Canada Mining – Page 187 – Republic of Mining

Is gold headed for a correction? Top consultancies offer up mixed price outlooks for 2016 – by Peter Koven (Financial Post – April 1, 2016)

April 1, 2016

http://business.financialpost.com/

TORONTO — The world’s top two gold consultancies have offered up mixed outlooks for prices in 2016.

Metals Focus and Thomson Reuters GFMS each launched their 2016 gold reports on Thursday. Both firms are cautious on gold in the short term, as they see prices pulling back in the second quarter after rising a whopping 16 per cent in the first quarter. But Metals Focus thinks the second half of 2016 will be very strong, while GFMS is optimistic but more guarded.

Metals Focus predicted gold will peak at US$1,350 an ounce in the fourth quarter, up from US$1,235 currently. The London-based firm said there are clear signs that the consensus on gold has “changed profoundly” as investors now believe the U.S. Federal Reserve will hike interest rates at a far slower pace than previously assumed. The Fed has become increasingly dovish due to economic headwinds.

Alberta’s coal-power phaseout will begin in 2018, industry association says – by Geoffrey Morgan (Financial Post – April 1, 2016)

April 1, 2016

http://business.financialpost.com/

CALGARY – The phase-out of coal-fired power generation in Alberta will begin in 2018, not the mandated 2030 deadline, the president of the Coal Association of Canada said Thursday.

Speaking at the launch of a campaign asking cabinet ministers to consider the impact of the policy on coal-mining communities, Robin Campbell said coal-fired power companies would either scale-back their electricity production or shut down their plants earlier than expected to avoid carbon levies.

“The real date will be 2018,” Campbell said, adding that the phase-out of coal is “going to hurt small towns that are built around these mines and these power plants.”

Greece says Canada’s Eldorado should compromise on gold mine project (Reuters U.S. – March 31, 2016)

April 1, 2016

http://www.reuters.com/

Greece said on Thursday that Canadian miner Eldorado Gold needs to reach a “compromise” with local communities and the government to move ahead with its gold mine project in the country.

The Vancouver-based miner had been in a dispute with Athens over plans to develop gold mines in a forested area in northern Greece, with the leftist government revoking its permit last summer over environmental concerns.

Tensions came to a head in January, when Eldorado said Athens was delaying the necessary permits. The company halted construction of its Skouries mine in Halkidiki and threatened to do the same with the Olympias mine unless a permit was granted on time.

Mining: Eritrea digs deep for jobs – by Mark Anderson (The Africa Report – March 31, 2016)

March 31, 2016

http://www.theafricareport.com/

Eritrea’s hobbled economy will get a boost when new gold, copper and zinc mines begin production. Despite the commodity crisis, the government is banking on the sector to provide much-needed jobs.

The evening sun casts a glow over the Bisha mine as the last dump trucks of the day climb up gravel tracks on their way to a refinery, where copper and zinc ore will be processed and shipped off for sale on the world market. This is Eritrea’s first operational mine and the government hopes that three more will jump-start the economy when they come online in the next two years.

Bisha has contributed more than $755m to the Eritrean economy since it began production in February 2011, according to Nevsun Resources, the Canadian mining company that owns 60% of the mine.

Tasiast mine expansion gives Kinross some hope amid commodities slump – by Ian McGugan (Globe and mail – March 31, 2016)

March 31, 2016

http://www.theglobeandmail.com/

Five years and billions of dollars after venturing into West Africa, Kinross Gold Corp. is finally delivering some encouraging news from its Tasiast mine.

The Toronto-based miner said Wednesday it is going ahead with the first stage of a two-phase expansion designed to boost gold production and drive down costs at the problem-plagued project.

The resulting output from the mine in Mauritania will be considerably smaller than first envisioned back in the heady days of 2010, when commodity prices were booming and Kinross paid $7.1-billion (U.S.) for Red Back Mining Inc., owner of Tasiast.

