The rescue efforts currently taking place at the San Jose Mine in Copiapo, Chile, have grabbed the attention of the world's media.
If by some small chance you missed this incredible story. Here is one minute update:
On 05 August, the main access tunnel in the copper and gold mine collapses. 33 miners are trapped underground. Rescuers attempt to reach the miners via a ventilation shaft, however they are forced to abandon the plan as the mine is too unstable.
On 08 August, rescue workers begin drilling bore-holes into the mine to try to locate the miners.
On 22 August, the rescue team manages to drill a hole deep enough that it reaches a small emergency refuge room. Miraculously, all 33 miners are alive after being trapped underground for 17 days!
Cue wild celebrations outside the mine.
However, the celebrations are short lived as the rescue team estimates that it could take as long as four months to drill a hole wide enough to pull the miners one by one to the surface.
And so we come to the present.
These miners are now faced with the daunting prospect of living 2 300ft underground for 4 months in extremely cramped and difficult conditions. There are many questions as to how they will manage to survive and also keep their sanity.
Here are a number of articles that provide answers to many of the questions:
'Get us out of this hell': Trapped miners personally ask Chilean president to speed up their rescue
Trapped Chile Miners Face 4-Month Mental, Physical Test
NASA gets call to aid trapped miners
So how will the Chilean miners survive for three months half a mile underground?
]]>
August 25, 2010 by MiningNe.ws team
The rescue efforts currently taking place at the San Jose Mine in Copiapo, Chile, have grabbed the attention of the world's media.
If by some small chance you missed this incredible story. Here is one minute update:
On 05 August, the main access tunnel in the copper and gold mine collapses. 33 miners are trapped underground. Rescuers attempt to reach the miners via a ventilation shaft, however they are forced to abandon the plan as the mine is too unstable.
On 08 August, rescue workers begin drilling bore-holes into the mine to try to locate the miners.
On 22 August, the rescue team manages to drill a hole deep enough that it reaches a small emergency refuge room. Miraculously, all 33 miners are alive after being trapped underground for 17 days!
Cue wild celebrations outside the mine.
However, the celebrations are short lived as the rescue team estimates that it could take as long as four months to drill a hole wide enough to pull the miners one by one to the surface.
And so we come to the present.
These miners are now faced with the daunting prospect of living 2 300ft underground for 4 months in extremely cramped and difficult conditions. There are many questions as to how they will manage to survive and also keep their sanity.
Here are a number of articles that provide answers to many of the questions:
'Get us out of this hell': Trapped miners personally ask Chilean president to speed up their rescue
Trapped Chile Miners Face 4-Month Mental, Physical Test
NASA gets call to aid trapped miners
So how will the Chilean miners survive for three months half a mile underground?
Please login to comment
]]>
The rescue efforts currently taking place at the San Jose Mine in Copiapo, Chile, have grabbed the attention of the world's media.
If by some small chance you missed this incredible story. Here is one minute update:
On 05 August, the main access tunnel in the copper and gold mine collapses. 33 miners are trapped underground. Rescuers attempt to reach the miners via a ventilation shaft, however they are forced to abandon the plan as the mine is too unstable.
On 08 August, rescue workers begin drilling bore-holes into the mine to try to locate the miners.
On 22 August, the rescue team manages to drill a hole deep enough that it reaches a small emergency refuge room. Miraculously, all 33 miners are alive after being trapped underground for 17 days!
Cue wild celebrations outside the mine.
However, the celebrations are short lived as the rescue team estimates that it could take as long as four months to drill a hole wide enough to pull the miners one by one to the surface.
And so we come to the present.
These miners are now faced with the daunting prospect of living 2 300ft underground for 4 months in extremely cramped and difficult conditions. There are many questions as to how they will manage to survive and also keep their sanity.
Here are a number of articles that provide answers to many of the questions:
'Get us out of this hell': Trapped miners personally ask Chilean president to speed up their rescue
Trapped Chile Miners Face 4-Month Mental, Physical Test
NASA gets call to aid trapped miners
So how will the Chilean miners survive for three months half a mile underground?
]]>
August 25, 2010 by MiningNe.ws team
The rescue efforts currently taking place at the San Jose Mine in Copiapo, Chile, have grabbed the attention of the world's media.
If by some small chance you missed this incredible story. Here is one minute update:
On 05 August, the main access tunnel in the copper and gold mine collapses. 33 miners are trapped underground. Rescuers attempt to reach the miners via a ventilation shaft, however they are forced to abandon the plan as the mine is too unstable.
On 08 August, rescue workers begin drilling bore-holes into the mine to try to locate the miners.
On 22 August, the rescue team manages to drill a hole deep enough that it reaches a small emergency refuge room. Miraculously, all 33 miners are alive after being trapped underground for 17 days!
Cue wild celebrations outside the mine.
However, the celebrations are short lived as the rescue team estimates that it could take as long as four months to drill a hole wide enough to pull the miners one by one to the surface.
And so we come to the present.
These miners are now faced with the daunting prospect of living 2 300ft underground for 4 months in extremely cramped and difficult conditions. There are many questions as to how they will manage to survive and also keep their sanity.
Here are a number of articles that provide answers to many of the questions:
'Get us out of this hell': Trapped miners personally ask Chilean president to speed up their rescue
Trapped Chile Miners Face 4-Month Mental, Physical Test
NASA gets call to aid trapped miners
So how will the Chilean miners survive for three months half a mile underground?
Please login to comment
]]>
The Colombian Government must be doing something right.
There are many signs out there pointing to the fact that this country’s mining industry is on its way up. And mining companies across the globe are starting to take notice.
The Fraser Institute recently confirmed that Colombia is a great place to do business when it released its Survey of Mining Companies 2009/2010 (2010 Mid-Year Update).
This report ranked the most attractive jurisdictions for mineral exploration and development in the world. Colombia came in at No.18 – a significant increase from the 35th position achieved in the previous report.
By taking the 18th spot on the rankings, Colombia found itself above regions such as Ontario (20th), British Columbia (26th), Argentina (30th), Queensland (33rd), California (37th), New South Wales (38th) and Colorado (44th).
It seems there could be a new South American powerhouse in the making.
The Associated Press recently released an article featuring both the positive and negative aspects of Colombia’s booming mining industry. Here are the highlights from this article:
Pros
- Security gains and capitalist-friendly investment rules
- South America's third-largest oil producer behind Brazil and Venezuela, Colombia is on track to generate more than 1 million barrels of crude a day by 2012 - double its production in 2006 - the government says.
- A full 80 percent of the $7.2 billion in direct foreign investment the country reaped last year went to petroleum and mining - with investment in the latter sector nearly doubling to $3.1 billion.
- Colombia is so bullish on the foreign investment bonanza flourishing under new President Juan Manuel Santos, a former foreign trade, defense and finance minister, that the government is forecasting a healthy jump in gross domestic product this year - 4.5 percent.
- Colombia's foreign trade ministry says it expects Colombia to attract $10 billion in foreign investment this year, approaching the record $10.6 billion of 2008.
- While Venezuela and Ecuador have alienated many energy investors by rewriting oil contracts - increasing royalties and taxes so much that many multinationals pulled out - Colombia's outgoing president, Alvaro Uribe, offered strong incentives.
- Colombia has been the continent's No. 1 coal producer for 39 years running.
- Only about 5 million (19,000 square miles) of Colombia's 114 million hectares (440,000 square miles) have been explored, said Mario Ballesteros, the director of its Institute of Geology and Mining, though 40 percent of the country is legally off-limits due to natural reserves and environmentally sensitive regions.
Cons
- The country's nearly half-century-old conflict with leftist rebels still simmers and sometimes boils over, especially in rural areas where mining and energy exploration tend to occur.
- Historically, Colombia's illegal armed groups have exacted "war taxes" from mining and oil producers. Those that refused were attacked.
- In 2001 alone, the 480-mile Cano Limon pipeline was hit by 170 acts of sabotage blamed on rebels. The attacks were curbed beginning in 2002 under Uribe, when Colombian military units began guarding the pipeline, said Mauricio Tellez, spokesman for state-owned Ecopetrol, which operates the pipeline.
- "The recent mining boom - exploration and exploitation activities - has been accompanied by the arrival of illegal security groups," said Ariel Avila, a researcher at the Nuevo Arco Iris think tank.
- Avila said he's found in field studies over the last two years that illegal armed groups linked to far-right militias and leftist rebels are providing security for oil companies in several regions, especially in the southeastern states of Meta and Guaviare.
]]>
August 16, 2010 by MiningNe.ws team
The Colombian Government must be doing something right.
There are many signs out there pointing to the fact that this country’s mining industry is on its way up. And mining companies across the globe are starting to take notice.
The Fraser Institute recently confirmed that Colombia is a great place to do business when it released its Survey of Mining Companies 2009/2010 (2010 Mid-Year Update).
This report ranked the most attractive jurisdictions for mineral exploration and development in the world. Colombia came in at No.18 – a significant increase from the 35th position achieved in the previous report.
By taking the 18th spot on the rankings, Colombia found itself above regions such as Ontario (20th), British Columbia (26th), Argentina (30th), Queensland (33rd), California (37th), New South Wales (38th) and Colorado (44th).
It seems there could be a new South American powerhouse in the making.
The Associated Press recently released an article featuring both the positive and negative aspects of Colombia’s booming mining industry. Here are the highlights from this article:
Pros
- Security gains and capitalist-friendly investment rules
- South America's third-largest oil producer behind Brazil and Venezuela, Colombia is on track to generate more than 1 million barrels of crude a day by 2012 - double its production in 2006 - the government says.
- A full 80 percent of the $7.2 billion in direct foreign investment the country reaped last year went to petroleum and mining - with investment in the latter sector nearly doubling to $3.1 billion.
- Colombia is so bullish on the foreign investment bonanza flourishing under new President Juan Manuel Santos, a former foreign trade, defense and finance minister, that the government is forecasting a healthy jump in gross domestic product this year - 4.5 percent.
- Colombia's foreign trade ministry says it expects Colombia to attract $10 billion in foreign investment this year, approaching the record $10.6 billion of 2008.
- While Venezuela and Ecuador have alienated many energy investors by rewriting oil contracts - increasing royalties and taxes so much that many multinationals pulled out - Colombia's outgoing president, Alvaro Uribe, offered strong incentives.
- Colombia has been the continent's No. 1 coal producer for 39 years running.
- Only about 5 million (19,000 square miles) of Colombia's 114 million hectares (440,000 square miles) have been explored, said Mario Ballesteros, the director of its Institute of Geology and Mining, though 40 percent of the country is legally off-limits due to natural reserves and environmentally sensitive regions.
Cons
- The country's nearly half-century-old conflict with leftist rebels still simmers and sometimes boils over, especially in rural areas where mining and energy exploration tend to occur.
- Historically, Colombia's illegal armed groups have exacted "war taxes" from mining and oil producers. Those that refused were attacked.
- In 2001 alone, the 480-mile Cano Limon pipeline was hit by 170 acts of sabotage blamed on rebels. The attacks were curbed beginning in 2002 under Uribe, when Colombian military units began guarding the pipeline, said Mauricio Tellez, spokesman for state-owned Ecopetrol, which operates the pipeline.
- "The recent mining boom - exploration and exploitation activities - has been accompanied by the arrival of illegal security groups," said Ariel Avila, a researcher at the Nuevo Arco Iris think tank.
- Avila said he's found in field studies over the last two years that illegal armed groups linked to far-right militias and leftist rebels are providing security for oil companies in several regions, especially in the southeastern states of Meta and Guaviare.
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]]>
The Colombian Government must be doing something right.
There are many signs out there pointing to the fact that this country’s mining industry is on its way up. And mining companies across the globe are starting to take notice.
The Fraser Institute recently confirmed that Colombia is a great place to do business when it released its Survey of Mining Companies 2009/2010 (2010 Mid-Year Update).
This report ranked the most attractive jurisdictions for mineral exploration and development in the world. Colombia came in at No.18 – a significant increase from the 35th position achieved in the previous report.
By taking the 18th spot on the rankings, Colombia found itself above regions such as Ontario (20th), British Columbia (26th), Argentina (30th), Queensland (33rd), California (37th), New South Wales (38th) and Colorado (44th).
It seems there could be a new South American powerhouse in the making.
The Associated Press recently released an article featuring both the positive and negative aspects of Colombia’s booming mining industry. Here are the highlights from this article:
Pros
- Security gains and capitalist-friendly investment rules
- South America's third-largest oil producer behind Brazil and Venezuela, Colombia is on track to generate more than 1 million barrels of crude a day by 2012 - double its production in 2006 - the government says.
- A full 80 percent of the $7.2 billion in direct foreign investment the country reaped last year went to petroleum and mining - with investment in the latter sector nearly doubling to $3.1 billion.
- Colombia is so bullish on the foreign investment bonanza flourishing under new President Juan Manuel Santos, a former foreign trade, defense and finance minister, that the government is forecasting a healthy jump in gross domestic product this year - 4.5 percent.
- Colombia's foreign trade ministry says it expects Colombia to attract $10 billion in foreign investment this year, approaching the record $10.6 billion of 2008.
- While Venezuela and Ecuador have alienated many energy investors by rewriting oil contracts - increasing royalties and taxes so much that many multinationals pulled out - Colombia's outgoing president, Alvaro Uribe, offered strong incentives.
- Colombia has been the continent's No. 1 coal producer for 39 years running.
- Only about 5 million (19,000 square miles) of Colombia's 114 million hectares (440,000 square miles) have been explored, said Mario Ballesteros, the director of its Institute of Geology and Mining, though 40 percent of the country is legally off-limits due to natural reserves and environmentally sensitive regions.
Cons
- The country's nearly half-century-old conflict with leftist rebels still simmers and sometimes boils over, especially in rural areas where mining and energy exploration tend to occur.
- Historically, Colombia's illegal armed groups have exacted "war taxes" from mining and oil producers. Those that refused were attacked.
- In 2001 alone, the 480-mile Cano Limon pipeline was hit by 170 acts of sabotage blamed on rebels. The attacks were curbed beginning in 2002 under Uribe, when Colombian military units began guarding the pipeline, said Mauricio Tellez, spokesman for state-owned Ecopetrol, which operates the pipeline.
- "The recent mining boom - exploration and exploitation activities - has been accompanied by the arrival of illegal security groups," said Ariel Avila, a researcher at the Nuevo Arco Iris think tank.
- Avila said he's found in field studies over the last two years that illegal armed groups linked to far-right militias and leftist rebels are providing security for oil companies in several regions, especially in the southeastern states of Meta and Guaviare.
]]>
August 16, 2010 by MiningNe.ws team
The Colombian Government must be doing something right.
There are many signs out there pointing to the fact that this country’s mining industry is on its way up. And mining companies across the globe are starting to take notice.
The Fraser Institute recently confirmed that Colombia is a great place to do business when it released its Survey of Mining Companies 2009/2010 (2010 Mid-Year Update).
This report ranked the most attractive jurisdictions for mineral exploration and development in the world. Colombia came in at No.18 – a significant increase from the 35th position achieved in the previous report.
By taking the 18th spot on the rankings, Colombia found itself above regions such as Ontario (20th), British Columbia (26th), Argentina (30th), Queensland (33rd), California (37th), New South Wales (38th) and Colorado (44th).
It seems there could be a new South American powerhouse in the making.
The Associated Press recently released an article featuring both the positive and negative aspects of Colombia’s booming mining industry. Here are the highlights from this article:
Pros
- Security gains and capitalist-friendly investment rules
- South America's third-largest oil producer behind Brazil and Venezuela, Colombia is on track to generate more than 1 million barrels of crude a day by 2012 - double its production in 2006 - the government says.
- A full 80 percent of the $7.2 billion in direct foreign investment the country reaped last year went to petroleum and mining - with investment in the latter sector nearly doubling to $3.1 billion.
- Colombia is so bullish on the foreign investment bonanza flourishing under new President Juan Manuel Santos, a former foreign trade, defense and finance minister, that the government is forecasting a healthy jump in gross domestic product this year - 4.5 percent.
- Colombia's foreign trade ministry says it expects Colombia to attract $10 billion in foreign investment this year, approaching the record $10.6 billion of 2008.
- While Venezuela and Ecuador have alienated many energy investors by rewriting oil contracts - increasing royalties and taxes so much that many multinationals pulled out - Colombia's outgoing president, Alvaro Uribe, offered strong incentives.
