Canada Mining – Page 219 – Republic of Mining

Mining heavyweights seek to build mid-tier gold producer in $190M Newmarket-Crocodile merger – by Peter Koven (National Post – May 12, 2015)

May 12, 2015

The National Post is Canada’s second largest national paper.

TORONTO – Several mining industry heavyweights have teamed up in a deal they hope will be the first of many as they seek to build a new mid-tier gold producer.

Newmarket Gold Inc. and Crocodile Gold Corp. announced a friendly $190 million merger on Monday that will give Newmarket control over most of the combined board and management team.

Crocodile is an established gold producer in Australia, while Newmarket is little more than a shell company at present. However, Newmarket boasts some very big names on its board, including entrepreneurs Lukas Lundin, Randall Oliphant (of New Gold Inc.) and Raymond Threlkeld (of Rainy River Resources Ltd.). The company’s plan is to use the Crocodile mines as a platform to buy more high-quality gold assets under the “Newmarket” name.

“There is lots of competition for assets, but that’s why we put this team together,” Newmarket chief executive Doug Forster said in an interview.

Transparency act could muddy things with FNs, assoc. warns – by Jonathan Migneault (Sudbury Northern Life – May 11, 2015)

May 11, 2015

http://www.northernlife.ca/

Aimed at corruption, Mining Assoc. prez says act could be used against First Nations

A new transparency act for the mining industry may go too far when it comes to First Nations, says the Mining Association of Canada.

The Extractive Sector Transparency Measures Act (ESTMA), which received royal assent in December 2014, and is expected to come into effect in June, requires mining companies to publicly disclose payments greater than $100,000 they make to foreign and domestic governments.

“It’s an anti-corruption measure,” said Pierre Gratton, the president and CEO of the Mining Association of Canada. “By having companies disclose what they pay, then citizens of those countries can ask questions about what their governments might be doing with that money.”

The act’s purpose, as it appears in the document itself, is to “implement Canada’s international commitments to participate in the fight against corruption through the implementation of measures applicable to the extractive sector, including measures that enhance transparency and measures that impose reporting obligations with respect to payments made by entities.”

Waterloo Region reaps dividends by being conduit to Baffin Island – by Greg Mercer (Waterloo Region Record – May 9, 2015)

May 11, 2015

http://www.therecord.com/waterlooregion/

BRESLAU — The sun is just starting to peek above the horizon as a handful of men in work boots suck on their last cigarettes outside the airport terminal, getting ready for the long commute.

In a few minutes, they’ll join dozens of others boarding the Boeing 737 for the five-and-a-half hour charter flight to Mary River, Baffin Island — where a small army of pipe fitters, machinists, cooks, engineers and other tradespeople are helping build and supply one of the world’s largest and most ambitious iron ore mining projects.

For hundreds of workers passing through the Region of Waterloo International Airport three times a week, Waterloo Region is a southern hub for the buried riches of the Far North. And that connection is pumping millions into the local economy.

The Mary River Project, run by an Oakville-based company called Baffinland, aims to move its first shipment of iron ore — the main raw material used to make steel — this summer.

The ore deposits in that part of Baffin Island, first discovered by a prospector in 1962, are so rich and pure they’re the stuff of legend. Pilots used to report the minerals would scramble their compasses as they flew over.

Old deals in risky countries continue to haunt junior resource sector – by Peter Koven (National Post – May 9, 2015)

May 11, 2015

The National Post is Canada’s second largest national paper.

Given recent headlines, it is hard to imagine that Khan Resources Inc. was ever in an enviable position. But in early 2010, it really was.

The tiny Toronto-based exploration company, which owned a uranium deposit in Mongolia, was the target of a bidding war between massive, state-owned entities from China and Russia that were chasing foreign uranium reserves. It was exactly the sort of scenario that shareholders dreamed of when Khan went public in 2006. The company appeared to have overcome nationalization concerns in Mongolia and set up a decent outcome for shareholders.

