Republic of Mining

Copper Tapped as the Next Big Metals Trade of 2020 – by Aoyon Ashraf (Bloomberg News – December 17, 2019)

December 16, 2019

https://www.bloombergquint.com/

(Bloomberg) — Copper, often called “Dr. Copper” due to its correlation with the economic cycle, could be the trade of 2020, as most industry analysts expect a “lift-off” for the metal as global demand recovers.

Gold miners had a blockbuster year in 2019 owing to expectations of U.S. Federal Reserve rate cuts and as geopolitical tension mounted between the U.S.-China. But concern about dampened global demand as a result of trade threats left base metal miners limping into the new year.

But that might reverse next year thanks to improved demand, making copper “poised for liftoff,” according to Jefferies analyst Christopher LaFemina. Low copper inventories, high short positions, supply constraints and better demand are creating conditions for the metal to rally, he wrote in a note to clients.

Seeking a second gold rush: Five companies drilling, or hoping to, in Black Hills – by Staff (Rapid City Journal – December 15, 2019)

December 16, 2019

https://rapidcityjournal.com/

There may be more gold in those hills. So say at least five companies that are either currently drilling holes in the Black Hills to search for gold, or could soon start. Representatives from several of those companies and other industry experts say the price of gold is a primary factor driving the renewed interest in exploratory drilling. After being below $1,400 per ounce for several years, the price of gold has been above that level for several months.

“When a down market hits, the exploration sector is the first one to suffer,” said Rob Bergmann. “When the market comes back up, then the money finally starts funneling down into the exploration sector.”

Bergmann is a partner in F3 Gold, of Minneapolis, which is funding an environmental assessment that it hopes will culminate in approval of its plan to drill on Black Hills National Forest Service land near Silver City.

Striving to understand the mining workforce of the future – by Len Gillis (Northern Ontario Business – December 16, 2019)

December 16, 2019

https://www.northernontariobusiness.com/

Sudbury mining panelists discuss how to recruit, retain employees in the digital age

It is going to take imagination, better communications and some good listening skills for the mining industry to attract and retain enough workers skilled in data-driven and digital technology.

Those were some of the comments during a recent panel discussion held in Sudbury at the annual general meeting of SAMSSA (Sudbury Area Mining Supply and Service Association).

The panel was made up of well-known experts in various sectors of mining. They included Michael Gribbons, vice-president of sales and marketing at Maestro Digital Mine; Lynn Iturregui, project management for mining at Hatch; Roy Slack, the president of CIM (Canadian Institute of Mining, Metallurgy and Petroleum); and Shayne Wisniewski, general manager of mining projects for Glencore’s Sudbury Integrated Nickel Operations.

NEWS RELEASE: Equinox Gold and Leagold Mining Combine to Create a Premier Americas Gold Producer (December 16, 2019)

December 16, 2019

Vancouver, Canada – December 16, 2019 – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold”) and Leagold Mining Corporation (TSX: LMC, OTCQX: LMCNF) (“Leagold”) have entered into a definitive agreement (the “Arrangement Agreement”) to combine in an at-market merger (the “Transaction”), creating one of the world’s top gold producing companies operating entirely in the Americas. The combined entity will continue as Equinox Gold and be headquartered in Vancouver, Canada.

Transaction Highlights

• Gold production of 700,000 ounces in 2020, increasing to 1 million ounces annualized production during 2021 and beyond, based on analyst consensus estimates
• Diversified operating platform with six operating mines in USA, Mexico and Brazil
• Substantial gold reserve and resource base
• Robust revenue, EBITDA and free cash flow
• Concurrent $670 million financing package: an at-market $40 million equity investment from Ross Beaty, a new $130 million convertible debenture issued to Mubadala Investment Company (“Mubadala”) and $500 million in underwritten commitments from a syndicate of lenders to refinance existing credit facilities

A cheer for the Trump uranium plan – by Stephen Moore and Katie Tubb (Washington Times – December 15, 2019)

December 16, 2019

https://www.washingtontimes.com/

Our sources are telling us that President Trump is nearing a decision on how to revive the all-but-dormant American uranium industry. This proposed plan would create a reserve of domestically-mined uranium and stored in a “Federal Uranium Security Stockpile.” One option on the table is for the Department of Defense to purchase uranium through the 1950 Defense Production Act.

The president concluded in July that: “The United States requires domestically produced uranium to satisfy DOD requirements for maintaining effective military capabilities,” including the Navy’s nuclear fleet.

Uranium is used for America’s nuclear arsenal as well as domestic nuclear power plants. The U.S. reactor fleet purchased about 40 million pounds of uranium last year.