- Colombia has been the continent's No. 1 coal producer for 39 years running.
- Only about 5 million (19,000 square miles) of Colombia's 114 million hectares (440,000 square miles) have been explored, said Mario Ballesteros, the director of its Institute of Geology and Mining, though 40 percent of the country is legally off-limits due to natural reserves and environmentally sensitive regions.
Cons
- The country's nearly half-century-old conflict with leftist rebels still simmers and sometimes boils over, especially in rural areas where mining and energy exploration tend to occur.
- Historically, Colombia's illegal armed groups have exacted "war taxes" from mining and oil producers. Those that refused were attacked.
- In 2001 alone, the 480-mile Cano Limon pipeline was hit by 170 acts of sabotage blamed on rebels. The attacks were curbed beginning in 2002 under Uribe, when Colombian military units began guarding the pipeline, said Mauricio Tellez, spokesman for state-owned Ecopetrol, which operates the pipeline.
- "The recent mining boom - exploration and exploitation activities - has been accompanied by the arrival of illegal security groups," said Ariel Avila, a researcher at the Nuevo Arco Iris think tank.
- Avila said he's found in field studies over the last two years that illegal armed groups linked to far-right militias and leftist rebels are providing security for oil companies in several regions, especially in the southeastern states of Meta and Guaviare.
Please login to comment
]]>
Here is an in-depth look into the top producing gold mining companies across the globe—Who are they and what do they do?
The world’s top five producing gold mining companies include: Barrick Gold, Goldcorp, AngloGold Ashanti, Newmont Mining Corporation and Kinross Gold Corporation.
Barrick Gold Corporation
Barrick Gold Corporation is well-known worldwide as being the largest pure gold mining company in the world. This gold industry giant has 26 operating gold mines, in addition to projects in the pipeline across Australia, North America, South America and Africa.
According to a 2009 report issued by the Company, it established 139.8 million ounces of proven, probable gold reserves—which is the largest amount of un-hedged reserves in the entire industry. Barrick Gold has an aggressive goal of reaching 7.6 to 8.0 million ounces of gold in 2010, at a total cash cost of $425 to $455 per ounce.
Barrick Gold Corporation is headquartered in Toronto, Ontario, Canada and the President and CEO is Aaron Regent. The Company’s vision is, “To be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.”
Goldcorp
Goldcorp is a leader in gold production, with operations located throughout North America, Central America and South America. According to a 2009 annual report issued by the Company, Goldcorp, “continues to be the growth leader among senior gold producers with a forecast production increase of 57 percent over the next five years.” The Company’s growth profile is unrivaled within the mining industry.
Chuck Jeannes, President and Chief Executive Officer said, “We experienced another record-breaking year in 2009, increasing gold production to 2.42 million ounces on the strength of organic growth at most of our mines. We also achieved record cash margins due not only to a higher average realized gold price of $978 per ounce, but also to total cash costs that declined to $295 per ounce for the year from $305 in 2008.
Cash flow from operations before changes in working capital totaled nearly $1.2 billion in 2009 while adjusted net earnings were $588.2 million in 2009 compared to $397.0 million in 2008.”
Goldcorp saw rapid growth from a solid intermediate player in the gold mining industry, to one of the dominant senior gold producers in the world. Goldcorp aims at being a low cost gold producer around the globe, with minimal environmental impact.
AngloGold Ashanti
This Johannesburg, South Africa-based top producing gold mining company has a total of 21 operations across four continents and ten countries—including the U.S., Tanzania, South Africa, Namibia, Mali, Guinea, Ghana, Brazil, Australia and Argentina.
The Company continues to support in-depth exploration activities as well in an attempt to identify new resource ounces of gold. In 2009, the company spent a total of $199.9 million for its exploration programs.
At the end of 2009, the amount of both proved and probable ore reserves totalled 71.4 million ounces. AngloGold Ashanti aims at becoming the leading global gold mining company, while respecting natural environments, valuing its people and their safety and minimizing costs and maximizing profits for shareholders.
Newmont Mining Corporation
This gold mining company has operations around the globe, within eight countries in five continents—including North America, South America, Australia, Asia and Africa. Newmont’s most significant assets or operations are found in: the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Newmont Mining Corporation’s most recent acquisition was of the largest undeveloped Greenfield in North America, Hope Bay, with plans to expand exploration projects into Peru and Ghana.
Newmont will also work on Australia’s largest producer at Boddington, Newmont. The Company also focuses its efforts on developing technological solutions for mining that improve the overall mining process.
Newmont Mining Corporation, headquartered in the U.S, is considered to be one of the largest gold producers in the world. The Company is also the first gold company to be a part of the S&P 500 Index and Fortune 500. Plus, in 2007, the Company became the first gold company to be selected as part of the Dow Jones Sustainability World Index.
At the end of 2009, Newmont had proven and probable gold reserves of 91.8 million equity ounces and an aggregate land position of roughly 39,000 square miles. According to Omar Jabara, Group Executive at Newmont, in 2010, “Equity gold production is expected to increase slightly to between 5.3 and 5.5 million ounces, primarily as a result of the continuing 12-month ramp-up to full production of Boddington, partially offset by lower production from Nevada and Yanacocha.”
Jabara says, “Next year, Newmont will celebrate 90 years of being in business. Our success over the decades has resulted from our commitment to innovation and adapting to changing circumstances. We have one of the best exploration teams in the industry who discovered some of the world’s most legendary gold and copper deposits including the Carlin Trend in Nevada, Yanacocha in Peru and Batu Hijau in Indonesia. In addition, our operations teams are among the most experienced and resourceful in the world.”
Kinross Gold Corporation
This major gold producer is based in Canada with eight operations in Brazil, Chile, Ecuador, Russia and the U.S. According to a letter to shareholders in the Company’s 2009 annual report, “Fuelled by new output from Kupol, Kettle River-Buckhorn, and Paracatu, we recorded our highest production ever – 2.24 million attributable gold equivalent ounces, a 22 percent increase over 2008. We generated record revenues of $2.4 billion, up 49 percent over 2008.
Our adjusted operating cash flow rose by 48% percent to $937 million. Adjusted operating cash flow per share reached $1.36, substantially above the previous record of $1.01 per share in 2008. Margins increased by 22 percent to $530 per ounce.” Kinross has a gold reserve base of approximately 46 million ounces. The Company is committed to safety for its workers, as well as environmental awareness surrounding its operations.
This report was originally published on http://www.energydigital.com
]]>
August 6, 2010 by MiningNe.ws team
Here is an in-depth look into the top producing gold mining companies across the globe—Who are they and what do they do?
The world’s top five producing gold mining companies include: Barrick Gold, Goldcorp, AngloGold Ashanti, Newmont Mining Corporation and Kinross Gold Corporation.
Barrick Gold Corporation
Barrick Gold Corporation is well-known worldwide as being the largest pure gold mining company in the world. This gold industry giant has 26 operating gold mines, in addition to projects in the pipeline across Australia, North America, South America and Africa.
According to a 2009 report issued by the Company, it established 139.8 million ounces of proven, probable gold reserves—which is the largest amount of un-hedged reserves in the entire industry. Barrick Gold has an aggressive goal of reaching 7.6 to 8.0 million ounces of gold in 2010, at a total cash cost of $425 to $455 per ounce.
Barrick Gold Corporation is headquartered in Toronto, Ontario, Canada and the President and CEO is Aaron Regent. The Company’s vision is, “To be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.”
Goldcorp
Goldcorp is a leader in gold production, with operations located throughout North America, Central America and South America. According to a 2009 annual report issued by the Company, Goldcorp, “continues to be the growth leader among senior gold producers with a forecast production increase of 57 percent over the next five years.” The Company’s growth profile is unrivaled within the mining industry.
Chuck Jeannes, President and Chief Executive Officer said, “We experienced another record-breaking year in 2009, increasing gold production to 2.42 million ounces on the strength of organic growth at most of our mines. We also achieved record cash margins due not only to a higher average realized gold price of $978 per ounce, but also to total cash costs that declined to $295 per ounce for the year from $305 in 2008.
Cash flow from operations before changes in working capital totaled nearly $1.2 billion in 2009 while adjusted net earnings were $588.2 million in 2009 compared to $397.0 million in 2008.”
Goldcorp saw rapid growth from a solid intermediate player in the gold mining industry, to one of the dominant senior gold producers in the world. Goldcorp aims at being a low cost gold producer around the globe, with minimal environmental impact.
AngloGold Ashanti
This Johannesburg, South Africa-based top producing gold mining company has a total of 21 operations across four continents and ten countries—including the U.S., Tanzania, South Africa, Namibia, Mali, Guinea, Ghana, Brazil, Australia and Argentina.
The Company continues to support in-depth exploration activities as well in an attempt to identify new resource ounces of gold. In 2009, the company spent a total of $199.9 million for its exploration programs.
At the end of 2009, the amount of both proved and probable ore reserves totalled 71.4 million ounces. AngloGold Ashanti aims at becoming the leading global gold mining company, while respecting natural environments, valuing its people and their safety and minimizing costs and maximizing profits for shareholders.
Newmont Mining Corporation
This gold mining company has operations around the globe, within eight countries in five continents—including North America, South America, Australia, Asia and Africa. Newmont’s most significant assets or operations are found in: the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Newmont Mining Corporation’s most recent acquisition was of the largest undeveloped Greenfield in North America, Hope Bay, with plans to expand exploration projects into Peru and Ghana.
Newmont will also work on Australia’s largest producer at Boddington, Newmont. The Company also focuses its efforts on developing technological solutions for mining that improve the overall mining process.
Newmont Mining Corporation, headquartered in the U.S, is considered to be one of the largest gold producers in the world. The Company is also the first gold company to be a part of the S&P 500 Index and Fortune 500. Plus, in 2007, the Company became the first gold company to be selected as part of the Dow Jones Sustainability World Index.
At the end of 2009, Newmont had proven and probable gold reserves of 91.8 million equity ounces and an aggregate land position of roughly 39,000 square miles. According to Omar Jabara, Group Executive at Newmont, in 2010, “Equity gold production is expected to increase slightly to between 5.3 and 5.5 million ounces, primarily as a result of the continuing 12-month ramp-up to full production of Boddington, partially offset by lower production from Nevada and Yanacocha.”
Jabara says, “Next year, Newmont will celebrate 90 years of being in business. Our success over the decades has resulted from our commitment to innovation and adapting to changing circumstances. We have one of the best exploration teams in the industry who discovered some of the world’s most legendary gold and copper deposits including the Carlin Trend in Nevada, Yanacocha in Peru and Batu Hijau in Indonesia. In addition, our operations teams are among the most experienced and resourceful in the world.”
Kinross Gold Corporation
This major gold producer is based in Canada with eight operations in Brazil, Chile, Ecuador, Russia and the U.S. According to a letter to shareholders in the Company’s 2009 annual report, “Fuelled by new output from Kupol, Kettle River-Buckhorn, and Paracatu, we recorded our highest production ever – 2.24 million attributable gold equivalent ounces, a 22 percent increase over 2008. We generated record revenues of $2.4 billion, up 49 percent over 2008.
Our adjusted operating cash flow rose by 48% percent to $937 million. Adjusted operating cash flow per share reached $1.36, substantially above the previous record of $1.01 per share in 2008. Margins increased by 22 percent to $530 per ounce.” Kinross has a gold reserve base of approximately 46 million ounces. The Company is committed to safety for its workers, as well as environmental awareness surrounding its operations.
This report was originally published on http://www.energydigital.com
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global, north america, africa, australia, gold, production, barrick gold, goldcorp, anglogold ashanti, newmont mining, kinross gold
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Here is an in-depth look into the top producing gold mining companies across the globe—Who are they and what do they do?
The world’s top five producing gold mining companies include: Barrick Gold, Goldcorp, AngloGold Ashanti, Newmont Mining Corporation and Kinross Gold Corporation.
Barrick Gold Corporation
Barrick Gold Corporation is well-known worldwide as being the largest pure gold mining company in the world. This gold industry giant has 26 operating gold mines, in addition to projects in the pipeline across Australia, North America, South America and Africa.
According to a 2009 report issued by the Company, it established 139.8 million ounces of proven, probable gold reserves—which is the largest amount of un-hedged reserves in the entire industry. Barrick Gold has an aggressive goal of reaching 7.6 to 8.0 million ounces of gold in 2010, at a total cash cost of $425 to $455 per ounce.
Barrick Gold Corporation is headquartered in Toronto, Ontario, Canada and the President and CEO is Aaron Regent. The Company’s vision is, “To be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.”
Goldcorp
Goldcorp is a leader in gold production, with operations located throughout North America, Central America and South America. According to a 2009 annual report issued by the Company, Goldcorp, “continues to be the growth leader among senior gold producers with a forecast production increase of 57 percent over the next five years.” The Company’s growth profile is unrivaled within the mining industry.
Chuck Jeannes, President and Chief Executive Officer said, “We experienced another record-breaking year in 2009, increasing gold production to 2.42 million ounces on the strength of organic growth at most of our mines. We also achieved record cash margins due not only to a higher average realized gold price of $978 per ounce, but also to total cash costs that declined to $295 per ounce for the year from $305 in 2008.
Cash flow from operations before changes in working capital totaled nearly $1.2 billion in 2009 while adjusted net earnings were $588.2 million in 2009 compared to $397.0 million in 2008.”
Goldcorp saw rapid growth from a solid intermediate player in the gold mining industry, to one of the dominant senior gold producers in the world. Goldcorp aims at being a low cost gold producer around the globe, with minimal environmental impact.
AngloGold Ashanti
This Johannesburg, South Africa-based top producing gold mining company has a total of 21 operations across four continents and ten countries—including the U.S., Tanzania, South Africa, Namibia, Mali, Guinea, Ghana, Brazil, Australia and Argentina.
The Company continues to support in-depth exploration activities as well in an attempt to identify new resource ounces of gold. In 2009, the company spent a total of $199.9 million for its exploration programs.
At the end of 2009, the amount of both proved and probable ore reserves totalled 71.4 million ounces. AngloGold Ashanti aims at becoming the leading global gold mining company, while respecting natural environments, valuing its people and their safety and minimizing costs and maximizing profits for shareholders.
Newmont Mining Corporation
This gold mining company has operations around the globe, within eight countries in five continents—including North America, South America, Australia, Asia and Africa. Newmont’s most significant assets or operations are found in: the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Newmont Mining Corporation’s most recent acquisition was of the largest undeveloped Greenfield in North America, Hope Bay, with plans to expand exploration projects into Peru and Ghana.
Newmont will also work on Australia’s largest producer at Boddington, Newmont. The Company also focuses its efforts on developing technological solutions for mining that improve the overall mining process.
Newmont Mining Corporation, headquartered in the U.S, is considered to be one of the largest gold producers in the world. The Company is also the first gold company to be a part of the S&P 500 Index and Fortune 500. Plus, in 2007, the Company became the first gold company to be selected as part of the Dow Jones Sustainability World Index.
At the end of 2009, Newmont had proven and probable gold reserves of 91.8 million equity ounces and an aggregate land position of roughly 39,000 square miles. According to Omar Jabara, Group Executive at Newmont, in 2010, “Equity gold production is expected to increase slightly to between 5.3 and 5.5 million ounces, primarily as a result of the continuing 12-month ramp-up to full production of Boddington, partially offset by lower production from Nevada and Yanacocha.”
Jabara says, “Next year, Newmont will celebrate 90 years of being in business. Our success over the decades has resulted from our commitment to innovation and adapting to changing circumstances. We have one of the best exploration teams in the industry who discovered some of the world’s most legendary gold and copper deposits including the Carlin Trend in Nevada, Yanacocha in Peru and Batu Hijau in Indonesia. In addition, our operations teams are among the most experienced and resourceful in the world.”
Kinross Gold Corporation
This major gold producer is based in Canada with eight operations in Brazil, Chile, Ecuador, Russia and the U.S. According to a letter to shareholders in the Company’s 2009 annual report, “Fuelled by new output from Kupol, Kettle River-Buckhorn, and Paracatu, we recorded our highest production ever – 2.24 million attributable gold equivalent ounces, a 22 percent increase over 2008. We generated record revenues of $2.4 billion, up 49 percent over 2008.
