Archive | Canada Mining

NEWS RELEASE: Canadian Mining Companies Invest in Building a Sustainable Future

Top priorities for Canadian Mining companies include sustainability, capital allocation, and deals

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TORONTO, Dec. 7, 2016 /CNW/ – Mining companies are in a stronger position now than they were at the beginning of the year, according to PwC Canada’s new mining report Beyond the downturn: A focus on financial discipline and innovation in Canadian mining.

With fluctuating commodity prices, the top priorities for Canadian mining companies in 2017 are capital allocation, strategic deal making, and employing new technology and innovations in support of creating a more sustainable future.

According to the report, a growing commitment to sustainability and engaging in strong and meaningful community relations is key to redefining the identity of an industry in the midst of transformation as it strives towards a more certain future. Continue Reading →

Why Canada’s resource wealth should fuel the new economy – by Scott VAughan and Robert Smith (Globe and Mail – December 7, 2016)

The federal government’s decision to approve two pipelines last week raises a number of issues, but there is one we haven’t really heard in the debate so far: How should revenues earned from resource extraction be used? For us, this is a central question and one that touches directly on Canada’s well-being.

We believe a greater portion of resource revenues needs to be re-invested in creating the new economy Canada will need going forward. There are several ways we could do this, all of them well-tested.

Canada could start by following Norway’s lead and using a portion of resource revenues to create national or provincial wealth funds. Such funds could then be used to invest in the innovative Canadian companies that will create the jobs of the future. Norway’s wealth fund is worth about $860-billion (U.S.). That money will come in handy when its North Sea resources are depleted. Continue Reading →

Environment group takes De Beers Canada to court over mercury – by Nicole Mordant (Reuters Canada Reuters – December 6, 2016)

(Reuters) – An environmental group said on Tuesday it filed a lawsuit against De Beers Canada, accusing the diamond producer of failing to report toxic levels of mercury and methylmercury at its Victor diamond mine in northern Ontario.

The Wildlands League alleged that De Beers Canada failed to report mercury levels from five of nine surface water monitoring stations for the creeks next to its open pit mine between 2009 and 2016.

This was an offense under the Ontario Water Resources Act, the group said in a statement. It said it had alerted the province of Ontario and De Beers Canada to the failures more than 18 months ago. Continue Reading →

NEWS RELEASE: Ivanhoe Mines says Globe and Mail readers are being misled by the newspaper’s story today about the company’s Platreef Project

JOHANNESBURG, SOUTH AFRICA–(Marketwired – Dec. 5, 2016) – Statement: (The following statement from Ivanhoe Mines (TSX:IVN)(OTCQX:IVPAF), has been issued in response to a story published 5 December 2016 by The Globe and Mail newspaper’s Report on Business involving the Platreef mine development project in South Africa).

A story published in today’s Canadian Globe and Mail newspaper fails to present readers with significant, relevant facts relating to a court-directed suspension of grave relocations at the Platreef mine development project in South Africa’s Limpopo province.

Ivanplats, an Ivanhoe subsidiary, owns 64% of the Platreef Project. In conjunction with ongoing mine construction, Ivanplats has arranged for the relocation of informal graves from locations that have been identified on lands outside the perimeter of the active mine development site. Continue Reading →

In South Africa, a Friedland-backed mine is told to stop exhuming historic graves – by Geoffrey York (Globe and Mail – December 5, 2016)

JOHANNESBURG — A court has ordered Ivanhoe Mines Ltd. to stop exhuming and relocating dozens of historic graves at the site of its planned $1.6-billion platinum mine in South Africa.

The Vancouver-based company says it is complying with the interim order, but will fight it in a court hearing in late January. It says the court order hasn’t affected construction at the site, where its first shaft has reached a depth of more than 120 metres underground.

The court order is the latest sign of tensions between Ivanhoe and some community members near the mining site in Limpopo province, about 280 kilometres northeast of Johannesburg. Continue Reading →

[14th annual Mining Journal awards night] Canada takes top gongs – by Staff (Mining Journal – December 5, 2016)

Toronto-listed companies and Canada itself picked up the top awards at the prestigious 14th annual Mining Journal awards night. The Outstanding Achievement Awards and Gala Dinner capped off a successful annual Mines & Money London conference on December 1.

