Archive | Canada Mining

Greenpeace is a menace to the world – by Margaret Wente (Globe and Mail – June 24, 2017)

The little town of Saint-Félicien, in Quebec’s lovely Saguenay region, is under siege. The softwood lumber wars have broken out again, and that’s bad news. … Then there’s Greenpeace. “Greenpeace wants our total death!” mayor Gilles Potvin complained back in 2013. “If we listen to them, we can’t cut wood any more.”

Greenpeace has been waging a relentless campaign against Resolute Forest Products, the largest forest company in the region and in Canada. (It is the successor company to Abitibi and Bowater.)

Greenpeace has branded Resolute as a “forest destroyer” that is risking a “caribou herd death spiral” and harming the region’s First Nations. It has vigorously lobbied Resolute’s customers – including the world’s biggest book publishers – to boycott its paper and print products. Continue Reading →

A NEW YUKON GOLD PLAY – by James Kwantes (Resource Opportunities – June 21, 2017)

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The Yukon is now one of the hottest jurisdictions globally for gold exploration. Goldcorp kicked things off in the spring of 2016 with its $520-million purchase of Kaminak Gold and the 5-million-ounce Coffee project. Since then Barrick, Newmont and Agnico Eagle have also entered through investments in Yukon projects.

As the Yukon’s largest claims holder, Strategic Metals is poised to capitalize on the upsurge in interest. But the company wasn’t getting much value in the market for some prime projects in the highly prospective Dawson Range gold belt. It is now.

Strategic packaged four of the properties — Eureka, Trident, Triple Crown and Treble — into a new company called Trifecta Gold, which began trading on the TSX Venture last Thursday with the symbol TG. The new exploration play has just 23.15 million shares outstanding and Strategic retains a 9.19 stake. The rest of the shares were distributed to Strategic shareholders, on the basis of 1 Trifecta share for every 4.5 Strategic shares. Continue Reading →

Canada’s First Cobalt braves political risk to pile in to Congo – by Aaron Ross (Reuters U.S. – June 23, 2017)

KINSHASA – With Western companies in Democratic Republic of Congo treading carefully in the face of political turbulence and a worsening business climate, Canada’s First Cobalt Corp is an unlikely newcomer to the central African nation’s mining scene.

Several of the Toronto-based firm’s workers are former employees of First Quantum Minerals, whose prized Kolwezi project was expropriated in 2010 in an episode that underscored the risks of investing in Congo. But for First Cobalt CEO Trent Mell, the logic of entering a country responsible for nearly two thirds of global cobalt output as the electric vehicle market booms is simple.

“The bottom line is: No DRC, no Tesla,” he said, referring to the U.S. automaker. “You can’t fill the void when you have 64 percent of production coming out of the DRC.” Demand for the metal, a key component in the lithium-ion batteries that power electric cars and mobile phones, is surging. Consultancy CRU Group say electric car and plug-in hybrid vehicle sales could quadruple to 4.4 million in 2021. Continue Reading →

Rio Tinto, Canada aluminum’s good guys in Commerce Department probe – by Suzanne O’Halloran (June 21, 2017)

The world’s biggest aluminum players want to set the record straight: they say they shouldn’t be lumped in with China, Russia and other alleged “bad actors” whose imports may be a threat to the security of the United States.

Among those Rio Tinto (RIO), the largest producer of aluminum in North America, via its operations in Quebec and British Columbia. “Rio Tinto’s operations, such as those in Utah, California and Arizona are strong contributors to the United States economy and employment” Rio Tinto CEO Alf Barrios said in prepared remarks viewed by FOX Business, to be delivered Thursday during a scheduled hearing.

Barrios also defended the miner’s long history as a U.S. defense ally dating back to World War II. “Our smelters have a long history of supplying U.S. manufacturers – particularly U.S. defense-related manufacturing” he notes. Continue Reading →

Mining’s role in Canada’s next 150 years – by Alisha Hiyate (Canadian Mining Journal – June/July 2017)

On July 1, Canada celebrates its 150th anniversary. Of course, I would normally take this opportunity to recognize the mining sector’s contribution to Canada’s wealth and its importance in our history. However, CMJ’s news editor Marilyn Scales did an excellent job tracing some of the industry’s history and accomplishments in her editorial in our February issue.

So rather than rehashing the sector’s contribution to Canada’s first 150 years, I’d like to take a moment to imagine what our industry could contribute to Canada’s future.

