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Poor forecasting triggers big writedowns for miners while some get lucky, study shows
Mining companies must improve their metal price forecasting to reduce mine failures and increase long-term returns for investors, according to a new study.
Tumbling metal prices account for more than half all of impairment charges, declared when fixed assets fall below market values, the study of 105 TSX-listed mining companies found. They incurred $68 billion in charges from 2002 to 2015. Using unfamiliar technology and locating in developing countries also contributed, data show.
Metal price drops accounted for 143 of 268 cases and $25.2 billion in impairment charges, according to the study published last month in Resources Policy, an international journal on mineral rules and economics with editors in the United States, Australia and China. The research appears appropriate at a time when nickel and lithium prices have crashed from 2022 highs as gold has set new records.
“While impairments have been shown to be a common occurrence across mining companies, they also are a major contributor to the industry’s low average returns,” said the authors led by Andrew Gillis of Edmonton-based Aurora Hydrogen.
“The degree of impairments is higher at mines in developing countries and at mines where the geographic location and mining processes are new to the company operating the mine,” said the authors, which included John Steen and W. Scott Dunbar of the Department of Mining Engineering at the University of British Columbia in Vancouver, and Andrew von Nordenflycht of the Beedie School of Business at Simon Fraser University in Burnaby, BC.
Breakdown of reasons for 268 impairment charges during 2002-2015. Credit: Resources Policy Get luckyForecasting by its nature is uncertain. But some firms get lucky and only face a few impairments, while others get unlucky and suffer many or large impairments, the authors said. Their targeted years of research coincided with the rise of the commodity super-cycle 20 years ago followed by the financial crisis and declining metals prices from 2012.
The group recommended mining companies should improve their forecasting of mineral reserves, capital costs, production costs and commodity prices, which all impact future cash flows. It noted how C-suites might blame falling metal prices for impairments because other slips in capital or operating costs could be directly attributed to their own forecasting. The flip side is that rising metal prices can hide some other forecasting errors. And forecasting in foreign lands is simply more difficult, the authors said.
“Higher impairments in developing countries stem from lower information availability about market conditions and/or more volatile local market prices and conditions,” the authors said. “The sources of uncertainty are just greater, making forecasts harder and forecast errors easier, even for experienced forecasters.”
Breakdown in reasons of impairments according to amounts in thousands of Canadian dollars. Credit: Resources PolicyIn the end, the researchers recommended more studies on forecasting. They could try to pinpoint the root causes of forecasting errors through personal interviews with project participants, detailed comparisons of feasibility studies and actual outcomes as well as assessing their methods of error prevention.
“Asset impairments have been identified as a primary determinant of long-term shareholder returns across Canadian mining firms,” the authors said. “Our findings suggest looking more closely into price forecasting procedures at mining companies to see if certain techniques or circumstances lead to more or fewer price-driven impairments.”
Northern Dynasty takes EPA’s Pebble veto to court
Northern Dynasty Minerals (TSX: NDM) (NYSE American: NAK) said on Friday it has filed two separate actions in the federal courts challenging the US government’s actions to prevent the company from building a mine at its Pebble project in Alaska.
The first, and main focus of Northern Dynasty’s legal actions, was filed with Alaska’s federal district court, seeking to vacate the US Environmental Protection Agency’s (EPA) veto of a development at Pebble.
The proposed mine would have become the largest copper, gold and molybdenum extraction site in North America. However, for the better part of two decades, the project was met with strong resistance due to its potential environmental impact. The Bristol Bay area, where the mine would be located, is home to the world’s largest sockeye salmon fisheries.
In January 2023, the EPA made its decision to block Northern Dynasty’s US-based subsidiary from storing mine waste in the Bristol Bay watershed, essentially killing the project.
In its complaint, the company alleges that the EPA veto was issued in violation of various federal statutes regarding Alaska’s statehood rights and a land exchange approved by Congress.
Specifically, it claims that the veto decision was based on an “overly broad legal interpretation” of EPA’s jurisdiction, which has since been overruled by the Supreme Court, its geographic scope exceeds that allowed by the statute, and it was based on information previously developed by EPA in what it calls “an illegal pre-emptive veto process” that was designed to reach a predetermined result.
The company also says the factual basis stated to support the veto is directly contradicted by the July 2020 environmental impact statement published by the United States Army Corps of Engineers (USACE), which is an important part of the administrative record.
“The EPA has not demonstrated that either the development of the Pebble deposit will have unacceptable adverse effects under Section 404(c), or that there are any impacts to Bristol Bay fisheries that would justify the extreme measures in the final determination (veto),” Northern Dynasty said in a news release.
“Whatever authority the EPA may have under section 404(c), the general provision in the Clean Water Act cannot authorize the EPA to take action to block the specific economic activity that was Congress’s express purpose for granting these lands to the State of Alaska under the Cook Inlet Land Exchange,” Northern Dynasty CEO Ron Thiessen said.
The other legal action was filed with the US Court of Federal Claims in Washington, DC, claiming that the actions by the EPA represent an unconstitutional “taking” of Northern Dynasty’s property. To that extent, the company is asking the court to defer considering this action until the above-mentioned EPA veto case is resolved.
“Our permitting strategy is focused entirely on winning the EPA veto case and permitting the Pebble project. We have filed a takings case against the federal government to preserve our ability to seek compensation for a violation of our rights in line with the protections under the Fifth Amendment,” the company said.
Still, according to Thiessen, the company’s priority is to advance the district federal court complaint, because “overturning the illegal veto removes a major impediment from the path of getting the permit to build the proposed mine.”
Over an estimated 20-year mine life, Pebble is expected to churn out 6.4 billion lb. of copper; 7.4 million oz. of gold and 300 million lb. of molybdenum, plus 37 million oz. of silver and 200,000 kg of rhenium.
Northern Dynasty’s shares rose by 1.1% to C$0.44 by 10:45 a.m. ET, trading between a 52-week range of C$0.28-C$0.58. The company has a market capitalization of C$239.6 million ($177.3m).
Mining People: Armac, BCCICE, Founders, Perpetua, Argentum, CopperEx, Euromax, Tectonic
Armac Resources named Paul Johnston VP exploration, following the resignation of Roy Greig.
The B.C. Centre for Innovation and Clean Energy appointed Sarah Goodman as president and CEO.
Founders Metals named Natalie Senger VP of resource development.
Perpetua Resources appointed John Cherry to succeed Laurel Sayer as president and CEO.
Board changes:Argentum Silver announced the resignation of Albert Contardi from the board.
CopperEx Resources named Tom Yip to the board.
Euromax Resources said Nicolas Treand has resigned as executive director.
Great Eagle Gold celebrated the appointment of Patricia Kovacevic to the board of the International Green Gold Council.
