Friday, December 08, 2023

Detoxifying Artisanal Gold Mining

by Michigan State University
A miner's hand holds a pebble-sized bit of mercury-covered gold ore over a bowl of water. The picture was taken at a small-scale gold mine in Senegal. 
Credit: Jacqueline Gerson

Jacqueline "Jackie" Gerson knows very well how "artisanal gold mining" sounds to people who haven't heard the phrase before

"It sounds quaint, right?" asked the assistant professor of Earth and environmental sciences in Michigan State University's College of Natural Science.

But that innocuous name belies the dangers of a practice that exposes miners and their communities to a poisonous chemical that's been banned by an international treaty. So, when Gerson thinks of artisanal gold mining, her mental image is anything but quaint.

"I think of it like the Wild West days in the United States," said Gerson. "During the gold rush here, people were using mercury to extract gold. That's exactly what's happening now in these artisanal and small-scale gold mines."

Artisanal and small-scale gold mining, abbreviated ASGM, supplies about 20% of the gold bought and sold around the world, said Gerson. Gerson is also a faculty member with the W.K. Kellogg Biological Station and the Ecology, Evolution and Behavior, or EEB, program at MSU.

At the same time, ASGM accounts for 40% of the global emissions of mercury—a neurotoxic metal—into the atmosphere. That's more than any other source, including the burning of fossil fuels, which are naturally laced with trace amounts of mercury.

What becomes of that atmospheric mercury largely remains a mystery. To better understand the fate of this heavy, unhealthy metal, Gerson, her lab and her colleagues have been awarded a grant.

In the meantime, she's also part of a team that's been working with miners and their communities to reduce mercury emissions. And they have piloted an approach that can do just that, which they have now reported in the journal Cleaner Production Letters.

Assistant Professor Jacqueline "Jackie" Gerson of Michigan State University is working with artisanal and small-scale gold mining communities in Senegal and other countries to better understand and reduce the mining's health risks. 
Credit: Jacqueline Gerson


What is artisanal mining?


In the context of mining, "artisanal" is all about the word's denotation, rather than its charming connotations that we tend to associate with things like cheese, chocolate and coffee.

"Artisanal means the miners are using very rudimentary approaches, without modern technology," Gerson said. "And they're small-scale, meaning small groups of people, but in a given community, there can be hundreds or thousands of people mining."

Miners dig up ore and sediment containing gold, then add mercury to help extract the precious metal. They then burn the mercury off—often in huts where miners and their families live—leaving the gold behind.

The process is cheap, easy and accessible. That's why miners used it over a century ago during the gold rush in the U.S. What's different today is that mercury is outlawed.

"Artisanal mines are almost always illegal," Gerson said. "But miners can buy mercury on the black market."

In 2013, more than 140 countries signed a United Nations treaty called the Minamata Convention on Mercury, which went into effect in 2017 to curb mercury emissions, including those from ASGM.

The treaty is named after the Japanese city of Minamata, where, in the mid-20th century, thousands of residents were poisoned by mercury from industrial pollution. The exposure led to many adverse health outcomes including death, paralysis and neurological disease.

Today, mercury poisoning typically isn't something people in the U.S. or other developed and densely populated countries worry about (a notable exception is people who are pregnant and must avoid certain types of seafood that can have elevated levels of mercury, which disrupts fetal development).

In developing nations and remote areas, however, ASGM operations can thrive because of lax or nonexistent regulatory enforcement. Artisanal gold mines are operating in more than 70 countries worldwide, mostly in the southern hemisphere.

Artisanal and small-scale miners sell their gold to dealers who introduce it into the global supply, where it's indistinguishable from gold mined in accordance with the Minamata Convention. That means, if you own gold jewelry, some of that metal probably came from artisanal gold mines.

"They are a major source of gold," Gerson said. "It's a global issue, and we're all part of it, whether we want to admit it or not."

Research from Michigan State University shows that education provided by trusted sources in a community can be a potent intervention strategy for reducing mercury usage in and emissions from artisanal and small-scale gold mining. 
Credit: Falaye Danfakha
Miners pose for a photo near a dug-out mining pit under a blue tarp held up by a frame made from logs and branches. Credit: Jacqueline Gerson
Research from Michigan State University shows that education provided by trusted sources in a community can be a potent intervention strategy for reducing mercury usage in and emissions from artisanal and small-scale gold mining. 
Credit: Falaye Danfakha
Miners pose for a photo near a dug-out mining pit under a blue tarp held up by a frame made from logs and branches. 
Credit: Jacqueline Gerson


Making mining safer


Although most artisanal miners understand that the mercury they work with is dangerous, they accept that risk to support themselves and their families.

Researchers have been working to try and help these miners keep their livelihoods while reducing its associated health risks. Most new approaches, however, focus on replacing mercury with techniques or technologies that are more expensive or harder to use than the toxic metal.

"Getting rid of the mercury is the most ideal solution," Gerson said. "But studies show these approaches just aren't being picked up."

So, Gerson decided to try a different approach working with collaborators at Colorado State University, the Peace Corps and Duke University. Gerson started this work while she was a doctoral student at Duke, and the project was supported by the Duke University Global Health Institute and World Connect.

The researchers' approach started with talking with miners in Senegal to identify emission-reducing opportunities that would stick. Using what they learned, the team developed an approach based on two pillars.

The first was an educational program, delivered by trusted, local community members about the dangers of mercury, the symptoms of exposure and ways miners could protect themselves.