Most Canadians – even if they are aware of the vast amount of wealth mining has contributed to the nation and the role the sector played in establishing Toronto as a global mining finance centre – associate it with our past.  But the mining sector is in the midst of a seismic transformation. Continue Reading →

ANALYSIS: Turnaround in Tanzania’s Mining Sector Is Possible – by Krispinana Krispinana (All Africa – June 18, 2017)

The mining sector in Tanzania is experiencing hard times now. The legacy of mining of the past decades has been shown to be very unfavourable to the country’s interests in a recent report of Prof Nehemiah Osoro Committee formed by President John Magufuli to investigate the legal and economic impact of mining in relation to the impoundment of the mineral concentrates in containers that were destined for export by Acacia Mining Plc, a subsidiary of Barrick Gold Corporation.

Tanzania still has the potential in mining, but it needs the mining sector that operates on an overhauled legal, tax and regulatory landscape. This piece is intended to explore and flesh out tough dialogue between Barrick Gold Corporation, on the one part, and the government of Tanzania, on the other. Such dialogue is critical to reorganising Tanzania’s mining sector.

There is a view enunciated by economist Milton Friedman in 1970 that “the business of business is business”, that is, to make profit notwithstanding the existing cultural, socio-political and environmental circumstances of a country. Continue Reading →

Nova Scotia gold rush 2.0: Miners seek riches in tiny flecks of precious metal – by Michael Tutton (Metro Press – June 18 2017)

MOOSE RIVER GOLD MINES, NOVA SCOTIA, Canada — Amid the dull claystone of a tube-shaped sample of rock, the gleaming, pulse-quickening swirl of gold is unmistakable.

“It’s quite a special specimen of gold — it’s by far the best visible section of gold we’ve ever intersected,” said Tim Bourque, a geologist with Atlantic Gold Corp, cradling the metre-long sample in his arms. The rock was gathered last fall at the firm’s Fifteen Mile Lake property, one of four deposits it owns in Nova Scotia’s old gold districts.

The discovery of the precious metal in such unremarkable hunks of stone is helping to revive a dormant industry — and Bourque hopes it will keep the company’s Moose River Consolidated Project flourishing after its initial Touquoy mine starts up here in September. Continue Reading →

Head north to understand why Canada needs an infrastructure bank – by Pierre Gratton (Globe and Mail – June 18, 2017)

Pierre Gratton is president and CEO of the Mining Association of Canada.

Any government initiative with a $35-billion price tag is bound to drum up political debate, and the Canada Infrastructure Bank (CIB) has been seeing its fair share. But I stand with the International Monetary Fund, Canadian and global business groups, and aboriginal organizations who say that the CIB, if well structured, is exactly what Canada needs to grow the economy over the long term. Bold action is needed to address an area that we’ve been failing at: constructing strategic, nation-building infrastructure.

Many of you are probably reading this on a digital device connected to wireless high-speed Internet. And I’ll assume that many of you are reading this at work, a place that you travelled to on roads, and that is powered by the electrical grid. Pretty mundane stuff, right? But it’s not if you’re living or working in remote and northern areas of Canada.

I should know. I represent a major Canadian industry whose opportunities for growth are increasingly in areas where infrastructure simply does not exist, or is severely lacking. Continue Reading →

ETF rebalancing a bumpy ride for junior gold miners – by Joyita Sengupta (Globe and Mail – June 14, 2017)

In an unprecedented move, one of the most popular junior gold miner exchange-traded funds is set to rebalance on Friday after growing too large for its market. After months of volatility, miners and investors alike are preparing for even more uncertainty.

Cursed by its own success as a $4-billion (U.S.) ETF in a $30-billion space, VanEck Vectors Junior Gold Miners ETF (GDXJ-N) began to expand beyond the index it tracks, the MVIS Global Junior Gold Miner’s Index.

Combined with VanEck’s Vectors Gold Miner ETF, (GDX-N), the company is nearing the significant shareholder status point of 20-per-cent ownership in several companies, many of which are Canadian, which means special filing requirements and significant trading restraints. Continue Reading →

KIA signs gold mine benefit deal with Agnico Eagle (CBC News Canada North – June 16, 2017)

The KIA and Agnico Eagle have signed an Inuit Impact Benefit Agreement regrading the Whale Tail gold deposit

Officials from the Kivalliq Inuit Association (KIA) and Agnico Eagle Mines Ltd. signed the Whale Tail Inuit impact benefit agreement (IIBA) in Baker Lake, Nunavut, on Thursday. In 2019, the mining company hopes to begin open pit operations at the Whale Tail gold deposit, approximately 50 kilometres north of the Meadowbank gold mine.

The Whale Tail agreement includes a $6.5 million payment to KIA — including $3 million given on June 15 to a community initiative fund. Other benefits include a 1.4 per cent cut of net gold production, $3.6 million in funding for annual training programs (with an additional $1 million in training investment if Inuit employment goals are not reached), and a preference point system to Nunavut Tunngavik Inc. registered companies.

