Archive | Canada Mining

Strong tailwinds giving juniors, project developers room to run – research note – by Henry Lazenby (Mining – May 26, 2016)

TORONTO ( – About halfway through the first quarter, analysts at Dundee Capital Markets noticed that exploration companies that had weeks earlier appeared to be dead in the water, as investors abandoned all but a handful of names, were steadily starting to leave the laggards behind as a combination of the gold price rally and improved investor sentiment blew wind in their sails.

On the back of a 17% rise in the price of gold during the first three months of 2016, the coverage universe of 47 resource stocks that Dundee tracked on an enterprise value per ounce (EV/oz) metric, based on a total mineral inventory (TMI) had risen steadily, helping analysts to differentiate those companies that had the benefit of wind in their sails from the idlers and providing a good measure of the potential upside that the market was willing to pay for quality gold opportunities.

In a research note published on Thursday, research analysts and co-authors Ron Stewart and Erik Bermel noted that the average EV/oz had so far this year improved from $13/oz to $32/oz, reflecting improved investor sentiment toward exploration-focused companies which, in turn, reflected the 15% year-to-date improvement in the gold price to about $1 220/oz. Continue Reading →

A 7,000-kilometre northern corridor in search of shared vision – by Claude Montmarquette and Andrei Sulzenko (Globe and Mail – May 27, 2016)

Canada’s history is full of examples of large-scale transportation infrastructure projects that have motivated growth and helped define a shared vision for the country. The Canadian Pacific Railway, the Trans-Canada Highway and the St. Lawrence Seaway are prime examples.

But the Canada of 2016 does not have such grand plans for infrastructure that may be vital to supporting economic and social development in this country. Aside from some private-sector proposals (mainly pipelines), there are precious few examples of transportation infrastructure developments outside our major urban centres.

The best way to address this lack of vision may well be through a bold approach being examined by researchers at the School of Public Policy at the University of Calgary and CIRANO, a Quebec-based economic research organization. We have just released a study on the potential for a major transportation right-of-way through Canada’s North and near North, connecting resource-rich areas with tidewater access on all three coasts. Continue Reading →

Proposed 7,000-kilometre resource corridor would improve life in Canada’s North, researchers say – by Eric Atkins (Globe and Mail – May 27, 2016)

An ambitious proposal to build a 7,000-kilometre trade and infrastructure corridor in Canada’s North has taken a key step forward.

The Northern Corridor would link Canada’s people, goods and natural resources with overseas and southern markets, and boost sovereignty and development in vast swaths of the country that are economically isolated, concludes the first feasibility study of the concept. The idea was launched a year ago by the University of Calgary’s School of Public Policy and Montreal’s Centre for Interuniversity Research and Analysis of Organizations.

Pipelines, railways, roads, electricity and transmission lines would share the right of way that extends from the Pacific to Atlantic oceans, the Beaufort Sea to the north, as well as Hudson Bay and the St. Lawrence Seaway, connecting to existing rails, roads, pipes and ports in the southern part of Canada. Continue Reading →

Newfoundland’s Sisters of Mercy challenge Potash Corp in board room – by Michael Swan (The Catholic Register – May 25, 2016)

The Sisters of Mercy of Newfoundland lost a vote at the May 11 Annual General Meeting of Potash Corporation of Saskatchewan, Inc., but they won attention from the mining giant’s management.

The community of 95 Catholic sisters were asking the company, currently valued at $14.7 billion on the Toronto Stock Exchange, to undertake a human rights study of its operations in the Western Sahara. The proposal garnered just 6.7 per cent of the votes at the 2015 AGM, but it attracted support from 31.6 per cent of the outstanding shares — including the votes of major institutional investors this year.

The sisters’ motion was backed by the British Columbia Investment Management Corporation, which handles pension funds for BC public servants, the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan among others — totalling 159,593,972 shares voting for the motion, versus 344,850,348 shares against. Continue Reading →

Nunavut Inuit group shows its members the mining money – by Guy Quenneville (CBC News North – May 23, 2016)

The Inuit land-claim organization for Nunavut’s Baffin Island region is taking the lid off a traditionally hush-hush topic: how much money an aboriginal group receives in its financial deal with a mining company.

The Qikiqtani Inuit Association (QIA) Board of Directors released a version of its Inuit impact and benefit agreement (IBA) with Baffinland Iron Mines Friday that includes dollar figures for how much has been promised to the QIA.

