(Bloomberg) — With gold prices at a record high, mining companies are back hunting for deals while trying to reassure investors that they’ve learned from past mistakes of overspending.
There has been a flurry of activity in recent months, with Gold Fields Ltd.’s $1.6 billion purchase of Osisko Mining Inc. and AngloGold Ashanti Ltd.’s $2.5 billion acquisition of Centamin Plc. That has sparked speculation over what could be next, with signs that more companies are working to ink deals.
LONDON, Sept 17 (Reuters) – Russian president Vladimir Putin’s suggestion that Moscow should consider capping exports of nickel in retaliation for Western sanctions has been greeted with a collective shrug by the market.
The London Metal Exchange three-month price has managed a weak bounce through the $16,000-per metric ton level but the momentum is already fading. This is a far cry from February 2022, when Russia first invaded Ukraine. Fears that metal from Russian giant Norilsk Nickel might have sanctions imposed generated a monster rally in 2022 that morphed into a full-blown meltdown of the LME nickel market.
Australia’s Winsome Resources said a scoping study for its $259 million Adina lithium project in Quebec, Canada, has reinforced the asset’s potential as a capital-efficient mine with a 17-year productive life.
The company inked a deal in April to acquire the Renard diamond mine and plant in northern Quebec with the goal of repurposing the existing infrastructure for processing ore from Adina. The lithium explorer and developer bought itself in August an extra three months to decide whether it would buy the past-producing mine, and today’s announcement suggests it would move in that direction.
Biden officials point to the Eagle mine as proof that mining critical minerals in the U.S. can gain public support while avoiding pollution and trampling Indigenous rights. Not everyone is convinced.
MICHIGAMME TOWNSHIP, Michigan — In the sun-drenched forests of Michigan’s Upper Peninsula stands the black, gaping mouth of the nation’s only operating nickel mine.
Hundreds of feet below in the darkness, heavy machinery blasts, scrapes and prepares to haul up to the surface rock rich with tiny flecks of high-grade nickel and copper formed more than 1 billion years ago.
(Bloomberg) — Nuclear scientists eager to add value to Argentina’s lithium bounty are being stymied by the country’s notorious economic problems.
For decades, the nation’s world-renowned atomic researchers have toiled on projects in Buenos Aires and Bariloche in Patagonia. Now, with Argentina emerging as the fastest-growing producer of lithium needed for the global shift to electric energy, they’re working on innovations to convert the battery metal into something scarcer than gold: lithium-6 isotopes that have key nuclear applications.
https://www.cbc.ca/news/canada/north/
Lawyers representing Kaska Nation maintained Thursday that proper consultation did not happen
A major mining project in southeast Yukon, and whether Kaska Nation was properly consulted on it, was back in court last week — this time, in front of the Yukon Court of Appeal.
Lawyers representing Kaska Nation maintained Thursday that proper consultation did not happen on BMC Minerals’ Kudz Ze Kayah project and that a ruling from a lower court that found otherwise should be tossed. Lawyers for the attorney general of Canada, the Yukon government and the company, meanwhile, argued Friday that Kaska Nation’s appeal was without merit.
(Kitco News) – During periods of easy money, risk assets like stocks tend to outperform as investors chase gains, but during times of economic strife, commodities become the safe haven for many investors. According to one analyst, now is the time to prepare for a commodity supercycle.
“The last [two] times we saw these valuations for commodities was 1971 and 2000,” tweeted MN Consultancy founder Michaël van de Poppe. “Commodities & #Crypto are extremely undervalued and it’s likely that commodities go into a 10-year long bull market.”
A South African company is reported to be the most probable bidder for shares in New Caledonia’s Prony Resources. As part of an already advanced takeover of the ailing southern plant of Prony Resources, the most probable bidder is reported to be South African group Sibaneye-Stillwater, local media reported on Monday.
