Republic of Mining

Canada will consider climate plan in Teck oil project decision: minister – by Isla Binnie (Reuters Canada – December 12, 2019)

December 13, 2019

https://ca.reuters.com/

MADRID (Reuters) – The government will take into account its plan to make Canada carbon neutral by 2050 when it considers whether to approve Teck Resources Ltd’s plan for a giant oil sands mine, the new environment minister said on Thursday.

Teck wants approval for its C$20.6 billion ($15.5 billion) Frontier project, which involves an open pit mine to eventually produce 260,000 barrels per day (bpd). The mine in northern Alberta would open in 2026 and operate until 2067. Prime Minister Justin Trudeau’s government is supposed to decide by the end of February.

Regulators recommended approving the project in July, saying economic benefits outweighed “significant adverse effects” on the environment and indigenous communities.

Here are the signs of hope Greta’s so ‘desperate’ for that show there’ll be no climate apocalypse – by Terence Corcoran (Financial Post – December 13, 2019)

December 13, 2019

https://business.financialpost.com/

The latest carbon emissions data and forecasts suggest the UN’s climate catastrophe scenarios are way off the mark

In the dying days of the two-week United Nations’ 25th Congress of the Parties (COP25) in Madrid, a meeting described as Kafkaesque in one report, Time magazine Newsmaker of the Year Greta Thunberg said she and her Extinction Rebellion cohorts are “desperate for any sign of hope.”

Well, here are two big signs of hope for today’s youth: The latest carbon emissions data and forecasts suggest the UN’s climate catastrophe scenarios are way off the mark.

Thirty years ago, when Time’s apocalyptarian editors declared Earth as Planet of the Year for 1988, they warned of the global environmental meltdown to come. Oceans will rise, deserts will grow, and human existence will be threatened. According to computer projections, claimed Time in late 1988, “the accumulation of CO2 in the atmosphere could drive up the planet’s average temperature 3 F to 9 F by the middle of the next century.”

South African mining revival threatened as power cuts take toll – by Felix Njini (MiningWeekly/Bloomberg – December 12, 2019)

December 12, 2019

http://www.miningweekly.com/

JOHANNESBURG – When South Africa’s State-owned utility announced record power cuts on Monday afternoon, Impala Platinum Holdings had two hours to hoist thousands of workers from 1 km deep shafts.

The deepening crisis at debt-ridden Eskom Holdings shut down South Africa’s key mining industry for 24 hours, hitting gold and platinum producers that had been enjoying a renaissance on the back of higher metal prices. The rolling blackouts threaten to tip South Africa’s economy into recession and hobble miners already impacted by community protests and xenophobic violence.

Johannesburg-based Implats was ordered to cut electricity usage to 55 MW from about 300 MW, forcing it to reduce power to furnaces by 90% and shutting down refrigeration and compressor plants.

Triple Flag’s scrapped $360-million IPO shows investors still not buying gold rally – by Gabriel Friedman (Financial Post – December 12, 2019)

December 12, 2019

https://business.financialpost.com/

The amount of equity raised by the mining sector has declined for several years, but broadly speaking it has also been a difficult time for IPOs

The streaming and royalty company Triple Flag Precious Metals Corp. on Wednesday cancelled its initial public offering, the clearest sign yet that financing conditions in the mining and metals sector have not caught up with rising gold prices.

The company had hoped to raise $360 million on the Toronto Stock Exchange by selling 20 million shares at $15 to $18 apiece in one of the biggest offerings in the Canadian mining sector in years, but analysts said the company likely could not hit its desired target.

Founded in 2016 by Shaun Usmar, a former Barrick Gold Corp. executive who received backing from the New York hedge fund Elliott Management Corp., Triple Flag invests in mining projects in exchange for a share of the revenue or production. Such companies generally are considered less risky than actual mining companies because their portfolio is often diversified across regions, metals, and management teams, among other factors.

As Anti-Mining Protests Escalate, Peru’s Vizcarra Sides With Mining Companies – by Matthew C. DuPée (World Politics Review – December 11, 2019)

December 12, 2019

https://www.worldpoliticsreview.com/

In mid-October, Peruvian authorities declared a 30-day state of emergency in the copper-rich province of Chumbivilcas, where anti-mining protesters had blocked a stretch of a vital highway called the Southern Runway for almost a month. The blockade, led by indigenous farmers and laborers known as comuneros, caused major disruptions to local commerce and large-scale mining efforts nearby, and nearly forced a halt in operations at Las Bambas, one of Peru’s largest copper mines.