Our adjusted operating cash flow rose by 48% percent to $937 million. Adjusted operating cash flow per share reached $1.36, substantially above the previous record of $1.01 per share in 2008. Margins increased by 22 percent to $530 per ounce.” Kinross has a gold reserve base of approximately 46 million ounces. The Company is committed to safety for its workers, as well as environmental awareness surrounding its operations.
This report was originally published on http://www.energydigital.com
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August 6, 2010 by MiningNe.ws team
Here is an in-depth look into the top producing gold mining companies across the globe—Who are they and what do they do?
The world’s top five producing gold mining companies include: Barrick Gold, Goldcorp, AngloGold Ashanti, Newmont Mining Corporation and Kinross Gold Corporation.
Barrick Gold Corporation
Barrick Gold Corporation is well-known worldwide as being the largest pure gold mining company in the world. This gold industry giant has 26 operating gold mines, in addition to projects in the pipeline across Australia, North America, South America and Africa.
According to a 2009 report issued by the Company, it established 139.8 million ounces of proven, probable gold reserves—which is the largest amount of un-hedged reserves in the entire industry. Barrick Gold has an aggressive goal of reaching 7.6 to 8.0 million ounces of gold in 2010, at a total cash cost of $425 to $455 per ounce.
Barrick Gold Corporation is headquartered in Toronto, Ontario, Canada and the President and CEO is Aaron Regent. The Company’s vision is, “To be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.”
Goldcorp
Goldcorp is a leader in gold production, with operations located throughout North America, Central America and South America. According to a 2009 annual report issued by the Company, Goldcorp, “continues to be the growth leader among senior gold producers with a forecast production increase of 57 percent over the next five years.” The Company’s growth profile is unrivaled within the mining industry.
Chuck Jeannes, President and Chief Executive Officer said, “We experienced another record-breaking year in 2009, increasing gold production to 2.42 million ounces on the strength of organic growth at most of our mines. We also achieved record cash margins due not only to a higher average realized gold price of $978 per ounce, but also to total cash costs that declined to $295 per ounce for the year from $305 in 2008.
Cash flow from operations before changes in working capital totaled nearly $1.2 billion in 2009 while adjusted net earnings were $588.2 million in 2009 compared to $397.0 million in 2008.”
Goldcorp saw rapid growth from a solid intermediate player in the gold mining industry, to one of the dominant senior gold producers in the world. Goldcorp aims at being a low cost gold producer around the globe, with minimal environmental impact.
AngloGold Ashanti
This Johannesburg, South Africa-based top producing gold mining company has a total of 21 operations across four continents and ten countries—including the U.S., Tanzania, South Africa, Namibia, Mali, Guinea, Ghana, Brazil, Australia and Argentina.
The Company continues to support in-depth exploration activities as well in an attempt to identify new resource ounces of gold. In 2009, the company spent a total of $199.9 million for its exploration programs.
At the end of 2009, the amount of both proved and probable ore reserves totalled 71.4 million ounces. AngloGold Ashanti aims at becoming the leading global gold mining company, while respecting natural environments, valuing its people and their safety and minimizing costs and maximizing profits for shareholders.
Newmont Mining Corporation
This gold mining company has operations around the globe, within eight countries in five continents—including North America, South America, Australia, Asia and Africa. Newmont’s most significant assets or operations are found in: the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Newmont Mining Corporation’s most recent acquisition was of the largest undeveloped Greenfield in North America, Hope Bay, with plans to expand exploration projects into Peru and Ghana.
Newmont will also work on Australia’s largest producer at Boddington, Newmont. The Company also focuses its efforts on developing technological solutions for mining that improve the overall mining process.
Newmont Mining Corporation, headquartered in the U.S, is considered to be one of the largest gold producers in the world. The Company is also the first gold company to be a part of the S&P 500 Index and Fortune 500. Plus, in 2007, the Company became the first gold company to be selected as part of the Dow Jones Sustainability World Index.
At the end of 2009, Newmont had proven and probable gold reserves of 91.8 million equity ounces and an aggregate land position of roughly 39,000 square miles. According to Omar Jabara, Group Executive at Newmont, in 2010, “Equity gold production is expected to increase slightly to between 5.3 and 5.5 million ounces, primarily as a result of the continuing 12-month ramp-up to full production of Boddington, partially offset by lower production from Nevada and Yanacocha.”
Jabara says, “Next year, Newmont will celebrate 90 years of being in business. Our success over the decades has resulted from our commitment to innovation and adapting to changing circumstances. We have one of the best exploration teams in the industry who discovered some of the world’s most legendary gold and copper deposits including the Carlin Trend in Nevada, Yanacocha in Peru and Batu Hijau in Indonesia. In addition, our operations teams are among the most experienced and resourceful in the world.”
Kinross Gold Corporation
This major gold producer is based in Canada with eight operations in Brazil, Chile, Ecuador, Russia and the U.S. According to a letter to shareholders in the Company’s 2009 annual report, “Fuelled by new output from Kupol, Kettle River-Buckhorn, and Paracatu, we recorded our highest production ever – 2.24 million attributable gold equivalent ounces, a 22 percent increase over 2008. We generated record revenues of $2.4 billion, up 49 percent over 2008.
Our adjusted operating cash flow rose by 48% percent to $937 million. Adjusted operating cash flow per share reached $1.36, substantially above the previous record of $1.01 per share in 2008. Margins increased by 22 percent to $530 per ounce.” Kinross has a gold reserve base of approximately 46 million ounces. The Company is committed to safety for its workers, as well as environmental awareness surrounding its operations.
This report was originally published on http://www.energydigital.com
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global, north america, africa, australia, gold, production, barrick gold, goldcorp, anglogold ashanti, newmont mining, kinross gold
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The 2010 edition of the Diggers & Dealers conference came to a close last night in Kalgoorlie.
This year’s conference was dominated by widespread criticism of the proposed Mineral Resources Rent Tax (MRRT). Many of the top mining guys voiced their concerns and some even went as far as offering serious incentives to “creatively” oppose the tax.
A number of awards were handed out at the gala dinner. Here are some of the big winners:
Digger Award: Newmont Asia Pacific received this year’s Digger Award as recognition for developing the Boddington copper-gold mine (one of the world's largest projects) in Western Australia.
Dealer Award: This award went to Gindalbie Metals as a result of the significant deal the company brokered with Ansteel to develop the Karara mine.
GJ Stokes Memorial Award: David Moore, CEO of nickel miner Mincor Resources NL.
Best Emerging Company Award: Royal Resources
Reuters compiled another list of some of the notable comments made at this year’s conference. Here is a selection of some of these:
On gold prices and production
Gary Halverson, President of Barrick Gold for Asia Pacific: “When you add up all the basic ingredients, from our perspective, it certainly says there's more driving the gold price up than down. Even with increased exploration, there's a pressure that overall gold production in our industry is going to continue to shrink because we're depleting faster than we're finding new things on a global basis."
Mark Calderwood, Managing Director of Perseus Mining: "We see a much more promising future in Ghana and other parts of Africa than we would have in Australia. Perseus is aiming to produce over a quarter million ounces of gold annually from a mine under development in Ghana.”
On Chinese demand for resources
James Wilson, Resource Analyst at DJ Carmichael: "We have significant reliance on the Chinese economy, so any kind of slowing will affect us, but to what end is uncertain. But it couldn't be that material such that we will be worried about it at this stage. The Chinese economy is still coming very strongly, but there's also a concern of how strong it can be and how long that can be maintained before it runs into exhaustion."
]]>
August 5, 2010 by MiningNe.ws team
The 2010 edition of the Diggers & Dealers conference came to a close last night in Kalgoorlie.
This year’s conference was dominated by widespread criticism of the proposed Mineral Resources Rent Tax (MRRT). Many of the top mining guys voiced their concerns and some even went as far as offering serious incentives to “creatively” oppose the tax.
A number of awards were handed out at the gala dinner. Here are some of the big winners:
Digger Award: Newmont Asia Pacific received this year’s Digger Award as recognition for developing the Boddington copper-gold mine (one of the world's largest projects) in Western Australia.
Dealer Award: This award went to Gindalbie Metals as a result of the significant deal the company brokered with Ansteel to develop the Karara mine.
GJ Stokes Memorial Award: David Moore, CEO of nickel miner Mincor Resources NL.
Best Emerging Company Award: Royal Resources
Reuters compiled another list of some of the notable comments made at this year’s conference. Here is a selection of some of these:
On gold prices and production
Gary Halverson, President of Barrick Gold for Asia Pacific: “When you add up all the basic ingredients, from our perspective, it certainly says there's more driving the gold price up than down. Even with increased exploration, there's a pressure that overall gold production in our industry is going to continue to shrink because we're depleting faster than we're finding new things on a global basis."
Mark Calderwood, Managing Director of Perseus Mining: "We see a much more promising future in Ghana and other parts of Africa than we would have in Australia. Perseus is aiming to produce over a quarter million ounces of gold annually from a mine under development in Ghana.”
On Chinese demand for resources
James Wilson, Resource Analyst at DJ Carmichael: "We have significant reliance on the Chinese economy, so any kind of slowing will affect us, but to what end is uncertain. But it couldn't be that material such that we will be worried about it at this stage. The Chinese economy is still coming very strongly, but there's also a concern of how strong it can be and how long that can be maintained before it runs into exhaustion."
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]]>
The 2010 edition of the Diggers & Dealers conference came to a close last night in Kalgoorlie.
This year’s conference was dominated by widespread criticism of the proposed Mineral Resources Rent Tax (MRRT). Many of the top mining guys voiced their concerns and some even went as far as offering serious incentives to “creatively” oppose the tax.
A number of awards were handed out at the gala dinner. Here are some of the big winners:
Digger Award: Newmont Asia Pacific received this year’s Digger Award as recognition for developing the Boddington copper-gold mine (one of the world's largest projects) in Western Australia.
Dealer Award: This award went to Gindalbie Metals as a result of the significant deal the company brokered with Ansteel to develop the Karara mine.
GJ Stokes Memorial Award: David Moore, CEO of nickel miner Mincor Resources NL.
Best Emerging Company Award: Royal Resources
Reuters compiled another list of some of the notable comments made at this year’s conference. Here is a selection of some of these:
On gold prices and production
Gary Halverson, President of Barrick Gold for Asia Pacific: “When you add up all the basic ingredients, from our perspective, it certainly says there's more driving the gold price up than down. Even with increased exploration, there's a pressure that overall gold production in our industry is going to continue to shrink because we're depleting faster than we're finding new things on a global basis."
Mark Calderwood, Managing Director of Perseus Mining: "We see a much more promising future in Ghana and other parts of Africa than we would have in Australia. Perseus is aiming to produce over a quarter million ounces of gold annually from a mine under development in Ghana.”
On Chinese demand for resources
James Wilson, Resource Analyst at DJ Carmichael: "We have significant reliance on the Chinese economy, so any kind of slowing will affect us, but to what end is uncertain. But it couldn't be that material such that we will be worried about it at this stage. The Chinese economy is still coming very strongly, but there's also a concern of how strong it can be and how long that can be maintained before it runs into exhaustion."
]]>
August 5, 2010 by MiningNe.ws team
The 2010 edition of the Diggers & Dealers conference came to a close last night in Kalgoorlie.
This year’s conference was dominated by widespread criticism of the proposed Mineral Resources Rent Tax (MRRT). Many of the top mining guys voiced their concerns and some even went as far as offering serious incentives to “creatively” oppose the tax.
A number of awards were handed out at the gala dinner. Here are some of the big winners:
Digger Award: Newmont Asia Pacific received this year’s Digger Award as recognition for developing the Boddington copper-gold mine (one of the world's largest projects) in Western Australia.
Dealer Award: This award went to Gindalbie Metals as a result of the significant deal the company brokered with Ansteel to develop the Karara mine.
GJ Stokes Memorial Award: David Moore, CEO of nickel miner Mincor Resources NL.
Best Emerging Company Award: Royal Resources
Reuters compiled another list of some of the notable comments made at this year’s conference. Here is a selection of some of these:
On gold prices and production
Gary Halverson, President of Barrick Gold for Asia Pacific: “When you add up all the basic ingredients, from our perspective, it certainly says there's more driving the gold price up than down. Even with increased exploration, there's a pressure that overall gold production in our industry is going to continue to shrink because we're depleting faster than we're finding new things on a global basis."
Mark Calderwood, Managing Director of Perseus Mining: "We see a much more promising future in Ghana and other parts of Africa than we would have in Australia. Perseus is aiming to produce over a quarter million ounces of gold annually from a mine under development in Ghana.”
On Chinese demand for resources
James Wilson, Resource Analyst at DJ Carmichael: "We have significant reliance on the Chinese economy, so any kind of slowing will affect us, but to what end is uncertain. But it couldn't be that material such that we will be worried about it at this stage. The Chinese economy is still coming very strongly, but there's also a concern of how strong it can be and how long that can be maintained before it runs into exhaustion."
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]]>
The annual Diggers & Dealers Conference kicked off today in the heart of Australia’s gold mining industry, Kalgoorlie.
The delegates have plenty to discuss over the next few days as the Mineral Resource Rent Tax (MRRT) is sure to be a hot topic, along with many a comment on the topic of Chinese growth and demand for resources.
Reuters have put together some of the comments that grabbed the media’s attention on the first day of the conference. Here are some of these:
Gavin Thomas, CEO Kingsgate Consolidated: "The economy of China has free cash today in excess of $5 trillion and that's an economic powerhouse that just keeps on going and going for a long long time. We see China growing maybe at volatile rates, but they will still need commodities. They're still building a Manhattan once a year, okay, they make three quarters of Manhattan.”
Barry Eldridge, Diggers & Dealers Chairman: "A change in Prime Minister does not necessarily mean a change in motivation and while we hear the words compromise and negotiation, we as an industry must continue to be aware and alert as this tax remains, in my view, a form of economic terrorism. We must take a political stance against the proposal to rape essential resources from companies that allow them to grow and continue to entice investors which drives the ability to develop assets. The tax grab will unfortunately deliver what will be, at best, a superficial benefit to the community as this proposed resources rent tax is unsustainable in the long term."
Niall Ferguson, Harvard Professor: "The trouble is that these things don't last forever. Taxes that look like a good idea in a boom can seem like a bad idea when things turn."]]>
August 2, 2010 by MiningNe.ws team
The annual Diggers & Dealers Conference kicked off today in the heart of Australia’s gold mining industry, Kalgoorlie.
The delegates have plenty to discuss over the next few days as the Mineral Resource Rent Tax (MRRT) is sure to be a hot topic, along with many a comment on the topic of Chinese growth and demand for resources.
Reuters have put together some of the comments that grabbed the media’s attention on the first day of the conference. Here are some of these:
Gavin Thomas, CEO Kingsgate Consolidated: "The economy of China has free cash today in excess of $5 trillion and that's an economic powerhouse that just keeps on going and going for a long long time. We see China growing maybe at volatile rates, but they will still need commodities. They're still building a Manhattan once a year, okay, they make three quarters of Manhattan.”
Barry Eldridge, Diggers & Dealers Chairman: "A change in Prime Minister does not necessarily mean a change in motivation and while we hear the words compromise and negotiation, we as an industry must continue to be aware and alert as this tax remains, in my view, a form of economic terrorism. We must take a political stance against the proposal to rape essential resources from companies that allow them to grow and continue to entice investors which drives the ability to develop assets. The tax grab will unfortunately deliver what will be, at best, a superficial benefit to the community as this proposed resources rent tax is unsustainable in the long term."
Niall Ferguson, Harvard Professor: "The trouble is that these things don't last forever. Taxes that look like a good idea in a boom can seem like a bad idea when things turn."
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]]>
I read an interesting report on the first day of the Diggers & Dealers conference this morning - according to ABC News, the head of Fortescue Metals Group, Andrew Forrest promised $5,000 in FMG shares to the delegate who can create the best anti-mining tax slogan!
It will be interesting to see if anyone takes him up on his offer!
]]>
The annual Diggers & Dealers Conference kicked off today in the heart of Australia’s gold mining industry, Kalgoorlie.
The delegates have plenty to discuss over the next few days as the Mineral Resource Rent Tax (MRRT) is sure to be a hot topic, along with many a comment on the topic of Chinese growth and demand for resources.
Reuters have put together some of the comments that grabbed the media’s attention on the first day of the conference. Here are some of these:
Gavin Thomas, CEO Kingsgate Consolidated: "The economy of China has free cash today in excess of $5 trillion and that's an economic powerhouse that just keeps on going and going for a long long time. We see China growing maybe at volatile rates, but they will still need commodities. They're still building a Manhattan once a year, okay, they make three quarters of Manhattan.”