“I don’t know if they’ll be fighting over us. But it has the makings of one trying to outbid the other,” then-chief executive Martin Quick predicted. Of course, that isn’t what happened. Instead of engaging in a market-driven takeover battle, the Russians appeared to apply political pressure behind the scenes, forcing Khan off the uranium project without paying its investors a dime.

The case ended up in international arbitration, with Khan actually winning a US$100-million award. Mongolia, an extremely poor country, signaled it would challenge the decision.

Kinross Gold Corporation History (1993 – 2001)

May 11, 2015

For a large selection of corporate histories click: International Directory of Company Histories

In just five years Kinross Gold Corporation went from a newly formed company to North America’s fifth largest gold producer. With revenues of $318 million in 1999, the young company considers itself the fastest growing gold producer in the world and its 1998 merger with Amax Gold helped put it there.

Among its flagship operations are the aptly named Fort Knox in Alaska, Hoyle Pond in northern Ontario, and the Kubaka property in eastern Russia. Kinross also mines properties in Chile, Zimbabwe, and in the United States’ richest gold vein, Nevada. Though gold is its raison d’être, Kinross also mines significant quantities of silver.

Birth of Kinross: 1992-93

Gold derived its name from the Latin aurum and its luster, malleability, and anticorrosive qualities have made it a prized possession since the earliest civilizations. More than 170 years after the establishment of the gold standard in 1821, several Canadian companies began discussions to unite and create a new company. Two of these companies were publicly held and controlled gold mining interests; the third was the equally-owned offspring of one of the gold industry’s titans, Placer Dome, Inc., and Dundee Bancorp.

Franco-Nevada chairman rips ‘ridiculous’ pay packages at underperforming gold companies – Business Network News’ Andrew Bell interviews Pierre Lassonde (March 7, 2015)

May 8, 2015

http://www.bnn.ca/

Mining magnate Pierre Lassonde told us on Thursday’s Commodities show that big pay packages for gold mining executives whose stocks have tanked are “obscene.”

“That is ridiculous,” the Franco-Nevada (FNV.TO 0.84%) chair said. Compensation committees, he added, “should have been far more forceful and said ‘guys, our shareholders are suffering. You’ve got to take the pain as well.’”

John Thornton, the famously well-rewarded chairman of Barrick Gold, told shareholders last week that “we have heard you loud and clear” after they voted against the company’s pay policy. But he didn’t actually promise to refund any of his 2014 compensation, valued at US$12.9-million.

Kincardine nuclear waste site gets federal seal of approval – by John Spears and Lauren Pelley (Toronto Star – May 7, 2015)

May 8, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Deep Geologic Repository proposed by Ontario Power Generation at its Bruce site is “not likely to cause significant adverse environmental effects,” report concludes.

A federal panel has given an overall seal of approval to the controversial nuclear waste disposal site proposed for a subterranean crypt below the Bruce nuclear station near Kincardine, Ont.

“The Panel concludes that the project is not likely to cause significant adverse environmental effects” given the measures contemplated to curb them, says the report by the Joint Review Panel.

The panel’s favourable view of the project, proposed by Ontario Power Generation, overcomes a major regulatory hurdle in the construction of the Deep Geologic Repository, or DGR in industry jargon, which would see nuclear waste buried hundreds of metres underground near the shore of Lake Huron.

Press Release: Antwerp Strengthens Ties With Canadian Miners (May 8, 2015)

May 8, 2015

https://www.awdc.be/en/homepage

Press Release: Canada is the third-largest diamond producer in the world and one of the most important suppliers of rough diamonds to Antwerp. Last week, the Antwerp World Diamond Centre (AWDC), spearheaded by governor Cathy Berx, traveled to Montreal, Toronto and Yellowknife. The meetings with mining company Stornoway Diamond Corp. provided strong indications the company is considering to commercialize its entire production from the Renard mine in Quebec through Antwerp.

Stornoway is the first producer to exploit a mining area in the Canadian province of Quebec. The Renard mine is expected to yield 1.6 million carats of diamonds annually, with a value of $304 million and production estimated to hit the market as of the second half of 2017. If the Renard production is marketed in Antwerp, the share of rough diamonds from Canada on the Antwerp market could increase by 64 percent.

