Republic of Mining

Diamond crisis deepens as De Beers reports plunging sales – by Thomas Biesheuvel (Bloomberg News – October 3, 2019)

October 3, 2019

https://www.bloomberg.com/

The latest sales data from De Beers reinforces why this is one of the worst years for the diamond industry in a long time.

The Anglo American Plc subsidiary reported sales on Thursday that showed demand for rough diamonds is continuing to plunge as polishers and traders refuse to buy stones when they can’t make a profit.

The mining company holds 10 sales events each year in Botswana, where its chosen buyers — known in the industry as sightholders — are given a box containing plastic bags filled with diamonds. In the past three sales, De Beers made less than $300 million, which is unprecedented in data going back to 2016.

Column: Copper trapped between faltering supply and weak demand – by Andy Home (Reuters U.K. – October 2, 2019)

October 3, 2019

https://uk.reuters.com/

LONDON (Reuters) – It’s turning out to be a bad year for copper supply. Both mined and refined production fell in the first half of the year, according to the International Copper Study Group (ICSG). What was always going to be a year of weak supply growth has been made worse by a stream of supply disruptions.

At other times such production woes would have been a red flag for copper bulls, who like nothing more than trading copper’s notoriously volatile supply side. This year, however, falling production is doing no more than preventing the copper price falling further.

At $5,665 per tonne London Metal Exchange (LME) three-month copper is a long way off April’s highs above $6,600 and is now down by 3% on the start of January. The problem is that copper demand is faring just as badly as supply, with manufacturing activity contracting just about everywhere.

Northern zinc-rich projects get boost – by Rose Ragsdale (North of 60 Mining News – October 1, 2019)

October 2, 2019

https://www.miningnewsnorth.com/

As the worldwide deficit in zinc production grows, several zinc-lead mining projects across northern Canada await construction of access arteries needed to deliver their ore to market. The projects are among the world’s most attractive and represent a base metals treasure trove coveted by would-be developers and end users alike.

Recent funding from the Canadian government and other public and private sources could unlock the floodgates to critical infrastructure development needed to spur base metals mining in Northwest Territories and Nunavut.

In mid-August, the Government of Canada, two territorial governments and the Kitikmeot Inuit Association agreed to commit more than C$60 million to the Slave Corridor Project, an initiative aimed at kickstarting development in the mineral-rich and underdeveloped Slave Geological Province, with construction of new roads and a deep-water port.

Racing toward innovation: Greg Brouwer talks about Teck’s RACE21, the multi-pronged approach to transform the company through automation and digitalization – by Ashley Joseph (CIM Magazine – September 23, 2019)

October 2, 2019

https://magazine.cim.org/en/

Since December 2018, Greg Brouwer has had a mandate to bring the country’s largest diversified resources company up to speed on mining innovation, and ultimately, propel it into the future. As Teck’s new vice-president of technology and innovation, Brouwer’s singular focus over the past half-year has been on modernizing, automating and strengthening the company’s technological foundation to improve systems, safety standards and output across the board.

A strong background in operations and business – Brouwer holds MBAs from Cornell and Queens, plus a graduate diploma in business administration from Simon Fraser – has served to ground his efforts at Teck, where he has worn a number of hats since joining in 1998.

Today, his excitement is directed at one of the company’s most ambitious projects: RACE21, a multi-pronged approach to transform the company by way of the adoption of various technological innovations.

OPINION: The Ring of Fire bulldozer is here. Will it work? – by Charles Cirtwill (Northern Ontario Business – October 2, 2019)

October 2, 2019

https://www.northernontariobusiness.com/

It is possible, after all, to see the Ring of Fire as the only option for a new future for many communities.

During the provincial election, then candidate (now Premier) Doug Ford famously promised to come to the Ring of Fire and drive a bulldozer if that was what was needed to get the development moving. With the abandonment of the Framework Agreement and the return to individual nation-to-nation arrangements, he has done just that.

It is clear that the province has determined, after years of effort by at least three different governments, that the way forward is in working with willing partners. In this way, key pieces of infrastructure can be put in place while negotiations continue in other parts of the region. In the end, the hope would be that the pieces fit together into a cohesive whole.

It is equally clear that at least some of the First Nations in the region share this view. This may be because of their relative need for new investment. It is possible, after all, to see the Ring of Fire as the only option for a new future for many communities.

