Twitter

Resource Nationalism

Resource nationalism on the rise in top mining countries — report – by Editor (Mining.com – October 25, 2021)

https://www.mining.com/

The last year has seen a rise in resource nationalism — or the risk of thereof —in an extensive and fast-rising number of countries, including top mining countries, market analyst Fitch Solutions finds in its latest industry report.

While resource nationalism had been relatively contained geographically speaking in the past to Sub Saharan Africa, and localised countries such as Indonesia, it is spreading across the world and is now noticeable in SSA (the DRC, Mali, Zimbabwe, South Africa, Guinea), Latin America (Mexico, Peru, Chile), North America (the US), Europe (Russia) and Asia (Indonesia, Mongolia), Fitch reports.

Read more

Centerra ups the ante as it accuses Kyrgyzstan of high-grading Kumtor – by Staff (Mining.com – September 27, 2021)

https://www.mining.com/

Centerra Gold (TSX: CG) has asked an international arbitrator to impose ‘urgent interim measures’ on the Kyrgyz Republic and state miner Kyrgyzaltyn JSC to address alleged “critical operational and safety issues” at the Kumtor mine.

In its latest application, Centerra seeks immediate relief pending a final award in the arbitration to prevent the defendants from “causing irreparable damage to the mine.”

Read more

Mapping the rise of resource nationalism in Africa – by Matthew Hall (Mining Technology – July 12, 2021)

https://www.mining-technology.com/

A recent study from risk consultancy Verisk Maplecroft found that the Covid-19 pandemic has contributed to a surge in governments pursuing resource nationalist policies – those that attempt to assert at least some sovereign control over natural resources.

Around the globe, 34 countries saw their Resource Nationalism Index, the score Verisk Maplecroft gives to countries based on resource policy, rise significantly in 2020. Africa is home to the heaviest concentration of countries seeking to increase their control over resources.

Reasons for a surge vary depending on the country – but the economic impact of the pandemic has “aggravated an already growing tendency for government interventionism in the resource sector”, according to Verisk Maplecroft, as governments look to recoup some of the financial losses brought on by Covid-19.

Read more

Resource nationalism surge spells rough times for miners – by Cecilia Jamasmie (Mining.com – March 4, 2021)

https://www.mining.com/

Resource nationalism has spiked in more than 30 countries over the last year and more than half of those nations are key producers of minerals and hydrocarbons, a new study reveals.

The growing trend, paired with the economic impacts of covid-19, has heightened governments’ rising appetite for greater control over mineral revenues, the latest research from risk consultancy Verisk Maplecroft shows.

The consultancy identified 34 countries in which a trend to take control over natural resources or ensure higher profits from them has grown since 2017. At least 18 of those nations, including Ghana, Mali, Colombia, Chile and Canada, are resource-dependent economies.

Read more

When it comes to Canada-China relations, it is time to look North – by Jessica Shadian and Erica Wallis (Policy Options – July 7, 2020)

Policy Options – Institute for Research on Public Policy

Canada could chart a new course for its relationship with China, and protect our interests, by thinking more strategically about the North.

If there is one thing that the COVID-19 crisis has not brought to a halt, it is China’s Belt and Road Initiative, a global network of land and maritime infrastructure projects. In fact, while businesses around the world fold or face bankruptcies, China is taking this opportunity to make the most of the global liquidation sale, including in Canada.

During May’s chaotic lockdown, China entered a bid to buy a struggling Northern mining company, TMAC Resources. TMAC operates the Doris North gold mine at its Hope Bay property in Nunavut. The property up until very recently was labelled as “Canada’s next gold mining district,” but TMAC encountered operational challenges.

In late June, TMAC’s shareholders voted overwhelmingly in favour of the company’s sale to the second-largest gold mine company in China, state-owned Shandong Gold Mining Co. (“SD Gold”). Only five years ago, TMAC had successfully raised several hundred million dollars and began trading on the Toronto Stock Exchange.

