Monday, February 24, 2020

According to Mining News Pro – As per the sources, Odisha based miners have concluded low-grade iron ore fines (Fe 58/57%) export deals this week at around USD 57-59/MT, CFR China for March/April shipment.

Another trader from Odisha has also booked one vessel to China at USD 59-60/MT CFR China during this week.

As per the reports, amid shrinking steel margins of Chinese mills turned interest towards low-grade ore for cost-effectiveness.

Earlier, the emanated Coronavirus outbreak in China desiccates the seaborne iron ore trade. Still, a substantial leeway of iron ore trade is a matter of concern.

Iron ore port inventories in China fall -: As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports dropped to 128.6 MnT as of 20th Feb’20 against 130.65 MnT a week before.

Spot iron ore prices increased USD 4/MT W-o-W-: Chinese spot iron ore prices increased by USD 4/MT this week to USD 92/MT, CFR China against USD 88/MT, CFR China a week before.

Source: SteelMint


Tuesday, February 4, 2020

According to Mining News Pro – The miner, a major producer of base metals and metallurgical coal that also has oilsands assets, says its goal demonstrates its commitment to support the transition to a low-carbon economy. The move also aligns with Paris Agreement commitments made by Canada and Chile – home to the majority of Teck’s operations – to be carbon neutral by 2050.

“Setting the objective to be carbon neutral by 2050 is an important step forward in our commitment to reducing emissions and taking action on climate change,” said Don Lindsay, Teck’s president and CEO. “Climate change is a global challenge that our company and our industry need to contribute to solving. We will pursue the technologies and measures necessary to reduce carbon emissions across our business, while continuing to responsibly provide the metals and minerals necessary for the world’s transition to a low-carbon economy.”

Teck’s initial roadmap to carbon neutrality begins with first avoiding emissions, then eliminating or minimizing emissions. Measures the company will investigate include finding alternate ways to move materials, using cleaner power sources, and improving efficiency at its operations.

The company also notes it is investing in the metals required for the transition to a low-carbon economy – namely through building the Quebrada Blanca Phase 2 copper project in Chile. Teck announced today that it’s entered into a long-term power purchase agreement for the project that will see it use renewable energy for about half the energy required.

Teck’s pledge will be more difficult to keep if it goes ahead with building its proposed Frontier oilsands mine, 110 km north of Fort McMurray, Alberta.

Teck is currently awaiting a federal decision on whether Frontier can proceed. As proposed, Frontier would operate for 41 years, producing 260,000 barrels of bitumen per day. However, even if the project is approved, it will require higher oil prices to be economic.

 Source: Canadian Mining Journal

Tuesday, January 28, 2020

According to Mining News Pro – In its Q4 2019 production report, Anglo said Los Bronces’ production dropped by 28% due to water scarcity, a situation that also caused a 44% decline in the plant’s processing capacity.

“Production from Los Bronces decreased by 28%, to 71,700 tonnes with a 44% reduction in plant throughput (7 million tonnes vs 13 million tonnes) resulting from lower water availability,” the quarterly document states. “Chile’s central zone continues to face unprecedented climate conditions, with 2019 being one of the driest years on record and the driest since the start of the current decade-long drought.”

Los Bronces closed 2019 with an overall production drop of 9%, as it was only able to generate 335,000 tonnes of fine copper. Guidance for the year had been set on 359,000 tonnes.

Given these results, Anglo decided to go ahead with a water deal with Codelco’s Andina division, a massive mine adjacent to Los Bronces.

The agreement between the two miners entails that clean water from Andina’s Ovejería tailings pond is to be transported seven kilometres by truck to Los Bronces’ tailings facility, known as Las Tórtolas.

According to local media, Codelco has said that this is a good use for the resource because its industrial water either accumulates in the pond or evaporates as is not apt for agricultural use or human consumption.

Los Bronces is operated by Anglo American together with Codelco and it is among the world’s largest copper mines. It sits at 3,500 metres and just 65 kilometres from Santiago.


Monday, January 20, 2020

According to Mining News Pro – Brewer is located 12 kilometres northeast and along trend from OceanaGold’s Haile gold mine, on the underexplored Carolina Slate Belt.

