Republic of Mining

Murky carbon path threatens US$14 trillion in oil and gas projects – by Yadullah Hussain (Financial Post – May 26, 2021)

May 26, 2021

The latest bombshell report from the International Energy Agency recommending the abrupt halt of all new oil, natural gas and coal projects has shaken up the global energy complex, but few see the pathways as clear as the agency does.

Last week, the IEA advocated shelving new hydrocarbons projects if the world is to meet its net zero targets by 2050. The change of tone for an agency that was set up to ensure oil security in the aftermath of the Arab oil embargo of 1973 underscores the massive upheavals under way in the global energy complex, but it also highlights the difficulty of switching to renewable energies.

Canada was one of the 17 founding members of the IEA that gave the autonomous agency — hosted at the Organization for Economic Co-operation and Development in Paris — a broad mandate on energy security and energy policy back in the 1970s.

Australian private-equity firm targets acquisition of Ring of Fire explorer Noront – by Niall McGee (Globe and Mail – May 26, 2021)

May 26, 2021

https://www.theglobeandmail.com/

Australian private-equity firm Wyloo Metals Pty Ltd. says it intends to acquire Canadian Ring of Fire exploration company Noront Resources Ltd. for $133-million.

The company made its unsolicited approach as Toronto-based Noront runs low on cash, and after years of toiling without success to get its chromite and nickel minerals projects off the ground in the Ring of Fire mining district.

While Noront has long promoted the swampy remote region of Northern Ontario as holding a treasure trove of strategic metals, it hasn’t put any mines into production.

Australians look to go all-in on the Ring of Fire – by Staff (Northern Ontario Business – May 25, 2021)

May 25, 2021

https://www.northernontariobusiness.com/

Wyloo Metals makes take-over bid for Noront Resources

Noront Resources largest shareholder, Australia’s Wyloo Metals, intends to make a bid to acquire the Ring of Fire mine developer.

Perth, Australia-headquartered Wyloo Metals announced May 25 that it intends to make an offer to acquire all of the outstanding common shares in Noront that it does not currently own in a proposed $133-million deal.

Privately-held Wyloo made its initial buy-in last December, through a subsidiary company, Wyloo Canada Holdings, taking a 23 per cent stake of Noront’s common shares.

Wyloo is owned by Australian mining and green energy billionaire Andrew Forrest and his privately-held investment company Tattarang. Wyloo succeeded Resources Capital Fund as Noront’s biggest shareholder.

[Burkina Faso] With gold M&A heating up, could Orezone’s Bomboré project be ripe for the picking? – by Henry Lazenby (Mining.com – May 25, 2021)

May 25, 2021

https://www.mining.com/

Gold analysts are pointing to substantial levels of pent-up demand for mergers and acquisitions (M&A) activity in the mid-tier and emerging producer space in the coming months, as the world emerges from the pandemic crisis and people can conduct onsite physical due diligence again.

One of the hot picks tipped for acquisition is Orezone Gold (TSXV: ORE, US-OTC: ORZCF) and its Bomboré gold development project in Burkina Faso.

While the major gold producers have largely completed as much consolidation as possible and are now sporting diversified, sustainable production profiles, the producers are looking to fill reserve depletion organically, focusing on brownfields exploration, or picking up single-asset development projects as potentially the likes of Bomboré.

Centerra Gold accuses former director of conspiring to steal Kumtor mine – by Niall McGee (Globe and Mail – May 21, 2021)

May 25, 2021

https://www.theglobeandmail.com/

Centerra Gold Inc. has launched a lawsuit aimed at ejecting the new external manager of the recently nationalized Kumtor mine in the Kyrgyz Republic, alleging that he conspired to steal the asset from under the nose of the Canadian gold company while he was a director.

In the suit filed in the Ontario Superior Court on Thursday, Centerra alleges former board member, Tengiz Bolturuk, worked in secret with Canadian and U.S. law firms, and the Kyrgyzstani government to orchestrate an expropriation of the giant gold mine. “He had given his word to the President of the Republic that they would take back the Kumtor mine,” the suit said.

Mr. Bolturuk, a dual Kyrgyzstani and Canadian citizen, was a director of Toronto-based Centerra up until a few days ago. He joined the board in December as a representative of the Kyrgyzstani government, Centerra’s biggest shareholder, but resigned on May 17 after Kyrgyzstan seized control of Kumtor.

