Republic of Mining

Five-year junior mining drought is over – by Nelson Bennett (Business Vancouver – July 18, 2017)

July 19, 2017

https://www.biv.com/

But investment flowing back into junior exploration mining sector might bypass B.C. because of new government

Initial public offerings, mergers and acquisitions, major financing deals – the signs are abundant that a five-year drought for the junior mining sector might be truly over. And while B.C. hosts the majority of Canada’s junior exploration companies – not to mention commodities, like copper and gold, that they are prospecting for – at least one mining consultant fears that little of the investment now flowing will be spent on exploration in B.C.

The turnaround for the mining sector started about a year ago with a rebound in metal prices. Mining majors are typically the first to benefit from higher metal and mineral prices and renewed investor confidence. Investment in the higher-risk early-stage exploration sector always lags.

But money is again flowing to juniors with projects at the late-exploration or early-development stage, according to several reports and indicators.According to PwC, there were five junior mining IPOs on the TSX Venture Exchange in 2017’s first half compared with none in 2016’s first half. PwC estimates that $39.2 million was raised on the venture exchange in the first half of this year.

Potash call marks fork in the road for BHP’s Ken MacKenzie – by Stephen Bartholomeusz (The Australian – July 18, 2017)

July 19, 2017

http://www.theaustralian.com.au/

It could be regarded as a deliberate provocation, a statement of defiance and intent. The latest addition to BHP Billiton’s “Prospects” blog will, intentionally or not, irritate the group’s activist stalker, Elliott Management and its supporters. In the blog item, BHP’s principal potash analyst, Dr Paul Burnside, makes the demand-side case for potash, promising an analysis of the supply side in a future entry.

The issue is somewhat controversial in the context of BHP and Elliott’s attempt to force its own agenda on the company. BHP has, of course, already committed $US3.8 billion to its Jansen potash project in Canada and earlier this year foreshadowed a decision as early as next year on whether to proceed with the first phase of a project that could cost a further $US8bn to $US10bn.

Despite the dramatic reductions in its capital investment once the commodity boom ended, BHP and its chief executive Andrew Mackenzie have remained enthusiastic about the long-term prospect of entering the potash market and adding a “fifth pillar” to BHP’s portfolio of iron ore, coal, copper and petroleum.

BHP-Vale JV Excused From Paying $6.3 Billion Legal Guarantee – by R.T. Watson (Bloomberg News – July 19, 2017)

July 19, 2017

https://www.bloombergquint.com/

(Bloomberg) — A Brazilian judge denied a request by prosecutors for companies and individuals facing criminal charges related to a dam spill to pay financial guarantees, according to court documents obtained by Bloomberg.

The stalled Samarco Mineracao SA joint venture and its owners BHP Billiton Ltd. and Vale SA won’t have to pay a 20 billion-real ($6.3 billion) guarantee while the case is being tried and final damages calculated, the documents show. The judge also ruled that the individuals aren’t required to pay any financial guarantees or be subjected to travel restrictions such as passport seizure.

Federal prosecutors filed criminal charges including homicide against 21 people linked to the operators and owners of the iron-ore mine, while also accusing defendants of a series of environmental crimes. A November 2015 tailings dam collapse killed as many as 19 people and polluted waterways in two states. Among the accused individuals are Vale’s head of iron ore, Peter Poppinga, and Samarco chief executive officer at the time of the incident, Ricardo Vescovi. The case could go before a jury.

Canadian Mining: Nothing To Hide – by Ashley Renders (Vice News Canada – July 18, 2017)

July 19, 2017

https://news.vice.com/

Thanks to a new rule, the Canadian mining industry has become a lot more transparent

The amount of money that companies like Barrick Gold and ExxonMobil actually give to governments of countries that they extract resources from is now publicly available online thanks to a Canadian bill that was passed back in 2015.

This is significant because that information cannot be gleaned directly from the annual reports of publicly-listed companies, making it difficult to determine if resource companies were actually paying their fair share in taxes and royalties to governments.

The Extractive Sector Transparency Measures Act (ESTMA) was brought into force on June 1, 2015, and required that all oil, gas and mining companies listed on Canadian stock exchanges disclose payments to governments of $100,000 CAD and over on a project-by-project basis.

Gold shops: coming to a high street near you? – by Jon Yeomans (The Telegraph – July 16, 2017)

July 19, 2017

http://www.telegraph.co.uk/

At Baird & Co’s gold refinery, boss Nick Hammond is sorting through a tray of scrap jewellery. Bracelets, necklaces, a horse pendant (called a “banger” because it is hollow, and could explode under high heat) and a military medallion dated 1895 are all destined for the furnace. “It’s sad, but we can’t hold them back – they all go in the pot,” Hammond says, pointing out that Baird would have paid around £30,000 to pawn brokers and other dealers for the contents of the tray.

Baird’s high-security factory, on an industrial estate in East London, is home to the UK’s only gold refinery. The family-held business, which celebrates its 50th anniversary this year, is a supplier of gold bars to the Royal Mint and one of the UK’s biggest producers of gold wedding bands.

