Archive | British Columbia Mining

Why Teck May Have Most to Gain If Zinc Refiners Are Squeezed – by Danielle Bochove (Bloomberg News – March 14, 2017)

Teck Resources Ltd. may stand to gain the most of any mining company should a supply shortfall in zinc force smelters to slash the fees they charge miners to refine the metal.

The Vancouver-based company mines more zinc than it refines, resulting in a net-“long” position in unrefined zinc that’s the largest in the world, Teck has said, citing Wood Mackenzie data.

Tight zinc supplies have supported prices, and may push processing fees lower as smelters compete for ore. Global output of refined zinc trailed consumption by 286,000 metric tons in 2016, the International Lead and Zinc Study Group said in a report Feb. 15. Zinc has surged about 50 percent in the past year, and posted the best return in the Bloomberg Commodity Index of raw materials. Continue Reading →

Eastern Canada attracting the most mining exploration dollars: S&P report – by Nelson Bennett (Business Vancouver – March 14, 2017)

British Columbia can still brag about how beautiful it is, but in terms of drawing investment in mineral exploration, it may no longer be as attractive as it once was. Recent reports offer the mining and exploration sectors some optimism that a four-year-long bear market has ended, although projections are that exploration spending in 2017 will be flat.

Canada has been leading the way in exploration spending, accounting for 14% of the global budget, according to S&P Global’s recent Worldwide Mining Exploration Trends report. But much of that new spending appears to be going to Ontario, Quebec and mining’s new darling – Saskatchewan. B.C. appears to have fallen out of favour with those holding the exploration purse strings.

Of the investment in exploration in Canada during 2016, 41% was in Ontario and Quebec, with gold exploration accounting for 50%. That is telling, because B.C., not Ontario, is the province with the largest significant gold deposits, according to an SNL Metals & Mining report last year. Continue Reading →

Don’t trust B.C. on Tulsequah Chief Mine – by Chris Miller (Juneau Empire – March 11, 2017)

Chris Miller is a professional photographer, based in Juneau, who focuses on commercial fisheries.

In June 2010, I visited the Tulsequah Chief Mine to see what was being done to halt the acid mine drainage flowing into the Tulsequah River, the largest tributary to the transboundary Taku River, since mine owner Redfern went bankrupt in March 2009.

It was shocking to see the site, which sits right on the banks of the Tulsequah River, about 13 river miles upstream of the Alaska/British Columbia (B.C.) border and 40 miles northeast of Juneau, essentially abandoned and the orange acid mine drainage pooling up and draining into the Tulsequah River.

In 2013, I flew over the site and the highly toxic acid mine drainage was still flowing out of the mine and into the river. Continue Reading →

First Nation-led environmental review panel rejects Ajax mine in Kamloops, B.C. – by Maryse Zeidler (CBC News British Columbia – March 4, 2017)

Controversial $1.3-billion project has residents divided

The Stk’emlúpsemc te Secwépemc Nation has rejected a proposed open-pit copper and gold mine south-west of Kamloops, B.C., after its months-long review of the project. The decision could be an important upset for KGHM International, a subsidiary of Polish company KGHM Polska Miedźthat, which has been trying to push the controversial $1.3-billion project forward since 2006.

According to the company’s website, the Ajax Project is the first in B.C.’s history that was required to prepare a First Nations consultation plan as part of its environmental assessment process.

The panel’s decision was announced Saturday afternoon at a ceremony at the Moccasin Square Gardens in Kamloops, with about 200 people in attendance. The First Nation said it prefers to protect the long-term health of its traditional territory instead of take advantage of short-term economic benefits. Continue Reading →

Teck Bullish on Coal, But Not Enough to Add Production Capacity – by Danielle Bochove and Natalie Obiko Pearson (Bloomberg News – February 27, 2017)

Teck Resources Ltd. is bullish on steelmaking-coal prices, but not enough to add production capacity, said the head of Canada’s largest diversified miner.

“I’m feeling excited,” Teck Chief Executive Officer Don Lindsay said Monday in a Bloomberg TV interview. “In the last 10 days we’ve seen a clear change in direction in coal prices,” with a surge in forward prices for the material that’s used to make steel, he said.