Barry Eldridge, Diggers & Dealers Chairman: "A change in Prime Minister does not necessarily mean a change in motivation and while we hear the words compromise and negotiation, we as an industry must continue to be aware and alert as this tax remains, in my view, a form of economic terrorism. We must take a political stance against the proposal to rape essential resources from companies that allow them to grow and continue to entice investors which drives the ability to develop assets. The tax grab will unfortunately deliver what will be, at best, a superficial benefit to the community as this proposed resources rent tax is unsustainable in the long term."
Niall Ferguson, Harvard Professor: "The trouble is that these things don't last forever. Taxes that look like a good idea in a boom can seem like a bad idea when things turn."]]>
August 2, 2010 by MiningNe.ws team
The annual Diggers & Dealers Conference kicked off today in the heart of Australia’s gold mining industry, Kalgoorlie.
The delegates have plenty to discuss over the next few days as the Mineral Resource Rent Tax (MRRT) is sure to be a hot topic, along with many a comment on the topic of Chinese growth and demand for resources.
Reuters have put together some of the comments that grabbed the media’s attention on the first day of the conference. Here are some of these:
Gavin Thomas, CEO Kingsgate Consolidated: "The economy of China has free cash today in excess of $5 trillion and that's an economic powerhouse that just keeps on going and going for a long long time. We see China growing maybe at volatile rates, but they will still need commodities. They're still building a Manhattan once a year, okay, they make three quarters of Manhattan.”
Barry Eldridge, Diggers & Dealers Chairman: "A change in Prime Minister does not necessarily mean a change in motivation and while we hear the words compromise and negotiation, we as an industry must continue to be aware and alert as this tax remains, in my view, a form of economic terrorism. We must take a political stance against the proposal to rape essential resources from companies that allow them to grow and continue to entice investors which drives the ability to develop assets. The tax grab will unfortunately deliver what will be, at best, a superficial benefit to the community as this proposed resources rent tax is unsustainable in the long term."
Niall Ferguson, Harvard Professor: "The trouble is that these things don't last forever. Taxes that look like a good idea in a boom can seem like a bad idea when things turn."
Please login to comment
]]>
I read an interesting report on the first day of the Diggers & Dealers conference this morning - according to ABC News, the head of Fortescue Metals Group, Andrew Forrest promised $5,000 in FMG shares to the delegate who can create the best anti-mining tax slogan!
It will be interesting to see if anyone takes him up on his offer!
]]>
Kevin Rudd is out and Julia Gillard is in. The RSPT is out and the MRRT is in. These significant changes in Australia’s political structure seemed to take place overnight.
Much has been said over the past few weeks about Rudd’s downfall and most discussions have focused on that touchy subject of the 40% percent mining tax. But now there is new hope in the Australian mining industry as Gillard has brought fresh ideas to the table and it seems the MRRT is a welcome replacement to the RSPT.
Although it appears that the junior explorers are not altogether pleased - I’m sure we’ll hear more about this in the coming weeks.
The introduction of the MRRT has brought with it a flurry of activity and we’ve seen companies such as Rio Tinto and Xstrata reinstating projects that had been shelved due to the proposed mining tax.
Reuters recently compiled a list containing the status of projects that were scrapped, put on hold or under threat prior to the new tax proposal. It includes magnetite iron ore mines that were under threat because of their higher costs versus hematite ore. Here is that list:
REINSTATED
Rio Tinto
Rio said it has resumed an economic feasibility study to lift annual iron ore production in west Australia's Pilbara region by 100 million tonnes to 330 million tonnes in five years Longer term, it wants to raise output to 600 million tonnes.
Xstrata
The global miner said it has reinstated A$586 million of expenditure on its Wandoan thermal coal project and the expansion of its Ernest Henry copper mine. The shelved spending was part of a total capital investment of A$5.4 billion. It also has resumed A$30 million in copper exploration work.
PROCEEDING, BUT SEEKING EXEMPTION FROM THE NEW TAX
Gindalbie Metals
Gindalbie has agreed to deliver nearly 900 million tonnes of iron ore from magnetite deposits to China's No. 2 steelmaker, Angang Steel (Ansteel) over three decades, with first shipment of 10 million tonnes due in 2011 via the Indian Ocean port in Geraldton, north of Perth. A second larger port is needed to maximise production.
Citi Pacific
Plans to export the first magnetite iron from its Sino project in 2011, working up to 27 million tonnes per year.
Atlas Iron
Seeking to exploit its Ridley magnetite iron ore deposit and is in talks with potential overseas partners.
Fortescue Metals Group
Investigating linking undeveloped magnetite deposits via rail line to its new Anketell Point export terminal.
Grange Resources
47.1 percent owned by Chinese steelmaker Shagang, is targeting 6.6 million-tonnes-per-year from its Southdown magnetite mine yielding 6.8 million tonnes of iron ore pellets.
Sinosteel Midwest
Requires A$17 billion over four years to develop Koolanooka/Blue Hills magnetite deposits and rail lines and shipping terminals
ON HOLD, BUT MAY NOW BE REINSTATED
Fortescue Metals Group
Solomon Hub, Western Australia - $9 billion proposed investment in 160 million tonnes a year iron ore mine put on hold. Capacity would be roughly equal to what world no.3 iron ore miner BHP currently mines in Australia. Includes plan to build a new export terminal at Anketell Point. Fortescue's plan is to lay its own rail lines from the deposit to the Indian Ocean. Western Hub, Western Australia - $6 billion proposed investment. Little exploration work done so far on the project.
Citi estimates the impact of the new tax structure on Fortescue's net present value drops to 2 percent, from 25 percent under the original tax plan.
UNDER REVIEW, BUT MAY NOW PROCEED
BHP Billiton
Pilbara iron ore, Western Australia - BHP has plans to expand iron ore production capacity from 205 million tonnes a year in 2011 to 240 million tonnes by 2015 and is studying plans to increase that to 350 million tonnes thereafter.
Bowen Basin, Queensland - 45 million tonnes a year expansion in coking coal production to 105 million tonnes a year and export terminal expansion.
SCRAPPED
Cape Lambert Resources
Cape Lambert South project, Western Australia - magnetite iron ore project, potentially worth A$400 million ($345 million), scrapped.
DELAYED INVESTMENT DECISIONS
Queensland Coal Seam Gas Projects
BG Group - Said the new resource tax offers competitive economics for its planned Queensland Curtis LNG project and would recommend the A$10-A$15 billion development to the board for approval later this year.
Santos - Targetting to approve a 3.4 mtpa LNG project with Malaysia's Petronas [PETR.UL]. The project was estimated in 2008 to cost A$7.7 billion.
Origin Energy - Made no mention of its planned A$35 billion Australia Pacific LNG project with ConocoPhillips, but said it was encouraged by the new tax. The project would produce up to 18 million tonnes of LNG per year.
Royal Dutch Shell and PetroChina - Curtis Island project with 16 million tonnes a year capacity. The venture is bidding A$3.45 billion for Australia's Arrow Energy for its coal seam gas. Shell said the new tax structure strikes a balance between private and public needs in the sector.
Source: Reuters
]]>
July 8, 2010 by MiningNe.ws team
Kevin Rudd is out and Julia Gillard is in. The RSPT is out and the MRRT is in. These significant changes in Australia’s political structure seemed to take place overnight.
Much has been said over the past few weeks about Rudd’s downfall and most discussions have focused on that touchy subject of the 40% percent mining tax. But now there is new hope in the Australian mining industry as Gillard has brought fresh ideas to the table and it seems the MRRT is a welcome replacement to the RSPT.
Although it appears that the junior explorers are not altogether pleased - I’m sure we’ll hear more about this in the coming weeks.
The introduction of the MRRT has brought with it a flurry of activity and we’ve seen companies such as Rio Tinto and Xstrata reinstating projects that had been shelved due to the proposed mining tax.
Reuters recently compiled a list containing the status of projects that were scrapped, put on hold or under threat prior to the new tax proposal. It includes magnetite iron ore mines that were under threat because of their higher costs versus hematite ore. Here is that list:
REINSTATED
Rio Tinto
Rio said it has resumed an economic feasibility study to lift annual iron ore production in west Australia's Pilbara region by 100 million tonnes to 330 million tonnes in five years Longer term, it wants to raise output to 600 million tonnes.
Xstrata
The global miner said it has reinstated A$586 million of expenditure on its Wandoan thermal coal project and the expansion of its Ernest Henry copper mine. The shelved spending was part of a total capital investment of A$5.4 billion. It also has resumed A$30 million in copper exploration work.
PROCEEDING, BUT SEEKING EXEMPTION FROM THE NEW TAX
Gindalbie Metals
Gindalbie has agreed to deliver nearly 900 million tonnes of iron ore from magnetite deposits to China's No. 2 steelmaker, Angang Steel (Ansteel) over three decades, with first shipment of 10 million tonnes due in 2011 via the Indian Ocean port in Geraldton, north of Perth. A second larger port is needed to maximise production.
Citi Pacific
Plans to export the first magnetite iron from its Sino project in 2011, working up to 27 million tonnes per year.
Atlas Iron
Seeking to exploit its Ridley magnetite iron ore deposit and is in talks with potential overseas partners.
Fortescue Metals Group
Investigating linking undeveloped magnetite deposits via rail line to its new Anketell Point export terminal.
Grange Resources
47.1 percent owned by Chinese steelmaker Shagang, is targeting 6.6 million-tonnes-per-year from its Southdown magnetite mine yielding 6.8 million tonnes of iron ore pellets.
Sinosteel Midwest
Requires A$17 billion over four years to develop Koolanooka/Blue Hills magnetite deposits and rail lines and shipping terminals
ON HOLD, BUT MAY NOW BE REINSTATED
Fortescue Metals Group
Solomon Hub, Western Australia - $9 billion proposed investment in 160 million tonnes a year iron ore mine put on hold. Capacity would be roughly equal to what world no.3 iron ore miner BHP currently mines in Australia. Includes plan to build a new export terminal at Anketell Point. Fortescue's plan is to lay its own rail lines from the deposit to the Indian Ocean. Western Hub, Western Australia - $6 billion proposed investment. Little exploration work done so far on the project.
Citi estimates the impact of the new tax structure on Fortescue's net present value drops to 2 percent, from 25 percent under the original tax plan.
UNDER REVIEW, BUT MAY NOW PROCEED
BHP Billiton
Pilbara iron ore, Western Australia - BHP has plans to expand iron ore production capacity from 205 million tonnes a year in 2011 to 240 million tonnes by 2015 and is studying plans to increase that to 350 million tonnes thereafter.
Bowen Basin, Queensland - 45 million tonnes a year expansion in coking coal production to 105 million tonnes a year and export terminal expansion.
SCRAPPED
Cape Lambert Resources
Cape Lambert South project, Western Australia - magnetite iron ore project, potentially worth A$400 million ($345 million), scrapped.
DELAYED INVESTMENT DECISIONS
Queensland Coal Seam Gas Projects
BG Group - Said the new resource tax offers competitive economics for its planned Queensland Curtis LNG project and would recommend the A$10-A$15 billion development to the board for approval later this year.
Santos - Targetting to approve a 3.4 mtpa LNG project with Malaysia's Petronas [PETR.UL]. The project was estimated in 2008 to cost A$7.7 billion.
Origin Energy - Made no mention of its planned A$35 billion Australia Pacific LNG project with ConocoPhillips, but said it was encouraged by the new tax. The project would produce up to 18 million tonnes of LNG per year.
Royal Dutch Shell and PetroChina - Curtis Island project with 16 million tonnes a year capacity. The venture is bidding A$3.45 billion for Australia's Arrow Energy for its coal seam gas. Shell said the new tax structure strikes a balance between private and public needs in the sector.
Source: Reuters
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]]>
Kevin Rudd is out and Julia Gillard is in. The RSPT is out and the MRRT is in. These significant changes in Australia’s political structure seemed to take place overnight.
Much has been said over the past few weeks about Rudd’s downfall and most discussions have focused on that touchy subject of the 40% percent mining tax. But now there is new hope in the Australian mining industry as Gillard has brought fresh ideas to the table and it seems the MRRT is a welcome replacement to the RSPT.
Although it appears that the junior explorers are not altogether pleased - I’m sure we’ll hear more about this in the coming weeks.
The introduction of the MRRT has brought with it a flurry of activity and we’ve seen companies such as Rio Tinto and Xstrata reinstating projects that had been shelved due to the proposed mining tax.
Reuters recently compiled a list containing the status of projects that were scrapped, put on hold or under threat prior to the new tax proposal. It includes magnetite iron ore mines that were under threat because of their higher costs versus hematite ore. Here is that list:
REINSTATED
Rio Tinto
Rio said it has resumed an economic feasibility study to lift annual iron ore production in west Australia's Pilbara region by 100 million tonnes to 330 million tonnes in five years Longer term, it wants to raise output to 600 million tonnes.
Xstrata
The global miner said it has reinstated A$586 million of expenditure on its Wandoan thermal coal project and the expansion of its Ernest Henry copper mine. The shelved spending was part of a total capital investment of A$5.4 billion. It also has resumed A$30 million in copper exploration work.
PROCEEDING, BUT SEEKING EXEMPTION FROM THE NEW TAX
Gindalbie Metals
Gindalbie has agreed to deliver nearly 900 million tonnes of iron ore from magnetite deposits to China's No. 2 steelmaker, Angang Steel (Ansteel) over three decades, with first shipment of 10 million tonnes due in 2011 via the Indian Ocean port in Geraldton, north of Perth. A second larger port is needed to maximise production.
Citi Pacific
Plans to export the first magnetite iron from its Sino project in 2011, working up to 27 million tonnes per year.
Atlas Iron
Seeking to exploit its Ridley magnetite iron ore deposit and is in talks with potential overseas partners.
Fortescue Metals Group
Investigating linking undeveloped magnetite deposits via rail line to its new Anketell Point export terminal.
Grange Resources
47.1 percent owned by Chinese steelmaker Shagang, is targeting 6.6 million-tonnes-per-year from its Southdown magnetite mine yielding 6.8 million tonnes of iron ore pellets.
Sinosteel Midwest
Requires A$17 billion over four years to develop Koolanooka/Blue Hills magnetite deposits and rail lines and shipping terminals
ON HOLD, BUT MAY NOW BE REINSTATED
Fortescue Metals Group
Solomon Hub, Western Australia - $9 billion proposed investment in 160 million tonnes a year iron ore mine put on hold. Capacity would be roughly equal to what world no.3 iron ore miner BHP currently mines in Australia. Includes plan to build a new export terminal at Anketell Point. Fortescue's plan is to lay its own rail lines from the deposit to the Indian Ocean. Western Hub, Western Australia - $6 billion proposed investment. Little exploration work done so far on the project.
Citi estimates the impact of the new tax structure on Fortescue's net present value drops to 2 percent, from 25 percent under the original tax plan.
UNDER REVIEW, BUT MAY NOW PROCEED
BHP Billiton
Pilbara iron ore, Western Australia - BHP has plans to expand iron ore production capacity from 205 million tonnes a year in 2011 to 240 million tonnes by 2015 and is studying plans to increase that to 350 million tonnes thereafter.
Bowen Basin, Queensland - 45 million tonnes a year expansion in coking coal production to 105 million tonnes a year and export terminal expansion.
SCRAPPED
Cape Lambert Resources
Cape Lambert South project, Western Australia - magnetite iron ore project, potentially worth A$400 million ($345 million), scrapped.
DELAYED INVESTMENT DECISIONS
Queensland Coal Seam Gas Projects
BG Group - Said the new resource tax offers competitive economics for its planned Queensland Curtis LNG project and would recommend the A$10-A$15 billion development to the board for approval later this year.
Santos - Targetting to approve a 3.4 mtpa LNG project with Malaysia's Petronas [PETR.UL]. The project was estimated in 2008 to cost A$7.7 billion.
Origin Energy - Made no mention of its planned A$35 billion Australia Pacific LNG project with ConocoPhillips, but said it was encouraged by the new tax. The project would produce up to 18 million tonnes of LNG per year.
Royal Dutch Shell and PetroChina - Curtis Island project with 16 million tonnes a year capacity. The venture is bidding A$3.45 billion for Australia's Arrow Energy for its coal seam gas. Shell said the new tax structure strikes a balance between private and public needs in the sector.
