Canadian Media Resource Articles – Page 290

Codelco’s lithium push fades in favor of copper – by Dave Sherwood and Fabian Cambero (Reuters Canada – March 5, 2019)

March 5, 2019

https://ca.reuters.com/

SANTIAGO (Reuters) – With the global race to secure lithium heating up in 2016, Chile’s president Michelle Bachelet wanted to be sure her country seized the moment. Home to half the world’s lithium reserves, Chile tapping its state-run miner Codelco to ramp up production seemed a sure bet.

Chile’s most trusted public enterprise, she said, could hunt for private partners to help it mine its own lithium for the good of all Chileans, and take part in the global boom for the battery metal used to power electric vehicles.

A review of regulatory filings, court documents and interviews with Codelco officials shows the strategy was deeply troubled from the start. Dwindling support inside Codelco to prioritize lithium projects over copper, company insiders said, was compounded by legal and regulatory hurdles that stalled development of the company’s two flagship salt flats known as Pedernales and Maricunga.

OPINION: Newmont’s combative counterattack does not mean Barrick Gold is defeated – by Eric Reguly (Globe and Mail – March 5, 2019)

March 5, 2019

https://www.theglobeandmail.com/

Barrick Gold’s lunge for Newmont Mining has officially gone hostile, extremely so, with Newmont formally rejecting the Canadian company’s US$17.8-billion offer and blasting its executive chairman, John Thornton, for shabby performance. But this is not the end of the story – don’t count Barrick out just yet.

On Monday, as expected, Newmont, America’s biggest gold company, told Barrick to hit the road. Its all-share, nil-premium offer, revealed on Feb. 25, was a non-starter, Newmont said in its presentation, arguing that Newmont’s proposed US$10-billion takeover of Vancouver’s Goldcorp was less risky and would create ample value for shareholders.

Newmont and its CEO, Gary Goldberg, lashed out at both Mr. Thornton and Barrick CEO Mark Bristow, though it was Mr. Thornton, the former Goldman Sachs boss who replaced the late Peter Munk as Barrick chairman in 2014, who took the most criticism.

‘Significant first step’: Feds fund new road to mineral-rich Arctic – by Bob Weber (CTV News/Canadian Press – March 4, 2019)

March 5, 2019

https://www.ctvnews.ca/business/

TORONTO — Northern leaders are cheering a federal funding announcement for a long-awaited all-weather road into the heart of Canada’s mineral-rich Arctic. “This is a significant first step,” said Wally Schumann, minister of industry and infrastructure in the Northwest Territories.

The $5.1 million outlined at a mining conference in Toronto is a small fraction of the total cost that is expected to exceed $1 billion.

But Schumann said the money will pay for planning and development of the first part of the road, which could be under construction within five years. “It’s one of the richest regions in North America,” he said.

Rush of gold mining M&A reflects a return to ‘bigger is better’ thinking – by Niall McGee (Globe and Mail – March 4, 2019)

March 5, 2019

https://www.theglobeandmail.com/

The world’s biggest gold miners have done a 180. After the failure of past blockbuster mining deals, such as Barrick Gold Corp.’s $7.3-billion purchase of copper producer Equinox Minerals Ltd. in 2011, the industry mostly abandoned size as a measure of success, in favour of profitability.

Over the past seven years, Barrick and others preached the gospel of the need to generate free cash flow, rather than increase production. But all of a sudden, the “bigger is better” mantra is back.

This time around, deal making among the world’s biggest gold companies is being spurred at least in part by the need to be as big, liquid and as geographically diversified as possible, to appeal to a wider investor base.

Barrick’s assets more ‘damaged’ than the company has disclosed: Newmont CEO – by Gabriel Friedman (Financial Post – March 5, 2019)

March 5, 2019

https://business.financialpost.com/

Newmont Mining Corp. officially rejected a US$17.8 billion hostile bid from Barrick Gold Corp. on Monday, and its chief executive Gary Goldberg went on the offensive.

In a call with investors and an interview with the Financial Post, Goldberg questioned why Barrick has not issued guidance beyond 2019, and suggested the company’s assets are in worse shape than has been publicly disclosed.