Pierre Clement became a director of Kobrea Exploitation.
Prospector Metals offered Ian Parkinson a seat on its board.
Rover Critical Minerals named Gunnar Pedersen to the board.
Silverstock Metals announced the resignation of Colin Little from the board.
Tectonic Metals added John Armstrong to its board.
Cost advantage of natural hydrogen sparks energy companies’ interest – report
At the end of 2023, 40 companies were searching for natural hydrogen deposits, up from just 10 in 2020, new research by Rystad Energy shows.
According to the Oslo-based business intelligence company, exploration efforts are underway in Australia, the US, Spain, France, Albania, Colombia, South Korea and Canada.
In its report, Rystad points out that one of the most promising elements of natural hydrogen – also called white or gold hydrogen – is its cost advantage over other forms of hydrogen due to its natural occurrence.
Grey hydrogen, produced from fossil fuels, costs less than $2 per kilogram of hydrogen on average, while green hydrogen, produced using renewable electricity, is currently more than three times pricier. The cost of renewable hydrogen is expected to come down as electrolyzer pricing falls in the coming years, and yet, white hydrogen is still expected to be cheaper.
At present, Canada-based producer Hydroma extracts white hydrogen at an estimated cost of $0.5 per kg. Depending on the deposit’s depth and purity, projects in Spain and Australia aim for a cost of about $1 per kg, solidifying white hydrogen’s price competitiveness.
In addition to the cost advantage, white hydrogen can also have a low carbon intensity. At a hydrogen content of 85% and minimal methane contamination, the carbon intensity is around 0.4 kg carbon dioxide equivalent (CO2e) per kg hydrogen gas (H2) – including embodied emissions and hydrogen emissions. At 75% hydrogen and 22% methane, the intensity rises to 1.5 kg CO2e per kg H2.
“Although still in its infancy with lots of uncertainty, white hydrogen has the potential to be a game-changer for the clean hydrogen sector as an affordable, clean natural resource, thereby shifting the role of hydrogen from an energy carrier to part of the primary energy supply. However, the actual size of the reserves is still unclear, and the transportation and distribution challenges of hydrogen remain”, Minh Khoi Le, head of hydrogen research at Rystad, said in a media statement.
Through the US Inflation Reduction Act, companies are eligible to receive production tax credits (PTC) when the lifecycle carbon intensity is below 4 kg CO2e per kg H2. The highest PTC tier grants $3 per kg if hydrogen production meets the carbon intensity threshold of 0.45 kg CO2e per kg H2. As such, low-carbon white hydrogen production in the US could be eligible for the highest PTC, making it appealing for producers.
Not a new thingLe explained that despite being accidentally discovered in Mali approximately 37 years ago, the accumulation of hydrogen underground was previously thought to be unlikely due to hydrogen’s ability to seep through rock layers. However, new equipment, such as hydrogen-sensing gas probes, are now available to detect dissolved hydrogen in rock formations at depths of up to 1,500 metres. These probes use spectrometers to measure and analyze dissolved gases in deep boreholes. Researchers are currently developing probes that can reach deeper depths, up to 3,000 meters underground.
White hydrogen is mainly produced through natural reactions, such as serpentinization, where water reacts with iron-rich minerals at elevated temperatures. Enhanced serpentinization using catalysts such as magnetite, could help to accelerate natural hydrogen-producing reactions.
Radiolysis of water is another source of natural hydrogen. This process involves radioactive elements within the earth’s crust splitting water due to ionizing radiation.
The word is spreadingRystad Energy’s report notes that the South Australian government added hydrogen to its list of regulated substances in 2021. This led to many companies applying for exploration permits in the region, with Gold Hydrogen securing a five-year license to develop its Ramsay project. The company found high hydrogen concentrations of up to 86% during drilling in late 2023. Gold Hydrogen plans to conduct further drilling in 2024 and launch a pilot feasibility study.
The dossier also highlights the fact that governments in countries like France and the US have promised financial support to expedite the exploration and extraction of naturally occurring hydrogen projects. Currently, there is only one operational white hydrogen project in Bourakebougou, Mali, producing around 5 tonnes of hydrogen annually. This small-scale project has been in operation for a decade, providing power to a village. Other projects in various parts of the world are still at an early exploration stage, with the first European natural hydrogen production expected to start in 2029.
Cornish Metals CEO steps down
Richard Williams has resigned as the chief executive officer of Cornish Metals (LON, TSXV: CUSN). He will leave the company on March 31, but will remain available on a consulting basis going forward.
Ken Armstrong, a non-executive director, will step in as Interim CEO, and Patrick Anderson, chairman of the board, will serve as executive chairman during the transition and search for a permanent CEO.
Armstrong was CEO of the company’s predecessor, Strongbow Exploration, until 2015. He also holds the position of president and CEO at North Arrow Minerals (TSXV: NAR).
Earlier this month, Cornish announced it is accelerating work to reopen a past-producing tin mine at its South Crofty project in southwest England.
The Vancouver-based mine developer said it will expedite plans to refurbish the New Cook’s Kitchen shaft at South Crofty after an assessment revealed the deteriorating condition of its timbers, necessitating immediate action.
The company expects the process of dewatering the mine to be completed by the third quarter of 2025.
South Crofty could produce up to 5,000 tonnes of tin annually, with initial production projected for 2026.
Shares of Cornish Metals rose 3.2% by 11:42 p.m. EDT. The miner has a market capitalization of C$85.6 million ($63.2 million).
Selling Weighted to Front of Natural Gas Forward Curves on Weak Near-Term Fundamentals
Against a backdrop of soft near-term fundamentals, exceptionally weak spot market pricing and plummeting Nymex futures, regional natural gas forwards came under widespread bearish pressure during the March 7-13 trading period, NGI’s Forward Look data show.
For a market still threading the needle between near-term oversupply and anticipated future demand growth, selling was weighted toward the front of the curve. Henry Hub April fixed prices shed 20-plus cents week/week for April, May and June 2024 delivery, Forward Look data show.
Front month fixed prices for the benchmark dropped 27.4 cents for the period to $1.663/MMBtu.
[Mexico Matters: Cross-border energy trade between the U.S. and Mexico reached $82 billion last year. Understand this burgeoning trade flow — the projects, politics and natural gas prices — with NGI’s Mexico Gas Price Index. Know more.]
‘Incredibly Weak’ Physical MarketA near total absence of winter heating demand has left storage inventories brimming with excess molecules as the shoulder season nears, and this has driven physical prices to historic lows.
Day-ahead trading at Henry Hub during the March 7-13 period illustrated the bearish pressures of the near-term supply glut even as daily production volumes appear to have pulled back in recent weeks.