According to Pancontinental, gold was discovered at the site in the early 1800s. Between 1987-1995, Brewer produced 178,000 ounces of oxide gold from open pits that extended to 50-metre depths, where copper and gold-rich sulfides were exposed but could not be processed by the oxide heap leach processing facility.

Based on documents archived at the U.S. Geological Survey, it is possible that Brewer contains a large porphyry copper-gold system at depth, as indicated by widely known prospective geology, including diatreme breccias, as well as by associated high sulphidation alteration, gold and copper mineralization, and geophysics.

In a press release, the Toronto-based company said that the team selected to work in North Carolina includes the geologists that discovered Brewer’s near-surface oxide gold mineralization 40 years ago. These experts also discovered the high-grade, near-surface Buzzard gold project, on trend less than a kilometre southwest of Brewer, and they also intersected near-surface gold mineralization at Jefferson in 2016.

Brewer was explored up to 1997. Two years later, England’s Brewer Gold Company abandoned the site and left the responsibility of land reclamation activities in the hands of the South Carolina Department of Health and Environmental Control and the U.S. Environmental Protection Agency. Later on, in 2005, Brewer was designated a Superfund site.

This is where Environmental Risk Transfer comes in. Given the status of the mine and the fact that its previous owners did not address conditions posing environmental risks, the St. Louis-based firm will work on mitigating the impacts of mining activities in surrounding areas based on the expertise it has gained at the Missouri Cobalt mine. There, Environmental Risk transformed a formerly contaminated site into a hub of economic activity.

“Pancon and ERT worked together since March 2019 to win the competitive selection process led by the Brewer Gold Receiver,” Layton Croft, the miner’s president and CEO, said in the media brief. “We are ready to quickly investigate this underexplored project, with the goal of discovering new oxide gold mineralization and the underlying copper-gold porphyry system by 2021.”




Wednesday, January 15, 2020

According to Mining News Pro – Farhad Abasov, Millenial’s president and CEO, said the licenses granted total approximately 6,447 hectares and that his company expects the fifth license to be granted in the near future.

In terms of the development of the project, Abasov said Millennial continues to advance its 3 tonne-per-month lithium carbonate plant and pilot evaporation ponds in addition to completion of the community water well construction and sustainable business development and indoor recreation centre at Pastos Grandes.

“On corporate matters, Millennial continues to advance financing, offtake and other strategic talks with large industry players,” Abasov said.

To date, the Canadian miner has invested over C$40 million in exploration and development work, which includes 22 completed exploration/monitoring wells, four pumping test production wells, pilot ponds, the pilot plant as well as a year-round camp supported by a hybrid solar power system.


Sunday, January 12, 2020

According to Mining News Pro – During the three months ended December 31, the company had mined 1.1-million reef tonnes and milled 1.2-million tonnes.

The PGM recovery rate was at 82.2% with production of 34.4-million ounces on a 6E – ruthenium, rhodium, palladium, osmium, iridium and platinum – basis, while the chrome recovery rate was 63.1%, with concentrate production at 34.2-million tonnes.

The three months saw a record PGM basket price at $1 406/oz, an increase of 16% over the prior quarter, and the average chrome price received for the quarter was $145/t, with a stripping ratio of 10.9 m.

However, external disruptions – such as unprecedented inclement weather and the electricity supply disruptions implemented by State-owned power utility Eskom – negatively impacted on production.

Tharisa CEO Phoevos Pouroulis on Friday said the company had, overall, achieved “a solid operational performance from mining and processing, leading to a stable quarter, despite the adverse impact of weather and the . . . power shortages”.

While Tharisa benefits from overall low use and stand-by capacity, he lamented that the unprecedented move to Stage 6 load-shedding in early December and consequent power reductions “did provide disruption to the processing plant’s stability”.

However, plant performance was “commendable”, Pouroulis said, adding that mining, accounting for the weather-related impact, was still in line with expectations.

Tharisa expects to achieve a build-up in output towards the latter half of the new financial year.

Across the border, in Zimbabwe, progress is continuing as planned. Mining reef tonnes milled totalled just over 1.1-million tonnes which, when compared with the previous comparable quarter in December 2018, was up 4.8% but lower than the quarter ended September 30, 2019.

Inclement weather also impacted on Tharisa’s Zimbabwe openpit operations, resulting in a run-of-mine “opportunity loss” of over 230 000 t.