Read more

Morneau not committing to keeping tougher foreign investment scrutiny post-coronavirus – by Amanda Connolly (Q107.com – May 24, 2020)

https://q107.com/

Despite warnings from national security experts that Canada needs a strategy to deal with hostile foreign takeover attempts post-coronavirus, Finance Minister Bill Morneau won’t say whether the government will consider keeping new rules in place after the economic crisis ends.

In an interview with The West Block‘s Mercedes Stephenson, Morneau was asked about a warning issued by the federal spy agency CSIS last week on the threat posed by hostile foreign takeovers of key Canadian companies, and what the government is doing to limit that risk.

“We need to make sure we protect our economy for the long term,” Morneau said without offering specifics.

Read more

Papua New Guinea lashes out at Barrick for halting Porgera – by Cecilia Jamasmie (Mining.com – April 28, 2020)

https://www.mining.com/

Papua New Guinea is threatening to take immediate control of Barrick Gold’s (TSX: ABX) (NYSE: GOLD) Porgera mine after the company’s local unit halted operations over the weekend following news that the mining lease would not be renewed.

Barrick, the world’s second largest gold miners, and its joint venture partner, China’s Zijin Mining, had applied in June 2017 for a twenty-year renewal of the mine lease, which expired in August.

Since then, the company has faced backlash from landowners and residents over what they claim are negative social, environmental and economic impacts from the mine.

Read more

Papua New Guinea to take control of Barrick Gold mine – by Tom Westbrook and Melanie Burton (Reuters U.S. – April 24, 2020)

https://www.reuters.com/

SINGAPORE/MELBOURNE (Reuters) – Papua New Guinea’s government will take control of the Porgera gold mine after refusing to extend Barrick Gold Corp’s lease over the facility, citing environmental concerns, Prime Minister James Marape said on Friday.

The decision ends months of uncertainty since the lease over the troubled project expired last August, and may end Barrick’s hopes of boosting output from a mine it said held potential as a long-life and high-margin asset.

Marape took power a year ago on a platform of economic nationalism that would review more closely its mineral resource assets, and comes as pressure rises on miners globally to improve their social and environmental responsibilities.

Read more

MINING NATIONALISM RISES IN AFRICA – by Henry Sanderson, Harry Dempsey and Neil Munshi (Ozy.com – October 13, 2019)

https://www.ozy.com/

Sierra Leone’s abrupt cancellation of an iron ore mining license last week has raised concerns about a resurgence of resource nationalism across the continent.

The action is the latest in a string of disputes between governments and mining companies in Africa, which is home to rich resources of iron ore, copper, gold and diamonds.

Gerald Group, a metals trader, said last Tuesday that its license to mine the steelmaking ingredient was canceled “with immediate effect” by the government, and it would pursue claims for more than $500 million in compensation.

Read more

New PNG leader “taking back” economy, puts resources firms on notice – by Tom Westbrook, Jonathan Barrett and Sonali Paul (Reuters Africa – May 30, 2019)

https://af.reuters.com/

SYDNEY/BRISBANE (Reuters) – Papua New Guinea’s new prime minister pledged on Thursday to “tweak and turn” laws governing how natural resources are extracted to help lift the vast South Pacific archipelago out of poverty.

James Marape, a former finance minister who became leader after winning a vote in parliament, put some of the world’s biggest resources companies on notice over a perceived lack of wealth flowing from their projects back to communities.

Marape, who hails from PNG’s poor but gas-rich highlands, had even quit the government in April after questioning a deal with France’s Total, which allows it, Oil Search Ltd and ExxonMobil Corp to begin work on a $13 billion plan to double gas exports.

Read more

Zambia Files Notice of Plans to Seize Vedanta Copper Assets – by Taonga Clifford Mitimingi and Matthew Hill (Yahoo Finance – May 20, 2019)

https://ca.finance.yahoo.com/

(Bloomberg) — Zambia’s government filed notification of plans to take over Vedanta Resources Ltd.’s domestic copper assets, President Edgar Lungu said. The southern African nation’s Eurobond yields surged to a record high and the currency hit a 3 1/2-year low.

