Republic of Mining

Is Global Atomic Stephen Roman’s next big thing? – by Trish Saywell (Northern Miner – January 21, 2019)

January 22, 2019

Northern Miner

Serial mine builder and financier Stephen Roman cut his teeth working for Denison Mines Corp. (TSX: DML), the uranium company built by his father. After starting there as a miner at the age of nineteen, he spent the next 25 years at the uranium producer before striking out on his own in 1990-1991.

Roman went on to build several mines in the gold space, the most recent, Harte Gold Corp.’s (TSX: HRT; US-OTC: HRTFF), Sugar mine, in Ontario. Among his other accomplishments: Building the Black Fox mine, now owned by McEwen Mining (TSX: MUX; NYSE: MUX), and selling Gold Eagle to Goldcorp. (TSX: G; NYSE: GG) for $1.5 billion.

But Roman’s interest in uranium never waned. In January 2005 he set up Global Uranium Corp.—now called Global Atomic Corp. (TSXV: GLO; US-OTC: SYIFF)—and decided to focus the company’s exploration dollars on West Africa.

Coal’s deadly reality: Heartbreaking TV doc reveals the dangerous truth about modern mining – by John Doyle (Globe and Mail – January 21, 2019)

January 22, 2019

https://www.theglobeandmail.com/

In the craven debacle that is U.S politics in the Trump era, coal miners played an important supporting role for a while.

During the 2016 presidential campaign, Donald Trump pledged to “get those mines open” and bring back a lot of coal-mining jobs. Famously, at a rally in West Virginia, he put on a miner’s helmet, imitated a miner shovelling coal and brayed: “For those miners, get ready, because you’re going to be working your asses off.”

It worked. In Kentucky, for instance, he won every county with a history of coal mining by huge margins. In the larger scheme of things, the oft-repeated declaration of advocacy for coal miners and steelworkers transmitted a devotion to working men and women in declining industries.

China’s iron ore hits over 10-1/2-month peak on strong demand – by Enrico Dela Cruz (Australian Financial Review – January 22, 2019)

January 22, 2019

https://www.afr.com/

Manila | China’s iron ore futures rose on Monday to their highest since March 2018, extending gains on expectations of increased demand as the country’s steel inventories fell, and hopes that Beijing will roll out more economic stimulus measures.

Steel futures held on to their gains after data showed last month’s average daily steel output of China, the world’s biggest steel maker, hit its lowest level since March as producers cut output amid shrinking profit-margins.

The most traded iron ore contract on the Dalian Commodity Exchange closed 2.2 per cent higher at 533 yuan ($US78.53) a tonne, after rising as much as 3.2 per cent to 538 yuan early in the session, the highest since March 2, 2018 when it hit the same level.

AngloGold Faces South Africa Doubt as M&A Gold Rush Quickens – by Felix Njini (Bloomberg News – January 21, 2019)

January 22, 2019

https://www.bloomberg.com/

Two decades ago, Anglo American Plc created the world’s No. 1 gold miner by merging its South African assets. Having long since been eclipsed by its rivals, AngloGold Ashanti Ltd. may need to leave home to keep up.

Newmont Mining Corp. and Barrick Gold Corp. have forged mega deals that will extend their lead over AngloGold. Saddled with Mponeng, the world’s deepest mine in a dying South African industry that’s struggling to contain costs, the third-biggest producer could boost its value by leaving the country, according to Rene Hochreiter, analyst at Noah Capital Markets Ltd. in Johannesburg.

“Their best bet is to get out of South Africa and leave Mponeng behind,” he said. “The costs never come down in South African gold.”

China’s coal output hits highest in over 3 years as mines start up (Reuters U.K. – January 21, 2019)

January 22, 2019

https://uk.reuters.com/

BEIJING (Reuters) – China’s December coal output climbed 2.1 percent from the year before, government data showed, hitting the highest level in over three years as major miners ramped up production amid robust winter demand and after the country started up new mines.

Miners produced 320.38 million tonnes of coal in December, according to data released on Monday by the National Bureau of Statistics. That is the largest volume since June, 2015.

China approved more than 45 billion yuan’s ($6.64 billion)worth of new coal mining projects last year, much more than 2017, official documents show. That came after the country closed old and more-polluting coal mines as part of its battle to clean up the environment.

Barrick Gold opens door to sale of biggest copper mine amid new African tax dispute – by Niall McGee (Globe and Mail – January 22, 2019)

January 22, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. is opening the door to a sale of its biggest copper mine as it faces higher taxes that threaten its profitability in Zambia.

