Republic of Mining

A partisan divide: Uranium mining’s toxic legacy or essential national security – by Miranda Faulkner (Cronkite News/News Maven – June 26, 2019)

June 27, 2019

WASHINGTON – Tribal members, environmentalists and lawmakers told a House panel Tuesday that including uranium on a list of “critical minerals” opens the door to expedited mining that will put tribal lands and national parks at risk.

They were responding to a Trump administration announcement earlier this month that directed the government to locate uranium and expedite permits for its mining as one of dozens of minerals considered essential for the country’s economic and national security.

But witnesses told a House Natural Resources subcommittee hearing Tuesday that the administration plan does not take into consideration the public and environmental health risks that come with mining, especially uranium, which has a “toxic legacy” of polluting communities where it has been mined.

Peru native groups use new legal strategy to push back on oil, mining plans – by Maria Cervantes (Reuters U.K. – June 27, 2019)

June 27, 2019

https://uk.reuters.com/

LIMA (Reuters) – Indigenous groups in Peru are turning to the courts with a new legal strategy for keeping mining and oil projects off their land, racking up victories that could make it harder for companies to secure permits in the major minerals producer.

Native communities from the Peruvian Amazon and the Andes have filed at least eight lawsuits against the government since passage of the so-called “prior consultation” law in 2011, which gives them the right to weigh in on official decisions that could affect them, according to judicial documents.

The law, based on an international pact Peru signed in 1993, aimed to grant overdue rights to indigenous people and prevent deadly clashes over mining and energy projects.

Top 10 Gold Producing Countries – by Frank E. Holmes (Kitco.com – June 26, 2019)

June 27, 2019

https://www.kitco.com/

Gold is one of the rarest elements in the world, making up roughly 0.003 parts per million of the earth’s crust. But how much gold is the world digging up each year and what countries produce the most?

In 2018, global gold mine production was a reported 3,332 tonnes. This figure is up 2 percent from the previous year and is the largest year-over-year growth in the last four years, according to the GFMS Gold Survey 2019. The driving forces behind increase in production came out of operations in Argentina, the U.S., Russia and Mali.

Although production was up in 2018, versus a small decrease of 5 tonnes in 2017, it raises the question I’ve explored recently – have we reached peak gold? The idea is that all the easy gold has already been discovered and explorers have to dig deeper to find economically viable deposits.

About 7,000 families move out from Norilsk Industrial District since 2011 (Tass Russian News Agency – June 27, 2019)

June 27, 2019

https://tass.com/

KRASNOYARSK, June 27. /TASS/. About 7,000 families have been moved since 2011 from the Norilsk Industrial District (the Krasnoyarsk Region’s north) to regions with better climate conditions, Nornickel’s Vice President Dmitry Pristanskov said on Wednesday at presentation of the company’s report on sustainable development.

In 2011, Russia’s Ministry of Regional Development, the Krasnoyarsk Region, the city of Norilsk and the Norilsk Nickel Company (Nornickel) signed an agreement to support families, who wanted to move out from Norilsk and Dudinka (the Taimyr Municipal District’s center).

People, who have worked in the Extreme North for more than 15 years could participate in the program. The most preferred destinations have been the Krasnoyarsk, Moscow, Leningrad and Krasnodar Regions.

Indonesia regulatory changes to bring more uncertainty to coal sector – by Fransiska Nangoy (Reuters U.S. – June 26, 2019)

June 27, 2019

https://www.reuters.com/

NUSA DUA, Indonesia (Reuters) – Indonesian coal miners said upcoming regulatory changes are putting added pressure on their businesses amid depressed prices and rising competition from other energy sources.

The Indonesian government is in the process of amending coal mining rules to enforce implementation of a 2009 mineral law that require miners to convert their mining permits to a licensing system upon the expiration of their current contracts.

The issue was one of the most talked about by local miners at the Coaltrans industry conference in Bali this week.