The instructors also shared information about the second pillar, devices known as retorts.

Retorts are metal enclosures that allow miners to burn the mercury off from gold without releasing vapors into the atmosphere. Instead, the vapors are collected and exhausted into a bucket of water, where the mercury condenses and can be retrieved.

Local metal workers built the retorts for the study using readily available materials and a design provided by the research team that also incorporated tweaks from the miners.

The team worked with nine mining communities to measure the effects of these interventions. Three of the communities received both the education and retorts, three received education only and three provided a control group—that is, they received neither the education nor the retorts.

This enabled the team to conclusively demonstrate that providing education and retorts worked. Miners were more aware of the dangers of mercury and how they could limit their exposure. They used mercury less and, when they did, they used retorts more.

And that wasn't all.

"These effects permeated into the control villages," Gerson said. "There was this sort of social spillover where people were sharing the education and the retorts."

Based on the project's success in Senegal, Gerson believes the approach could be extended to mining operations in other countries to further curb emissions. But she stressed that it has to be the entire approach, not just the solutions they found in Senegal.

"Miners have to be involved from the beginning to identify specific solutions that will work in their unique physical and social environments," Gerson said.

Artisanal mining in Senegal is different from artisanal mining in Peru, for example. So the specific techniques that worked in Senegal may not work in Peru, but the approach of working with miners and their neighbors to find trustworthy solutions will translate.

"That's a theme in my work," Gerson said. "We have to collaborate with the people who are living and working in these places if we're going to be successful."

Artisanal gold miners work with a retort constructed out of metal. Credit: Falaye Danfakha
Miners pose for a photo while one pours an earth-toned liquid through a strainer and down a sluice to separate out the fine-scale gold-laden sediment from larger soil particles. By collaborating with mining communities in Senegal, Michigan State University researchers were part of a team that found practical solutions to reduce mercury emissions from artisanal and small-scale gold mining. Credit: Jacqueline Gerson
An artisanal gold miner burns mercury off a gold-mercury amalgam using a blow torch on the floor of a hut. Credit: Jacqueline Gerson


'That's what we hope, but we don't know'

That theme is also evident in Gerson's grant, which is a collaboration led by Gerson, Associate Professor Heidi Hausermann at Colorado State University and Professor Richard Amankwah, who is the vice chancellor at the University of Mines and Technology in Ghana.

Hausermann, who was also an author on the new Cleaner Production Letters report, has been working with Ghanaian collaborators on ASGM research for a dozen years. Amankwah is a mining engineering and ASGM expert who also has served as a consultant for the World Bank, the United Nations and the World Health Organization.

Together, they're trying to answer large, looming questions about where mercury emissions from ASGM go and how and whether these mercury emissions can enter the food web through crops.

This knowledge could help create policies and practices to better protect miners, their neighbors and nearby communities.

"Locally and regionally, we don't know where a lot of that mercury goes once it's emitted," Gerson said. "The question is whether crops are taking it up in their leaves or through their roots, and it could be that they don't. That'd be great. In fact, that's what we hope, but we don't know."

To date, most research on mercury emissions has focused on what happens to it in aquatic environments, which makes sense, Gerson said.

There are microbes living in ecosystems without a lot of oxygen—underwater, for example—that are very efficient at converting mercury into a compound called methyl mercury, which is the form of mercury that causes neurotoxic impacts.

In aquatic environments, then, methyl mercury gets in on the ground floor of the food chain. The chemical accumulates in larger fish and sea life preying on smaller organisms, which is why certain seafoods present mercury concerns for humans. Young children and developing fetuses are especially vulnerable.

With an abundance of oxygen above water, however, research on the fate of methyl mercury on land has been scant.

"We know terrestrial conversion of mercury to methyl mercury is less efficient, but there's a lot of mercury entering the terrestrial ecosystems near artisanal gold mining," Gerson said. "So, it is a concern."

Underscoring that concern is the fact that, during earlier work in Peru, Gerson observed evidence that songbirds in forests near ASGM activity had been exposed to mercury, likely through their diet of fruit and bugs.

Now, with the grant, Gerson and her teammates will track how mercury moves through terrestrial environments and where it ultimately ends up to paint a much more comprehensive picture of its effect on public health.

Also joining the research team are Edith Parker, dean of the College of Public Health at the University of Iowa; Elsie Sunderland, a professor at Harvard University; and Emmanuel Effah, a lecturer at the University of Mines and Technology.

The project will begin Jan. 1, 2024.


More information: Arabella Chen et al, Education and equipment distribution lead to increased mercury knowledge and retort use in artisanal and small-scale gold mining communities in Senegal, Cleaner Production Letters (2023). DOI: 10.1016/j.clpl.2023.100050


Provided by Michigan State University


Explore further Small gold mines in Senegal create high mercury contamination

Researchgate.net

https://www.researchgate.net/publication/359333723_Formalizing_artisanal_and_small-scale_gold_mining_A_grand_challenge_of_the_Minamata_Convention

Our perspective argues that signatories to the Convention will only succeed in reducing ASGM mercury emissions and releases with comprehensive bottom-up ...


Minamataconvention.org

https://minamataconvention.org/en/news/empowering-communities-mercury-free-artisanal-gold-mining-takes-stand-against-biodiversity

Aug 16, 2023 ... This goal was pursued by strengthening institutions, increasing mining communities' access to the financing needed to purchase mercury-free ...