Rainfall during December was 137% higher than the previously highest recorded rainfall in the past five years, and the lower reef tonnage has a direct impact on reef milled bust was up when compared to December 2018, at 1.2-million tonnes.

The stripping ratio improved against all measurements at 10.9 m.

Tharisa’s co-product business model has benefitted from record PGM prices, with the average PGM contained metal basket price for the quarter at $1 406/oz, with palladium and rhodium continuing to be the main driver of the increased basket price.

The average chrome price received for the quarter was $145/t with current spot trading at $133/t, levels the company believes are unsustainable in the long term; however, expectations are for chrome concentrate prices to remain at these levels during the current quarter, with some potential for improvement into the third quarter.

Further, Tharisa’s 2020 financial year production guidance remains at between 155 000 oz and 165 000 oz of PGMs on a 6E basis, and between 1.45-million tonnes and 1.55-million tonnes of chrome concentrate.

“The co-product model remains robust and we continue to enjoy the benefits of record PGM basket prices as we ramp up production in both PGM and chrome concentrates,” the company said on Friday.

Source: Mining Weekly

Saturday, January 11, 2020

According to Mining News Pro – The drill program and sampling protocol are being managed by geologists from GoldMinds Geoservices. Holes CS-19-08-W01 to W04 were wedges drilled off the historic CA-11-08 hole, the company said in a media release. Samples were collected using a 0.3-metre minimum length, 1.0-metre maximum length. Drill core recovery averaged 95%.

Canada Cobalt Works also announced separately that it has closed its deal to acquire PolyMet Labs, the only facility in the Northern Ontario Silver-Cobalt district that combines bullion pouring, bulk sampling, commercial assaying and e-waste processing.

At market close Friday, Canada Cobalt Works’ stock was up nearly 5%. The company has a C$57 million market capitalization.


Tuesday, December 24, 2019

According to Mining News Pro – The announcement follows months of extensive discussions with members of the Institutional Investors Group on Climate Change (IIGCC), which is backed by investors with over $4.7 trillion in assets under management.

Among the commitments made by Anglo are a pledge to publish its industry association memberships — including fees and rationale for joining — before its annual meeting in May. The company will also set out a process to address any “misalignments” in policy positions.

Anglo’s commitments are also made in line with the European Investor Expectations On Corporate Lobbying On Climate Change program developed by the IIGCC. Investors will expect the company to act accordingly with each aspect of the expectations, ensuring that its lobbying activity only supports, rather than frustrates, delivery of the Paris Agreement.

In a media brief, IIGCC CEO Stephanie Pfeifer said it is important for investors to see Anglo follow through with its commitments, and trade bodies it belongs to “must be called to account where they are opposing, impeding or evading the policy required to support decarbonization and reduce global emissions.”

In a previous audit of lobby groups, Anglo identified policy differences with organizations such as the World Coal Association, the Minerals Council of Australia, the Hydrogen Council and the Northwest Territories Chamber of Mines.

“Anglo American has now joined the group of global companies expected to slam the door on trade associations which seek to undermine climate action,” Anders Schelde, chief investment officer at Danish pension fund MP Pension, commented. “This demonstrates that shareholder action works and that those companies who fail to address inconsistencies in their support for the Paris Agreement will increasingly be challenged.”

Anglo now joins 11 other global companies, including Glencore, that have already committed to positive lobbying practices on climate change. The company is owner of various thermal coal mines in South Africa and Colombia, as well as coking coal assets in Australia.

Separately, Anglo has secured a licence required to raise the height of the tailings dam at Minas Gerais, its Brazilian iron ore mine, which would upgrade the operation to full capacity.


Monday, December 23, 2019

According to Mining News Pro – The world’s biggest coal buyer will likely purchase less from overseas in 2020 after a boost this year, according to analysts. With domestic production rising to a record and overall demand nearing a plateau, miners from top exporters such as Indonesia and Australia will find themselves squeezed.

China’s coal imports have raced ahead in 2019, surprising many who had predicted that the government would strictly clamp down on shipments in the later months just as it did in 2018. With economic growth at its weakest in decades amid a trade war with the U.S., import curbs were eased on the nation’s most-consumed fuel to help mitigate the pain of a slowdown.