The possibility that China could reinstate coal output restrictions at the end of March and its decision to stop importing coal from North Korea are supportive of prices, Lindsay said at the BMO Capital Markets metals and mining conference in Hollywood, Florida. Continue Reading →

Vancouver mining magnate gives $4 million to museum – by Glen Korstrom (Business Vancouver – February 23, 2017)

Pan American Silver founder Ross Beaty donates to Canadian Museum of Nature

Vancouver mining magnate Ross Beaty is giving the Canadian Museum of Nature its largest ever philanthropic gift: a $4 million investment to enhance the museum’s national research and collections that are focused on species discovery, the Gatineau, Quebec-based museum announced February 23.

Beaty has founded and divested many companies through his 45 years as a geologist and resource entrepreneur but he may be best known for his current role as founder and chairman of Pan American Silver Corp.

He is also the founder and chairman of Alterra Power Corp., which is a mid-sized renewable energy company with solar, wind, hydro and geothermal power operations in B.C., Texas, Indiana and Iceland. His $4 million gift is expected to support three initiatives that are core to what will be known as the museum’s Beaty Centre for Species Discovery. Continue Reading →

Northern Dynasty hits back after scathing short-seller’s report – by Ian McGugan (Globe and Mail – February 1, 2017)

Northern Dynasty Minerals Ltd., the Vancouver miner blindsided by a short-seller’s scathing report, fired back on Friday, saying the polemic is “unsupported speculation” from a “troubled organization” that doesn’t understand mining.

Kerrisdale Capital Management, a New York investment firm, hammered Northern Dynasty’s stock on Tuesday when it published a report arguing the miner is “worthless” because its undeveloped copper and gold resource in Alaska is not commercially viable.

In response, Northern Dynasty said Kerrisdale’s analysis contains numerous errors and misunderstandings. “Their report isn’t worth the paper it’s written on,” Northern Dynasty chief executive Ron Thiessen said in an interview. Continue Reading →

Teck profit climbs on higher coal prices; demand cooling – by Susan Taylor (Reuters U.S. – February 15, 2017)

TORONTO – Canadian miner Teck Resources Ltd reported a better-than-expected quarterly profit on Wednesday, lifted by a surge in the price of coal for steelmaking, but said weaker demand in recent weeks was eroding prices and sales.

Teck, the largest producer of steelmaking, or coking, coal in North America, said customers appear to be drawing down inventories following a fourth-quarter buying binge, sparked by global supply worries that were ultimately unfounded. The Chinese New Year holidays also crimped demand.

Shares of the Vancouver-based company, which also mines copper, gold and silver, were down 4.3 percent at C$31.27 in early trading. Teck forecast steelmaking coal sales of approximately 6 million tonnes in the first quarter, down from 7.3 million tonnes in the fourth quarter. Continue Reading →

Northeast B.C. mining restarts stall because CN Rail hasn’t maintained tracks for shipping coal – by Andrew Kurjata (CBC News British Columbia – February 06, 2017)

Tumbler Ridge mayor says community is being ‘held hostage’ by CN

Coal mines are restarting in Tumbler Ridge, but companies can’t ship to market because train lines maintained by CN Rail have fallen into disrepair. Mayor Don McPherson says it appears the railway stopped looking after the track sometime in 2015 after the community’s last coal mine shut down.

“I guess the board of directors for CN Rail decided that they didn’t need to maintain the rail line,” he said. “It came as a surprise to me.” The discovery comes as there is renewed interest in coal from the northeast B.C. community.

Last year, Conuma Coal purchased three of the mines and announced plans to rehire many of the 700 people who lost their jobs two years ago.The Brûlé mine, which ships coal by truck to a nearby rail facility, is already operational. Continue Reading →

First Nations monitor mining case – by Monica Lamb-Yorski (Williams Lake Tribune – February 2, 2017)

A van load of chiefs and elders from two Tsilhqot’in communities are in Vancouver to attend a BC Supreme Court civil claim concerning the Taseko Mines Ltd.’s New Prosperity Mine project.

In its lawsuit, Taseko claims the Government of Canada and its agents failed to meet the legal duties owed to Taseko and in doing so they caused and continue to cause damages, expenses and loss to the company.

When the company filed the civil claim a year ago, Taseko’s president and CEO Russell Hallbaurer said given the conduct of the Government of Canada and its agents, Taseko had no other choice but to defend the interests of its shareholders and to protect their assets. Continue Reading →

Biggest problem for mining is public trust: Weaver – by Nelson Bennett (Business Vancouver – January 31, 2017)

Native group stakes mineral claim on mines minister’s land, but can they go drilling?

Last week, in an effort to show how easy it is for someone to stake a mineral claim in B.C., Bev Sellars, chairwoman of B.C.’s First Nations Women Advocating Responsible Mining, filed a mineral claim on land owned by Energy and Mines Minister Bill Bennett.

