Latin America Mining – Page 124

NEWS RELEASE: Australia’s mining sector in the balance

September 18, 2012

Baker & McKenzie launches global report examining the challenges and opportunities facing the world’s key mining destinations

Australia, 17 September 2012 – Baker & McKenzie, the world’s largest law firm, has launched a report highlighting significant concerns about the future of Australia’s mining sector.

The Firm surveyed more than 300 senior industry leaders across six key mining jurisdictions – Australia, Brazil, Canada, China, Indonesia and South Africa – and the research suggests that investors in Australia are more pessimistic about the future of mining investment in this country than those investing in the other jurisdictions surveyed.

Of the executives commenting on Australia, 75% said that investing in the mining sector has become more complicated and costly due to factors such as increasing regulatory and environmental obligations, complex and uncertain project development requirements and the rising costs of mine development and operation.

The level of Commonwealth and State Government involvement in the Australian mining industry is also causing concern to investors, with 61% of respondents believing that the Government is too involved in the industry and 72% believing that sovereign risk is on the increase.

Mining investment to grow ever more complex, costly, industry leaders fear – Baker & McKenzie – by Dorothy Kosich (September 17, 2012)

September 17, 2012

www.mineweb.com

“Mining jurisdictions must consider their competitiveness to mining investment or risk that investment being deployed elsewhere, said David Ryan of Baker & McKenzie, Australia.

RENO (MINEWEB) – A survey of 300 mining industry leaders released Monday by the Baker & McKenzie, Australia, Global Mining Group found the common theme across all jurisdictions surveyed is that “investing in mining is becoming more difficult and less certain.”

Key themes from the study include the complexity of the legal and regulatory environment, political stability, increase in resource nationalism, and the need for access to infrastructure and skilled labor.

One theme that all jurisdictions seemed to have is common is that a majority of respondents said they believe that mining sector investment will continue to be more complicated in the future.

Baker & McKenzie surveyed more than 300 senior mining industry leaders across six key mining jurisdictions-Australia, Brazil, Canada, Indonesia and South Africa-for the report Mining investment-local challenges, global implications.

Anglo CEO [Cynthia Carroll] Doubles Down on New Mines Amid Falling Demand – by Jeremy Kahn (Bloomberg Markets Magazine – September 2012)

August 31, 2012

http://www.bloomberg.com/

Driving northeast from Santiago, the road corkscrews toward the shark’s-grin skyline of the Andes Mountains. In winter, Santiago’s smart set plies this route, heading for virgin-powder days and pisco-sour nights at La Parva ski resort. Most have no inkling that in a high mountain valley just over the ridgeline, excavators the size of houses have sculpted the mountainside into a steeply terraced pit 1,800 feet deep, Bloomberg Markets magazine reports in its September issue.

This is Los Bronces, one of the world’s richest copper mines. Anglo American Plc (AAL), the London-based company that owns Los Bronces, spent $2.8 billion from 2007 to 2011 to double the size of the mine. And Los Bronces is just one of four megaprojects that Anglo Chief Executive Officer Cynthia Carroll has initiated or pushed through construction since she took over in 2007 — each representing a wager in excess of $1 billion on the continued rise of China, India and other emerging markets.

Los Bronces is also at the center of a legal battle between Anglo and Codelco, the Chilean state-owned mining company. The dispute — over whether Anglo can block Codelco from exercising an option to buy half of Anglo’s Chilean subsidiary — has spooked Anglo investors and weighed on the company’s share price, which dropped more than 15 percent from the time the controversy erupted in October to August 8.

Cuba convicts 12 of corruption in nickel industry – by Laura Kane (Toronto Star – August 22, 2012)

August 22, 2012

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.

A Cuban court has convicted a dozen people of corruption in the nickel industry, including two employees of a Cuban-Canadian joint concern, state media announced Tuesday.

