Archive | Canada Mining

Alamos Gold suspends Turkish mine construction – by Niall McGee (Globe and Mail – October 15, 2019)

https://www.theglobeandmail.com/

Canadian mining company Alamos Gold Inc. is suspending construction of a new Turkish gold mine after it failed to obtain a timely renewal of a mining concession.

The development comes a few months after thousands of protesters flooded the area in the vicinity of the proposed mine in northwestern Turkey, taking issue with deforestation and the company’s planned use of the chemical cyanide at the site.

The mining concession expired on Sunday and Alamos says it is working with the Turkish department of energy and natural resources to try to obtain the renewal of the concession. Continue Reading →

Workers at Fura emerald mine in Colombia labor in unsafe conditions: ex-employees – by Julia Symmes Cobb (Reuters U.S. – October 9, 2019)

https://www.reuters.com/

COSCUEZ, Colombia (Reuters) – Workers at the Colombian emerald mine run by Canada’s Fura Gems’ – the first publicly-traded emerald miner operating in the South American nation – have been laboring in unsafe conditions and sometimes lack basic safety equipment, according to four former employees.

Fura set out early last year to revive production at the fabled, four-century-old Coscuez mine, once the Andean country’s largest producer of the gem.

The Toronto-based company promised to operate by the book in a province known for organized crime and dangerous wildcat mining but the sources – who asked not to be identified for fear of reprisals – said it had been falling short. Continue Reading →

Iamgold Sale Stalls as Chinese Bidders’ Talks Fail – by Vinicy Chan, Harry Brumpton and Scott Deveau (Bloomberg News – October 9, 2019)

https://www.bloomberg.com/

The sale of Iamgold Corp. has stalled after the mid-tier Canadian gold miner failed to reach an agreement with several Chinese suitors, people with knowledge of the matter said.

Chinese gold producers including China National Gold Group Corp., Shandong Gold Mining Co. and Zijin Mining Group Co. had all shown interest in Iamgold, said the people, who asked not to be identified as the information is private. But discussions stumbled over price as well as concerns related to ongoing Sino-Canada political tensions, the people said.

Though talks have stalled, it’s still possible a suitor may re-enter with a better offer, according to one of the people. The Canadian company could also decide to pursue other options, such as selling a stake in its Cote project, the people said. Representatives for Iamgold, China National Gold, Shandong Gold and Zijin Mining declined to comment. Continue Reading →

Hunt for Palladium Riches Sends South African Miners Abroad – by Felix Njini (Bloomberg News – October 8, 2019)

https://finance.yahoo.com/

(Bloomberg) — Southern Africa is home to the world’s richest platinum deposits, but when Impala Platinum Holdings Ltd. pondered how to invest its windfall profits it chose North America instead.

The acquisition of North American Palladium Ltd. is partly a bet on platinum’s sister metal palladium continuing to rally, while Implats Chief Executive Officer Nico Muller has also stressed the appeal of a relatively quick payback from low-cost, mechanized assets. However, the deal is also a geopolitical play as the Johannesburg-based miner seeks to balance exposure to its more volatile home region.

“The diversification into North America provides a hedge against some of the socio-economic, political and structural risks the company faces in South Africa and Zimbabwe,” said Christopher Nicholson, an analyst at RMB Morgan Stanley. Continue Reading →

China tightens grip on Ivanhoe’s massive congo copper project – by Cecilia Jamasmie (Mining.com – October 8, 2019)

https://www.mining.com/

Zijin, one of China’s largest mining groups, is increasing its stake in Canada’s Ivanhoe Mines (TSX:IVN) to 13.88% from 9.8% by acquiring 35.7 million shares from CITIC Metal and 12.9 million shares from founder Robert Friedland for about C$194 million ($146m).

The move means that Friedland’s interest in the company has shrunk to 13.2%, leaving the two Chinese companies as main shareholders.

Zijin, China’s No.1 gold producer and Ivanhoe’s partner in the massive Kamoa-Kakula copper deposit in the DRC, first acquired a stake in the Vancouver-based miner in 2015. Citic Metal followed suit last year, becoming Ivanhoe’s largest shareholder. Its ownership will fall to 26.4% with today’s transaction. Continue Reading →

Brookfield unit to sell North American Palladium in $1-billion deal – by Niall McGee and David Milstead (Globe and Mail – October 8, 2019)

https://www.theglobeandmail.com/

Canadian palladium miner North American Palladium Ltd. agreed to a $1-billion takeover in an unusual deal that sees its biggest shareholder, Brookfield Business Partners LP, accept a discount in order to get the transaction done.

