Archive | Canadian Media Resource Articles

Southern Copper wins auction for massive Peru copper project – by Frik Els (Mining.com – February 20, 2018)

http://www.mining.com/

An auction for the $2 billion Michiquillay copper project in Peru attracted 10 interested companies according to Peru’s government investment agency Proinversión with Southern Copper Corp declared the winner on Tuesday.

Reuters reports Southern Copper won the tender with a proposal to transfer $400 million to the government and pay 3% royalties. Southern Copper is controlled by conglomerate Grupo Mexico. Southern’s chief executive told Reuters in September that Michiquillay has arsenic impurities, requiring a “slightly higher” investment to clean up the area.

According to Proinversión, the other companies that pre-registered for the tender included Peru’s Buenaventura, local units of Rio Tinto, Teck Resources and Hudbay Minerals, as well as Compania Minera Milpo, a company controlled by Brazil’s Votorontim. Milpo had offered $250 million in transfers and 1.875% royalties. Eight companies did not end up bidding. Continue Reading →

Agnico Eagle’s open-pit offshoot from Nunavut gold mine gets federal ministerial approval – by Sara Frizzell (CBC News North – February 19, 2018)

http://www.cbc.ca/news/canada/north/

Production at the mine will begin in mid-2019

The federal minister for Indigenous Relations and Northern Affairs has signed off on a new mining project near Baker Lake, Nunavut. Agnico Eagle’s Whale Tail project is an open-pit gold mine, expected to operate for three to four years, starting next year.

It will be connected to the company’s Meadowbank mine by a 65-kilometre road, so it can use existing processing facilities. Initially, local groups were concerned about caribou crossing the road, but after a final hearing, the Nunavut Impact Review Board (NIRB) signed off on the project with 64 specific conditions, many of which focus on managing environmental impacts.

In her approval, Carolyn Bennett noted elevated arsenic levels could still be an issue in runoff from water storage and in the fill water for the proposed pit lake, to be created after the mine closes. Therefore, she has insisted on careful monitoring. Continue Reading →

Opinion: HD Mining allowed temporary foreign workers while Canadian miners are unemployed – by Brian Cochrane and Manuel Alvernaz (Vancouver Sun – February 19, 2018)

http://vancouversun.com/

Brian Cochrane is business manager at the International Union of Operating Engineers, Local 115; Manuel Alvernaz is business manager at the Construction And Specialized Workers’ Union, Local 1611.

Normally, when someone gets a lump of coal at Christmas, they are very unhappy about being recognized for their bad behaviour.

But not if they are a controversial coal mining company that was previously in deep trouble for hiring Chinese-speaking Temporary Foreign Workers for its coal mine near Tumbler Ridge in northeast B.C.

HD Mining created such a firestorm that the then-Conservative federal government of Stephen Harper had to make major changes to the Temporary Foreign Worker program that had allowed 338,000 non-Canadians get jobs in our country. Continue Reading →

Hard work lies ahead for superclusters – by Sarah Turnbull (iPolitics.ca – February 16, 2018)

iPolitics.ca

The Liberal government’s $950 million supercluster program is being touted as a good news story Friday – despite ongoing hesitation about what comes next for the five winning projects, stakeholders say.

“It can’t just be about a billion-dollar cheque,” said Jamison Steeve, executive director of the Institute for Competitiveness and Prosperity. “There’s an actual positive force of the government, that is as an organizer, as convener and as a cajoler.”

The five supercluster winners were announced Thursday and are distributed fairly evenly across the country, with hubs being located in British Columbia, the Prairies, Atlantic Canada, Quebec and Ontario. This is causing a bit of eyebrow raising within the tech circle, he said. Continue Reading →

Pembina Pipeline’s new purpose: Get Canada’s oil and gas to the rest of the world – by Claudia Cattaneo (Financial Post – February 20, 2018)

http://business.financialpost.com/

Political priorities come and go, especially when it comes to energy these days, and Pembina Pipeline Corp. has been adding value one piece of infrastructure at a time since the days of Louis St. Laurent.

Its most recent growth spurt, much of it through the oil and gas downturn, has boosted its enterprise value to $26.7 billion, from $14.4 billion in 2014 when current chief executive Mick Dilger took over, and from $3 billion 10 years ago.

