with up to perhaps five jetties serving the liquefaction vessels, he said the flexibility of the project lends itself to splitting up their operation under three export permits.

LaVallie has experience with floating LNG terminals.

He was previously head of the Haisla-owned portion of an LNG cooperative called BC LNG Co-Op which was proposing to develop Douglas Channel Energy, another floating proposal for the Kitimat area.

Financial troubles with other partners in the plan has put that idea on the back burner, but leaves the field open for Cedar LNG to move in.

See Page 22

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The liquefaction vessels themselves are slated to be built overseas for delivery to the Douglas Channel and he said it takes, give or take, two years to have them built and shipped.

The company also won’t construct its own pipeline to serve the facilities. Instead, they’ll take on capacity from an existing pipeline, but the exact partner has not been named yet.

Proposed natural gas pipelines to Kitimat include TransCanada’s Coastal GasLink, and the Pacific Trails Pipeline, which will serve the Kitimat LNG project. Pacific Northern Gas will also be ‘looping’ their existing pipeline, but LaVallie said PNG’s capacity is already taken up.

While they await decisions about export permits — and possibly environmental assessment reviews, although certain projects may not require those permits if they’re small enough — the company has to line up customers.

They’ve made progress so far, but there are some all too familiar hurdles to those.

“We are in advanced stage of negotiations with customers, but until such time that B.C. has confirmed its tax regime and its regulatory regime with respect to its emissions, standards and other things, folks aren’t prepared to sign up to these projects,” LaVallie said.

He said he anticipates that between direct and indirect jobs, over 100 people might be employed from the project in operation.

The location of Cedar LNG wasn’t specified but it would likely be built somewhere on land that effectively surrounds Bish Cove, where the Kitimat LNG project is proposed to go

“Our hope is that it will be as early as 2018, but I expect more likely 2019.”

- Dave LaVallie as well.

Under the best case scenario LaVallie sees the Cedar LNG project proceeding in 2018, but is realistic in that it could take longer.

“Our hopes are it will be as early as 2018, but I expect more likely 2019,” he said.

The application for the export licences gives background to the Haisla involvement with the project, saying the Haisla’s business philosophy “ is to advance commercially successful initiatives and to promote environmentally responsible and sustainable development while minimizing impacts on land and water resources, partnering with First Nations and non-First Nations persons, working with joint venture business partners, and promoting and facilitating long-term development opportunities”.

In short, the application says Haisla involvement means they can benefit more than simple royalties or indirect interests.

The big picture of “Haisla LNG projects” means they plan to control two parts of the LNG value chain: land and pipeline capacity, says the application.

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Diving into careers in Haida Seafood Products photo

By Shaun Thomas

I

t may not yet have a licence from the federal government, but Haida Seafood Products is already preparing for a geoduck clam aquaculture industry on Haida Gwaii.

In late August the company successfully graduated seven Old Massett students from the Restricted Surface Supply diver certification course delivered by DiveSafe International.

“We are starting to see some encouraging results stemming from three years of planning and hard work and we look forward to announcing the building start of our shellfish hatchery in Sandspit ... I am hopeful that we will be breaking through the red tape soon and that we will be successful in putting our divers to work here on Haida Gwaii, close to home, while creating some much needed employment,” said Haida Seafood Products CEO Daniel Rabu.

“I believe that this will have a beneficial impact on the Island’s economy and that one day, ‘geoduck farming’ will set a new standard for sustainable aquaculture on Haida

“We are starting to see encouraging results from three years of planning.”

- Daniel Rabu Gwaii”.

But Haida Seafood Products didn’t just stop at certifying the divers it will need to make aquaculture a reality on Haida Gwaii, it went a step further by sending graduating student Shaun Edgars to Courtenay to do some dive work on a geoduck farm owned by one of the company’s partners.

“Shaun will be getting valuable experience working with some of the best aquaculture divers in the industry, this is an exciting opportunity for him and we hope to send down several more of our divers whom will benefit from this work experience,” said Rabu.

23

Avanti begins mine

Recruitment

Avanti Mines photo

By Rod Link

W

ith construction anticipated to begin next spring, Avanti Mining has started building its database of potential suppliers, subcontractors and employees.

The company is in the final stages of lining up financing for its $1 billion molybdenum mine at Kitsault on the North Coast, making this the next step in the process.

Avanti has held three workshops this summer – one in Vancouver for businesses, an employee workshop in Terrace and another one in Gitwinksihlkw in the Nass Valley. Its collaborator in each workshop was Nisga’a Employment, Skills and Training (NEST), the employment development arm of the Nisga’a Lisims Government.

The workshops may meet commitments made by Avanti when it received its provincial environmental clearance for its Kitsault project, but connecting with local entrepreneurs and hiring local is also simply good business, explains Peter Baird, a communications contractor with the company.

24

“We want to have a strong local flavour.”

- Peter Baird “What we’re looking for is the best possible fit for our needs and we want to have a strong local flavour,” he said.

Avanti plans a workforce of up to 500 people over the course of two years of construction and a mine operating workforce thereafter of 300 people.