NEWS RELEASE: Noront Responds to Unsolicited Proposal by Wyloo Metals

May 25, 2021

TORONTO, May 25, 2021 (GLOBE NEWSWIRE) — The Board of Directors of Noront Resources Ltd. (“Noront” or the “Corporation”) (TSX Venture: NOT) notes the announcement today by Wyloo Metals Pty Ltd., (“Wyloo”) a subsidiary of Tattarang Pty Ltd. (“Tattarang”), that it intends to commence an unsolicited proposal to acquire all of the common shares of Noront (the “Proposal”).

The Corporation will review the terms of the Proposal and will communicate with its shareholders as appropriate.

Noront recommends that shareholders defer taking any action in respect of the Proposal. Shareholders are reminded that the announcement does not constitute an offer, and no offer may ever actually be made. As an unsolicited proposal by an insider of the Corporation, shareholders will be entitled to receive a valuation of the Corporation in order to consider the Proposal.

Forrest in $142m takeover bid for Canadian nickel player – by Brad Thompson (Australian Financial Review – May 26, 2021)

May 25, 2021

https://www.afr.com/

Andrew Forrest has launched a takeover bid that will give him control of a high-grade nickel project in Canada as he looks to establish himself in the region and become a major force in battery metals independent of his multi-billion dollar iron ore interests.

The takeover bid, made through the Forrest family’s private investment arm Tattarang, values Noront Resources at $C133 million ($142.3 million) and comes six months after Dr Forrest grabbed control of a nearly 37 per cent stake in Noront through a deal with Resource Capital Fund.

Toronto Stock Exchange-listed Noront’s assets include Canada’s highest grade nickel discovery since Vale-owned Voisey’s Bay. The Forrest camp has signalled it is willing to bankroll development of the discovery along with other projects in a region known as the Ring of Fire.

Global Mining Symposium: Demand for nickel in EV batteries could lead to supply shortage in the next couple of years, says McKinsey’s Ken Hoffman – by Carl A. Williams (Northern Miner – May 22, 2021)

May 25, 2021

https://www.northernminer.com/

The growing market for electric vehicles is likely to see increased pressure for nickel, a critical component for the nickel-manganese-cobalt (NMC) batteries used in EVs, Ken Hoffman, senior expert at McKinsey’s Basic Materials Institute, said during The Northern Miner’s Global Mining Symposium in May.

In an interview with Frik Els, executive editor of MINING.com, Hoffman said that sales of EVs reached over 3 million units last year, up from around 22,000 a decade ago.

“If it weren’t for a shortage of [micro]chips in 2021, you’d probably be looking at six to seven million EVs sold by the end of this year,” he said.

Coal industry scientists say community involvement is key to making mines safe – by Bob Weber (Globe and Mail/Canadian Press – May 23, 2021)

May 25, 2021

https://www.theglobeandmail.com/

Coal mines can be environmentally safe and can become useful, enjoyable landscapes when the seam runs out, say scientists working with industry.

But they admit that there are risks and costs, and urge communities and miners to work together from the start to understand and minimize them.

“There’s a lot of mitigative measures you can take when you’re designing a mine,” said Guy Gilron, a biologist and toxicologist who has worked on many mine projects, including some proposed for Alberta’s Rocky Mountains.

Steelworkers seek gains in new contract – by Staff (Sudbury Star – May 25, 2021)

May 25, 2021

https://www.thesudburystar.com/

This will be a critical week as negotiators for Steelworkers Local 6500 and Vale try to work out a new contract by May 31. That’s when the current labour contract expires.

USW Local 6500 represents more than 2,500 production and maintenance workers in mining, milling, smelting and refining at Vale’s Sudbury operations.

Vale, with almost 4,000 workers, is Sudbury’s largest employer. In Sudbury, it operates five mines, a mill, a smelter and a refinery from one of the largest integrated mining complexes in the world. Sudbury products include nickel, copper, cobalt, platinum group metals, gold and silver.