It was timed for last week’s Association for Mineral Exploration BC’s Roundup 2017 conference. Sellars said it cost only $104.89 to stake the claim, and it was done without Bennett’s knowledge.

Her point was to highlight that mineral claims are often filed on land claimed by First Nations without their knowledge. But there’s a reason for that, Bennett said during a January 25 panel discussion on government policies that included BC Green Party Leader Andrew Weaver and NDP energy and mines critic Doug Donaldson. Continue Reading →

‘One we’ll talk about for many years’: Centerra-Thompson Creek deal was string of wins – by Sunny Freeman (Financial Post – January 30, 2017)

Disgruntled bondholders, a royalty holder to appease, a hostile foreign shareholder: those are some of the issues that made Centerra Gold’s US$1.1-billion takeover of Thompson Creek Metals one of 2016’s most challenging deals.

“This is one that we’ll talk about for many years,” said Jason Neal, co-head of global mining and metals at BMO Capital Markets, the bank that acted as both advisor to the seller — Thompson Creek — and lead financier for the buyer — Centerra.

“It’s highly atypical for the sell side advisor to be top left for the buyer financing — I can’t think of another example in mining.” The deal may have been a particular score for BMO, but all of the bankers involved in getting it done believe it generated a unique string of wins for several parties concerned. Continue Reading →

Underfunding for mine cleanups rises to more than $1.27 billion – by Gordon Hoekstra (Vancouver Sun – January 27, 2017)

Underfunding for the clean-up of mines inched up to $1.273 billion in 2015, upping the level of financial risk to taxpayers above what it was the year before. The estimate is up from $1.263 billion in 2014 and may continue to increase, according to B.C. Energy and Mines Minister Bill Bennett.

B.C. law requires mining companies to post security, for example a bond, to cover the costs of reclamation and any continuing treatment of tailings pond water, which contains mine waste, when a mine closes. In a report last year, B.C. auditor general Carol Bellringer said the shortfall meant taxpayers could be on the hook if a company couldn’t pay for cleaning up a closed mine.

Bellringer recommended mine-by-mine details be reported and that government “safeguard” taxpayers by ensuring the estimate of the reclamation liability is accurate and that security demanded by government is sufficient to cover potential costs. Continue Reading →

B.C.’s mining exploration sector has brighter outlook for 2017 – by Derrick Penner (Vancouver Sun – January 23, 2017)

B.C.’s major mining companies arrived at the Association for Mineral Exploration of B.C.’s annual convention talking about a more immediate need to reinvest in finding new mineral deposits, which comes as a relief to mining exploration companies at the event.

“It’s way more hopeful,” said Gavin Dirom, CEO of AME B.C., about the atmosphere at the event, which kicked off over the weekend in Vancouver. And because commodity markets have begun to recover, leaving mining companies bigger profits to consider reinvesting in finding new mines, that hope “is way more real,” Dirom added.

Exploration companies, the core of Vancouver’s mining industry, were the first to suffer the squeeze of a five-year downturn in mining that saw major companies, such as Teck Resources Ltd. and Goldcorp Inc., cut costs, slash capital spending and jettison joint ventures. Continue Reading →

Mining for Miracles Launches 2017 Diamond Draw and Completes $3 Million Commitment to CAUSES Research Clinic for BC Children’s Hospital

2016 Diamond Draw winner Pat Mitchell (centre right) with from left to right, Chad Pederson, Mining for Miracles Co-Chair Jeff Hanman, C3 Alliance Corp CEO Dan Jepson and Costen Catbalue Goldsmith + Design Owner and President Andrew Costen.

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Jan. 24, 2017) – Mining for Miracles kicked off its 2017 Diamond Draw at the Mineral Exploration Roundup Conference today. Mining for Miracles is the BC mining community’s longstanding fundraising campaign for BC Children’s Hospital Foundation.

The Diamond Draw package, valued at over $16,000, includes a CANADAMARK Cushion cut 1.01 carat diamond in a gold designer setting, donated respectively by C3 Alliance Corp., Teck and Costen Catbalue Goldsmith + Design.

“Since 1988, BC’s mining industry has raised more than $26 million for the children and families who visit BC Children’s Hospital through Diamond Draw and other initiatives,” said Jeff Hanman, 2017 Co-Chair, Mining for Miracles. “100 per cent of the funds raised by Mining for Miracles go directly to support areas of need at the hospital,” said Joanne Klein, Co-Chair, Mining for Miracles. Continue Reading →