On Wednesday (March 13 trade date), Henry Hub spot prices dropped as low as $1.190. Spot prices at the hub previously bottomed out at $1.200 in October 2020, Daily GPI historical data show.
This comes as the Henry Hub March bidweek price of $1.610 is the lowest on record going back to at least 2014 when adjusting for inflation, according to an analysis of Bidweek historical data.
The previous Bidweek low at Henry Hub of $1.495, set in July 2020, would adjust to $1.791 based on the February 2024 Consumer Price Index, NGI calculations show.
‘Soaring Surpluses’After briefly probing above the $2.000 mark, Nymex futures retreated throughout the March 7-13 trading period. The selling showed markets “succumbing to soaring surpluses and incredibly weak Henry Hub physical market pricing,” according to EBW Analytics Group analyst Eli Rubin.
Storage surpluses are set to climb to “staggering” levels, and “working down unmanageable excesses will define the 2024 injection season,” Rubin said.
Still, pricing along the curve illustrates the tension between current bearish dynamics and “growing bullish optimism” as the market looks ahead to later in the injection season, according to the analyst.
“At the front of the strip, the market must contend with bulging storage surpluses, meager shoulder season demand, LNG maintenance and — particularly during early April — a lack of injection behavior from local distribution companies until later in the spring,” Rubin said. However, rising demand this summer could help to “reshape a bullish narrative moving forward.”
Appalachian Basis NarrowsMeanwhile, Appalachian basis differentials continued to narrow during the March 7-13 trading period. The regional price outlook has strengthened notably following a wave of producer announcements signaling curtailments.
Eastern Gas South basis strengthened across the 2024 curve week/week, including a 12.7-cent gain for July 2024, which ended the period at minus-55.7 cents, Forward Look data show.
Differentials also narrowed for the remaining 2024 contracts at hubs like Texas Eastern M-2, 30 Receipt; Transco-Leidy Line; and Tennessee Zn 4 Marcellus.
The most recent regional operator to join the chorus of producers announcing cuts was CNX Resources Corp. The company on Tuesday said it plans to cut around 30 Bcfe from its 2024 production. CNX said it would “delay completions on three upcoming Marcellus Shale pads consisting of 11 wells to avoid bringing incremental volumes into the current oversupplied market.”
An analysis of 11 gas-weighted exploration and production (E&P) companies shows them guiding for a 13% decrease in capital spending in 2024, according to Oil & Gas Financial Analytics LLC director Tom Biracree.
These gas-weighted producers “as a group are guiding to a 1% decrease in gas output at 1.59 billion boe,” Biracree wrote in a blog post for RBN Energy LLC.
Weather NeededDaily production estimates from Wood Mackenzie as of Thursday showed domestic output at 100.8 Bcf/d, well off the recent 30-day average of 103.0 Bcf/d and roughly flat to year-earlier levels. Recent production estimates from Bloomberg had production dipping below 100 Bcf/d.
Expanding storage surpluses have created a “quite bearish” background state for natural gas markets, though fading production volumes and the prospect of a hot summer represent “bullish undercurrents,” according to NatGasWeather.
Still, without more weather-driven demand, “the recent plunge in production won’t be able to fully cash in,” NatGasWeather said.
Signs of a cooler Lower 48 pattern for the back half of March appeared unlikely to do much to repair the damage done by mild winter weather to date.
“There’s still cooler air expected into the U.S.” from Monday through March 24, and this is “better than it’s been much of the past six weeks,” NatGasWeather said. However, the pattern remained “far from bullish due to only modest bouts of subfreezing air into the northern U.S.” and “quite nice” temperatures “most elsewhere.”
The post Selling Weighted to Front of Natural Gas Forward Curves on Weak Near-Term Fundamentals appeared first on Natural Gas Intelligence
US Export-Import Bank Approves Staggering $500 million for Bahrain oil and gas drilling project
Another blow to Biden’s climate commitment
[Washington, DC] Today the board of the US Export-Import Bank (EXIM) approved $500 million to expand oil and gas production in Bahrain, despite Biden’s commitment to end international public finance for fossil fuels made in 2021.
Today’s board approval is the fifth major project the bank has backed since Biden’s commitment at the 2021 UN Climate Conference in Glasgow with the Clean Energy Transition Partnership (CETP). This brings EXIM’s total international fossil fuel financial support to $1.3 billion since the deadline passed at the end of 2022 for the Biden administration to follow through on the commitment.
At least 60% of EXIM’s current $40+ billion portfolio directly supports fossil fuel-producing or dependent sectors like oil, gas, and aviation, with only 0.2% for renewable energy.
Nina Pušic, Export Finance Climate Strategist, at Oil Change International, said:
“EXIM’s decision to approve the Bahrain oil and gas project is another alarming step in the wrong direction for climate action, as the bank goes rogue and continues to defy President Biden’s promises. Coming in at $500 million dollars, the Bahrain project is a huge climate bomb paid for by the American taxpayer. This approval signals another setback for Biden’s climate commitments, and cements the United States yet again as the worst of the laggard countries in violation of the promise to end international public finance for fossil fuels.
“As many other countries are leading in implementing their commitment and already shifting at least $6 billion per year away from fossil fuels, Biden and the United States are approving projects that exacerbate our climate crisis and threaten communities. The U.S. must instead help lead a shift of billions of dollars from last century’s dirty energy into the clean, renewable energy of the future, but approvals like Bahrain are a huge step backward.”
Noa Greene-Houvras, 17, an organizer with Fridays For Future NYC, said:
“We are horrified at the decision to send $500 million to new oil projects in Bahrain. The United States has lost any credibility it had as a climate leader, and instead has proven to be led by forces like EXIM to prop up a dying industry while simultaneously killing its own people. As youth we are watching our future slip away, engulfed by fire and flood. To not only stand by during a climate emergency but to further it is a catastrophe choice. We are both terrified and baffled at this decision making process, and we will not let this stand.”
The post US Export-Import Bank Approves Staggering $500 million for Bahrain oil and gas drilling project appeared first on Oil Change International.
British Columbia launches Energy & Mines Digital Trust for international ESG reporting compliance
After two years of testing, Energy & Mines Digital Trust (EMDT), a collaboration between the government of British Columbia (BC), private-sector and industry associations, has launched digital credentials for mining operators to streamline the process of sharing confidential information securely.
Major mining operators in BC can now receive their Mines Act Permit as a digital credential, to prove their required operational permit status to investors, customers and regulators. The digital credential is tamper-proof and contains data verified from the government of BC.
Mines can use digital credentials to submit Towards Sustainable Mining scores and share verified environmental, social, and governance (ESG) data to increase competitiveness in sustainability-focused markets.