NEWS RELEASE: Wyloo Metals Announces Intention to Make an All-Cash Offer for Noront Resources at CDN$0.315 Per Share (May 25, 2021)

May 25, 2021

PERTH, Australia, May 25, 2021 (GLOBE NEWSWIRE) — Wyloo Metals Pty Ltd. (“Wyloo Metals”) announced today that it intends to make an offer (the “Offer”) to acquire all of the outstanding common shares of Noront Resources Ltd. (TSXV:NOT) (“Noront”) that it does not currently own at a price of Cdn$0.315 in cash per Noront share. The Offer values Noront at approximately Cdn$133 million on an undiluted basis, and represents a substantial premium of:

91% based on the closing price of Noront shares on the TSX Venture Exchange (“TSXV”) of Cdn$0.165 on December 4, 2020, the last trading day prior to the announcement of Wyloo Metals’ original agreement to invest in Noront;
31% based on the closing price of Noront shares on the TSXV of Cdn$0.240 on May 21, 2021, the last trading day prior to the announcement of the Offer; and
29% to the volume weighted average trading price of Noront shares on the TSXV for the twenty (20) trading day period ended on May 21, 2021, the last trading day prior to the announcement of the Offer.

Canada has “right ingredients” to be EV battery leader – by Cecilia Jamasmie (Mining.com – May 19, 2021)

May 19, 2021

https://www.mining.com/

Canada has a “once-in-generation” opportunity to establish itself as a major player in the global battery sector, but it needs to act fast to seize the opportunity, a new report reflecting the views of stakeholders across the electric vehicle (EV) supply chain shows.

Clean Energy Canada’s study, compiling opinions of major actors in the sector, such as General Motors Canada, Lion Electric, the Mining Association of Canada (MAC), the Automotive Parts Manufacturers’ Association and Unifor, concludes the country has the right ingredients for a successful battery sector.

Canada is rich in lithium, graphite, nickel, cobalt, aluminum and manganese, key ingredients for advanced battery manufacturing and storage technology.

Canadian oilpatch ‘confident’ IEA will alter dire warning on oil and gas once emissions tech gains ground – by Gabriel Friedman (Financial Post – May 19, 2021)

May 19, 2021

https://financialpost.com/

Reaching net zero by 2050 while achieving net economic growth is plausible, but would require drastic immediate changes

A new report by the International Energy Agency warns that the energy sector will need to shelve investments in new oil, natural gas and coal projects if the world is to reach net zero carbon emissions target by 2050 — a recommendation that could lead to a path that would have significant consequences for Canada’s fossil fuels industry.

Reaching net zero by 2050 while achieving net economic growth is plausible, according to the IEA report released Tuesday, but would require drastic immediate changes, and will require immediate and massive deployment of all available clean and efficient energy technologies.

“I think it would be an error for oil and gas and the Canadian energy industry to ignore the changes that are coming,” said Tristan Goodman, president of the Explorers and Producers Association of Canada, a lobbying group for oil and gas.

Centerra moves to block Kyrgyzstan government from selling shares after Kumtor mine nationalized – by Niall McGee (Globe and Mail – May 19, 2021)

May 19, 2021

https://www.theglobeandmail.com/

Centerra Gold Inc. is trying to stop the Kyrgyzstan government from selling shares in the company, after the former Soviet Republic nationalized a giant mine operated by the Canadian firm.

After close to two decades of turbulence between Kyrgyzstan and Centerra, the landlocked central Asian state seized control of the Kumtor mine on the weekend, citing safety violations by the Toronto-based miner. As the largest of Centerra’s three gold mines, Kumtor accounts for more than half of its output.

Centerra on Sunday launched an arbitration suit against the Kyrgyz Republic, a legal maneuver that could take years to play out. Late Monday, the company took more immediate action, saying any attempt by the Kyrgyz government to sell its shares would violate an earlier investment agreement.

Miner Earns Eightfold Gain Striking Palladium on City’s Doorstep – by James Thornhill (Bloomberg News – May 17, 2021)

May 19, 2021

https://www.bnnbloomberg.ca/

(Bloomberg) — Sometimes buried treasure can be hiding right under your nose. Just ask Alex Dorsch, whose company found what could be Australia’s first major palladium resource on the fringes of Perth, the nation’s mining hub.

“It’s a fascinating bit of serendipity,” said Dorsch, managing director of Chalice Mining Ltd., which has seen its shares rise more than eightfold since confirming the Julimar discovery just over 12 months ago. “It is quite amazing that it wasn’t found in the 1960s or 70s to be honest,” he said in a phone interview.

Chalice, whose shareholders include mining magnate Robert Friedland and Blackrock Inc., plans to add supply to a palladium market that’s been in deficit for years due to high demand for the metal, used in catalytic converters to curb emissions in gasoline-powered vehicles.