Republic of Mining

Hunter promises better deal for North – by Jim Moodie (Sudbury Star – February 4, 2020)

February 4, 2020

https://www.thesudburystar.com/

Liberal leadership candidate releases her Northern Ontario platform

She may have been born in Jamaica and raised in the GTA, but Liberal leadership hopeful Mitzie Hunter has spent time in Northern communities, too, and wants to see the region prosper.

“Having a strong Northern Ontario makes Ontario stronger,” she told The Star on Monday. “Having a Northern understanding is very important for me, and it’s not just now that I’m in the race.”

As education minister in the Kathleen Wynne government, the Scarborough-Guildwood MPP visited the region on multiple occasions and introduced policies to benefit residents.

Poland puts Polish coal first; halts imports: minister – by Agnieszka Barteczko (Reuters U.S. – February 4, 2020)

February 4, 2020

https://www.reuters.com/

WARSAW (Reuters) – Polish state-run power producers will halt coal imports, State Assets Minister Jacek Sasin said on Tuesday, after protests by mining trade unions over foreign supplies they say are a threat to the domestic industry.

Poland generates most of its electricity from coal, but domestic output has fallen because of cost-cutting and geological problems in old mines, which had led to higher imports, mostly from Russia.

Last week around 100 miners blocked trains carrying coal to a power plant in the southern town of Laziska Gorne in protest at imports from Russia by state-run energy groups, including PGE and Tauron.

For the Beaten-Down Miners, It’s All About Timing: Taking Stock – by Michael Msika (Bloomberg News – February 4, 2020)

February 4, 2020

https://finance.yahoo.com/

(Bloomberg) — When do you catch a falling knife? That’s what investors in resource-related stocks must wonder after the Stoxx basic resources sub-sector tumbled nearly 10% since the coronavirus crisis escalated in mid-January, and as commodity prices are rebounding today.

Metals and miners have been feeling the heat, as uncertainty mount over the impact on Chinese economic growth and demand for commodities. But as in every sell-off, pockets of opportunity may be emerging.

First, there’s the context: China now accounts for over half of global demand for industrial metals, compared to 20-25% in 2003 when the SARS virus broke out, says Hans Guennewigk, a portfolio manager at Consortia Asset Management. But: there’s also what the country might do to limit the economic damage.

Oil prices drop as spreading coronavirus outbreak reduces demand for fuel – by Emma Graney (Globe and Mail – February 4, 2020)

February 4, 2020

https://www.theglobeandmail.com/

Crude oil prices fell to their lowest point in more than a year amid growing concerns that the coronavirus outbreak is weighing on the global economy and quickly sapping demand for fuel.

West Texas intermediate oil slumped to US$49.91 a barrel early Monday, the first drop below US$50 since January, 2019, and down sharply from levels above US$60 early this year. Prices for Brent crude, the international benchmark, have also fallen.

Demand for crude oil has quickly dropped as refineries in China curtail production to reflect lower requirements for fuel in the country. A broad shutdown of economic activity and travel in areas affected by the coronavirus outbreak means tens of millions of citizens are staying in their homes in a bid to slow the spread of the virus.

British Columbia: Hoping for more gold, 120 years after the Atlin gold rush began – by Matthew McFarlane (CBC News British Columbia – February 2, 2020)

February 4, 2020

https://www.cbc.ca/news/canada/british-columbia/

‘There’s gold in these veins,’ says CEO of exploration company looking for the source of Atlin’s gold

Some cities are born and die as gold rush towns. Barkerville, Skagway, Dawson City all saw their fates ride on gold and now have become museums of sorts — a tribute to their former glory.

But one far flung B.C. community still has the lure of gold in its eye, long after it saw its gold rush come and go.

Atlin lies in the the very northwest corner of B.C. The only way in and out is through Yukon Territory. The community hugs the shores of its namesake, the massive glacier-fed Atlin Lake. It has a rustic ghost-town-like feel. Ramshackle buildings, quiet streets, abandoned mining equipment — it’s a peaceful and tranquil spot, a far cry from the place it was over 100 years ago.

