Archive | Canada Mining

Mining industry, environmental groups watch as Canada plans new coal effluent rules – by Paul Withers (CBC News Nova Scotia – February 22, 2017)

http://www.cbc.ca/news/canada/nova-scotia/

Environment and Climate Change Canada is considering plans to impose new effluent limits that would reduce harmful discharges from coal mining by 2019.

Ottawa’s proposal would require new coal mines to collect and monitor all effluent through a final discharge point where it would have to meet new limits for suspended solids, nitrates and a toxic byproduct called selenium.

For existing mines, effluent limits would be monitored after discharge into the environment. The department held its first stakeholder consultation in Nova Scotia on Wednesday. More meetings are scheduled for Saskatchewan, Alberta and British Columbia in coming weeks. Continue Reading →

Goldcorp unveils five-year growth plan – by Salma Tarikh (Northern Miner – February 21, 2017)

http://www.northernminer.com/

Goldcorp (TSX: G; NYSE: GG) has outlined an ambitious five-year growth plan, targeting a 20% increase in both gold reserves and annual production and a 20% reduction in all-in sustaining costs, after spending 2016 restructuring its business, strengthening its management team and selling non-core assets.

“It has been a very busy year as we transition to harvest mode. But we now have a structure and people in place to increase that net asset value (NAV) per share to drive long-term shareholder value,” David Garofalo, Goldcorp’s president and CEO, said on a recent conference call.

“For 2017, our production is projected to be approximately 2.5 million oz. at all-in sustaining cost of US$850 per oz. and expected to grow to 3 million oz. at all-in sustaining cost of US$700 per oz. within five years,” he added. Continue Reading →

De Beers new diamond mine set to reach full commercial production – by Barbara Lewis and Susan Taylor (Reuters U.K. – February 22, 2017)

http://uk.reuters.com/

LONDON/TORONTO – Gahcho Kue diamond mine in Canada’s Northwest Territories is set to reach full commercial production over the next six weeks, the heads of Anglo American (AAL.L) unit De Beers and its Canadian partner Mountain Province Diamonds MPV.TO said on Tuesday.

First diamond production at the Arctic mine, the world’s largest and highest grade new diamond mine, began last year and has been gradually ramping up.

Output will be an average of 4.5 million carats per year over the anticipated 13-year life of the mine in which operator De Beers has a 51 percent stake, with the rest held by Mountain Province Diamonds. Continue Reading →

US has provided $315m in financing to supplier of mines accused of slave labor – by Eduardo Garcia (The Guardian – February 22, 2017)

https://www.theguardian.com/

An obscure US government agency has provided $315m in taxpayer-supported financing over the past decade to a company that has supplied equipment to African mines accused of slave labor, human rights violations and environmental destruction.

Between 2007 and 2015, the US Export-Import Bank provided 48 insurance policies to the New Jersey-headquartered Connell Company to pursue deals with at least 17 mining companies in seven sub-Saharan countries.

These included a $20,000 policy to supply equipment to the Bisha copper mine in Eritrea, which is being investigated by a Canadian court amid accusations of slavery, according to an investigation of the bank by the Guardian and the Columbia University Graduate School of Journalism’s Energy and Environment Reporting Project. Continue Reading →

Canada’s Hope Bay fits Gekko mission – Staff (Mining Journal – February 20, 2017)

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

Gekko Systems Company Profile

As maiden gold pours go the one by TMAC Resources at its C$325 million Hope Bay project in Canada’s north was a momentous one. It not only marked the production start at a new generation mine in a standout emerging goldfield, but also realisation of a remarkable vision for the future of the industry conceived and developed by Australia’s Gekko Systems over the past 20 years.

“This is a project that fits with our reason for being, really,” says Gekko technical director and co-founder, Sandy Gray.

“We are focussed on step-change in the industry, through low-energy process flowsheet designs, low capital costs and small footprint and modular designs that are positive for the environment, deliver lower operating costs, and allow fast, low-risk, predictable project delivery and execution. Continue Reading →

Judge overturns halt in Ivanhoe grave relocations in South Africa – by Geoffrey York (Globe and Mail – February 20, 2017)

http://www.theglobeandmail.com/

JOHANNESBURG — A South African judge has overturned a court injunction at a huge Canadian-owned platinum project, saying that any delay to the project would cause “significant prejudice” to the company and the local community.

The judge reversed an earlier court order, issued last November, that had halted the exhuming and relocating of dozens of ancestral graves at the site where Ivanhoe Mines Ltd. is developing a $1.6-billion platinum mine.