In a statement on Monday, Barrick said the Zambian government has proposed tax increases for its Lumwana property that would “imperil the mine’s ability to sustain returns to all stakeholders.”

Barrick said reports that it had already sold Lumwana were untrue, but the Toronto-based company allowed that given the “challenging conditions,” it was considering “all options.” The potential sale is an about-face for Barrick, which had previously designated its copper assets as “strategic” and not something it was planning to sell.

REVIEW: Groundbreaking! America’s new quest for mineral independence (Canadian Mining Journal – January 21, 2019)

January 22, 2019

http://www.canadianminingjournal.com/

Groundbreaking! America’s New Quest for Mineral Independence. Dr. Ned Mamula and Ann Bridges. 294 pages. ISBN-13: 978-1729669525 / ISBN-10: 1729669522.

What happens when a geologist and an author whose chief interest is California’s Silicon Valley get together to take a look at the United States’ dependence on foreign supplies of critical minerals? The result is a long hard look at how our southern neighbour failed to take advantage of its mineral resources. Instead the authors say that the reliance on foreign supply has created a national security issue.

Groundbreaking! looks first at risk/reward, why minerals matter, and the U.S. dependence foreign suppliers for critical minerals. There is a run-down of mineral wealth in the U.S., and how the country should rediscover that wealth. The book has a running theme of the role of domestic mineral production as a national security issue.

There are separate chapters on rare earths, the American uranium debacle, and the Pebble gold mine in Alaska. Each is packed with facts, illustrations and tables about its topic.

Battery electric in mining here to stay: Panel of experts talk future and challenges of emerging technology at Sudbury event – by Karen McKinley (Northern Ontario Business – January 18, 2019)

January 18, 2019

https://www.northernontariobusiness.com/

The transition to battery electric vehicles in mining is well underway, but there remain technology issues that need to be addressed, said a panel of industry leaders in Sudbury, Jan.17. The discussion on electric vehicles brought a packed house to the Sudbury chapter of the Canadian Institute of Mining monthly general meeting at Science North.

The panel included Shane Wisniewski, general manager of mining projects at Glencore; Brian Huff, chief technology officer of Artisan Vehicles; Mike Mayhew, mine superintendent of Kirkland Lake Gold; Raphael Tiangco, superintendent of mobile fleet management at Vale; and Maarten van Koppen, senior project engineer at Goldcorp.

The panelists agreed that battery technology is the way of the future for deep hardrock mining, citing everything from cost savings, durability and health and safety. Tiango related his experiences underground when diesel was the dominant energy source.

[Newmont/Goldcorp] These assets could be up for grabs after mega gold mining merger – by Rajeshni Naidu-Ghelani (Bloomberg News/Business Network News – January 18, 2019)

January 18, 2019

https://www.bnnbloomberg.ca/

Recent M&A activity in the mining sector like Newmont Mining Corp.’s move this week to buy Goldcorp Inc. to form the world’s largest gold miner, and rival Barrick Gold Corp.’s acquisition of Randgold Resources Ltd., have shaken up the lacklustre industry.

As part of the deals, the mining giants have said they will be selling assets — sparking speculation on which mines could be up for grabs, and who would be interested in buying them.

Newmont and Goldcorp. said on Monday the merged company will sell up to US$1.5 billion in assets over the next two years, while Barrick has pledged to focus on cash-generating assets.

My Take on Snow Lake: New exploration of previous mine site yields promising results – by Marc Jackson (Thompson Citizen – January 18, 2019)

January 18, 2019

https://www.thompsoncitizen.net/

Mining is the industry that drives the economy in the Snow Lake area … it has for over 100 years. All of the mines the industry is based on have been in the ground since the Earth was formed; however, it was only when technology allowed mine finders the ability to locate orebodies that they were able to exploit them. As technology continually advances, many of those occurrences mined or explored in decades past are now getting a second look.

This was the case with the Lalor Mine (Chisel Lake Basin) and the Snow Lake Mine (New Britannia and Nor-Acme), but it is also playing a part in the resurrection of exploration on several lithium properties on the east side of Wekusko Lake (Thompson Brother Cluster and the Sherritt Gordon Cluster), as well as the mine that originally brought pioneers to the area early in the 20th century – Herb Lake’s Rex/Laguna.

Back in the 1930s and ’40s, Herb Lake, Manitoba was a prosperous mining town. It hummed with activity and even though it couldn’t be accessed by anything other than boat and a winter road, it was home to between 600 and 700 people.

