Republic of Mining

BHP strikes friendly deal to buy Ring of Fire explorer Noront for $325-million – by Niall McGee (Globe and Mail – July 28, 2021)

July 28, 2021

https://www.theglobeandmail.com/

BHP Group Ltd. has reached a friendly agreement to acquire Ring of Fire explorer Noront Resources Ltd. for $325-million, trumping an earlier unsolicited approach from Australian private equity firm Wyloo Metals Pty Ltd.

Melbourne-based BHP said it intends to pay 55 cents a share in cash for Toronto-based Noront, 69-per-cent higher than the company’s closing price on the TSX Venture Exchange on Monday. The offer is also significantly higher than the $0.315-a-share proposal made by Wyloo, currently Noront’s largest shareholder, in May.

The Ring of Fire, situated 550 kilometres northeast of Thunder Bay in the James Bay Lowlands in Ontario’s Far North, has had an almost mythical hold on the Canadian mining industry for more than a decade, but so far no company has succeeded in building any mines in the region.

Australian company BHP makes takeover bid for Canada’s Noront Resources (CBC Thunder Bay – July 27, 2021)

July 28, 2021

https://www.cbc.ca/news/canada/thunder-bay/

Another Australian company is moving forward with a takeover bid for Noront Resources, with a cash offer for all outstanding and issued shares of the Canadian company.

Noront’s board of directors is recommending shareholders accept the offer from BHP, which would pay 55 cents cash for each share.

This is the second Noront takeover bid by an Australian company this year. In May, Wyloo Metals offered 31.5 cents cash for Noront shares.

BHP beats Forrest in takeover battle for prized nickel project – by Brad Thompson (Australian Financial Review – July 27, 2021)

July 28, 2021July 28, 2021

https://www.afr.com/

BHP has made a sensational bid to snatch a high-grade nickel project in Canada from the clutches of Andrew Forrest in another sign of how determined it is to secure a future in battery metals.

The BHP bid for Noront Resources unveiled on Tuesday night trumps a takeover offer lobbed by Dr Forrest’s privately-owned Wyloo Metals in May.

How Dr Forrest will react to the BHP raising the takeover stakes by a substantial premium remains unclear, with Wyloo controlling about 37 per cent of Noront stock.

News Release: Rio Tinto commits funding for Jadar lithium project (July 27, 2021)

July 27, 2021

LONDON–(BUSINESS WIRE)–Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.

The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.

Jadar will produce battery-grade lithium carbonate, a critical mineral used in large scale batteries for electric vehicles and storing renewable energy, and position Rio Tinto as the largest source of lithium supply in Europe for at least the next 15 years. In addition, Jadar will produce borates, which are used in solar panels and wind turbines.

BHP swoops on Canadian nickel miner, trumping Forrest – by Thomas Biesheuvel (Bloomberg News – July 27, 2021)

July 27, 2021

https://www.bnnbloomberg.ca/

BHP Group agreed to buy Noront Resources Ltd. to add a nickel project in Canada, trumping a bid by Australian mining magnate Andrew Forrest, as the world’s biggest miner accelerates its push into metals poised to benefit from the green-energy transition.

BHP is increasingly gearing its portfolio toward so-called commodities of the future, as investors put greater weight on resource companies’ environmental credentials. The company is in the process of exiting thermal coal and is considering getting out of oil and gas.

At the same time, it’s putting greater emphasis on metals like copper and nickel, needed to support the green revolution. Last week it sealed a nickel supply agreement with Tesla Inc. and is expected to sanction a giant potash project later this year.

NEWS RELEASE: BHP makes recommended all-cash offer of C$0.55 per share for Noront (July 27, 2021)

July 27, 2021

Noront Board recommends shareholders accept the offer

Consideration of C$0.55 per share represents a 129% premium to Noront’s unaffected closing price on May 21, 2021 and a 69% premium to Noront’s closing price on July 26, 2021, the last trading day prior to announcing this transaction.
The members of the Noront Board who voted on the matter unanimously recommend shareholders accept the offer.
Noront directors and senior management and a major shareholder holding an aggregate of 9.9% of the Noront shares on a fully diluted basis1 have agreed to tender all of their Noront shares to the offer.
Noront represents a growth opportunity in a prospective nickel basin capable of delivering a scalable, new nickel-sulphide district and provides the BHP group with more growth options in future facing commodities.
With proven expertise and capabilities in both exploration and bringing complex base metals projects into production, the BHP group is well positioned to advance Noront’s Ring of Fire projects through the next stages of development.
To tender your shares contact your broker or Kingsdale Advisors. Contact information is included below.