Hundreds of community members have been fighting against the mine for years. But the company says the project would provide thousands of direct and indirect jobs, along with education and training opportunities and a local ownership trust. Continue Reading →

As growth plans return at gold miners, are investors being set up for disappointment? – by Ian McGugan (Globe and Mail – February 17, 2017)

http://www.theglobeandmail.com/

Canada’s leading gold companies are once again turning their attention to new projects, as resilient bullion prices and healthier balance sheets fuel guarded optimism.

The shift in emphasis was clear as senior executives discussed earnings reports with analysts on Thursday. A year ago the talk was all about cutting costs, selling assets and expanding free cash flow, but miners are now stressing growth opportunities too.

Agnico Eagle Mines Ltd. said it was planning to invest more than $1.2-billion (U.S.) in two mines in Canada’s North. Goldcorp Inc. reiterated its commitment to expanding its production by 20 per cent over the next five years. Continue Reading →

Sherritt considering full exit from Madagascar mine project to reduce debt – by Geoffrey York (Globe and Mail – February 17, 2017)

http://www.theglobeandmail.com/

JOHANNESBURG — After months of negotiations with its partners, Sherritt International Corp. is still considering a complete exit from its costly joint venture in Madagascar as it struggles to reduce its huge debt burden.

The Toronto-based company owns 40 per cent of the Ambatovy nickel and cobalt mine in Madagascar, which cost more than $5-billion (U.S.) to develop. Last year, it announced a $1.6-billion (Canadian) writedown of the value of its stake in the mine, where it is also the operator.

After borrowing about $650-million (U.S.) from its partners to pay for its share of developing the mine, Sherritt has seen this loan balloon to about $1.3-billion (Canadian) on its balance sheet as the interest compounded, according to David Pathe, Sherritt’s chief executive officer. “It’s an enormous debt number for a company our size,” Mr. Pathe said in an interview at an African mining conference in Cape Town. Continue Reading →

Agnico Eagle presses the start button on two new Nunavut mines – by Jim Bell (Nunatsiaq News – February 16, 2017)

http://www.nunatsiaqonline.ca/

Company will invest US $1.2 billion on construction at Meliadine, Amaruq

After 10 years in Nunavut, Agnico Eagle Mines Ltd. will invest more than $1.2 billion to construct two new Kivalliq region gold mines that will likely produce local jobs and contract opportunities for many more years to come.

The company pressed the start button Feb. 15 on its long-awaited Meliadine mine near Rankin Inlet and its proposed satellite mine at Amaruq near the company’s existing operation at Meadowbank, which is nearing the end of its life.

To do that, they’ll invest US$900 million between now and 2019 to construct Meliadine and about US$330 million to bring the Amaruq deposit into commercial production, with the expectation that they can start shipping gold from each project by the third quarter of 2019. Continue Reading →

Mining Association not feeling bubbly about rebound – by Staff (Northern Ontario Business – February 16, 2017)

https://www.northernontariobusiness.com/

Canada isn’t the welcoming mining jurisdiction that it used to be, according to the Mining Association of Canada (MAC). Optimism abounds that the global mining industry is heading in the right direction for 2017, but a new MAC report indicates Canada’s competitiveness is in decline and financiers interested in exploration and mining projects could start parking their investment dollars offshore.

“Very simply, Canada is not as attractive as it used to be for mineral investment, and competition for those dollars is growing globally,” said MAC president-CEO Pierre Gratton in a Feb. 16 news release.

“The recent elimination of federal mining tax incentives, regulatory delays and uncertainty, combined with major infrastructure deficits in northern Canada are all contributing factors that can explain Canada’s declining attractiveness. The time is now to put the right policy pieces in place to better compete for those investments and regain our leadership in mining.” Continue Reading →

Barrick Gold Corp earnings beat expectations on lower production costs, boosts quarterly dividend – by Sunny Freeman (Financial Post – February 16, 2017)

http://business.financialpost.com/

TORONTO — Barrick Gold Corp. raised its dividend Wednesday after fourth-quarter earnings beat analysts’ expectations as it lowered its cost of producing gold closer to its US$700 target. The Toronto-based mining giant, which reports in U.S. dollars, reported net income of $425 million, or 36 cents per share.

After adjustments, net income for the quarter was $255 million, or 22 cents a share — a 180 per cent jump from the $91 million, or eight cents per share it earned in the fourth quarter of 2015. Analysts were expecting earnings of $227 million, or 20 cents per share.