Platinum Mining Giant Says South Africa Running Out of Time – by Felix Njini (Bloomberg News – February 3, 2020)

February 3, 2020

https://finance.yahoo.com/

(Bloomberg) — South African President Cyril Ramaphosa may be running out of time to enact the reforms required to attract significant investments in the country’s mining industry.

That’s the fear expressed by Sibanye Gold Ltd. Chief Executive Officer Neal Froneman, who prefers to look at opportunities in West Africa, the Americas and Australia. The risks of doing business in his home country will increase should weak economic growth and ballooning government debt be compounded by the loss of South Africa’s last investment-grade credit rating, he said.

“There has been a distinct lack of turnaround, if anything we have gone backward,” Froneman said in an interview before executives gather in Cape Town on Monday for Africa’s biggest mining conference. “To be clear and blunt, he also hasn’t made some of the difficult decisions and we are hurtling into a debt trap.”

Column: China’s commodities got smashed as expected. Now what? – by Clyde Russell (Reuters U.K. – February 3, 2020)

February 3, 2020

https://uk.reuters.com/

LAUNCESTON, Australia (Reuters) – It’s no surprise that commodity prices in China were hammered on Monday when the virus-hit country reopened its exchanges after a week-long Lunar New Year holiday. What will be more important is what happens on Tuesday.

It was a sea of red ink as domestic investors got to trade for the first time since Jan. 23, with Dalian Commodity Exchange (DCE) iron ore dropping the maximum allowed 8% to 606.5 yuan ($86.64) a tonne at the opening bell.

Iron ore wasn’t the only commodity smashed. Shanghai steel rebar futures reached their down limit of 8% as well, dropping to 3,233 yuan a tonne before recovering slightly in early afternoon trading to around 3,260 yuan.

Gold Mine Gangs Tote AK-47s to Outgun South African Police – by Felix Njini (Bloomberg News – February 2, 2020)

February 3, 2020

https://finance.yahoo.com/

(Bloomberg) — At 10 p.m. on the second Sunday in December, a criminal platoon armed with AK-47 and R6 assault rifles stormed one of the largest gold mines still operating on South Africa’s fabled Witwatersrand basin.

Moving with military precision, the 15 attackers took hostages and plundered the smelting plant at Gold Fields Ltd.’s South Deep mine. While failing to break into the main vault, the gang escaped three hours later with gold concentrate worth as much as $500,000.

Violent crime soared through a decade of kleptocracy and graft under South Africa’s former President Jacob Zuma. Gold mines offer soft targets for syndicates that previously specialized in cash-in-transit heists. Their foot-soldiers outgun a demoralized police force and pile woes on a gold industry in the final stages of a decades-long death spiral.

Nickel price under pressure in 2020 – report – by Valentina Ruiz Leotaud (Mining.com – February 2, 2020)

February 3, 2020

https://www.mining.com/

A report by Wood Mackenzie argues that despite the global continued investment in new battery plants, weaker demand for nickel sulphate or NiSO4 tied to last year’s cut in Chinese electric vehicle subsidies will translate to more discounts in the metal’s price in 2020.

“We previously noted that premiums for NiSO4 might come under pressure due to stronger supply. While that did materialise, the unexpected and immediate mid-year downgrading in Beijing’s EV subsidy programme had a greater impact,” Wood Mackenzie’s Head of Nickel, Andrew Mitchell, wrote in the report.

“EV sales were reduced by half, China’s EV sales target of 1.5 million units was derailed and this cut demand for batteries and, therefore, precursor materials, including NiSO4. The impact will extend well into 2020.”

Zimbabwe: ZCDC Sets Sight On Doubling Diamond Production – by Donald Nyarota (All Africa – February 3, 2020)

February 3, 2020

https://allafrica.com/

The Zimbabwe Consolidated Diamond Mining Company (ZCDC) failed to meet its 2019 target of 3 million carats, but officials are buoyant fortunes will turn around as the firm has consolidated its investments in exploration, mining and processing to improve output this year.

Speaking durng a media tour of Chiadzwa diamond fields on Friday last week, Acting ZCDC Chief Executive Officer Roberto DePreto said they are aiming to double the 1.6 million carats produced last year through joint venture agreements, increased exploration as well as mitigating viability challenges, linked to power shortages and access to foreign currency.

