Archive | Canada Mining

PDAC Interview: PM Justin Trudeau speaks on Canadian mining innovation, aboriginal engagement (Northern Miner – March 14, 2019)

Northern Miner

Canadian Prime Minister Justin Trudeau made a visit to the annual convention of the Prospectors and Developers Association of Canada (PDAC) in Toronto on March 5, 2019, for a sit-in interview conducted by outgoing PDAC president Glenn Mullan.

Below is a full transcript of the 20-minute interview, edited for clarity. Topics that Trudeau and Mullan discussed included technological innovation, sustainable mining practices, federal regulatory changes and reconciliation efforts with Canada’s First Nations.

Glenn Mullan: We’re so much looking forward to the fireside chat without a fire. And we have a couple of topics that we thought would be agreeable for discussion, including Canada’s competitiveness, indigenous affairs and some of the regulatory things that we’re working on in collaboration with your government in particular. Continue Reading →

How the outlook for Canada’s miners may hinge on Volkswagen’s $66-billion gamble on electric vehicles – by Scott Barlow (Globe and Mail – March 14, 2019)

Global mining giant Glencore PLC estimates that the production of an electric vehicle will require 84 kilograms of copper, 30 kilograms of nickel and eight kilograms of cobalt. Demand for battery powered cars then is not only of interest to oil patch investors concerned about future demand, but also potential investors in Canada’s base-metal miners.

We will find out a lot about future demand for electric vehicles in 2019 as global auto companies attempt to eat into Tesla Inc.’s leading market share.

Consumer excitement about Tesla cars is expected to wane significantly. Morgan Stanley analyst Adam Jonas, in a report Tuesday, noted that the Tesla brand is losing its “aura of exclusivity” because of recent price cuts. “We see TSLA hitting an air pocket in demand that is coming earlier than we expected,” he said. Mr. Jonas also cut his stock price target for Tesla to US$260 from US$283. Continue Reading →

Investors blast ‘terrible’ $12-million retirement deal for departing Goldcorp chair Ian Telfer – by Danielle Bochove and Anders Melin (Financial Post/Bloomberg News – March 14, 2019)

Telfer’s package to jump threefold if merger with Newmont goes through

A lucrative retirement package for the chairman of Goldcorp Inc. is raising the hackles of investors ahead of a key vote on the company’s planned merger with Newmont Mining Corp.

Ian Telfer’s retirement allowance will rise to roughly US$12 million from US$4.5 million if the miners merge, according to a regulatory filing from Vancouver-based Goldcorp, once the world’s largest gold miner by market value. Initially, the plan was for Telfer, 72, to join Newmont’s board as deputy chairman. On Tuesday, Goldcorp announced he wouldn’t accept the new job.

A group of investors tracking the merger welcomed the decision, but in an emailed statement said the two mining companies “have still failed to justify how the threefold increase in the payment to Mr. Telfer is in the best interests of their respective shareholders.” Continue Reading →

NEWS RELEASE: New Report Shows Urgent Need for Additional Government Support to Enhance Competitiveness of Canada’s Mining Industry

OTTAWA, March 14, 2019 /CNW/ – Today, the Mining Association of Canada (MAC) released its annual Facts & Figures report, a document focused on providing a comprehensive overview of current trends in Canada’s mining sector.

While Canada has long been the dominant global mining nation—in mineral production, mining finance, mining services and supplies, and sustainability and safety, this year’s data shows that our competitiveness continues to erode. Canada is losing out on its ability to seize new opportunities for growth and it is essential that the federal and provincial governments take action to reverse this trend.

“Over the past decade, Canada’s leadership in mining has been deteriorating year over year, with no sign of any significant turnaround, and support from governments is absolutely critical to improving this position,” said Pierre Gratton, President and CEO of MAC. Continue Reading →

OPINION: How society pays a high price for gold – by Thomas Walkom (Toronto Star – March 13, 2019)

I grew up over a gold mine. That didn’t make me rich. My father worked in the mine; he didn’t own it. Even if he had, neither we nor the other families that lived on this particular mine property just outside Timmins would have been rich.

In those days, when the price of bullion was pegged at $35 U.S. an ounce, many Canadian gold mines survived only through government assistance. But living there did make me curious about the sought-after but seemingly pointless metal upon which my community relied. So when a friend mentioned that he was working on a documentary about gold. I was eager to see it.

