Archive | Canada Mining

Goldcorp Says Peru and Nevada Would Make Portfolio Perfect – by Danielle Bochove (Bloomberg News – May 22, 2018)

Goldcorp Inc. Chief Executive Officer David Garofalo says he’s happy with his company’s portfolio of assets, but that doesn’t mean he doesn’t have a wish list.

In an ideal world, the company would have an asset in Nevada’s Carlin Trend. “If you’re an Americas-based gold company, you should be there. Barrick and Newmont are there and we should be there,” he said in an interview in Toronto, adding he’d also like to acquire something in Peru. “Those are the two holes in our portfolio geopolitically I’d love to be able to fill in due course.”

Barrick Gold Corp. and Newmont Mining Corp., the two largest producers of the precious metal, both have significant assets in Nevada and mines in Peru. Continue Reading →

Canadian Diplomats Under Scrutiny in Anti-Mining Activist’s Death – by James Munson (Bloomberg News – May 21, 2018)

What are the responsibilities of diplomatic staff when they know an environmental activist is in danger overseas?

That’s what a judicial review in Canada is trying to determine in its investigation into the death of environmental activist Mariano Abarca, who was shot and killed Nov. 27, 2009, outside a restaurant in Chicomuselo, Chiapas, in southern Mexico.

Abarca was a vocal opponent of the Payback mine outside the mountain community of Chicomuselo in the Mexican state of Chiapas, where the now-defunct Blackfire Exploration Ltd. mined for barite, a mineral used in oil and gas drilling. He criticized the mine’s environmental effects and led a regional network of communities affected by mines. Continue Reading →

Eritrea ‘poison pill’ complicates miner Lundin’s aspirations: sources – by Nicole Mordant and Susan Taylor (Reuters U.S. – May 17, 2018)

VANCOUVER/TORONTO (Reuters) – The weak human rights record of one of Africa’s poorest countries is coming between Lundin Mining Corp and its pursuit of a prized European copper and gold asset. Cash-rich Lundin’s latest run at fellow Canadian miner Nevsun Resources Ltd is designed to bag the Timok project in Serbia, but it had to bring on a partner to pick up Nevsun’s Bisha mine in Eritrea.

That is because Lundin Mining’s board of directors, chaired by billionaire resources tycoon Lukas Lundin, refuses to invest in Eritrea, according to four people familiar with, but not able to speak publicly on, the matter.

They will not own the Eritrean mine “for even one second,” one of the people said. That stance is not necessarily a deal breaker, said an investor who declined to be named. Continue Reading →

‘We’re right at peak gold’: All major deposits have been discovered, declares Goldcorp chairman – by Gabriel Friedman (Financial Post – May 17, 2018)

‘Are we not looking for it? Are we bad at finding it? Or have we found it all? My answer is we found it all’

Ian Telfer, chairman of Goldcorp Inc., is the latest industry magnate to predict the world has reached “peak gold,” saying that from here on out, mine production will continue to decline because all the major deposits have been discovered.

“If I could give one sentence about the gold mining business … it’s that in my life, gold produced from mines has gone up pretty steadily for 40 years,” said Telfer. “Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down.”

“We’re right at peak gold here,” he added. Although gold prices sank two per cent to US$1,289.86 per ounce this week, sliding below the psychologically significant US$1,300 mark for the first time this year, Telfer said that day that he remained “bullish” and predicted gold prices would surpass US$1,500 or US$1,600 per ounce before the end of the year. Continue Reading →

Tanzania cancels license of Barrick, Glencore nickel project – by Fumbuka Ng’wanakilala (Reuters U.S. – May 12, 2018)

DAR ES SALAAM (Reuters) – Tanzania has revoked a retention license for an undeveloped nickel project jointly owned by Barrick Gold Corp and London-listed miner Glencore Plc as part of enforcement of a new mining regime.

The license for the Kabanga nickel project in northwestern Tanzania was among 11 retention licences canceled by the government under the Mining (Mineral Rights) Regulations of 2018, which were approved in January.

A retention license is granted to holders of a prospecting license after they identify a mineral deposit within the prospecting area which is potentially of commercial significance but cannot be immediately developed due to technical constraints, adverse market conditions or other economic factors. Continue Reading →

Barrick makes small bet on junior with hope for big payoff – by Niall McGee (Globe and Mail – May 10, 2018)

Welcome to the era of the micro deal. In a transaction about as far away as one could imagine from the multibillion-dollar deals of the past great commodity boom, Barrick Gold Corp. is taking a tiny bet on a junior mining company.

