Republic of Mining

OPINION: Another one bites the dust: Goldcorp sale a further example of the hollowing-out of corporate Canada – by Eric Reguly (Globe and Mail – January 14, 2019)

January 14, 2019

https://www.theglobeandmail.com/

Toronto’s Barrick Gold always wanted to team up with Newmont Mining of Colorado. Merging the two giants, which have adjoining operations in gold-rich Nevada, would have created an unassailable industry leader and reduced costs by an estimated US$1-billion a year. On paper, it looked like a dream deal. But it never got off the ground, in good part because Barrick founder Peter Munk wanted the new company to stay in Toronto, not move to Denver.

Were he alive today, Mr. Munk – a Canadian patriot who believed in the value of head offices – would be distraught. In the autumn, Barrick bought Randgold Resources but handed management control to Randgold’s executives, who promptly gutted Barrick’s Toronto headquarters, leaving the world’s top producer with a mere 65 employees in its echo-chamber offices on Bay Street. The deal was, in effect, a reverse takeover. The new Barrick will be run from the Channel Islands.

On Monday, it was Newmont’s turn to accelerate what appears to be the second wave of the great hollowing-out story, a decade after Inco, Falconbridge, Alcan, Dofasco, Stelco and dozens of other industrial powerhouses were eradicated from the Canadian map.

Barrick CEO to Forge Ahead in Latin America Despite Past Strains – by Danielle Bochove and Laura Millan Lombrana (Bloomberg News – January 10, 2019)

January 14, 2019

https://www.bloomberg.com/

Barrick Gold Corp.’s new boss intends to push ahead with plans to increase investment in the mineral-rich — but environmentally tricky — deposits straddling the Chile-Argentina border.

“If you want to find elephants, go to elephant country,” Chief Executive Officer Mark Bristow, a South African geologist and big-game hunter, said in a phone interview. The Toronto-based company “absolutely” intends to invest more money in the El Indio copper-and gold belt, he said, adding that its partnerships with Chinese and Chilean miners remain key to its strategy in the region.

The world’s largest gold miner, which completed its merger with Randgold Resources Ltd. at the beginning of the year, had been revamping its South American strategy since John Thornton became chairman in 2014.

OPINION: What happens when Canadian companies stop flying the flag – by Matthew Bellamy (Globe and Mail – January 12, 2019)

January 14, 2019

https://www.theglobeandmail.com/

Matthew J. Bellamy is an associate professor of history at Carleton University in Ottawa and the author of Profiting the Crown: Canada’s Polymer Corporation.

When General Motors announced in late November that it would be closing its plant in Oshawa, Ont., the outrage was immediate – and perfectly understandable. Here was a strategic move on the part of a multinational company, tearing out roots and slashing the manufacturing jobs that were the lifeblood of the town. Add in the billions of dollars that Ottawa had spent to keep the company in Canada, and it’s easy to see why Canadians would take this so personally.

Meanwhile, the recent news about Barrick Gold – that it would lay off more than half of the staff at its Toronto head office in the wake of a merger with Randgold, an African operator headquartered in the Channel Islands, and revamp its board of directors to leave just one Canadian-born member who lives in New York – hasn’t stirred the emotions in quite the same way.

Fair enough, too: Much of Barrick’s business, since it transitioned from a money-losing oil and gas firm to a money-spinning mining company, has happened outside of Canada, in places such as the United States, Australia, the Dominican Republic, Peru, Argentina and Chile. And even though the company’s dynamic founder, Peter Munk, lived in Canada for seven decades, he passed away in March.

This pipeline is challenging Indigenous law and Western law. Who really owns the land? – by Justine Hunter, Brent Jang, Wendy Stueck and Shawn McCarthy (Globe and Mail – January 12, 2019)

January 14, 2019

https://www.theglobeandmail.com/

Pipeline owners say they have consent, but Wet’suwet’en leaders are divided

With members of the Wet’suwet’en First Nation blockading a pipeline project on their traditional lands, Na’moks was standing by a crackling campfire, next to an RCMP checkpoint, drawing in the snow with his right boot.