Rare earths industry set to be shaken up by US-China trade war – by Tasneem Bulbulia (MiningWeekly.com – June 27, 2019)

June 27, 2019

https://www.miningweekly.com/

As the trade dispute between the US and China escalates, it is increasingly likely that China will use its near-monopoly in the global supply of strategic rare earths as leverage over the coming months, says Fitch Solutions Macro Research, a unit of Fitch Group.

China currently holds a near-monopoly on the global supply of rare earth metals, with over 72% of global market share.

The US is highly dependent on Chinese imports to satisfy its demand for rare earth metals, with China having supplied up to 80% of the rare earths imported by the US between 2014 and 2017.

Barrick doubles down on allegations of overvaluation by Acacia – by Niall McGee (Globe and Mail – June 27, 2019)

June 27, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. says its proposal to acquire Acacia Mining PLC is “fair,” and it’s doubling down on claims that its London-based subsidiary has overvalued some of its mines.

In a statement on Wednesday, Barrick said that “certain assumptions made by Acacia in relation to its mine plans are not appropriately risked or supportable and that adjustments should be made.”

Last week, Barrick expressed skepticism about the true value of some of Acacia’s assets, suggesting its own analysis shows that Acacia may be overestimating grade and underestimating costs at some of its mines.

A Mammoth Commitement to the Iron Range – by Lee Bloomquist (Mesabi Daily News – June 2019)

June 27, 2019

https://www.virginiamn.com/

MOUNTAIN IRON — Sit in the cab of United States Steel Corporation’s brand new electric shovel at Minntac Mine and you’ll know why it’s such a big deal.

A refrigerator. Microwave. A Pioneer sound system that will rattle the windows. Full climate control. USB ports. LED lighting. Panoramic glass in front of you and at your feet. And an operator’s chair with comfort settings that make it feel like a king’s throne. But it’s more than creature comforts that make the $20 million-plus shovel the real deal.

The 2,390,000 pound custom-painted AC-Drive P&H 2800XPC shovel is a sign of U.S. Steel’s confidence in the future of iron ore pellet production at Minntac Mine. It’s also a long-term commitment by U.S. Steel to its Minntac employees and to Iron Range communities founded on mining.

Alcoa Gets Tough With Union by Threatening to Idle Quebec Plant – by Matt Townsend (Bloomberg/Yahoo Finannce – June 27, 2019)

June 27, 2019

https://finance.yahoo.com/

(Bloomberg) — After 18 months of often contentious labor talks with the United Steelworkers union at an aluminum smelter in Quebec, Alcoa Corp. has threatened to idle the entire facility if workers don’t sign what it’s calling a “final offer.”

Aluminerie de Bécancour, a joint venture in which Alcoa controls a 75% stake and Rio Tinto Group owns the rest, made a proposal that expires on July 5. If it’s not signed, the already-curtailed production will be totally suspended, Pittsburgh-based Alcoa said Wednesday in a statement.

Union workers were locked out of the facility in January 2018, and some operations continued to be run by managers. At full capacity, the plant known as ABI could produce 413,000 metric tons of aluminum a year, but that had been cut back to about a sixth of that, according to Bloomberg Intelligence.

PRECIOUS-Gold falls over 1% as U.S. Fed tempers aggressive rate cut hopes – by Sethuraman N R (Reuters U.S. – June 26, 2019)

June 26, 2019

https://www.reuters.com/

June 26 (Reuters) – Gold prices fell more than 1% on Wednesday, retreating from a 6-year peak scaled in the previous session, on signs the U.S. Federal Reserve will not resort to aggressive interest rate cuts in July.

Spot gold was down 1.2% at $1,405.44 per ounce as of 1108 GMT, snapping a six-session winning streak that lifted it to $1,438.63 on Tuesday, the highest since May 14, 2013. U.S. gold futures fell 0.7% to $1,409.10.

Fed Chairman Jerome Powell stressed the central bank’s independence from U.S. President Donald Trump, who is pushing for rate cuts. St. Louis Fed President James Bullard, considered one of the most dovish U.S. central bankers, surprised some investors by saying a 50-basis-point cut in rates “would be overdone”.