Commodities rebound seen faltering as demand stalls – by Ian McGugan (Globe and Mail – March 30, 2016)

March 30, 2016

http://www.theglobeandmail.com/

Prices for copper and oil are poised to fall, according to a new report that adds to the growing skepticism around the great commodity revival.

Kevin Norrish, a widely followed analyst with Barclays PLC, warns that raw materials prices could get trampled if the buyers who have piled into the commodity sector during recent weeks decide to simultaneously rush for the exits.

“Investors have been attracted to commodities as one of the best performing assets so far in 2016,” he said. “However, in the absence of any concerted fundamental improvements, these returns are unlikely to be repeated in the second quarter, making commodities vulnerable to a wave of investor liquidation.”

Kinross Gold Corp to proceed with first phase of Tasiast expansion – by Peter Koven (Financial Post – March 30, 2016)

March 30, 2016

http://business.financialpost.com/

Kinross Gold Corp. has greenlighted development of the first phase of its Tasiast expansion project in Mauritania, positioning the company to finally generate some value from the long-troubled operation.

Toronto-based Kinross plans to invest US$300 million to boost capacity at the Tasiast mill to 12,000 tonnes a day, up 50 per cent from the current level. That move is expected to increase production at the mine by 87 per cent to 409,000 ounces a year, according to a feasibility study, and make the money-losing operation profitable.

The ultimate plan is to implement a second phase of the expansion, which would boost capacity to 30,000 tonnes a day and raise annual production to 777,000 ounces. The estimated cost for that second phase is US$620 million, and Kinross expects to make a decision on it by the end of 2017.

Hybrid airship deal expected to benefit oil and mining industries – by Bill Graveland (Canadian Business – March 30, 2016)

March 30, 2016

http://www.canadianbusiness.com/

The Canadian Press – CALGARY – The long-held vision of giant airships nearly the length of a Canadian football field delivering workers and supplies to the oilsands and the North’s mining sector is a step closer to reality.

U.S.-based Lockheed Martin has announced it has a letter of intent to sell 12 hybrid airships to Straightline Aviation of the United Kingdom. Straightline and Hybrid Enterprises, Lockheed Martin’s hybrid airship reseller, are finalizing the purchase agreement, which has a potential value of US$480 million.

Straightline expects to start receiving the airships, which have a maximum speed of 110 kilometres an hour and a cargo capacity of 20 tonnes, in 2018 with the final ones arriving by 2021.

Pressure mounts on Ottawa to join wide ban on asbestos – by Tavia Grant (Globe and Mail – March 28, 2016)

March 30, 2016

http://www.theglobeandmail.com/

Dozens of groups are pressing Ottawa to join more than 50 countries in banning asbestos, a move the Liberal Party supported while in opposition.

A letter sent to Prime Minister Justin Trudeau this month notes that Canada still allows the use of asbestos and lacks a comprehensive strategy to phase out the substance or to promote safe substitutes.

Separately, the Canadian Cancer Society has also sent a letter to the government, a copy of which was given to The Globe and Mail, calling for a nationwide ban on all asbestos products, a rare step for the country’s largest national health charity.

Once reviled, gold hedging makes an unexpected return – by Peter Koven (Financial Post – March 26, 2016)

March 29, 2016

http://business.financialpost.com/

New Gold Inc. was braced for a vicious backlash from the investment community when it decided to hedge some gold production earlier this month.

After all, hedging is the gold industry’s ultimate dirty word. It became such a toxic subject during the last decade that most chief executives decided that even talking about it was off limits. And New Gold is led by Randall Oliphant, who headed up Barrick Gold Corp. back when it had the biggest — and most reviled — hedge book in the business.

But the response to New Gold’s move wasn’t negative. Instead, almost everyone cheered. “We’ve heard nothing but positive reactions from shareholders, analysts and media people to what we did,” said Oliphant, New Gold’s executive chairman. “So that will give other people who want to do this sort of stuff some ammunition.”