The BC government has been often critiqued by industry for long delays in a system perpetually backlogged with permitting applications. There are eight new mines or mine expansions in the pipeline worth a potential total investment of C$6.6 billion ($4.9bn) while new critical minerals mines could generate C$800 billion ($600bn), according to the Mining Association of British Columbia.
Seabridge Gold’s KSM project, in the province’s Golden Triangle, is currently ranked both the biggest gold project in the world, and the third largest copper project.
But the provincial government has said permitting solutions are a priority and in an emailed statement to MINING.com, the Ministry of Energy, Mines and Low Carbon Innovation said it has made progress improving timing and transparency of permitting processes to support sustainable economic development, while maintaining environmental protections.
“Since March 2022, we have reduced the backlog of permits by 52%. Budget 2024 includes C$24 million to support ongoing dedicated resources for mine permitting, consultation and engagement with First Nations, as well as to sustain the ongoing improvements to mining regulatory processes, creating a strong foundation for realizing critical mineral and broader mining sector opportunities,” the Ministry said.
The EMTD is part of a C$6.6 million investment in technology to ensure that internal major mine permitting processes are coordinated and efficient, it said.
“The project’s been ongoing for a number of years and in January we went live,” Nancy Norris, senior director of ESG & Digital Trust, BC Ministry of Energy, Mines and Low Carbon Innovation told MINING.com in an interview.
Norris said the EMTD is also working closely with the United Nations (UN) to take what has been learned from the project to an international context within the framework of UN sustainability goals.
Norris is also co-lead on the UN Transparency Protocol project, which is adapting the learnings from the BC Digital Trust work to international supply chains, such as Critical Raw Materials.
Nancy Norris, senior director of ESG & Digital Trust, BC Ministry of Energy, Mines and Low Carbon Innovation. Submitted image.“One of the issues with blockchain, having one platform where everyone pushes their data to is that it’s very difficult, especially in the mining sector for something like that to scale and be globally adopted,” Norris said.
“You need something that’s very flexible, low cost, easy to implement so that each actor along a supply chain can just link their data basically and they can share as much data as they’re comfortable sharing, which gets at that kind of commercial privacy and competitiveness.”
The first phase of the project was about getting technically ready and able, and the province has so far issued two digital credentials.
“Having those types of credentials that you can then share that information builds along the supply chain,” Norris said. Through the UN project, we’re talking to smelters and downstream operators along the supply chain [about] what kind of data needs to be surfaced to meet the requirements of these large consuming economies like the EU and the US that are starting to legislate.”
Norris pointed to the EU’s Carbon Border Adjustment Mechanism – its tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
Each actor along the supply chain will be able to prove the end products’ sustainability factors about it, such as carbon intensity and water usage levels.
“The whole purpose of this is to be able to differentiate producers that are actually adhering to sustainable practices and be able to report on them in a way that can be consumed by importers in the EU or the US so those products could actually get premium price,” Norris said.
“What we’re trying to do is create the digital tools that will enable this kind of uplift for miners that are actually working diligently towards making their production more sustainable.”
More high grades at New Found Gold’s Queensway project in Newfoundland
New Found Gold (TSXV: NFG, NYSE: NFGC) is reporting bonanza-grade drill results at its Iceberg target on the Queensway project in central Newfoundland.
Drill hole NFGC-23-1820 cut 16.7 metres grading 36.2 grams gold per tonne from 45.3 metres depth, while 45 metres away hole NFGC-23-1827 returned 14.7 metres at 33.7 grams from 87.5 metres down-hole, New Found Gold said on Wednesday.
The holes were drilled from the west to the east to better test how a secondary set of gold veins and associated structures intersect at Iceberg on the Keats-Baseline fault zone, the company said.
“Infill and definition drilling at Iceberg and Iceberg East have provided us with a comprehensive picture of the near-surface expression of this portion of the fault,” Melissa Render, vice-president of exploration, said in a release. “The fault has demonstrated several times over that it is a very important structure.”
New Found is expanding the drill program at Iceberg and Iceberg East, using seismic data to help target more gold mineralization in the fault. The company started drilling on the project five years ago, completing 500,000 metres by last year and added another 150,000 to the planned total. There’s been no resource declared yet.
The Queensway project has consistently reported strong drill results, topping The Northern Miner’s weekly Drill Down rankings several times since it burst onto the scene in 2019 with a hole at the Keats target returning 19 metres grading 92.9 grams from 96 metres downhole.
Gold regionQueensway, on a 1,662-sq.-km area accessible via the Trans-Canada Highway 15 km west of Gander, is part of a region that has drawn investor Sprott Asset Management, Labrador Gold (TSXV: LAB; US-OTC: NKOSF) and Exploits Discovery (TSXV: NFLD) among others. MarathonGold was acquired in a $345-million all-stock deal in January by Calibre Mining (TSX: CXB) for its Valentine project now under construction about 200 km west of Gander.
Also from Iceberg on Wednesday, drill-hole NFGC-231838 cut 5.9 metres grading 40.5 grams gold from 14.1 metres depth and hole NFGC-23-1914 returned 12.8 metres at 13.9 grams gold from 29 metres. Drill hole NFGC-23-1323 intercepted 7.35 metres of 42.8 grams gold from 109 metres depth.
The near-surface Iceberg-Iceberg East high-grade segment of the Keats-Baseline fault has a strike length of 655 metres. When combined with the 400-metre high-grade segment of Keats Main, this near-surface, high-grade corridor covers over 1 km of strike. Iceberg-Iceberg East is 300 metres northeast of the Keats target along the Appleton fault zone.
The fault runs southwest to northeast with targets such as Monte Carlo, Keats West and K2 on its west side. The east side holds the Keats, Keats North, Iceberg, Iceberg East, Golden Joint, Lotto, Jackpot and Everest discoveries.
Disclosure: The Northern Miner Group is owned by Earthlabs, which has been an investor in New Found Gold.
Pilbara Minerals seals another Chinese offtake deal
Australian lithium producer Pilbara Minerals (ASX: PLS) has clinched a deal with Chinese company Sichuan Yahua Industrial Group for spodumene concentrate, essential for making lithium batteries.
Under the agreement, Pilbara will deliver 20,000 tonnes of the mineral from its Pilgangoora operation in Western Australia this year and 100,000 tonnes annually in 2025 and 2026, with an option to supply an extra 60,000 tonnes each year, according to the Perth-based company’s March 12 news release.
“This offtake builds on an established relationship between our companies, having previously completed a number of sales together,” Pilbara managing director and CEO Dale Henderson said in the release.
As Australia’s largest independent lithium miner, the new offtake comes on the heels of Pilbara in January increasing its sales contract with another Chinese company, Ganfeng Lithium, over the next three years and has the option to boost the spodumene concentrate tonnage sold to the major. In February, it amended a spodumene supply deal with chemicals producer Chengxin Lithium Group, raising agreed sales volumes and extending the contract’s duration.