With that kind of pedigree, you could do worse than pay attention to Dilger, who believes it would be better for governments to help improve the value of existing resources rather than chase new energy sources. Continue Reading →

Well, there’s $950 million we didn’t need to spend – by Andrew Coyne (National Post – February 17, 2018)

http://nationalpost.com/

Recipients of Superclusters cash don’t have to persuade consumers of the value of what they produce. They just have to be good at lobbying the federal Liberals

If you were to leave $950 million at the corner of Bloor and Yonge in downtown Toronto — in packets of twenties, it would create a pile roughly 1.45 metres square by 2.6 metres high — I can guarantee you the result would be a substantial boost to economic activity.

People in the area would pick up the money and spend it on goods and services. With such a sudden influx of cash in search of something to spend it on, factories would have to step up production; distributors and retailers would take on staff.

These new hires would spend their wages on more goods and services, leading to yet more new hires and so on. With such “spin-offs” included, the economic impact of dumping all that cash on the ground could be multiples of the initial outlay. Continue Reading →

Barrick mulls selling copper business as it faces lower production, higher costs – by Niall McGhee (Globe and Mail – February 16, 2018)

https://www.theglobeandmail.com/

Barrick Gold Corp. is contemplating getting out of the copper business. President Kelvin Dushnisky said a sale of the copper assets is a possibility, although the company is not running a sales process at this time.

“Would we consider divestment in some point in time? Yes,” Mr. Dushnisky said in an interview with The Globe and Mail.

Barrick acquired its copper assets primarily through its US$7.3-billion purchase of Equinox Minerals Ltd. in 2011. The high-priced acquisition, timed shortly before a global slump in metals prices, proved to be a financial disaster, as Barrick wrote down the value of these assets by US$3.8-billion less than two years later. Continue Reading →

Pembridge grabs copper-gold-silver mine in Canada’s Yukon – by Cecilia Jamasmie (Mining.com – February 15, 2018)

http://www.mining.com/

Pembridge Resources (LON:PERE) said Thursday it was buying Capstone Mining’s (TSX:CS) Minto copper-gold-silver mine in Canada’s Yukon for $37.5 million in cash plus a 9.9% stake in the company.

The miner, which last year moved from the AIM to LSE main board, said the acquisition makes of Pembridge a cash flow generating copper producer.

The London-based company said it plans to raise $50 million via an equity placement. The money will be used to fund the proposed acquisition and provide resource development and working capital, it said. Continue Reading →

Sound policy, low risk key to attracting mining investment – by Henry Lazenby (MiningWeekly.com – February 16, 2018)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Gobal equity markets have been extremely volatile in recent weeks, extending a frantic sell-off of US stocks, which culminated in the steepest plunge for the Dow Jones Industrial Average in six-and-a-half years.

While commodities were not spared from the rout, American multinational investment banking and financial services firm Citigroup says now is the time for investors to add positions in metals.

According to Citigroup, demand-led inflationary pressures are a boon for real assets like commodities, as they raise the cost of production and support higher prices, while they are bearish for assets such as bonds. Continue Reading →

Federal government names winners of $950-million ‘supercluster’ funding – by Sean Silcoff (Globe and Mail – February 16, 2018)

https://www.theglobeandmail.com/

The federal government unveiled the winners of its flagship innovation funding program on Thursday, committing $950-million to five industry consortiums drawn from hundreds of companies, research institutions and industry groups that don’t typically collaborate but that Ottawa hopes will create economic growth by combining forces.

Innovation Minister Navdeep Bains said the goal was to create “a made-in-Canada Silicon Valley” that will add billions of dollars to the GDP and get businesses to invest heavily in research and development – and create 50,000 jobs.

The winners represented a broad cross-section of industry and academic players, which Mr. Bains said was the government’s intent. “This was about seeing how the private sector can step up,” he said in an interview. “We wanted to see more collaboration … more ambition” on the part of Canadian industry. Continue Reading →

Teck sees strong demand for steelmaking coal in 2018 – by Susan Taylor (Reuters Canada – February 14, 2018)

https://ca.reuters.com/

TORONTO (Reuters) – Teck Resources Ltd, the world’s second-biggest exporter of steelmaking coal, said on Wednesday that growing global steel production is expected to boost demand for its coal in 2018, though coal trade competition will also likely rise.

