Gold and Silver – Page 211 – Republic of Mining

COLUMN-Bulls may win gold tug-of-war in China, India – by Clyde Russell (Reuters U.S. – February 3, 2016)

February 3, 2016

http://www.reuters.com/

Feb 3 – Gold’s rally this year has been driven mainly by what may be termed Western factors, namely buying on the back of worries over the state of the global economy and the subsequent desire for safe haven assets.

Spot gold has jumped 6.3 percent to around $1,127 an ounce since the start of year, bringing out bullish views that the yellow metal’s dark years since the peak near $2,000 in September 2011 are finally over.

Falling equity markets, both in developed and developing markets, credit and currency worries in China and monetary easing from major central banks other than the U.S. Federal Reserve have made gold look more attractive.

Roosen: Osisko’s Drinking from a “Fire Hydrant” (Global Mining Observer – December 2015)

February 1, 2016

http://www.globalminingobserver.com/

A smelter, a town, these are the obstacles that Osisko hits reviving old gold camps in Canada.

The Horne gold project in Quebec, which sits 2.5km below an industrial park in the town of Rouyn-Noranda, is overlooked, misunderstood and one of the best gold properties in Canada, Osisko Gold’s chairman Sean Roosen told Global Mining Observer in an interview on Wednesday.

Horne is owned by Falco Resources, one of a rising number of companies backed by Osisko and its Quebec-based mine-building team. It has a 2.8m gold resource and is targeting 5m ounces, after drilling that ended last month, including 109m grading 3.1 grams per tonne.

UPDATE 3-Freeport loses right to export from Indonesia copper mine, talks ongoing – by Bernadette Christina Munthe and Fergus Jensen (Reuters India – January 29, 2016)

January 29, 2016

http://in.reuters.com/

JAKARTA, Jan 29 Freeport McMoRan Inc on Friday lost its right to export copper concentrate, valued at more than $1 billion, from one of the world’s biggest mines as talks with Indonesia’s government remained deadlocked over payment for a new metal smelter.

Freeport’s six-month licence to export concentrate expired on Thursday and it was unclear how soon a new one would be issued as the two sides have yet to resolve a government demand that the U.S. firm first pay a $530 million deposit.

“Without an export permit, there can be no exports. The exporter knows that,” Didi Sumedi, Indonesia’s director of mining and industrial products told Reuters via text message.

Gold stands out as bright spot in Canadian mining industry – by Ian McGugan (Globe and Mail – January 28, 2015)

January 28, 2016

http://www.theglobeandmail.com/

The weak loonie is providing a powerful boost for many Canadian gold miners. The dollar’s long decline has already gone a long way to cushioning the impact of falling bullion prices on Canadian producers. In recent months, its further weakening has added to the cost advantage of domestic producers.

The buoyant effect of the low Canadian dollar has combined with a rise in the gold price over recent weeks to drive gold mining stocks listed on the Toronto Stock Exchange to a 5.8-per-cent gain so far this year.

This has been among the few bright spots in a mining industry hammered by falling prices for more prosaic metals. In stark contrast to the gold producers, diversified miners on the Toronto exchange have lost an average of 27.4 per cent since New Year’s Day.

The province is getting in the way of new mines: Study – by Jonathan Migneault (Sudbury Northern Life – January 27, 2016)

January 27, 2016

http://www.northernlife.ca/

Familiar regulatory barriers hampering nine mining projects in northwest

Exorbitant hydro rates, a myopic First Nations consultation process and an onerous environmental review system — a familiar trio of regulatory barriers — are hampering the development of new mines in northwestern Ontario, a new report says.

Regulatory barriers have halted the development of nine mines in northwestern Ontario since 2010, say the authors of a new report from the Northern Policy Institute.

Those nine proposed mining projects, which include Noront Resources’ Eagle’s Nest and Black Thor projects in the Ring of Fire, and Treasury Metals’ Goliath Gold project, had the potential to create 23,000 jobs and generate an estimated $135.4 billion in wealth, says the mining industry report.

