Archive | United States Mining

Editorial Board: The Mining Industry Has Had It Easy for Far Too Long (Bloomberg News – March 26, 2019)

Economic preferences for hardrock mining stopped making sense about a century ago.

When should modern Americans care about legislation signed into law by President Ulysses S. Grant? When it causes deep environmental damage, deprives the federal treasury of billions, privileges one industry over others, practically gives away public lands, and hasn’t been significantly altered in almost 150 years.

The law in question is the General Mining Act of 1872, which governs the harvesting of gold, silver, uranium, copper, zinc and other minerals from federal lands. To say it’s long overdue for reform is an understatement.

The law was designed to propel westward advancement. So it did a few things that seem antiquated today. Continue Reading →

Newmont, under pressure over Goldcorp deal, offers dividend to shareholders – by Niall McGee and Rachelle Younglai (Globe and Mail – March 26, 2019)

Newmont Mining Corp. plans to pay its shareholders a one-time dividend worth US$470-million after a number of its biggest investors pushed for the giant miner to redo the terms of its US$10-billion takeover of Goldcorp Inc.

The sweetener makes it more likely that Colorado-based Newmont will win support from its shareholders, who are set to vote on the transaction in a couple of weeks. If Newmont succeeds, it will bypass Barrick Gold Corp. and become the biggest gold company in the world by market value, production and reserves.

In January, Newmont announced a friendly deal buy Goldcorp in a mostly stock transaction, at a premium of 17 per cent. But some Newmont investors argued the offer was too high considering Goldcorp’s poor past performance. Continue Reading →

Newmont says shareholders to get special payout if Goldcorp takeover approved – by Niall McGee (Globe and Mail – March 25, 2019)

Newmont Mining Corp. intends to pay its shareholders a one-time dividend worth US$470-million after a number of large investors pushed for the giant miner to renegotiate terms of its takeover of Goldcorp Inc.

Newmont shareholders who own stock as of April 17 will be entitled to US$0.88 per share. The dividend is payable only if shareholders on both sides approve Newmont’s US$10-billion takeover of Goldcorp.

Last week, Paulson & Co said Newmont should pay about 23 per cent less for Goldcorp in light of its recent joint venture (JV) agreement with Barrick Gold Corp. The hedge fund argued that the JV had materially increased the value of Newmont and as a result it should pay less of its own stock for Goldcorp. Continue Reading →

Russian control of US uranium supply is a huge national security problem – by Spencer Abraham (Fox News – March 24, 2019)

The Trump administration is to be commended for its “energy dominance” policy with respect to oil and natural gas production, but on domestic uranium mining, used for nuclear power generation and national defense purposes, it is the United States that is being dominated. Fortunately, the administration is considering new corrective measures to address this vulnerability to ensure America’s energy and national security.

The U.S. has become overdependent on foreign uranium. Today, we have the world’s largest commercial nuclear reactor fleet, but our domestic mining industry supplies less than 2 percent of its uranium needs.

Instead, foreign uranium accounts for the vast majority of our uranium supply with imports from Russia and countries of the Former Soviet Union (FSU) amounting to over 40 percent of the uranium loaded into U.S. nuclear power reactors. Continue Reading →

Hudbay’s Rosemont mine pushes ahead despite concerns on water impacts – by Ian Bickis (Canadian Press/Bloomberg News – March 21, 2019)

TORONTO — A controversial mine being developed by a Canadian company in Arizona shows the lengths to which the industry will go to feed the world’s unrelenting demand for copper.

Hudbay Minerals Inc. and a previous owner have been pushing to get approval for the Rosemont mine for more than a decade amid local opposition and skepticism from regulators about water issues in the semi-arid region.

To secure approval for the nearly US$2-billion mine the company has proposed numerous measures to reduce impacts on the environment, including what it says is an “unprecedented” use of dry-stack tailings. Continue Reading →

Paulson says will not support Newmont takeover bid for Goldcorp (Reuters U.S. – March 21, 2019)

TORONTO (Reuters) – Paulson & Co Inc will not support Newmont Mining Corp’s planned $10 billion takeover of rival Goldcorp Inc as the premium offered is unjustified, the investor said in a letter on Thursday.