Fourteen representatives from various companies participated in the Vancouver workshop, being walked through how Avanti will set up its tendering and procurement methods. Those in attendance came from a variety of companies, including the joint venture of Bear Creek Contracting of Terrace and Nisga’a-owned Hobiyee Management.

See Page 25

The consulting firm of Merit Consultants outlined the basic information needed as companies first work their way through the prequalification stage to be a supplier or contractor up to how tenders are handled and awarded.

As a publicly-traded company, Avanti has to be fair and transparent in its dealing with companies and individuals, said Baird.

He said the emphasis is not only on development of local business talent for construction but for the planned 18-year life of the mine. Both Baird and Gary Patsey, the executive director of NEST, said they were pleased with the turnout of 54 people for the employee workshop in Terrace and the 73 people who attended the one in Gitwinksihlkw.

‘We’re getting a lot of interest now that various proponents have been coming up,” said Patsey.

The sessions NEST held with Avanti were the first of their kind for the employment agency. As such, it’s giving NEST, which officially opened up late last year, the chance to develop a model of how to work with a company.

“It’s the first project with boots on the ground,” said Patsey.

He said the role of NEST is to respond to the employee needs of companies and prepare individuals to meet those needs. It starts with what Patsey called a shopping list of manpower needs submitted by a company.

“We’re demand-driven when it comes to skills development,” he said.

In the case of Avanti, Patsey said the planned 18 year life of the mine comes close to the working life of a person.

“What we’re hearing from Avanti is that they have a

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Smithers lumber with a

Global Reach

Prince Rupert Port Authority photo

Port access provides certainty to Northwest forestry Courtesy of the Prince Rupert Port Authority

S

ituated halfway between the Port of Prince Rupert and Prince George, the town of Smithers is the hub of the Bulkley Valley region.

Since the Grand Trunk Pacific Railway reached the North Coast more than 100 years ago, Smithers has remained a logistically important community to the railroad industry.

The Canadian National Railway Station in Smithers is recognized as one of Canada’s Historic Places. As the oldest building in the community it signifies the economic impact of railway development in Canada.

Today, the community’s forestry industry relies on rail to bring increasing volumes of lumber to the Port of Prince Rupert and on to Asian markets.

OJ Egan is a quality control supervisor at West Fraser’s Pacific Inland Resources, a sawmill that has been one of the largest employers in the community for decades. Born and raised in Smithers, Egan and his brother Bill are both second-generation mill workers who enjoyed many years of work alongside their father before he retired several years ago.

Egan’s formal career with West Fraser began more than 20

26

“The younger guys and girls coming in have a real oppourtunity.”

- OJ Egan years ago after completing high school, starting out at a base job rate and working his way through the production line.

The opportunity to build a long-term career starting from an entry-level position is still there for today’s workforce. Currently more than 40 of Pacific Inland Resources 240 staff are over the age of 55, which means that dozens of positions will open up as employees look to retire in the next few years.

“You can build a great career here, and with the aging workforce the younger guys and girls coming in have a real opportunity,” said Egan.

See Page 27

Shaun Thomas photo â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re even busier now than five years ago and you can see how West Fraser is really adapting to changes in the industry. And one of the benefits of being close to Prince Rupert and the port is that we were able to take advantage of the Chinese market in the American downturn.â&#x20AC;?

Roughly 30 per cent of the millâ&#x20AC;&#x2122;s production now moves through Prince Rupertâ&#x20AC;&#x2122;s Fairview Container Terminal and on to the markets of Asia. That figure is poised to increase as softwood exports to China grow to record volumes and the country begins to embrace the use of higher-grade lumber for wood-frame construction and interior finishing.

In addition to the opportunities created by a rebounding forest sector, with new development at the

Port of Prince Rupert the next generation of Smithereens will also have the ability to pursue rewarding careers in areas such as resource extraction, transportation and logistics without leaving home.

Like their father before them, OJ Eganâ&#x20AC;&#x2122;s kids show an interest in his work, and his oldest son is currently taking advantage of West Fraserâ&#x20AC;&#x2122;s weekend clean-up program for high school students. â&#x20AC;&#x153;This industry has given me the opportunity to raise four kids quite comfortably,â&#x20AC;? said Egan. â&#x20AC;&#x153;I live in a place where 20 minutes from my back door is everything you could possibly want to do. I know Iâ&#x20AC;&#x2122;ve been fortunate to have a great run over the last 20 years, and with everything thatâ&#x20AC;&#x2122;s happening right now between here and Prince Rupert, Iâ&#x20AC;&#x2122;m hopeful my kids will too.â&#x20AC;?

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College instructors in

High Demand

Rod Link photo

Opportunities abound to train future tradespeople

By Rod Link

B

rent Speidel has a problem he doesn’t mind having.

And it’s not that unique within the region as business activity heats up, experienced people are getting harder to find and, at least in Terrace and Kitimat, lack of housing is a growing issue.

As the trades dean at Northwest Community College, Speidel has had the post secondary institution’s general trades training budget of $1.6 million boosted by $700,000, or close to 50 per cent.

The money comes from the provincial government and from the provincial agency, the Industry Training Authority, and it’s all earmarked to increase the number of skills training seats offered by the college in recognition of the growing demand for skilled labour in the province.

