Republic of Mining

Sudbury sees spike in international delegations: Mining innovation drawing business travellers to community – by Karen McKinley (Northern Ontario Business – January 15, 2019)

January 15, 2019

https://www.northernontariobusiness.com/

The City of Greater Sudbury’s long history in mining is starting to have an effect on travel numbers, according to the city’s development corporation.

Over the past year more delegates have been coming to the city to not just meet and speak with companies and executives, but look at how the region has tackled mining as a whole, from prospecting and technology, to remediation and knowledge gathering.

“The numbers are increasing because Sudbury has a global reputation for being a mining innovation centre,” said Scott Rennie, project manager for Northern Ontario exports, Greater Sudbury Development Corporation in an interview.

Monster Gold-Mining Deals Pile Pressure on Those Left Behind – by Thomas Biesheuvel and Danielle Bochove (Bloomberg News – January 15, 2019)

January 15, 2019

https://www.bloomberg.com/

Mark Bristow’s tenure as boss of the world’s biggest gold miner might have been short-lived, but his message for smaller rivals just got even more pointed.

“Holy camoly, I missed out on a great opportunity!” is how Bristow described anyone not involved in Barrick Gold Corp.’s purchase of Randgold Resources Ltd. in September. With Newmont Mining Corp. poised to become the No. 1 producer through a $10 billion takeover of Goldcorp Inc. announced Monday, the pressure on those left behind will be even greater.

The two mega deals promise to transform the industry that many investors have shunned due to floundering bullion prices and poor decision making by producers. The newly combined companies are also expected to put several unloved assets up for sale, leaving lots of room for maneuvering by those that missed out on the dealmaking so far.

Development group lands $1.1 million for mining centre – Staff (Northern Ontario Business – January 15, 2019)

January 15, 2019

https://www.northernontariobusiness.com/

Waubetek’s Centre of Excellence for Indigenous Mineral Development was launched in 2015

The Waubetek Business Development Corp. has received a key piece of funding to help them move forward with a Centre of Excellence for Indigenous Mineral Development. On Jan. 15, the federal government announced $1,131,913 from FedNor to help fund the project, which was launched in 2015.

The project will help engage Indigenous people in the mines and minerals industry in Northern Ontario, creating new employment and business opportunities. It will also assist mining companies to address critical gaps in numerous mining-related occupations.

“Our First Nations’ primary interest is to ensure that we are adequately consulted when it comes to mining and exploration within our traditional territories and to ensure that we have more opportunities to participate in the benefits that might come from this development in a sustainable way, including meaningful jobs, business opportunities, joint management and care of the lands on which these projects operate,” said Martin Bayer, Waubetek’s chair, in a news release.

Newmont’s Goldcorp Gamble May Need ‘Drastic Surgery’ to Pay Off – by Danielle Bochove, Caleb Mutua and Marvin G. Perez (Bloomberg News/Yahoo – January 15, 2019)

January 15, 2019

https://finance.yahoo.com/

(Bloomberg) — The cost to create the world’s largest gold company: A 17 percent premium for a $10 billion all-shares acquisition that faces some big-time challenges down the line.

Newmont Mining Corp.’s deal for Goldcorp Inc. stands in stark contrast to the recent zero-premium merger between Barrick Gold Corp. and Randgold Resources. The key question: Why? In October, Goldcorp shares fell to their lowest since 2002 after the miner reported lower output and higher costs than expected. Since then the stock improved only marginally before today.

The merged company will have the world’s largest production and reserve base, and the kind of liquidity and diversified assets required to attract institutional investors, Stephen D. Walker, an analyst with RBC Capital markets, wrote in a research note.

President Trump can’t stop U.S. coal plants from retiring – by Scott DiSavino (Reuters U.S. – January 14, 2019)

January 15, 2019

https://www.reuters.com/

(Reuters) – More U.S. coal-fired power plants were shut in President Donald Trump’s first two years than were retired in the whole of Barack Obama’s first term, despite the Republican’s efforts to prop up the industry to keep a campaign promise to coal-mining states.

In total, more than 23,400 megawatts (MW) of coal-fired generation were shut in 2017-2018 versus 14,900 MW in 2009-2012, according to data from Reuters and the U.S. Energy Information Administration (EIA).

Trump has tried to roll back rules on climate change and the environment adopted during the Obama administration to fulfill pledges to voters in states like West Virginia and Wyoming.

Congo poll leaves uncertainty for miners at heart of EV revolution – by Joe Bavier (Reuters U.S. – January 13, 2019)

January 15, 2019

https://www.reuters.com/

JOHANNESBURG (Reuters) – The surprise outcome of Congo’s election – a vote meant to bring closure to years of turmoil under President Joseph Kabila – has done little to ease uncertainty for miners and investors in a country crucial to the electric vehicle revolution.