It has just opened a showroom and vault in the Hatton Garden area of London, hoping to lure new customers into the world of gold. “If you want long-term exposure to gold, you have to make the case for physical gold,” says Hammond. The yellow metal is famed for its status as a safe haven and a store of wealth in times of uncertainty, but is there really a growing demand for physical gold? And how are companies exploiting the opportunity?

NEWS RELEASE: SABINA GOLD & SILVER RECEIVES POSITIVE RECOMMENDATION FROM THE NUNAVUT IMPACT REVIEW BOARD FOR CONTINUED DEVELOPMENT OF BACK RIVER GOLD PROJECT, CANADA

July 19, 2017

Vancouver, BC – Sabina Gold & Silver Corp (SBB.T), (“Sabina” or the “Company”) is pleased to announce that it has received a copy of the Second Final Hearing Report (the “Report”) from the Nunavut Impact Review Board (the “NIRB”). In the report, the NIRB has recommended to the Minister of Indigenous and Northern Affairs Canada (“INAC”) that development of the Company’s 100%-owned Back River Gold Project (“Back River” or the “Project”) in Nunavut, Canada, should proceed to the licensing phase.

This positive recommendation by NIRB concludes a five year comprehensive NIRB review and public hearing processes involving Inuit, the Kitikmeot Inuit Association (“KIA”), Federal and Territorial governments, and community and other Northern representatives. This recommendation follows a direction of the Minister to the NIRB in January 2017 to reconsider the project after an initial negative recommendation from the NIRB in July 2016.

In February this year, a Final Environmental Impact Statement Addendum was submitted to the NIRB focusing on the areas that were identified as outstanding concerns in the First Final Hearing Report. The review of this addendum by all parties culminated in a second final technical and public hearing that took place in Cambridge Bay during May 27th to June 3, 2017.

A forgotten community: The little town in Niger keeping the lights on in France – by Lucas Destrijcker and Mahadi Diouara (African Arguments – July 18 2017)

July 19, 2017

Welcome to Arlit, the impoverished uranium capital of Africa.

From Niamey, the capital of the landlocked West African nation of Niger, we call ahead to a desert town in the remote north of the country. “Journalists? On their way here? It’s been a while”, we hear down the phone from our contact. “We welcome you with open arms, but only on the pretence that you’re visiting to interview migrants on their way to Algeria. If they find out you’re poking your nose in their business, it’s a lost cause.”

That same evening, the public bus jolts as it sets off. Destination: the gates of the Sahara. The stuffy subtropical heat gradually fades into scorching drought and plains of seemingly endless ochre sands. About two days later, we pass through a gateway with “Arlit” written on it in rusty letters.

The town of about 120,000 inhabitants is located in one of the Sahel’s most remote regions, not far from the Algerian border. The surrounding area is known to be the operating territory of numerous bandits and armed groups, including Islamist militants. It is like an island in the middle of the desert, an artificial oasis with only one raison d’être: uranium.

[Australia] Top Mining Nation Readying Fresh Investment Wave as Prices Rally – by Matthew Burgess and David Stringer (Bloomberg News – July 17, 2017)

July 18, 2017

https://www.bloombergquint.com/

(Bloomberg) — Mining companies in Australia, the world’s biggest exporter of iron ore and coal, are poised to approve fresh investments in projects, driven by rallying commodity prices and the need to replace depleting deposits, according to global equipment supply giant Komatsu Ltd.

“They’re looking at new fleets of equipment,“ Sean Taylor, chief executive officer of Komatsu’s Australian unit, said in an interview in Sydney. The miners have to reinvest in output “because otherwise they can’t maintain production at the levels that they’re at,” he said.

Australia’s commodity exports are set to hold above A$200 billion ($155 billion) over the next two fiscal years and there’s a pipeline of about A$25 billion of projects approved for construction, according to government estimates. The Bloomberg Commodity Index has advanced more than 12 percent since slumping to a quarter-century low in January 2016.

Dominion Diamond accepts sweetened $1.2-billion bid – by Josh O’Kane (Globe and Mail – July 18, 2017)

July 18, 2017

https://www.theglobeandmail.com/

Dominion Diamond Corp., the world’s third-largest producer of rough diamonds by value, announced Monday that it would be acquired by The Washington Cos. for $1.2-billion (U.S.), four months after a previous unsolicited $1.1-billion offer from the privately held American company prompted Dominion to put itself up for sale.

If given shareholder and regulatory approvals, the deal would see Washington buy up Dominion’s shares for $14.25 a piece – a 44-per-cent premium to the $9.92 share price on March 17 of this year, versus its original $13.50-per-share offer.

In early-afternoon trading, Dominion’s New York-listed shares were up 4.4 per cent, at $14.07. Toronto-listed shares were up 5.4 per cent.

Legalising North East India’s mica mines – by Heidi Vella (Mining Technology – July 17, 2017)

July 18, 2017

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

Around 20,000 children work in North East India’s highly dangerous and illegal mica mines. The Indian Government has pledged to legalise these mines in order to protect a vital source of income for poverty stricken families, raise safety standards and put an end to child labour, which has already claimed many young lives; but will this strategy work?