Sciencedirect.com

https://www.sciencedirect.com/science/article/abs/pii/S0301420721003998

In recent years, the formalization of artisanal and small-scale gold mining (ASGM) activities has become a key strategy for governments to better govern and ...




SOUTH AFRICA



Anglo American Plunges as It Slashes Production to Cut Costs

December 8, 2023 by Team @uktimenews

(Bloomberg) — Anglo American Plc plunged 18% after unveiling plans to cut drastically the amount of commodities it mines in a bid to reduce costs amid logistical and operational snarls at its operations.

While Anglo has had well-publicized issues with its platinum and iron ore operations in South Africa, the biggest and most surprising cuts came at its copper business in South America. Its mines there are the company’s crown jewels, producing a commodity that many in the industry expect to face growing shortages later this decade.

Anglo lowered its 2024 output target for copper to between 730,000 tons and 790,000 tons, from as much as 1 million tons, essentially removing the equivalent of a large copper mine from global supply. Production will fall even further in 2025, before starting to rise again the following year.

The company’s biggest problem is its Los Bronces mine in Chile. Like many of the industry’s biggest copper mines, the operation is more than 100 years old and Anglo is now struggling with hard ore that contains low grades of metal. Rather than mine this expensive-to-process ore, the company has decided to wait until it can blend it with higher grade material. Unfortunately for Anglo, that will take several years.

The miner’s shares tumbled the most since March 12, 2020, the day after Covid-19 was officially declared a pandemic. The stock has lost more than 40% of its value this year, weighed down by struggles in its diamond business and slumping prices for key commodities such as palladium.

While most of the commodities Anglo mines are currently in surplus amid weak demand from China and sluggish economies elsewhere, the scale of the company’s production cuts will likely add to expected shortages of some materials going forward.

Copper is an essential material needed to decarbonize the global economy, and most analysts and mining executives see a looming shortage of the metal, with few new mines on the horizon.

The slump will also add another headache for Anglo’s relatively new chief executive officer, Duncan Wanblad, who has already faced a tough start to his tenure. He stepped into the role with most commodity prices at a record, but they have declined since then. The company’s portfolio also has been hampered by issues from extreme weather to a breakdown in crucial infrastructure in South Africa.

The miner will reduce expenditure by another $500 million next year, on top of a $500 million reduction already announced. It plans to cut its capital spending by $1.8 billion though to 2026.

“Given continuing elevated macro volatility, we are being deliberate in reducing our costs and prioritizing our capital to drive more profitable production on a sustainable basis,” Wanblad said.

Lower Output

Overall, Anglo’s production will be about 4% lower next year, before falling another 3% in 2025, it said. It also lowered forecasts for platinum-group metals, iron ore, nickel and coal.

The company has been battling challenges in its South African operations, tackling slumping prices for PGMs and the poor performance of rail and port infrastructure that’s stymieing iron ore exports. Anglo said its PGM output could fall to as low as 3.3 million ounces next year, from 3.8 million ounces this year.

Returns for PGM miners are “at the lowest point seen in this industry in the past 30 years,” Wanblad said. The prices of palladium and rhodium have fallen fast this year, decreasing 46% and 65%. Platinum has fared better, slumping about 14%. Anglo American Platinum Ltd. will postpone plans to build a third concentrator at its flagship Mogalakwena mine and to expand production at its Amandelbult complex, according to Wanblad.

“Whilst it is clearly not positive that Anglo has come to this situation where it needs to shrink its footprint, we think this new streamlined Anglo American should allow it to shed some of the recently more challenging aspects of the business,” RBC Capital Markets analyst Tyler Broda said.

Bloomberg News reported last month that the company was also considering cutting jobs at two units in South Africa because of declining PGM prices and bottlenecks curbing iron ore exports.

Anglo Consults South Africa as It Weighs Platinum, Iron Job Cuts

The miner has held talks with the government over the potential reduction in its workforce. Senior government officials had asked the company to consider delaying the cuts until after elections likely to take place around May.

Constraints on the South African state-run railway that moves material extracted by Anglo unit Kumba Iron Ore Ltd. to a port north of Cape Town are unlikely to be fixed until at least 2025, according to Wanblad. The company is unable to stockpile any more iron ore on-site, so has begun to lower the volumes it’s mining, he said. “Unfortunately, the logistics just haven’t been there.”

(Updates with details throughout)

Bloomberg Businessweek

©2023 Bloomberg L.P.


Anglo American is preparing sweeping cost cuts, say sources

Miner may confirm plans on Friday, including shelving ambitions to boost output at Mogalakwena

07 DECEMBER 2023 - 
by FELIX NJINI AND CLARA DENINA

Picture: UNSPLASH/DEON HUA


Johannesburg/London — Anglo American is preparing to freeze spending on growth and widen job cuts in SA going far beyond its initial savings target and paving the way to mothballing some higher-cost platinum mines, say informed sources.

Anglo’s sweeping spending cuts could be announced as soon as Friday, when the miner updates investors on its three-year outlook, five sources said.


The sources said measures include shelving an ambitious plan to boost output at Anglo American Platinum’s key Mogalakwena mine, and, if metal prices remain depressed, placing on care and maintenance some shafts at the Amandelbult complex in the longer term, which had been initially targeted for mechanisation and output expansion.

A concentrator plant at Amandelbult could also be placed on care and maintenance, said one of the sources.