OPINION: It is anything but business as usual with climate changing so quickly – by Eric Reguly (Globe and Mail – December 16, 2019)

December 16, 2019

https://www.theglobeandmail.com/

It was all about the climate this week. At three big climate conferences around the world, there was a tension missing from previous events. The climate is changing fast, and societies, economies and corporations can forget about business as usual. The issue no longer has shades of grey – it’s all fire-engine red.

In Madrid, the United Nations held a carbon-markets negotiating session at a site the size of a major airport. At the same time in Brussels, European Union leaders were bashing out a highly ambitious agreement to commit the world’s largest trading bloc to carbon-neutrality by 2050.

And in California, the annual convention of the American Geophysical Union, the world’s largest collection of Earth and space scientists, was presented with more troubling evidence that extreme weather events are not just freaks of nature; humanity’s paw prints are all over them.

Madagascar mining chamber criticises plan to raise minerals taxes (Reuters Africa – December 16, 2019)

December 16, 2019

https://af.reuters.com/

ANTANANARIVO (Reuters) – Madagascar’s mining chamber on Monday sharply criticised a draft mining law that proposes greater government revenue from mining activities, saying the changes will halt new investment and endanger existing mining operations in the country.

The bill, seen by Reuters last week, shows that Madagascar plans to increase its royalties on nickel, cobalt, precious metals, and gemstones to 4% from 2% at present. It also proposes a government stake of at least 20% in any marketable mining production.

The mining chamber said in an emailed statement in response to questions from Reuters that the government did not consult the chamber, the private sector or civil society on the draft bill.

OPINION: The frustration in the West over energy policy is very, very real – by Colleen Collins (Globe and Mail – December 16, 2019)

December 16, 2019

https://www.theglobeandmail.com/

Colleen Collins is vice-president of the Canada West Foundation.

“Imagine if a few decades ago, the federal government in Ottawa said
to Hydro-Québec and the Quebec government that, due to (legitimate)environmental concerns around damming rivers, and (legitimate)concerns about Indigenous
rights of the region’s Cree and Inuit
populations, Ottawa was going to deny Quebec the ability to build
the James Bay project. That alone would have been more than enough
to have pushed Quebec out of Canada.”

If one were to look back to review the biggest political mistakes in Canadian history, the National Energy Program (NEP) imposed in 1980 would rank pretty high on any list. Not only was it disastrous economically for the West – it was disastrous in terms of national unity.

It cemented what had been an already growing distrust of Ottawa, Montreal and Toronto by many in the West. It took the then-government five years, and only after great harm, to realize just how much of a mistake it was before it was dismantled.

Yet here we are, a generation later, and the son of the man behind NEP1 has succeeded in creating NEP2. The reaction in the West is at least as bad as it was the first time. The big question is whether it will take five years for this government to realize its mistake, or whether it might fix the mess sooner. Because fix it, it can – and most certainly should.

The next mining boom? Rare earths and the rise of Australia’s ‘other’ minerals – by Nick Toscano (Sydney Morning Herald – December 13, 2019)

December 13, 2019

https://www.smh.com.au/

Lithium, cobalt, titanium, rare earths – expect to hear more about them as we transition to green technologies. But what are they, actually? And what are they for?

Coal and iron ore are the heavy hitters of minerals in Australia. They’re our two top mining commodities by far, together accounting for 30 per cent of national exports.

But a handful of other minerals have become rather fashionable in recent times. They account for a small fraction of our export earnings and it’s mostly small operators that dig them out of the ground, with just a couple of big names in the mix. Yet they are rapidly becoming more important and edging their way into common parlance as result.

The sci-fi-sounding rare earths is one. Titanium is another. “He’s a man of titanium,” US President Donald Trump declared of our Prime Minister Scott Morrison this year, adding a zeitgeisty, if incomplete, fast fact: “You know, titanium’s much tougher than steel.”

CEO says Barrick has plenty of financial ‘firepower’ for deals – by Danielle Bochove (BNN/Bloomberg News – December 12, 2019)

December 13, 2019

https://www.bnnbloomberg.ca/

Barrick Gold Corp.’s chief says the gold miner has the financial heft it needs to support its loftiest ambitions — and some day those might include a merger with Freeport-McMoRan Inc.

“Barrick, by end of next year, or during next year, will be net debt zero,” Chief Executive Officer Mark Bristow said Thursday in a phone interview. “We’ve definitely got the firepower to build a mine or to support a transaction. We don’t need any external support, for any of our ambitions, as we stand today.”

The world’s second-largest gold miner has been generating more cash flow, with higher bullion prices, even as it has sold assets. By the end of this year net debt will be under US$2 billion, Bristow said. “We’re going to settle all the near-term debt, and we’re left with debt that’s only due from 2023 onwards.”