Beijing regularly limits coal imports to buttress domestic miners amid a broader campaign to reduce the nation’s reliance on the fuel. Underpinning forecasts for lower imports in 2020 is the outlook for rising domestic supply as China promotes bigger and more efficient mining operations.

“New supply will create a coal glut,” said Michelle Leung, an analyst with Bloomberg Intelligence. That’s likely to cut China’s net imports by 8% in 2020 and hurt profitability of miners in Australia and Indonesia, she added.

China bought 299 million tons of coal for power and steel in the first 11 months, 10% higher than year-ago levels and a record for the period. It’s on course to exceed a 200 million- to 300 million-ton range touted by an industry official as necessary to support domestic miners and maintain balanced trade with exporting nations.

With more local supply to come in 2020, Chinese import controls will be a lasting feature and lead to a 25 million-ton drop in thermal coal purchases next year, Morgan Stanley estimates. The cutback will offset demand growth elsewhere in Asia, and seaborne prices may extend a slump to average $66 a ton from about $79 in 2019, the bank said.

For a country that burns and produces half the world’s coal, the strength of China’s import curbs may vary depending on the government’s competing priorities of protecting domestic miners and power plants. Utilities will face added pressure from January when market reforms are expected to result in lower electricity prices, which may hit their bottom line.

“The government wants to boost the economy any way it can, and a good way to do that is to let generators get the cheapest coal,” said James Stevenson, global director for coal research at IHS Markit Ltd. “At the same time, it doesn’t want imported coal risking domestic mining jobs.”
Market Revamp

Zeng Hao, an analyst at Fenwei Energy Information Services Co., is among the few expecting China to further relax its grip on coal imports in 2020 as policy makers would be disinclined to intervene in “market-based activity” amid the slowing economy, he said.

Economists surveyed by Bloomberg this month expect China’s top leadership to set the target for economic growth at “about 6%” for 2020, which implies a continuation of the growth slowdown. The goal for this year is 6% to 6.5%.

Given the oversupply in China’s coal market, domestic prices are likely to remain at low levels next year, said Zhai Yu, a senior consultant at Wood Mackenzie Ltd. based in Beijing. That will reduce the attractiveness of overseas cargoes.

Spot coal at the main Qinhuangdao port is at a three-year low of 543 yuan a ton. A slide toward 500 yuan could motivate the government to step up restrictions on imports, he said.


Sunday, December 22, 2019

According to Mining News Pro – The purchase of the claims by the Mimosa mine, which is jointly owned by Impala and Sibanye Gold,could be finalised by the end pf the year, according to the people who asked not to be identified because the discussions aren’t public.

Impala and Amplats mine most of their platinum group metals in neighboring South Africa, which has the world’s biggest reserves of platinum. But Zimbabwe’s deposits, second only to South Africa’s, are shallower and therefore cheaper to mine.

Impala and Amplats mine most of their platinum group metals in neighboring South Africa, which has the world’s biggest reserves of platinum. But Zimbabwe’s deposits, second only to South Africa’s, are shallower and therefore cheaper to mine.

Amplats’s Unki mine has two properties adjacent to Mimosa. “We are considering various options with regards to the mining of these claims,” Colin Chibafa, Unki’s chief financial officer, said in a written response to questions. “A decision in this regard is expected soon.”

Fungai Makoni, the managing director of Mimosa, confirmed Impala was negotiating with “another entity,” but declined to give further details. “Due to contractual obligations we can’t disclose the terms and the entity at this stage until we have finalised with them,” he said in an interview.

Impala, which operates Mimosa, and Sibanye in July said they were undertaking a feasibility study at Zimbabwe’s oldest platinum mine to assess the best way to develop the remaining resource, according to General Manager Alex Mushonhiwa.

“Mimosa has largely mined out many of the areas near the present mining infrastructure and has advanced work to potentially access some neighboring areas across the mine boundary,” Impala spokesman Johan Theron said in an emailed response to queries. “The most obvious way to do this would be to agree a royalty payment with the neighboring permit holder.”

A deal made commercial sense because the land was not being mined at present, one of the people said. Zimbabwean President Emmerson Mnangagwa in March this year said the government would enforce its policy of confiscating mining companies’ unused permits under a so-called use it or lose it clause, as the country seeks to boost mining and stimulate economic expansion.

Source: Mining Global