The company credited increases in realized gold and copper prices and lower costs of sale for the improvements. “Barrick’s operations delivered progressively-stronger performance over the course of 2016, with three consecutive quarters of improved all-in sustaining cost guidance and gold production at the high end of our annual production forecast,” the company said in a statement. Continue Reading →

Agnico to Invest $1.2 Billion in Gold Projects in Canada’s North – by Danielle Bochove (Bloomberg News – February 15, 2017)

https://www.bloomberg.com/

Agnico Eagle Mines Ltd. plans to invest more than $1.2 billion in Canada’s subarctic in the next three years as it builds one new mine and expands another.

North America’s fourth-largest gold miner by market value is moving ahead with plans to develop its Meliadine project and a deposit near its Meadowbank mine in Nunavut, the company said Wednesday in its fourth-quarter earnings statement. The decision will boost Agnico’s gold production to 2 million ounces a year by 2020, about 20 percent more than last year’s output of 1.66 million ounces.

“This is very much low-risk, high-quality growth because it’s an extension of what we’ve been doing for the last many, many years,” Chief Executive Officer Sean Boyd said in an interview at the company’s Toronto offices. Continue Reading →

Don’t expect another commodities supercycle but oil at $60 is better than $30 for your portfolio – by Olev Edur (Financial Post – February 15, 2017)

http://business.financialpost.com/

“We’ve had a ten-year supercycle and then a five-year blow-off.” That’s how Drummond Brodeur, senior vice-president and global strategist with Signature Asset Management (a division of CI Investments) in Toronto, succinctly sums up the past 15 years for Canadian markets.

While the panic selling of early 2016 gave way to something of a rebound throughout the rest of the year — a “still alive bounce” — Brodeur offers an even more succinct summary of the outlook for Canadian markets going forward: “Meh.”

“We saw oil go down below US$30 and now it’s back to US$50, but it’s not going back to US$100 any time soon,” Brodeur says. “Maybe US$60, but we won’t see a resumption of the supercycle that occurred between 2001 and 2011. It’s not exciting, but US$60 is a lot better than US$30, and the market should be much more stable going forward.” Continue Reading →

Sisson mine owners see share price climb 56% in weeks before Maliseet deal – by Robert Jones (CBC News New Brunswick – February 15, 2017)

http://www.cbc.ca/news/canada/new-brunswick/

New Brunswick government says deal was announced as soon as possible after being confirmed by First Nations

Northcliff Resources Ltd., the Vancouver-based firm behind the proposed tungsten–molybdenum open pit mine and processing facility outside Stanley saw its stock price jump 56 per cent between Dec. 15 and Feb. 9, according to Toronto Stock Exchange trading archives.

The price escalation began roughly at the same time the province and Maliseet First Nation communities came to a deal about the mine.

“It was in December, mid–December — around early to mid–December,” said Chief Patricia Bernard of the Madawaska Maliseet First Nation about when she and five other chiefs agreed not to oppose the mine in exchange for a deal with the province on tax sharing on gasoline and tobacco sales. Bernard said documents formalizing the December agreements were then signed on Jan. 31. Continue Reading →

Proud Canadian mining sector for a strong nation – by Marilyn Scales (Canadian Mining Journal – February/March 2017)

http://www.canadianminingjournal.com/

Canada is celebrating the 150th anniversary of Confederation. In 1867 the founding fathers met in Charlottetown built the foundation of a nation truly “strong and free”. They did a very good job, too. We can savour their hard work as we join in various celebrations around the country.

One of the reasons to be proud of Canada is its vast storehouse of natural resources and the men and enterprises that put us among the world’s premier mineral producers – gold, uranium, potash, base metals, diamonds, and the metals of the future. Our mineral legacy has also given rise to some of the world’s best technology for finding, mining and processing those riches.

Let’s take a look at the first person to be caught up in our mineral wealth. While Martin Frobisher searched for the Northwest Passage, he ballasted his ships with shiny yellow rocks. What he thought would be his fortune was pyrite, not gold, and his mistake was not pointed out until he had made another voyage and collected even more rocks. The lesson is: Never send a ship captain to do a geologist’s job.

French king Louis XIV granted what are probably the first mineral concessions on Cape Breton Island to Nicolas Denys who discovered coal there in 1672. For the next 200 years mining was small scale, done to meet local needs. Continue Reading →