It was just the latest in a series of anti-mining protests by comuneros in Peru this year, which have held up hundreds of millions of dollars in copper exports and forced the Peruvian government into contentious negotiations over indigenous land rights and environmental concerns.

The world’s No. 2 copper producer with reserves estimated at 83 million tons, Peru is highly dependent on copper exports, which generated $12 billion in 2017, more than a quarter of its total exports that year, according to data tabulated by the Observatory of Economic Complexity.

Exclusive: U.S. Army will fund rare earths plant for weapons development – by Ernest Scheyder (Reuters U.S. – December 11, 2019)

December 12, 2019

https://www.reuters.com/

(Reuters) – The U.S. Army plans to fund construction of rare earths processing facilities, part of an urgent push by Washington to secure domestic supply of the minerals used to make military weapons and electronics, according to a government document seen by Reuters.

The move would mark the first financial investment by the U.S. military into commercial-scale rare earths production since World War Two’s Manhattan Project built the first atomic bomb.

It comes after President Donald Trump earlier this year ordered the military to update its supply chain for the niche materials, warning that reliance on other nations for the strategic minerals could hamper U.S. defenses.

Saudi Aramco tops Crown Prince’s $2-trillion valuation goal, though skepticism persists – by MARWA RASHAD AND DAVIDE BARBUSCIA (Globe and Mail – December 12, 2019)

December 12, 2019

https://www.theglobeandmail.com/

Saudi Aramco hit the US$2-trillion target sought by de facto Saudi leader Crown Prince Mohammed bin Salman on Thursday as its shares racked up a second day of gains, despite some skepticism about the state-owned oil firm’s value.

Aramco’s initial public offering (IPO) is the centerpiece of the Saudi crown prince’s vision for diversifying the kingdom away from its oil dependence by using the US$25.6-billion raised to develop other industries.

But that is well below his 2016 plan to raise as much as US$100-billion via a blockbuster international and domestic IPO. Riyadh scaled back its ambitions after overseas investors balked at the proposed valuation and only 1.5 per cent of Saudi Arabian Oil Co (Aramco) shares were listed on the Riyadh stock exchange on Wednesday, a tiny free float for such a huge company.

OPINION: ‘Green’ energy relies on copper-nickel mining – by Jeremy Munson (Minneapolis Star Tribune – December 11, 2019)

December 12, 2019

http://www.startribune.com/

Jeremy Munson, R-Lake Crystal, is a member of the Minnesota House.

Gov. Tim Walz’s mandates on electric vehicles and his push for 100% “green” energy represent a government takeover of energy, furthering an agenda of science deniers.

Make no mistake, this is an admirable goal. However, I am a lawmaker who embraces both science and reason, and these proposals are rooted in neither. Unlike many of my colleagues on both sides of the aisle, I am not a science denier when it comes to green energy.

Last winter, I approached hundreds of green energy demonstrators in the State Capitol rotunda and spoke to a group carrying signs demanding electric vehicles mandates. I introduced myself and thanked them for supporting the PolyMet copper-nickel mine.

US Trial Sheds Little Light On Colombia’s Shady Emerald Mining Industry – by Loren Moss (Finance Columbia – December 11, 2019)

December 12, 2019

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The US court case of Horacio Triana, known as Colombia’s “emerald czar,” will focus on drug trafficking charges and is unlikely to shine a light on a complex web of links between the country’s emerald industry and a range of criminal interests.

In November, Triana pled guilty before a Florida court on charges of sending cocaine to the United States and killing witnesses scheduled to testify against him. He also promised to collaborate with judicial investigations.

In August 2017, the United States requested Triana’s extradition along with that of José Rogelio Nieto and the brothers Pedro, Omar and Gilberto Rincón. All of them were leading figures within Colombia’s lucrative emerald industry and were accused of working with paramilitary groups to traffic drugs to the United States through a network that extended into Colombia, Venezuela, Mexico, Haiti and the Dominican Republic.

Crisis Is Rocking Latin America. Peru Is an Island of Uneasy Calm. – by John Quigley (Bloomberg/Yahoo – December 12, 2019)

December 12, 2019

https://finance.yahoo.com/

(Bloomberg) — Roadblocks of mud, sticks and steel wire bar the entrance to villages lining the northern side of the Rio Tambo, a sign of revolt in the fertile valley cultivated since Inca times.

For almost a decade, the farmers of this green strip wedged between the Andes mountains and the Pacific Ocean have resisted the construction of a copper mine they say will pollute the water course and destroy their livelihoods. Now they feel betrayed by Peru’s president after his government gave final approval to Southern Copper Corp.’s Tia Maria project.