On Wednesday, the world’s biggest gold producer announced a 19.9-per-cent investment in Vancouver-based Midas Gold Corp. worth US$38-million. Barrick is acquiring 46.5-million shares at $1.06 a share, a 9-per-cent premium to its Tuesday close.

It’s the latest example of a senior gold company making a so-called “strategic investment” in a junior, with the hope that it will eventually pay off in the form of much needed added production. Continue Reading →

Kinross Reels as Two More Africa Nations Seek Mining Payoffs – by Danielle Bochove and Aoyon Ashraf (Bloomberg News – May 9, 2018)

Kinross Gold Corp. is the latest miner to be hit by changing policies in Africa as governments seem increasingly willing to upend historic deals with foreign companies in their quest for more mining revenue.

Mauritania’s rejection of a key permit to expand a Kinross project, and a proposed mining code review in Ghana, dealt a double blow to the Toronto-based miner, sending its shares down the most intraday since 2014.

Ghana and Mauritania join a string of African countries — from Tanzania to Zambia to the Democratic Republic of Congo– that are trying to reap greater economic benefits from their natural resources. Continue Reading →

Pistorius prosecutor Gerrie Nel sets his sights on Ivanhoe Mines – by Geoffrey York (Globe and Mail – May 9, 2018)

South African prosecutor Gerrie Nel, famed for winning a murder conviction against Olympic hero Oscar Pistorius, has turned his sights on a company owned by Canadian mining tycoon Robert Friedland for alleged illegalities at its South African platinum mine.

Mr. Nel, who works for South African organization AfriForum, announced on Tuesday that he is considering the private prosecution of a subsidiary of Mr. Friedland’s company, Ivanhoe Mines Ltd., for alleged violations of environmental laws and other regulations.

Mr. Friedland has said that the $1.6-billion mine, which he is developing about 280 kilometres northeast of Johannesburg, will become the world’s largest and lowest-cost platinum mine. The mine’s first shaft reached a depth of 750 metres last month. Continue Reading →

Rio Tinto Tax Evasion Allegations Shouldn’t Scare Canadian Firms – by Peter Menyasz (Bloomberg News – May 7, 2018)

Companies shouldn’t be afraid to conduct legal tax planning, despite tax evasion allegations against a Canadian Rio Tinto subsidiary, practitioners said.

Vancouver-based Turquoise Hill Resources Ltd. allegedly avoided as much as $470 million in taxes on its copper and gold mine in Mongolia, according to a watchdog group. But the company insists it is in compliance with Canadian law.

The discrepancy highlights the complex nature of interpreting tax law, which varies widely across countries, practitioners said. And tax avoidance is a major focus for countries, particularly as they look at how to treat multinational tech firms. Continue Reading →

Overwhelmed railroads threaten Canadian export economy – by Jen Skerritt, Kevin Orland and Federic Tomesco (Toronto Star/Bloomberg – May 9, 2018)

WINNIPEG—Every day for more than six months, Jessica Raycraft has confronted hulking mounds of evidence of the great Canadian bottleneck. They’re stranded on her farm — wheat, peas and canola in 91-metre-long, 3-metre-high bags, an astonishing 50,000 bushels, enough to fill 15 rail cars.

“Nobody would take it,” Raycraft said from her home near Tramping Lake in Saskatchewan. It wasn’t until a few weeks ago that space finally opened up on freight trains, and then the fields were such a mess of mud from the spring melt that the bags were stuck. “We couldn’t move it.”

That pretty much sums up the problem with Canada. Its railroads are overwhelmed, threatening the country’s standing as a major exporter of commodities and slamming businesses — from relatively modest ones such as Raycraft’s to the likes of oil-giant Cenovus Energy Inc. — that have precious few transportation alternatives. Continue Reading →

Nevsun rejects $1.5-billion bid from Lundin, Euro Sun – by Niall McGee (Globe and Mail – May 9, 2018)

Canadian base metals miner Nevsun Resources Ltd. is in play. Lundin Mining Corp. and Euro Sun Mining Inc. have made an unsolicited $1.5-billion offer for the Vancouver-based company, but Nevsun has no interest in selling.