Vancouver-based Teck, which also mines copper, zinc, gold and oil sands, said it is “feeling pretty good about 2018” after reporting in-line financial results.

“Most of us forget what this feels like, but it’s certainly very good for commodity markets, and they are now demand driven, rather than supply driven,” Chief Executive Don Lindsay said on a conference call. Continue Reading →

A look behind Sherritt’s double financing victory – by Barry Critchley (Financial Post – February 15, 2018)

http://business.financialpost.com/

The Canadian resource company bought back $121.223M of three classes of debt at an aggregate cost of $110.331M plus accrued interest

It looks like a classic win-win, now that the second part of a financing package unveiled one month back by Sherritt International has closed: the issuer raised more equity than originally intended and bought back more debt than anticipated — and at a slightly lower price.

Wednesday, Sherritt announced it had bought back $121.223 million of three classes of debt at an aggregate cost of $110.331 million plus accrued interest. Under normal circumstances, that debt was set to mature over the period of 2021-2025. Because of the buy-back the company now has about $600 million of debt outstanding — down from $720 million previously.

Sherritt bought the debt back through a modified Dutch auction: prior to the auction, it posted maximum prices; asked holders to submit their proposals, indicated those proposals “must be less or equal to the maximum price,” and then picked the so-called market-clearing price. Continue Reading →

Barrick Cuts Gold Output Forecast for Eighth Potential Drop – by Danielle Bochove (Bloomberg News – February 15, 2018)

https://www.bloomberg.com/

Barrick Gold Corp., the bullion producer that once towered over rivals, continues to shrink. The Toronto-based miner is predicting its eighth straight decline in annual production as it takes less gold out of the ground at its main mines.

The company expects to produce 300,000 fewer ounces in 2018 than it had previously forecast. It now projects total production will be 4.5 million to 5 million ounces this year, compared with a previous forecast of 4.8 million to 5.3 million ounces. Total gold output in 2017 was 5.32 million ounces.

Barrick also raised its forecast for all-in-sustaining costs to a range of $765 to $815 an ounce this year, compared with previous guidance of $710 to $770. Continue Reading →

Copper, iron ore price jump sparks rally in mining stocks – by Frik Els (Mining.com – February 14, 2018)

http://www.mining.com/

Mining and metals investors were piling into the sector’s big names on Wednesday as gold jumped, base metals prices surged and iron ore continued to rally on optimism about global demand for raw materials ahead of a holiday week in top consumer China.

Gold enjoyed its best trading since the Brexit vote in June 2016 on Wednesday. Copper bounced to above the $7,000 a tonne ($3.24 per pound) level bringing the bellwether metal’s gains just this week to more than 6%. Nickel surged 4.8% to $14,100 a tonne, the highest since May 2015, while zinc ended nearly 3% higher to exchange hands for $3,567, a near decade high.

The iron ore price which has been defying expectations of a pullback for months gained on Wednesday with benchmark Northern China import prices rising to a five-week best of $78.25 a tonne. Continue Reading →

What it means to be a miner in the 21st century – by David Garofalo (Globe and Mail – February 15, 2018)

https://www.theglobeandmail.com/

David Garofalo is the CEO of Goldcorp Inc.

The mining industry has traditionally been a laggard when it comes to innovation. The 21st-century economy, however, dominated by emerging technologies like electric vehicles, green energy sources and ever-more advanced mobile devices, is demanding creative approaches to efficiently delivering the raw materials that will fuel modern economies.

Canadian mining is seeing a real drive to innovate that is bolstering our ability to get materials to global markets as efficiently and cost-effectively as possible. And it’s changing what it means to work in mining.

New technologies are enabling workers to make quicker, more informed decisions at the front lines of operations. Advancements in artificial intelligence and machine learning are giving geologists more options and the data to understand existing deposits differently, along with tools to make new discoveries. Increased automation is removing workers from the riskiest parts of the mine, making our mines safer as we strive for zero harm. Continue Reading →