“I was somewhat taken aback,” said Doug Paget, a retired consultant in Ottawa who has tracked such agreements for years, via email. “This is, I think, the first time that this has happened.” Article 5 of the QIA’s agreement spells it all out: Continue Reading →

The last jaguar and the [HudBay Minerals] copper mine in the [Arizona] Sky Islands – by Kate Allen (May 22, 2016)

TUCSON, ARIZ.—It’s hard to imagine Mayke, a sweet-tempered Belgian shepherd, in the vocation for which she was bred. Driving by a border patrol checkpoint on a highway connecting Tucson to Mexico, she betrayed no reaction.

If the drug-and-bomb-sniffing flunkout was a loss for Homeland Security, she has been a major gain for Arizona conservation biology. Mayke appears to be highly motivated by her new role: detecting jaguar scat.

Earlier in the day, as Chris Bugbee, Mayke’s handler, turned onto a rutted road that rose into the foothills of the Santa Rita Mountains, Mayke began to pant. “When she starts breathing like that, it’s because she recognizes where we’re going,” Bugbee said. Soon they were scrambling down into a canyon studded with agaves, prickly pear cacti and death-white sycamores. Continue Reading →

Potash Corp sees Chinese supply contract settling within weeks – by Rod Nickel (Reuters U.S. – May 19, 2016)

NEW YORK – May 19 Potash supply contracts with Chinese buyers should be settled in two to four weeks, the chief executive of Potash Corp of Saskatchewan said on Thursday, setting a badly needed global price floor for the slumping crop nutrient.

Potash prices have fallen to their lowest in a decade, weakened by declining U.S. farmer incomes, falling currencies in consuming markets such as Brazil and bloated mining capacity. The Chinese contract usually sets a floor for a subsequent contract with Indian buyers and spot prices for Brazil and the United States.

Chief Executive Jochen Tilk was speaking at a BMO investor conference in New York. Afterward, he told Reuters he expected Chinese buyers to settle first with Belaruskali and Russia’s Uralkali, as is typical. Continue Reading →

[Royal Nickel] Canadians mop up Beta Hunt – by Jarrod Lucas (The West Australian – May 20, 2016)

Canada’s Royal Nickel Corporation is buying out private Australian company Salt Lake Mining in exchange for $C10.9 million ($11.5 million) in shares, taking sole ownership of the Beta Hunt gold and nickel mine, near Kambalda.

Royal Nickel controls 66 per cent of Salt Lake, which is chaired by former Moly Mines boss Derek Fisher and acquired Beta Hunt for $10 million in 2013. An overwhelming 99.6 per cent of Royal Nickel shareholders voted in favour of sweeping up the remaining interest in Salt Lake at a meeting in Toronto on Wednesday.

Royal Nickel will shell out 1.8775 shares for each remaining Salt Lake share, or a total of 24.32 million shares, and hopes to complete the deal this month. Continue Reading →

Mining projects getting close look in foreign aid review, says Bibeau – by Mike Blanchfield (CTV News – May 19, 2016)

The Canadian Press — OTTAWA — The international development minister says she wants to see what more can be done to help indigenous people who are affected by Canadian mining operations abroad. Marie-Claude Bibeau says that is one potential change in Canada’s foreign aid policy as she embarks on a sweeping review of the country’s international development assistance.

Bibeau announced the terms of wide-ranging public consultations on revamping aid policy this week, as the Trudeau government faced international pressure to boost overall aid spending to meet a UN target.

Bibeau stressed the need to help women and girls — a “feminist approach,” she called it — as well as recognizing the need to help failing and fragile states and deal with the impact of climate change. She also plans to take a closer look at so called public-private partnerships that have seen aid dollars spent in conjunction with resource companies. Continue Reading →

NEWS RELEASE: Ivanhoe Mines condemns promotion of false and dishonest claims by Mining Watch Canada

JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines condemns in the strongest terms possible the attempt by Mining Watch Canada – and its dishonest associates in South Africa – to spread falsehoods about the Platreef mine development project in the South African province of Limpopo. The recycled and false allegations published by Mining Watch Canada yesterday are not new and previously have been rebutted by Ivanhoe Mines and its South African subsidiary, Ivanplats. However, it is important to restate Ivanhoe Mines’ position for the benefit of shareholders, the media and the public at large.

Ivanhoe Mines is disappointed, although not surprised, that Mining Watch Canada has chosen to act as a Canadian blinkered cheerleader for the falsehoods and misrepresentations that have been perpetuated, and violent acts that have been staged, by South African activist Aubrey Langa who previously has been convicted by South African courts of furnishing false information, robbery and attempted murder.