Pilbara says the spodumene will be sold at market prices at the time of each delivery. Prices for lithium carbonate, a precursor to lithium hydroxide used in batteries, have fallen sharply in the past 12 months. Lithium carbonate fetched about $15,653 per tonne as of Wednesday, down from about $23,658 in September and 80% lower than in 2022, according to Trading Economics.
Yahua, known for its stature in the lithium market, serves major clients like Tesla and LG Chem, establishing itself as one of the leading lithium hydroxide producers.
The scale and quality of the operation have attracted a consortium of high-profile global partners, including POSCO, Ganfeng, General Lithium, Yibin Tianyi, Chengxin Lithium and Yahua.
Pilbara is focusing on enhancing the value of its hard rock spodumene ore to expand its business. The company is establishing a demonstration plant at Pilgangoora to process lithium. According to the company, if this technology utilizes renewable energy, it could reduce carbon emissions by over 80% during one of the most energy-intensive phases of lithium battery material production.
Additionally, the plant aims to support Pilbara in achieving a production target of 1 million tonnes of spodumene concentrate by next year.
Pilgangoora hosts proven and probable reserves of 214.2 million tonnes grading 1.19% lithium oxide for 2.5 million tonnes of lithium. The resource base across all categories totals 413.8 million tonnes grading 1.15% lithium oxide for 4.8 million tonnes of metal.
Pilbara shares closed Wednesday at A$4.18 apiece in Sydney, giving the company a market capitalization of A$12.6 billion ($8.3 billion).
Riley Gold rises on $20m earn-in with Kinross for Nevada project
Nevada-focused junior Riley Gold (TSXV: RLYG) is teaming up with Kinross Gold (TSX: K) (NYSE: KGC) to advance the exploration of its Pipeline West/Clipper (PWC) project, in which Kinross has been granted the option to earn up to a 75% interest for minimum expenditures of $20 million.
“We are excited to partner with Kinross on our PWC project. Their global proven track record speaks for itself as well as specific regional expertise that includes ownership and operations of two gold mines in Nevada (Round Mountain and Bald Mountain),” Riley Gold CEO Todd Hilditch said in a news release.
Under a venture option agreement signed Thursday, Kinross will assume operatorship of the PWC project and can earn an initial 60% interest in PWC by incurring a minimum of $10 million in qualifying work expenditures.
The Canadian gold major can earn an additional 15% interest (for a total 75% interest) by incurring at least another $10 million in qualifying work expenditures within two years of exercising the initial earn-in option.
Upon exercise of the initial earn-in option, a Nevada-registered joint venture company will be established for Kinross and Riley to hold their respective interests in PWC. Upon exercise or termination of the second earn-in option, the parties will fund ongoing operations of the JV based on their proportionate interests.
There is a dilution provision stating that should Riley’s interest in the JV company be reduced to 10% or less, the company’s interest will then be converted to a 2% net smelter return royalty.
In addition to the earn-in, Kinross will also take a 9.9% equity interest (on a partially diluted basis) in Riley through a private placement. In total, the placement consists of 8 million units priced at C$0.15 each for total proceeds of C$1.2 million.
Shares of Riley Gold surged 30% to C$0.20 on the TSX Venture Exchange by 11:20 a.m. ET, within the upper range of its 52-week range of C$0.09-C$0.24. The gold junior has a market capitalization of C$6.3 million.
PWC projectLocated in Lander county, Nevada, PWC consists of approximately 24.7 km² in the heart of the gold-producing Cortez District, also known as the Battle Mountain-Eureka trend. The property adjoins Nevada Gold Mines complex, a joint venture between Barrick Gold and Newmont.
Drilling on the PWC project was first conducted in 1992, but since 1994, other operators such as Agnico-Eagle and Barrick Gold (Placer Dome) generally focused on offsetting early drilling that intersected gold mineralization in the lower plate of the Roberts Mountain thrust.
Results from the historical drilling include 4.6 metres grading 2.594 grams gold per tonne at 324 metres, including a high value of 3.84 g/t gold at 283 metres.
Lithium Americas gets record $2.2 billion loan for Thacker Pass
Lithium Americas (TSX: LAC; NYSE: LAC) announced on Thursday that it has received a conditional commitment loan of $2.26 billion from the US Department of Energy (DOE) to finance the construction of processing facilities at Thacker Pass in Nevada.
The project will be adjacent to Lithium Americas’ $2.2 billion Thacker Pass mine, which aims to produce an initial 40,000 tonnes per year of battery-grade lithium carbonate. The mine is also expected to create approximately 1,800 direct jobs during its three-year construction period and around 360 jobs in operations for its 40-year mine life.
This funding represents the largest-ever loan to a mining company from the DOE’s Loan Programs Office, amid increasing efforts to bolster domestic supplies of critical minerals. General Motors, which has invested $650 million in Lithium Americas, has an exclusive offtake agreement for 100% of the lithium production from the mine for up to 15 years after expected production begins in 2027.
The proposed mine has the potential to become North America’s largest source of lithium for electric vehicle batteries and would support US President Joe Biden’s efforts to reduce dependence on Chinese supplies of the metal.
Currently, about 65% of the critical mineral is processed in China, although US lithium production is projected to increase 13-fold thanks to tax credits and other subsidies provided in 2022’s Inflation Reduction Act, Energy Secretary Jennifer Granholm said Wednesday at a conference held by SAFE.
Measured and indicated mineral resources at Thacker Pass are estimated at 385 million tonnes averaging 2,917 parts per million (ppm) lithium for 6 million tonnes of lithium carbonate equivalent (LCE). Inferred resources are 147 million tonnes averaging 2,932 ppm for 2.3 million tonnes of LCE.
Shares of Lithium Americas surged 28% in New York trading and 18% in Toronto on Thursday morning. The Vancouver-based miner has a market capitalization of C$1.18 billion ($870m).
(With files from Bloomberg)
Queen’s University, UBC, unveil C$2 million Don Lindsay Teck Award in mining engineering
Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK), The University of British Columbia (UBC) and Queen’s University announced Wednesday the Don Lindsay Teck Award in Mining Engineering, comprised of two C$1 million endowments that will generate annual scholarships for students in mining engineering at both universities.
The Don Lindsay Teck Award contributes C$1 million to each of Canada’s two largest mining schools: the Norman B. Keevil Institute of Mining Engineering at UBC and the Robert M. Buchan Department of Mining at Smith Engineering at Queen’s. The endowments will generate annual renewable scholarships at each university, providing financial support for students pursuing mining studies.
The award, funded by Teck, was established in recognition of former CEO Don Lindsay’s contributions to the mining sector in Canada and internationally. During his 17-year tenure, Lindsay’s commitment to philanthropy and supporting the next generation of mining talent has left a mark on the mining sector.
