Archive | Canada Mining

Battery makers descend on Australia, Canada cobalt developers – by Melanie Burton and Nicole Mordant (Reuters U.S. – March 19, 2018)

MELBOURNE/VANCOUVER (Reuters) – Nervous Asian battery makers are turning to early-stage cobalt projects in Australia and Canada to lock in supplies of the critical battery ingredient ahead of expected shortages as demand for electric vehicles revs up.

Mine developers say interest from Japanese and Korean firms is particularly strong as they compete with rivals from China, which has built deep supply chain ties with the Democratic Republic of Congo, the world’s top producer.

The central African country accounts for nearly two-thirds of global cobalt output and production is set to rise despite concerns over the use of child miners and rising royalties. “We are starting to see the first signs of an arms race to secure long term cobalt supplies,” said Joe Kaderavek, chief executive of Australia’s Cobalt Blue (COB.AX). Continue Reading →

[Canada] Implementation of national securities regulator questioned as summer deadline nears Alexandra Posadzki (Globe and Mail – March 19, 2018)

The year 2018 was promised as the time that Canada’s patchwork system of provincial securities regulators would be consolidated under a single regulatory body.

The effort to create a co-operative, pan-Canadian regulator, dubbed the Capital Markets Regulatory Authority, or CMRA, has been fraught with legal challenges, delays and interprovincial bickering.

Currently, there are five provinces and one territory – Ontario, British Columbia, Saskatchewan, Prince Edward Island, New Brunswick and the Yukon – that have agreed to participate, while Quebec and Alberta staunchly oppose the plan. Continue Reading →

Hecla Mining buying Klondex for US$462M, to spin out Canadian assets – by Ian Vandaelle (Business Network News – March 18, 2018)

Hecla Mining is buying Klondex Mines for US$462 million in a cash and stock. Under the terms of the deal, Klondex shareholders will receive US$2.47 per share, a 59 per cent premium to Klondex’s volume-weighted average price over the last 30 days.

“This transaction is an excellent outcome for Klondex and our shareholders, delivering premium value and a clear pathway to develop and optimize the Nevada mining assets and create further value in the future,” Klondex President and Chief Executive Officer Paul Huet said in a press release.

The crown jewels of the deal are Klondex’s mines in Nevada — Fire Creek, Midas and Hollister — which will increase Hecla’s annual production by 162,000 gold equivalent ounces. All-in costs per ounce at those mines came in at US$1,084 last fiscal year, far below the $1,767 at its True North mine 250 kilometers northeast of Winnipeg. Continue Reading →

Cape Breton Miners’ Museum to install simulator to recreate mining experience (CBC News Nova Scotia – March 14, 2018)

Museum will receive $1.5M from federal government for upgrades

The Cape Breton Miners’ Museum has received just over $1.5 million for upgrades to recreate the mining experience. “This is like a dream come true,” said museum executive director Mary Pat Mombourquette.

“This is going to help us create a vital, dynamic museum that will immerse our visitors in the coal-mining experience. I can’t wait to start making it happen.”

The money from the Atlantic Canada Opportunities Agency and Heritage Canada will pay for the construction of a briefing room and a lamp house, recreating a miner’s daily trip to and from the mine. The museum in Glace Bay, N.S., already famously features a guided tour of an actual underground coal mine. Continue Reading →

‘Ironic twist’: #MeToo strikes mining industry in its own way after PDAC scraps panel on women – by Gabriel Friedman (Financial Post – March 16, 2018)

The biggest mining conference of the year cancelled its session on “tackling gender bias” in the sector

Maria Ezpeleta was planning to fly to Toronto earlier this month to speak about the impact of mining projects on women when she heard the news: The panel session, on “tackling gender bias” in the mining sector, was called off.

In an ironic twist, the discussion of gender bias had been ensnared by #MeToo — the growing movement to stop sexual harassment — because new accusations were surfacing against men linked to Ezpeleta’s organization, Oxfam.