Gold’s prospects are dull – by Swaha Pattanaik (Reuters – January 25, 2016)

January 26, 2016

http://www.reuters.com/

LONDON – (Reuters Breakingviews) – Gold isn’t behaving like a safe haven should. While investors have endured torrid times as global equity markets have slumped, even worse tribulations may be required for the precious metal to regain its past luster as a safe haven.

Its price is down more than 3 percent since November 2015, even as the S&P 500 Index has declined 8 percent. And on Jan. 20, when a global equity rout pushed the MSCI World equity index down more than 3 percent, gold’s rebound fell almost $3 short of highs set earlier in the month.

There are good reasons why investor panic is not translating into a bigger bounce in gold. First is the dollar’s rise. Gold is priced in dollars and usually weakens when the greenback strengthens.

Opinion: Colonial legacy of mining pioneers poses a dilemma for South Africans -by Prince Mashele (Mail and Guardian – January 25, 2016)

January 25, 2016

http://mg.co.za/

The Portuguese set foot in South Africa in the 15th century, and the Dutch settled at the “Cape of Storms” in 1652. But the noses of the first interlopers into southern Africa were not sharp enough to fore-smell Kimberley’s hidden diamonds or the Witwatersrand’s entombed gold.

Diamonds were only discovered in 1867 at Kimberley, and, 19 years later, gold on the Witwatersrand.

The group – of mainly Englishmen and Jews – that descended on Kimberley, following the discovery of diamonds was largely the same bunch of money-mongers who flocked to the Witwatersrand when news of gold broke.

By the time the Witwatersrand became the new Mecca of wealth seekers, Kimberley had already produced a diamond cartel led by Cecil John Rhodes –

Gold is back in fashion after $15 trillion global decline -by Luzi Ann Javier (Sydney Morning Herald – January 25, 2016)

January 25, 2016

http://www.smh.com.au/

The $US15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety.

Hedge funds more than doubled their net-long position in bullion last week, just three weeks after they were the most- bearish ever. Investor holdings of gold through exchange-traded products are expanding at the fastest pace in a year, and the value of the ETPs has jumped by $US3 billion in 2016.

Bullion has seen a revival of its appeal as a haven after being mainly ignored last year in the face of the Paris terror attacks in November and the Greek bailout negotiations in July.

This time around, concerns about global markets will support the metal Citigroup analysts led by Ed Morse said last week as they raised their 2016 price forecast.

Dome closure a warning for North – by John R. Hunt (Timmins Daily Press – January 22, 2016)

January 25, 2016

http://www.timminspress.com/

TIMMINS – The impending closure of the Dome Mine in Timmins will be a hard blow for that community which lost two other major mines over the years.

It is also a warning for those concerned with the future of Northern Ontario.

The North depends upon its natural resource industries. Mining and forestry are the backbone of the northern economy. Agriculture is growing and will get bigger if the predictions of global warming are correct.

The dome is rooted in history. According to local legend, it was discovered when a prospector fell down an embankment. His hobnail boots scraped the moss off a mineral vein and the Dome was discovered.

Barrick Sees Up to $3 Billion in Impairments on Lower Gold – by Danielle Bochove (Bloomberg News – January 22, 2016)

January 22, 2016

http://www.bloomberg.com/

Barrick Gold Corp., the world’s largest producer of the metal, said it may book as much as $3 billion in impairment charges as a prolonged gold slump forces it to revise its price assumptions for 2016.

A preliminary review shows potential goodwill impairment charges of about $1.8 billion, and asset impairment charges in the range of $1 billion to $1.2 billion, the Toronto-based company said Thursday in a statement. The asset impairments are primarily related to the stalled Pascua-Lama project on the Chile-Argentina border and the Pueblo Viejo mine in the Dominican Republic.

The company lowered its gold price assumption to $1,000 an ounce for 2016 and to $1,200 long term.

The Price Is Wrong? US Mining Giant in Divestment Talks With Indonesia – by Rui Hao Puah (The Diplomat – January 23, 2016)

January 22, 2016

http://thediplomat.com/

Freeport McMoRan Inc enters another stage of its contract renegotiation with Jakarta.