The transaction is dilutive to Newmont shareholders and only Goldcorp shareholders would benefit from the deal’s synergies, Founder John Paulson and Partner Marcelo Kim said in the letter to Newmont Chief Executive Officer Gary Goldberg.

Newmont made a friendly offer in January for Goldcorp in what would be the gold sector’s biggest-ever takeover transaction, a bid to create the world’s largest gold producer. Continue Reading →

Mining Companies Polluted Western Waters. Now Taxpayers Have to Pay for the Clean Up. – by Mark Olalde (Mother Jones – March 18, 2019)

“They took the heart of the mountains away from us.”

This story was originally published by the Center for Public Integrity.

The remnants of an abandoned gold and silver mine scar the Little Rocky Mountains just south of the Fort Belknap Indian Community in Montana, bleeding polluted orange water into streams that meander through the reservation. Warren Morin remembers drinking the once-pristine water while he was growing up in the 1970s. Now it’s so acidic it makes his skin burn and turn red on contact.

Pegasus Gold Corp., a Canadian company that owned that mine and several others in the state, went bankrupt and folded 20 years ago. That left a legacy of water pollution and a cleanup bill nearing $100 million—with no end in sight. “They took the heart of the mountains away from us,” said Morin, chair of the tribal council’s natural resources committee.

Pegasus isn’t an isolated case. Especially in the drought-prone West, the outdated and opaque regulatory system meant to ensure money is available to restore water and land at gold, copper and other hardrock mines often falls short. Continue Reading →

U.S. and Brazil may partner on small nuclear reactors – by Lisandra Paraguassu (Reuters U.S. – March 15, 2019)

WASHINGTON (Reuters) – Brazil and the United States could work together to build small nuclear reactors, Brazil’s mines and energy minister told Reuters on Friday, adding that the South American nation is also ready to open uranium mining to foreigners.

Brazil is preparing legislation that would clear the way for both private and foreign investment in prospecting and mining for uranium in the country, Minister Bento Albuquerque said in an interview. There is a draft of the legislation, but a final version must be negotiated with Congress, he said.

“We have to resolve internally the issue of uranium exploration that today is a monopoly of the state and is in the hands of Nuclear Industries of Brazil,” Albuquerque said, referring to the state firm running the country’s uranium mines. Continue Reading →

A new book says self-imposed obstacles block U.S. self-sufficiency – by Greg Klein (Resource Clips – March 4, 2019)

“The Middle East has oil, China has rare earths.” Deng Xiaoping’s 1992 implied threat became all too real eight years later in the Senkaku aftermath, when RE dependency put Japan and the West at China’s mercy.

But just as the United States overcame the 1973 OPEC embargo to become the world’s leading oil producer, that country can overcome its growing reliance on dodgy sources of mineral production and processing. So say authors Ned Mamula and Ann Bridges in Groundbreaking! America’s New Quest for Mineral Independence.

Their country’s problem isn’t geology but policies, the book argues. Repeatedly pointing to Canada and Australia as role models, the authors say their own country’s mining potential can restore mining self-sufficiency, or at least minimize a crippling dependency. Continue Reading →

Barrick Withdraws $17.8 Billion Hostile Bid for Newmont – by Joseph Richter and Danielle Bochove (Bloomberg News – March 11, 2019)

Barrick Gold Corp. is withdrawing its $17.8 billion hostile takeover bid for Newmont Mining Corp., with the companies opting instead to forge a joint venture around their Nevada projects.

The change came weeks after Barrick proposed an all-share offer that would have created the world’s largest gold producer. After Newmont’s board rejected the bid, Newmont Chief Executive Officer Gary Goldberg proposed the joint venture as an alternative both companies could gain from.

Barrick’s decision ends two weeks of animosity between the gold producers, and helps Newmont focus on securing shareholder approval for its previously announced offer to buy Goldcorp Inc. Newmont raised doubts about the Barrick bid from the start, saying its Goldcorp move offered better benefits. Continue Reading →

Why Barrick wants to merge with Newmont: Gold is harder to find and mining it is more expensive – by Gabriel Friedman (Financial Post – March 6, 2019)

Barrick Gold Corp.’s sudden expansionist desires are driven by the same concerns as the rest of the industry — it’s getting harder to find gold and more expensive to mine it, according to John McCluskey chief executive of Alamos Gold Inc.