Mr. Langa is recognized for waging what one prominent South African newspaper recently described as his “single-minded campaign” against the Platreef mine currently being developed by Ivanplats in Limpopo province. Continue Reading →

News Release: Is Ivanhoe Mining Informing its Shareholders of Ivanplats’ Real Risks, Liabilities, and Irregularities? (Mining Watch – May 18, 2016)

(Ottawa) Ahead of Ivanhoe Mines’ annual shareholders’ meeting tomorrow in Vancouver, community representatives and activists are asking if shareholders are prepared to condone the human rights abuses and illegal operations that they allege the company is responsible for as it pushes ahead with development of its Ivanplats (Platreefs) project in South Africa.

Community representatives from Mokopane, Limpopo Province, assert that the government has unlawfully granted the Canadian company permits for the relocation of hundreds of ancestral graves in an area excluded from its designated mining area. The community has protested to the government and the Canadian High Commission against the violation of graves and the lack of enforcement of laws and customary rules protecting them.

Derrick Tsita, spokesperson for Mokopane Interested and Affected Communities Committee (MIACC) says, “The granting of these permits is a final insult to our human rights and our human dignity.” Continue Reading →

Kyrgyzstan denounces Centerra directors, withholds votes again – by Peter Koven (Financial Post – May 18, 2016)

TORONTO — One of Centerra Gold Inc.’s Kyrgyz directors denounced the company at its annual meeting on Tuesday, saying there is “urgent need” for change at the management and board level.

“There are fundamental breaches of trust between Centerra and the government of the Kyrgyz Republic, which has led to instability of the Kumtor project,” Bektur Sagynov, deputy chairman at Kyrgyzaltyn JSC, told shareholders at the meeting in Toronto.

State-owned Kyrgyzaltyn, which controls 32 per cent of Centerra shares, also withheld votes for all of the gold miner’s non-Kyrgyz directors for the second straight year. It withheld votes on some directors in prior years. Continue Reading →

Billionaire George Soros buys US$263.7 million stake in Barrick Gold – by John Shmuel (Financial Post – May 17, 2016)

Soros Fund Management made a big bet on Barrick Gold Corp. in the first quarter, scooping up a US$263.7 million stake in the miner. The fund, chaired by billionaire investor George Soros, disclosed that it now owns 19.4 million shares in Barrick, making it Soros’ largest U.S.-listed holdings and giving him a 1.7 per cent stake in the miner.

The bet on gold and Barrick has certainly been profitable. Barrick’s stock is up 138 per cent this year, making it one of the best performers on the TSX.

Barry Allan, senior mining analyst at Mackie Research Capital Corporation, said that the acquisition is part of the big move back into gold miners that has become one of the hottest rallies of the year. Many managers on Bay Street had emptied out of Barrick and other gold names over the past couple of years, leaving the companies heavily undervalued. Continue Reading →

Rio Tinto reaches 100 million carats milestone at the Diavik diamond mine ( – May 17, 2016)

Rio Tinto, the operator of the Diavik diamond mine in Canada, has announced a major milestone of producing 100 million carats of rough diamonds since the mine commenced in 2003.

Rio Tinto Diamonds, Salt & Uranium managing director Simon Trott said “We are delighted to reach this milestone and I am enormously proud of the teams who have helped make this happen safely and responsibly in some of the harshest operating conditions in the world.”

The Diavik diamond mine, located on an island in a remote sub-arctic lake, is Canada’s largest diamond mine. The mine produces predominantly gem quality diamonds destined for high end jewellery in all major consumer markets around the world. Continue Reading →

Moody’s downgrades rail sector outlook as coal shipments drop – by Eric Atkins (Globe and Mail – May 17, 2016)

A plunge in the amount of freight moving on North American railways has spurred Moody’s Investors Service to downgrade the outlook for the sector to negative.

An “unprecedented” 37-per-cent year-over-year drop in coal shipments in April will help drive down overall freight volumes down by about 4 per cent this year and send revenues down by as much as 2 per cent for the major carriers, said Rene Lipsch, a Moody’s analyst.

“North American railroads face deeper and longer-lasting declines in freight volumes than we had previously anticipated,” Mr. Lipsch said in a note to clients on Monday. Coal carloads, which account for almost 30 per cent of the rail traffic in North America, have fallen by 33 per cent this year, according to the Association of American Railroads. Continue Reading →