Democratic Republic of Congo is the world’s leading miner of cobalt, a mineral used in electric car batteries which has seen a surge in demand in recent years, with mines run by firms including Glencore (GLEN.L) and China Molybdenum (603993.SS).

Opposition candidate Felix Tshisekedi, an unknown quantity for mining executives, was declared the winner of last month’s chaotic vote on Thursday, defeating Kabila’s chosen successor, Emmanuel Ramazani Shadary.

Newmont Mining to take over Goldcorp in US$10-billion acquisition deal – by Niall McGee and Rachelle Younglai (Globe and Mail – January 15, 2019)

January 15, 2019

https://www.theglobeandmail.com/

Goldcorp Inc. has agreed to a US$10-billion takeover by Newmont Mining Corp. that sees the Vancouver company, once the world’s most valuable gold miner, acquired by a U.S. competitor at a fraction of its peak value.

The Goldcorp takeover is the second big deal in the past few months involving a large Canadian gold company. On Jan. 1, Toronto-based Barrick Gold Corp. closed its US$6-billion acquisition of African operator Randgold Resources Ltd.

Now, Newmont is set to surpass Barrick and grab the crown as the world’s largest gold producer by market capitalization, production and reserves. Newmont and Goldcorp will produce 6 to 7 million ounces of gold a year over the next decade, executives said on Monday. The combined stock market capitalization of the new company would be about $35-billion, compared with Barrick’s $29-billion.

Nutrien merger effects ongoing one year later – by Ashley Robinson (The Western Producer – January 14, 2019)

January 15, 2019

https://www.producer.com/

WINNIPEG – After clearing various regulation hurdles, Agrium and the Potash Corporation of Saskatchewan merged together at the start of 2018 to become the world’s largest fertilizer company, Nutrien. At the time Nutrien had made various promises and many in Western Canada were cautious, hoping for the best but not fully knowing what to expect.

Now a year later, Nutrien has begun to settle into its new role in the agriculture world and according to retailers and producers it hasn’t really shaken things up all that much. However, there are a few things that still have many in Western Canada cautiously watching.

“I don’t want to pretend to call it a non-event because there’s always a concern about consolidation and all I can say at the moment is it doesn’t have any obvious impact,” said Ray Redfurn, president and founder of Redfern Farm Services in southwestern Manitoba.

Diamond sector transformation in Angola approaches major milestone achievement (Mining Review Africa – January 14, 2019)

January 15, 2019

Mining Review Africa

The significant diamond sector reforms being enacted by the President of Angola, His Excellency Joao Lourenco, to grow investment into the Angolan mining sector, will take another major step forward this month. The inaugural competitive bid sale of large and premium-quality diamonds from Lucapa Diamond Company’s (and partners) high-quality Lulo diamond mine will take place in Luanda.

The sale will mark a significant milestone for the Angolan diamond mining industry, being the first diamonds offered for sale in a competitive process under the new diamond marketing policy enacted by President Lourenco and the Angolan Council of Ministers.

The historic Lulo competitive bid sale, which is scheduled to close on 31 January 2019, is being organised in Luanda by SODIAM, the state-owned company responsible for the trading of diamonds in Angola.

OPINION: After Goldcorp-Newmont deal, who’s next in the gold-industry merger wave? – by Andrew Willis (Globe and Mail – January 15, 2019)

January 15, 2019

https://www.theglobeandmail.com/

In the gold sector, nothing gets the sharks circling like the combination of promising mines and a depressed stock price. The sector’s prolonged slump now has its biggest predators, Newmont Mining Corp. and Barrick Gold Corp., feeding on weaker rivals, creating expectation of further takeovers in an industry where many experts see consolidation as long overdue.

Denver-based Newmont snapped up former market darling Goldcorp Inc. for US$10-billion after a series of management miscues left the Vancouver-based owner of 13 properties with a valuation that trailed comparable companies.

Barrick took advantage of much the same dynamics last September, striking a US$6-billion deal with Randgold Resources Ltd. after investors got the jitters over the company’s mines in politically unstable African countries such as Mali and the Democratic Republic of Congo.

Russian Diamond Giant Alrosa Is Going Back to Zimbabwe – by Yuliya Fedorinova and Thomas Biesheuvel (Bloomberg News – January 15, 2019)

January 15, 2019

https://www.bloomberg.com/

Alrosa PJSC, one of the world’s top diamond miners, is returning to crisis-stricken Zimbabwe, the latest example of Russia expanding its footprint in Africa.