The moves are likely to result in further job cuts at the operations and lower output guidance, they said.

The global miner had initially targeted saving $500m by cutting corporate jobs and some costs at head offices in Johannesburg, London and other locations.

Scaling down on spending could save an additional $1bn by the end of 2024, with most expected from its platinum operations, one of the sources said, as the company becomes the latest to feel the impact of the price rout ripping through the world’s top platinum producer, SA.

Anglo American declined to comment.

SA’s platinum mining output has been declining gradually over the past decades as investors baulk at investing in new mines amid threats to the metal’s future demand from a rapidly growing battery electric vehicle (EV) sector. Platinum, palladium and rhodium are used in devices that curb exhaust emissions from diesel and petrol engines.

A rapid and precipitous plunge in the prices of palladium and rhodium has already forced other SA producers, including Sibanye-Stillwater and Impala Platinum (Implats), to swiftly move to cut jobs in a bid to preserve margins.

Anglo is also expected to cut jobs and costs at its other SA unit, Kumba Iron Ore, where stockpiles had grown to 9-million tonnes by September on worsening rail bottlenecks.

Anglo Platinum is expected by a group of 11 analysts to account for 12% of the group’s net earnings at $1.3bn this year, down from 30%, or $4.4bn, in 2022.

The plans come as Anglo CEO Duncan Wanblad seeks to develop a $9bn Woodsmith fertiliser project in Britain, on which the company announced a $1.7bn writedown in February.

“Higher-cost assets have been under pressure for some time now, particularly at older, labour-intensive mines. As the industry transitions to newer, mechanised mines, older, higher cost mines will be rationalised,” said BofA Securities analysts.

Palladium prices have plunged to a five-year low ,while rhodium, which soared to record highs of almost $30,000 an ounce in 2021, has since fallen to about $4,400/oz. Platinum prices have fallen 16% in 2023.

The sector’s cost-cutting measures, also taken by junior platinum miners, come as Africa’s most industrialised economy grew only 0.3% in the first nine months of this year.

Platinum mines earned the country about R275bn in export receipts in 2022, according to Minerals Council SA data. The mines, some of which are among the world’s deepest, employ about 175,000 workers.

Some of those jobs are now evaporating. Sibanye, the biggest mining employer in SA, in October said it plans to cut about 4,000 jobs and close some shafts. Rival Implats has a voluntary job cut process up to the end of the year, a spokesperson said.

“If the numbers are low then we may need to do more capital rationalisation. More cost savings could include deeper labour initiatives such as consulting with the unions [on section 189 process] or extending the voluntary separation process,” the spokesperson said.

The sector’s woes may get even worse as penetration of EVs increases in coming years.

“There will be significant demand destruction for PGMs [platinum group metals], especially palladium and rhodium, though limited for platinum, starting 2028 due to battery electric vehicle penetration, and as PGM demand for autocatalysts decline,” said Citigroup analysts.

Reuters


Green Technology targets FID for Ontario lithium project in 2024

Canada-focused lithium company Green Technology Metals (GT1) has progressed its Seymour mine development, in Ontario, to a definitive feasibility study (DFS), targeting a financial investment decision (FID) for the Seymour mine ahead of planned construction activities next year.

This comes as the preliminary economic assessment (PEA), which considers two development options, confirmed “excellent” economics with a combined mine and concentrator development delivering an aftertax net present value of C$1.19-billion and an internal rate of return of 54%.

The combined Seymour and Root mine and spodumene concentrators development will culminate in 15 years of mine production, with phased capital expenditure (capex) and life-of-mine concentrate production of 207 000 t/y at 5.5% lithium oxide (Li2O).

Initial startup capex of C$216-million and second phase capex of C$267-million will be required.

The second part of the PEA includes the conversion of lithium concentrates to lithium chemicals, which are currently unavailable in North America. “It will play a critical role in closing the supply chain from mine to electric vehicle, all Ontario made,” says GT1 CEO Luke Cox.

Both development options are independently feasible, reports ASX-listed GT1.

The projects have been strategically divided into three distinct stages of development designed to lower the capital barrier for entering production. This not only positions the company as a producer, but also establishes project cash flow,

aligning with GT1’s overarching strategy of being the “first producer in Ontario”.

The PEA draws on the mineral resource estimate of the Seymour lithium project, amounting to 10.3-million metric tons at 1.03% Li2O and the Root lithium project, with a mineral resource estimate of 14.6-million metric tons at 1.21% .



Northwestern Ontario lithium miner paints a picture to production

Green Technology Metals meets with strategic investors to fund $1.2-billion lithium development
green-technology-metals-field-sample-1
(Green Technology Metals photo)

A key economic study posted this week by Australia’s Green Technology Metals “validates” their potential to become a large-scale lithium player in northwestern Ontario and Canada.

With a proposed two-mine lithium operation valued at $1.2 billion in the works, the hunt is on to secure both private and government funding to make the mines and a Thunder Bay lithium refinery a reality.

Green Tech gave investors and stakeholders a better idea of what their mining and processing operations could look like with the release of a preliminary economic assessment (PEA), Dec. 7.

The company has two lithium deposits in the region. The most advanced is its flagship Seymour Project at the north end of Lake Nipigon, slated for production in late 2025, followed by its Root Project, northeast of Sioux Lookout, which could go into production by 2029.