China has big stake in Bougainville independence – by Alan Boyd (Asia Times – December 12, 2019)

December 13, 2019

https://www.asiatimes.com/

Papua New Guinea (PNG) is likely to take a hard line on complete independence for Bougainville, despite the breakaway island province’s recent overwhelming vote to establish its own nation.

How the situation is handled will have major implications for regional stability, particularly as China aims to pull Bougainville as a new independent nation into its Belt and Road Initiative (BRI).

PNG Prime Minister James Marape has accepted the referendum result, announced on Wednesday, but committed his government only to developing “a road map that leads to a lasting peace settlement” in consultation with Bougainville authorities.

Albemarle CEO says long-term lithium demand remains ‘robust’ (Reuters U.S. – December 12, 2019)

December 13, 2019

https://www.reuters.com/

(Reuters) – Albemarle Corp, the world’s largest lithium producer, expects robust long-term demand for the electric vehicle battery mineral despite troubles in the existing market resulting from oversupply, Chief Executive Luke Kissam said on Thursday.

The outlook comes as shareholder anxiety about Albemarle and its peers has escalated in recent months, with the industry having produced far more of the white metal than EV makers currently need.

Wall Street analysts have downgraded Albemarle and dinged Kissam’s management as a result, with JPMorgan analysts going so far as to say the company is “overvalued.” Albemarle’s shares are down 16 percent since January.

Gold exploration trends: drilling up, Canada leads – September 2019 – by Vladimir Basov (Mining.com – December 11, 2019)

December 13, 2019

https://www.mining.com/

Mining Intelligence data indicates that after a bleak month of August, exploration activity in the gold sector jumped in September and hit the second highest bar since the beginning of 2019, and both the number of drilled projects and the number of drillholes reported in September, were up in all major regions.

A trend towards exploration of advanced projects, rather than greenfield opportunities, was reversed in September with companies willing to take more early-stage exploration risks.

There was a noticeable improvement in overall drill intersection grades, with reported gold intersections with grades greater than 2 g/t have risen from 23% of their total count in August to 40% in September 2019.

OPINION: Small modular reactors help us take a giant leap in the fight against climate change – by John Gorman (Globe and Mail – December 13, 2019)

December 13, 2019

https://www.theglobeandmail.com/

John Gorman is the president and chief executive officer of the Canadian Nuclear Association.

To many Canadians, it may not seem like a big deal that the three provinces that have nuclear sectors – Ontario, New Brunswick and Saskatchewan – signed an agreement to develop small modular reactors (SMRs). But this milestone represents a giant leap forward for Canadian industry and the fight against climate change.

I’m new to the nuclear industry, but I’ve been working in the energy sector for 20 years. I’ve seen new technologies revolutionize how we produce and manage electricity. The development and deployment of SMRs has the potential to be even more transformative than the introduction of wind and solar power.

Why am I and others in the energy sector so excited about SMRs? The answer is in their name. First, they are small. Large reactors are powerful: They generate clean and inexpensive electricity for decades. But they take years to build, they are suitable only for large demand and they can’t be moved. SMRs, on the other hand, are like solar power in that they can be scaled to suit local needs.

NEWS RELEASE: North American Palladium and Impala Platinum Announce Completion of Arrangement and Creation of Impala Canada

December 13, 2019

TORONTO, Dec. 13, 2019 (GLOBE NEWSWIRE) — North American Palladium Ltd. (“NAP” or the “Company”) (TSX:PDL) (OTC PINK:PALDF) is pleased to announce the successful completion of its previously announced plan of arrangement under the Canada Business Corporations Act (the “Arrangement”) with Impala Platinum Holdings Limited (“Implats”). Pursuant to the Arrangement, Implats has acquired 100% of the outstanding common shares of the Company for a total cash consideration of approximately C$1.0 billion.

Upon completion of the Arrangement, NAP became a wholly-owned subsidiary of Implats. With the acquisition of NAP, Implats has strengthened its competitive position by adding the Lac des Iles Mine to its asset portfolio. The low-cost Lac des Iles Mine immediately boosts Implats’ value and strengthens cash flow to advance its journey toward delivering sustainable shareholder returns. It also diversifies the group’s production base with a palladium-rich operation in an established, low-risk mining jurisdiction. Going forward, NAP will operate in Canada under the name Impala Canada Ltd. (“Impala Canada”).

“Impala Canada will accelerate our progress against a number of key strategic imperatives,” stated Nico Muller, CEO and Executive Director of Implats. “The acquisition is an important development in the evolution of the Implats Group into a sustainable PGM producer.