As trade center and diamond producer, Antwerp and Canada have always maintained a close relationship because of the quality demands that both implement with regard to transparency, ethical values and observance of national and international standards.

In recent years, Canada has undergone significant changes with regard to diamond mining. Ari Epstein, the CEO of the AWDC, said, “A number of legislative changes have ensured that the regional and local authorities, such as the Northwest Territories, have obtained wider competencies as concerns the mining industry.

First Nations firmly rooted on both sides of the resource development debate – by Trevor McLeod and Roger Gibbins (Troy Media – May 6, 2015)

May 8, 2015

http://www.troymedia.com/

Trevor McLeod is the Director of the Centre for Natural Resources Policy at the Canada West Foundation and Roger Gibbins is a Senior Fellow with the Foundation. www.cwf.ca

CALGARY, AB – Potential resource developments too often face an unbridgeable abyss, with project proponents perched on one side and First Nations and environmentalists on the other. Unfortunately, the historic bridge-builders are absent.

Governments have abandoned the space and are assumed to favour project proponents. Regulators, like the National Energy Board, are able to answer “how” a resource might be developed but do not always have the scope to answer the “should” question.

And so we have a stalemate, which is a win for those opposed to development – and a signal to the business community to take its money elsewhere.

If we rethink our initial assumptions, however, we may realize it is a mistake to place First Nations on either side of the abyss. In fact, they are firmly rooted on both sides.

Participation of First Nations vital to success – by Tim Gitzel (Saskatoon StarPhoenix – May 7, 2015)

May 7, 2015

http://www.thestarphoenix.com/index.html

Tim Gitzel is president and CEO of Cameco Corporation.

Development of Canada’s wealth of resources has potential to deliver many generations of prosperity for Canadians.

We have what the world needs. Over the next decade, an estimated $675 billion in resource development projects are planned across Canada. This is a truly incredible opportunity.

We can attract billions in capital investment and become a trusted, reliable supplier of energy, minerals and other materials for the rapidly growing economies of China, India and other developing nations. These projects would deliver high-quality employment and business opportunities for many thousands of Canadians and strong, sustained revenue for governments.

However, without respectful, mutually beneficial partnerships between industry and Canada’s aboriginal people, none of this will happen.

Almost all of the major resource projects on the horizon have a footprint on aboriginal traditional territory. Aboriginal people must be effectively consulted and engaged in the development of natural resources and must share in the prosperity it brings. Otherwise, the incredible opportunity will be lost.

Kinross keen on M&A but will take a disciplined approach: CEO – by Euan Rocha (Reuters Canada – May 5, 2015)

May 6, 2015

http://ca.reuters.com/

TORONTO (Reuters) – Kinross Gold K.TO is scouting for acquisition opportunities but vows it will be disciplined and only strike a deal if it offers value to shareholders, the Canadian gold miner’s chief executive said on Tuesday.

“On the external front, we are looking like everyone else is,” Paul Rollinson said in an interview. “But at the end of the day we will be disciplined.”

The CEO spoke as the Toronto-based company reported results that edged past expectations.

Investors have punished Kinross for a risky deal in 2010 that eventually soured badly. In March, the company settled a lawsuit that had accused it of defrauding investors by making a bet on Red Back Mining and its Tasiast mine in Mauritania that has led to over $6 billion in writedowns.

Its share price has fallen nearly 90 percent since the time the Red Back deal closed in September 2010. Despite this, Kinross, whose assets include operations in Russia, Brazil and the United States, among other countries, is once again scouting for assets with an eye to future growth.

Mining far more expensive in Canada’s North: Report – by Lisa Wright (Toronto Star – May 5, 2015)

May 6, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Groups recommend tax credits to help build infrastructure to reach remote sites.

The cost of building new mines is up to 2.5 times higher in northern Canada than in the rest of the country, creating major obstacles to extracting metals in remote regions and putting the industry’s long-term viability in jeopardy, warns a new report.