Is Newmont Goldcorp good for North? – by Shane Lasley (Mining News – North of 60 – January 18, 2019)

January 18, 2019

https://www.miningnewsnorth.com/

he proposed combination of Newmont Mining Corp. and Goldcorp Inc. has raised questions about the future of the companies’ gold assets in the Yukon and investments in other junior mining companies across Canada’s North.

Two of the gold projects in the proposed Newmont Goldcorp pipeline are found in the Yukon – Plateau, a large property being explored by Newmont, and Coffee, a project that is nearing the mine development stage.

Knowing that the combined gold miner plans to shed some of its assets, it is currently unclear whether these projects will fit into the larger company’s pipeline or be put up for sale as part of the effort to slim down.

Dinner and a golden proposal: How Goldcorp and Newmont came together – by Niall McGee and Rachelle Younglai (Globe and Mail – January 18, 2019)

January 18, 2019

https://www.theglobeandmail.com/

When Goldcorp Inc. executives sat down with their counterparts at Newmont Mining Corp. at an upscale restaurant in downtown Vancouver, it was supposed to be a casual get-together. The mid-December dinner had been on their schedules for some time, and was planned simply to build the rapport between the two senior gold mining companies.

Instead, in one of the restaurant’s private dining rooms, Newmont chair Noreen Doyle and chief executive Gary Goldberg told Goldcorp attendees it wanted to acquire the company. The reaction from Goldcorp chair Ian Telfer and CEO David Garofalo was shock.

While Vancouver’s Goldcorp had been exploring the idea of working with Denver-based Newmont for a few years, the idea of a takeover had never come up. However, with Goldcorp’s share price severely beaten down after many strategic blunders, it was vulnerable. In fact, Goldcorp had recently been talking with Australia’s Newcrest Mining Ltd. about a possible takeover of Goldcorp.

Canada could impact emissions were Ottawa not so obsessed with carbon taxes – by Brad Wall (Financial Post – January 18, 2019)

January 18, 2019

https://business.financialpost.com/

Brad Wall is the former premier of Saskatchewan. He is currently an adviser for Osler, Hoskin and Harcourt in Calgary.

Canadian technology could clean up hundreds of coal plants around the world

Three years ago, there we were at the COP21 Paris Climate Conference: 383 Canadians strong. Our delegation was larger than almost any other country’s, rivalling even the host country’s delegation. Canada was back.

Saskatchewan was there, too, with our three-person contribution to the overall Canadian throng, though we may have been a little out of step.

Just two weeks before Paris, the Alberta government had announced its own carbon tax. The explicit and implied promise was that this indulgence paid by Albertans would purchase the absolution required to secure pipeline approvals. Saskatchewan then was alone in its opposition to a nationally imposed carbon tax. So, in Paris we were — without intention — a few prairie skunks at this low-carbon garden party.

OPINION: Environmentalists’ next opponent? First Nations – by Gary Mason (Globe and Mail – January 18, 2019)

January 18, 2019

https://www.theglobeandmail.com/

When Justin Trudeau announced he was buying a pipeline last May, the condemnation from leading environmental organizations was swift and fierce. And according to the country’s most renowned eco-warriors, no group had been betrayed more by the move than First Nations.

Greenpeace said the government had put itself on a “collision course” with Indigenous rights. The Wilderness Committee, the David Suzuki Foundation and Stand.earth, among others, reiterated similar talking points:

By acquiring the Trans Mountain pipeline and the rights to expand it, Ottawa had trampled on constitutional privileges enjoyed by the country’s aboriginal community and had lost its trust in the process. There was only one problem with this line of attack: It wasn’t true.

Miners waiting for higher nickel, metals prices – by Harold Carmichael (Sudbury Star – January 18, 2019)

January 18, 2019

https://www.thesudburystar.com/

The prices of nickel and other metals prices will recover, especially when more electric vehicles are built, mining analysts say. When they do, work at Levack Mine’s Morrison deposit will resume. Until then, KGHM Sudbury will keep the deposit in a care and maintenance mode, company officials say.

“It was very difficult,” Steve Dunlop, KGHM Sudbury general manager, said about meetings with employees held Wednesday to break the news. “Our concern is certainly with our employees. We are a fairly tight family. All of our workers have 10-plus years and the staff (members) have also been with us for quite a long time. It was very difficult.”

Slumping world nickel prices have prompted KGHM Sudbury to halt production at its Morrison deposit, putting an estimated 120 employees out of work as of late March when the mine goes into care and maintenance mode. A total of 87 of the affected 120 employees are members of United Steelworkers Local 2020.