Source: Reuters
]]>
July 8, 2010 by MiningNe.ws team
Kevin Rudd is out and Julia Gillard is in. The RSPT is out and the MRRT is in. These significant changes in Australia’s political structure seemed to take place overnight.
Much has been said over the past few weeks about Rudd’s downfall and most discussions have focused on that touchy subject of the 40% percent mining tax. But now there is new hope in the Australian mining industry as Gillard has brought fresh ideas to the table and it seems the MRRT is a welcome replacement to the RSPT.
Although it appears that the junior explorers are not altogether pleased - I’m sure we’ll hear more about this in the coming weeks.
The introduction of the MRRT has brought with it a flurry of activity and we’ve seen companies such as Rio Tinto and Xstrata reinstating projects that had been shelved due to the proposed mining tax.
Reuters recently compiled a list containing the status of projects that were scrapped, put on hold or under threat prior to the new tax proposal. It includes magnetite iron ore mines that were under threat because of their higher costs versus hematite ore. Here is that list:
REINSTATED
Rio Tinto
Rio said it has resumed an economic feasibility study to lift annual iron ore production in west Australia's Pilbara region by 100 million tonnes to 330 million tonnes in five years Longer term, it wants to raise output to 600 million tonnes.
Xstrata
The global miner said it has reinstated A$586 million of expenditure on its Wandoan thermal coal project and the expansion of its Ernest Henry copper mine. The shelved spending was part of a total capital investment of A$5.4 billion. It also has resumed A$30 million in copper exploration work.
PROCEEDING, BUT SEEKING EXEMPTION FROM THE NEW TAX
Gindalbie Metals
Gindalbie has agreed to deliver nearly 900 million tonnes of iron ore from magnetite deposits to China's No. 2 steelmaker, Angang Steel (Ansteel) over three decades, with first shipment of 10 million tonnes due in 2011 via the Indian Ocean port in Geraldton, north of Perth. A second larger port is needed to maximise production.
Citi Pacific
Plans to export the first magnetite iron from its Sino project in 2011, working up to 27 million tonnes per year.
Atlas Iron
Seeking to exploit its Ridley magnetite iron ore deposit and is in talks with potential overseas partners.
Fortescue Metals Group
Investigating linking undeveloped magnetite deposits via rail line to its new Anketell Point export terminal.
Grange Resources
47.1 percent owned by Chinese steelmaker Shagang, is targeting 6.6 million-tonnes-per-year from its Southdown magnetite mine yielding 6.8 million tonnes of iron ore pellets.
Sinosteel Midwest
Requires A$17 billion over four years to develop Koolanooka/Blue Hills magnetite deposits and rail lines and shipping terminals
ON HOLD, BUT MAY NOW BE REINSTATED
Fortescue Metals Group
Solomon Hub, Western Australia - $9 billion proposed investment in 160 million tonnes a year iron ore mine put on hold. Capacity would be roughly equal to what world no.3 iron ore miner BHP currently mines in Australia. Includes plan to build a new export terminal at Anketell Point. Fortescue's plan is to lay its own rail lines from the deposit to the Indian Ocean. Western Hub, Western Australia - $6 billion proposed investment. Little exploration work done so far on the project.
Citi estimates the impact of the new tax structure on Fortescue's net present value drops to 2 percent, from 25 percent under the original tax plan.
UNDER REVIEW, BUT MAY NOW PROCEED
BHP Billiton
Pilbara iron ore, Western Australia - BHP has plans to expand iron ore production capacity from 205 million tonnes a year in 2011 to 240 million tonnes by 2015 and is studying plans to increase that to 350 million tonnes thereafter.
Bowen Basin, Queensland - 45 million tonnes a year expansion in coking coal production to 105 million tonnes a year and export terminal expansion.
SCRAPPED
Cape Lambert Resources
Cape Lambert South project, Western Australia - magnetite iron ore project, potentially worth A$400 million ($345 million), scrapped.
DELAYED INVESTMENT DECISIONS
Queensland Coal Seam Gas Projects
BG Group - Said the new resource tax offers competitive economics for its planned Queensland Curtis LNG project and would recommend the A$10-A$15 billion development to the board for approval later this year.
Santos - Targetting to approve a 3.4 mtpa LNG project with Malaysia's Petronas [PETR.UL]. The project was estimated in 2008 to cost A$7.7 billion.
Origin Energy - Made no mention of its planned A$35 billion Australia Pacific LNG project with ConocoPhillips, but said it was encouraged by the new tax. The project would produce up to 18 million tonnes of LNG per year.
Royal Dutch Shell and PetroChina - Curtis Island project with 16 million tonnes a year capacity. The venture is bidding A$3.45 billion for Australia's Arrow Energy for its coal seam gas. Shell said the new tax structure strikes a balance between private and public needs in the sector.
Source: Reuters
Please login to comment
]]>
When looking at the large African Mining countries, it is fair to say that Burkina Faso is still in somewhat of a fledgling state. With a history of political, military and economic turmoil, this West African nation has not always offered the optimal environment for foreign investors to develop mining and exploration assets.
However, after almost two decades of economic reform, trade liberalization and privatization, the country is now on the cusp of a mining boom, intentionally stoked by a series of mining friendly legislation and tax breaks, with the intention of bringing the poverty stricken state into an era of renewed prosperity. It is in this backdrop that a number of mining and exploration companies have decided to move and develop assets in Burkina Faso, looking to take advantage of the natural resources the country has to offer, and hoping to benefit from the surge in mining by ‘getting in early’.
Burkina Faso, also know just as Burkina, is a landlocked country located in West Africa, surrounded by six other nations including Ghana, Niger and Togo. Since seizing power in 1984, President Blaise Compaore has strived to take his nation away from its dependence on agriculture, form a developing economy and improve relations with the west, with hopes of bringing in foreign investment. In a large way this diversification came as a necessity, with prices from its primary export, cotton, falling significantly during the 1990’s, sparking a need to look elsewhere for potential growth areas and at the resources available to the country.
After a series of economic reforms and financial liberalization, it has now managed to get this process underway, and has consistently showed economic growth of around 6% for the last 15 years, also helped by increasing farm production. It has undergone a fairly widespread privatization programme, and has won the faith of foreign donors by adhering to strict policy rules set out by the International Monetary Fund (IMF) and the World Bank (WB). Most recently, it has implemented some major changes to the tax system and created a number of ‘mining friendly’ programmes with the specific aim of bringing in new mining and development companies taking advantage of its significant natural resources (namely gold and some uranium).
With this, it has begun in recent years to inaugurate its first industrial scale gold mining operations, and under pressure from local operators, plans to continue to change its policies towards the industry in coming years, with big changes expected in tax policies coming from Ouagadougou (the country’s capital). Between 2008 and 2009 for example, the number of exploration licenses awarded by the government rose by 11%, climbing from 537 to 597. The government has also stated its intention to target gold output worth $307mln per annum from 2015.
To achieve this, the government has announced their intention to set up a ‘mining development fund’ next year, with Groupement des Professionnels Miniers (GPMB) behind the move. Both the government and mining companies themselves are expected to contribute to the fund, although specific details have yet to be released. Further to this, they intend an inauguration of a higher education institute for mining engineers and other executives in order to keep up with the boom in the industry.
There are still some risks in the area however, that can not be overlooked by potential foreign investors. The country was recently ranked among the world’s worst places to do business form the World Bank, for example, suffering from prohibitive energy costs and relative remoteness. Having said that, it has been noted that the mining sector is outperforming other labour intensive industries so far in winning new investment. There are also some questions surrounding the political future, after several riots have broken out in the past year as well as a gun battle between police and army recruits.
Since President Compaore came to power in a coup d’état in the 1980’s, he has kept a tight grip on power, most recently ‘winning’ an 80% majority in the 2005 Presidential polls. With stability being a key factor to any foreign investment, the potential for political turmoil, if and when President Compaore no longer holds power, brings about many unknown factors for those companies looking to establish themselves for the long term.
All these developments and potential problems for the sector bring about the question; what companies have begun to take advantage of the new backdrop for mining and exploration and how have they fared so far? To date, prospects for those mining and exploration companies who have been operating in Burkina Faso have been fairly good, both financially and in the quality and levels of mineralization offered by their exploration properties and permits.
If we take two examples of small but strong mining and exploration firms working in the area:
Firstly, Goldrush Resources Ltd (TSX: GOD) hails its flagship Kindo Group project (consisting of two permits; Kongoussi 1 and Tikare) in the Ronguen Gold Zone, as a beacon of potential. In 2008 they announced an initial resource estimate for the Ronguen Deposit of 5.9 million tonnes at a quality of 1.31 grams per tonne, leading to a total inferred gold resource estimate of 249 thousand ounces. Assay results confirm gold mineralization in economic grades over the entire 1.5km section of rock sampling conducted in their initial exploration, which spanned east to west over a previous artisanal mining site.
As a second example, Cluff Gold (AIM: CLF, TSX: CFG) saw its frist gold pour in from its Kalsaka project in Burkina Faso in October 2008, with a planned annualized production of 60 thousand ounces and significant potential to build upon this. Resources at the project measure 12.1 million tonnes at grade 1.6 grams of gold per tonne, equating to an inferred 640 thousand ounces of gold, with an additional 3.3 million tonnes at grade 1.5 grams per tonne, inferring a further 160 thousand ounces of gold. In 2009 it undertook a reoptimisation process utilizing a gold price of $850/oz to account for the rapid gains in gold prices, and also suggests that there are further benefits as the ore bodies are amenable to open pit and heap leach processing methods, reducing costs and allowing production at a faster pace.
These are just two examples of firms which are already fairly established in the country, and the potential gold resources are already clear. Although the country does have some potential risk for foreign investors, the mining friendly backdrop, ongoing legislation changes, the new mining fund and a series of tax breaks, all bring about a lot of potential for mining and exploration firms to develop in the country.
For some the risks may still outweigh the rewards, but for those companies that are in a stable and well placed position to take advantage of all the breaks Burkina Faso has to offer, there is no doubt a chance to ‘get in on the ground floor’ for what may become another of Africa’s large mining nations.
Author: Karl Loomes
This article was originally published on the Proactive Investors website.
]]>
May 20, 2010 by MiningNe.ws team
When looking at the large African Mining countries, it is fair to say that Burkina Faso is still in somewhat of a fledgling state. With a history of political, military and economic turmoil, this West African nation has not always offered the optimal environment for foreign investors to develop mining and exploration assets.
However, after almost two decades of economic reform, trade liberalization and privatization, the country is now on the cusp of a mining boom, intentionally stoked by a series of mining friendly legislation and tax breaks, with the intention of bringing the poverty stricken state into an era of renewed prosperity. It is in this backdrop that a number of mining and exploration companies have decided to move and develop assets in Burkina Faso, looking to take advantage of the natural resources the country has to offer, and hoping to benefit from the surge in mining by ‘getting in early’.
Burkina Faso, also know just as Burkina, is a landlocked country located in West Africa, surrounded by six other nations including Ghana, Niger and Togo. Since seizing power in 1984, President Blaise Compaore has strived to take his nation away from its dependence on agriculture, form a developing economy and improve relations with the west, with hopes of bringing in foreign investment. In a large way this diversification came as a necessity, with prices from its primary export, cotton, falling significantly during the 1990’s, sparking a need to look elsewhere for potential growth areas and at the resources available to the country.
After a series of economic reforms and financial liberalization, it has now managed to get this process underway, and has consistently showed economic growth of around 6% for the last 15 years, also helped by increasing farm production. It has undergone a fairly widespread privatization programme, and has won the faith of foreign donors by adhering to strict policy rules set out by the International Monetary Fund (IMF) and the World Bank (WB). Most recently, it has implemented some major changes to the tax system and created a number of ‘mining friendly’ programmes with the specific aim of bringing in new mining and development companies taking advantage of its significant natural resources (namely gold and some uranium).
With this, it has begun in recent years to inaugurate its first industrial scale gold mining operations, and under pressure from local operators, plans to continue to change its policies towards the industry in coming years, with big changes expected in tax policies coming from Ouagadougou (the country’s capital). Between 2008 and 2009 for example, the number of exploration licenses awarded by the government rose by 11%, climbing from 537 to 597. The government has also stated its intention to target gold output worth $307mln per annum from 2015.
To achieve this, the government has announced their intention to set up a ‘mining development fund’ next year, with Groupement des Professionnels Miniers (GPMB) behind the move. Both the government and mining companies themselves are expected to contribute to the fund, although specific details have yet to be released. Further to this, they intend an inauguration of a higher education institute for mining engineers and other executives in order to keep up with the boom in the industry.
There are still some risks in the area however, that can not be overlooked by potential foreign investors. The country was recently ranked among the world’s worst places to do business form the World Bank, for example, suffering from prohibitive energy costs and relative remoteness. Having said that, it has been noted that the mining sector is outperforming other labour intensive industries so far in winning new investment. There are also some questions surrounding the political future, after several riots have broken out in the past year as well as a gun battle between police and army recruits.
Since President Compaore came to power in a coup d’état in the 1980’s, he has kept a tight grip on power, most recently ‘winning’ an 80% majority in the 2005 Presidential polls. With stability being a key factor to any foreign investment, the potential for political turmoil, if and when President Compaore no longer holds power, brings about many unknown factors for those companies looking to establish themselves for the long term.
All these developments and potential problems for the sector bring about the question; what companies have begun to take advantage of the new backdrop for mining and exploration and how have they fared so far? To date, prospects for those mining and exploration companies who have been operating in Burkina Faso have been fairly good, both financially and in the quality and levels of mineralization offered by their exploration properties and permits.
If we take two examples of small but strong mining and exploration firms working in the area:
Firstly, Goldrush Resources Ltd (TSX: GOD) hails its flagship Kindo Group project (consisting of two permits; Kongoussi 1 and Tikare) in the Ronguen Gold Zone, as a beacon of potential. In 2008 they announced an initial resource estimate for the Ronguen Deposit of 5.9 million tonnes at a quality of 1.31 grams per tonne, leading to a total inferred gold resource estimate of 249 thousand ounces. Assay results confirm gold mineralization in economic grades over the entire 1.5km section of rock sampling conducted in their initial exploration, which spanned east to west over a previous artisanal mining site.
As a second example, Cluff Gold (AIM: CLF, TSX: CFG) saw its frist gold pour in from its Kalsaka project in Burkina Faso in October 2008, with a planned annualized production of 60 thousand ounces and significant potential to build upon this. Resources at the project measure 12.1 million tonnes at grade 1.6 grams of gold per tonne, equating to an inferred 640 thousand ounces of gold, with an additional 3.3 million tonnes at grade 1.5 grams per tonne, inferring a further 160 thousand ounces of gold. In 2009 it undertook a reoptimisation process utilizing a gold price of $850/oz to account for the rapid gains in gold prices, and also suggests that there are further benefits as the ore bodies are amenable to open pit and heap leach processing methods, reducing costs and allowing production at a faster pace.
These are just two examples of firms which are already fairly established in the country, and the potential gold resources are already clear. Although the country does have some potential risk for foreign investors, the mining friendly backdrop, ongoing legislation changes, the new mining fund and a series of tax breaks, all bring about a lot of potential for mining and exploration firms to develop in the country.
For some the risks may still outweigh the rewards, but for those companies that are in a stable and well placed position to take advantage of all the breaks Burkina Faso has to offer, there is no doubt a chance to ‘get in on the ground floor’ for what may become another of Africa’s large mining nations.
Author: Karl Loomes
This article was originally published on the Proactive Investors website.
Please login to comment
]]>
When looking at the large African Mining countries, it is fair to say that Burkina Faso is still in somewhat of a fledgling state. With a history of political, military and economic turmoil, this West African nation has not always offered the optimal environment for foreign investors to develop mining and exploration assets.
However, after almost two decades of economic reform, trade liberalization and privatization, the country is now on the cusp of a mining boom, intentionally stoked by a series of mining friendly legislation and tax breaks, with the intention of bringing the poverty stricken state into an era of renewed prosperity. It is in this backdrop that a number of mining and exploration companies have decided to move and develop assets in Burkina Faso, looking to take advantage of the natural resources the country has to offer, and hoping to benefit from the surge in mining by ‘getting in early’.
