Republic of Mining

U.S. Loosing Global Battery Arms Race that is Critically Dependent on Nickel, Cobalt and Lithium – by Simon Moores (Benchmark Mineral Intelligence – February 5, 2019)

February 6, 2019

Written Testimony of Simon Moores, Managing Director, Benchmark Mineral Intelligence
For: US Senate Committee on Energy and Natural Resources Committee
Hearing: Tuesday, February 5 2019, at 10:00a.m. Room 366, Dirksen Senate Office Building in Washington, DC.
Subject: Outlook for energy and minerals markets in the 116th Congress.

We are in the midst of a global battery arms race in which the US is presently a bystander.

Since my last testimony only 14 months ago, we have reached a new gear in this energy storage revolution which is now having a profound impact on supply chains and the raw materials that fuel it.

The advent of electric vehicles (EVs) and the emergence of battery energy storage has sparked a wave of lithium ion battery megafactories being built.

RPT-COLUMN-Vale disaster makes miners’ image problem worse – by Clyde Russell (Reuters U.S. – February 6, 2019)

February 6, 2019

https://www.reuters.com/

CAPE TOWN, Feb 6 (Reuters) – The response to the horrendous dam collapse at a mine owned by Brazil’s Vale has focused on iron ore prices and how a disaster that will likely claim more than 300 lives occurred, and what must be done to make sure this doesn’t happen again.

These are valid concerns, but the risk of focusing on the immediate issues is that the much larger problems of the mining industry are once again glossed over. Namely that miners aren’t trusted and suffer from a serious image problem.

It may seem somewhat trivial to talk about image in the face of such a human tragedy, but mining’s poor image across a range of stakeholders is the major issue for the industry.

NEWS RELEASE: [Documentary] The Shadow of Gold explores the dark side of the world’s most precious metal (January 19, 2019)

February 6, 2019

Do you know where the gold in your ring comes from?

TORONTO (January 30, 2019) – The Shadow of Gold pulls back the curtain on the world’s most coveted heavy metal. Filmed in Canada (Mount Polley, BC), the U.S., London, Dubai, China, Peru and the Democratic Republic of Congo, the feature film is an incisive global investigation of the gold trade, from raw material to market, exposing its impact on human lives, the economy and the planet.

An international Canada-France co-production by award-winning filmmakers Robert Lang (Canada), Denis Delestrac (France) and Sally Blake (France), The Shadow of Gold makes its world premiere at Toronto’s Hot Docs Ted Rogers Cinema on February 22, followed by screenings in Ottawa (February 27), Vancouver (March 11), Calgary (March 20), Montreal (March 26) and Halifax (Date TBA).

The film will make its broadcast premiere as a two-part documentary with expanded content in back-to-back episodes March 13 at 9 p.m. and 10 p.m. on TVO, and March 28 at 10 p.m. and 11 p.m. on Canal D (Canada). Additional broadcasts on Knowledge Network (BC) – date to be announced, ARTE (France, Germany), SVT (Sweden) and NRK (Norway).

Ford engages the mining sector on the road to more EVs – by Kim Cloete (MiningWeekly.com – February 5, 2019)

February 5, 2019

http://www.engineeringnews.co.za/

Ford is quickening its pace towards the mass production of electric vehicles (EVs) and is researching how the mining industry can help it achieve its goals.

“There are tremendous investments taking place at every level to achieve this radical revolution in the automotive industry,” Ford energy storage, strategy and research senior manager Ted Miller told delegates at the Investing in African Mining Indaba, in Cape Town.

He added that Ford and its competitors had made significant investments and expected suppliers to do the same.

Is B.C. entering a new golden age for copper? – by Nelson Bennett (Business Vancouver – February 5, 2019)

February 5, 2019

https://biv.com/

Province has good copper exploration potential, but success is very much a long game

Even those who don’t follow mining or invest in it could probably tell you that a global energy transition will mean the world is going to need a lot more copper.

B.C. is Canada’s largest copper producer, with six operating mines and a couple of dozen projects at the early or late exploration stage that could become new mines one day. So is copper golden in B.C.?

Judging by presentations made last week at the annual Association for Mineral Exploration Roundup conference, at a panel called “The B.C. Copper Advantage,” the answer is “Yes, but.”