The Prospectors and Developers Association of Canada, which hosts one of the oldest and largest mining conferences in the world, scrapped the session from this year’s agenda, citing negative news surrounding panel organizer Oxfam, a U.K. charity, which faces allegations it covered up for ex-workers in Haiti accused of using prostitutes. Continue Reading →

COLUMN-Aluminium through the looking glass after Trump’s tariffs – by Andy Home (Reuters U.K. – March 13, 2018)

LONDON, March 13 (Reuters) – In a little more than a week’s time the United States will impose a tariff of 10 percent on all aluminium imports and 25 percent on all steel imports.

Except for those from Canada and Mexico. For now. Their exemptions have been folded into separate negotiations on the North American Free Trade Agreement.

Other countries may receive exemptions as well, depending on who qualifies as a “real” friend in the eyes of U.S. President Donald Trump. So far, only “our ally, the great nation of Australia” has been given the Presidential nod. Continue Reading →

NEWS RELEASE: Local 793 objects to Canada signing Trans Pacific Partnership

NEWS PROVIDED BY International Union Of Operating Engineers – Local 793

OAKVILLE, ON, March 12, 2018 /CNW/ – Mike Gallagher, business manager of Local 793 of the International Union of Operating Engineers, says the federal Liberals have made a mistake by signing the Comprehensive and Progressive Trans Pacific Partnership (CPTPP).

“By signing this deal, the Liberals are failing to protect construction workers in this country. There are provisions in this trade pact that can be exploited by foreign construction companies at the expense of Canadian workers and our economy.”

“This deal, in our opinion, could open the door to under-skilled and under-paid temporary foreign workers being allowed to enter Canada to work – something that is unacceptable to our union.”

Gallagher said the CPTPP does not have a Canada-first provision and there is nothing in the deal to prevent a construction project being built in Canada by a foreign company with foreign workers. Continue Reading →

Despite tariff reprieve, aluminum industry expected to keep investment under wraps – by Niall McGee (Globe and Mail – March 12, 2018)

After receiving a stay of execution on punitive import tariffs imposed by the United States the Canadian aluminum industry can breathe a little easier, but companies are unlikely to make major investment decisions under the status quo.

On Thursday, U.S. President Donald Trump exempted Canada and Mexico from new 10-per-cent aluminum tariffs that will soon apply to the rest of the world. The final outcome for Canada will depend on how the ongoing North American free-trade agreement talks proceed, the President said.

Mr. Trump justified the tariffs on national security grounds, specifically the need to secure a domestic supply of metals such as aluminum, for the manufacture of military equipment. Continue Reading →

Junior miners seek funding from seniors as bought deal popularity fades – by Nial McGee (Globe and Mail – March 9, 2018)

Junior mining companies are increasingly turning to senior firms for capital, as traditional bought-deal financing becomes a riskier gambit in a difficult market for commodity plays.

Bought deals, which see investment dealers purchase stock from an issuer at a discount and then flip those securities to third-party investors, are getting harder to pull off. It’s a trend that is especially evident among junior miners – those most in need of equity capital.

Last year, even in the midst of a rebounding initial public offering market and a buoyant environment for mergers and acquisitions, the value of mining bought deals cratered. Continue Reading →

‘The risk takers have gone’: Junior gold companies irked by bitcoin and cannabis stocks’ hotness – by Gabriel Friedman (Financial Post – March 8, 2018)

On Tuesday morning, Chris Haldane, of Marathon Gold Corp., was looking at the price of gold and looking at his stock price: Gold had climbed US$17 per ounce, but the company stock was barely moving.

“It just seems like the junior gold space has gone into a pause mode,” said Haldane, who handles investor relations for Marathon, and had just issued a press release touting positive drill results for its prospective gold camp in Newfoundland.