The move marks an escalation in tension between the government and mine owners, after Lungu last week threatened to “divorce” Vedanta and Glencore Plc, two of the biggest employers in Africa’s second-largest copper producer. Relations have been simmering after the state earlier this year increased royalties and unveiled a plan to overhaul the value-added tax system.

Lungu mainly targeted Konkola Copper Mines, Vedanta’s local unit, in a weekend visit to Zambia’s Copperbelt province, where some companies are cutting production and firing workers.

Read more

How countries are getting tougher with mining companies – by Barbara Lewis (Reuters U.K. – April 4, 2019)

https://uk.reuters.com/

LONDON (Reuters) – A mix of political populism, higher commodity prices and the expectation electrification will spur demand for some raw materials has led resource-holding governments to change the rules for miners operating in their countries.

In most cases, governments are seeking to increase their share of profits, rather than all-out resource nationalism, although Mongolia has been trying to nationalise a stake in a copper mine. The toughness is not universal.

Some governments see the hardened stance of other countries as a chance to lure investment. Ethiopia is rolling out pro-business reforms after Prime Minister Abiy Ahmed swept into office last year.

Read more

Resource nationalism risk to investment on the rise, led by Africa: study – by Robert Perkins and Diana Kinch (S&P Global Platts – March 21, 2019)

https://www.spglobal.com/

London — Indirect forms of resource nationalism, particularly in Africa, are on the rise, threatening the investment climate in some of the world’s biggest oil and mineral producing nations, according to global risk consultancy Verisk Maplecroft.

A total of 30 countries have witnessed a significant increase in resource nationalism risks over the last year, including 21 major producers of oil, gas and minerals, Verisk Maplecroft’s latest Resource Nationalism Index shows. The country now most at risk is the Democratic Republic of Congo, which has been downgraded by five places in the rankings from a year ago to the highest globally alongside Venezuela.

Regionally, Africa is also home to 10 countries experiencing a growth in resource risks, including Tanzania (third highest risk), Zambia (17th) Gabon (23rd) and Equatorial Guinea (40th), according to the study.

Read more

Arctic ambitions of China, Russia – and now the US – need not spark a cold war – by Nong Hong (South China Morning Post – March 11, 2019)

https://www.scmp.com/

While competition over access to resources is inevitable, security concerns aside, the three share many common interests. Recent US investment in the Arctic to counter Chinese and Russian influence heightens the need for partnership

The United States has always been a reluctant power in the Arctic. It has invested very little into its Arctic resources – with no real ports along Alaska’s Arctic waters, little military presence, and insufficient diplomatic engagement.

However, in February, the US government allocated a total of US$675 million in funding for new icebreakers, which military leaders deem vital for competing with Russia and China in the Arctic.

When US Secretary of State Mike Pompeo visited America’s Nato ally, Iceland, on February 15, he also discussed China and Russia’s growing presence in the Arctic. It seems that the US has begun to shift its Arctic policy, now aimed at countering the growing influence of China and Russia in the high north.

Read more

The Fight Between Miners and African Governments Is Just Getting Started – by Thomas Biesheuvel, William Clowes and Felix Njini (Bloomberg News – February 14, 2019)

https://www.bloomberg.com/

States are seeking a bigger share of benefits from their mineral riches.

Standing before hundreds of mining investors and executives last week, Ghanaian President Nana Akufo-Addo issued a firm warning: stop expecting supercharged profits from Africa’s mineral riches.

It’s a theme that has simmered for years, as governments across the continent seek a bigger share of benefits from their natural resources. The debate ratcheted up in 2018, with countries including the Democratic Republic of Congo and Zambia—the continent’s No. 1 and 2 copper producers—becoming increasingly insistent that producers must pay up.

There’s also been a backlash against the terms under which foreign companies agreed to invest in the first place—many mining codes, investment pacts and joint ventures were drawn up based on lower commodity prices and by previous regimes.

Read more