Burkina Faso, also know just as Burkina, is a landlocked country located in West Africa, surrounded by six other nations including Ghana, Niger and Togo. Since seizing power in 1984, President Blaise Compaore has strived to take his nation away from its dependence on agriculture, form a developing economy and improve relations with the west, with hopes of bringing in foreign investment. In a large way this diversification came as a necessity, with prices from its primary export, cotton, falling significantly during the 1990’s, sparking a need to look elsewhere for potential growth areas and at the resources available to the country.
After a series of economic reforms and financial liberalization, it has now managed to get this process underway, and has consistently showed economic growth of around 6% for the last 15 years, also helped by increasing farm production. It has undergone a fairly widespread privatization programme, and has won the faith of foreign donors by adhering to strict policy rules set out by the International Monetary Fund (IMF) and the World Bank (WB). Most recently, it has implemented some major changes to the tax system and created a number of ‘mining friendly’ programmes with the specific aim of bringing in new mining and development companies taking advantage of its significant natural resources (namely gold and some uranium).
With this, it has begun in recent years to inaugurate its first industrial scale gold mining operations, and under pressure from local operators, plans to continue to change its policies towards the industry in coming years, with big changes expected in tax policies coming from Ouagadougou (the country’s capital). Between 2008 and 2009 for example, the number of exploration licenses awarded by the government rose by 11%, climbing from 537 to 597. The government has also stated its intention to target gold output worth $307mln per annum from 2015.
To achieve this, the government has announced their intention to set up a ‘mining development fund’ next year, with Groupement des Professionnels Miniers (GPMB) behind the move. Both the government and mining companies themselves are expected to contribute to the fund, although specific details have yet to be released. Further to this, they intend an inauguration of a higher education institute for mining engineers and other executives in order to keep up with the boom in the industry.
There are still some risks in the area however, that can not be overlooked by potential foreign investors. The country was recently ranked among the world’s worst places to do business form the World Bank, for example, suffering from prohibitive energy costs and relative remoteness. Having said that, it has been noted that the mining sector is outperforming other labour intensive industries so far in winning new investment. There are also some questions surrounding the political future, after several riots have broken out in the past year as well as a gun battle between police and army recruits.
Since President Compaore came to power in a coup d’état in the 1980’s, he has kept a tight grip on power, most recently ‘winning’ an 80% majority in the 2005 Presidential polls. With stability being a key factor to any foreign investment, the potential for political turmoil, if and when President Compaore no longer holds power, brings about many unknown factors for those companies looking to establish themselves for the long term.
All these developments and potential problems for the sector bring about the question; what companies have begun to take advantage of the new backdrop for mining and exploration and how have they fared so far? To date, prospects for those mining and exploration companies who have been operating in Burkina Faso have been fairly good, both financially and in the quality and levels of mineralization offered by their exploration properties and permits.
If we take two examples of small but strong mining and exploration firms working in the area:
Firstly, Goldrush Resources Ltd (TSX: GOD) hails its flagship Kindo Group project (consisting of two permits; Kongoussi 1 and Tikare) in the Ronguen Gold Zone, as a beacon of potential. In 2008 they announced an initial resource estimate for the Ronguen Deposit of 5.9 million tonnes at a quality of 1.31 grams per tonne, leading to a total inferred gold resource estimate of 249 thousand ounces. Assay results confirm gold mineralization in economic grades over the entire 1.5km section of rock sampling conducted in their initial exploration, which spanned east to west over a previous artisanal mining site.
As a second example, Cluff Gold (AIM: CLF, TSX: CFG) saw its frist gold pour in from its Kalsaka project in Burkina Faso in October 2008, with a planned annualized production of 60 thousand ounces and significant potential to build upon this. Resources at the project measure 12.1 million tonnes at grade 1.6 grams of gold per tonne, equating to an inferred 640 thousand ounces of gold, with an additional 3.3 million tonnes at grade 1.5 grams per tonne, inferring a further 160 thousand ounces of gold. In 2009 it undertook a reoptimisation process utilizing a gold price of $850/oz to account for the rapid gains in gold prices, and also suggests that there are further benefits as the ore bodies are amenable to open pit and heap leach processing methods, reducing costs and allowing production at a faster pace.
These are just two examples of firms which are already fairly established in the country, and the potential gold resources are already clear. Although the country does have some potential risk for foreign investors, the mining friendly backdrop, ongoing legislation changes, the new mining fund and a series of tax breaks, all bring about a lot of potential for mining and exploration firms to develop in the country.
For some the risks may still outweigh the rewards, but for those companies that are in a stable and well placed position to take advantage of all the breaks Burkina Faso has to offer, there is no doubt a chance to ‘get in on the ground floor’ for what may become another of Africa’s large mining nations.
Author: Karl Loomes
This article was originally published on the Proactive Investors website.
]]>
May 20, 2010 by MiningNe.ws team
When looking at the large African Mining countries, it is fair to say that Burkina Faso is still in somewhat of a fledgling state. With a history of political, military and economic turmoil, this West African nation has not always offered the optimal environment for foreign investors to develop mining and exploration assets.
However, after almost two decades of economic reform, trade liberalization and privatization, the country is now on the cusp of a mining boom, intentionally stoked by a series of mining friendly legislation and tax breaks, with the intention of bringing the poverty stricken state into an era of renewed prosperity. It is in this backdrop that a number of mining and exploration companies have decided to move and develop assets in Burkina Faso, looking to take advantage of the natural resources the country has to offer, and hoping to benefit from the surge in mining by ‘getting in early’.
Burkina Faso, also know just as Burkina, is a landlocked country located in West Africa, surrounded by six other nations including Ghana, Niger and Togo. Since seizing power in 1984, President Blaise Compaore has strived to take his nation away from its dependence on agriculture, form a developing economy and improve relations with the west, with hopes of bringing in foreign investment. In a large way this diversification came as a necessity, with prices from its primary export, cotton, falling significantly during the 1990’s, sparking a need to look elsewhere for potential growth areas and at the resources available to the country.
After a series of economic reforms and financial liberalization, it has now managed to get this process underway, and has consistently showed economic growth of around 6% for the last 15 years, also helped by increasing farm production. It has undergone a fairly widespread privatization programme, and has won the faith of foreign donors by adhering to strict policy rules set out by the International Monetary Fund (IMF) and the World Bank (WB). Most recently, it has implemented some major changes to the tax system and created a number of ‘mining friendly’ programmes with the specific aim of bringing in new mining and development companies taking advantage of its significant natural resources (namely gold and some uranium).
With this, it has begun in recent years to inaugurate its first industrial scale gold mining operations, and under pressure from local operators, plans to continue to change its policies towards the industry in coming years, with big changes expected in tax policies coming from Ouagadougou (the country’s capital). Between 2008 and 2009 for example, the number of exploration licenses awarded by the government rose by 11%, climbing from 537 to 597. The government has also stated its intention to target gold output worth $307mln per annum from 2015.
To achieve this, the government has announced their intention to set up a ‘mining development fund’ next year, with Groupement des Professionnels Miniers (GPMB) behind the move. Both the government and mining companies themselves are expected to contribute to the fund, although specific details have yet to be released. Further to this, they intend an inauguration of a higher education institute for mining engineers and other executives in order to keep up with the boom in the industry.
There are still some risks in the area however, that can not be overlooked by potential foreign investors. The country was recently ranked among the world’s worst places to do business form the World Bank, for example, suffering from prohibitive energy costs and relative remoteness. Having said that, it has been noted that the mining sector is outperforming other labour intensive industries so far in winning new investment. There are also some questions surrounding the political future, after several riots have broken out in the past year as well as a gun battle between police and army recruits.
Since President Compaore came to power in a coup d’état in the 1980’s, he has kept a tight grip on power, most recently ‘winning’ an 80% majority in the 2005 Presidential polls. With stability being a key factor to any foreign investment, the potential for political turmoil, if and when President Compaore no longer holds power, brings about many unknown factors for those companies looking to establish themselves for the long term.
All these developments and potential problems for the sector bring about the question; what companies have begun to take advantage of the new backdrop for mining and exploration and how have they fared so far? To date, prospects for those mining and exploration companies who have been operating in Burkina Faso have been fairly good, both financially and in the quality and levels of mineralization offered by their exploration properties and permits.
If we take two examples of small but strong mining and exploration firms working in the area:
Firstly, Goldrush Resources Ltd (TSX: GOD) hails its flagship Kindo Group project (consisting of two permits; Kongoussi 1 and Tikare) in the Ronguen Gold Zone, as a beacon of potential. In 2008 they announced an initial resource estimate for the Ronguen Deposit of 5.9 million tonnes at a quality of 1.31 grams per tonne, leading to a total inferred gold resource estimate of 249 thousand ounces. Assay results confirm gold mineralization in economic grades over the entire 1.5km section of rock sampling conducted in their initial exploration, which spanned east to west over a previous artisanal mining site.
As a second example, Cluff Gold (AIM: CLF, TSX: CFG) saw its frist gold pour in from its Kalsaka project in Burkina Faso in October 2008, with a planned annualized production of 60 thousand ounces and significant potential to build upon this. Resources at the project measure 12.1 million tonnes at grade 1.6 grams of gold per tonne, equating to an inferred 640 thousand ounces of gold, with an additional 3.3 million tonnes at grade 1.5 grams per tonne, inferring a further 160 thousand ounces of gold. In 2009 it undertook a reoptimisation process utilizing a gold price of $850/oz to account for the rapid gains in gold prices, and also suggests that there are further benefits as the ore bodies are amenable to open pit and heap leach processing methods, reducing costs and allowing production at a faster pace.
These are just two examples of firms which are already fairly established in the country, and the potential gold resources are already clear. Although the country does have some potential risk for foreign investors, the mining friendly backdrop, ongoing legislation changes, the new mining fund and a series of tax breaks, all bring about a lot of potential for mining and exploration firms to develop in the country.
For some the risks may still outweigh the rewards, but for those companies that are in a stable and well placed position to take advantage of all the breaks Burkina Faso has to offer, there is no doubt a chance to ‘get in on the ground floor’ for what may become another of Africa’s large mining nations.
Author: Karl Loomes
This article was originally published on the Proactive Investors website.
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The copper mining industry in Chile has once again felt the impact of prolonged strike action as one of the country’s top mines has been forced to halt operations.
Talks to end a five-day subcontractor protest that shut Chile's Collahuasi copper mine, broke down on Tuesday, raising the specter of violence at one of the world's top deposits and contagion in other mines. Managers at Collahuasi walked away from talks with subcontractors blocking access to the mine that produced 535,000 tonnes of copper last year or 3.3 percent of the world's mined copper.
Over the years, Chile has experienced a number of significant strikes that slowed production and often impacted on world copper prices. The following list is a chronology of the major mining strikes in Chile over nearly two decades:
August 1991 - More than 9,500 miners at state-run Codelco's El Teniente copper mine staged a strike for nearly a month, halting production and costing the company $450,000 a day. That same year workers at Chuquicamata, at that time the world's largest copper mine, downed tools for two weeks.
February 1995 - State-owned Ventanas copper refinery's 1,200 workers walked off the job over a wage dispute that forced the government to buy copper cathodes in the spot market to ensure deliveries.
May 1996 - Miners at Codelco's giant Chuquicamata open pit ended an 10-day strike on May 12.
April 2003 - Employees at the Candelaria copper mine agreed to end a 16-day strike after accepting the company's offer on wages and benefits.
December 2003 - An 11-day strike at Codelco's Andina copper mine over wage and production-related bonuses pushed world copper prices higher.
August/September 2006 - The world's largest copper mine, Escondida, headed toward full production after the end of a prolonged strike by its 2,052 workers that forced it to declare force majeure. The 25-day strike hampered production and lifted world copper prices.
June/July 2007 - Codelco signed a deal to provide 14,000 subcontracted workers with better bonuses and benefits after a sometimes-violent strike that hit the company's El Teniente, Salvador and Andina mines. Contract workers threatened to spread protests to private companies, but the action did not materialize.
July 2007 - Union workers at Collahuasi went on strike to demand higher wages, triggering spike in the price of copper on international markets.
October/November 2009 - Union workers at BHP Billion's Spence copper mine lifted a 42-day strike that generated output losses of 500 tonnes of copper per day. The mine expects to return to normal output levels in January. Dec. 10, 2009 - Union workers blocked access to Chuquicamata copper mine complex for one day over wage disagreements, halting output and costing state miner Codelco 1,820 tonnes of copper production.
Jan. 4 2010 - Union workers staged a two-day strike over pay at Chuquicamata, the world's second biggest copper mine complex, halting output. Codelco said losses were expected to be recovered in the first half of the year.
May 7, 2010- Hundreds of subcontractor blocked access road to Chile's huge Collahuasi copper mine, halting output at one of the world's top deposits.
Source: Reuters]]>
May 12, 2010 by MiningNe.ws team
The copper mining industry in Chile has once again felt the impact of prolonged strike action as one of the country’s top mines has been forced to halt operations.
Talks to end a five-day subcontractor protest that shut Chile's Collahuasi copper mine, broke down on Tuesday, raising the specter of violence at one of the world's top deposits and contagion in other mines. Managers at Collahuasi walked away from talks with subcontractors blocking access to the mine that produced 535,000 tonnes of copper last year or 3.3 percent of the world's mined copper.
Over the years, Chile has experienced a number of significant strikes that slowed production and often impacted on world copper prices. The following list is a chronology of the major mining strikes in Chile over nearly two decades:
August 1991 - More than 9,500 miners at state-run Codelco's El Teniente copper mine staged a strike for nearly a month, halting production and costing the company $450,000 a day. That same year workers at Chuquicamata, at that time the world's largest copper mine, downed tools for two weeks.
February 1995 - State-owned Ventanas copper refinery's 1,200 workers walked off the job over a wage dispute that forced the government to buy copper cathodes in the spot market to ensure deliveries.
May 1996 - Miners at Codelco's giant Chuquicamata open pit ended an 10-day strike on May 12.
April 2003 - Employees at the Candelaria copper mine agreed to end a 16-day strike after accepting the company's offer on wages and benefits.
December 2003 - An 11-day strike at Codelco's Andina copper mine over wage and production-related bonuses pushed world copper prices higher.
August/September 2006 - The world's largest copper mine, Escondida, headed toward full production after the end of a prolonged strike by its 2,052 workers that forced it to declare force majeure. The 25-day strike hampered production and lifted world copper prices.
June/July 2007 - Codelco signed a deal to provide 14,000 subcontracted workers with better bonuses and benefits after a sometimes-violent strike that hit the company's El Teniente, Salvador and Andina mines. Contract workers threatened to spread protests to private companies, but the action did not materialize.
July 2007 - Union workers at Collahuasi went on strike to demand higher wages, triggering spike in the price of copper on international markets.
October/November 2009 - Union workers at BHP Billion's Spence copper mine lifted a 42-day strike that generated output losses of 500 tonnes of copper per day. The mine expects to return to normal output levels in January. Dec. 10, 2009 - Union workers blocked access to Chuquicamata copper mine complex for one day over wage disagreements, halting output and costing state miner Codelco 1,820 tonnes of copper production.
Jan. 4 2010 - Union workers staged a two-day strike over pay at Chuquicamata, the world's second biggest copper mine complex, halting output. Codelco said losses were expected to be recovered in the first half of the year.
May 7, 2010- Hundreds of subcontractor blocked access road to Chile's huge Collahuasi copper mine, halting output at one of the world's top deposits.
Source: Reuters
Please login to comment
]]>
The copper mining industry in Chile has once again felt the impact of prolonged strike action as one of the country’s top mines has been forced to halt operations.
Talks to end a five-day subcontractor protest that shut Chile's Collahuasi copper mine, broke down on Tuesday, raising the specter of violence at one of the world's top deposits and contagion in other mines. Managers at Collahuasi walked away from talks with subcontractors blocking access to the mine that produced 535,000 tonnes of copper last year or 3.3 percent of the world's mined copper.
Over the years, Chile has experienced a number of significant strikes that slowed production and often impacted on world copper prices. The following list is a chronology of the major mining strikes in Chile over nearly two decades:
August 1991 - More than 9,500 miners at state-run Codelco's El Teniente copper mine staged a strike for nearly a month, halting production and costing the company $450,000 a day. That same year workers at Chuquicamata, at that time the world's largest copper mine, downed tools for two weeks.
