Republic of Mining

Palladium risks tripping up as prices stampede higher – by Jan Harvey(Reuters U.S. – January 16, 2018)

January 17, 2018

https://www.reuters.com/

LONDON, Jan 16 (Reuters) – Palladium, the hottest property in the precious metals deck last year, is tipped for a record performance in 2018 even among bearish forecasters, but the metal could become a victim of its own success.

The prospect of sharply higher prices could well prompt substitution of the metal for cheaper platinum in autocatalysts and higher recycling volume.

The metal has posted a string of deficits in recent years, fuelled by strong gains in autocatalyst demand. That helped send prices above $1,000 an ounce last year for the first time since 2001, and to a record $1,138 this week.

Top BMO mining banker heads to TMAC Resources as new CEO – by Niall McGee (Globe and Mail – January 17, 2018)

January 17, 2018

https://www.theglobeandmail.com/

One of Canada’s best known mining bankers has jumped to a junior gold company. Jason Neal, a former managing director with BMO Nesbitt Burns Inc., is leaving to become chief executive officer of Toronto-based TMAC Resources Inc.

Mr. Neal had been with BMO for 21 years, joining the bank-owned dealer right out of university. In 2010, he was appointed co-head of the global metals and mining group, a position he split with Egizio Bianchini.

“Jason has been key in helping to build the business and the broader franchise, and we thank him for his dedication, leadership and partnership over the years,” Dan Barclay, co-head global investment and corporate banking with BMO, wrote in a statement to The Globe and Mail.

After years of pressure, Trudeau government to introduce new human rights watchdog – by Elizabeth McSheffrey (National Observer – January 16, 2018)

January 17, 2018

https://www.nationalobserver.com/

At long last, the Trudeau government has confirmed: Canada will have a brand new human rights watchdog to oversee Canadian businesses operating abroad.

International Trade Minister François-Philippe Champagne will announce the creation of a ‘Canadian Ombudsperson for Responsible Enterprise’ (CORE) on Wednesday, his department told National Observer through an email invitation. The announcement is expected to address a two-year-old election campaign promise of Justin Trudeau’s Liberals.

Champagne’s office would not reveal the scope and powers of the new watchdog ahead of the announcement, but offered a cryptic hint: “Independence will be achieved. This is a real departure from the past,” said communications director Joe Pickerill in an emailed statement sent on Tuesday.

Top 10 zinc miner Trevali lifts 2018 guidance 140% as zinc powers to 10yr high – by Henry Lazenby (MiningWeekly.com – January 16, 2018)

January 17, 2018

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Canadian zinc miner Trevali Mining expects to produce 140% more zinc this year, following a transformational 2017 that saw it produce a record 177.4-million payable pounds of zinc.

The 2017 output was boosted by the December quarter production from the newly acquired Perkoa mine, in Burkina Faso, and the Rosh Pinah mine, in Namibia, which it acquired from Glencore on August 31. Production for the assets from April 1 to August 31, was treated as part of the working capital adjustments captured in the purchase price calculation.

Trevali, which is based in Vancouver, on Monday reported record unverified fourth-quarter production of 104.8-million payable pounds of zinc, 13.5-million payable pounds of lead and 396 899 oz of payable silver. Preliminary 2017 output was reported at 45.8-million pounds of lead and 1.6-million ounces of payable silver.

Costa Rican presidential candidate blasts ecologists, says he would bring mining back – by Valentina Ruiz Leotaud (Mining.com – January 17, 2018)

January 17, 2018

http://www.mining.com/

Presidential candidate for the conservative National Integration Party (PIN in Spanish), Diego Castro, caused controversy in Costa Rica after he called environmentalist groups “eco-terrorists.”

Castro, who has been compared by local media to Donald Trump and Rodrigo Duterte, as well as accused of right-wing populism, said that if he wins the election, he would not yield to ecologists’ “petty demands” and would allow for the country’s oil and gold reserves to be exploited. “I know who they are, I’ve dealt with them and I’ve stopped them,” he said.