It makes cars sparkle and eyeshadow shimmer. Yet, despite the glamourous hue it produces, how mica is collected is far from seductive. In 2015 and 2016, separate investigations by The Guardian and Thompson Reuters exposed terrible working conditions and child labour connected with the major mica producing states Bihar, Jharkhand, Rajasthan and Andhra Pradesh in North East India, where a quarter of the world’s mica is produced.

The Reuters investigation alone found that seven children had been killed in these mines within two months; some of their deaths covered up by the illegal mine operators which paid families for their silence. Further deaths have been recorded by the India-based NGO Save Childhood Movement.

Glencore plans spin-off of mining royalties business – by Neil Hume (Financial Times – July 17, 2017)

July 18, 2017

https://www.ft.com/

Glencore is preparing to spin-off its portfolio of mining royalties into a new company later this year in an attempt to attract outside investors with an eye on an eventual stock market listing, according to people with knowledge of the discussions.

Glencore plans to seed the new company with royalty agreements worth in excess of $300m, while looking to attract a strategic partner to fund further deals. The mining and trading house wants to provide more financing to junior miners in return for a slice of their revenue and exclusive marketing deals.

The plan is the latest sign that billionaire Ivan Glasenberg, chief executive of the Swiss-based company, is pursuing growth after two years in which the commodity downturn forced it to focus on paying down debts and repairing its balance sheet.

Exclusive: China eyes merger of metals giants Minmetals and China National Gold – sources – by Kane Wu and Julie Zhu (Reuters U.S. – July 18, 2017)

July 18, 2017

https://www.reuters.com/

HONG KONG (Reuters) – China is considering a merger between China Minmetals Corp, one of the country’s largest miners and metals traders, and China National Gold Group, as Beijing pushes consolidation of its state-run firms, sources with knowledge of the matter said.

Three sources with knowledge of the discussions said the two state-owned firms have been in negotiations for months, though any agreement could still be some time away.

The talks between two of China’s largest metals producers are part of Beijing’s broad efforts to shake up its indebted and inefficient state sector, streamline the number of companies and create globally competitive firms in sectors including power generation, shipping and metals.

YESAB says Goldcorp failed to consult First Nations, halts Coffee mine assessment – by Lori Garrison (Yukon News – July 14, 2017)

July 18, 2017

‘They just came in and completely failed to read the local landscape’

The Yukon Environmental Socio-Economic Assessment Board has discontinued its assessment of the proposed Coffee gold mine on the grounds that Goldcorp did not adequately consult with the affected First Nations governments.

“Having carefully reviewed the information in Goldcorp’s proposal as well as the comments provided by the Tr’ondëk Hwëch’in and Selkirk First Nation, the executive committee is of the opinion that Goldcorp has not met its obligation to consult in relation to those First Nations and the First Nation of Na-Cho Nyak Dun,” YESAB’s executive committee wrote in its report, issued July 12.

“The only aspect we’re looking at is the consultation record…. They (Goldcorp) are missing pieces of it,” said Rob Yeoman, a spokesperson for YESAB. Goldcorp appears to have tried to rush through the consultation process in an effort to meet what mine general manager Buddy Crill referred to as an “aggressive” March 31 assessment deadline.

Kamloops city council votes against controversial Ajax copper-gold mine – by Wendy Stueck (Globe and Mail – July 18, 2017)

July 18, 2017

https://www.theglobeandmail.com/

VANCOUVER — Local politicians in Kamloops, B.C., voted on Monday to oppose a controversial copper-gold mine that would operate just outside of the city limits.

The city doesn’t have the authority to stop the Ajax mine, owned by Poland-based KGHM, but hopes federal and provincial governments will take Kamloops’s position into account, the city’s acting mayor, Arjun Singh, said. “We’d like, certainly, to be heard in what we are saying,” Mr. Singh said.

“We realize we are not the final decision makers – but I think the work that we have all done to assess [the project] leads at least the majority of us to think it’s not a good idea for the community.” The proposed mine, which is also opposed by First Nations in the region, has been a divisive issue for the city.

Bolivia’s Evo Morales plans lithium mining offensive – by Srinivas Mazumdaru (Deutsche Welle – July 17, 2017)

July 18, 2017

http://www.dw.com/en/

The Bolivian government aims to pump massive investments to expand the country’s production of lithium, a metal needed for the batteries that power everything from smartphones and laptops to hybrid and electric cars.

In a future battery-powered world, lithium may replace oil and emerge as one of the most important commodities on earth. That prospect is driving Bolivia, which is considered to have the largest reserves of the metal, to keep lithium under strict state control.

Bolivian President Evo Morales sees a prosperous future for his currently impoverished South American nation, pinning his hopes on the rapid rise in the global price of this valuable resource. “We will develop a huge lithium industry, over $800 million have already been made available,” Morales told the German DPA news agency.