In a release on Monday evening, Lundin said that Nevsun had rejected its $5 a share offer despite numerous attempts to do a friendly deal. The proposal, which consists of a mix of cash and shares in both Lundin and Euro Sun, represents a 31-per-cent premium compared to Nevsun’s closing price on the Toronto Stock Exchange on Monday.

Shares in Nevsun had run up more than 10 per cent in the past few trading sessions on little or no news. On Friday alone, the stock rose 8.8 per cent. While the offer is well above Nevsun’s recent share price, it is below the level the stock traded at about three years ago. Continue Reading →

Lundin’s New Play for Serbia Copper Fueled by Dearth of Deposits – by Danielle Bochove and Scott Deveau (Bloomberg News – May 8, 2018)

Lukas Lundin is nothing if not tenacious. The 59-year-old chairman of Lundin Mining Corp. is making yet another play for the prized Timok copper-gold deposit.

On Monday, Lundin Mining and Euro Sun Mining Inc. announced a C$1.5 billion ($1.2 billion) bid for Nevsun Resources Inc., which owns the project in eastern Serbia. While the proposal isn’t binding and was rejected by Nevsun’s board, it would be the industry’s biggest takeover this year.

In what Nevsun says is a “complicated” structure, the deal would give Euro Sun the Bisha mine in Eritrea and the company’s cash balance, while Lundin would get its European assets, including Timok. Continue Reading →

NEWS RELEASE: MAC fetes Vale and IAMGOLD with 2018 TSM Excellence Awards

Projects raise the bar in environmental protection and community engagement

OTTAWA, May 8, 2018 /CNW/ – The Mining Association of Canada (MAC) has awarded Vale’s Sudbury Operations in Ontario and IAMGOLD’s Essakane Gold Mine in Burkina Faso with TSM Excellence Awards for their innovative sustainability projects. The companies were recognized with the awards yesterday at the CIM Awards Gala in Vancouver.

“We congratulate Vale and IAMGOLD for their outstanding projects. Together, they showcase what best practice looks like in our sector, whether it be spurring local economic development and entrepreneurship in communities where they operate or adopting innovative methods to restore mining areas back to nature,” said Pierre Gratton, President and CEO, MAC.

“These projects are making meaningful change in communities by restoring mined areas back to nature, and spurring local economic development and entrepreneurship. We can all learn from these projects and bring the knowledge to our own communities.” added David Walkem, Chief of the Cook’s Ferry Band, and Member of MAC’s COI Panel and TSM Excellence Awards Selection Committee. Continue Reading →

Pebble Mine: Taking the Battle to the Board Room – Again – by Joel Reynolds (Natural Resources Defense Council – May 07, 2018)

Bristol Bay Coalition Delivers Message of Unrelenting Opposition in Meetings with First Quantum Minerals in Toronto

Sometimes really bad ideas are hard to kill – especially these days. Take, for example, the Pebble Mine, which Environmental Protection Agency (“EPA”) Administrator Scott Pruitt rescued from its deathbed last May after cutting a deal with the project’s CEO. And just like that this reckless project had a new lease on life – and a new pitch for potential investors.

Last week in Toronto, together with a formidable delegation of leaders from the distant Bristol Bay region of southwest Alaska, my NRDC colleague Chris Tackett and I attended the shareholders’ annual general meeting (“AGM”) of Canadian mining company First Quantum Minerals and met with its Chair and CEO.

First Quantum, which draws 84% of its revenue from copper mines in Zambia, is looking to expand its operations to the United States by bankrolling the Pebble Mine – now solely owned by Northern Dynasty Minerals, a small Canadian mining exploration company based in Vancouver. Continue Reading →

Is overseas expansion on the menu for Saudi mining colossus Ma’aden? – by Richard Wachman (Arab News – May 6, 2018)

LONDON: Saudi mining colossus Ma’aden is riding a wave of investor confidence as profitability is driven by robust commodity prices, growth in production across its minerals suite of phosphate, gold, copper and aluminum, as well as a cost-cutting program that has strengthened the balance sheet.

Now, there is market chatter that the next chapter of the growth story could be overseas. Some say Ma’aden will one day follow SABIC, KSA’s petrochemicals champion, by expanding its footprint in growth segments abroad, although its core business will always be at home.

“At the moment there is plenty of growth to go for in Saudi,” said Yousef Husseini, a broker at EFG Hermes in Cairo. “But in the longer term, the company could shift its focus to global expansion similar to what SABIC has done in the last couple of decades as local market opportunities decline.” Continue Reading →