ROYAL CANADIAN MINT COMMEMORATES BLACK HISTORY WITH SILVER COIN RECOGNIZING THE SETTLERS OF AMBER VALLEY, ALBERTA

NEWS PROVIDED BY  Royal Canadian Mint

OTTAWA, ON, Jan. 27, 2024 /PRNewswire/ -- In launching the latest issue in its ongoing Commemorating Black History fine silver coin series, the Royal Canadian Mint is honouring the community of Amber Valley, Alberta, founded in 1910 by African American families from Oklahoma, Texas and other surrounding states. Seeking a life away from segregationist laws, racial hostility and violence, they journeyed to Northern Alberta in response to the government of Canada's offer of free land in the Canadian west. By 1910, approximately 300 men, women and children endured and overcame new hardships as they tamed the Alberta wilderness to carve out a new life in a thriving community that was renamed Amber Valley in 1931. Their inspiring tale of spirit and determination is forever preserved on a beautiful 99.99% pure silver collector coin.

The Royal Canadian Mint's 2024 Commemorating Black History: Amber Valley Fine Silver Coin

Released in conjunction with the annual observance of Black History Month, the 2024 $20 Fine Silver Coin – Commemorating Black History: Amber Valley celebrates the legacy of an exceptional group men and women who built one of Western Canada's earliest Black settlements. It is available as of today.

"I appreciate the recognition this coin represents," said Myrna Wisdom, Historian and Co-Founder of The Black Settlers of Alberta and Saskatchewan Historical Society. "The Black Settlers of Amber Valley are indeed deserving of this recognition, which includes both my paternal and maternal grandparents, as well as my parents."

"The Royal Canadian Mint is proud to contribute to the national celebration of Canada's Black History Month through a continuing series of silver collector coins that captures important stories that define our shared heritage," said Marie Lemay, President and CEO of the Royal Canadian Mint. "We are delighted to share the inspiring story of Amber Valley and the pioneering Black settlers who succeeded in building a new life in a new land, as yet another example of the spirit and resilience of Black communities across Canada."

The reverse design of this 99.99% pure silver coin, by artist Valentine De Landro, is centered on an imagined scene of a homesteader family arriving in Pine Creek, Alberta in 1909 and peering over the land that would become the thriving community of Amber Valley. The design includes a map outline of the province of Alberta, enhanced by a bough of maple leaves. The lower portion of the reverse depicts a wagon train of settlers completing their long journey from the southern United States. The scene is framed by log cabins, which were the first houses built by the intrepid Black pioneers who were determined to make a new home in Northern Alberta.

"For the composition, I needed to find a balance between what I thought were two prevailing characteristics: the journey and the community," said artist Valentine De Landro. "The pioneering imagery was essential to communicating the spirit of Amber Valley, crossing through harsh terrain to reach a virtually unknown destination and to begin a legacy centred on the goal of a better life for their family."

The obverse of the coin features the Susanna Blunt-designed transitional effigy of Queen Elizabeth II, which includes a special marking consisting of a vertical inscription of the dates "1952" and "2022", separated by four pearls to symbolize the four effigies that have graced Canadian coins throughout the reign.

Limited to a mintage of 5,500, the 2024 $20 Fine Silver Coin - Commemorating Black History: Amber Valley retails for $104.95. This new collectible may be ordered as of today by contacting the Mint at 1-800-267‑1871 in Canada, 1-800-268‑6468 in the US, or at www.mint.ca. It will also be available at the Royal Canadian Mint's boutiques in Ottawa and Winnipeg, at participating Canada Post outlets, and through the Mint's global network of dealers and distributors.

Images of this coin are available here.

THE ROYAL CANADIAN MINT TRANSFORMS ITS GOLD REFINING WITH NEW DISTRIBUTED LEDGER TECHNOLOGY SOLUTION THAT TRACES METAL FROM MINE TO VAULT

NEWS PROVIDED BY Royal Canadian Mint

04 Mar, 2024, 


OTTAWA, ON, March 4, 2024 /PRNewswire/ -- As a London Good Delivery refiner dedicated to continually improving the accountability and transparency of its precious metal sourcing, the Royal Canadian Mint (the Mint) has implemented a Distributed Ledger Technology (DLT) solution that now makes it possible to perform end-to-end tracing and certify the provenance of gold deposited and processed at its refinery. This solution has been applied in collaboration with aXedras.

This integration of DLT allows investors, financial institutions, dealers and distributors of Mint bullion products, as well as fabricators, to access secure, standardized and digitalized information about the provenance, and integrity of the production standards related to their products. Mines, recyclers and other precious metals suppliers whose material is refined by the Mint will benefit from numerous business‑to‑business process enhancements, such as seamless immutable data transfer, easy access to reports, audits and more.