A significant cost premium is directly linked to the lack of infrastructure in the north, says the report released Tuesday by several industry groups, including the Mining Association of Canada and the Prospectors and Developers Association of Canada.

The study shows that unlike many of their southern counterparts, mining companies operating in these remote areas need to invest in costly but essential ports, power plants, winter roads, permanent roads and housing. And in most cases, there are also sparse populations or no people for hundreds of kilometres from the project or mine.

Despite Canada’s leadership in the global mining business, reserves for several base metals such as nickel, lead and zinc have been in significant decline since the 1980s, and production volumes have fallen relative to other mining countries, the report notes.

Kinross reports solid Q1 earnings, agrees to settle class action suit – by Peter Koven (National Post – May 6, 2015)

May 6, 2015

The National Post is Canada’s second largest national paper.

TORONTO – Kinross Gold Corp. reported solid earnings on Tuesday, beating analyst estimates in the first quarter even though most of its competitors failed to meet them.

The Toronto-based miner also announced it has agreed to pay $12.5 million to settle a Canadian class action lawsuit, eliminating a time-consuming headache. The legal action was tied to the company’s statements about the Tasiast expansion project in Mauritania, which did not live up to its original expectations.

In March, Kinross reached a US$33 million settlement of a similar class action suit out of the United States. Chief executive Paul Rollinson noted that there is no cost to Kinross, as the money is paid out through directors and officers insurance. The company made no admission of guilt in either case.

“When settling these things, it’s really a call on time and cost and energy efficiency,” he said in in an interview.

Furious B.C. magnate says he’s caught up in ‘vicious’ smear campaign against Clinton charities – by Brian Hutchinson (National Post – May 6, 2015)

May 6, 2015

The National Post is Canada’s second largest national paper.

VANCOUVER — This seems out of character: Frank Giustra, one of Canada’s wealthiest and most guarded businessmen, is openly seething. Smacking the boardroom table and swearing.

“I can’t deal with this anymore,” snaps the mining and entertainment magnate. To his horror, he’s become hot political fodder south of the border. All because of his close relationship with former U.S. president Bill Clinton, suggestions of influence-peddling through related charities the two men established and a growing scandal ensnaring Hillary Rodham Clinton.

“I’ve spent the last 10 days doing nothing but dealing with media calls. I can’t get anything done,” Giustra says, his voice starting to crack the longer our interview inside his downtown Vancouver office this week continues. “It’s out of control. It’s a f—ing circus.”

A rags-to-riches multi-millionaire who normally shuns publicity, Giustra made his fortune as a stockbroker before “retiring” two decades ago, shy of his 40th birthday. An ugly, Bre-X-style gold mining scandal caused by others was singeing his feathers and creating what he describes as “internal conflict” at Yorkton Securities Inc., the Vancouver-based brokerage he headed.

Barrick Beyond Borders: There’s a first time for everything [Cyanide free gold]

May 5, 2015

http://barrickbeyondborders.com/

Barrick produced the first of millions of ounces of gold at its Goldstrike mine using patented technology that will save jobs and allow it to continue to contribute funds to the state of Nevada

In late November 2014, the Goldstrike mine poured a small but significant bar of gold. At 107 ounces, the pour amounted to just one-eighth the size of a typical doré gold bar, but it marked the first time the mine had produced gold using its patented thiosulfate processing method. In fact, it marked the first time any company in the western world had successfully produced gold using thiosulfate.

Long viewed as a potential alternative to cyanide, which is typically used to recover gold that is trapped inside ore, thiosulfate is a difficult chemical to master. Barrick spent more than two decades perfecting its thiosulfate processing method and relied on an unmatched level of scientific and technological expertise.

“It’s the culmination of years of hard work and a good example of how our partnership culture is manifesting itself on the ground,” says Goldstrike General Manager Andy Cole. “This was a huge initiative, and it would not have succeeded if it weren’t for the collaboration, trust and accountability that developed between our project team, the construction group and the Goldstrike operations team.”