Combined, the two mine projects contain a resource of 24.9 million tonnes of high-grade lithium-enriched spodumene rock at an average grade of 1.13 per cent of lithium oxide. From that resource, the company would annually produce 207,000 tonnes of spodumene concentrate for an initial 15-year period.

However, the company has much longer range hopes in mind as the lithium resources at both project sites are expected to grow in size as exploration continues.

Green Tech already has a customer in waiting. They’ve signed an offtake – supply – agreement earlier this year with South Korean battery maker LG Energy Solution to take 25 per cent of the concentrate produced from Seymour’s first five years of production.

While there’s plenty of construction underway in southern Ontario in building battery manufacturing plants for the electric vehicle industry, upstream there are no lithium mines and processing plants in operation to close the loop in a made-in-Ontario supply chain.

Green Tech aims to be the first. 

The company wants to be a vertically integrated producer that mines lithium, creates the concentrate material at the mine, then feeds it into a Thunder Bay chemical refinery for conversion into a value-added product – lithium hydroxide – that’s shipped to the battery plants in the south. The tentative date to begin refining is mid-2028.

To advance the Seymour Project, Green Tech has started a more in-depth feasibility study, which will the basis to make a final decision to start preparatory work in 2024. That study should be out by the second quarter of next year. 

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To build the Seymour Mine and an on-site concentrator requires an upfront investment of $282 million. 

Since there’s substantial North American demand for lithium, Green Tech said it’s had confidential discussions with “strategic groups” connected to the battery materials supply chain in Ontario about investing in Seymour. 

There’s also government funding schemes available, on the federal and provincial levels to help with critical minerals development.

The cost to begin carving out the open pit will be $69 million as the project moves into development stage in mid-2025. Reaching full mining production could be achieved within six months by late 2025.

For the Thunder Bay lithium refinery, Green Tech’s preference is to find an experienced plant operator – someone who’s already making lithium hydroxide and other battery chemicals – and form a joint venture where Green Tech would take a minority ownership stake. 

Discussions with potential partners are “at a concept level only at this stage,” the company said in its PEA report.

Financing the plant will be completed over a three-year period and, again, there’s opportunity to access government funding through programs like the Strategic Innovation Fund. News on that front will come out next year, the company said.

“We are pleased to deliver our PEA which initially includes the mines and concentrators in North Western Ontario, confirming a strong NPV (net present value) and robust project delivery strategy with low capital hurdles to get GT1 first into production within the province of Ontario,” said CEO Luke Cox in a statement.

“The success of GT1’s Strategy includes collaboration between Indigenous partners, communities, government, industry, and all stakeholders. Working together, the actions in this strategy will build a stronger, more resilient business and promote local communities."

Atha to buy uranium explorers 92 Energy, Latitude Uranium

The combination is expected to create a company with up to 7.1 million acres of exploration acreage in Canada.

December 8, 2023
The combined company is expected to have a cash balance of C$55m without any debt. Credit: RHJPhtotos/Shutterstock.com.

Atha Energy has reached two separate agreements to acquire 92 Energy and Latitude Uranium, two Canadian uranium-exploring companies.

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The company is also planning to raise around C$14m ($10.3m) in concurrent financing to fund the two transactions.

Under the terms of the definitive arrangement agreement with Latitude, Atha shareholders are entitled to receive 0.2769 shares of Atha for each share held.

This is a 68% premium to the stock’s closing price on 6 December 2023.

The swap ratio offered under the binding scheme implementation deed with 92 Energy is 0.5834 shares of Atha for each share of 92 Energy.

This marks a 78% premium to 92 Energy’s stock close on 7 December 2023.

Atha stated that the combined company could provide its shareholders with exposure to 7.1 million acres of exploration area in some of the top three uranium jurisdictions in Canada.

The overall mineral estimate is expected to be 2.8 million tonnes at 0.69% triuranium octoxide (U3O8) containing 43.3 million pounds of U3O8 at the Angilak deposit.

Furthermore, it estimates 14.7 million tonnes at 0.03% U3O8 containing 5.2 million pounds of U3O8 indicated and 28.3 million tonnes at 0.03% U3O8 containing 4.4 million pounds of U3O8 inferred at Moran Lake.

It also estimates 5.1 million tonnes at 0.04% U3O8 containing 4.9 million pounds of U3O8 inferred at Anna Lake, within the Central Mineral Belt of Labrador.

The combined company is expected to benefit from improved liquidity and draw the interest of more institutional investors.

The merged business is forecast to have a cash balance of more than C$55m with no debt.

Assuming that Atha secures the concurrent financing, the company will be able to support its exploration activities well into 2025.

Atha CEO Troy Boisjoli said: “We are thrilled for ATHA to have such an incredible opportunity to create Canada’s premier exploration company during a period where the world’s increasing adoption of nuclear energy is calling for new supplies of uranium.

“By combining highly complementary exploration assets from across the exploration risk curve in top-tier Canadian mining jurisdictions, we believe the combined entity will own one of the most complete portfolios of uranium assets in the entire sector and are thrilled to be able to leverage the combined team’s technical and financial resources to maximise the value of this opportunity.”

As part of the concurrent financing, Atha entered an agreement with Eight Capital to act as co-lead agent and joint bookrunner with Canaccord Genuity.

It agreed to issue up to 6.4 million charitable flow-through shares and four million subscription receipts, for total gross proceeds of C$14m.