Just like the other two major mining plants and smelters in New Caledonia, Prony Resources is facing acute hardships due to the emergence of Indonesia as a major player on the world market, compounded with New Caledonia’s violent unrest that broke out in May.
https://www.thesudburystar.com/
Laurentian geology graduates from 1974 gather in Wahnapitae to share memories and renew friendships
You may have attended a high school reunion; the reasons may be complex and often include renewing lost friendships or just bringing back youthful memories. For some, it is a reoccurring annual, five-year or even decade theme on the map of life.
What if it was your university graduating class? The program that set you off on a career and shaped your life? It was a cool wet day off the backroads of Wahnapitae, but it didn’t quench the spirit of the event. Dwayne Car, who hosted the get-together, had set up a tent and fire pit to chase away the chill.
https://www.cbc.ca/news/canada/north/
New rules around consultation and authorization ‘a huge win for Cree Nation,’ says grand chief
Cree officials are welcoming changes to the way mining exploration happens in Quebec. Eleven per cent of the province, much of it in northern Quebec Cree territory and Nunavik, is currently under an active claim, according to provincial officials.
According to media reports, in 2022, there were 400 mining exploration projects within Eeyou Istchee, the traditional lands of the James Bay Cree. In the past, exploration was a largely unregulated corner of the mining world in Quebec.
Sept 13 (Reuters) – The Biden administration on Friday locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles, to boost protections for strategic industries from China’s state-driven industrial practices.
The U.S. Trade Representative’s office said that many of the tariffs, including a 100% duty on Chinese EVs, 50% on solar cells and 25% on steel, aluminum, EV batteries and key minerals, would take effect on Sept. 27.
https://www.theglobeandmail.com/
A wave of takeovers is poised to reshape the lithium mining industry, with global giant Rio Tinto Ltd. projected to become the dominant producer of an essential metal in a decarbonized economy.
With analysts predicting acquisitions are coming, how is the Canadian government that’s previously pledged to build a domestic critical mineral industry to going to react when foreign buyers begin circling a handful of domestic lithium producers? Based on deals done so far, Ottawa will sign off on any acquisition that doesn’t involve a China-based buyer.
Go to Charles Dube’s website for a well documented historical account of the Steep Rock Lake Mine: https://tinyurl.com/af8f93nj
Bill tells us about a not-so-well-known, long-term environmental solution in the making
A recent back road trip led me to discover the current progress of the provincial government in trying to mitigate an inherited contaminated area. If ignored, it would become a long-term catastrophe. It’s called a lake, Steep Rock Lake, but it isn’t, really.It now looks a little like the setting of a Waubgeshig Rice dystopian novel or Last of Us the raging HBO hit.
There are cautionary and explanatory signs and fenced off areas everywhere. Over time the former asphalt access roads are now well pitted and cracked with emerging plants. The same with the railway over/underpasses. The original galvanized guard rails are coated with a tinge of red iron ore dust.
Australia’s Paladin Energy (ASX: PDN) has hit a roadblock in its proposed acquisition of Canada’s Fission Uranium (TSX: FCU) after a Chinese investor in the takeover target opposed the tie-up.
The Western Australia-based miner revealed on Monday that CGN Mining Company, a subsidiary of China General Nuclear Power with a 11.26% stake in Fission, is opposing the tie-up. Paladin moved in June to buy the Canadian miner for C$1.14 billion ($845 million), contingent on at least two-thirds of Fission shareholders voting in favour of the transaction by Aug. 26.
(Kitco News) – Gold is set to benefit from several tailwinds in Q4, including this week’s expected Fed rate cut, continued central bank purchases, and a rebound in Chinese demand, while silver prices will gain on standout Indian demand and a weaker USD, according to precious metals analysts at Heraeus.
In their latest precious metals report, Heraeus noted that the kickoff of the Fed’s rate-cutting cycle on Wednesday should be good for gold, even if it’s only a 25 bps cut.