The Shadow of Gold is an ambitious exploration of a metal that still fascinates the world. More than anything else, gold is an idea. It is desired simply because it is desired. Continue Reading →

OPINION: Gold giants have yet to shake one of the industry’s chronic problems: excessive executive pay – by Jeffrey Jones (Globe and Mail – March 13, 2019)

Barrick Gold Corp. had promised to usher in a new era of discipline in gold mining when it announced a blockbuster plan to take over U.S. rival Newmont Mining Corp. in a US$17.8-billion deal.

Now that it has dropped its major offensive, one of the industry’s chronic problems – excessive executive pay – has bubbled up again. This time, the target of investor wrath is Ian Telfer, chairman of Goldcorp Inc.

Mr. Telfer stands to pocket US$12-million in Goldcorp’s sale to Newmont – a deal that predated the Barrick-Newmont proposal and could have been scrapped because of it. That’s nearly three times what had been reported as his retirement package before last week. Following the steady deterioration in the company’s stock price over the past decade, it has Goldcorp investors spitting fire. Continue Reading →

The huge risks and rewards of [Barrick’s] Papua New Guinea’s Porgera gold mine – by David James (Business Advantage PNG – March 13, 2019)

The Porgera gold mine in Papua New Guinea’s Enga Province is a world class gold mine but, as Executive Director for Barrick (Niugini) Ila Temu explains, it is also one of the world’s most difficult mines to operate.

Drainage, breakdowns in the infrastructure and illegal mining are the three challenges Porgera miners and executives face.

But the rewards are also great. Despite the severe obstacles, Porgera’s production in 2017 was about 500,000 ounces of gold and 204,000 in 2018 (with production affected by the Highlands earthquake).

Barrick Gold Corporation’s new President and CEO, Mark Bristow, explained during his recent trip to Papua New Guinea that the future of the Porgera mine is considered promising. ‘When you look at the current plans of Porgera, it has the potential to be able to deliver 500,000 ounces [per annum] for the next 10 years,’ he reportedly said. Continue Reading →

Barrick drops $18-billion hostile bid, signs Nevada joint venture with Newmont Mining – by Niall McGee and Rachelle Younglai (Globe and Mail – March 12, 2019)

Barrick Gold Corp. and Newmont Mining Corp. have agreed to team up in a joint venture in Nevada that will see Barrick drop its hostile bid for its biggest rival and unite the world’s two biggest gold miners in one of the richest goldfields on the planet.

The accord means Colorado-based Newmont is far more likely to succeed in its efforts to buy Goldcorp Inc. and bypass Barrick as the world’s biggest gold company. Barrick’s pursuit of Newmont had threatened to derail the US$10-billion deal that was announced in January.

The Barrick-Newmont ownership split announced on Monday will be 61.5 per cent in favour of Barrick with the Toronto-based miner also named as the operator. The agreement will see gigantic mines, including Barrick’s Goldstrike and Cortez operations, along with Newmont’s Carlin, unite under one roof. Continue Reading →

Support for climate change action could wane if no help for coal workers: report (CTV News – March 11, 2019)

CANADIAN PRESS: OTTAWA – Environment Minister Catherine McKenna is hinting the upcoming federal budget might have room for additional aids to help coal industry workers transition to new jobs.

The 2018 federal budget included a $35 million, five-year fund to help retrain coal workers to work in new jobs, but that was before Ottawa assigned a task force to consult affected provinces and communities on what was specifically needed. That task force reported Monday, laying out 10 broad recommendations to help workers prepare for a future without coal.

McKenna told The Canadian Press Monday she was intrigued by most of what was in the report. “There are some really good suggestions here,” she said. “We kind of have to look at it as a package. Most of the things we’re looking at in terms of the budget.” Continue Reading →

Gold Miners Don’t Quite Put a Ring on It – by Liam Denning (Bloomberg News – March 11, 2019)

Barrick and Newmont finally strike a deal, but it won’t move the needle much.

It’s amazing what just talking it out can achieve. After a parade of insults, suspect numbers and pitch decks, Barrick Gold Corp. and Newmont Mining Corp. have agreed to a deal.

It isn’t the deal Barrick originally pushed for; namely, a hostile full takeover of its rival. Instead, they will holster their Excel models and form a partnership in the one asset anyone really cares about: their Nevada mining operations.

