Archive | Saskatchewan Mining

Potash Market Rebound in ‘Full Force’ as Global Demand Improves – by Jen Skerritt (Bloomberg News – April 27, 2017)

https://www.bloomberg.com/

Potash prices are recovering after a decade of weakness, lifting the prospects of a turnaround in fortunes for fertilizer companies following a slump in farm spending.

Potash Corp. of Saskatchewan Inc., the world’s second-biggest producer, boosted its full-year earnings forecast on Thursday and said strong demand will continue for the rest of the year as North American farmers seek to replenish soil nutrients after record harvests. Chinese potash shipments are expected to increased in 2017, it added.

The Canadian company’s performance suggests the potash recovery is in “full force,” Sanford C. Bernstein & Co. analyst Jonas Oxgaard said in a note. Canpotex — the joint venture handling overseas sales for Potash Corp. and its two largest North American peers, Agrium Inc. and Mosaic Co. — has kept the market tight and driven up prices, while volumes have exceeded expectations in North America and export markets, a positive sign for the companies, he said. Continue Reading →

Western Potash announces plans to move ahead on Milestone Project – by Ashley Robinson (Regina Leader-Post – April 16, 2017)

http://leaderpost.com/

The Rural Municipality of Lajord isn’t holding its breath when it comes to the Western Potash project at Milestone. “(Western Potash) told us eight years ago they’re going to be (building it) so thats the bottom- line. I can’t get excited anymore, when we see things move ahead then we’ll start getting excited,” said Erwin Beitel, reeve of RM of Lajord.

The long-delayed potash mine is once again slated to move forward. On Tuesday, Western Potash held an open house in Kronau — one of many held over the years.

The project was first proposed in 2009, with an original plan to produce 2.8 million tonnes of potash per year. At the time potash prices were US$400 per tonne, but then the economy dipped and potash prices fell, causing the project to be delayed. Continue Reading →

Federal government passes landmark First Nations mining regulations – by Alex MacPherson (Saskatoon StarPhoenix – March 30, 2017)

http://thestarphoenix.com/

A landmark law passed this week by the federal government helps pave the way for a Saskatchewan First Nation and a Toronto-based potash development company to build the country’s first on-reserve mine northeast of Regina.

The “unprecedented” legislation under the First Nations Commercial and Industrial Development Act (FNCIDA) will apply provincial regulations to the $3-billion mine proposed by Enancto Potash Corp. and Muskowekwan First Nation.

“This represents a critical piece … to ensure a favourable investment climate for the development of the first potash mine on First Nations land,” Encanto president and CEO Stavros Daskos said in a statement. Continue Reading →

NEWS RELEASE: First Nations Commercial and Industrial Development Act Finalized by Order in Council to Allow for Future on Reserve Potash Mine Development

TSXV: EPO

VANCOUVER, March 29, 2017 /CNW/ – Encanto Potash Corp. (“Encanto” or the “Company”) (TSXV: EPO) announces that an Order in Council P.C. 2017-258 was issued on March 24, 2017 by the Governor in Council, ending a multi-year process that has culminated in the successful conclusion of the First Nations Commercial and Industrial Development Act (“FNCIDA”) process and the delivery of the Muskowekwan First Nation Solution Potash Mining Regulations into law.

The process enables the Muskowekwan First Nation, who had decided to pursue a large scale commercial or industrial on-reserve project (in this case, a large scale potash mine partnered with Encanto Potash) to request the Government of Canada to develop regulations applying to this specific project on a specific piece of reserve land.

FNCIDA works by essentially reproducing the provincial rules and regulations that apply to similar large-scale commercial or industrial projects off reserves and applying them to a specific on-reserve project. Continue Reading →

Miners shy away from investing in Ontario: land claim uncertainty to blame, report says – by Angela Gemmill (CBC News Sudbury – March 01, 2017)

http://www.cbc.ca/news/canada/sudbury/

Want to invest in mining? Fraser report says look to Manitoba and Saskatchewan

When it comes to investment in mineral exploration, Ontario has dropped into a slump, the latest report from the Fraser Institute says. The think-tank recently rated 104 regions around the world on their geological and regulatory attractiveness to those looking to invest in mineral exploration.

The report named Saskatchewan as the top jurisdiction for investment. The prairie province moved up to first from second place in 2015. Manitoba moved up to second place this year after ranking 19th the previous year.