The Mining Engineering award builds on the longstanding partnerships with the mining schools at UBC and Queen’s University, spanning decades and aligns with Teck’s commitment to increasing the pipeline of mining industry talent to strengthen the industry’s future.
“The Don Lindsay Teck Award in Mining Engineering will shape the next generation of mining engineers,” James Olson, Dean of the Faculty of Applied Science at UBC, said in a media statement. “UBC is building the mining industry of tomorrow, which will leverage critical minerals to solve climate change. We extend our deepest gratitude to Teck for this endowment, and its immeasurable impact on education and research at UBC Engineering.”
“The C$1 million endowment will have a profound impact on the heart of Queen’s University: its students,” added Kevin Deluzio, Dean, Smith Engineering at Queen’s University. “Our partnership with Teck over the years has enriched programs, provided employment opportunities, and supported research, contributing significantly to the educational experiences for our students.”
Covert forms of sexual harassment remain an issue in Western Australia’s mining industry – study
Being put down or condescended to based on gender, and receiving offensive sexist remarks, remain common themes in Western Australia’s mining sector, the Mental Awareness, Respect and Safety (MARS) Program Landmark Study shows.
The report was produced by the Centre for Transformative Work at Curtin University, whose researchers surveyed more than 2,500 workers and conducted in-depth interviews with 60 individuals to gain insights into their experiences with a focus on three critical areas – creating mentally healthy workplaces, building a culture of safety and respect, and preparing for workplace safety in future mining.
In detail, 41% of female mining workers reported they had experienced being put down or condescended to, while 34% reported receiving offensive sexist remarks such as suggesting that people of their sex are not suited for the kind of work they do.
Even though the study found that covert forms of sexual harassment such as sexism and misogyny are high, it also noted that sexual attention and sexual coercion are decreasing.
In addition to the prior, only four in 10 WA mining workers reported feeling satisfied with their jobs and nearly one in three said they were likely to try to find a new job with another employer in the next 12 months.
“Our research found one in three mining workers experiences emotional exhaustion regularly, indicating high levels of burnout. Disturbingly, covert forms of sexual harassment, including sexism and misogyny, persist,” MARS Program Landmark Study chief investigator, Sharon Parker, said in a media statement. “The negative impact of these experiences on mental health and well-being is evident, emphasizing the urgent need for change through improved work design, leadership and organizational culture.”
In Parker’s view, given that the mining sector constitutes 10% of the Western Australia workforce and plays a pivotal role in the state’s economy, this type of study is crucial.
Lead author Cheryl Yam said that while the findings acknowledge workplace culture was improving as companies pay more attention to reducing discrimination and harassment, a collective commitment is needed to achieve meaningful and lasting change in building a respectful workplace culture.
“The mining industry is a leader in physical safety. With the support and resources from the MARS Program, we are confident that the mining industry is well positioned to also be a leader in mental health and well-being,” Yam said. “Our research findings provide a roadmap for meaningful action to address and reduce covert forms of sexual harassment and create respectful workplaces to attract, retain and prevent harm to women and people in other minority groups.”
The study also highlighted that 30% of mine workers reported high or very high levels of psychological distress and 38% reported feeling burnt out at work.
Also, 16% of workers reported having experienced bullying (22% reported witnessing bullying) at least 2-3 times per month in the past six months.
On the positive side, most WA mine workers reported high levels of physical safety behaviours such as safety compliance and safety participation. Yet, underreporting of notifiable safety incidents and near misses continues to exist in the industry.
Finally, 60% of fly-in-fly-out mine workers reported being satisfied with their accommodation while 73% of male FIFO workers reported feeling physically very safe in their work-provided accommodation compared to 53% of female FIFO workers.
Investigating the countries and companies behind Israeli crude oil and fuel supply chains
Data compiled by Data Desk, commissioned by Oil Change International
March 2024
In February 2024, Oil Change International commissioned Data Desk to provide an overview of the supply chains that are currently bringing crude oil and refined products to Israel, focusing on fuel supplies to the country’s armed forces.
The research comes in the context of Israel’s 2023 invasion of the Gaza Strip and in the wake of a 2024 ruling by the International Court of Justice that Israel’s actions may have violated the terms of the Genocide Convention.
The primary aim of the analysis was to determine:
- Which are the main countries supplying fuel to Israel?
- What are the major international oil and gas companies supplying fuel to Israel and the Israeli military?
The data was last updated March 8, 2024.
Click here to download the data analysis.
The post Investigating the countries and companies behind Israeli crude oil and fuel supply chains appeared first on Oil Change International.
New Research Exposes Countries and Companies Supplying the Oil Fueling Palestinian Genocide
Contact:
fuel-research@priceofoil.org
FOR IMMEDIATE RELEASE
[Washington, DC] – New data compiled by DataDesk, commissioned by Oil Change International, sheds light on the devastating role of oil fueling the ongoing genocide against the Palestinian people. By tracing the supply chains of crude oil and refined products to Israel, the research exposes the various countries and companies whose fuel supplies are perpetuating this humanitarian crisis – and thus have an opportunity to help compel a ceasefire by turning off those taps.
According to the findings, the US is the Israeli military’s key direct source of imported jet fuel. Oil majors, including BP, Chevron, ExxonMobil, Shell, Eni, and TotalEnergies, are also complicit in fueling atrocities in their ownership stakes in and operations of projects supplying oil to Israel, particularly via Azerbaijan and Kazakhstan. Brazil and Saudi Arabia are also implicated in supplying Israel with fuel for its war machine. Countries and companies continuing to provide fuel to Israel are playing a part in enabling the ongoing violence and oppression against the Palestinian people.
Key findings:
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- Israel has received three tankers of JP8 Jet Fuel since the war started as part of U.S. military aid for Israel. JP8 Jet Fuel is specifically formulated for military jets. One shipment left the United States before the war started, while two have been sent since. The latest tanker was seen docked at Israel’s Ashkelon terminal on March 6.
- Israel receives relatively small but regular shipments of crude via the Sumed pipeline. The pipeline receives crude oil from Saudi Arabia, the United Arab Emirates (UAE), Iraq, and from Egypt, through which the pipeline also travels. All of these countries have condemned Israel’s actions in Gaza.
- Other countries with more friendly relations with Israel supply the majority of crude oil delivered since the war began, including Azerbaijan and Kazakhstan. Gabon is also a major source of crude oil delivered. Crude from Azerbaijan and Kazakhstan is supplied by pipelines owned or operated by major international oil companies, including BP, Chevron, Exxon, Shell, and Eni.
- Russia continues to supply a steady stream of vacuum gas oil (VGO) for one of the key refineries in Haifa. VGO is generally upgraded into gasoline and diesel.