Lithium at Two-Year Low Hobbles U.S. Bid to Loosen China’s Grip on Market – by Laura Millan Lombrana (Washington Post/Bloomberg – October 2, 2019)

October 2, 2019

https://www.washingtonpost.com/

The lowest lithium prices in over two years are hampering a handful of miners that want to challenge China’s dominance in the market. China controls most of the processing that makes the mineral usable in rechargeable batteries, leaving American vehicle makers vulnerable to supply disruptions if trade tensions escalate.

With automakers from Tesla Inc. to General Motors Co. aiming to manufacture more electric cars at home, small companies are seeking to build the first U.S. lithium mines in decades as a step toward forming a local supply chain.

However, financing mines is proving a challenge after a rush of Australian supply dragged down prices by a third from a record in mid-2018. Companies also face stricter environmental rules and regulatory hurdles in the U.S., which currently accounts for just 1.2% of global lithium production.

Republican lawmakers call for measures to spur new U.S. uranium mining – by Valerie Volcovici (Reuters U.S. – October 1, 2019)

October 2, 2019

https://www.reuters.com/

WASHINGTON (Reuters) – Republican U.S. lawmakers this week urged President Donald Trump’s administration to ease restrictions on uranium mining on federal lands, as a Cabinet-level committee prepares recommendations this month for boosting domestic nuclear fuel production.

“We strongly encourage you to make improved access to federal lands with high-grade uranium deposits a top priority,” according to the Sept. 30 letter from 27 Western state Republican senators and Congress members to Trump’s national security and economic advisers Richard O’Brien and Larry Kudlow, both co-chairs on the uranium mining working group.

“Greater access to our own resources will help put Americans to work exploring for and responsibly producing the uranium that our country needs,” wrote the lawmakers from the western states from Alaska to Utah.

Buying gems in Asia: What travelers need to know – by Ronan O’Connell (CNN Travel – August 1, 2018)

October 2, 2019

https://www.cnn.com/

(CNN) — Asia might be home to some of the world’s major gem trading hubs, but for tourists looking to buy precious stones when they travel in the region, fears of fakes and scams can be a huge deterrent. However, gemologists say there’s little to worry about if travelers are careful and heed some basic tips on how to discern real stones from the phonies.

Thailand, Hong Kong and Jaipur in India are three of Asia’s key gem trading centers, says Russell Shor, senior analyst for the Gemological Institute of America (GIA), a non-profit organization that specializes in education, research and standards in the gem trade.

Jaipur is India’s hub for the sale of gems, which are sold at kiosks, stores and street markets throughout its Old City area. While Jaipur’s gem trade focuses mostly on lower-end stones, Hong Kong is the region’s No. 1 location for expensive gems, including “million-dollar-plus jade and ruby pieces,” says Shor.

Congo mine deploys digital weapons in fight against conflict minerals – by Aaron Ross and Barbara Lewis (Reuters U.S. – October 1, 2019)

October 1, 2019

https://www.reuters.com/

RUBAYA, Democratic Republic of Congo (Reuters) – In a small shack overlooking muddy pits hewn out of eastern Congo’s rolling green hills, a government official puts a barcoded tag on a sack of ore rich in tantalum, a rare metal widely used in smartphones.

With a handheld device linked to a server in the cloud, the agent scans the barcode, uploading data including the sealed bag’s weight, when it was tagged, and by whom.

It’s the latest initiative in eastern Democratic Republic of Congo to improve systems meant to show minerals entering global supply chains come from mines that don’t use child labor or fund warlords and corrupt soldiers.

Global zinc production to rise on the back of elevated prices – by Simone Liedtke (MiningWeekly.com – October 1, 2019)

October 1, 2019

https://www.miningweekly.com/

Global mined zinc production is expected to continue ramping up over the coming years as elevated prices encourage miners to restart idled capacity and start production at key new mines, Fitch Solutions Macro Research said this week.

In its ‘Outlook for Zinc Mining’, published on Tuesday, Fitch Solutions Macro Research said that, while some capacity had been taken off line during 2015 and 2016, owing to permanent mine closures, the return of some stalled capacity and new projects in key countries would drive growth over the coming quarters.

Fitch Solutions Macro Research forecast that global zinc mine production will increase by 1.6% year-on-year to 13.2-million tonnes this year, before increasing to 15.7-million tonnes by 2028, averaging 1.9% growth a year.