Western Democrats to push US mining industry changes – by Matthew Brown (Winnipeg Free Press/Associated Press – July 26, 2021)

July 26, 2021

https://www.winnipegfreepress.com/

BILLINGS, Mont. (AP) — House Democrats from some Western states are preparing to push for changes to a longstanding law that governs mining for copper, gold and other hardrock minerals on U.S.-owned lands, including making companies pay royalties on what they extract.

A report published Monday by the Government Accountability Office shows that the U.S. stands out among some other countries such as Australia, Canada and Chile that collect royalties on minerals.

The U.S. does not collect royalties on those minerals in most cases. House Natural Resources Committee Chairman Raul Grijalva said the mining industry should pay at least as much as oil and gas companies, which typically pay royalties of 12.5% on the value of resources extracted from federal lands.

Climate scientists begin key report as G20 failed to reach phase-out coal deal – by Cecilia Jamasmie (Mining.com – July 26, 2021)

July 26, 2021

https://www.mining.com/

More than 200 of the world’s leading climate scientists began working Monday on an updated version of a key report summarizing how Earth’s climate has already changed, and what humans can expect for the rest of the century.

The last time the Intergovernmental Panel on Climate Change (IPCC), a United Nations body that coordinates research about global warming, published this report was in 2013.

At the time, the experts said humans were the “dominant cause” of global warming since the 1950s. The document paved the way for the Paris climate agreement signed in 2015.

Questioning The Sustainability Of Biden’s Brave New Green World – by David Blackmon (Forbes Magazine – July 25, 2021)

July 26, 2021

https://www.forbes.com/

A Biden administration official who heads up the Department of Energy’s Loans Program office complained this week that U.S. government and industry were not investing nearly enough in ‘clean’ energy programs and projects to meet the administration’s climate change goals.

The official, Jigar Shah, speaking in an episode of the CERAWeek Conversation series sponsored by IHS Markit, estimated total U.S. investment currently to be roughly $200 billion per year, but then stated that the total annual spending needs to be more like $1 trillion.

“The pace at which we are deploying climate solutions is wholly unacceptable,” he said, continuing on to say that “We perennially have too much money and not enough projects.

News Release: Wyloo Metals confirms its intention to convert loan (July 23, 2021)

July 26, 2021

PERTH, Australia, July 23, 2021 (GLOBE NEWSWIRE) — Wyloo Metals Pty Ltd. (“Wyloo Metals”) is pleased to provide an update in relation to the US$15 million convertible loan (the “Convertible Loan”) provided to Noront Resources Ltd. (TSXV:NOT) (“Noront”).

Intention to convert loan

On December 7, 2020, Wyloo Canada Holdings Pty Ltd (“Wyloo Canada”), a wholly-owned subsidiary of Wyloo Metals, entered into an agreement with Resource Capital Fund V L.P. (“RCF”) to acquire its interests in Noront, including the Convertible Loan. The maturity date of the loan is September 30, 2021 and it is convertible into common shares of Noront at the option of Wyloo Metals at Cdn$0.20 per common share. Wyloo Canada also holds warrants (“Noront Warrants”) to acquire 1,774,664 common shares of Noront at an exercise price of Cdn$0.350 per share.

Wyloo Metals confirms that it intends to convert the Convertible Loan at or before the maturity date into common shares of Noront, rather than seek repayment from Noront in cash.