The hereditary chief of the Tsayu clan made a small circle to represent the authority of elected band councils within reserves. Outside that circle, he explained, is where Wet’suwet’en clans wield power over a vast territory. “We are hereditary chiefs,” he said, “and we have control of this land.”

The temporary checkpoint was set up earlier this week in a remote area of the B.C. Interior as things got tense, with RCMP officers arresting 14 protesters on Monday at a blockade erected last month along a logging road.

Mining mafia is wreaking havoc across India – by Anand Kumar (Dawn.com – January 14, 2019)

January 14, 2019

https://www.dawn.com/

THE mining mafia, which undertakes illegal mining of coal, iron ore, sand, bauxite, chromite and sand, has tremendous reach across different Indian states. And it is only when a disaster strikes illegal mining, as happened last month in the north-eastern state of Meghalaya, that a lot of noise is generated and government leaders talk of enforcing the ban on illegal mining and cracking down on the mafia.

But within weeks, things just settle down and the mafia deepens its operations across India. Last month saw one of the worst disasters when 15 miners were trapped — and are believed to have died by now — in an illegal ‘rat-hole’ coal mine in Meghalaya.

The illegal operators of rat-hole mining dig holes and make narrow tunnels to extract coal. In Meghalaya, the lush green state nestling in the hills, coal mining is a notorious activity undertaken by many illegal miners.

Newmont to buy Goldcorp in US$10B mega mining deal – by Thomas Biesheuvel and Elena Mazneva (BNN/Bloomberg News – January 14, 2019)

January 14, 2019

https://www.bnnbloomberg.ca/ Newmont Mining Corp. will buy rival Goldcorp Inc. in a deal valued at US$10 billion, creating the world’s largest gold miner and cementing a return of M&A to the industry. The transaction comes just three months after Barrick Gold Corp.’s move to buy Randgold Resources Ltd. in a US$5.4 billion transaction, which instantly spurred …

Canada’s Goldcorp to be swallowed by Newmont in $10-billion all-stock deal – by Niall McGee (Globe and Mail – January 14, 2019)

January 14, 2019

https://www.theglobeandmail.com/

Canada’s Goldcorp Inc. is being swallowed by United States gold major Newmont Mining Corporation in a friendly all-stock acquisition valued at $10-billion. This is the second huge M&A deal in the global gold sector in the past few months. Barrick Gold Corp. closed its US$6-billion acquisition of Randgold Resources Ltd only a few weeks ago.

The Globe and Mail reported on Friday that Goldcorp was in talks with Newmont as it explored strategic options with its stock trading at a 17-year low. Goldcorp also talked to Australian gold major Newcrest Mining before Christmas about a deal but those talks fell apart.

Goldcorp shareholders will receive 0.328 of a Newmont share for their stock. The 17-per-cent premium being paid is low compared to similar sized acquisitions on a historical basis. When the gold price was trading at much higher levels, takeover premiums in the 30 to 40 per cent range were common in the industry.

How Canada’s dazzling future in diamonds ended in fraud allegations – by Jennifer Wells (Toronto Star – January 14, 2019)

January 14, 2019

https://www.thestar.com/

This is not going to be a column about the manufactured consumption of diamonds. But it is going to be a column about the manufacture — the cutting and polishing — of diamonds.

The news from Tiffany & Co. of a diamond provenance initiative is welcome. Steps the company has taken as of this week — providing geographic sourcing information for individual diamonds — will be ramped up in 2020 when the New York jewelry house begins sharing the “craftsmanship journey,” as in, where those stones were turned into princess-cut bedazzlers. Do you want your diamond to be ethically sourced? Of course you do.

Some may think, brightly: Tiffany-blue ring boxes, Marilyn Monroe, Audrey Hepburn. Others may think, insightfully: conflict diamonds, blood diamonds, child labour. I think, simply: Northwest Territories, squandered economic opportunity, a sprinkling of fraud. They’re all connected. Human rights abuses abroad bleed as deeply through the mining of diamonds as those kimberlite pipes that plunge beneath the Arctic surface.