Neil Woodyer won the coveted CEO of the Year Award for his tenure at the helm of Toronto-listed Endeavour Mining. Woodyer, who has since taken over the reins at Leagold Mining Corp, was responsible for driving Endeavour’s strategic growth and ensuring a platform for his successor to build on.

Awards co-host Amanda Van Dyke, a mining equity specialist with Peterhouse Asset Management, and a member of the Mines & Money advisory board, said great mining companies needed great CEOs and the hotly contested shortlist represented the best of the best. Continue Reading →

Goodman wins Lifetime Achievement award – by Staff (Mining Journal – December 5, 2016)

Judges have awarded the 2016 Mining Journal Lifetime Achievement Award to leading industry financial and corporate figure, Ned Goodman. Jonathan Goodman accepted the award on his father’s behalf at the gala dinner ending the 2016 Mines and Money London event last Thursday.

Event co-host Amanda Van Dyk, a mining equity specialist with Peterhouse Asset Management and a member of the 11-member Mines and Money advisory board, said the vote for Goodman was unanimous due to his stellar achievements.

“This year’s winner has made transformative and enduring contributions to Canada’s minerals industry and capital markets as a company-builder, merchant banker and investment advisor during a dynamic career spanning almost half a century,” she said. Continue Reading →

Undeterred by politics, Eldorado digs in for the long haul in Greece – by Eric Reguly (Globe and Mail – November 30, 2016)

ATHENS – The development of Eldorado Gold’s mining projects in Greece have been exercises in misery.

In 2012, the Skouries mining site in northern Greece, the centrepiece of the Canadian company’s European gold portfolio, was besieged by protesters who said the mine would be an environmental disaster. A year later, the site was firebombed. In mid-2015, the new, far-left Syriza government revoked the permits that Eldorado needed to put Skouries into production and the project was suspended.

Today, after striking peace agreements with the Syriza government, Eldorado is sinking more than $1-billion (U.S.) into three projects in Greece, dominated by Skouries, that will drive the company’s growth in the next decade. Propelled by the Greek mines, Eldorado expects to produce more than 800,000 ounces of gold in 2020, up 110 per cent from forecast production in 2017. Continue Reading →

Miners go green in hunt for cost efficiencies, using renewable energy sources in far-flung locations – by Sunny Freeman (Financial Post – November 29, 2016)

Mining companies are digging into renewable energy as a way to reduce costs and offset the impact of volatile conventional fuel prices as the world shifts to a low-carbon economy.

Industry executives gathered last week at the Energy and Mines World Congress in Toronto focused on how innovation in energy – which can comprise as much as one-quarter of operating expenses in remote locations – can make mines more cost-effective and environmentally sustainable. “I think we will be surprised at the speed at which mining companies will start to adopt these things,” said Adriaan Davidse, mining innovation leader at Deloitte.

Amid rapid improvements in renewable technologies, wind and solar prices have fallen dramatically in recent years and are expected to keep dropping. In many parts of the world —especially in remote locations – the alternative energy solutions are becoming cheaper than conventional sources. Continue Reading →

Grande Cache coal mine looking to restart operations – by Roberta Bell (CBC News Edmonton – November 23, 2016)

Northwest Alberta mine shut down in 2015, laying off 400 employees

Steelmaking coal producer Grande Cache Coal says it plans to reopen its shuttered surface mine and coal-processing plant next year. “It is expected that the [surface] mine will resume operations by the end of Q1 2017,” the Chinese-owned company said in a regulatory update posted to its website this week.

The coal processing plant would start operating within a month of the resumption of mining operations, the update said. But the plans depend on “shareholders’ approval and the negotiation of key contracts,” the company said, adding that pre-production activities would start in January.

The company also said it plans to apply to the Alberta Energy Regulator to mine one of its underground coal seams “and not to abandon it.” More information is expected at an open house in Grande Cache on Dec. 14, the company said. Continue Reading →

Not all foreign investment is in Canada’s national interest – by Sean Speer and Shuvaloy Majumdar (Globe and Mail – November 28, 2016)

Let us be precise: Chinese SOEs are controlled and influenced by
the Chinese government and are plainly agents of the Chinese state.
Former senior CSIS official Ray Boisvert has said: “state-owned
enterprises have the same marching orders or essentially the same
mandate or mission” as the broader Chinese state. These companies
have non-market objectives including corporate espionage, the
acquisition of strategic resources and geopolitical calculations.