Barrick is pursuing a $17.8-billion hostile bid for its arch rival, Newmont Mining Corp., in a deal that would combine the two largest gold companies into a firm of unparalleled size.

If successful, it would have numerous consequences for the rest of the gold industry, potentially laying the groundwork for future asset sales and consolidation, and also potentially pulling new generalist investors into the high-risk, high-reward precious metals sector. Continue Reading →

Barrick, Newmont work toward joint-venture deal – by Niall McGee and Rachelle Younglai (Globe and Mail – March 6, 2019)

The chief executives of Barrick Gold Corp. and Newmont Mining Corp. are working to reach agreement on a critical joint-venture deal that could stave off a high-stakes takeover battle, but deep divisions remain between the world’s largest gold producers.

Barrick CEO Mark Bristow and Newmont CEO Gary Goldberg were scheduled to meet in New York on Tuesday evening to discuss terms of a possible joint venture (JV) at their adjacent Nevada mining operations, according to a source familiar with the talks who was not authorized to speak publicly. Major shareholders of both companies are urging executives to solve long-standing disagreements over the proposal.

Newmont on Monday rejected Barrick’s US$17.8-billion all-stock, zero premium takeover offer, and instead proposed a joint-venture agreement in Nevada between the two companies. Newmont proposed an ownership split of 55 per cent in favour of Barrick with both companies sharing management responsibilities. Continue Reading →

Newmont CEO Eager to Meet with Barrick But Not About Merger – by Danielle Bochove and Ed Hammond (Bloomberg News – March 5, 2019)

After more than a week of tough talk firing back and forth, the leaders of the two biggest gold producers are finally coming to the table.

Newmont Mining Corp. Chief Executive Officer Gary Goldberg said he will be meeting with Barrick Gold Corp.’s Mark Bristow later Tuesday in New York to talk through their differences. However, he said in a Bloomberg TV interview that he won’t be discussing Barrick’s bid for his company, but rather Newmont’s proposal for a joint venture around the two companies’ assets in Nevada.

Goldberg said he heard from Bristow earlier and that “I’m looking forward to catching up with him later today here in New York. This will be the discussion on the joint venture with what we proposed yesterday.’’ Barrick spokeswoman Kathy du Plessis didn’t immediately have a comment. Continue Reading →

What Humphrey Bogart Can Teach the Gold Diggers – by David Fickling (Bloomberg News – March 5, 2019)

Barrick and Newmont have far more to gain from cooperating than bickering with each other. Here’s one way to get past their squabbles.

In the classic John Huston film “Treasure of the Sierra Madre,” a group of gold prospectors strike it rich before squandering their good fortune in a tangle of greed, distrust, murder and paranoia.

Something similar is happening to Barrick Gold Corp. and Newmont Mining Corp. in Nevada. Disagreements about how to manage and develop what’s arguably the world’s best-endowed area of gold deposits look set to ensure that both companies continue in an awkward and bad-tempered cohabitation, rather than growing rich together.

Every parent who’s dealt with siblings yelling “Mine!” at each other knows the way to end this sort of squabble: Take away the toys. As it happens, that might be a way to solve this fight. Continue Reading →

OPINION: Newmont’s combative counterattack does not mean Barrick Gold is defeated – by Eric Reguly (Globe and Mail – March 5, 2019)

Barrick Gold’s lunge for Newmont Mining has officially gone hostile, extremely so, with Newmont formally rejecting the Canadian company’s US$17.8-billion offer and blasting its executive chairman, John Thornton, for shabby performance. But this is not the end of the story – don’t count Barrick out just yet.

On Monday, as expected, Newmont, America’s biggest gold company, told Barrick to hit the road. Its all-share, nil-premium offer, revealed on Feb. 25, was a non-starter, Newmont said in its presentation, arguing that Newmont’s proposed US$10-billion takeover of Vancouver’s Goldcorp was less risky and would create ample value for shareholders.

Newmont and its CEO, Gary Goldberg, lashed out at both Mr. Thornton and Barrick CEO Mark Bristow, though it was Mr. Thornton, the former Goldman Sachs boss who replaced the late Peter Munk as Barrick chairman in 2014, who took the most criticism. Continue Reading →