Sudbury Accent: Lots done, lots still to do, top biologist John Gunn (Living With Lakes Centre) says – by Donald Macdonald (Sudbury Star – January 12, 2019)

January 14, 2019

https://www.thesudburystar.com/

John Gunn is a fisheries biologist who has for the past 25 years studied the effects of acid rain, climate change, and a variety of other environmental factors on coldwater fish communities. As the director of the Living with Lakes Centre in Sudbury and Canada Research Chair in Stressed Aquatic Systems, he is now leading a team of researchers in the study of the effects of multiple stressors on Shield ecosystems.

He is also investigating the recovery processes that operate once stressors are removed. Lakes near Sudbury, are particularly important for the recovery studies. Emissions of air pollutants in this area have declined by about 90 per cent in recent decades and many aquatic systems are beginning to recover. Here, he takes time to answer The Star’s 10 questions.

Forests are often described as the lungs of the planet, and freshwater as its lifeblood. Sudbury has plenty of both, although the former was missing for quite a while. Can you talk a bit about the relationship between the two and how regreening has benefited our lakes and rivers?

Goldcorp’s stumble: How an industry leader blew it – by Niall McGee (Globe and Mail – January 12, 2019)

January 14, 2019

https://www.theglobeandmail.com/

Peter Jacobs liked what he heard when he attended Goldcorp Inc.’s investment day in January of last year. So the chief investment strategist with Stifel RMG Group, a Washington-based financial firm, started buying shares.

Goldcorp management’s presentation made a strong case that the mining company “was on track to increase production and reserves, lower costs, deleverage the balance sheet and create additional shareholder value,” he said.

A year later, the picture isn’t so pretty. In late October, Goldcorp lost close to a fifth of its market value in a single day after reporting falling production, rising costs and a decline in reserves. Gold grades at its flagship Cerro Negro mine in Argentina fell by more than 30 per cent in the third quarter compared with the previous quarter.

Why First Nations need more leaders like Crystal Smith – by Gary Mason (Globe and Mail – January 12, 2019)

January 14, 2019

https://www.theglobeandmail.com/

“We want our people out of poverty,” Ms. Smith told me. “We are tired of managing poverty.”

When Crystal Smith considers the current pipeline dispute involving the Wet’suwet’en First Nation, she strains to hear the voices of those she believes matter most: the Wet’suwet’en people. It is true. As it so often is in standoffs of this nature.

We hear from politicians, hereditary chiefs, elected First Nations leaders, but we seldom hear from those in the community whose futures are affected most by decisions around resource development.

“They are the forgotten people in this situation,” Ms. Smith, the 39-year-old elected chief councillor of the Haisla First Nation, told me this week. “They are the only ones that can solve this dispute; not governments, not the courts. It’s the people in the community.”

Canadian Mining Hall of Fame inducts first Indigenous woman: Andrew Bell interviews Jon Baird (Business Network News/Bloomberg – January 10, 2019)

January 13, 2019

Jon Baird, chairman of the Canadian Mining Hall of Fame, joins BNN Bloomberg to discuss Kate Carmack’s induction to the organization as the first Indigenous woman. Carmack’s involvement in the Klondike Gold Rush has been left out of history until a recently published novel brought new facts to light.

Brian K. G. Meikle (1932 – 2016) – 2019 Canadian Mining Hall of Fame Inductee

February 1, 2019January 13, 2019

The Canadian Mining Hall of Fame was conceived by the late Maurice R. Brown, former editor and publisher of The Northern Miner, as a way to recognize and honour the legendary mine finders and builders of a great Canadian industry. The Hall was established in 1988. For more information about the extraordinary individuals who have been inducted into the Hall of Fame, please go to their home website: http://mininghalloffame.ca/

The greatest discoveries are transformative, and Brian Meikle is one of only a few modern-era geologists who achieved this pinnacle of success. In the 1960s, he contributed to the discovery and development of the Camflo gold mine in Quebec, and later was part of a talented team that made it a cornerstone of growth for Barrick Gold (formerly American Barrick). In the early 1980s, he recognized the potential of the Mercur gold mine in Utah, which became a key link in the evolution of Barrick.

