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Canada Mining

First Quantum reaches agreement with major Chinese shareholder Jiangxi Copper to curb its power – by Niall McGee (Globe and Mail – July 24, 2024)

https://www.theglobeandmail.com/

Canada’s First Quantum Minerals Ltd. has reached an agreement with Jiangxi Copper Co. Ltd. that significantly curbs the power of its major China-based investor and makes Jiangxi Copper far less likely to act as a mergers and acquisitions kingmaker.

The company has an 18.5-per-cent stake in First Quantum. Its investment predates restrictions introduced by Canada’s federal government that severely limit investment into Canadian critical minerals companies by entities tied to the Chinese state. Jiangxi Copper is the largest copper smelting company in the world and is part-owned by China’s Jiangxi province.

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From moonscapes to Edens: What to do with your hole in the ground when the mining’s done – by Amanda Stutt (Northern Miner – July 22, 2024)

https://www.northernminer.com/

Telling the stories of reinvented coal mining regions, regenerated communities and rebuilt ecosystems, a new book published this month – 102 Things to Do with a Hole in the Ground – showcases remarkable post-mining reclamation projects around the world.

The book is a sequel to the original 101 Things to Do with a Hole in the Ground, published in 2009 by the Eden Project — a UK-based example of successful mine site transformation. The Eden Project successfully turned the site of former clay mines in Cornwall, UK, into a thriving botanical garden housed by geodesic domes designed by Grimshaw Architects.

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Canadian government intervention is harming the mining sector – by Kenneth Kaczkowski and Marc Levy (Globe and Mail – July 23, 2024)

https://www.theglobeandmail.com/

Kenneth Kaczkowski is a mergers-and-acquisitions (M&A) professional based in Munich, Germany. He has worked on global transactions in excess of $20-billion. Marc Levy has founded and sold several resource sector companies, with more than $950-million of public company exits; notably he sold Norsemont Mining to Hudbay Minerals Inc. for $520-million in 2011.

Commodity markets have been heating up over the past 12 months, prompting major mining companies to consider turning on their M&A engines. The market has seen some mega-deal announcements including BHP’s unsuccessful offer to take over Anglo-American, Newmont taking over Newcrest and Glencore acquiring Teck’s coal assets, which just gained approval from the Canadian government.

But the tail winds of the Glencore takeover of Teck’s coal assets have left a bitter taste in the market, owing to the Canadian government’s applying new rules limiting foreign takeovers of mining companies.

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Boyd, Roosen, Quartermain: It takes grit, invention, luck to make the big time – by Henry Lazenby (Northern Miner – July 17, 2024)

https://www.northernminer.com/

Perseverance, a focus on geology and financial discipline and some good breaks are what’s needed to make a mining titan, some of the industry’s leaders told a conference put on by former Sprott CEO Rick Rule.

Industry legends including Canadian mining luminary Robert Quartermain, Agnico Eagle Mines  chair Sean Boyd, Osisko Development  chair and CEO Sean Roosen, and Vizsla Copper CEO Craig Parry discussed the backstories behind their multibillion-dollar successes.

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Would Canada allow Rio Tinto to buy Teck? Miners aren’t so sure – by Alisha Hiyate (Northern Miner – July 12, 2024)

https://www.northernminer.com/

The federal government’s attempt to clarify its rules for foreign investment in mining is instead causing more confusion as the industry grapples with changing rules under the Investment Canada Act. But Rio Tinto’s interest in buying Teck Resources, as reported by Sky News, could serve as a test for what the feds will allow as it tries to keep critical minerals available for Canada.

Last week, the federal government formally approved Glencore’s purchase of a 77% stake in Teck’s coal business. At the same time, Minister of Innovation, Science and Industry François-Philippe Champagne issued a statement saying the government would only greenlight future foreign takeovers of “important Canadian mining companies engaged in significant critical minerals operations… in the most exceptional of circumstances.”

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Canadian critical mineral shares fall after tighter M&A criteria – by Divya Rajagopal (Reuters – July 8, 2024)

https://www.reuters.com/

TORONTO, July 8 (Reuters) – Shares of Canadian companies that mine critical minerals such as copper and uranium fell on the Toronto Stock Exchange (TSX)on Monday as investors assessed the potential impact of Canada’s announcement last week that it would restrict large mergers and acquisitions in the sector.

Last Thursday, Industry Minister Francois-Philippe Champagne cleared London-listed Glencore’s takeover of the coal unit of Teck Resources under strict conditions after taking into account the “net benefit” that the deal would carry for Canadians.

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Canada is struggling to complete large natural resources projects, says C.D. Howe report – by Ian Ross (Northern Ontario Business – July 4, 2024)

https://www.northernontariobusiness.com/

Report says governments need to make timely permit approvals, respect division of powers, to encourage investment

Canada’s permitting delays and regulatory uncertainty is a cooler when it comes to attracting investment in major infrastructure projects.

“Canada’s current regulatory permitting system is slow, subject to seemingly random process and policy changes and deters potential investors,” summarized a new report from the C.D. Howe Institute entitled, “Smoothing the Path: How Canada Can Make Faster Major Project Decisions,” co-authored by Charles DeLand and Brad Gilmour.