Accounting executive Alfredo Barallobre Rodriguez and deputy production director Orlando Carmenaty Olmo of Empresa Moa Nickel SA, a joint operation of Cuba and Toronto-based mining company Sherritt International Corp., were sentenced to six and five years, respectively. Company officials didn’t return requests for comment, and the nationality of the two men couldn’t immediately be confirmed.

High-ranking government officials and an executive at a state-run nickel company were also sentenced in the case, involving a contract for the expansion of the Pedro Soto Alba nickel and cobalt processing plant at the Moa mine. The convictions are the first in a wider crackdown on corruption that has already seen several foreigners, including two Canadians, detained.

Dispelling the Myths of Goldcorp’s Guatemalan Marlin Gold Mine – From the Goldcorp Corporate Website (July 13, 2012)

August 14, 2012

http://www.goldcorp.com/blog/default.aspx

Goldcorp’s Marlin Mine has been the source of much discussion amongst activist groups and others. Misinformation has surfaced on a number of internet sites recently, so we thought we’d take this opportunity to once again set the record straight. This is a long post, so grab a cup of coffee and get comfortable – we’ll be together for a while!

MYTH: Marlin discharges contamination into the local water supply.

Routine water discharges have been approved by the Guatemalan Ministry of Environment and Natural Resources (MARN), and the Guatemalan Ministry of Energy and Mining (MEM). Unlike most discharge situations, at Marlin the water is drawn from the tailings impoundment, treated in the treatment plant, then discharged back to the tailings impoundment. This means that all the water in the tailings impoundment must meet the discharge standards before water is ever released from the tailings impoundment. It also means that Marlin can and does sample the water prior to discharge to ensure compliance before discharge even begins.

Water samples taken by MARN and analyzed in their own lab in Guatemala City concluded no negative results from any discharges to date.

Mining, repression and the rhetoric of democracy and the rule of law in Guatemala – by Grahame Russell (Rabble.ca – August 13, 2012)

August 14, 2012

http://rabble.ca/

Increasingly, over the past few years, information has been published about serious human rights violations and health and environmental harms being caused in Guatemala by (mainly) Canadian mining company operations: Goldcorp Inc, Radius Gold, Tahoe Resources, Hudbay Minerals, Skye Resources, etc.

It is not possible to understand how these violations and harms occur, and will continue to occur, without understanding the political context. In short, global mining companies profit financially and benefit directly from the fundamental lack of democracy and the rule of law in Guatemala, both historically and on-going today. (This is true, in varying degrees, about global businesses and investors operating in many countries around the world.)

Rhetoric aside about respecting the sovereign democratic will of the duly elected officials of Guatemala, about abiding by the laws and regulations that govern the country and the mining industry, impunity and corruption are the norm in Guatemala. The wealthy elites in Guatemala, including international companies and investors, act with a huge amount of impunity and have almost complete immunity from legal or political accountability.

Miners wince over Colombian land auction model – by Pav Jordan (Globe and Mail – August 9, 2012)

August 11, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Latin American country’s decision to auction land in blocks isn’t suitable for mineral exploration, Canadian firms say

Canadian miners are feeling the growing pains of a mining industry in transition in Colombia, which is struggling to harness a frenzy of exploration activity as prospectors race to stake claims.

Facing a backlog of thousands of unprocessed mineral concession requests, the government has put aside 21 million hectares of mineral-rich lands to auction to the mining industry in blocks, instead of the usual first-come, first-served system of awarding concessions that is accepted globally, and used in other parts of the country.

Far from rubbing their hands over the plan, which copies a model that helped drive an investment boom in the country’s oil industry in the past decade, exploration companies worry the oil and gas exploration model is not appropriate for mineral exploration, which is done on a much smaller scale and focuses on narrow mineral veins.

