Republic of Mining

A photo of a dead fisherman left many questions for a Swiss-Russian mine in Guatemala – by Marion Guégan and Cécile Schilis-Gallego (Toronto Star – June 22, 2019)

June 24, 2019

https://www.thestar.com/

A group of fishermen from an Indigenous community in Guatemala demanded to know more about the environmental impact of a ferronickel mine established on their ancestral land. One of them was killed, and a local reporter was criminalized for covering the story.

Forbidden Stories, an international consortium of 40 journalists publishing in 30 media organizations around the world, joined forces to continue the reporter’s work. This is part of the “Green Blood” series, a project pursuing stories of journalists who have been threatened, jailed or killed while investigating environmental issues.

If it were not for a journalist taking pictures that day, some might claim that it is unclear how Carlos Maaz’s last moments unfolded. There was a cloud of tear gas, the chaos of an improvised protest, the echo of bullets and rocks flying through the crowd.

Acacia Mining says Barrick offer undervalues the company – by Noor Zainab Hussain and Nichola Saminather (Reuters U.S. – June 24, 2019)

June 24, 2019

https://www.reuters.com/

(Reuters) – Acacia Mining on Monday strongly disagreed with majority shareholder Barrick Gold Corp’s valuation of the company, saying Barrick’s proposal undervalued its life of mine plans and appears to have ignored the value of its exploration and development assets.

However a fair value buyout offer from the world’s No. 2 gold miner would be attractive, it added.

Barrick’s proposal to take full control of its African unit to resolve a long-standing tax dispute with Tanzania has drawn the ire of Acacia’s minority shareholders, who may have the ultimate vote on a deal.

Opinion: Russia-Africa Economic Partnership Under The Spotlight – by Kester Kenn Klomegah (Eurasia Review – June 24, 2019)

June 24, 2019

Eurasia Review

Squeezed between European and American sanctions, Russia has stepped up efforts to elevate its existing relationship, mostly focusing on trade, investment and economic cooperation with several African countries, to include areas spanning the financial sector, energy, the mining industry, railway infrastructure, digital technologies, cybersecurity, healthcare, education, and food security.

The latest additional step taken in propelling partnership efforts was an open Economic Conference held within the Afreximbank Annual Meetings (AAM2019) from June 20-21 in Moscow.

Afreximbank, the African Export-Import Bank, is a supranational financial institution bringing together 51 African countries. The bank aims to expand and incentivize trade between African countries and others outside the continent. Russia became one of the bank’s shareholders in 2017.

OPINION: Enormous lithium waste dump plan shows how shamefully backward we are – by Emma Young (Sydney Morning Herald – June 24, 2019)

June 24, 2019

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

We are all – well, all of us who are privileged enough – existing on a spectrum somewhere between “concerned” and “downright panicking” about human impact on the environment.

We look forward to the day our economy transitions to 100 per cent renewable energy, the sun and wind power our homes and lithium batteries store this energy to be used when the wind is not blowing or the sun is not shining. But here’s the rub: the lithium used to make these batteries must be torn from underground, just like oil, gas and coal.

Western Australia holds some of the world’s richest known lithium deposits and now has an emerging industry to process that lithium here, not just ship it to China as previously done. It’s part of a plan to make us more than just the world’s quarry; a bigger player in an industry promising big money, and bring jobs and industry to the South West.

The Winners and Losers From Surging Iron Ore Prices – by Michael Msika (Bloomberg/Yahoo Finance – June 21, 2019)

June 21, 2019

https://finance.yahoo.com/

(Bloomberg) — In the world of metals and mining, sometimes it’s better to sell the raw product rather than the finished one.

This seems to be a lesson for investors who chose to hold shares in ArcelorMittal rather than Rio Tinto Group this year. Despite nagging trade tensions and fears about global growth, Rio is up 30% in 2019, while the world’s biggest steelmaker has dropped 16%.

Global diversified miners have rewarded investors with record payouts and benefited from soaring iron-ore prices due to the supply concerns that followed Vale SA’s dam disaster in January. At the same time, Chinese mills have continued to set new production records, consuming more of the steelmaking ingredient.

