Republic of Mining

[Trevali Mining] CEO bullish on buoying miner as zinc sinks – by Nelson Bennett (Business In Vancouver – September 18, 2019)

September 18, 2019

The stock market has not been kind of late to Trevali Mining Corp. (TSX:TV). The Vancouver-based zinc miner has doubled in size since acquiring two zinc mines from Glencore Plc in 2017, bumping it to mid-tier miner status, with a global head count of about 2,000.

It now has four operating zinc mines – one in New Brunswick, one in Peru and two in Africa (Namibia and Burkina Faso). Normally, that kind of production growth would be a good reason to hold onto a mining stock. But the company’s share price has recently fallen to below $0.20 from $1.68 at the end of January 2018.

Trevali is not the only zinc miner to experience a stock market pummelling. Glencore PLC (LON:GLEN), one of the world’s largest zinc producers, has suffered a 45% decline in share value since January 2018.

Sudbury: Federal Green Party pledges investment in sustainable mining (CBC News Sudbury – September 18, 2019)

September 18, 2019

https://www.cbc.ca/news/canada/sudbury/

Platform includes a promise for $40 million for the proposed Sudbury mining innovation cluster

The leader of the federal Green Party of Canada is clarifying some misinformation about the party’s stance on mining. In the party’s platform, there is a line that states that “no new pipelines, or coal, oil or gas drilling or mining, including offshore wells, will be approved.”

The platform also states that the party plans to “support the transition of the mining sector to an innovation hub for greener technologies.”

It also pledges $40 million for the proposed Sudbury-based mining innovation cluster. Some have questioned what the promises mean for the mining sector.

Inquiry into foreign funding of anti-Alberta energy campaigns could shake up enviro charities – by Terence Corcoran (Financial Post – September 18, 2019)

September 18, 2019

https://business.financialpost.com/

In a drive-by take-down editorial this past weekend, the Globe and Mail blasted Alberta’s public inquiry into foreign funding of anti-Alberta energy campaigns. The editorial had few facts on hand to support its claims, but it let loose with a series of cheap shots, glib commentary and a conclusion that fell back on an ancient tribal chant: “For Alberta to create a public inquiry to go after critics is a McCarthyesque misuse of power.”

Ah, McCarthyism, the old ideological cushion of the lazy lefty — although most Canadians under the age of 50 would have to Google it.

Alberta’s inquiry into the foreign funding of Canada’s green anti-oil activist groups is headed by Steve Allan, by all accounts a solid and objective forensic accountant who is as far from being Joe McCarthy as Mr. Rogers is from being Donald Trump.

Sirius Minerals shares crash after miner pulls $500m bond sale – by Neil Hume and Chris Tighe (Financial Times – September 17, 2019)

September 18, 2019

https://www.ft.com/

1,200 jobs at risk after UK government refuses to back $5bn project in Yorkshire

A $5bn project to build a huge potash mine under the North York Moors was plunged into fresh doubt after developer Sirius Minerals was forced to pull a crucial $500m bond issue and admit it had failed to secure government backing.

The company, which lost more than half its market value on Tuesday, now has six months to put in place fresh funding, otherwise it will run out of money and work on the UK’s biggest mining project in a generation will come to a halt, putting 1,200 jobs at risk.

Chief executive Chris Fraser said it was not possible to issue the junk bond — which was required to unlock a $2.5bn financing package for the mine — because of “ongoing poor bond market conditions”. Sirius’ shares tumbled by 60 per cent to 4p.

Michigan, Wisconsin Could Face Mining Disaster – by Al Gedicks (Urban Milwaukee – September 18, 2019)

September 18, 2019

Home

Regulators allowing open pit mine near Lake Michigan that could release catastrophic amount of toxic waste.

The willingness of top Michigan regulators to ignore their own scientific staff and approve a wetland permit for a controversial open pit mine next to the Menominee River on the Michigan-Wisconsin border has been reported by Urban Milwaukee, but is only the beginning of a dangerous decision-making process. The proposed Back Forty metallic sulfide mine is owned by Aquila Resources, a Canadian exploration company that has no experience with mining.

Despite steadily increasing scientific evidence of the danger of a tailings dam failure next to the Menominee River and the potential catastrophic release of toxic mine waste into Lake Michigan, the Michigan Department of Environment, Great Lakes and Energy (EGLE) appears ready to approve the dam’s design.