Riding the gold rally: Two gold tycoons add $1.8 billion to their fortunes in 2019 – by Anna Golubova (Kitco News – September 30, 2019)

October 1, 2019

https://www.kitco.com/

(Kitco News) – One of the highlights this year is the commodities sector, as gold’s summer rally is helping boost the fortunes of billionaires with exposure to extensive holdings in mining assets. Focusing on gold specifically, the biggest winners this year were Russia’s Suleiman Kerimov and Egypt’s richest person Naguib Sawiris.

In total both increased their fortunes by $1.8 billion with Kerimov registering a $1 billion increase and Sawiris seeing an $800 million advance, according to Bloomberg Billionaires Index (BBI).

Gold in the meantime is heading for the best year in almost a decade, with prices up around 16% year-to-date. However, at the time of writing, gold prices were registering some losses with December Comex gold futures trading at $1,487.70, down 1.24% on the day.

Australia sees opportunity to boost critical minerals supply to U.S. – report (Reuters U.K. – September 30, 2019)

October 1, 2019

https://uk.reuters.com/

MELBOURNE, Oct 1 (Reuters) – Australia has a fresh opportunity to supply the United States with critical minerals after recent changes to U.S. regulation aimed at cutting its dependence on China, an Australian government report showed on Tuesday.

U.S. President Donald Trump in July signed five memoranda authorising U.S. Department of Defense funding to be directed to resources or technology “essential to the national defense” in a move aimed at shoring up domestic supplies.

That opens the door for the United States to offer project funding for rare earths, a group of 17 elements used in products ranging from lasers and military equipment to magnets found in consumer electronics, according to the report by Australia’s Trade and Investment Commission.

Sudbury inquest told: ‘I heard a big bump. It sounded like something had happened’ – by Harold Carmichael (Sudbury Star – October 1, 2019)

October 1, 2019

https://www.thesudburystar.com/

Normand Bisaillon had just started working on his dream home when he and his partner were killed in an accident five years ago at the now-shuttered Lockerby Mine, his widow told an inquest as it opened in Sudbury on Monday.

“This is a last chance to get it right,” Romeena Bisaillon told the five-member coroner’s jury at the end of her short address. “Please: let’s not waste it.” The inquest is looking at how Normand Bisaillon, 49, and Marc Methe, 34, were killed on May 6, 2014, and recommendations on how to prevent such tragedies in the future.

Greg Allaire, representing the Methe family, said Marc was an intelligent man who aimed for bigger things in his life and took on the drilling job with Taurus Drilling as a stepping-stone in his career.

A Brief History of the Nickel – by Daniel A. Gross (Smithsonian Magazine – April 28, 2016)

October 1, 2019

https://www.smithsonianmag.com/

In honor of the coin’s 150th anniversary, read up on how the nickel came to be minted

The nickel wasn’t always worth five cents. In 1865, the U.S. nickel was a three-cent coin. Before that, “nickel cents” referred to alloy pennies. It turns out that even the name “nickel” is misleading. “Actually, nickels should be called ‘coppers,’” says coin expert Q. David Bowers. Today’s so-called nickels are 75 percent copper.

Those aren’t the only surprises hidden in the history of the nickel. The story of America’s five-cent coin is, strangely enough, a war story. And 150 years since it was first minted in 1866, the modest nickel serves as a window into the symbolic and practical importance of coinage itself.

To understand how the nickel got its name, you have to go back to an era when precious metals reigned supreme. In the 1850s, coins of any real value were made of gold and silver. In the event of a financial crisis—or worse, the collapse of a government—precious metal coins could always be melted down. They had intrinsic value.

Canada’s Kinross hits pause on Russia after gold project deal – by Jeff Lewis and Polina Devitt (Reuters Africa – September 30, 2019)

October 1, 2019

https://af.reuters.com/

CALGARY/MOSCOW, Sept 30 (Reuters) – Canada’s Kinross Gold Corp is putting future deals in Russia on hold after snapping up a development project in a country hit by Western sanctions.

The Toronto-based miner in July acquired the undeveloped Chulbatkan asset from closely held N-Mining for $283 million in cash and shares.

The acquisition will add 3.9 million indicated ounces of gold to Kinross’ books, according to the company. Foreign investment in new mining projects in Russia has grown scarce due to Western sanctions levelled after the 2014 annexation by Russia of Crimea from Ukraine.