“Barrick has a problem and that’s why they need to push this,” he told the Financial Post. The bid by Barrick, which represents an eight per cent discount to the value of Newmont’s shares on the day it was proposed, has the potential to reshape the gold mining industry by creating an estimated US$42 billion company — which would be multiple times larger than its next nearest competitor.

Agnico Eagle CEO wary of ‘bigger is better’ mergers – by Gabriel Friedman (Financial Post – March 4, 2019)

March 4, 2019

https://business.financialpost.com/

His company wants nothing to do with the merger mania suddenly sweeping the gold mining sector

Speaking to a packed house on Sunday at the Prospectors and Developers Association Conference in downtown Toronto, Sean Boyd, chief executive of Agnico Eagle Mines Ltd., delivered a simple message: His company wants nothing to do with the merger mania suddenly sweeping the gold mining sector.

“The recent M&A is just competitive positioning among the biggest players in this business — not wanting to be left behind,” Boyd told a room of several hundred people.

The comments came as tens of thousands of mining investors and executives flock to Toronto for a conference that runs through Wednesday and has historically provided an opportunity for dealmaking, and for reflection on industry trends.

This commodity is hitting record highs. Here’s how Canadian investors can profit from it – by Brenda Bouw (Globe and Mail – March 4, 2019)

March 4, 2019

https://www.theglobeandmail.com/

A recent surge in the price of palladium, a precious metal primarily used to help lower vehicle emissions, has investors looking at how to play the sector to potentially reap future gains.

The spot price for the metal hit a record high of US$1,565.09 on Tuesday amid threats of a strike at a number of mines in South Africa, one of the world’s top palladium-producing countries. A work stoppage would further reduce the supply of the commodity which is already tight as demand for the metal continues to increase. While the price of palladium has retreated from its high earlier in the week, it has increased by more than 20 per cent so far this year.

About 85 per cent of palladium production goes toward manufacturing catalytic converters, which help to reduce emissions from automotive exhaust. Demand has soared amid tightening emissions standards around the world, particularly in emerging markets.

‘They’ve lost it’: Ontario falls sharply in ranking of mining jurisdictions – by Geoffrey Morgan (Financial Post – February 28, 2019)

February 28, 2019

https://business.financialpost.com/

Ongoing delays in developing the Ring of Fire mineral deposit is one issue hindering the province’s ability ‘to unlock its considerable mineral potential’

Once the biggest destination for mining investments in Canada, Ontario now ranks among the least attractive provinces in the country, according to a new survey of the global mining industry.

The Fraser Institute published its yearly survey of mining companies on investment perceptions Thursday, which showed Ontario had fallen from the seventh most attractive destination worldwide to 20th place. Canada’s most populous province also ranks ninth out of 12 jurisdictions in Canada ahead of only Nova Scotia, New Brunswick and Alberta, while Prince Edward Island was not ranked.

“In Ontario, we see a decline in investor perception, including over geology,” Fraser Institute senior policy analyst Ashley Stedman said, adding the province could improve its poor ranking with regulatory reforms and by making progress on Indigenous land claims.

Belgian fast-moving ‘caterpillar’ in deep sea copper, cobalt race – by Barbara Lewis (Reuters Canada – February 27, 2019)

February 28, 2019

https://ca.reuters.com/

LONDON, Feb 27 (Reuters) – Belgian group DEME and Canada’s DeepGreen are carrying out tests and research to collect nodules containing copper, cobalt and other minerals from the ocean floor, as a race to mine the depths gathers pace.

Deep sea mining is often dismissed as unaffordable and environmentally hazardous because of the potential risk to species science has barely begun to understand.

But U.N. talks in Jamaica, which began on Monday, are working out regulations on mining in international waters, which may appeal to companies struggling to find new reserves on land and to deal with governments and communities.

Ford government proposes to scrap controversial law placing ‘restrictions’ on development in northern Ontario – by Fatima Syed (National Observer – February 26, 2019)

February 27, 2019

https://www.nationalobserver.com/

The grand chief of the Nishnawbe Aski Nation (NAN) is cautiously welcoming a proposal by Premier Doug Ford’s government to repeal a 2010 law that his nation viewed as a form of colonialism.

Grand Chief Alvin Fiddler made the comments after Premier Doug Ford’s government announced a public consultation to repeal the Far North Act, legislation adopted by the former provincial Liberal government that gave First Nations some control over development in their traditional territories.