Costa Rica has a moratorium on fossil fuels extraction, which expires in 2021. The legal measure was enacted by former president Laura Chinchilla and ratified by her successor Luis Guillermo Solís. Congress also banned open-pit mining operations.

UPDATE 1-Indonesia completes contract amendments with coal miners – by Wilda Asmarini (Reuters U.S. – January 17, 2018)

January 17, 2018

https://www.reuters.com/

JAKARTA, Jan 17 (Reuters) – Indonesia’s mining ministry on Wednesday signed amended contracts with 18 coal mining companies, including PT Adaro Indonesia, as part of a shift towards a new mining permit system it expects to boost government revenue.

Indonesia, the world’s biggest thermal coal exporter, has now amended the contracts of all of its 68 coal mining companies, marking a victory for the government after earlier resistance from some miners to adopt the new terms.

Indonesia’s 2009 mining law requires companies to transfer from so-called contracts of work, long-term agreements with specific rules including on taxes, to newer special mining permits that generally follow the prevailing law.

The gold cartel’s a scandal in waiting, says GATA’s Bill Murphy – by Greg Klein (Resource Clips – Janaury 16, 2018)

January 17, 2018

http://resourceclips.com/

Don Quixote comes in two guises. Bill Murphy of the Gold Anti-Trust Action Committee associates his group with neither.

Cervantes wrote of a delusional character convinced he was protecting the local peasantry from horrific monsters as the wannabe knight charged on horseback at a windmill. The words “Quixotic” and “tilting at windmills,” however, later came to describe not delusions but the pursuit of a real and noble campaign that’s also a lost cause.

Understandably, Murphy would reject any comparison with the original Quixote. He also rejects the second interpretation because, while firmly believing in GATA’s legitimacy, he sees it as anything but an exercise in futility. Especially now. That’s the message he’ll bring to the Vancouver Resource Investment Conference with his January 22 presentation, The Gold Cartel, Sex Scandals and GATA.

Car makers may need to take a stake in mines: Wood Mackenzie (Mining Journal – January 17, 2018)

January 17, 2018

http://www.mining-journal.com/

Car makers may need to “get out their chequebooks” and take a stake in mines to guarantee materials for their shift to electric vehicles, according to research and consultancy group Wood Mackenzie.

The comments follow automotive giant Ford’s announcement yesterday it would invest US$11 billion by 2022 in electrification, and expand its line-up to 40 EVs globally including 16 full battery EVs by 2022.

Wood Mackenzie director metals markets Gavin Montgomery said Ford planned to use NMC lithium-ion batteries in its EVs and it would be a challenge securing supply of the key raw materials, namely lithium, nickel and cobalt.

Ontario funds health and safety research in Sudbury – by Staff (Sudbury Star – January 18, 2018)

January 17, 2018

http://www.thesudburystar.com/

Laurentian University’s Centre for Research in Occupational Safety and Health will receive more than $300,000 in new research funding from the Ontario government. Sudbury MPP Glenn Thibeault, who is also Ontario’s minister of Energy, made the announcement at the CROSH lab Tuesday.

“Addressing high hazards associated with the operation of mobile equipment was a priority identified in the 2015 Mining Health Safety and Prevention review,” Thibeault said in a release. “Furthermore, addressing indigenous workplace issues will begin a conversation about what is needed to improve occupational health and safety of Indigenous peoples in the workplace.”

In all, Ontario is awarding $310,000 to support innovative research projects and top talent. The funding will assist CROSH researchers as they carry out three projects aimed at addressing mobile equipment hazards, advancing Indigenous occupational health and safety in Northern Ontario, and improving safety for people who work around heavy equipment.

Modern slavery: the true cost of cobalt mining (Hermes Investment Management – January 16, 2018)

January 17, 2018

https://www.hermes-investment.com

Investment capital permeates the global economy, underpinning businesses and supply chains across regions and industries. We believe that investors should not only be aware of the potential for their capital to generate returns but its impact on society and the environment. One such sustainability concern is cobalt mining.

Thousands of artisanal miners dig by hand in the Democratic Republic of Congo (DRC). Children, too. They have no industrial tools, no protective clothing, no hard hats, not even facemasks to shield toxic dust or shoes. They are searching for cobalt, the rare-earth metal powering the mobile revolution.