“Since the Diamond Policy was issued we are now looking for joint venture partners, those joint venture partners get allocated a particular concession and we then subdivide the (overall) 626 special grant into specific special grants for those venture companies.

Miners face funding squeeze as green investing surges – by Helen Reid and Tanisha Heiberg (Reuters Canada – February 3, 2020)

February 3, 2020

https://ca.reuters.com/

CAPE TOWN (Reuters) – As global investors shift away from heavy industry in favor of cleaner sectors, mining companies are losing billions in financing, raising the cost of capital and jeopardizing projects.

Making the mining industry more sustainable by running mines on renewable energy, for example, will be a key focus at the annual Investing in African Mining Indaba conference in Cape Town this week, as companies hunt for new sources of capital including private equity, debt, offtake finance and royalty finance.

Environmental, social & governance (ESG) concerns have driven money into specialized ESG funds which often exclude mining stocks among other ‘dirty’ assets. “You talk to anyone at the moment, they say there’s no money,” said Boris Kamstra, executive director of Alphamin Resources, which manages the Bisie tin project in Democratic Republic of Congo.

NEWS RELEASE: Deloitte Global mining report explores key trends in 2020

February 3, 2020

• As the industry balances growth strategies with preparation for a possible economic downturn, companies are revisiting talent and diversity, strengthening community relationships, and seeking new ways to create value.

• Navigating this complex landscape will require strong leadership, with mining executives expected to have broader skill sets as well as be fluent in everything from technology to environmental impacts.

Full Report: https://bit.ly/2OiTuED

Toronto, February 3rd, 2020 — Released today, the 12th annual edition of Deloitte Global’s mining report, Tracking the Trends, explores key trends facing mining companies in their ongoing pursuit of productivity, financial discipline, operational excellence, and sustainable growth.

Miners Head For Cape Town, Perhaps Followed By The New Coronavirus – by Tim Treadgold (Forbes Magazine – February 2, 2020)

February 3, 2020

https://www.forbes.com/

One of the mining world’s biggest events, Mining Indaba, kicks off in South Africa’s holiday city, Cape Town, on February 3, but how many delegates from China are able (or allowed) to attend is a tricky question.

Organizers are hoping for a full house of 6,500, and until a few days ago, that looked achievable especially as African countries with their rich endowment of minerals and metals are a magnet for big commodity consumers, especially China.

Unfortunately this natural fit of geological wealth and the demands of a country which consumes 50% of imported commodities such as copper and iron ore, has been disturbed by an unwelcome arrival: a novel coronavirus which has infected thousands and killed hundreds as it marches across China and into the outside world.

Generalist investors shun gold stocks, despite bullion’s big move – by Niall McGee (Globe and Mail – February 3, 2020)

February 3, 2020

https://www.theglobeandmail.com/

Generalist investors are largely shunning gold stocks, despite the brisk run up in the price of gold bullion – stalling share prices and straining efforts to raise capital.

Since late 2011, when the price of bullion went into a multiyear tailspin, generalists – or sector-agnostic investors (as opposed to specialist mining funds) – have mostly abandoned gold stocks.

But even as the price of gold has climbed from US$1,050 an ounce in late 2015, to roughly US$1,580 currently, investors have by and large stayed away. “Generalists are still largely underweight, or not involved in the gold sector,” James Bell, analyst with RBC Dominion Securities Inc., wrote in a recent note to clients.

Private Equity Abandons Mining as Deal Opportunities Dry Up – by Thomas Biesheuvel (Bloomberg News – February 3, 2020)

February 3, 2020

https://www.bloomberg.com/

Private equity firms lost interest in the mining world last year, pumping 75% less money into the sector as they focused more on funding existing investments.

Investments dropped to $500 million from $2 billion a year earlier, according to a report by law firm Bryan Cave Leighton Paisner. That was the lowest amount since the company started tracking the space in 2013.

Private equity poured money into the mining sector several years ago when big producers were forced to shed assets amid a collapse in commodity prices.