In Panama, Locals Protest Canadian Copper Mines – PBS News Hour – July 17, 2012

July 19, 2012

Watch In Panama, ‘New Conquistadors’ Protest Canadian Copper Mines on PBS. See more from PBS NewsHour.

http://www.pbs.org/newshour/

Transcript

JEFFREY BROWN: Next, new battle lines are being drawn in the rain forests of the Americas, and billions of dollars are at stake. Canadian mining companies hold about 1,400 properties in developing nations from Mexico to Argentina.

One of those is in Panama, where local groups have teamed up with environmental activists to halt the building of new mines.

Our story is a collaboration with CBC News in Canada and the Pulitzer Center on Crisis Reporting. The producer is Lynn Burgess. The reporter is Mellissa Fung.

MELLISSA FUNG, Pulitzer Center on Crisis Reporting: Deep in the Panamanian rain forest, more than three hours northwest of Panama City, small agricultural communities dot the landscape, places that have remained unchanged for generations.

Carmelo Yanguez has lived in this town of Coclesito for more than 40 years. A subsistence farmer, he lives on what he grows, planting coffee, rice and beans and fish from nearby rivers. But his peaceful life, he fears, is changing.

Goldcorp wins mining dispute [against Barrick Gold Corp.] – by Cristin Schmitz (The Lawyer’s Weekly – July 20, 2012)

July 16, 2012

http://www.lawyersweekly.ca/index.php?section=main

Superior Court provides guidance for rights of first refusal agreements

A major commercial law ruling from Ontario holds useful lessons for the mining industry and other sectors that incorporate rights of first refusal into joint venture or shareholder agreements, counsel say.

The case pitted two Canadian mining giants, Barrick Gold Corp. of Toronto against Vancouver-based Goldcorp Inc. (and two other defendants), in a dispute over the ownership of one of South America’s largest gold and copper deposits. Barrick contended that Goldcorp illegally gained control of the Chilean mine that Barrick had conditionally purchased from co-defendant Xstrata Copper Chile S.A.

Superior Court Justice Herman Wilton-Siegel’s 229-page ruling dismissed all of Barrick’s claims against the three defendants. “Barrick’s principal claim for breach of contract is dismissed on the basis that the agreement between Barrick Corp. and Xstrata Chile S.A. terminated upon the exercise of the right of first refusal,” the judge wrote.

Mark Gelowitz of Osler in Toronto, who represents Goldcorp, said the judgment provides a useful overview of the rationale and principles that underlie rights of first refusal (ROFRs) and similar liquidity arrangements in shareholder agreements.

In Latin America, nationalism stumps Canadian mining companies – by Pav Jordan (Globe and Mail – July 12, 2012)

July 12, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Bolivian President Evo Morales has revoked the mining rights of Vancouver-based South American Silver Corp., the latest blow to foreign miners operating in Latin America amid a growing wave of resource nationalism.

The decision to expropriate the Canadian company’s Malku Khota silver mine was the second for Bolivia in a month, highlighting the increasing risks to developing mining and energy assets in the mineral-rich region.

From expropriations in Venezuela, Bolivia and Argentina to violent opposition in traditionally mining-friendly jurisdictions such as Peru and Chile, the rising political tensions pose a risk to a decade-long bonanza mining companies have enjoyed.

“Resource nationalism is not just about expropriation,” said Alan Hutchison, an expert in mining and energy securities and corporate law at Fraser Milner Casgrain LLP who specializes in Latin American matters. “It is the role and the stake that the government is going to take in any resource project and I think you are seeing that on the rise with the continued high commodity prices.”

Bolivia’s Morales threatens to “nationalize” Malku Kota silver project – by Dorothy Kosich (Mineweb.com – July 9, 2012)

July 9, 2012

www.mineweb.com

Fresh off the expropriation of the Quinto smelter, Bolivia’s president has now set his sights on the troubled Malku Khota project, a target of violent protests and kidnappings.

RENO (MINEWEB) – Bolivian President Evo Morales reportedly told a farmers’ group Sunday that Bolivia will consider nationalizing South American Silver’s silver property. Morales stressed he had not made a final decision on whether or not to revoke the concession for the Malku Khota project, Reuters reported.