- Two shipments of Brazilian crude oil totaling 260,000 tons have been delivered to Israel since December 2023. This crude was supplied from offshore fields co-owned by Shell and TotalEnergies together with Brazil’s Petrobras.
Palestinian groups and their allies have called for an energy embargo and are demanding governments and companies cease all fuel shipments to Israel until it ends the genocide and its regime of apartheid against the Palestinian people. Specifically, the Boycott, Divestment, and Sanctions movement calls for a consumer boycott of Chevron-branded gas stations. Countries, as well as oil and gas companies, must be held to account for their role in perpetuating violence and human rights abuses.
Statements:
Allie Rosenbluth, Oil Change International US Program Manager, said:
“Countries and major oil companies fueling Israel’s war machine are complicit in the ongoing genocide of the Palestinian people. With growing public outrage, including massive protests across the globe, the demand for an end to this genocide is resounding. By directly fueling Israel’s military, on top of over a hundred other weapons sales, the U.S. in particular must be held accountable for potential violations of international law. We call on nations to leverage their oil supply as a means to demand an immediate ceasefire and an end to the occupation. Fossil fuel companies, like BP, Chevron, and Exxon, driven solely by profit, are willing to fuel conflict against innocent civilians. This must stop today. We demand a permanent ceasefire and an end to Israeli occupation in Palestine.”
Mahmoud Nawajaa, General Coordinator, Palestinian BDS National Committee (BNC), said:
“The ICJ’s ruling of 26 January indicates that Israel could plausibly be committing genocide against 2.3 million Palestinians in occupied Gaza. States and companies must immediately end any complicity in Israel’s genocidal acts, including its use of starvation as a weapon of war. UN human rights experts have reminded States of this obligation, calling for an “immediate” military embargo on Israel, entailing a halt to the transfer of weapons and other military supplies to it.
“States and companies that continue to provide Israel with fuel for its military forces are directly complicit in supporting its ongoing genocide. We shall never forgive them for that. The BDS movement, which is already targeting Chevron with a growing global boycott and divestment campaign, will expose and target the complic States and corporations mentioned in this valuable report.
“This complicity in Israel’s Gaza genocide is not just killing Palestinians and destroying our cities, refugee camps and villages; it is also accelerating the world’s descent into what the UN Secretary-General calls, “total impunity,” where the law of the jungle reigns.”
Mohammed Usrof, co-founder of Climate Alliance for Palestine, said:
“After the International Court of Justice ruling, it’s disheartening to see the silent complicity of international corporations in the prolonged suffering of my people and my family. These companies, by supplying oil and gas to Israel, not only fuel a machinery of conflict but also ignore the urgent calls for ethical responsibility and humanity. It’s high time we demand more than just corporate profit – accountability and justice should be non-negotiable.”
Peter Frankental, Amnesty International UK’s Economic Affairs Director, said:
“There are urgent due diligence questions for any company with commercial ties to the Israeli military, and oil firms must ensure they’re not in the business of helping to entrench Israel’s apartheid system or fuelling war crimes and possible genocide in Gaza.
“The need to avoid being directly linked to Israeli war crimes via any of their business relationships extends to all companies which form part of the global oil distribution infrastructure. We’ve repeatedly called on the Government to ensure that no UK company can trade with Israel’s network of illegal settlements, and likewise the Department for Business & Trade must be prepared to take action to prevent unscrupulous UK firms – including in the lucrative oil sector – from profiting from Israeli war crimes and crimes against humanity in Gaza.”
Omar Shakir, Israel and Palestine Director at Human Rights Watch said:
“Israeli authorities have carried out mass atrocities in Gaza in recent months. Countries and other actors that provide support to Israel’s armed forces risk complicity in war crimes. States should suspend military assistance and arms sales to Israel so long as its forces commit widespread, systematic abuses against Palestinian civilians with impunity.”
Notes to the editor:
For more information and to access the full data analysis, please visit here.
Data Sets used: The main sources used are: Automatic Identification System (AIS) data on ship positions and aggregated commodity trade flows data from LSEG’s CARGO app; customs filings and bills of lading from Sinoimex Global Trade Monitor; and satellite imagery from Planet Labs and the ESA Sentinel-2 satellite. While detailed examples and evidence are provided only for the most significant flows in volume terms, we would be very happy to discuss any of the other flows mentioned in more detail.
ENDS
The post New Research Exposes Countries and Companies Supplying the Oil Fueling Palestinian Genocide appeared first on Oil Change International.
Core Lithium CEO quits on share, battery metal prices rout
Perth-based Core Lithium (ASX: CXO) faces a corporate shake up in response to a dramatic drop in lithium spodumene prices that spurred the immediate departures of its CEO and a director.
The company reported on Tuesday an A$167.6 million loss for 2023 as its share price has crumbled in the past year from A$1.20 to A$0.20 at the close on Wednesday.
“Despite the sharp drop in lithium prices, we’ve improved production and efficiencies, producing 49,530 tonnes of spodumene concentrate in the latter half of 2023,” outgoing CEO Gareth Manderson said.
Despite halting mining on Jan. 5 at its Finniss lithium operation in Australia’s Northern Territory, the company continues processing existing ore stockpiles to maintain spodumene concentrate production. The focus has shifted towards cash preservation and assessing the viability of its lithium projects, along with exploring the potential in its wholly owned gold, uranium, and base metal assets.
Manderson, a former Rio Tinto (ASX: RIO) executive who joined Core in August 2022, has decided to step down as CEO. Under his leadership, the company saw the establishment of a proficient management team and the start of operations at Finniss despite facing such challenges as underperforming open-pit mines and incomplete infrastructure.
His tenure was marked by developing efficient operations and fostering a culture focused on safety, professionalism, and accountability, the company said in a Tuesday release.
Following Manderson’s departure, Doug Warden, the current CFO, will serve as the interim CEO, receiving an additional monthly allowance for his new duties. The company is actively seeking a permanent CEO replacement. In parallel, James Virgo steps in as the interim CFO, bringing extensive financial management experience from his time at Resolute Mining.
Andrea Hall, a non-executive director since April 2023, also resigned, aiming to facilitate a board restructuring that aligns with the company’s future strategy.
Core produced 49,530 tonnes of spodumene concentrate in H2 2023, improving production and efficiencies despite the drop in lithium prices.
Core continues to evaluate its strategic options amidst the challenging market conditions, focusing on sustainability, operational efficiency, and financial stability.
As of October 2023, Finniss held 10.5 million tonnes across three resource categories grading 1.53% lithium oxide for 160,000 tonnes of metal.
At A$0.20 per share on Wednesday, Core’s Sydney-listed equity is down 83% over the past 12 months, and it has a market capitalization of A$427.4 million.