Western Australia dropped to third, after Saskatchewan displaced it as the most attractive jurisdiction in the world. Rounding out the top-10 are Nevada, Finland, Quebec, Arizona, Sweden, the Republic of Ireland, and Queensland. Ontario dropped three spots this year to 18th place. The reason? Mining companies are put off by the uncertainty around land claims in Ontario, the report says. Continue Reading →

Encanto Potash and Muskowekwan First Nation sign new mining regulation agreement – by Alex MacPherson (Saskatoon StarPhoenix – February 28, 2017)

http://thestarphoenix.com/

Encanto Potash Corp. has signed an agreement with Muskowekwan First Nation and the provincial and federal governments that it says will pave the way for construction of its proposed potash mine on the reserve northeast of Regina.

The agreement is expected to lead to the first First Nations Commercial and Industrial Development Act (FNCIDA), legislation that applies existing provincial rules to large-scale projects on First Nations land, the Toronto-based company said in a news release.

“By achieving this milestone, the first ever for such a planned large scale operation in Canada, we have been breaking entirely new ground,” Muskowekwan Chief Reginald Bellerose said in a statement. Continue Reading →

World’s biggest miner hasn’t given up hope for potash – by Cecilia Jamasmie (Mining.com – February 21, 2017)

http://www.mining.com/

BHP Billiton (ASX, NYSE:BHP) (LON:BLT), the largest mining company by market capitalization, sees potash as a key commodity in which to base its future growth despite prices are still hovering just above $210 a tonne, less than a half what they were only five years ago.

“Our preference long term is to grow in oil and copper, then possibly potash,” the firm’s chief executive officer Andrew Mackenzie said when releasing first half of the year results Tuesday.

BHP seems to be in no rush to advance its massive $2.6 billion Jansen potash project in Canada’s Saskatchewan province. For years the company has been sinking shafts and installing some infrastructure on site, but has not fully committed itself to the project, nor received board approval for the mine. Continue Reading →

Tepco invokes ‘Act of God’ clause on Cameco deal, but it seems more like a Hail Mary – by Drew Hasselback (Financial Post – February 15, 2017)

http://business.financialpost.com/

Tokyo Electric Power’s move to pull the plug on an agreement with Canadian uranium miner Cameco Corp. is the latest example of a company arguably stretching the traditional use of a force majeure or “Act of God” clause to suspend a contract.

Tokyo Electric Power Co. Holdings Inc. argues that it has been unable to operate its nuclear power plants in Japan because of government regulations enacted after the 2011 Fukushima nuclear disaster. The accident was caused by an earthquake and resulting tsunami. Centuries of legal tradition should easily place those natural disasters within anyone’s definition of Acts of God.

You probably can’t say that for government-made regulation, though Tepco’s obvious point is there wouldn’t be regulation but for those preceding Acts of God. Maybe it is legally possible to say those natural disasters started a chain reaction of unforeseeable events, including more government regulation. It depends on the wording of the force majeure clause in the contract between Tepco and Cameco. Continue Reading →

Uranium market conditions last year were the worst in 30 years, says Cameco Corp CEO – by Sunny Freeman (Financial Post – February 11, 2017)

http://business.financialpost.com/

Uranium market conditions in 2016 were the toughest that Cameco Corp. CEO Tim Gitzel has seen in his 30 years in the business, but he says he remains cautiously optimistic about the long-term picture.

“We’ve been saying for some time that uranium prices are neither rational nor sustainable,” Gitzel told investors during a conference call Friday to discuss its dismal 2016 earnings. “Current prices are failing to incent the investment decisions required to ensure reliable supply is available to meet growing demand out into the future.”

Cameco reported a fourth-quarter net loss attributable to shareholders of $144 million, or 36 cents per share, which was more than 10 times larger than the loss of $10 million, or three cents per share, reported in the year-earlier period. The fourth quarter of 2016 included an impairment charge of $238 million. The company booked a $210 million impairment charge in the 2015 quarter. Continue Reading →

Cameco’s brief respite from the uranium slump coming to an end – by Tim Shufelt (Globe and Mail – February 6, 2017)

http://www.theglobeandmail.com/

The financial aftershocks of the catastrophic 2011 Japanese earthquake continue to ripple through the uranium market, which, six years later, cannot seem to escape its perpetual slump. The latest reprieve from the brutal selloff is starting to look like yet another false start, merely interrupting an otherwise downward trajectory.

Canadian uranium-mining champion Cameco Corp. itself sought to rein in the market’s budding enthusiasm by calling the Street’s earnings estimates unrealistic in mid-January and warning of a 2016 loss. How big a loss will be revealed when the company reports its financials this Thursday.

“I think it’s a no-touch situation from an investment perspective for at least a year,” said John Stephenson, president of Stephenson & Co. Capital Management. Continue Reading →

Cameco Corp will fight after Tokyo Electric cancels $1.3 billion contract – by Sunny Freeman (Financial Post – February 2, 2017)

http://business.financialpost.com/

Cameco Corp. said Wednesday it has rejected a key Japanese customer’s attempt to cancel its contract — a move that would mean $1.3 billion in lost revenue — as the Saskatoon-based uranium giant works to protect deals signed with customers before the market tanked.