On balance, it looks as if Barrick got most of what it wanted. It will run the Nevada joint venture and control three of the five board seats governing it. Ownership of 61.5 percent reflects Barrick’s much bigger resource base in the region (as my colleague David Fickling laid out here), with Newmont giving ground on its earlier proposal of a 55/45 split. Continue Reading →

Is the Barrick-Newmont joint venture a ‘stepping stone’ to a bigger deal? – by Gabriel Friedman (Financial Post – March 12, 2019)

When asked if the venture was a prelude to something else, Barrick CEO Mark Bristow chuckled: ‘I’m not prepared to comment on that’

Barrick Gold Corp. and Newmont Mining Corp., the two largest gold producers in the world, ended their feud Monday and agreed to work together in the Nevada desert where both companies operate vast mining complexes.

Almost immediately, questions surfaced about whether it was a prelude to a larger deal between the two giants and Barrick chief executive Mark Bristow declined to rule out such an idea. Asked by one analyst whether the Nevada joint venture is merely “a stepping stone” to greater consolidation, Bristow chuckled.

“I’m not prepared to comment on that,” he said.As part of that agreement announced Monday, however, Toronto-headquartered Barrick agreed to drop its US$17.8 billion hostile bid for Colorado-headquartered Newmont and to commit to a two-year standstill that prevents further action. Continue Reading →

Barrick Withdraws $17.8 Billion Hostile Bid for Newmont – by Joseph Richter and Danielle Bochove (Bloomberg News – March 11, 2019)

Barrick Gold Corp. is withdrawing its $17.8 billion hostile takeover bid for Newmont Mining Corp., with the companies opting instead to forge a joint venture around their Nevada projects.

The change came weeks after Barrick proposed an all-share offer that would have created the world’s largest gold producer. After Newmont’s board rejected the bid, Newmont Chief Executive Officer Gary Goldberg proposed the joint venture as an alternative both companies could gain from.

Barrick’s decision ends two weeks of animosity between the gold producers, and helps Newmont focus on securing shareholder approval for its previously announced offer to buy Goldcorp Inc. Newmont raised doubts about the Barrick bid from the start, saying its Goldcorp move offered better benefits. Continue Reading →

Why Barrick wants to merge with Newmont: Gold is harder to find and mining it is more expensive – by Gabriel Friedman (Financial Post – March 6, 2019)

Barrick Gold Corp.’s sudden expansionist desires are driven by the same concerns as the rest of the industry — it’s getting harder to find gold and more expensive to mine it, according to John McCluskey chief executive of Alamos Gold Inc.

Barrick is pursuing a $17.8-billion hostile bid for its arch rival, Newmont Mining Corp., in a deal that would combine the two largest gold companies into a firm of unparalleled size.

If successful, it would have numerous consequences for the rest of the gold industry, potentially laying the groundwork for future asset sales and consolidation, and also potentially pulling new generalist investors into the high-risk, high-reward precious metals sector. Continue Reading →

Barrick, Newmont work toward joint-venture deal – by Niall McGee and Rachelle Younglai (Globe and Mail – March 6, 2019)

The chief executives of Barrick Gold Corp. and Newmont Mining Corp. are working to reach agreement on a critical joint-venture deal that could stave off a high-stakes takeover battle, but deep divisions remain between the world’s largest gold producers.

Barrick CEO Mark Bristow and Newmont CEO Gary Goldberg were scheduled to meet in New York on Tuesday evening to discuss terms of a possible joint venture (JV) at their adjacent Nevada mining operations, according to a source familiar with the talks who was not authorized to speak publicly. Major shareholders of both companies are urging executives to solve long-standing disagreements over the proposal.

Newmont on Monday rejected Barrick’s US$17.8-billion all-stock, zero premium takeover offer, and instead proposed a joint-venture agreement in Nevada between the two companies. Newmont proposed an ownership split of 55 per cent in favour of Barrick with both companies sharing management responsibilities. Continue Reading →

Newmont CEO Eager to Meet with Barrick But Not About Merger – by Danielle Bochove and Ed Hammond (Bloomberg News – March 5, 2019)

After more than a week of tough talk firing back and forth, the leaders of the two biggest gold producers are finally coming to the table.

Newmont Mining Corp. Chief Executive Officer Gary Goldberg said he will be meeting with Barrick Gold Corp.’s Mark Bristow later Tuesday in New York to talk through their differences. However, he said in a Bloomberg TV interview that he won’t be discussing Barrick’s bid for his company, but rather Newmont’s proposal for a joint venture around the two companies’ assets in Nevada.

Goldberg said he heard from Bristow earlier and that “I’m looking forward to catching up with him later today here in New York. This will be the discussion on the joint venture with what we proposed yesterday.’’ Barrick spokeswoman Kathy du Plessis didn’t immediately have a comment. Continue Reading →