EDITORIAL: Road to resources a northern priority (Yellowknifer – June 20, 2019)

June 21, 2019

https://nnsl.com/yellowknifer/

Diamond mines are the bloodstream for the NWT and Yellowknife, a source of economic vitality in the wake of the gold rush that birthed this city in the first place.

For most of the community’s history, the main reason people have come here has been to make a living off the rocks. The Earth’s many valuable ores have supported abundant mining jobs for generations.

And one miner’s job generates many others in this thriving town: schoolteachers, shopkeepers, doctors and nurses. But the mines, and the city and the jobs, are in trouble.

China National Gold Studies Bid for Canadian Miner Iamgold – by Dinesh Nair and Scott Deveau (Bloomberg/Yahoo Finance – June 20, 2019)

June 21, 2019

https://finance.yahoo.com/

(Bloomberg) — China National Gold Group Corp., the nation’s second-biggest miner of the metal, is studying a bid for a stake in Canada’s Iamgold Corp., people familiar with the matter said. Iamgold shares jumped the most in more than four years.

The state-owned gold miner is working with financial advisers on the potential offer, the people said, asking not to be identified as the information is private. Iamgold is exploring a possible sale of all or part of the company and has spoken to several potential buyers, Bloomberg News reported last month.

The Toronto-based firm’s decision to explore a sale follows several sizable mergers in the industry, including Newmont Mining Corp.’s acquisition of Goldcorp Inc. and Barrick Gold Corp.’s deal for Randgold Resources Ltd.

[Falconbridge] ‘I thought the smelter had blown up’ – by Harold Carmichael (Sudbury Star – June 21, 2019)

June 21, 2019

https://www.thesudburystar.com/

Electrician Gary Hrytsak was taking a brief nap during a coffee break at the Falconbridge smelter complex about 10:05 a.m. June 20, 1984, when he got thrown off the bench he was on.

“It was an eerie feeling,” recalled the now-retired Hrytsak during his speech at the 35th Workers’ Memorial Day ceremonies at the Caruso Club on Thursday. “You could feel things shaking under your feet … I thought the smelter had blown up.”

Hrytsak, who went on to do compensation, health and welfare work for his union (Mine Mill and Smelter Workers Local 598), said he put on his respirator, went to the electrical shop and telephoned his foreman, only to be told to stay where he was.

Trump Weighs Limits on Uranium Imports After Commerce Cites Security Risk – by Ari Natter and Jenny Leonard (Bloomberg/Yahoo Finance – June 20, 2019)

June 21, 2019

https://finance.yahoo.com/

(Bloomberg) — The U.S. Commerce Department has recommended the White House take steps to protect the domestic production of uranium after finding the nation’s reliance on imports was a national security risk, said three people briefed on the matter.

Among the trade remedies recommended is to require nuclear power plants to purchase a minimum of 5% of the radioactive fuel from U.S. mines, said the people, who requested anonymity to discuss non-public deliberations. Two of the people said an option under consideration would see the quota escalate by 5 percentage points a year.

A decision to impose the quotas would be a boon to the two small mining companies that petitioned the Commerce Department to take action, Energy Fuels Inc. and Ur-Energy Inc. The move would increase costs for nuclear reactor operators that are already struggling in the face of competition from cheaper sources of power generated by natural gas and renewables.

Controversial bills C-69 and C-48 to become law, one day after Senate enforces Arctic offshore oil ban – by Jesse Snyder (National Post – June 21, 2019)

June 21, 2019

https://nationalpost.com/

OTTAWA — The Senate passed into law two controversial natural resource bills Thursday evening, just one day after it quietly passed a third bill that reinforced a ban on offshore oil drilling in the Canadian Arctic, quashing any future oil and gas development in the region.

Bill C-48, which would legally enforce a moratorium on oil tankers in northern B.C., is now set to receive royal assent after it was accepted at third reading in the Senate late Thursday.

Bill C-69, which would overhaul the environmental review process for major projects, also passed a third reading. Their passage enshrines the bills in Canadian law, ending more than a year of fierce opposition from the natural resources sector and some provinces. “This phase of the battle is over,” Independent Sen. Doug Black, who was opposed to C-69, said in a final speech before the final vote on the bill.