But Speidel’s problem is finding instructors.

That’s because the demand for skilled labour has increased the scarcity of skilled tradespeople who might otherwise be instructors.

“When we put out a call through the college system for instructors we get back ‘Great, when you find someone, let us know,’” he said.

“Hopefully, a qualified instructor would be someone with years of experience who perhaps doesn’t want to pull wrenches and who has a passion for teaching and doesn’t want to be on call or work long hours or be in a camp ... the trade off to being at home is that here, wages are less [than in the field].”

28

“It’s way better to be building this up.”

- Brent Speidel So far the college has delayed an electrical foundation course that was to start the beginning of August until the end of September and has put off a heavy duty equipment mechanic foundation program until at least the new year.

Not only must an instructor be found for the latter program, but student wait lists, where students would come from, the availability of student housing, facility usage and program support are all factors which need to be assessed, said Speidel.

“We’re not quite ready to pull the trigger on that yet,” he said of the program.

Adding an 18-person heavy duty mechanic foundation program, for example, means adding an afternoon shift in the college’s shops in Terrace and aside from an instructor, someone needs to be hired to work in the tool crib, Speidel added.

“We may have money to offer new [training] seats but we then have to have the capacity with regard to facilities and instructors,” said Speidel.

See Page 29

Even with the challenges of finding instructors and making sure there’s room and facilities available for the programs, Speidel says it’s much better than the alternative.

“It’s way better to be building this up, and having people be excited than be in the position of cutting,” he said.

Of the $700,000 in new money, the province is providing $485,000 with the remainder coming from the Industry Training Authority.

The provincial funding will result in 50 more spots for the electrical foundation program spread between Terrace, Prince Rupert and Houston, 32 more electrician apprenticeship seats in Terrace and 18 heavy duty equipment mechanic foundation seats in Terrace.

The money from the Industry Training Authority will go toward millwright foundation programs in Houston, Prince Rupert and Kitimat and electrical training in Terrace.

Students will also have the benefit of new equipment – $3 million worth provided by the province over the past several years.

As much as Speidel enjoys the challenge of lining up courses to train more people with the additional resources, he does note the money being provided doesn’t actually cover administrating the programs.

A budget increase of nearly 50 per cent comes with the necessity of managing how it is spent.

“We need to make sure we can do the planning so we know we can deliver the programming,” Speidel said.

Rod Link photo “We need enough money to support the infrastructure to manage the programs.”

There’s a greater cost in the north than elsewhere because of climate and distance, Speidel noted.

“A provincial base rate per training seat may not cover all of our costs,” he said.

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October 2014

Career Opportunities Broadwater Industries (2011) Ltd.

The Bear Creek Group have immediate posiƟons available for energeƟc individuals to join its team for the following posiƟons:

Heavy Duty Mechanic (Full Time) - Terrace, BC Heavy Duty Mechanic (Full Time) - Prince Rupert, BC

Accounting Assistant

The successful candidates will have the opportunity to work for a well-established local company, involved in exciƟng projects throughout Northwest, BC. We encourage applicants of various experience from entry level Heavy Duty Mechanic ApprenƟce, to full-Ňedged Journeyman to apply. Ideal candidates will exhibit a high apƟtude for safety and have an analyƟcal approach towards diagnosing and repairing equipment issues. Machinery worked on will vary as the Bear Creek Group have many ongoing projects in mulƟple industry sectors. Applicants who possess a valid driver’s license and OFA Level 3 may be given preference.

Permanent part-time position in a busy office setting for a detail orientated person.

Applicant must be familiar with all aspects of Payroll, AP, AR as well as general office duties including the use of excel and word.

Experience with Sage Accpac would be an asset. There is some flexibility in hours, but the applicant must be available to work full time to provide vacation coverage.

Successful applicants will receive a compeƟƟve salary and beneĮts package based on experience.

If you feel you’re the right Įt for our growing team, please submit a resume and current drivers abstract to: sortyard@bearcreekgroup.ca Fax: 250-622-2493 www.bearcreekgroup.ca

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JOURNEYMAN & APPRENTICE MECHANIC Our GM dealership located in Prince Rupert has an immediate opening for Automotive Technician. We offer an excellent training program to gain product knowledge and technical mechanical skills. This position is suited to either female or male applicants. Preference will be given to applicants with GM training. MacCarthy GM, Prince Rupert offers a full benefit package. Please send your resume to: John Cooper 5004 Highway 16 West, Terrace, B.C. V8G 5S5 Email: employment@maccarthygm.com Fax: 250-635-6915 NO PHONE CALLS PLEASE

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Business is soaring at Canadian Helicopters

Prince Rupert Grain shatters tonnage record

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Trade connects us.

These workers—and men and women like them—are building the Port of Prince Rupert’s Road, Rail, and Utility Corridor. Once the two-year construction project is complete, our gateway will move more cargo to overseas markets. That means jobs and prosperity for people in northern BC. Our terminals may be located in Prince Rupert, but we’re building connections clear across Canada—and the globe. Learn about the value of trade at www.rupertport.com.