Toronto-based North American Palladium said Monday that it had reached a friendly agreement with South Africa’s Impala Platinum Holdings Ltd. Public shareholders of North American Palladium will get $19.74 a share, exactly the level the shares closed at on Friday. Brookfield Business Partners and the institutions that invested alongside it, however, will receive only $16 a share for the 81-per-cent stake they hold – a 19-per-cent discount.

Brookfield appears eager to lock in its gains from a turnaround at the mining company and strong prices for the metal, which is used in vehicles to minimize toxic emissions. Takeover talks with Impala intensified in July and shares in North American Palladium ran up by 35 per cent over the next few months. Continue Reading →

NEWS RELEASE: Canadian Mining Hall of Fame to Induct Four New Members in 2020

TORONTO, October 8, 2019 — On January 9, 2020, the Canadian Mining Hall of Fame (CMHF) will welcome four new individuals who have made incredible and lasting contributions to Canada’s mining industry: P. Jerry Asp, Alex G. Balogh, Hans T.F. Lundberg and Eberhard (Ebe) Scherkus.

For the past 32 years, the CMHF has recognized 186 exemplary men and women who have demonstrated outstanding achievement, leadership and inspired future generations in mining. Canadian mining leaders set the standard for the global industry and these individuals reflect the very best of mining excellence, determination and skill.

“The Canadian Mining Hall of Fame is proud to recognize four leaders who drove the Canadian mining industry forward and greatly contributed to Canadian society overall,” says Jon Baird, Canadian Mining Hall of Fame Chair. “Each of these inductees, representing different facets of our industry, is an exemplary leader who future generations can follow, while they work to grow and sustain responsible mining in Canada and beyond.” Continue Reading →

[North American Palladium] With palladium rising to record highs, a $1-billion deal for a darling of the Canadian exchange – by Gabriel Friedman (Financial Post – October 8, 2019)

https://business.financialpost.com/

Toronto-based North American Palladium on Monday presented shareholders with a $1 billion buyout proposal from a larger South African rival just as its namesake metal touches record high prices.

Under the deal, Johannesburg-based Impala Platinum Holdings Ltd. struck an agreement to pay the private equity firm Brookfield Business Partners $570 million for its 81 per cent stake in the company, or $16 per share.

Meanwhile, it is offering $19.74 per share to minority shareholders, which the company called a 15 per cent premium on the 30-day weighted average price, but was exactly the price the stock closed at on Friday. Continue Reading →

South Africa’s Impala to buy North American Palladium for about $750 million – by Tanisha Heiberg (Reuters U.S. – October 7, 2019)

https://www.reuters.com/

(Reuters) – South Africa’s Impala Platinum Holdings Ltd (Implats) (IMPJ.J) said on Monday it would buy Canada-based North American Palladium Ltd (PDL.TO) for about C$1 billion ($751.77 million), marking the miner’s first purchase outside of Africa.

Prices for Palladium XPD=, widely used in vehicle exhausts to reduce harmful emissions, have doubled from a low in August last year as tighter environmental regulations force carmakers to buy more of the precious metal.

“(The acquisition) not only signals our confidence in the prevailing platinum group metals (PGM) market but it also expedites our transition to a high-level multinational producer,” Implats Chief Executive Officer Nick Muller said on a media call. Continue Reading →

COLUMN-United States races to build critical minerals alliances – by Andy Home (Reuters U.S. – October 7, 2019)

https://www.reuters.com/

LONDON, Oct 7 (Reuters) – President Donald Trump’s offer to buy Greenland didn’t go down well with either the inhabitants of the world’s largest island or with Denmark, which administers it as an autonomous territory.

The Danish prime minister Mette Frederiksen described the idea as “absurd”, triggering a diplomatic fall-out as Trump decided to cancel a planned visit to Denmark.

The idea may be many things but, from a U.S. perspective, it is not “absurd”. There are two completely rational drivers for eyeing up Greenland – its strategic location for North Atlantic shipping and its untapped mineral reserves. Continue Reading →

OPINION: Mining companies must show how they are prioritizing sustainable and inclusive growth to redefine their image – by Paul Mitchell (Globe and Mail – October 4, 2019)

https://www.theglobeandmail.com/

Paul Mitchell is the EY Global Mining & Metals Leader. He recently toured Canada speaking to executives in the mining and metals sector. He is based in Sydney, Australia.