UPDATE 2-Zambian court rejects Vedanta bid to join liquidation case – by Chris Mfula (Reuters U.S. – June 20, 2019)

June 21, 2019

https://uk.reuters.com/

LUSAKA, June 20 (Reuters) – Vedanta Resources said it would take urgent steps to protect its Zambian assets and pursue international arbitration if necessary after a Lusaka court on Thursday rejected its request to be included in liquidation proceedings.

A Lusaka judge on Thursday ruled Vedanta Resources could not take part in proceedings to wind up its Konkola Copper Mines (KCM) business in Zambia, but granted Vedanta leave to appeal the ruling. The company said it would consider whether to do so.

The case has intensified concerns among international miners about resource nationalism in Africa. Zambian firm ZCCM-IH holds around 20 percent of KCM, while Vedanta Resources, part-owner of the Mumbai-listed Vedanta group of companies, holds a majority stake.

[Agnico Eagle Mines Ltd.] Mining company marks Nunavut opening with $1-million donation (Nunatsiaq News – June 20, 2019)

June 21, 2019

https://nunatsiaq.com/

Agnico Eagle Mines Ltd. celebrated the launch of its new Nunavut gold mine with a community feast and the gift of $1 million to two non-profit organizations.

The company’s Meliadine gold mine, located about 25 kilometres north of Rankin Inlet, started commercial production last month.

To mark the occasion, Agnico Eagle hosted an event at Rankin Inlet’s community hall on Wednesday, June 19, enticing residents with hot air balloon rides and a chance to hold a bar of gold.

Gold Achieves Liftoff as Prices Rocket Toward $1,400 an Ounce – by Elena Mazneva and Ranjeetha Pakiam (Bloomberg News – June 20, 2019)

June 21, 2019

https://www.bloomberg.com/

Until this month, gold held claim to the title of being one of the most boring asset classes. Prices barely budged and popularity was fading.

Now that’s all changed. Over the past few weeks, a clear bull case has started to emerge. A key resistance level has broken. Investors are pouring money into exchange-traded funds. The dollar is weakening and the Federal Reserve seems to be charting a path to cut interest rates. China is on a buying spree to stock up reserves.

“It has been a long wait,” said Mark O’Byrne, research director at GoldCore Ltd. “Gold has finally broken out, we nearly touched $1,400.”

Gold futures for August delivery rose as much as 3.6% Thursday to the highest for a most-active contract since September 2013, and traded at $1,393.90 an ounce at 12:18 p.m. on the Comex in New York.

Baffinland’s expanded shipping proposal raises concerns at Iqaluit meeting – by Jane George (Nunatsiaq News – June 19, 2019)

June 21, 2019

https://nunatsiaq.com/

To help protect the area’s fish, birds, marine mammals and people, Baffinland Iron Mines Corp. should meet a “gold standard” when shipping from its north Baffin iron mine, delegates said during the second day of the Nunavut Impact Review Board’s three-day technical meeting on the company’s $900-million proposal to expand its Mary River mine.

After sessions looking at the use of Inuit Qaujimajatuqangit and cumulative effects assessments on Monday, attention on Tuesday turned largely to ice-breaking and shipping.

Baffinland plans to ship out 12 million tonnes of ore annually, increasing that amount later to 30 million tonnes. Several of the Inuit representatives around the table in Iqaluit’s Cadet Hall told how Baffinland’s shipping is already having an impact.

Ignored by Big Banks, Smaller Gold Miners Are Paying More to Expand – by Justina Vasquez (Bloomberg News – June 20, 2019)

June 21, 2019

https://www.bloomberg.com/

The cost of money is rising for small and mid-sized gold miners. Newmont Goldcorp Corp. and Barrick Gold Corp., the biggest producers, have grown even bigger by buying up peers, shaping themselves as strong candidates for commercial bank lending.

Meanwhile, smaller companies struggling to meet deadlines and budgets on new projects are increasingly forced to turn to private equity to expand.

In some ways that’s good. Private financing often offers smaller miners more insight on projects than a commercial bank might. At the same time, private capital is harder to land and higher priced, with an average weighted cost of roughly 15%-20% compared with 5%-6% for the majors, according to Sprott Inc., a precious metals-focused money manager.