“We can’t allow it,” said councilwoman Zulema Quispe, who was navigating the barricades on the back of a motorcycle. Fields tilled for centuries will be tainted for future generations by the mine to be located just half a mile away, she said. “The president is giving priority to a multinational company and we won’t accept it.”

Canada’s new climate minister makes global debut, and faces momentous decision on oil sands – by Eric Reguly (Globe and Mail – December 12, 2019)

December 12, 2019

https://www.theglobeandmail.com/

Jonathan Wilkinson, Canada’s new Environment and Climate Change Minister, points out that he has been on the job only three weeks. Translation: Cut me some slack, please, I don’t have all the answers.

But he’ll have to learn quickly. At the end of February, he has to decide whether to approve Teck Resources Ltd.’s enormous Frontier oil sands project or refer it to the wider Liberal cabinet. Either way, it will be a damned-if-you-do, damned-if-you-don’t moment that will be instrumental in defining the federal government’s carbon-reduction trajectory and its relationship with Alberta.

If the project is approved, as Alberta Premier Jason Kenney so desperately wants, Canada’s plan to transition to a low-carbon economy, then to a “net zero” emissions economy by 2050, might go from the difficult to the virtually impossible without miracle technology or shipping fortunes overseas to buy carbon credits. Turning down the project would ignite a war with Alberta.

Deforestation, erosion exacerbate mercury spikes near Peruvian gold mining (Duke University – December 12, 2019)

December 12, 2019

https://www.sciencedaily.com/

Scientists from Duke University have developed a model that can predict the amount of mercury being released into a local ecosystem by deforestation and small-scale gold mining.

The research, which appears online on December 11 in the journal Environmental Science and Technology, could point toward ways to mitigate the worst effects of mercury poisoning in regions such as those that are already experiencing elevated mercury levels caused by gold mining.

“We’ve taken a lot of ground measurements in the Peruvian Amazon of mercury levels in the water, soil and fish,” said Heileen Hsu-Kim, professor of civil and environmental engineering at Duke University. “But many areas in the Amazon aren’t easily accessible, and the government often does not have the resources needed to test local sites.”

Vale report blames water level for Brazil mining waste dam disaster – by Christian Plumb and Luciano Costa (Reuters U.K. – December 12, 2019)

December 12, 2019

https://uk.reuters.com/

SAO PAULO (Reuters) – The deadly collapse of a Vale SA’s mining waste dam in Brazil was partially triggered by “a persistently high water level” that caused the structure to lose strength and stability, according to a report by a panel of experts appointed by the company’s lawyers.

The report, released by Vale on Thursday, said there was no warning the dam was unstable, and no seismic activity or explosions in the area were recorded before it burst in late January. The dam collapse unleashed an avalanche of mining waste on the Brazilian town of Brumadinho, killing at least 155 people.

The report examined technical factors leading to the disaster rather than issues of liability. It came less than four years after another dam collapse at a joint venture between Vale and BHP Group in the same region, an accident that experts also blamed on water weakening the solid materials composing the dam so that they behave more like a liquid – a phenomenon known as liquefaction.

Museum to serve as unifier for history of coal mining, miners – by Eddie Trizzino (Times West Virginian – December 12, 2019)

December 12, 2019

https://www.timeswv.com/

FAIRMONT – Curators of Fairmont’s coal mining museum will unveil the first phase of an expansion project this weekend along with hosting a Coal Miners Swap Meet.

Located on the third floor of the Arts and Antiques Marketplace at 205 Adams St., the coal mining museum is more than doubling in size to represent the coal history of Monongalia, Harrison, Preston, Taylor and Barbour counties alongside its current Marion County exhibit.

“We’re dedicating some space to each of the Fairmont field counties,” said Mike Rohaly, president of the Northern Appalachian Coal Mining Heritage Association. “We would like to get there, have a little bit more cohesion between our six counties.”

Chevron’s possible exit from Kitimat LNG project dents Canada’s aspirations of building LNG hub – by Geoffrey Morgan and Reuters (Financial Post – December 12, 2019)

December 12, 2019

https://business.financialpost.com/

Chevron Corp. is considering putting its entire stake in the proposed liquid natural gas project in British Columbia on the block, in a blow to Canada’s aspirations to build a robust LNG industry.

“Although Kitimat LNG is a globally competitive LNG project, the strength of Chevron Corporation’s global portfolio of investment opportunities is such that the Kitimat LNG Project will not be funded by Chevron and may be of higher value to another company,” the company said on Tuesday.

The San Ramon, California-based company said its Canadian unit will look for buyers for its 50 per cent interest in the Kitimat LNG Project, but set no timeline to conclude the process. Chevron’s other Canadian projects are not part of the sale.