The company will develop new mining operations with the support of the government, Alrosa said Monday as Zimbabwe’s President Emmerson Mnangagwa visited Moscow to try and raise investment for his economically blighted nation. In Mnangagwa’s absence, protests against his government’s economic mismanagement intensified, with 24 injured on Monday and five possibly dead.

Mnangagwa, who became president in 2017, sees diamonds as one way to help revive his nation’s mining industry, which suffered years of decline under his predecessor Robert Mugabe. The government is considering waiving a rule that has prevented foreign investors from holding controlling stakes in its diamond mines, as it targets production of 12 million carats by 2023, up from 3.5 million carats last year.

Why the Newmont-Goldcorp blockbuster deal is in sharp contrast to the Barrick-Randgold merger – by Gabriel Friedman (Financial Post – January 15, 2019)

January 15, 2019

https://business.financialpost.com/

Newmont has higher a dividend, safer locations than Barrick and will invest in Canada, but its stock still fell. Perhaps copper-gold mining will help it shine

As Newmont Mining Inc.’s chief executive Gary Goldberg hawked a proposed $10 billion all-stock purchase of Vancouver-based Goldcorp to his investors on Monday, he and his team emphasized massive gold production, a focus on mines in the safest jurisdictions in the world and continued investment in Canada.

That drew a stark contrast to chief rival Barrick Gold, which also recently completed a mega-merger, and has reduced its presence in Canada and grown in more risky jurisdictions. “This is not a deal we have to do, it’s a deal we want to do,” Goldberg told investors.

But while Barrick’s share price surged after announcing its deal, Newmont’s stock had declined 8.89 per cent to close at US$31.78 on Monday afternoon.

Newmont Mining to buy Goldcorp – by Ian Bickis (Canadian Press/Timmins Daily Press – January 15, 2019)

January 15, 2019

https://www.timminspress.com/

Newmont Mining Corp. has struck a US$10-billion deal to take over Goldcorp Inc. in a move that will see the U.S.-based mining giant grow even larger while Canada’s mining industry loses a head office.

TORONTO — Newmont Mining Corp. has struck a US$10-billion deal to take over Goldcorp Inc. in a move that will see the U.S.-based mining giant grow even larger while Canada’s mining industry loses a head office.

Colorado-based Newmont will add Vancouver-based Goldcorp’s seven mines in North and South America to its global operations of 12 operating mines to create a company expected to rival or top Barrick Gold as the world’s largest gold producer. “This is not a deal we have to do, this is a deal that we want to do,” Newmont CEO Gary Goldberg told a conference call Monday.

The deal follows Barrick Gold’s US$6.1-billion all-stock takeover of Randgold Resources Ltd. that closed at the start of the year to create a company with a combined 2018 gold production guidance of between 5.8 million and 6.3 million ounces.

Newmont Deal for Goldcorp Further Erodes Canada’s Gold Clout – by Danielle Bochove and Jacqueline Thorpe (Bloomberg News – January 14, 2019)

January 15, 2019

https://www.bloomberg.com/

Canada’s influence on the global mining industry appears to be shrinking by the day. Perhaps stung by the nationalistic backlash against Barrick Gold Corp.’s merger with Randgold Resources Ltd., Newmont Mining Corp. devoted a big chunk of its news release Monday explaining how its $10 billion offer for Vancouver-based Goldcorp Inc. will help Canada.

But there’s no hiding the fact that the global head office of the world’s largest gold miner will be in Greenwood Village, Colorado, where Newmont is based. Like “New Barrick,” which no longer has its top executives in Canada, Newmont Goldcorp’s incoming chief executive officer and current chairwoman are expected to remain in the U.S.

While some jobs will flow from Nevada to the miner’s new regional base for North America in Vancouver, it’s hard to imagine the influence of that city not waning as a result of the deal.

COLUMN-Three reasons gold may be about to run with the bulls – by Clyde Russell (Reuters U.S. – January 14, 2019)

January 14, 2019

https://www.reuters.com/

LAUNCESTON, Australia, Jan 14 (Reuters) – The three legs that supported gold’s extended rally from just after the 2008 global recession until the all-time peak in 2011 may be making something of a comeback this year.

This is sparking hopes that the precious metal may finally break out of a fairly narrow five-year range, although it’s still far from certain that the dynamics for a sustained rally are entrenched.

The 2008-11 rally that saw spot gold almost triple in value to reach a record of $1,920.30 an ounce was built on three pillars, namely strong physical demand from top buyers China and India, robust central bank purchases, and appetite for a safe haven investment amid the fallout from the global recession.