February 1995 - State-owned Ventanas copper refinery's 1,200 workers walked off the job over a wage dispute that forced the government to buy copper cathodes in the spot market to ensure deliveries.
May 1996 - Miners at Codelco's giant Chuquicamata open pit ended an 10-day strike on May 12.
April 2003 - Employees at the Candelaria copper mine agreed to end a 16-day strike after accepting the company's offer on wages and benefits.
December 2003 - An 11-day strike at Codelco's Andina copper mine over wage and production-related bonuses pushed world copper prices higher.
August/September 2006 - The world's largest copper mine, Escondida, headed toward full production after the end of a prolonged strike by its 2,052 workers that forced it to declare force majeure. The 25-day strike hampered production and lifted world copper prices.
June/July 2007 - Codelco signed a deal to provide 14,000 subcontracted workers with better bonuses and benefits after a sometimes-violent strike that hit the company's El Teniente, Salvador and Andina mines. Contract workers threatened to spread protests to private companies, but the action did not materialize.
July 2007 - Union workers at Collahuasi went on strike to demand higher wages, triggering spike in the price of copper on international markets.
October/November 2009 - Union workers at BHP Billion's Spence copper mine lifted a 42-day strike that generated output losses of 500 tonnes of copper per day. The mine expects to return to normal output levels in January. Dec. 10, 2009 - Union workers blocked access to Chuquicamata copper mine complex for one day over wage disagreements, halting output and costing state miner Codelco 1,820 tonnes of copper production.
Jan. 4 2010 - Union workers staged a two-day strike over pay at Chuquicamata, the world's second biggest copper mine complex, halting output. Codelco said losses were expected to be recovered in the first half of the year.
May 7, 2010- Hundreds of subcontractor blocked access road to Chile's huge Collahuasi copper mine, halting output at one of the world's top deposits.
Source: Reuters]]>
May 12, 2010 by MiningNe.ws team
The copper mining industry in Chile has once again felt the impact of prolonged strike action as one of the country’s top mines has been forced to halt operations.
Talks to end a five-day subcontractor protest that shut Chile's Collahuasi copper mine, broke down on Tuesday, raising the specter of violence at one of the world's top deposits and contagion in other mines. Managers at Collahuasi walked away from talks with subcontractors blocking access to the mine that produced 535,000 tonnes of copper last year or 3.3 percent of the world's mined copper.
Over the years, Chile has experienced a number of significant strikes that slowed production and often impacted on world copper prices. The following list is a chronology of the major mining strikes in Chile over nearly two decades:
August 1991 - More than 9,500 miners at state-run Codelco's El Teniente copper mine staged a strike for nearly a month, halting production and costing the company $450,000 a day. That same year workers at Chuquicamata, at that time the world's largest copper mine, downed tools for two weeks.
February 1995 - State-owned Ventanas copper refinery's 1,200 workers walked off the job over a wage dispute that forced the government to buy copper cathodes in the spot market to ensure deliveries.
May 1996 - Miners at Codelco's giant Chuquicamata open pit ended an 10-day strike on May 12.
April 2003 - Employees at the Candelaria copper mine agreed to end a 16-day strike after accepting the company's offer on wages and benefits.
December 2003 - An 11-day strike at Codelco's Andina copper mine over wage and production-related bonuses pushed world copper prices higher.
August/September 2006 - The world's largest copper mine, Escondida, headed toward full production after the end of a prolonged strike by its 2,052 workers that forced it to declare force majeure. The 25-day strike hampered production and lifted world copper prices.
June/July 2007 - Codelco signed a deal to provide 14,000 subcontracted workers with better bonuses and benefits after a sometimes-violent strike that hit the company's El Teniente, Salvador and Andina mines. Contract workers threatened to spread protests to private companies, but the action did not materialize.
July 2007 - Union workers at Collahuasi went on strike to demand higher wages, triggering spike in the price of copper on international markets.
October/November 2009 - Union workers at BHP Billion's Spence copper mine lifted a 42-day strike that generated output losses of 500 tonnes of copper per day. The mine expects to return to normal output levels in January. Dec. 10, 2009 - Union workers blocked access to Chuquicamata copper mine complex for one day over wage disagreements, halting output and costing state miner Codelco 1,820 tonnes of copper production.
Jan. 4 2010 - Union workers staged a two-day strike over pay at Chuquicamata, the world's second biggest copper mine complex, halting output. Codelco said losses were expected to be recovered in the first half of the year.
May 7, 2010- Hundreds of subcontractor blocked access road to Chile's huge Collahuasi copper mine, halting output at one of the world's top deposits.
Source: Reuters
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]]>
Resource…Super…Profits…
Mention these words in the same sentence and you are sure to get a positive response from most stakeholders in the mining industry. However, should you add the dreaded word “tax” to the end of that sentence and the response is quite the opposite!
Resource Super Profits Tax. This is the daunting title that the Australian government has given to the proposed new 40% tax on mining projects that could take effect from July 2012. The unveiling of this new tax scheme sent shivers down the spines of investors and mining stocks were hit hard when the markets opened on Monday morning.
Shares of BHP Billiton were down 3.8%, Rio Tinto dropped 5.3%. and Fortescue Metals Group traded 4.6% lower.
Mining companies have reacted strongly to the announcement. They are up in arms and readying their legal teams for the immanent confrontation with Kevin Rudd’s Labor Party.
And of course we are sure to see to conflict on the political front as the Conservative opposition leader Tony Abbott has said his party strongly opposes the new mining tax. Did we expect anything less? They were hardly going to agree, shake hands and say “job well done”. But I suppose it just wouldn’t be politics if that was the case!
So why exactly would the government want to disturb the status quo?
According to reports, Rudd, who has made the new tax laws central to his party’s campaign for re-election, will use the funds to allow for a general decline in business tax and backup the federal retirement scheme.
These are two valid reasons, but the big question is how, if at all, will the mining industry benefit from such a substantial tax?
In response to these questions, Treasurer Wayne Swann mentioned a few of these points:
- Some of the money raised from the new tax would be directed back into considerable tax breaks for mining exploration.
- Miners stand to benefit from from a planned cut in corporate tax.
- The government will set up an infrastructure fund, with an initial payment of A$700 million from 2012-13, to help pay for roads, ports, railways and utilities for resource industries.
These three reasons seem to tip in the scale in favour of the new tax. However, once the hefty “impact on earnings”* is added on the opposing side, suddenly a big change is noticeable.
With both sides building their defences, this is surely going to be war of attrition as the government and opposing forces will do what they can to grind out a favourable result. One thing is certain, the Labor Party is really up against it and will have a hard time trying to implement their “Resource Super Profits Tax”.
* BHP Billiton CEO Marius Kloppers said the changes would increase the group’s effective tax rate on Australian earnings to 57 percent from the current rate of around 43 percent.
]]>
May 3, 2010 by MiningNe.ws team
Resource…Super…Profits…
Mention these words in the same sentence and you are sure to get a positive response from most stakeholders in the mining industry. However, should you add the dreaded word “tax” to the end of that sentence and the response is quite the opposite!
Resource Super Profits Tax. This is the daunting title that the Australian government has given to the proposed new 40% tax on mining projects that could take effect from July 2012. The unveiling of this new tax scheme sent shivers down the spines of investors and mining stocks were hit hard when the markets opened on Monday morning.
Shares of BHP Billiton were down 3.8%, Rio Tinto dropped 5.3%. and Fortescue Metals Group traded 4.6% lower.
Mining companies have reacted strongly to the announcement. They are up in arms and readying their legal teams for the immanent confrontation with Kevin Rudd’s Labor Party.
And of course we are sure to see to conflict on the political front as the Conservative opposition leader Tony Abbott has said his party strongly opposes the new mining tax. Did we expect anything less? They were hardly going to agree, shake hands and say “job well done”. But I suppose it just wouldn’t be politics if that was the case!
So why exactly would the government want to disturb the status quo?
According to reports, Rudd, who has made the new tax laws central to his party’s campaign for re-election, will use the funds to allow for a general decline in business tax and backup the federal retirement scheme.
These are two valid reasons, but the big question is how, if at all, will the mining industry benefit from such a substantial tax?
In response to these questions, Treasurer Wayne Swann mentioned a few of these points:
- Some of the money raised from the new tax would be directed back into considerable tax breaks for mining exploration.
- Miners stand to benefit from from a planned cut in corporate tax.
- The government will set up an infrastructure fund, with an initial payment of A$700 million from 2012-13, to help pay for roads, ports, railways and utilities for resource industries.
These three reasons seem to tip in the scale in favour of the new tax. However, once the hefty “impact on earnings”* is added on the opposing side, suddenly a big change is noticeable.
With both sides building their defences, this is surely going to be war of attrition as the government and opposing forces will do what they can to grind out a favourable result. One thing is certain, the Labor Party is really up against it and will have a hard time trying to implement their “Resource Super Profits Tax”.
* BHP Billiton CEO Marius Kloppers said the changes would increase the group’s effective tax rate on Australian earnings to 57 percent from the current rate of around 43 percent.
Tags:
australasia, australia, finance, markets, bhp billiton, rio tinto, xstrata, fortescue metals group, iron, gold, copper
Discuss
Votes 1
Please login to comment
]]>
There has been a strong reaction today as the mining industry begins to process the potential impact of the Resource Super Profits Tax.
On the financial front, BHP Billiton and Rio Tinto fell 4% and 3.1% respectively in early trading in London (There was no trading in London yesterday because of a public holiday).
The other major reaction came from Cape Lambert Resources as the company announced that it has cancelled all exploration activities in the Pilbara region. Cape Lambert says exploration activities at its Cape Lambert South iron ore project will stop as a result of the uncertainty created by the 40 per cent tax.
I’m sure there will be plenty more announcements relating to this topic before this week is over! We’ll keep you posted]]>
Resource…Super…Profits…
Mention these words in the same sentence and you are sure to get a positive response from most stakeholders in the mining industry. However, should you add the dreaded word “tax” to the end of that sentence and the response is quite the opposite!
Resource Super Profits Tax. This is the daunting title that the Australian government has given to the proposed new 40% tax on mining projects that could take effect from July 2012. The unveiling of this new tax scheme sent shivers down the spines of investors and mining stocks were hit hard when the markets opened on Monday morning.
Shares of BHP Billiton were down 3.8%, Rio Tinto dropped 5.3%. and Fortescue Metals Group traded 4.6% lower.
Mining companies have reacted strongly to the announcement. They are up in arms and readying their legal teams for the immanent confrontation with Kevin Rudd’s Labor Party.
And of course we are sure to see to conflict on the political front as the Conservative opposition leader Tony Abbott has said his party strongly opposes the new mining tax. Did we expect anything less? They were hardly going to agree, shake hands and say “job well done”. But I suppose it just wouldn’t be politics if that was the case!
So why exactly would the government want to disturb the status quo?
According to reports, Rudd, who has made the new tax laws central to his party’s campaign for re-election, will use the funds to allow for a general decline in business tax and backup the federal retirement scheme.
These are two valid reasons, but the big question is how, if at all, will the mining industry benefit from such a substantial tax?
In response to these questions, Treasurer Wayne Swann mentioned a few of these points:
- Some of the money raised from the new tax would be directed back into considerable tax breaks for mining exploration.
- Miners stand to benefit from from a planned cut in corporate tax.
- The government will set up an infrastructure fund, with an initial payment of A$700 million from 2012-13, to help pay for roads, ports, railways and utilities for resource industries.
These three reasons seem to tip in the scale in favour of the new tax. However, once the hefty “impact on earnings”* is added on the opposing side, suddenly a big change is noticeable.
With both sides building their defences, this is surely going to be war of attrition as the government and opposing forces will do what they can to grind out a favourable result. One thing is certain, the Labor Party is really up against it and will have a hard time trying to implement their “Resource Super Profits Tax”.
* BHP Billiton CEO Marius Kloppers said the changes would increase the group’s effective tax rate on Australian earnings to 57 percent from the current rate of around 43 percent.
]]>
May 3, 2010 by MiningNe.ws team
Resource…Super…Profits…
Mention these words in the same sentence and you are sure to get a positive response from most stakeholders in the mining industry. However, should you add the dreaded word “tax” to the end of that sentence and the response is quite the opposite!
Resource Super Profits Tax. This is the daunting title that the Australian government has given to the proposed new 40% tax on mining projects that could take effect from July 2012. The unveiling of this new tax scheme sent shivers down the spines of investors and mining stocks were hit hard when the markets opened on Monday morning.
Shares of BHP Billiton were down 3.8%, Rio Tinto dropped 5.3%. and Fortescue Metals Group traded 4.6% lower.
Mining companies have reacted strongly to the announcement. They are up in arms and readying their legal teams for the immanent confrontation with Kevin Rudd’s Labor Party.
And of course we are sure to see to conflict on the political front as the Conservative opposition leader Tony Abbott has said his party strongly opposes the new mining tax. Did we expect anything less? They were hardly going to agree, shake hands and say “job well done”. But I suppose it just wouldn’t be politics if that was the case!
So why exactly would the government want to disturb the status quo?
According to reports, Rudd, who has made the new tax laws central to his party’s campaign for re-election, will use the funds to allow for a general decline in business tax and backup the federal retirement scheme.
These are two valid reasons, but the big question is how, if at all, will the mining industry benefit from such a substantial tax?
In response to these questions, Treasurer Wayne Swann mentioned a few of these points:
- Some of the money raised from the new tax would be directed back into considerable tax breaks for mining exploration.
- Miners stand to benefit from from a planned cut in corporate tax.
- The government will set up an infrastructure fund, with an initial payment of A$700 million from 2012-13, to help pay for roads, ports, railways and utilities for resource industries.
These three reasons seem to tip in the scale in favour of the new tax. However, once the hefty “impact on earnings”* is added on the opposing side, suddenly a big change is noticeable.
With both sides building their defences, this is surely going to be war of attrition as the government and opposing forces will do what they can to grind out a favourable result. One thing is certain, the Labor Party is really up against it and will have a hard time trying to implement their “Resource Super Profits Tax”.
* BHP Billiton CEO Marius Kloppers said the changes would increase the group’s effective tax rate on Australian earnings to 57 percent from the current rate of around 43 percent.
Tags:
australasia, australia, finance, markets, bhp billiton, rio tinto, xstrata, fortescue metals group, iron, gold, copper
Discuss
Votes 1
Please login to comment
]]>
There has been a strong reaction today as the mining industry begins to process the potential impact of the Resource Super Profits Tax.
On the financial front, BHP Billiton and Rio Tinto fell 4% and 3.1% respectively in early trading in London (There was no trading in London yesterday because of a public holiday).
The other major reaction came from Cape Lambert Resources as the company announced that it has cancelled all exploration activities in the Pilbara region. Cape Lambert says exploration activities at its Cape Lambert South iron ore project will stop as a result of the uncertainty created by the 40 per cent tax.
I’m sure there will be plenty more announcements relating to this topic before this week is over! We’ll keep you posted]]>
I came across an interesting article on www.stockhouse.com about the "Golden Triangle" in Canada. I wasn't aware of this untapped gold deposit before I read this article, but if what the author says is true, then those companies that own land in this area will soon reap the rewards of some excellent foresight!
Another find simply "too large to ignore"
Mining investors are going to start hearing the words "Golden Triangle" soon.
They're going to start hearing them a lot.
I flew up to this remote corner of Canada – a section of northwestern British Columbia that's roughly the size of Connecticut – in the summer of 2007, to visit the largest gold deposit ever found in the country at that time.
The Golden Triangle isn't just home to the gold deposit I visited. It turns out, another deposit, located practically right next door, contains even more gold, according to the Vancouver Sun.
One of the deposits in the Golden Triangle is so rich, one geologist called it "the highest grade gold I've seen in my career… and I've been in the business since 1976." And its size grew with every hole the company drilled. Since its initial discovery, the resource has increased by almost 500%.
And Pierre Gratton, CEO of the Mining Association of British Columbia, calls yet another find simply "too large to ignore."
Altogether, this tiny area holds an estimated 15 world-class gold deposits ... all virtually untapped.
But the Canadian government is going to change all that.
You see, the Golden Triangle has been mostly impossible to mine for the past 150 years because of its remote location and lack of power infrastructure (I had to visit by helicopter). While many folks get excited about big gold discoveries, they often forget that roads and power lines are as important to a mine as ore grades.
Well, roads and power lines are on their way to the Golden Triangle.