The likely culprit: cannabis, bitcoin and the many cryptocurrencies out there. Although no one could point to any formal studies, there was wide consensus on the trade show floor at the Prospectors and Developers’ Association Conference in downtown Toronto this week, that junior mining gold companies have lost some of their mojo this cycle as a result of the flood of speculative capital that’s pouring into cannabis and cryptocurrency stocks. Continue Reading →

Canada, Mexico to gain temporary exemption from U.S. tariffs on steel – by Adrian Morrow, Lawrence Martin and Rachelle Younglai (Globe and Mail – March 8, 2018)

Canada and Mexico will be spared from President Donald Trump’s tariffs on steel and aluminum while the three countries renegotiate NAFTA, with a permanent exemption if they agree to a deal that satisfies the President, the White House said on Wednesday.

The move allows Mr. Trump to avoid slamming the heavily integrated continental steel and aluminum industries while still using the threat of tariffs to crank up the pressure on his negotiating partners to agree to his protectionist demands at the bargaining table.

The President took to Twitter on Thursday morning to say he would hold a meeting at 3:30 p.m. at the White House over the planned tariffs of 25 per cent on steel and 10 per cent on aluminum, and that the United States must show flexibility toward its allies. Continue Reading →

Mining companies increasingly tapping private equity for capital – by Niall McGee (Globe and Mail – March 7, 2018)

Facing a funding shortfall and apathy from public investors, mining companies are increasingly turning to private equity for much-needed capital.

But this alternative and growing funding source is unlikely to prove to be a panacea for the entire industry.

The latest generation of specialized mining private-equity firms is known for being extremely picky, taking months before pulling the trigger on deals, and insisting on tough terms. Continue Reading →

Why investors should start paying attention again to mining – by Ian McGuggan (Globe and Mail – March 8, 2018)

Investors should once again start paying attention to mining. Those are brave words. Over the past decade, mining companies have made a bonfire of shareholders’ hopes. The surest path to outperformance during that period has been to run from anyone wielding a geological map.

But if there was one overarching message to be gleaned from the Prospectors and Developers Association of Canada convention in Toronto, it was that the industry is inching back.

Attendance at the four-day event, which wound up on Wednesday, topped 25,600 people, up about 6 per cent from the preceding year. Meanwhile, the initial public offering of Brazilian zinc miner Nexa Resources SA, which raised just under US$500-million last October, provided real-world evidence that investors are once again willing to put money into the right deal. Continue Reading →

Canadian Gold Mining Has Potential To Be #2 In The World – Wood Mackenzie – by Neils Christensen (Kitco News – March 7, 2018)

Kitco News) – Mining investors might want to pay more attention to Canadian projects as the country is expected to have strong production growth in a world that is seeing a decline in the quality of gold deposits, according to one search firm.

In a presentation during the 2018 Prospectors & Developers Association of Canada (PDAC) convention, Vince Madden-Scott, manager of gold cost services at Wood Mackenzie said that his firm sees Canada’s gold production pushing above 300 metric tonnes within the next five years, an increasing 80% from current production levels.

WoodMac’s projections would make Canada the world’s second-largest gold producing nation, behind China. Currently, Canada is the fifth largest producer in the world, Australia, Russia, and the U.S. all recorded higher gold production last year. Continue Reading →

‘Suds’ strategy pays through the drill bit as Osisko aims at replicating Canadian Malartic success – by Henry Lazenby ( – March 8, 2018

TORONTO ( – Celebrated Canadian precious metals firm Osisko Mining is aiming to replicate the success of its 9.4-million-ounce Canadian Malartic gold mine discovery – currently Canada’s largest producing gold mine – at its flagship Windfall Lake property, located in the Abitibi greenstone belt of Quebec.

The company relies on its somewhat quirky-yet-imminently-effective strategy called ‘Suds’, which is an acronym for “shut up and drill stupid”, chairperson Sean Roosen told a packed audience of miners and financiers during the recent Prospectors and Developers Association of Canada 2018 convention, in Toronto.

Osisko has had a colourful history, coming full circle from exploration and development, to royalties and financing, and back to exploration and likely development again. Continue Reading →