Weir opens new foundry in Xuzhou, China
The Weir Group has officially opened its new foundry in Xuzhou, China. The foundry, which is part of Weir’s ESCO global foundry network, expands capacity for the manufacture of ESCO ground engaging tools (GET).
The opening ceremony, hosted by Weir’s CEO Jon Stanton, was attended by a senior leadership team from Xuzhou Hi-Tech Industry Zone and other members of Weir and its ESCO division from China and across the globe.
Occupying a 16.5-acre site in Xuzhou’s High-Tech Industrial Zone, the new foundry features the latest technology and equipment, incorporating high levels of automation. These enable the optimisation of capacity and enhance foundry processes, improving efficiency and further reducing costs of manufacture.
The new foundry represents a $60 million investment and will replace Weir’s existing foundry located close by.
The company retained its skilled and loyal workforce – many of whom have been with Weir since foundry operations in Xuzhou in 2006.
US Strategic Metals appoints new chief financial officer
Battery metals producer and recycler US Strategic Metals announced the appointment of Thomas M. Boehlert as chief financial officer.
Boehlert, with his extensive background and expertise, will play a pivotal role in guiding the company’s fiscal health and strategic initiatives, focusing on establishing a robust domestic supply of critical minerals to support the ongoing energy transition.
US Strategic Metals secures $500 million in funding for Missouri-based cobalt-nickel mineAs the former CFO and executive director at RCF Acquisition Corp, Boehlert played a key role in a successful $230 million capital raise and IPO in 2021, aligning financial strategies with the evolving energy landscape.
His role as board director at Arizona Sonoran Copper contributed to a successful 2021 IPO, emphasizing sustainable practices in critical minerals.
As an advisor at Beta Technologies, Boehlert provided key insights into rare earths in sustainable aviation, reflecting his commitment to ESG. Boehlert’s leadership as CFO and executive vice president at Bunge Limited showcased the depth of his financial acumen in his implementation of the Global Competitiveness Program.
An MBA graduate from New York University and former senior auditor at KPMG, Boehlert uniquely amalgamates academic excellence with industry knowledge, USSM said.
BMC’s Kudz Ze Kayah project in Yukon can go ahead after talks help address Indigenous concerns, governments say
A government body’s decision re-opens a path to permitting for BMC Minerals’ Kudz Ze Kayah (KZK) zinc-lead-copper project in the Yukon, following consultations between governments and Indigenous authorities.
The Vancouver-based BMC, owned by private, UK-based firm BMC Ltd., is developing the critical minerals project located 115 km southeast of Ross River. KZK was paused last year when the Kaska Nation said the federal and Yukon governments didn’t address their concerns over wildlife and the environment at the mine’s proposed site.
“The decision document reapproves the project to proceed through the regulatory phase of permitting,”Allan Nixon, vice president of external relations told The Northern Miner on Wednesday. “This is very positive news and we are pleased to have a new decision document. We are just in the process of reviewing it in detail as there have been some changes in a few of the terms and conditions.”
“We will continue to engage with Kaska to ensure we address any remaining concerns they may have and to ensure we are maximizing opportunities for their participation in and benefit from the project.”
The document, issued on Friday, represents a green light on BMC’s path towards developing KZK, one of the few pre-production critical minerals projects in the Far North to advance past the feasibility study stage and into permitting. BMC first submitted its proposal for mine in 2017.
Kudz Ze Kayah, or ‘caribou country’ in the Kaska language, will cost $376 million to develop, and the open pit operation would have a nine-year life. According to a 2020 feasibility study, KZK has an after-tax net present value (at a 7% discount rate) of $617 million, and an internal rate of return of 45.9%. The mine would produce 7.8 million oz. of silver, 56,500 oz. of gold, 235 million lb. of zinc, 32 million lb. of copper and 56 million lb. of lead in concentrate annually during steady-state operations.
The decision document presents the outcome of talks held in February between the Yukon and federal governments, the Ross River Dena Council (RRDC), Liard First Nation (LFN) and community members. Those consultations were ordered by Yukon Supreme Court chief Justice Suzanne Duncan, who found last January that the Crown failed in its duty to consult and accommodate Kaska’s environmental concerns.
New conditions on KZKGovernment authorities concluded in the document that KZK should go ahead without review but under a new terms and conditions.
Regulators must consult with the Kaska on KZK’s technical details and its potential impacts on Indigenous rights; the Kaska will play a key role in the review of mine closure plans and land use; and Kaska will be consulted about reviewing environmental monitoring and financial security.
“(Governments) are committed to working closely with Kaska in the regulatory process to determine if the Kudz Ze Kayah project can proceed to licensing,” reads the document issued by the Yukon Environmental and Socio-economic Assessment Board.
The Yukon government will also set up an independent Finlayson caribou herd oversight committee composed of territorial officials, LFN and RRDC members. That body will monitor protection measures, such as temporary pauses of rock blasting and transportation routes to minimize disturbances to caribou.
Scott Donaldson, CEO of BMC, told The Northern Miner at PDAC last week that he looks forward to sitting down with the Kaska and working through the decision document.
“I’m confident we’ve worked very hard to adopt as many of the Kaska requests as we possibly could,” he said.
Donaldson said BMC’s next steps are its permitting issues and consultations, with a final investment decision on the project expected in the first half of next year.
The Kaska Nation chief did not immediately respond to a request for comment.
Kaska sought reviewThe dispute over KZK began in June 2022, when the federal and territorial governments approved it following an environmental and socio-economic assessment.
But weeks later, the Kaska, on behalf of the RRDC announced a civil lawsuit against the governments, alleging it wasn’t properly consulted over the mine’s potential environmental impacts, including on caribou herds.
The RRDC petitioned the court to review how regulatory authorities had approved KZK, which led to a judicial hearing in Whitehorse last April, where lawyers for the Kaska, BMC, the Attorney General of Canada and Yukon presented arguments for their respective positions.
Duncan reserved her position at the time until January, when she found that the federal and territorial governments partially fulfilled their duties to consult.
KZK mainly consists of the ABM open pit mine, with smaller resources in the Krakatoa open pit and underground mines. ABM hosts probable reserves of 15.7 million tonnes grading 5.8% zinc, 1.7% lead, 0.9% copper, 138 grams silver per tonne and 1.3 grams gold for contained metal of 135,800 tonnes copper, 265,700 tonnes lead, 915,000 tonnes zinc, 665,800 gold and 69.5 million oz. silver.
Cominco began exploring around the KZK deposit in 1977. Drilling in 1994 revealed copper, lead and zinc mineralization. BMC purchased the project from Teck Resources’ (TSX: TECK.A/TECK.B; NYSE: TECK) in 2015.
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