92 Energy sizing up three-way uranium merger with Canada’s ATHA Energy

ASX News
Jonathon Davidsonjonathon.davidson@themarketherald.com.au
08 December 2023 
The Gemini project, Canada. Source: 92 Energy

92 Energy (ASX:92E) is looking at a three-way merger with a Canadian company
ATHA Energy wants to buy 100 per cent of 92 Energy

It also intends to acquire a third company called Latitude Uranium

The merger would see the company cashed up with $70 million and more than 7 million acres of landholding

92 Energy is ultimately hopeful the merger will ATHA develop its Gemini discovery
92E shares are up 32.9 per cent, trading at 48.5 cents at 11:10 am AEDT


Uranium miner 92 Energy (ASX:92E) has confirmed it’s sizing up a three-way merger between itself and Canada-listed ATHA Energy Corp.

At the same time, ATHA wants to buy up a second company called Latitude Uranium. Canadian courts have approved that deal.

That would see 92 Energy taking part in a three-way merger calculated to deliver a 78 per cent premium to 92E’s existing shareholders.

92 Energy shareholders are to receive 0.58 ATHA shares for every 92E share held – equalling roughly 65 cents per share. 92E’s Board is recommending shareholders greenback the merger.

“The deal will deliver a significant premium to 92E shareholders while also giving them the opportunity to be part of the premier Canadian uranium explorer with outstanding growth potential underpinned by a significant discovery,” 92 Energy Managing Director Siobhan Lancaster said.

ATHA wants 100 per cent of 92 Energy and so in that regard domestic shareholders don’t need to look at the complexity of the full deal.

What 92 Energy sees as valuable in the proposal is the consequent establishment of a Canada-based uranium exploration company beefed up enough to develop 92E’s Gemini discovery.

All three companies together would have more than C$64 million (A$71.3 million).

“We are thrilled for ATHA to have such an incredible opportunity to create Canada’s premier exploration company during a period where the world’s increasing adoption of nuclear energy is calling for new supplies of uranium,” ATHA CEO Troy Boisjoli.

But the merger would see 92 Energy “maintaining exposure to Gemini through a Canadian-listed vehicle,” it announced today.

It would also put 92 Energy in a corporate club with more than 7 million acres of exploration tenure.

92E shares were up 32.9 per cent, trading at 48.5 cents at 11:10 am AEDT.

Major Canadian Mining Company Joins Forces with Arras Minerals to Target Critical Minerals in Kazakhstan

TORONTO, ON / December 7, 2023 /  Arras Minerals (TSX.V: ARK) has announced a new strategic alliance agreement with Teck Resources (TSX: TECK-A), signaling a collaborative effort to concentrate on the exploration of critical minerals within Arras' strategically positioned license package in the Bozshakol-Chingiz Magmatic Arc situated in Pavlodar, Kazakhstan.

Under the terms of the agreement, Teck Resources is set to exclusively fund generative exploration endeavors until 2025. The initial financial commitment for these exploration activities amounts to a substantial US$5 million, slated to be expended before December 31, 2025. This investment is designated for Package "A" and Package "B," encompassing an expansive 1,736 square kilometers, as illustrated in the accompanying map.

Subsequent to the initial phase of generative exploration, Teck Resources will be granted the option to designate up to four specific properties, each totaling 120 square kilometers. In these designated properties, Teck will assume the responsibility of funding exploration expenditures, committing up to US$47.5 million per project. In return for this financial commitment, Teck will secure the right to earn up to a substantial 75% interest in each of the designated projects.

To facilitate the collaboration, Teck Resources has also committed to reimbursing Arras for certain project-related expenses incurred thus far. This reimbursement will be facilitated through a cash payment of US$1 million upon signing, with potential additional payments in the future should Teck choose to progress through subsequent project phases.

For the initial year of the anticipated two-year generative program, Arras will take on the role of manager, overseeing the day-to-day operations.

Arras Minerals President Darren Klinck commented, “We are very pleased to be partnering and working with Teck to advance a portion of our regional license package in Kazakhstan. Following their strategic equity investment into Arras last November, this Agreement provides Teck the option to invest significant funds into critical minerals focused exploration through Arras’ project portfolio and it is a clear indication of the potential that exists in the Bozshakol-Chingiz Magmatic Arc. This initiative in Kazakhstan highlights the emerging opportunities in the country and also demonstrates Kazakhstan’s strong position to be a key player globally as the world seeks to secure the necessary critical minerals required over the coming decades.”

This strategic initiative in Kazakhstan not only underscores the growing prospects within the country but also positions Kazakhstan favorably as a global player in the quest for securing essential critical minerals in the decades to come. The partnership between Arras Minerals and Teck Resources reflects a shared commitment to advancing exploration efforts, contributing to the global supply chain of critical minerals, and capitalizing on the strategic location of Kazakhstan in this regard.

Shares of Arras rose 8.89% on the positive news to close the session at $0.25 on more than 215,000 shares traded.

ABOUT ARRAS MINERALS


For more information visit www.arrasminerals.com

NEW USE FOR OLD COAL MINES
Ramaco CEO says Wyoming coal mine discoveries include gallium, germanium

Bloomberg News | December 6, 2023 

Brook mine property in Wyoming. Image from Ramaco Resources.

Ramaco Resources Inc. said it found two more rare minerals in a Wyoming coal mine, adding to its discovery of what the company has called one of the largest deposits of rare earth elements in the US.