Merger mania could return as gold hits all-time high in Canadian dollars – by Gabriel Friedman (Financial Post – June 26, 2019)

June 26, 2019

https://business.financialpost.com/

‘When things are going downhill, and you’re getting squeezed, everybody has a bunker mentality’

If the price of gold hits an all-time in the Canadian dollar, does anyone notice?

A little after midnight on Tuesday morning, intraday gold spot prices soared to $1,895.20 per ounce — higher than any previous closing price, according to Bloomberg data. Yet hours later, many Canadian gold companies, big and small, were trading down.

“People don’t look at gold in Canadian dollar terms,” said Bruce McLeod, chief executive of Vancouver-based Sabina Gold & Silver Corp., which is struggling to raise funds to build a mine in western Nunavut. “They don’t look at what’s actually happening.”

Norway wealth fund allowed to invest again in Walmart, Rio Tinto, others – by Gwladys Fouche (Reuters U.S. – June 25, 2019)

June 26, 2019

https://www.reuters.com/

OSLO (Reuters) – Norway’s $1 trillion wealth fund can invest again in miner Rio Tinto and retailer Walmart after their exclusions from the fund’s investments on ethical grounds were revoked, the board of the central bank said on Tuesday.

The fund can also resume investing in Mexican tycoon Carlos Slim’s Grupo Carso, U.S. defense company General Dynamics and fertilizer-maker Nutrien, the board added in a statement.

Reinvestments will likely take place “within an appropriately long timeframe,” said the board, without specifying a timeline. The fund is managed by a unit of the central bank.

PolyMet Mining closer than ever to getting Iron Range mine operational – by Mike Hughlett (Minneapolis Star Tribune – June 25, 2019)

June 25, 2019

http://www.startribune.com/

Despite fears over mine’s environmental effect, company is confident

HOYT LAKES, Minn. – After years of planning and contention, the derelict taconite complex in Hoyt Lakes is closer than ever to hosting Minnesota’s first copper-nickel mining operation.

Backed by global-mining giant Glencore, PolyMet Mining Corp.’s executives are courting bankers for nearly $1 billion to finance the project, hoping to start construction next year. New concerns have blown up recently over one of PolyMet’s environmental permits, though the company said it doesn’t expect the mine’s progress to be impeded.

“It’s going to happen,” said Jon Cherry, PolyMet’s CEO. “It is so rare to get a fully permitted mine at this time in the United States.”

Gold breaks through $1,400 with Fed statement the ‘last match the bonfire needed’ – by Victor Ferreira (Financial Post – June 25, 2019)

June 25, 2019

https://business.financialpost.com/

It’s taken six years for gold investors to put their mallets down, as George Milling-Stanley puts it.

Each time the price of gold poked its head above a technical level of US$1,350 an ounce, speculators would immediately take profits and slam it back down, he said. The last three times prices hovered above that level in intraday trading, they couldn’t hold it until close.

“(Investors) have effectively been playing whack-a-mole with gold,” said Milling-Stanley, head of gold strategy at State Street Global Advisors. “They didn’t do that this time because they probably were very impressed by (Jerome) Powell’s statement.”

Tiny Town Of Nucla Looks To A Future Without Mining And Sees Opportunity And Uncertainty – by Stina Sieg (Colorado Public Radio – June 24, 2019)

June 25, 2019

https://www.cpr.org/

Home to just a few hundred people, the town of Nucla, Colorado, isn’t just tiny. It’s far from just about everything. Tucked into the western edge of Montrose County, it’s 350 miles from Denver and 60 miles from the nearest stop light.

For generations, this area — known as the West End — was a hub for mining. Most famously, they dug for uranium here and the area saw a big boom thanks to the Cold War era. Later, coal arrived to support a local power plant.

“You think things are going to boom forever,” said Jane Thompson, a 62-year-old longtime local. “They’re always going to need uranium. They’re always going to need coal.”