New reports that Ottawa may relax restrictions on foreign investment in previously protected sectors such as broadcasting and telecommunications is welcome news. It’s the type of structural reform that could provide a long-term boost to the Canadian economy. The Trudeau government has already signalled progress on opening up the aviation sector and will deserve considerable credit if it maintains such ambition across other parts of the economy.

But such a liberalization should not be executed unthinkingly. Federal investment policy should be prepared to distinguish between state-owned enterprise (SOE) investment and investment from different sources – and maintain the capacity to exclude investments that aren’t in the national interest. Continue Reading →

Alberta makes $1.36-billion deal with power producers to shutter coal units – by Jeff Lewis (Globe and Mail – November 26, 2016)

CALGARY — Alberta is paying a hefty price to soothe investor fears as it ditches coal-fired power in a massive shakeup to its electrical grid.

The province’s NDP government late on Thursday announced a deal to pay three major power producers $1.36-billion over 14 years as compensation for shutting down coal units years ahead of schedule. Funds will be paid using the province’s levy on large carbon emitters.

It also said it settled a dispute with Capital Power Corp. and reached tentative deals with Altagas Ltd. and TransCanada Corp. over cancelled power-purchase agreements, heading off a potentially costly legal spat. A dispute with Calgary’s city-owned utility, Enmax Corp., remains unresolved. Continue Reading →

[Dominion Diamond] Bob Gannicott’s lasting legacy – by Alisha Hiyate (Northern Miner – November 18, 2016)

Robert Gannicott, the man who built Canada’s largest diamond mining company, Dominion Diamond (TSX: DDC; NYSE: DDC) and a pioneer of Canada’s diamond scene for 25 years, has died. Gannicott passed away on Aug. 3, at age 69, after a two-year battle with leukemia.

One of the first and most successful entrants into the Lac de Gras diamond rush in the Northwest Territories in the early 1990s, Gannicott is being remembered as a visionary and innovator, as well as for his vast contributions to Canada’s North.

With Grenville Thomas, he played an integral role at Aber Diamond in finding the Diavik mine. Gannicott then led the company through a series of transactions to become Dominion Diamond — the world’s third largest diamond miner after De Beers and Alrosa. Continue Reading →

Barrick mulls Kalgoorlie bid of roughly $1.3 billion by China’s Minjar: sources – by John Tilak and Susan Taylor (Reuters Canada – November 24, 2016)

TORONTO (Reuters) – Barrick Gold is reviewing the financial backing behind an approximately $1.3 billion bid for its stake in Australia’s Kalgoorlie mine by Minjar Gold, a unit of Shanghai-listed Shandong Tyan Home, two sources told Reuters.

Toronto-based Barrick, the world’s largest gold producer, is studying the offer for the 50 percent stake to ensure Minjar has adequate resources and support to complete the transaction, said the sources, who declined to be identified as the matter is private. Barrick declined to comment.

Little-known Minjar has trumped offers by Australian, Chinese and Canadian companies for the asset, the sources said.Newmont Mining, Barrick’s joint venture partner at Kalgoorlie and mine operator, has said it was interested in buying the remaining stake, but price has been a sticking a point. Continue Reading →

Alberta strikes $1.36 billion deal with coal companies as part of plan to shut down plants early – by Geoffrey Morgan (Financial Post – November 25, 2016)

CALGARY — The Alberta government will pay three coal-fired electric generating companies $1.36 billion for the province’s decision to close their plants early, while also potentially avoiding a lawsuit with other power companies in the province.

The province’s Energy Minister Marg McCuaig-Boyd announced Thursday the province will pay Capital Power Corp., TransAlta Corp. and ATCO Ltd. a total of $97 million per year, beginning next year and payable every year until 2030, to shut down six of their 18 power plants early.

The other 12 coal-fired electric generating stations in the province are all scheduled to close, or convert to natural gas, before 2030. Alberta’s NDP government has mandated that all coal-fired power plants either cease operations or eliminate all their emissions by that date as part of sweeping climate change legislation announced last year. Continue Reading →