June 15, 2011 – Republic of Mining

NEWS RELEASE: Rare earth supply crunch a wakeup call for mining companies everywhere: Ernst & Young

June 15, 2011

Click here for: Technology minerals: The rare earths race is on!

Demand for specific minerals set to jump more than 60% in the next five years

(Montreal, 11 May, 2011) Soaring demand for rare earth metals – used in the production of everything from smart phones to computer hardware to energy-efficient lights – is generating new but risky opportunities for mining companies in Canada and around the world, Ernst & Young says.

“Rare earth metals are feeding the production of high-tech and green products. Demand is expected to jump more than 60% in the next five years alone,” says Zahid Fazal, partner and leader of Ernst & Young’s mining practice in Quebec. “The problem is China accounts for virtually all rare earths production, and their export restrictions are driving prices higher. What’s more, Chinese domestic consumption of rare earth materials is predicted to outpace supply between 2012 and 2015.”

Fazal says the situation represents a unique opportunity for Canadian and other companies to rebuild the supply chain outside of China. While this could help prevent a supply shortage and keep a lid on soaring prices, these projects are higher risk and that brings additional challenges into the mix.

Barrick Gold Corporate History (1980-2000) – International Directory of Company Histories

September 29, 2011June 15, 2011

For a large selection of corporate histories click: International Directory of Company Histories

Company History:

Barrick Gold Corporation is an anomaly in the gold exploration and mining industry; it has little debt and low-cost production, yet high yield and even higher sales. Though Barrick began as a less than spectacular petroleum and oil company in Canada founded by Peter Munk and David Gilmour, they turned to prospecting in 1983 and became the quintessential success story. While gold mining operations may spend decades searching for the motherlode, Barrick began by acquiring established mines and bringing them to new levels of productivity and profit.

On its Goldstrike Property on the Carlin Trend in Nevada, Barrick has established the Betze-Post and Meikle Mines: the former is the richest and most productive mine in the United States while the latter is the largest underground mine in North America. Ongoing exploration and drilling continue in the region, as well as on properties in Canada, South America, and Africa, with projections to reach more than five million ounces of gold production by 2003. Since Barrick’s mining and processing facilities are among the most technologically advanced in the world, this is all but a fait accompli.

Asbestos back in the spotlight – by Fe de Leon and Sarah Miller (Toronto Star – June 14, 2011)

June 15, 2011

The Toronto Star, which has the largest broadsheet circulation in Canada, has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

Fe de Leon and Sarah Miller are researchers with the Canadian Environmental Law Association.

Over the next few weeks, Canada has two important opportunities to reduce its contributions to the mining and export of chrysotile asbestos.

First, Canada’s international reputation will again be under the microscope when countries convene in Geneva June 20 to consider adding chrysotile asbestos to Annex III of the Rotterdam Convention. The convention was designed to facilitate information exchange on hazardous chemicals among countries. Canada’s position at these meetings is being monitored closely because it is one of a few remaining countries that continue to mine and export chrysotile.

Second, efforts by investors to reopen the Jeffrey mine in the town of Asbestos, Que., are in the works. Chrysotile from the Jeffrey mine is expected to be exported to numerous countries, mainly developing countries. Investors are relying on this global demand as they wait for confirmation by July 1 to determine if they are able to secure their investments. With secured investments, the companies expect to save 350 jobs at the mine.

Surging costs delay Sherritt [Madagascar Ambatovy nickel] project – by Brenda Bouw (Globe and Mail – June 15, 2011)

June 15, 2011

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media. Brenda Bouw is the Globe’s mining reporter.

Sherritt International Corp. is the latest in growing list of mining companies to report double-digit cost increases and project delays resulting from surging prices for energy and raw materials.

Toronto-based Sherritt said the total cost of its 40-per-cent owned Ambatovy nickel-cobalt project in Madagascar is expected to rise 16 per cent to $5.5-billion (U.S.). Production, set to begin this summer, is now delayed until the first quarter of next year.

“We find this embarrassing and painful,” Sherritt chief executive officer Ian Delaney told investors on a conference call Tuesday. Sherritt’s stock fell 6 per cent on the Toronto Stock Exchange on Tuesday, its lowest level since last summer.

Rising costs are becoming a huge hurdle for miners as they rush to boost production and capitalize on global demand and metal prices while they remain strong.

Gold bug Rob McEwen sees silver lining in proposed mining merger – by Lisa Wright (Toronto Star – June 15, 2011)

June 15, 2011

Lisa Wright is a business reporter with the Toronto Star, which has the largest circulation in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

Gold investment maverick Rob McEwen sees a sterling future for silver with the proposed merger of his firms US Gold Corp. and Minera Andes Inc. that would form a mid-sized player amid a red hot metals market. The combination “would be transformative, creating a dynamic, new precious metal company,” said McEwen, who is chief executive of both companies.

The deal is valued at $608 million. His personal investment in the combined firm, which will be called McEwen Mining Inc., would be about $345 million and catapult his junior explorers to mid-tier status with a market cap of $1.4 billion.

The announcement comes amid a soaring price environment for precious metals. Gold broke a new record last month of $1,541 (U.S.) an ounce and silver climbed to 30-year highs of $48.70 (U.S.) in April before a recent correction that shaved 20 per cent off the silver price.