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GoviEx Uranium has mining licence in Niger revoked, shares plummet – by Staff (Mining.com – July 4, 2024)

https://www.mining.com/

GoviEx Uranium (TSXV: GXU) no longer has rights over the perimeter of the Madaouela mining permit following the Niger government’s decision on Thursday to withdraw its licence, dealing a big blow to the development of one of the world’s largest uranium projects.

The Vancouver-based uranium miner had feared that its licence could be revoked if mining could not start by July 3, 2024, a deadline set by Niger’s military leaders who came into power around this time last year.

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Canada’s Move to Protect Mining Sector Shields Takeover Targets – by Jacob Lorinc (Bloomberg News – July 5, 2024)

https://www.bnnbloomberg.ca/

(Bloomberg) — Canada is making it harder for foreign firms to acquire its biggest mining companies, potentially taking some of the global industry’s attractive takeover targets off the table.

The Canadian government will only approve foreign takeovers of large Canadian mining companies involved in critical minerals production “in the most exceptional of circumstances,” according to the latest guidelines from Industry Minister Francois-Philippe Champagne.

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FP Dealmakers: Critical minerals help drive dealmaking surge on Bay Street – by Barbara Shecter (Financial Post – July 8, 2024)

https://financialpost.com/

Mining at centre of more than half the equity and equity-linked deals this year

Higher commodity prices and the rise of electric vehicles made the mining sector the star of the show for Bay Street’s dealmakers in the first half of the year, with investors particularly hungry for stock and debt in companies supplying copper.

Ryan Latinovich, global head of metals and mining at RBC Capital Markets, said interest in the sector has come from both seasoned investors and those who haven’t been exposed to mining before.

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Ottawa tightens rules for approving large mining deals involving critical minerals – by Jeffrey Jones (Globe and Mail – July 6, 2024)

https://www.theglobeandmail.com/

Ottawa is making foreign investment in critical minerals more restrictive as the mining industry seeks capital to develop the raw materials that will be key to a low-carbon economy.

Industry Minister François-Philippe Champagne approved Glencore PLC’s US$6.9-billion acquisition of Teck Resources Ltd.’s metallurgical coal-mining business on Thursday, attaching a series of conditions following a net-benefit review. Teck said the deal will free up billions of dollars to reward its shareholders and speed up development of its copper production.

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Blood nickel: What electric-vehicle hunger has wrought, and how Canada can help – by Mark Selby (Globe and Mail – July 4, 2024)

https://www.theglobeandmail.com/

Mark Selby is the founder and CEO of Canada Nickel Co.

Blood diamonds, blood cobalt, and now blood nickel. Governments leading the global shift toward electric vehicles promise cleaner cities and a new era of sustainable energy and improved resource usage.

But just as governments promote EVs on environmental grounds, manufacturers are forced to source nickel from a region enabling the wanton destruction of ecologically sensitive lands, reckless treatment of workers, and the fundamental deterioration of living conditions. There is only one solution to this problem: the world needs more Canadian nickel.

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Canada needs a clearer and more co-ordinated mining strategy, and quickly – by John Turner, Krisztian Toth and Paul Blyschak (Globe and Mail – July 3, 2024)

https://www.theglobeandmail.com/

John Turner, Krisztian Toth and Paul Blyschak are lawyers at Fasken Martineau DuMoulin LLP. The views expressed herein are those of the authors.

After years of underwhelming policy support, our federal government has finally awoken to the vital importance of Canadian mining. The alarm bell has been the critical minerals race and its integral bearing on the green energy transition and high-tech applications (including artificial intelligence) and, by extension, national and international security.

But the lack of foresight has left policy makers scrambling. We must make up lost ground, quickly, and with minimal politicking, or we risk the entire energy transition.

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Unable to effectively operate its lone existing nuclear reactor, New Brunswick is betting on advanced options – by Matthew McClearn (Globe and Mail – July 2, 2024)

https://www.theglobeandmail.com/

Mike Holland was among Canada’s leading evangelists for small modular nuclear reactors. During his tenure as New Brunswick’s energy minister, from 2018 to when he stepped down on June 20, he vigorously supported plans by the province’s Crown utility, NB Power, to construct two different small reactor designs from startup companies: U.S.-based ARC Clean Technology and Britain’s Moltex Energy.

This represents Canada’s most ambitious – and perhaps riskiest – foray into bleeding-edge nuclear technology. In an interview shortly before he resigned to pursue an opportunity in the private sector, Mr. Holland recalled how SMRs arrived on his agenda soon after he assumed office.

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Canada failing to protect human rights activists from mining companies operating overseas: UN watchdog – by Tavia Grant (Globe and Mail – July 2, 2024)

https://www.theglobeandmail.com/

The federal government’s failure to protect human-rights advocates who raise concerns over the activity of Canadian corporations abroad is tarnishing the country’s global reputation, a United Nations official said in an interview.

Mary Lawlor, the UN special rapporteur on human-rights defenders, said Canada should strengthen legislation and bolster oversight of extractive firms operating abroad, some of which she says are causing harms to the environment and human rights advocates. (As a special rapporteur, Ms. Lawlor writes formal letters to governments, and companies, in which she raises concerns about situations where advocates are at risk).

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