The British Columbia provincial government – in conjunction with the federal government of Canada – has approved the construction of a 200-mile power line. The new high-voltage Northwest Transmission Line is scheduled to cut right through the heart of the Golden Triangle, and it's going to bring a mining boom along with it.
You see, British Columbia is great place to build a gold mine. It's mine-friendly – five mines have opened there in the last three years. Another 50 projects are in the engineering stage, and 100 more projects show encouraging exploration results.
Canadian politicians believe the new electrical line will spur the development of 11 new mines that, in turn, will generate $15 billion in private investment, create as many as 11,000 jobs, and produce $300 million in annual tax revenues. It will also send the shares of companies that own prospective stakes in these potential mines soaring.
Right now, a group of small mining companies control the majority of the land in the Golden Triangle. A few years ago, this unique group of companies began buying up all the land in the region, in anticipation of this development. These small companies knew that if a power grid were ever built in the Golden Triangle, the land there would be worth an absolute fortune.
Here's a short list of companies that stand to benefit:
| Mine |
Company
|
Market Value |
| Red Chris |
Imperial Metals |
$555 million |
| Galore Creek |
NovaGold |
$1.4 billion |
| Schaft Creek |
Copper Fox Metals |
$40 million |
| Turnagain |
Hard Creek Nickel |
$57 million |
Mount Klappan
|
Fortune Minerals |
$95 million |
Kutcho
|
Capstone Mining |
$591 million |
GJ/Kinaskan
|
NGEx |
$147 million |
Snowfields
|
Silver Standard |
$1.4 billion |
KSM
|
Seabridge Gold |
$823 million |
Bronson Slope
|
Skyline Gold |
$8.6 million |
| Storie |
Columbia Yukon |
$10.4 million |
I believe the new line will send some of these mining stocks up hundreds of percent.
You see, because of their remote location and the lack of infrastructure, the market discounts giant gold deposits in British Columbia's Golden Triangle by about 87% compared to the average resources in the gold industry. Despite the sizeable markets caps in some of the companies above, they could get much larger.
By buying shares in some of the companies above, you get enormous gold projects for less than $20 per ounce that will become mines in the next 10 years. Other investors are spending $150 an ounce to buy gold deposits that may never become mines and sit in far dicier political climates – places like Romania, for example. Well, the companies listed above own huge deposits in an extremely mining friendly – and safe – country.
As I mentioned, I had to take a helicopter to visit the Golden Triangle… it's a frontier kind of place. The largest "city" has just 12,000 people. Given its remoteness, the companies that control some of the most valuable and important parts of the Golden Triangle today have virtually zero analyst coverage. I love this sort of speculation.
If you're like me, and believe the price of gold is going to go much higher soon, then use this list as a jumping off point to find "Golden Triangle" plays. These companies are going to see a whole lot more investor interest in the next few years… and they're going to go much higher in value.
ABOUT THE AUTHOR
Matt Badiali, DailyWealth
DailyWealth is free daily investment newsletter focused on the best contrarian investment opportunities in the world. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments. http://www.dailywealth.com
]]>
April 7, 2010 by MiningNe.ws team
I came across an interesting article on www.stockhouse.com about the "Golden Triangle" in Canada. I wasn't aware of this untapped gold deposit before I read this article, but if what the author says is true, then those companies that own land in this area will soon reap the rewards of some excellent foresight!
Another find simply "too large to ignore"
Mining investors are going to start hearing the words "Golden Triangle" soon.
They're going to start hearing them a lot.
I flew up to this remote corner of Canada – a section of northwestern British Columbia that's roughly the size of Connecticut – in the summer of 2007, to visit the largest gold deposit ever found in the country at that time.
The Golden Triangle isn't just home to the gold deposit I visited. It turns out, another deposit, located practically right next door, contains even more gold, according to the Vancouver Sun.
One of the deposits in the Golden Triangle is so rich, one geologist called it "the highest grade gold I've seen in my career… and I've been in the business since 1976." And its size grew with every hole the company drilled. Since its initial discovery, the resource has increased by almost 500%.
And Pierre Gratton, CEO of the Mining Association of British Columbia, calls yet another find simply "too large to ignore."
Altogether, this tiny area holds an estimated 15 world-class gold deposits ... all virtually untapped.
But the Canadian government is going to change all that.
You see, the Golden Triangle has been mostly impossible to mine for the past 150 years because of its remote location and lack of power infrastructure (I had to visit by helicopter). While many folks get excited about big gold discoveries, they often forget that roads and power lines are as important to a mine as ore grades.
Well, roads and power lines are on their way to the Golden Triangle.
The British Columbia provincial government – in conjunction with the federal government of Canada – has approved the construction of a 200-mile power line. The new high-voltage Northwest Transmission Line is scheduled to cut right through the heart of the Golden Triangle, and it's going to bring a mining boom along with it.
You see, British Columbia is great place to build a gold mine. It's mine-friendly – five mines have opened there in the last three years. Another 50 projects are in the engineering stage, and 100 more projects show encouraging exploration results.
Canadian politicians believe the new electrical line will spur the development of 11 new mines that, in turn, will generate $15 billion in private investment, create as many as 11,000 jobs, and produce $300 million in annual tax revenues. It will also send the shares of companies that own prospective stakes in these potential mines soaring.
Right now, a group of small mining companies control the majority of the land in the Golden Triangle. A few years ago, this unique group of companies began buying up all the land in the region, in anticipation of this development. These small companies knew that if a power grid were ever built in the Golden Triangle, the land there would be worth an absolute fortune.
Here's a short list of companies that stand to benefit:
| Mine |
Company |
Market Value |
| Red Chris |
Imperial Metals |
$555 million |
| Galore Creek |
NovaGold |
$1.4 billion |
| Schaft Creek |
Copper Fox Metals |
$40 million |
| Turnagain |
Hard Creek Nickel |
$57 million |
| Mount Klappan |
Fortune Minerals |
$95 million |
| Kutcho |
Capstone Mining |
$591 million |
| GJ/Kinaskan |
NGEx |
$147 million |
| Snowfields |
Silver Standard |
$1.4 billion |
| KSM |
Seabridge Gold |
$823 million |
| Bronson Slope |
Skyline Gold |
$8.6 million |
| Storie |
Columbia Yukon |
$10.4 million |
I believe the new line will send some of these mining stocks up hundreds of percent.
You see, because of their remote location and the lack of infrastructure, the market discounts giant gold deposits in British Columbia's Golden Triangle by about 87% compared to the average resources in the gold industry. Despite the sizeable markets caps in some of the companies above, they could get much larger.
By buying shares in some of the companies above, you get enormous gold projects for less than $20 per ounce that will become mines in the next 10 years. Other investors are spending $150 an ounce to buy gold deposits that may never become mines and sit in far dicier political climates – places like Romania, for example. Well, the companies listed above own huge deposits in an extremely mining friendly – and safe – country.
As I mentioned, I had to take a helicopter to visit the Golden Triangle… it's a frontier kind of place. The largest "city" has just 12,000 people. Given its remoteness, the companies that control some of the most valuable and important parts of the Golden Triangle today have virtually zero analyst coverage. I love this sort of speculation.
If you're like me, and believe the price of gold is going to go much higher soon, then use this list as a jumping off point to find "Golden Triangle" plays. These companies are going to see a whole lot more investor interest in the next few years… and they're going to go much higher in value.
ABOUT THE AUTHOR
Matt Badiali, DailyWealth
DailyWealth is free daily investment newsletter focused on the best contrarian investment opportunities in the world. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments. http://www.dailywealth.com
Please login to comment
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I came across an interesting article on www.stockhouse.com about the "Golden Triangle" in Canada. I wasn't aware of this untapped gold deposit before I read this article, but if what the author says is true, then those companies that own land in this area will soon reap the rewards of some excellent foresight!
Another find simply "too large to ignore"
Mining investors are going to start hearing the words "Golden Triangle" soon.
They're going to start hearing them a lot.
I flew up to this remote corner of Canada – a section of northwestern British Columbia that's roughly the size of Connecticut – in the summer of 2007, to visit the largest gold deposit ever found in the country at that time.
The Golden Triangle isn't just home to the gold deposit I visited. It turns out, another deposit, located practically right next door, contains even more gold, according to the Vancouver Sun.
One of the deposits in the Golden Triangle is so rich, one geologist called it "the highest grade gold I've seen in my career… and I've been in the business since 1976." And its size grew with every hole the company drilled. Since its initial discovery, the resource has increased by almost 500%.
And Pierre Gratton, CEO of the Mining Association of British Columbia, calls yet another find simply "too large to ignore."
Altogether, this tiny area holds an estimated 15 world-class gold deposits ... all virtually untapped.
But the Canadian government is going to change all that.
You see, the Golden Triangle has been mostly impossible to mine for the past 150 years because of its remote location and lack of power infrastructure (I had to visit by helicopter). While many folks get excited about big gold discoveries, they often forget that roads and power lines are as important to a mine as ore grades.
Well, roads and power lines are on their way to the Golden Triangle.
The British Columbia provincial government – in conjunction with the federal government of Canada – has approved the construction of a 200-mile power line. The new high-voltage Northwest Transmission Line is scheduled to cut right through the heart of the Golden Triangle, and it's going to bring a mining boom along with it.
You see, British Columbia is great place to build a gold mine. It's mine-friendly – five mines have opened there in the last three years. Another 50 projects are in the engineering stage, and 100 more projects show encouraging exploration results.
Canadian politicians believe the new electrical line will spur the development of 11 new mines that, in turn, will generate $15 billion in private investment, create as many as 11,000 jobs, and produce $300 million in annual tax revenues. It will also send the shares of companies that own prospective stakes in these potential mines soaring.
Right now, a group of small mining companies control the majority of the land in the Golden Triangle. A few years ago, this unique group of companies began buying up all the land in the region, in anticipation of this development. These small companies knew that if a power grid were ever built in the Golden Triangle, the land there would be worth an absolute fortune.
Here's a short list of companies that stand to benefit:
| Mine |
Company
|
Market Value |
| Red Chris |
Imperial Metals |
$555 million |
| Galore Creek |
NovaGold |
$1.4 billion |
| Schaft Creek |
Copper Fox Metals |
$40 million |
| Turnagain |
Hard Creek Nickel |
$57 million |
Mount Klappan
|
Fortune Minerals |
$95 million |
Kutcho
|
Capstone Mining |
$591 million |
GJ/Kinaskan
|
NGEx |
$147 million |
Snowfields
|
Silver Standard |
$1.4 billion |
KSM
|
Seabridge Gold |
$823 million |
Bronson Slope
|
Skyline Gold |
$8.6 million |
| Storie |
Columbia Yukon |
$10.4 million |
I believe the new line will send some of these mining stocks up hundreds of percent.
You see, because of their remote location and the lack of infrastructure, the market discounts giant gold deposits in British Columbia's Golden Triangle by about 87% compared to the average resources in the gold industry. Despite the sizeable markets caps in some of the companies above, they could get much larger.
By buying shares in some of the companies above, you get enormous gold projects for less than $20 per ounce that will become mines in the next 10 years. Other investors are spending $150 an ounce to buy gold deposits that may never become mines and sit in far dicier political climates – places like Romania, for example. Well, the companies listed above own huge deposits in an extremely mining friendly – and safe – country.
As I mentioned, I had to take a helicopter to visit the Golden Triangle… it's a frontier kind of place. The largest "city" has just 12,000 people. Given its remoteness, the companies that control some of the most valuable and important parts of the Golden Triangle today have virtually zero analyst coverage. I love this sort of speculation.
If you're like me, and believe the price of gold is going to go much higher soon, then use this list as a jumping off point to find "Golden Triangle" plays. These companies are going to see a whole lot more investor interest in the next few years… and they're going to go much higher in value.
ABOUT THE AUTHOR
Matt Badiali, DailyWealth
DailyWealth is free daily investment newsletter focused on the best contrarian investment opportunities in the world. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments. http://www.dailywealth.com
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April 7, 2010 by MiningNe.ws team
I came across an interesting article on www.stockhouse.com about the "Golden Triangle" in Canada. I wasn't aware of this untapped gold deposit before I read this article, but if what the author says is true, then those companies that own land in this area will soon reap the rewards of some excellent foresight!
Another find simply "too large to ignore"
Mining investors are going to start hearing the words "Golden Triangle" soon.
They're going to start hearing them a lot.
I flew up to this remote corner of Canada – a section of northwestern British Columbia that's roughly the size of Connecticut – in the summer of 2007, to visit the largest gold deposit ever found in the country at that time.
The Golden Triangle isn't just home to the gold deposit I visited. It turns out, another deposit, located practically right next door, contains even more gold, according to the Vancouver Sun.
One of the deposits in the Golden Triangle is so rich, one geologist called it "the highest grade gold I've seen in my career… and I've been in the business since 1976." And its size grew with every hole the company drilled. Since its initial discovery, the resource has increased by almost 500%.
And Pierre Gratton, CEO of the Mining Association of British Columbia, calls yet another find simply "too large to ignore."
Altogether, this tiny area holds an estimated 15 world-class gold deposits ... all virtually untapped.
But the Canadian government is going to change all that.
You see, the Golden Triangle has been mostly impossible to mine for the past 150 years because of its remote location and lack of power infrastructure (I had to visit by helicopter). While many folks get excited about big gold discoveries, they often forget that roads and power lines are as important to a mine as ore grades.
Well, roads and power lines are on their way to the Golden Triangle.
The British Columbia provincial government – in conjunction with the federal government of Canada – has approved the construction of a 200-mile power line. The new high-voltage Northwest Transmission Line is scheduled to cut right through the heart of the Golden Triangle, and it's going to bring a mining boom along with it.
You see, British Columbia is great place to build a gold mine. It's mine-friendly – five mines have opened there in the last three years. Another 50 projects are in the engineering stage, and 100 more projects show encouraging exploration results.
Canadian politicians believe the new electrical line will spur the development of 11 new mines that, in turn, will generate $15 billion in private investment, create as many as 11,000 jobs, and produce $300 million in annual tax revenues. It will also send the shares of companies that own prospective stakes in these potential mines soaring.
Right now, a group of small mining companies control the majority of the land in the Golden Triangle. A few years ago, this unique group of companies began buying up all the land in the region, in anticipation of this development. These small companies knew that if a power grid were ever built in the Golden Triangle, the land there would be worth an absolute fortune.
Here's a short list of companies that stand to benefit:
| Mine |
Company |
Market Value |
| Red Chris |
Imperial Metals |
$555 million |
| Galore Creek |
NovaGold |
$1.4 billion |
| Schaft Creek |
Copper Fox Metals |
$40 million |
| Turnagain |
Hard Creek Nickel |
$57 million |
| Mount Klappan |
Fortune Minerals |
$95 million |
| Kutcho |
Capstone Mining |
$591 million |
| GJ/Kinaskan |
NGEx |
$147 million |
| Snowfields |
Silver Standard |
$1.4 billion |
| KSM |
Seabridge Gold |
$823 million |
| Bronson Slope |
Skyline Gold |
$8.6 million |
| Storie |
Columbia Yukon |
$10.4 million |
I believe the new line will send some of these mining stocks up hundreds of percent.
You see, because of their remote location and the lack of infrastructure, the market discounts giant gold deposits in British Columbia's Golden Triangle by about 87% compared to the average resources in the gold industry. Despite the sizeable markets caps in some of the companies above, they could get much larger.
By buying shares in some of the companies above, you get enormous gold projects for less than $20 per ounce that will become mines in the next 10 years. Other investors are spending $150 an ounce to buy gold deposits that may never become mines and sit in far dicier political climates – places like Romania, for example. Well, the companies listed above own huge deposits in an extremely mining friendly – and safe – country.
As I mentioned, I had to take a helicopter to visit the Golden Triangle… it's a frontier kind of place. The largest "city" has just 12,000 people. Given its remoteness, the companies that control some of the most valuable and important parts of the Golden Triangle today have virtually zero analyst coverage. I love this sort of speculation.
If you're like me, and believe the price of gold is going to go much higher soon, then use this list as a jumping off point to find "Golden Triangle" plays. These companies are going to see a whole lot more investor interest in the next few years… and they're going to go much higher in value.
ABOUT THE AUTHOR
Matt Badiali, DailyWealth
DailyWealth is free daily investment newsletter focused on the best contrarian investment opportunities in the world. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments. http://www.dailywealth.com
Please login to comment
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