Archive | Canada Mining

‘They were just tired’: Embattled Tahoe Resources sells out to create world’s biggest silver miner – by Garbriel Friedman (Financial Post – November 15, 2018)

In a deal that highlights the importance of social licence in mining, Vancouver’s Pan American Silver Corp. announced Wednesday it will purchase Tahoe Resources Inc., seizing the moment to buy a company whose stock has been in freefall amid ongoing controversies in the communities in which it operates.

Under the terms of the US$1.1 billion deal, Pan American will pay up to US$275 million in cash and an additional US$800 million in shares. That values Tahoe shares at US$3.40 — a 35 per cent premium on its 20-day volume-weighted average price — or 0.2403 of a Pan American share per Tahoe share.

Pan American said in a press release that the acquisition would create the largest silver company in the world, and pointed to its own track record of building mines and operating in Latin America — an area where Tahoe has been beset by violent conflict and legal challenges. Continue Reading →

Sherritt International sees jump in nickel production and profit – by Amanda Stutt ( – November 12, 2018)

Sherritt International, (TSE: S) has released its 2018 Q3 report, and the numbers are up, thanks to the success of the company’s Moa joint venture (JV) with the Cuban Government.

Sherritt specializes in mining and refining of nickel and cobalt from lateritic ores, and the company also has projects and operations in Canada and Madagascar.

Pathe says the jump in numbers was largely due to higher realized nickel and cobalt prices. Cobalt is mined as a by-product of nickel, and acts as a stabilizing component in the lithium-ion battery cell structure. The average-reference price for nickel improved 26% from last year to $6.01/lb while the average-reference price for cobalt increased 22% to reach $35.21/lb. Continue Reading →

Vancouver’s Pan American Silver to acquire struggling Tahoe Resources in US$1.1-billion deal – by Niall McGee (Globe and Mail – November 15, 2018)

Vancouver’s Pan American Silver Corp. is buying U.S. competitor Tahoe Resources Inc. in an unusually structured US$1.1-billion deal aimed at resurrecting struggling Tahoe.

Nevada-based Tahoe’s shares soared nearly 50 per cent after the deal was announced Wednesday. The company’s shares had been trading near an all-time low and it has been under severe selling pressure from shareholders since last year when it was forced to stop production at its flagship mine in Guatemala after a legal setback.

In July, 2017, the Supreme Court of Guatemala suspended Tahoe’s licence at its Escobal silver mine after ruling local Indigenous populations weren’t adequately consulted before the licence was issued. Continue Reading →

Rio Tinto joins race for Teck’s copper project stake: sources – by Clara Denina (Reuters U.S. – November 14, 2018)

LONDON (Reuters) – Rio Tinto is among parties making a final offer for a minority stake in Teck Resources Ltd’s Quebrada Blanca copper mine expansion in northern Chile, a development worth $4.8 billion, two sources close to the matter said.

The world’s second largest mining company is eager to boost its copper assets, with the metal viewed in the industry as having one of strongest outlooks. Existing reserves are dwindling and increased electrification means demand is likely to be strong.

Canada’s Teck (TECKb.TO) (TECK.N) has said a development partner could contribute $2 billion for a 30 percent to 40 percent stake in the copper project, an investment deal it expects to close in the fourth quarter. Continue Reading →

NEWS RELEASE: Pan American Silver and Tahoe Resources Create the World’s Premier Silver Mining Company (November 14, 2018)

VANCOUVER, Nov. 14, 2018 /CNW/ – Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) (“Pan American”) or the “Company”) and Tahoe Resources Inc. (NYSE:TAHO) (TSX:THO) (“Tahoe”) today announced that they have entered into a definitive agreement for Pan American to acquire all of the outstanding shares of Tahoe pursuant to a plan of arrangement (the “Transaction”), creating the world’s premier silver mining company.

Shareholders of Tahoe will be entitled to elect to receive common shares of Pan American and/or cash in exchange for their shares of Tahoe. Additional consideration will be in the form of the right to a contingent payment in common shares of Pan American tied to the restart of the Escobal mine in Guatemala.