Tokyo Electric Power Company Holdings Inc. issued a termination notice for a uranium supply contract on Jan. 24. On Monday, the Japanese power company said it would not accept a delivery scheduled for Tuesday.

Cameco shares plunged 11.29 per cent to end the day at $14.70 on the Toronto Stock Exchange. Tepco alleges a “force majeure” event — or an act of God — has occurred because it has been unable operate its generating plants for the past 18 months due to government regulations enacted after the disastrous Fukushima nuclear accident of 2011. Continue Reading →

Cameco Corp will fight after Tokyo Electric cancels $1.3 billion contract – by Sunny Freeman (Financial Post – February 1, 2017)

http://business.financialpost.com/

Cameco Corp. said Wednesday it has rejected a key Japanese customer’s attempt to cancel its contract — a move that would mean $1.3 billion in lost revenue — as the Saskatoon-based uranium giant works to protect deals signed with customers amid lower uranium prices.

Tokyo Electric Power Company Holdings Inc. issued a termination notice for a uranium supply contract on Jan. 24. On Monday, the Japanese power company said it would not accept a delivery scheduled for Tuesday. Cameco shares plunged 12 per cent just after the opening bell to $14.59 on the Toronto Stock Exchange.

Tepco alleges a “force majeure” event — or an act of God — has occurred because it has been unable operate its generating plants for the past 18 months due to government regulations enacted after the disastrous Fukushima nuclear accident of 2011. Continue Reading →

Interview with David Cates, President & CEO of Denison Mines (Resource World – January 26, 2017)

http://resourceworld.com/

Denison Mines Corp. [DML-TSX; DNN-NYSE MKT] is launching a major uranium exploration program on its mineral holdings in the prolific Athabasca Basin of northern Saskatchewan. Their $14.5 million (Denison’s share) budget will be focused on the 60%-owned flagship Wheeler River Project. Cameco holds 30% and JCU Canada 10%. Denison also has a 22.5% interest in the operating McClean Lake uranium mill.

At the Wheeler River property, the Phoenix deposit has indicated resources of 70.2M lbs U3O8 grading 19.1% U3O8, and is the highest grade undeveloped uranium deposit in the world. The Gryphon deposit is hosted in basement rock, approximately 3 km northwest of Phoenix, and hosts inferred resources of 43M lbs U3O8 grading 2.3% U3O8.

In an interview with Resource World, David Cates, President and CEO, discusses the outlook for the uranium sector.

RESOURCE WORLD: Talking to investors and mining executives, I’m getting two kinds of comments: 1) Uranium is asleep and will stay that way for some time, and 2) the price of uranium is just now starting to recover. What is your take on the uranium price scenario? Continue Reading →

UPDATE 4-Potash slump drags on as competition overheats – by Rod Nickel (Reuters U.S. – January 26, 2017)

http://www.reuters.com/

Jan 26, 2017 – The deepest slump in a decade for the oversupplied potash fertilizer market may abate only slightly in 2017, major producers say, and could take years to correct due to the imminent startup of new mines.

Canada’s Potash Corp of Saskatchewan Inc , the biggest fertilizer producer, forecast a much less profitable year on Thursday than analysts expected, and reported a surprisingly big drop in quarterly profit.

Potash prices are hovering around their lowest levels since 2007, amid bloated capacity and weakening farm incomes. Adding to miners’ problems, new low-cost mines are scheduled to begin production. Continue Reading →

Cameco defends decision to tell analysts they were wrong, but sees oversupply issues fading – by Sunny Freeman (Financial Post – January 20, 2017)

http://business.financialpost.com/

Cameco Corp. is more optimistic about long-term demand for uranium than it it has been for five years, a top executive said Thursday after its stock price tumbled following the company’s unusual warning to analysts they were too bullish on the company’s 2016 performance.

The Saskatoon-based uranium miner took an extraordinary step Tuesday by issuing an announcement that analysts’ estimates for the company’s full-year results were too high. It said it expected to report a 2016 loss Feb. 9. The company’s share price lost about 10 per cent of its value on Wednesday but recovered nearly as much Thursday when it traded around $15.60 per share at midday on the Toronto Stock Exchange.

Grant Isaac, Cameco’s chief financial officer, told the TD Securities Mining Conference that the company felt compelled to “correct what we felt was a misalignment in earnings expectations,” noting that restructuring costs from shuttered operations and legal costs associated with a tax dispute will weigh on its 2016 balance sheet. Continue Reading →