AGF, Franklin Templeton lay off mining experts amid sector woes – by Rachelle Younglai (Globe and Mail – February 5, 2019)

February 5, 2019

https://www.theglobeandmail.com/

A veteran precious metals portfolio manager and a long-time gold analyst have lost their jobs, the latest fallout from the prolonged downturn in the mining sector.

Ani Markova, a fund manager with AGF Investments, and Peter Maletis, a precious metals analyst with Franklin Templeton, were laid off within the past few weeks.

A long-time employee of AGF, Ms. Markova was a vice-president and portfolio manager for the investment firm’s Precious Metals Fund. Mr. Maletis was an analyst who supported Franklin’s Gold and Precious Metals Fund.

Gold deal rush sweeps by broader mining sector – by Barbara Lewis and Clara Denina (Reuters U.K. – February 5, 2019)

February 5, 2019

https://uk.reuters.com/

CAPE TOWN/LONDON (Reuters) – The wave of consolidation sweeping the gold mining sector is for now passing the wider sector by as diversified majors have delivered returns to keep shareholders happy and investors are wary of repeating past mistakes, executives said.

Newmont Mining Corp said in January it would buy Goldcorp Inc, for $10 billion, creating the world’s biggest gold producer. The merger following Barrick Gold Corp’s agreement in September to buy Randgold Resources Ltd in a deal valued at $6.1 billion.

In previous cycles, gold industry mergers have paved the way for broader activity, but executives say they expect the focus to stay on mid-tier gold companies and selling off any assets the new merged companies do not want. Mark Bristow, CEO of the new Barrick, said gold had reached a point where action was inevitable.

Vale Iron-Ore Mine Halt Risks `Incremental Supply Shock’ – by R.T. Watson (Bloomberg News – February 4, 2019)

February 5, 2019

https://www.bloomberg.com/

Vale SA said it’s temporarily halting some operations at its Brucutu mine, potentially causing a production loss of about 30 million metric tons of iron ore a year — a move that an analyst said could cause “incremental supply shock.” Iron ore in Singapore climbed.

The move is in compliance with a Brazilian court order issued to help improve safety after one of Vale’s tailings dam in Minas Gerais state collapsed in late January, killing more than 130 people and leveling part of a town.

The output cut is on top of the planned 40 million ton curbs that the company will implement as it decommissions dams similar to the one involved in the fatal accident.

NEWS RELEASE: Deloitte mining report explores key trends in 2019 (February 4, 2019)

February 4, 2019

Click here for full report: https://bit.ly/2UF8v49

As the industry shifts into a new stage of growth, miners must take an ever-expanding range of issues into account when setting corporate strategy.

Toronto, February 4, 2019—Released today, Deloitte’s 11th annual mining report, Tracking the trends (https://www2.deloitte.com/ca/en/pages/energy-and-resources/articles/tracking-the-trends.html), explores key trends facing mining companies as they navigate how to operate in a market characterized by constant disruption in the Fourth Industrial Revolution.

“The mining industry is changing faster than ever, resulting in both greater growth potential, as well as more disruption and volatility than in years past,” says Andrew Swart, Deloitte’s Canadian and Global Consulting Leader, Mining & Metals. “In today’s climate, miners must focus on differentiating their business models to generate long-term value, not only to attract investors, but also to remain successful in the communities in which they operate.”

Rethinking mining strategy

In the past, mining companies typically anchored their strategic planning around producing the highest volumes of ore at the lowest possible cost. This led to the drive to build ever-larger mines in pursuit of superior returns, underpinned by the expectation of constantly-rising commodity prices. Although that bubble has long since burst, many mining companies are still grappling with its strategic legacy.

Brazil Dam Catastrophe Sounds Alarm for U.S. Waste Ponds (Bloomberg Environment – February 4, 2019)

February 4, 2019

https://news.bloombergenvironment.com/

A mining dam failure similar to the one that killed more than 100 people in Brazil could happen in the U.S., according to a mine engineer who consults with the government.

At the root of the risk is a quilt of differing state regulations, sloppy dam construction, lax maintenance, neglect of decades-old dams that are wrongly assumed to be stable, and stronger storms dumping water into dams that weren’t designed to handle the weight, said James Kuipers, who consults with the Environmental Protection Agency and state governments on tailings dams, which hold mining waste.

“It can happen here,” Kuipers told Bloomberg Environment. But the industry says tailings dams in the U.S. are safer than they’ve ever been, thanks to advances in technology and design.