That design is associated with the January 2019 Brazilian tailings dam disaster that killed at least 250 people in Brazil’s deadliest-ever mining accident. Brazil has already banned this design from further use and ordered the decommissioning of 88 existing dams employing this design.

Ring of Fire ‘absolutely critical’ to his administration, premier says – by Jennifer Hamilton-McCharles (North Bay Nugget – September 18, 2019)

September 18, 2019

https://www.nugget.ca/

The development of the Ring of Fire remains a top priority for the Conservative government, said Premier Doug Ford. Ford was in Verner Tuesday attending the opening ceremonies at the International Plowing Match when he addressed questions from the media relating to everything from broadband service for rural Northern communities and education to autism and the Ring of Fire.

“The Ring of Fire is absolutely critical for our administration,” Ford said. “You will see me on that bulldozer, it’s one of our highest priorities for the government and the province.”

When asked if Ontario Northland will play an integral part in that development, Ford referred the question to Minister of Energy, Mines, Northern Development and Indigenous Affairs Greg Rickford.

Abandoned mine cleanup federal, provincial responsibility: Cook-Searson – by Alex MacPherson (Saskatoon StarPhoenix – September 18, 2019)

September 18, 2019

https://thestarphoenix.com/

Liberal candidate Tammy Cook-Searson says both levels of government should help clean up the abandoned Gunnar mine.

The Liberal candidate in Saskatchewan’s vast northern riding says both the federal and provincial governments should be responsible for cleaning up the abandoned Gunnar uranium mine and other, similar sites in the region.

That aligns with the view of many Saskatchewan politicians, but breaks with the federal Liberals’ position that the province should put up virtually all of the cash for the massively over-budget project, which is currently estimated to cost $280 million.

“I think that both levels of government need to sit down and figure out what the fair share is. Negotiate it,” Tammy Cook-Searson said of the largest environmental remediation project in Saskatchewan history, which was originally expected to cost just $24.6 million.

Canada primed for rare earth revival – by Sarah Treleaven (CIM Magazine – September 16, 2019)

September 18, 2019

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

As China threatens to halt exports of vital rare earth metals, some Canadian companies believe that their time has come

As the U.S.-China trade war heats up, with U.S. president Donald Trump and Chinese president Xi Jinping placing tariffs on an increasing amount of goods, even while occasionally offering a more conciliatory appeal for new talks, a small but cautiously optimistic group of miners are wondering if this impasse might finally herald their time in the spotlight.

The focus of that spotlight is rare earths, a group of elements that are increasingly in demand because they make up crucial components of cell phones, electric vehicles, rechargeable batteries and medical devices, as well as many other industrial and military applications. The manufacturing of permanent magnets represents the single most important end use for rare earths, accounting for almost a quarter of total consumption.

Major reserves can be found in China, Australia, Brazil, Russia and Malaysia, though China currently produces close to 90 per cent of the global supply. (The only other meaningful producer is the Lynas Corporation in Australia.)

BHP boss’ pay cut by almost 25% after worker’s death, runaway train – by Cecilia Jamasmie (Mining.com – September 18, 2019)

September 18, 2019

https://www.mining.com/

BHP’s chief executive, Andrew Mackenzie, saw his annual pay shrink by almost a quarter after an unexplained death at one of the company’s Queensland mines and a runaway iron ore train cost him a portion of his short-term bonus.

Mackenzie, 62, had his short-term bonus reduced by more than $1 million from 2018 to $1.3 million. His base salary was kept at $1.7 million, taking his total earnings, including other benefits, to $3.5 million, from $4.6 million in 2018.

According to BHP’s 2019 annual report, the death of a 49-year-old worker at its Saraji coal mine on New Year’s Eve last year, the cause of which it was unable to determine, was the main reason for the pay-cut. It was the first time in more than 15 years that the company had failed to pinpoint the cause of a fatal accident, BHP said.

‘Momentous day’ as Yukon’s newest mine pours 1st gold bar (CBC News North – September 18, 2019)

September 18, 2019

https://www.cbc.ca/news/canada/north/

Yukon’s newest mine marked a milestone on Tuesday, as it poured its first gold bar — 1,001 ounces in size, and worth about $2 million. “A momentous day,” said Mark Ayranto, chief operating officer of Victoria Gold, which owns the Eagle mine near Mayo, Yukon.

Ayranto was in Whitehorse on Tuesday, in a roomful of people watching a live video feed from the mine site. On screen were two people decked head-to-toe in protective silver suits, ready to tip the molten gold into the mould.