Meikle’s crowning achievement was the 1986 Goldstrike discovery in Nevada, which grew to approximately 60 million ounces of gold reserves and resources in several deposits. Goldstrike propelled Barrick into the world’s largest gold miner and generated immense wealth that has flowed back to benefit Canadian companies, shareholders and society.

Born in Montreal, Meikle returned to Canada from California as a post-graduate student. He earned an MSc degree (geology) from McGill University in 1955, followed by his PhD in 1959. He was the recipient of McGill’s Logan Gold Medal in 1958, awarded to the graduating student who stands highest in the First Class Honours list in Geology.

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

In 1962, Meikle joined Camflo Mines and was instrumental in discoveries that made the mine and the company. He spent 22 years with Camfl o in diverse roles, including mine manager and vicepresident of operations. In 1984, Peter Munk acquired Camflo for American Barrick and also gained a dream technical team to help realize his dream of creating a major gold producer.

(LtoR) Lisa MacDonald, Executive Director, Prospectors and Developers Association of Canada, presenting the award to Janet Meikle on behalf of Brian Meikle at the Mining Hall of Fame dinner on January 10th. Keith Houghton Photography.

A. M. (Sandy) Laird (Born 1934) – 2019 Canadian Mining Hall of Fame Inductee

February 1, 2019January 13, 2019

During a 39-year career with Placer Dome and predecessor Placer Development, Sandy Laird was directly involved in transforming at least 15 mineral projects into profitable mines. He was a driving force in the company’s project development group, which he headed from 1988 to 1995, and was later responsible for Placer Dome’s global operating and development subsidiaries.

Many of the mines were large, technically complex, and in challenging jurisdictions. Laird earned a reputation for overcoming obstacles and delivering projects to high technical, social and environmental standards. He was a team-builder and a key participant in the growth of Placer into one of the world’s great mining companies before it was acquired by Barrick Gold in 2006.

Born in Invermere, BC, Laird spent several summers as an underground miner and a geologist’s assistant before graduating from the University of British Columbia with a BASc in mining engineering in 1957. He joined Placer in 1960, and worked in various positions at the Craigmont mine near Merritt, BC. Placer was then considered a prime training ground for young engineers, and Laird’s responsibilities increased as he quickly scaled the ranks, moving to Endako as Open Pit Superintendent in 1964.

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

From 1968 to 1971, he was the Resident Manager during construction and start-up of the Marcopper mine in the Philippines. During the next ten years, Laird worked in management positions in Vancouver and San Francisco, and built and managed the McDermitt mine in Nevada.

(LtoR) Dr. Chris Twigge-Molecey, senior advisor, Hatch, presenting the award to Sandy Laird at the Mining Hall of Fame dinner on January 10th. Keith Houghton Photography.

James W. (Jim) Gill (Born 1949) – 2019 Canadian Mining Hall of Fame Inductee

February 1, 2019January 13, 2019

James Gill secured a place in mining history through the exceptional success and staying power of Aur Resources. In 1981, he made a timely decision to launch his own company and begin the hunt for projects with potential to become producing mines. With a PhD in economic geology and early career experience with senior companies, he brought strong technical skills and a disciplined approach to corporate management to his newly incorporated junior.

Aur began life with $250,000 of seed capital, which Gill parlayed into a large land package in Quebec’s Val d’Or mining camp. Aur became a modest-sized gold producer through discoveries and mine acquisitions, but the big breakthrough came in 1989 with the Louvicourt copper-zinc discovery. Gill’s entrepreneurial energy came to the fore as Louvicourt was developed into one of Canada’s premier copper-zinc mines. He continued to develop and acquire mines in Canada and abroad until 2007, when he negotiated a $4.1 billion buyout of Aur by Teck Resources.

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

Mining was part of Gill’s DNA, as his grandfather James E. Gill (a 2003 CMHF inductee) was a successful consulting geologist and an influential professor of economic geology at McGill University. Born in Montreal, James W. Gill is a McGill graduate with a BSc degree (1971) and a MSc degree (1976). He also earned a PhD from Carleton University in Ottawa.