“Nationalism is our obligation, I already raised the issue of nationalizing [the Malku Khota project] last year, and I told [local residents] to reach an agreement, because when they want, we’re going to nationalize,” he said.

In a statement Sunday, South American Silver said Bolivian authorities “continue in their efforts to restore peace and order to the Malku Khota region in the face of acts of aggression being perpetrated against law-abiding local indigenous communities, police, the company’s employees and its local contractors.

Argentine ruling won’t stop project, Barrick says – by Pav Jordan (Globe and Mail – July 6, 2012)

July 6, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

A law banning mining around glaciers in Argentina will not derail development of one of the world’s largest new gold projects, Barrick Gold Corp. said. The Pascua-Lama project is on track to go into production in 2013 after years of fighting over its environmental impact.

Argentina’s Congress passed the law – which also bans drilling on oil rigs – about two years ago in an effort to protect water reserves, but opponents held it off with an injunction that was overthrown by the Supreme Court on Tuesday, driving Barrick Gold stock lower amid concerns Pascua-Lama may be halted.

“The impact of the law on Barrick is nil,” said Barrick spokesman Andy Lloyd, pointing out that there are no glaciers near the mine on the Argentine side of the cross-border project with Chile, where 70 per cent of the mine is being built.

Barrick stock stumbled on news of the ruling earlier this week because it raised alarm bells that Pascua-Lama might be thwarted by the same environmental concerns it already faced down nearly a decade ago, when a media storm echoed from Andean capitals in Buenos Aires and Santiago to Barrick headquarters in Toronto.

Sherritt as Cuba’s CP – by Peter Foster (National Post – June 29, 2012)

June 29, 2012

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

Once a catalyst, underperforming miner needs one now

When the recent proxy fight broke out over CP — whose repercussions continued this week with the resignation from the CP board of Rick George — my colleague Terence Corcoran cited another all-too-rare example of a catalyst investor taking on the Canadian corporate establishment. It was Ian “the Smiling Barracuda” Delaney’s successful 1990 fight for control of Sherritt, an historic but failing fertilizer and nickel-refining company based in Fort Saskatchewan, Alta.

In fact, the CP link doesn’t end there. Mr. Delaney subsequently guided Sherritt into Cuba, where he declared that he would make the company the island’s answer to … CP! Unfortunately, he spoke truer than he knew. Although Cuba now accounts for only a fifth of its assets, Sherritt has been a less than stellar performer over the past two decades. Meanwhile Mr. Delaney’s adventures as Fidel Castro’s “favourite capitalist” remain one of the more controversial aspects of the company’s recent history.

After Mr. Delaney expanded his Cuban ambitions to embrace a joint venture at Moa Bay, a cucaracha appeared in the ointment in the form of Helms-Burton, U.S. legislation that allowed its citizens, including naturalized Cuban-Americans, to sue anybody “trafficking” in assets expropriated by the 1959 Castro revolution.

Chinese demand for Chile’s copper holds strong – by Pav Jordan (Globe and Mail – June 26, 2012)

June 26, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Global copper goliath Chile says Chinese demand for the metal is holding up despite a slowing of China’s economic growth, signaling a continuation of market dynamics that have driven consumption for over a decade.

“We have not seen a relevant decrease with respects to the Chinese market,” Chile’s deputy mining minister, Pablo Wagner, said by telephone from Santiago.

Mr. Wagner pointed to forecasts for a rise in overall copper exports in 2012 of between 5 per cent and 6 per cent over the year-earlier period. “Signs of demand, shipments and inventories, continue to be solid.”

Chile exports about 53 per cent of its copper to China, giving it one of the clearest insights into the demand patterns of the giant Asian economy that has devoured the red metal as it fuels booming economic growth and urbanization. Chile is also home to the world’s largest copper company, state miner Codelco, which is a key business partner of China.