Highlights of the combined entity:

  • World-class primary silver asset portfolio, diversified across the Americas.
  • World’s largest silver reserve base and silver measured and indicated resource base.
  • Largest publicly-traded silver mining company by free float.
  • Superior operating metrics with industry-leading production, growth and margins. Continue Reading →

Amid mining slump, industry veteran Sean Roosen sees light at the end of the tunnel – by Niall McGee (Globe and Mail – November 12, 2018)

Sean Roosen’s motto is “SUDS.” It stands for “shut up and drill, stupid!” The mining executive says it’s a message his industry needs to embrace as it battles through another slump.

Environmental protectionism has gone too far, mining permits need to be more easily obtained and there’s too much interference from non-governmental organizations (NGOs), which he says “do nothing” for the economy.

The loud, burly career miner is no slick Bay Street executive. He calls himself a “hillbilly.” But he’s someone who people listen to. Mr. Roosen heads up one of a handful of Canadian mining royalty companies, but he’s best known as part of a trio who founded, developed and built Canadian Malartic, Canada’s biggest gold mine. In the process he pioneered a new method of mining that revolutionized the notoriously slow-to-innovate industry. Continue Reading →

Supreme Court opens door to national securities regulator – by Tim Kiladze, Sean Fine and Alexandra Posadzki (Globe and Mail – November 10, 2018)

The fate of a unified, pan-Canadian securities regulator rests with provincial leaders after the Supreme Court of Canada unanimously endorsed legislation to create one. The question now is whether there remains the political will to finish the project, a quest that goes back to 1935.

On Friday, the Supreme Court gave its blessing for a pan-Canadian regulator, which would govern the country’s financial industry, to be known as the Capital Markets Regulatory Authority (CMRA).

Canada is the only Group of 20 country that does not have a national securities regulator. Its proponents have struggled to create one for decades because of political tension between the provinces and Ottawa, as well as the intricacies of the country’s constitutional law. Continue Reading →

Active participants: A new study finds greater native involvement in resource projects – by Greg Klein (Resource Clips – November 7, 2018)

Trans Mountain—it’s likely been Canada’s biggest and most discouraging resource story this year. The subject of well-publicized protests, the proposed $9.3-billion pipeline extension met federal court rejection on the grounds of inadequate native consultation.

But any impression of uniform aboriginal opposition to that project in particular or resource projects in general would be false, a new report emphasizes. In fact native involvement increasingly advances from reaping benefits to taking active part, with corresponding advantages to individuals and communities.

That’s the case for the oil and gas sector, forestry, hydro-electricity and fisheries, with mining one of the prominent examples provided by the Montreal Economic Institute in The First Entrepreneurs – Natural Resource Development and First Nations. Continue Reading →

Randgold CEO Says New Barrick to Focus on Cash-Generating Assets – by Rupert Rowling (Bloomberg News – November 6, 2018)

Randgold Resources Ltd. Chief Executive Officer Mark Bristow said the company formed by its merger with Barrick Gold Corp. will focus on high-quality assets to generate cash to boost dividends and shareholder value.

The merger between Barrick and Randgold will also provide momentum for further consolidation within the gold industry, which needs to better compete for global investors, Bristow said in an interview after the release of his company’s third-quarter results.

Key Insights

It’s clear that Bristow, who will become CEO of new Barrick, will employ the same game plan that made Randgold the darling of gold-mining investors. That means focusing on the five tier-1 assets the enlarged company will have in its portfolio and sweating them for cash. Continue Reading →

Large Canadian gold miners ‘to finish year strong’ despite lower prices – EY ( – November 7, 2018)

Despite lower gold prices in the second and third quarters of the year, Canada’s large-cap gold companies are trending towards a stronger second half and most of them are looking to finish the year strong, EY Canada Mining and Metals transaction leader Jay Patel said on Tuesday.

The gold price decreased by 5% in the third quarter, consistent with the decline in the second quarter, mainly owing to the strong US dollar and the recent Federal Reserve rate hike in September.