The government said on Monday that it was proposing to repeal the law with the aim of “reducing red tape and restrictions on important economic development projects” in the northern part of the province, including the Ring of Fire, all-season roads and electrical transmission projects.

Ontario Energy Minister tells Senate committee Bill C-69 skewed against economic productivity – by Shawn McCarthy (Globe and Mail – February 26, 2019)

February 27, 2019

https://www.theglobeandmail.com/

The federal government’s environmental assessment legislation falls far short of achieving a proper balance between economic development and protection for the environment, Ontario Energy Minister Greg Rickford told a Senate committee.

Mr. Rickford appeared late on Tuesday before the Senate committee that is reviewing the Liberal government’s Bill C-69, which overhauls how Ottawa reviews major resource and other development projects.

“We’re concerned with an omnibus type of environmental legislation that has the potential to significantly increase the amount of time these processes take, and we think … [is not] weighted sufficiently in favour of the economic productivity and activity that can arise from these projects,” Mr. Rickford said in an interview. “To the extent that Bill C-69 imposes lengthier processes, that’s not an appealing option for us. We don’t support it.”

Mount Polley disaster behind provincial safety upgrades, B.C. mines minister says – by Canadian Press (Globe and Mail – February 25, 2019)

February 27, 2019

https://www.theglobeandmail.com/

British Columbia’s Mines Minister says the Mount Polley tailings pond collapse is behind changes to increase safety and regulation enforcement in provincial mining operations.

Michelle Mungall said Monday the government will spend $20 million over the next three years to hire 65 safety and enforcement officials and improve the mine permit approval process in an effort encourage investment.

She said the changes were based on the results in the Mining Jobs Task Force report which made 25 recommendations to improve mine safety for workers and the environment, while spurring investment.

Don’t blame melting ice for polar bear attacks. Blame a bear baby boom – by Susan J. Crockford (Financial Post – February 27, 2019)

February 27, 2019

https://business.financialpost.com/

Opinion: Some scientists still think it’s OK to mislead the public to promote climate change alarm

February 27th is International Polar Bear Day, and what interesting timing it happens to be this year. In recent weeks the media have been all over the news that the Russian village of Belushaya Guba, on the Novaya Zemlya archipelago in the southern Barents Sea had declared a state of emergency because more than 50 aggressive and fearless polar bears had invaded the community.

Protected status for the bears meant deadly force was not an option for terrified residents, yet non-lethal efforts to get the bears to leave had been futile.

Predictably, the blame was immediately put on sea-ice loss due to climate change — not by a scientist but by a Norwegian journalist who initially reported the story, adding in his own homemade, unscientific analysis.

Why a Barrick takeover of Newmont would do little for gold investors – by Ian McGugan (Globe and Mail – February 27, 2019)

February 27, 2019

https://www.theglobeandmail.com/

Many people have described Barrick Gold Corp.’s hostile takeover offer for Newmont Mining Corp. as audacious. A better word might be “unnecessary.”

Unnecessary, that is, from an investor’s perspective. A successful bid would no doubt do wonders for the compensation of Barrick executives, who would wind up running the biggest gold company in the world by far.

However, a tie-up between Barrick and Newmont would do relatively little for gold lovers, who can already target all the precious-metals exposure they want through other channels.

OPINION: Canada’s natural resources are an advantage in a digital economy – by Aaron Henry (Globe and Mail – February 25, 2019)

February 27, 2019

https://www.theglobeandmail.com/

Aaron Henry, director of resource and environmental policy, Canadian Chamber of Commerce.

There is no shortage of hype and enthusiasm for artificial intelligence, internet of things applications and, of course, blockchain technologies; and nor should there be. These technologies bear significant social and economic promise.

While everyone clamours for insight into how these technologies will affect the future of work, another massive effect these technologies may have in store for Canada’s economy remains overlooked: how Canada’s natural resources will play a critical part in supporting that transformation.

The evolution of automation, remote working, digital currencies and services will pose significant challenges to Canada’s tax base and therefore the country’s ability to offer essential services. The ability of companies to move the revenues from their digital services from high-tax to low-tax jurisdictions has started to undermine government capacity to collect tax revenue.