Why you should take this commodities rally with a grain of salt – by Joe Chidley (Financial Post – March 29, 2016)

March 29, 2016

http://business.financialpost.com/

Signs are beginning to surface that the global commodities implosion has reached bottom. The questions for investors, though, are how long the relative good times will last, and just how good they will be.

On the surface, at least, the news has been positive. Last week, the Baltic Dry Index — which reflects the price of moving dry goods by sea, is often considered an indicator of global commodities demand and trade, and has nothing to do with drought in Estonia — finished above 400, which represents a 38 per cent increase in a little more than six weeks.

Meanwhile, spot prices for iron ore have risen by nearly 30 per cent this year, and are now well out of the trough they dug last December. Base metals like zinc and copper are also up by double-digit percentages on the year. Futures for benchmark West Texas Intermediate crude (not dry, but anyway) have soared 50 per cent since testing US$26 on Feb. 11.

What exactly is a ‘nation-to-nation’ relationship? – by Jeffrey Simpson (Globe and Mail – March 25, 2016)

March 29, 2016

http://www.theglobeandmail.com/

The Trudeau government wants to improve the lot of aboriginal peoples in Canada. It wishes to elevate their economic standing, give them more control over their own lives, improve their often lamentable social circumstances and engage in “nation-to-nation” relationships.

How a “nation-to-nation” relationship is supposed to work between Canada, with 36 million people, and more than 600 indigenous nations, often with fewer than 1,000 people, remains one of Canada’s policy mysteries. It is one of those phrases that falls off political tongues, but is made difficult when confronted by reality.

That reality is made murkier by disagreements across Canada about who “owns” or has ultimate title to land, disagreements fuelled by court decisions that have been interpreted by indigenous groups as giving them title, even without a proven claim.

Barrick chairman John Thornton takes $10-million cut in pay – by Ian McGugan (Globe and Mail – March 24, 2016)

March 29, 2016

http://www.theglobeandmail.com/

John Thornton has finally addressed the recurring outcry over his compensation – by taking a nearly $10-million (U.S.) cut in pay. The executive chairman of Barrick Gold Corp. will receive $3.1-million for his work in 2015, a dramatic reduction from the $12.9-million he pocketed for 2014.

Shareholders have twice voted against Mr. Thornton’s compensation package in recent years through non-binding “say-on-pay” resolutions, and he had vowed to address investors’ anger on the issue.

“Last year, our shareholders voiced concern about how we compensated our executive chairman,” said J.B. Harvey, chair of Barrick’s compensation committee. “We have listened carefully to their feedback.”

[Canada] Another world class diamond discovery? – by Marc Davis (BNW News/Mineweb.com – March 28, 2016)

March 29, 2016

http://www.mineweb.com/

There have been no significant discoveries for a while.

Finding a multi-billion dollar diamond discovery is something that geologist Buddy Doyle dreams of every day. For well over a decade, it’s been his obsession.

But it would be foolish to dismiss him as a self-deluded wishful thinker. History bears testament to him being quite the opposite. Which is because he’s done it all before, unearthing a rich diamond deposit — that became the Diavik mine — in Canada’s far north, while still a relatively youthful up-and-comer. This is when he was exploration manager for Kennecott Canada Exploration Inc. — a subsidiary of the world’s biggest mining company, Rio Tinto plc.

Within weeks, we’ll know if Doyle can do it again. And he likes his odds, even though they’re still a long shot at best. Now in his 50s, he’s far shrewder and scientifically savvier than the first time around, he points out.

Federal budget 2016 extends 15% mining exploration tax credit to March 2017, providing break for junior miners – by Drew Hasselback (Financial Post – March 23, 2016)

March 23, 2016

http://business.financialpost.com/

Canadian junior mining companies can breathe a sigh of relief as Budget 2016 extends a tax break for exploration companies that finance their exploration using so-called “flow-through” shares.

The federal government has extended the 15 per cent mineral exploration tax credit, which was slated to expire on March 31, until the end of March 2017.

“Given this is a challenging time for junior mining companies, the government proposes to support their mineral exploration efforts by extending the credit for an additional year,” the budget documents state.