Patel said that improving grades and production ramp-ups helped senior gold companies to maintain their production guidance for the year, following a challenging second-quarter performance. Continue Reading →

Randgold ready to mediate in Acacia’s Tanzania row before Barrick tie-up – by Zandi Shabalala (Reuters Canada – November 6, 2018)

LONDON (Reuters) – Randgold Resources (RRS.L) said on Tuesday it would mediate in a tax dispute between Tanzania and Acacia Mining (ACAA.L), a firm in which Randgold investors will have a stake if its planned merger with Barrick Gold (ABX.TO) is approved by shareholders.

Randgold Chief Executive Mark Bristow, who will lead the group after the Barrick tie-up, also told Reuters that Barrick could dispose of its Zambian copper mine after the merger.

In Tanzania, the government has accused Acacia, which is 63.9 percent owned by Barrick, of tax evasion and has slapped it with a $190 billion tax charge and banned any exports of unprocessed gold. Acacia denies any wrongdoing. Continue Reading →

On the Frontier: Teck advances milestone new oilsands mine in a new era of energy development – by Deborah Jaremko, Jim Bentein and Nelson Bennett (JWN – November 6, 2018)

Work that challenged the established borders of Alberta’s bitumen resource led to the development of Teck’s proposed Frontier oilsands mine. Now the company’s decision to move Frontier through the regulatory process is challenging the view of some that the oilsands is in sunset mode.

Teck is Canada’s largest diversified mining company, with operations worldwide that produce primarily copper, metallurgical coal and zinc. It has total assets worth more than $36 billion and more than 13,000 employees. It is a major force on the global mining scene, but new to the oilsands space.

Teck officially became an oilsands producer earlier this year when the Fort Hills mine went into commercial service, but the company has been advancing its oilsands interests for more than a decade. The miner owns 21.13 percent of Fort Hills along with operator Suncor Energy (54.11 percent) and Total SA (24.58 percent). Continue Reading →

The First Entrepreneurs: Income of First Nations with resource deals exceed national averages – by Geoffrey Morgan (Financial Post – November 6, 2018)

The report found that First Nations people working in the mining sector
had a median 2016 annual income of $91,572, double the nationwide First
Nations median of $43,812 per year, and well above the $53,648 per year
for non-Indigenous people.

Similarly, First Nations members working in the oil and gas sector earned
close to three times the average personal income of First Nations people
across the country, earning an average of nearly $150,000 in 2016,
compared with $51,500 outside the industry.

Reconciliation is not just atoning for past misdeeds but there also needs to be economic reconciliation, according to the Montreal Economic Institute

CALGARY — A dramatic change in First Nations’ approaches to natural resources development has led, in certain cases, to rising incomes in Indigenous communities where members now out-earn national averages.

The Montreal Economic Institute found in a study released Tuesday that First Nations communities and members involved in resource development earn multiples of what both Indigenous and non-Indigenous people earn in other industries. Continue Reading →

Barrick shareholders approve Randgold acquisition – by Niall McGee (Globe and Mail – November 6, 2018)

Barrick Gold Corp. is one step closer to closing its biggest acquisition in seven years with shareholders voting overwhelmingly in favour of its $6-billion (U.S.) takeover of Randgold Resources Ltd.

On Monday, roughly 99 per cent of shareholders voted in favour of its zero-premium, all-stock purchase of Jersey-based Randgold, which operates in Africa.

Unlike Barrick’s $7.3-billion purchase of copper miner Equinox Minerals Ltd. in 2011, which was blamed for destroying billions in shareholder value, this deal has been warmly welcomed by shareholders on both sides since it was announced in late September. Continue Reading →

Tanzania deaths spark criticism of grievance process at Barrick subsidiary – by Geoffrey York (Globe and Mail – November 6, 2018)

Barrick Gold Corp., entering the final stages of its US$6-billion takeover of Africa-focused Randgold Resources Ltd., is facing fresh questions about unresolved grievance claims for dozens of deaths and injuries among villagers around a subsidiary’s mine site in Tanzania.

Barrick subsidiary Acacia Mining says it has sharply reduced the number of violent clashes between Tanzanian police and local villagers who enter its North Mara site in search of waste rock, from which they can extract small bits of gold.

But while the deaths and injuries may have declined, Acacia is still grappling with complaints that its grievance procedure is unfair and has failed to provide proper compensation for the injured and the families of people who were killed. Continue Reading →