The mine that the metallurgical coal producer is surveying for rare earth elements used in magnets also contains gallium and germanium, two minerals that China recently put export controls on, chief executive officer Randall Atkins said Wednesday in a Bloomberg Television interview. He said the discovery of these materials could value the mine at as much as $37 billion.


Coal country to carbon innovation: Wyoming rare earths discovery could be a game changer for US

“We have a lot of the heavier magnetic elements as well as secondary elements as well as two of the critical materials that have recently been banned by China, which is gallium and germanium,” Atkins said. “It does contain a rather valuable basket of elements.”

China announced restrictions on gallium and germanium in July as part of a tit-for-tat trade war on technology with the US and Europe. The Pentagon issued a first-time contract to US or Canadian companies by year-end to recover gallium, a mineral used in semiconductors and military radar systems. Atkins said in a Bloomberg News interview that the Kentucky-based company has been in contact with the US Defense Department about its discovery.

Atkins has told investors he won’t put a time frame on when he expects the company to begin producing or processing the rare earth elements. He said in Wednesday’s TV interview that Ramaco will take 12 to 24 months to analyze how it will even extract the minerals.

(By Joe Deaux, David Westin and Romaine Bostick)
MONOPOLY CAPITALI$M
Aluminum group calls for EU to go much further on Russian bans

Reuters | December 8, 2023 | 

Aluminum smelter. (Reference image by UC Rusal Photo Gallery, Wikimedia Commons).

The EU should go beyond banning aluminum wire, foil, tubes and pipes produced in Russia by sanctioning Russian aluminum metal for a greater impact, industry group European Aluminium said.


European Union members are looking at a proposed 12th package of sanctions, including bans on aluminum wire, tubes and pipes, a small proportion of Russian aluminum imports.



“We regret the fact that the vast majority of Russian aluminum exports to the EU (more than 85% of the total), in particular primary metal, look set to remain outside of the scope of the measures,” European Aluminium said in a letter sent to European Commission President Ursula von der Leyen.

In the first nine months of 2023, the EU imported almost 500,000 metric tons of Russian aluminum and aluminum products worth 1.26 billion euros ($1.37 billion), Eurostat data shows.

“We would have no specific comment. It is for EU member states in the Council to unanimously adopt sanctions,” an EU spokesperson said in response to a request for comment.

When Russia invaded Ukraine in February 2022, the EU took a cautious approach due to the region’s reliance on Russian supplies of aluminum, a key material for European industry.

“However, 21 months later, circumstances have changed considerably. The European aluminum industry has accelerated its decoupling from Russia,” the industry group said.

Trade Data Monitor says the EU in total imported more than 2.4 million tons or $6.3 billion worth of unalloyed and unwrought primary aluminum between January and September this year of which 11% came from Russia. This compares with 20% in the same period last year and in 2021.

“The scope of the sanctions must be much broader to have a substantial impact. It should include primary aluminum from Russia,” said PÃ¥l Kildemo, chief financial officer at Norwegian aluminum producer Hydro.

“We need strict anti-circumvention rules to ensure that sanctions are not circumvented by shipping Russian aluminum to third countries and making it into a product that’s sold to Europe,” Kildemo said.

Russian aluminum is produced by Rusal, which last year accounted for 4 million tons or 6% of global supplies.

In July, European Aluminium sent a letter to its members saying it had discussed the possibility of “actively calling for EU sanctions on Russian aluminum”, but not on Rusal.

(By Pratima Desai; Editing by Jan Harvey and Alexander Smith)
GEMOLOGY
G7 to ban Russian diamonds, announce measures on price cap, assets

Reuters | December 6, 2023 | 

Image from Alrosa.

G7 leaders are expected to announce on Wednesday a ban on Russian diamonds and measures to manage some 300 billion euros ($323.58 billion) in immobilized Russian central bank assets and the G7 oil price cap, sources familiar with the matter said.


G7 leaders are had a virtual meeting on Wednesday.


One source specified that the G7 was expected to announce a direct ban as of Jan. 1 and then an indirect ban with a phase in period from March 1 until Sept. 1.

During the phase-in period, diamond companies will be able to use a self-declaration system like one provided by the World Diamond Council, the source added.

The system will use tracing and certification done through G7 countries and only apply to rough diamonds in an initial phase. Western countries initially looked at various proposals that covered rough and polished gems but countries could not agree on polished.

On the oil side, western nations have admitted that the impact of their $60 price cap on Russian crude oil has waned one year in, and the countries have been looking at ways to strengthen implementation. The EU’s latest proposed package of sanctions on Russia includes some measures to capture details on “ancillary costs” and slow the sale of old western ships to Russia’s so-called “shadow fleet”.

Meanwhile, the United States has started to impose sanctions on those who violate the price cap. Last week, Washington imposed additional sanctions, targeting three entities and three oil tankers as Washington seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine.

As for immobilized Russian assets, the European Commission is expected to propose next week a way to capture the windfall from the interest gained on the frozen assets. Coordination with the G7 is essential, however, as the assets are spread between various currencies though most is being held by Belgian clearing house Euroclear.

($1 = 0.9271 euros)

(By Julia Payne; Editing by Alexandra Hudson)

SOUTH AFRICA

Petra says prices have likely bottomed; secures increase in credit facility

8th December 2023
By: Creamer Media Reporter


Diamond mining group Petra Diamonds has sold 462 794 ct of diamonds for $58.7-million in its third tender for the 2024 financial year.