Canada’s mining and metals sector is going through an intense period of transformation. Digital advances aren’t the only factors redefining the sector’s future. Growing public conversation and focus on social responsibility are influencing decisions at the executive table. For the second year in a row, miners cited licence to operate as the number one risk and opportunity facing their business.

A number of key elections and resulting government changes or potential ones to come – particularly in Africa and Latin America – are heightening this risk. Future regulation around mining licences or royalties are unknown in certain parts of the world as governments face pressure to balance economic gains with the interests of their people.

End consumers are increasing pressure on the sector, demanding ethical supply chains and a lower carbon footprint. But it’s not just the general public that’s increasing pressure. Continue Reading →

Investors bought Cobalt 27 for its massive stockpile — now they’re being asked to cash out just as cobalt prices are poised to surge – by Gabriel Friedman (Financial Post – October 4, 2019)

https://business.financialpost.com/

Cobalt 27 Capital Corp., which raised hundreds of millions of dollars promoting cobalt — an obscure metal that’s increasingly in demand because of its use in electric vehicle batteries — announced a new proposal this week to ditch cobalt just as its price rises.

On Tuesday, the company said its largest shareholder Pala Investments Ltd. would offer $4 per share for the company’s cobalt assets up from its earlier $3.57 offer, and also give them equity in a new company, Nickel 28.

“We have responded to the concerns expressed by shareholders and believe we have delivered a significantly improved transaction,” Philip Williams, chairman of Cobalt 27’s special committee said in a press release. Continue Reading →

Centamin’s CEO to leave after challenging year for the company – by Cecilia Jamasmie (Mining.com – October 3, 2019)

https://www.mining.com/

Shares in Egypt-focused gold miner Centamin (LON:CEY) (TSX:CEE) fell on Thursday more than 15% to 105.65 in London after it announced that its chief executive, Andrew Pardey, would leave the company following a year of operational challenges.

Pardey, who joined the company 12 years ago as general manager, will stay at the post for a year, while Centamin looks for a new boss.

The company also warned that production for the first nine months of 2019 is expected to be between 331,000 and 332,000 ounces. While lower than what originally expected, the company said the lower end of its full-year guidance range of 490,000 ounces of gold remains “achievable.” Continue Reading →

Newmont’s New CEO Plans to Dispense More Discipline Than Cash – by Vinicy Chan and Steven Frank (Bloomberg News – October 2, 2019)

https://www.bloomberg.com/

(Bloomberg) — Tom Palmer took the helm at the world’s largest gold miner shortly after bullion had its longest streak of quarterly gains since 2011. Now investors are looking to partake of that windfall.

But before shareholders get their piece of the pie, the new chief executive officer at Newmont Goldcorp Corp. will have to face the challenge of melding the assets from the recently completed mega-merger with Goldcorp Inc.

Newmont’s shares have trailed its peers, even with gold’s meteoric rise that took the metal to a six-year high of $1,557.11 an ounce last month. The stock’s rally this year is just less than a third of the pace of gains posted by its closest rival Barrick Gold Corp., which also sealed a massive merger deal. Continue Reading →

Iamgold makes discovery at Karita project in Guinea (Northern Miner – October 1, 2019)

Global mining news

Iamgold (TSX: IMG; NYSE: IAG) has confirmed a new grassroots exploration discovery at its Karita gold project in northeastern Guinea.

The project sits along a portion of West Africa’s Senegal-Mali Shear Zone, 8 km south of the company’s Boto gold project and 3 km north of its Diakha-Siribaya project. The company reported assays from 16 reverse circulation (RC) drill holes totalling 1,839 metres that were completed as part of its 2019 drill program.

Highlights include 13 metres grading 2.8 grams gold per tonne starting from a depth of 37 metres in hole 19-001; 29 metres grading 2.96 grams gold per tonne from nine metres in hole 19-006; 16 metres grading 3.17 grams gold per tonne from 40 metres in hole 19-009; 22 metres grading 2.27 grams gold per tonne from 20 metres in hole 19-010; and 21 metres grading 9.01 grams gold per tonne from 53 metres in hole 19-011. Continue Reading →