Cobalt is an essential component of rechargeable lithium-ion batteries. The end product may be in your pocket, on your desk, in your garage, or even in your investment portfolio. It powers most electronic gadgets, including smartphones and laptops, and electric vehicles.

Investors in Gold Mining Bonds Leave Shareholders in the Dust – by Danielle Bochove and Brandon Kochkodin (Bloomberg News – January 16, 2018)

January 16, 2018

https://www.bloomberg.com/

Two years of belt-tightening by the world’s biggest gold miners have allowed bondholders to reap greater rewards for less risk, leaving equity investors — at least comparatively — in the dust.

The collapse of the commodities super cycle left companies struggling to repair debt-ridden balance sheets. But since 2015, the top three North American gold producers — Barrick Gold Corp., Newmont Mining Corp. and Goldcorp Inc. — have all cut debt much more dramatically than companies in the materials sector, where total debt has started to creep higher after falling in the second half of 2016.

One consequence of this is that the longer-term bonds of these senior gold miners are less sensitive to movements in metals prices than are those of the broader materials sector, for both technical and fundamental reasons.

Colombian Emerald Industry: Winds of Change – by Darwin Fortaleché, Andrew Lucas, Jonathan Muyal, Tao Hsu, and Pedro Padua (Gems and Gemology – Fall 2017)

January 16, 2018

https://www.gia.edu/

Colombia is synonymous with fine emerald, and production is believed to date back well over a thousand years. Over the centuries the beautiful verdant gemstone, which emerges from areas that are also a lush green, has been linked to violence and human exploitation. Nevertheless, the desire of the Colombian people to mine for this treasure and strike it rich has endured, with enough dreams coming true to drive their passion.

In recent years, industry changes have accelerated, perhaps more profoundly than ever before. While government ownership and regulation, criminal activity, and violence have affected production over the years, the industry’s greatest opportunities may still be ahead. Multinational companies are investing heavily in Colombian emerald mining, which has led to modernization.

The government’s position on emerald mining has also improved dramatically in this period. Calls for transparency and traceability have led to branding and a revamping of the industry’s image. The loose system of independent miners (figure 1) is seeing efforts at formalization. These landmark changes are occurring at a time when most of the country’s emerald reserves have yet to be mined.

The Problem with Pigeon’s Blood Rubies – by David Federman (Gem Obsessed – May 25, 2016)

January 16, 2018

https://www.gemobsessed.com/

Cynics say that history exists to be ignored. Therefore, they argue, it has no choice but to keep repeating itself. What’s more, they’ll tell you no sphere of human activity is immune from history’s sad, stubborn rule of recurrence–even the jewelry industry.

They have a point. Dire repetition of the past seems hard at work in the world ruby market where expensive stones are increasingly unsalable without gem lab reports. In this case, labs are asked to authenticate a ruby’s color as the most precious hue of all: “pigeon’s-blood red.” No pedigree, no purchase.

This proliferation of reports certifying that stones exhibit “pigeon’s blood red” marks the second great paper chase for lab documents in 35 years. In 1979, American Gemological Laboratories introduced the first-ever colored stone grading reports. Using a 1.0 to 10.0 numerical color rating scale, fine rubies were expected to have grades of 3.5 on that scale to qualify for top color-excellence.

RPT-COLUMN-Price swings the new normal for seaborne iron ore – by Clyde Russell (Reuters U.S. – January 16, 2018)

January 16, 2018

https://www.reuters.com/

LAUNCESTON, Australia, Jan 16 (Reuters) – Imagine for a moment that iron ore was still priced the way it was for decades, in closed-door meetings between miners and steel makers, and then try to visualise what the current level would be.

Whatever number you may have come up with, it’s unlikely to be anything close to the $76.57 a tonne iron ore futures traded in Singapore fetched at the close on Monday.

It’s likely that it would be a far lower figure, given the current seaborne market dynamics of ample, and growing supply, and reasonable, but no longer, surging demand growth.