This is higher than the 444 029 ct sold for $41.5-million in the second tender of the current financial year and the 303 300 ct sold for $41.5-million in the third tender of the 2023 financial year.


The average price for the third tender of the current financial year was $127/ct, higher than the $91/ct achieved in the second tender of the year, but lower than the $137/ct achieved in the third tender of the prior financial year.

"The 20% increase in like-for-like prices for our third tender of financial year 2024 supports the view that diamond prices have likely bottomed.


“We believe actions taken by major producers to curb supply and the two-month Indian moratorium that comes to an end on December 15, together with strengthened retail sales in the US, have improved market conditions as inventory levels across the pipeline rebalance. Ongoing discipline by the key players is important to provide some price stability in the new year," comments Petra CEO Richard Duffy.

Meanwhile, financial services provider Absa has approved an increase of R750-million to an existing R1-billion first lien revolving credit facility.

The diamond miner, which operates three mines in South Africa and one in Tanzania, says R850-million has been drawn under the facility, leaving a balance of R900-million available under the upsized facility.

"Securing this increased facility, coupled with the recently announced capital deferrals and cost optimisation, further improves our resilience and operational and sales flexibility in the event of a weaker-for-longer diamond market," says Duffy. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Russian uranium import ban teed up for US House floor vote

Bloomberg News | December 7, 2023 | 

Leningrad II nuclear power plant (Image: Rosatom)

Legislation that would bar the import of enriched Russian uranium into the US has been teed up for a vote in the US House of Representatives.


The Prohibiting Russian Uranium Imports Act, by Washington Representative Cathy McMorris Rodgers, has been scheduled for consideration next week under an expedited procedure that requires two-thirds majority to pass, according to the House floor schedule.

Support for a ban on the import of nuclear reactor fuel from Russia is growing among both Democrats and Republicans following Russia’s invasion of Ukraine. Its backers have been seeking to attach the measure to must-pass legislation, according to people familiar with the matter. House passage of a standalone bill would set up the opportunity pass the same legislation in the Senate.

Russia supplied almost a quarter of the enriched uranium used to fuel America’s fleet of more than 90 commercial reactors, making it the No. 1 supplier to the US last year, according to Energy Department data.

The legislation, which would bar Russian uranium imports 90 days after enactment while allowing a temporary waiver until January 2028, was approved by a House committee in May. A Senate panel approved similar legislation, which has the backing of both West Virginia Democrat Senator Joe Manchin and Wyoming Republican John Barrasso, who serve as the top lawmakers on the Senate Energy and Natural Resources Committee.

The House legislation would increase the cost of nuclear fuel in the US by 13%, according to an analysis by the non-partisan Congressional budget estimators.

The bill would “restrict access to relatively low-cost Russian enrichment services and cause disruptions in the market for nuclear fuel, thereby increasing the average price of fuel for US nuclear reactors and lowering their average operating margins,” the Congressional Budget Office said in its analysis of the bill.

The Biden administration has requested more than $2 billion from Congress to increase the US’s domestic enrichment capabilities. That includes both highly enriched uranium, needed for a new breed of advanced reactors, and low-enriched uranium, which is used as fuel by traditional nuclear plants.

(By Ari Natter)
Sprott, HanETF launch copper miners ETF focused on lower carbon footprint

“In the US, it’s fair to say that ESG is highly political and it has been somewhat weaponized … in Europe, things are more progressive, there is a much more accepted focus on ESG, as well as energy transition,”

Reuters | December 7, 2023 

Stock image.

HanETF and Sprott Asset Management on Thursday jointly launched an exchange-traded fund in Europe that tracks copper miners with a lower carbon footprint, in what will be their third fund to be unveiled together in the last two years.


Sprott Asset Management CEO John Ciampaglia noted the use of a greenhouse gas emission screen as the ETF’s most innovative feature.

According to Ciampaglia, the fund relies on a model that helps evaluate the amount of carbon dioxide produced in a miner’s supply chain for every pound of copper it produces and then excludes firms that perform worse in terms of their carbon footprint.

“Copper will be the backbone of the energy transition,” Ciampaglia also said, pointing to its use in electric vehicles and solar industry.

The Sprott Copper Miners ESG-Screened UCITS ETF will track the Nasdaq Sprott Copper Miners ESG Screened Index, with Ivanhoe Mines and Antofagasta among the ETF’s biggest holdings.

It is also Europe’s only Article 8 copper miners ETF under the Sustainable Finance Disclosure Regulation (SFDR), which mandates how asset managers should disclose ESG factors, the firms said.

Although funds that incorporate environmental, social and governance (ESG) goals into their mandate have struggled this year amid a sharp rise in interest rates and economic uncertainty, their performance in Europe has been better than in the United States.

“In the US, it’s fair to say that ESG is highly political and it has been somewhat weaponized … in Europe, things are more progressive, there is a much more accepted focus on ESG, as well as energy transition,” Ciampaglia said.

Ciampaglia and HanETF’s head of research Tom Bailey added that they decided to launch the fund following conversations with a large institutional investor in the DACH region (Germany, Austria and Switzerland).

The ETF has an expense ratio of 0.59%.

Sprott Uranium Miners UCITS ETF and Sprott Energy Transition Materials UCITS ETF are the other two ETFs jointly launched by the asset managers.

(By Bansari Mayur Kamdar)