“KIA has strived to balance the need to protect the environment with the promotion of economic development,” stated David Ningeongan, KIA president, in a press release. Continue Reading →

UPDATE 2-Argentina lifts curbs on Barrick mine; full operations lag (Reuters U.K. – June 15, 2017)

Authorities in the Argentine province of San Juan lifted restrictions on leaching operations at Barrick Gold Corp’s Veladero mine on Thursday, but the world’s biggest gold producer said it would not immediately resume full operations.

Judge Pablo Oritja told a radio station that he understood Barrick had finished all required work, following its third cyanide spill in 18 months, and had ordered an end to restrictions put in place in late March.

Barrick will not begin adding cyanide until it has completed the ramp up of a new system and verified all elements are ready for normal operations, in keeping with a plan the miner submitted to regulators, said spokesman Andy Lloyd. Continue Reading →

New mining rules in South Africa would require 30-per-cent black ownership – by Geoffrey York (Globe and Mail – June 15, 2017)

JOHANNESBURG — South Africa has announced a “revolutionary” new mining code to force companies to give a 30-per-cent ownership stake to black partners, triggering a plunge in mining stocks and a swift threat of legal action by the industry.

Canadian companies such as Ivanhoe Mines Ltd., which is developing one of the world’s biggest platinum mines in South Africa, would be among those potentially affected by the new ownership rules. The new code would increase the minimum black ownership from 26 per cent to 30 per cent for mine owners, while also requiring companies to be majority black-owned if they want a prospecting licence.

Mining companies would have to give 1 per cent of their annual revenue to their black shareholders before paying dividends to any other shareholders. The new code would take effect in 12 months. Continue Reading →

UPDATE 4-Barrick Gold to hold talks with Tanzania over export row – by Fumbuka Ng’wanakilala and David Lewis (Reuters U.S. – June 14, 2017)

DAR ES SALAAM/NAIROBI, June 14 Barrick Gold’s chairman and Tanzania’s president met on Wednesday and agreed to hold talks aimed at resolving an escalating dispute over an export ban which has hit Barrick’s Acacia Mining PLC .

Shares in Acacia, which is 63.9 percent owned by Barrick, jumped as much as 11 percent, to 303 pence, after the news and closed 5.5 percent higher, outpacing sector rivals. Tanzania is Africa’s fourth-largest gold producer, and Acacia its largest miner, with three gold mines that also produce copper in the East African country.

Acacia’s market value has nearly halved to about $1.4 billion since Tanzania banned the export of unprocessed ore in March, part of a push for the construction of a local smelter to make the country’s gold exports more valuable. Continue Reading →

Sabina finds deeper mineralization at Back River in Nunavut – by Trish Saywell (Northern Miner – June 14, 2017)

Global mining news

Drilling during Sabina Gold and Silver’s (TSX: SBB) spring exploration program has extended mineralization 300 metres down plunge of the Back River project’s existing resources in southwestern Nunavut.

Drill hole 17GSE513 stepped out about 300 metres down plunge of the existing resource structure at the project’s Llama deposit and intersected 48 metres of altered and mineralized iron formation that included an intercept of 6.52 grams gold over 8.3 metres from a depth of 618.90 metres. Another hole, 17GSE512, cut 6.30 grams gold over 2.65 metres from a depth of 603.5 metres.

“Results bode well for future resource growth,” Andrew Kaip of BMO Capital Markets wrote in a research note. “We continue to believe that the Back River project represents an attractive feasibility study stage project, at an advanced stage of permitting, in a safe jurisdiction, and with a large reserve base containing above-average grade.” Continue Reading →

[Vale Canadian CEO Jennifer Maki] The mindful miner – by Peter Carter (CPA Magazine – June 1, 2017)

Vale’s base metal boss and Canadian CEO Jennifer Maki believes in building bridges, staying connected and delivering results. And she does it her way.

It was a February Friday in 2007. Jennifer Maki was given a choice. At the time, Maki was assistant treasurer at Vale Canada, a subsidiary of the biggest iron-ore mining company in the world, Rio de Janeiro-based Vale. Like lots of Vale’s senior positions, Maki’s duties were moving to head office in Brazil. The question was: would she rather take an 18-month buyout package or stay with Vale in Toronto in a yet-to-be-determined position?

The buyout looked appealing. In the months leading up to Vale’s offer, Maki’s world had gone through seismic shifts, and in the process, friends, colleagues and fellow executives either left or were asked to leave the company. There was little doubt she would find other work.

Her rise to the senior ranks of the company had been meteoric, beginning in 2003. After 10 years as a CA with PricewaterhouseCoopers in Toronto, Maki had accepted an offer from the client whose file she had been auditing for nine of those years, giant nickel miner Inco. Continue Reading →