Last week, U.S. mining giant Freeport McMoRan Inc’s Indonesian unit submitted a divestment price to the Indonesian government for an additional stake in one of the world’s biggest copper mines, part of a process to allow the firm to extend its right to operate in the country beyond 2021.

According to Energy and Mineral Resources Ministry’s minerals and coal director general, Bambang Gatot Ariyono, Freeport had valued its Indonesian asset at $16.2 billion, with the divestment offered to the government being valued at $1.7 billion for a 10.46 percent stake.

Some Indonesian officials and lawmakers have already described the $1.7 billion price tag for Freeport’s huge Grasberg copper and gold mine in Papua as too high.

Slow Suffocation of the US Mining Space – by Christopher Ecclestone (Investorintel – January 19, 2016)

January 20, 2016

http://investorintel.com/

The old adage about the frog in the boiling water slowly getting cooked without jumping out is a good metaphor for the mining industry in the US over the last 12 months.

While the big story in commodity circles has been the oil price decline, a far more potent force has been the currency moves. The rampant US dollar has “saved” the bacon of many a miner in Australia, Canada, South Africa and elsewhere while brutally pressure-cooking those that are focused on the mining space in the US.

The chart above sourced from US Global Investors shows the last twelve months’ move in the gold price in various currencies. The USD gold price is clearly the laggard while Brazil has been stellar. It’s a pity there are not more Brazilian gold mining opportunities on offer. Ironically the strength of the Real for the preceding five years meant that Brazil was not such a good place for junior explorers to spend their drilling dollar.

Head of Freeport’s Indonesian Unit Resigns – by Ben Otto (Wall Street Journal – January 18, 2016)

January 19, 2016

http://www.wsj.com/

JAKARTA, Indonesia—The head of Freeport-McMoRan Inc.’s Indonesian operations resigned Monday, rejecting what he said was a contract extension offer as his one-year contract expired.

Maroef Sjamsoeddin, head of PT Freeport Indonesia, said in a memo to employees that he had submitted his resignation after a year of leading the company, one the largest miners in Indonesia and a vital piece of Freeport’s global business.

Richard Adkerson, Freeport-McMoRan’s vice chairman, president and chief executive, said in an email to employees that Mr. Sjamsoeddin had resigned for personal reasons, effective immediately. He thanked Mr. Sjamsoeddin for his service.

Inuit org negotiates improved IIBA for [Agnico Eagle’s] Meliadine gold mine – by Sarah Rogers (Nunatsiaq News – January 19, 2016)

January 19, 2016

http://www.nunatsiaqonline.ca/

Kivalliq Inuit benefits deal contains improved Inuit contracting, financial compensation provisions

The Kivalliq Inuit Association says the Inuit Impact Benefit Agreement for the region’s Meliadine gold project is a step up from past agreements in what it offers Inuit.

After more than three years of negotiations, the KIA and Agnico Eagle Mines Ltd. completed and signed an IIBA last July for the company’s Meliadine gold project.

“The Meliadine IIBA provides for improved contracting opportunities for Inuit firms, improved employment opportunities, and enhanced provisions for social and cultural benefits,” KIA president David Ningeongan said in an email to Nunatsiaq News last week.

Battered gold miners mount charm offensive to sell executive pay – by Susan Taylor and Nicole Mordant (Reuters U.S. – January 18, 2016)

January 19, 2016

http://www.reuters.com/

TORONTO/VANCOUVER – Gold mining companies are running a charm offensive with their biggest shareholders on the thorny issue of executive pay, keen to hold onto investors angry about ongoing generous compensation after four years of dire stock returns.

Stung by a reprimand from disgruntled shareholders in proxy votes last year, some miners are meeting investors earlier than ever to win support for compensation plans months ahead of spring ‘say-on-pay’ votes.

Largely abandoned by generalist funds after a 44 percent drop in gold prices and 70 percent slump in stock values since 2011, the mining firms are desperate to avoid a further exodus of sector-focused funds.