‘Inexplicably frozen’: Judge quashes Ottawa’s Coalspur order as it failed to consult with Ermineskin Cree Nation – by Kelsey Rolfe (Financial Post – July 24, 2021)

July 26, 2021July 26, 2021

https://financialpost.com/

Comes just weeks after a federal policy statement on thermal coal all but sent Coalspur’s Vista expansion up in smoke

Coalspur Mines Ltd.’s controversial Vista mine expansion project is no longer subject to the federal impact assessment process, a federal judge ruled this week.

The Federal Court ruling quashed a June 2020 designation order from Environment and Climate Change Minister Jonathan Wilkinson that subjected both Vista’s proposed open-pit expansion and underground test mine to review by the federal impact assessment agency.

It found the minister had failed to consult the Ermineskin Cree Nation, which has an impact benefit agreement with Coalspur, and instead only consulted Indigenous communities who sought the designation order before issuing his decision.

The Drift: Could the mining industry consider the nuclear option to power remote mines? – by Ian Ross (Northern Ontario Business – July 23, 2021)

July 23, 2021

https://www.northernontariobusiness.com/

Laurentian University research institute studies how small-scale reactors could replace diesel generation in the Far North

Is there a viable marriage between mining and nuclear power? Laurentian University researcher François Caron aims to find out. There are 10 off-grid operating mines in remote areas of Canada, most of them reliant on diesel generation.

That’ll be a no-go in the years to come as the mining industry faces mounting pressure from society, government climate change legislation, even environmentally conscious investors, to cut its greenhouse-gas emissions and carbon footprint.

To be able to power potential mining camps in greenfield areas where grid power doesn’t reach, the nuclear energy option is being increasingly examined.

Analysts expect global shortage of precious metals in years to come – by Eugene Gerden (Resource World – July 22, 2021)

July 23, 2021

https://resourceworld.com/

The increase of demand for clean energy sources and the ever growing popularity of electric vehicles and energy storage systems in the world may lead to a shortage of metals in the global market followed by a sharp increase in prices for them in years to come, according to recent statements, made by producers and analysts in the field of mining.

According to recent estimates of the International Energy Agency (IEA), the demand for lithium will grow more than 40 times by 2040, while for cobalt and nickel by 20 times within the next two decades. The same situation is expected to be observed in the case of other precious metals.

Igor Sechin, Chief Executive Officer of Rosneft, Russia’s largest state-owned oil producer, believes such as growth of demand may lead to the shortage of this and other metals in the global market, as the current investments in their exploration and development remains insufficient to ensure their stable supplies to global market.

BHP pushing for tax concessions from Saskatchewan government ahead of construction decision on Jansen mine – by Niall McGee (Globe and Mail – July 23, 2021)

July 23, 2021

https://www.theglobeandmail.com/

BHP Group Ltd. is in discussions with the Saskatchewan government about possible tax breaks as it nears a construction decision on the giant Jansen potash mine, two sources familiar with the talks said.

Australia’s BHP has already sunk US$4-billion into building mine shafts at the site, 140 kilometres east of Saskatoon, and as much as US$5.7-billion is needed to bring Jansen into production. The company is expected to decide as early as next month whether it will proceed with Jansen.

The Globe and Mail and Bloomberg reported in May that BHP was negotiating with Saskatoon-based Nutrien Ltd. on a possible joint venture agreement for Jansen. But the Melbourne-based miner is now facing the prospect of going it alone on Jansen, as talks with Nutrien have fizzled without an agreement in place, one of the sources said.

BHP pulls out in front as Rio Tinto flounders – by Rachael Knowles (National Indigenous Times – July 22, 2021)

July 23, 2021

https://nit.com.au/

BHP is leading the pack in iron ore mining as its competitor Rio Tinto continues to reel from fractured relationships with Traditional Owners in Western Australia’s Pilbara region.

Rio Tinto has seen a steep decline in their iron ore shipments from the Pilbara, with the mining giant reportedly having shipped 76.3 million tonnes in the June quarter, 12 per cent less than the same period in 2020.

The miner also reported total production was down 5 per cent for the first half of this year. With Rio Tinto behind the eight ball, BHP reported their sellings at $US158.15 a tonne in the first half of the year, ahead of Rio Tinto’s $US154.90 a tonne.