For some gold companies, less is more: Why investors seem to be rewarding firms that scrap projects – by Gabriel Friedman (Financial Post – February 2, 2019)

February 4, 2019

https://business.financialpost.com/

Eldorado Gold and Iamgold both shelved projects this week, sending stock prices soaring

Eldorado Gold Corp. on Thursday cancelled plans to build a $500-million processing mill in Turkey and investors took note, sending the stock soaring 28 per cent Friday morning after watching it decline for the past year.

A similar trading pattern occurred on Iamgold Inc.’s stock last week, which rose more than 20 per cent after the miner indefinitely delayed construction of its nearly $1-billion Côté mine in Ontario.

Taken together, the two companies’ decisions may offer a picture of what investors want from mid-tier gold companies, particularly those suffering through years-long slumps: fewer projects with hefty price tags as analysts across the board predict greater consolidation in the precious metals sector.

RPT-COLUMN-South Africa will struggle to boost coal exports, even if it wants to – by Clyde Russell (Reuters U.K. – February 4, 2019)

February 4, 2019

https://uk.reuters.com/

CAPE TOWN, Feb 4 (Reuters) – There may be some irony in climate change being blamed for an increase in weather delays that resulted in South Africa’s coal exports dropping 4 percent last year, but in reality the rough seas at the country’s Richards Bay terminal are the least of the industry’s worries.

Shipments from Richards Bay declined to 73.5 million tonnes in 2018 from 76.5 million the prior year, well below the 91 million tonnes capacity of the terminal, which is the second-biggest in the world behind Newcastle Port in Australia.

The terminal lost 36 days of loading last year because of rough weather, down slightly from 38 days in 2017, with both these years being considerably higher than in preceding years.

Ontario court decision sets precedent for First Nations – by Doug Cuthand (Saskatoon StarPhoenix – December 28, 2019)

February 4, 2019

https://thestarphoenix.com/

An Ontario judge’s decision that treaty annuities must be increased to reflect resource revenue taken from treaty territory promises to be a hot topic, writes Doug Cuthand

Christmas came early in Indian Country. In a landmark decision, a judge in Thunder Bay has ruled that the treaties are living documents and annuities must be increased to reflect the resource revenue taken from the treaty territory.

The judge’s decision was delivered in Thunder Bay on Dec. 21 and has been barely covered by the media. However, it promises to be a hot topic as the year progresses and the far-reaching effect starts to sink in.

Earlier this year, the 21 First Nations that were the signatories of the Robinson Huron Treaty took the federal government to court to have the annual annuities of $4 evaluated and updated to reflect the increase in resource revenues over the years.

Sudbury Accent: Decision further erodes Crown sovereignty – by Peter Best (Sudbury Star – February 2, 2019)

February 4, 2019

https://www.thesudburystar.com/

In December 2018, the Ontario Superior Court of Justice released its Restoule decision rendering Canada and Ontario equally liable to pay the 21 Robinson Treaties bands their “fair” share of all Crown revenue received from sales, leases and licenses, less expenses, derived from Robinson Treaties-surrendered lands (covering basically the entire Lakes Huron and Superior watershed), retroactive to 1850.

Why? Because the Court concluded that Canada and Ontario acted dishonorably by in effect unknowingly short-changing the Treaties bands of entitlements owed to them. The bands’ court winnings will be in addition to the already substantial non-treaty payments and benefits regularly paid by Canadian taxpayers to them.

This ruling is, with respect, ill founded. Ontario has appealed the decision, but Canada, to the harm of Crown sovereignty, Canadian social unity and the Canadian taxpayer, has not.

NEWS RELEASE: YMP Awards Winners are Andrée St-Germain & Jose Vizquerra (February 4, 2019)

February 4, 2019

Young Mining Professionals (“YMP”) is pleased to announce that the winners of YMP 2018’s Eira Thomas and Peter Munk Awards are Andrée St-Germain and Jose Vizquerra.

The YMP Awards, presented in association with The Northern Miner, to recognize two young mining professionals, a female and a male, who over the past year, and during their careers, have demonstrated exceptional leadership skills and innovative thinking to provide value for their companies and shareholders, as well as for themselves. The YMP Awards are named after two iconic entrepreneurs in the mining industry, Eira Thomas and the late Peter Munk.

Nominees for the Awards most be under 40 years of age in 2018 and active in some aspect of the mining industry. Voting on a selection of nominees was held in January by a committee representing the global YMP chapters and The Northern Miner.