Unrecognizable in one of those suits was Yukon Premier Sandy Silver. The $500-million mine will be the largest in Yukon’s history. It’s expected to be a major contributor to the territory’s economy.

Australian lithium recovery seen by mid-2020 as EV production revs up – by Melanie Burton (Reuters U.S. – September 17, 2019)

September 18, 2019

https://www.reuters.com/

MELBOURNE (Reuters) – Strong demand from the electric-vehicle sector alongside supply cuts should help Australian lithium miners recover toward the middle of next year, earlier than expected, industry executives said on Wednesday.

Australian producers of spodumene, a type of concentrated lithium ore that accounts for about half of global lithium supply, have suffered this year after a flood of production sent prices tumbling by more than 20%. Recently, miners said they do not expect a recovery until the end of this year or early 2020.

BMI Managing Director Simon Moores suggested that the wait could be longer, but still earlier than market consensus of 2021. “There are two factors. One is the build-up of the demand picture downstream.

New geological survey maps understudied part of N.W.T. – by Laura Busch (CBC News North – September 18, 2019)

September 18, 2019

https://www.cbc.ca/news/canada/north/

Mining advocates are applauding the N.W.T. Geological Survey for its recent work mapping an under-explored area of the territory. Tom Hoefer, the executive director of the NWT & Nunavut Chamber of Mines, says the information could spur mineral exploration and help the N.W.T.’s slumping mining industry.

“The [economic] outlook in the future isn’t that great, and the reason why is we haven’t found enough new mines to offset the mine closures that are going to be coming,” he said. “And the reason for that is we’ve had flagging, or really low exploration investment for the last 12 years now.”

The N.W.T. Geological Survey released new data on Monday of a large swath of the Slave Geological Province, including an area known as the Point Lake greenstone belt. Point Lake is located about 300 kilometres north of Yellowknife, near the Nunavut border.

Gold may be soaring, but mining execs are still eating potato salad over oysters at industry conference – by Vinicy Chan and Millie Munshi (Bloomberg/Financial Post – September 18, 2019)

September 18, 2019

https://business.financialpost.com/

Bullion may be trading near a six-year high, but gold-mining executives keen to show they’re conscientious on costs were munching on potato salad instead of oysters at this week’s industry gathering in Denver.

As the chief executive officer of Agnico Eagle Mines Ltd., Sean Boyd, put it: “A general theme of this conference has been the need to maintain discipline.”

That sentiment was echoed in presentations, interviews and the general coffee-time chatter at the gold industry’s largest U.S. gathering of the year. There was little buzz when it came to deals, and most mining executives stressed they were making business decisions based on a gold price of US$1,200 an ounce, even as the metal traded above US$1,500.

Exclusive: India to invite bids from global coal miners before end of 2019 – by Sudarshan Varadhan (Reuters U.S. – September 18, 2019)

September 18, 2019

https://www.reuters.com/

NEW DELHI (Reuters) – India plans to invite bids from global firms for the first time for coal mining blocks before end-2019, sources familiar with the matter said, a move that would end Coal India Ltd’s near-monopoly for the fuel as the nation tries to cut imports.

Coal is among the top five commodities imported by India, one of the world’s largest consumers of the fuel. Coal imports are surging after the government failed to open the industry to competition, despite having passed a liberalization policy 19 months ago.

The coal block auctions are intended to attract global miners such as Glencore PLC (GLEN.L), BHP Group (BHP.AX), Anglo American PLC (AAL.L) and Peabody Energy Corp (BTU.N).

‘They burned everything’: Guatemalan women press Hudbay on human rights claims in closely watched case – by Gabriel Friedman (Financial Post – September 18, 2019)

September 18, 2019

https://business.financialpost.com/

Two indigenous Guatemalan women stood quietly in front of a Toronto courthouse on Tuesday morning, surrounded by a scrum that included a filmmaking crew, lawyers, media and a gaggle of other people.

On a crowded city street during rush hour, the women drew little notice from passersby but their case is being closely followed by the mining sector and beyond.

Both women, Irma Yolanda Choc Cac and Angelica Choc, had travelled from a remote part of eastern Guatemala, to continue pressing legal claims that Hudbay Minerals Inc., one of Canada’s oldest mining companies, bears liability for rape, violence and other human rights abuses that took place more than a decade ago when their village was razed to make way for the Fenix nickel mine.