"By innovating with Distributed Ledger Technology in our world-class refinery, we can now offer our customers end-to-end sourcing transparency, in addition to the industry-leading purity, quality and security of the gold we refine and of the bullion we produce," said Marie Lemay, President and CEO of the Royal Canadian Mint.

The Mint is leveraging aXedras' Bullion Integrity Ledger™ solution to further enhance its focus on being best-in-class for its supply chain and partner management and will help to provide an additional layer of assurance and transparency to the refinery's operations, reinforcing the Mint's reputation as a precious metal industry leader.

This platform will give Mint refinery customers the ability to demonstrate transparency and trust, giving their buyers more confidence in the history and provenance of their products. It also helps the Mint support industry-wide efforts to improve transparency at every level of the bullion supply chain, which strengthens the integrity of the markets we serve.

There are two key aspects to the type and scope of data captured by DLT:Transfer/Ownership Custody:DLT will record the transaction history of both incoming material and also gold bullion bar products. Simply put, whomever has custody/ownership of the gold bar will have the ability to see the bar's custody history (e.g., Mint, financial institution, armoured car carrier, or London Vault).
DLT will log the transfer and ownership of a gold bullion bar. This could be the initial purchase from one RCM client to another (such as banks selling bars to one another) or subsequent changes of ownership, as one entity sells the bar onto another entity. The owner of the bar will be able to see both the historical custody and ownership changes.


Refinery Transformation (when the Mint processes the gold from rough deposit to Refinery outturn):DLT allows the Mint to attach a provenance record to each gold bullion bar to enable the owner of the bar to view the origin of the gold within the bar. This could be responsibly sourced gold of a specific origin, such as a single mine, Canadian-mined gold, recycled gold, or co-mingled gold that includes the blending of responsibly sourced gold, internal recycled material recovered as part of the normal refining process, such as re-used anodes and residual gold cleaned from refinery processes.

Parties registered as platform users, such as refining clients, armoured car carriers/logistic providers, financial institutions, and bullion distributors and dealers, will be able to access this data directly.

About the Royal Canadian Mint
The Royal Canadian Mint is the Crown corporation responsible for the minting and distribution of Canada's circulation coins. The Mint is one of the largest and most versatile mints in the world, producing award-winning collector coins, market-leading bullion products, as well as Canada's prestigious military and civilian honours.

As an established London and COMEX Good Delivery refiner, the Mint also offers a full spectrum of best-in-class gold and silver refining services. As an organization that strives to take better care of the environment, to cultivate safe and inclusive workplaces and to make a positive impact on the communities where it operates, the Mint integrates environmental, social and governance practices in every aspect of its operations.

For more information on the Mint, its products and services, visit www.mint.ca. 

USGS and Colorado School of Mines Partner to Explore Potential of Geologic Hydrogen

The joint industry program will explore the potential of geologic hydrogen as a low-carbon energy source.

March 5, 2024
The Way Ahead

 

Colorado School of Mines and the US Geological Survey (USGS) announced they will partner to establish a joint industry program to explore the potential of geologic hydrogen as a low-carbon energy source. Eight companies including BP, Chevron, and Petrobras, have signed on as industry partners to help fund the program. The consortium collaborative research in September 2023.

The consortium’s research will focus on the development of four key areas:

• A geologic “hydrogen system” model that identifies sources, migration pathways and mechanisms, reservoirs, traps, and seals leading to accumulations of hydrogen in the subsurface.
  
• Surface exploration approaches, including remote sensing and surface geochemistry, to refine our understanding of where hydrogen accumulations exist in the subsurface.
  
• Subsurface exploration tools, including multiple geophysical tools, advanced signal processing and artificial intelligence tools, to image geologic hydrogen systems and potential economic accumulations suitable for energy production.
  
• 3D reactive transport modeling that integrates geology, geochemistry, and geophysics to improve the understanding of hydrogen systems and provide guidance to the development of exploration strategies.

“A major focus of the consortium is developing immediately deployable technologies,” said Yaoguo Li, professor of geophysics at Mines. According to the university, the immediate objectives are the scientific understanding of hydrogen systems, including mechanisms and conditions of hydrogen generation, migration, and preservation, as well as practical tools to find hydrogen accumulation and identify the potential for enhanced hydrogen generation. 

More information about the collaboration is available here.

Column: Nickel producers fear growing Indonesian pricing power

Reuters | March 6, 2024 | 

Statue of President Jokowi at Mandalika International Street Circuit. (Stock Image)

An Indonesian nickel producer has for the first time ever applied to have its metal listed as a good delivery brand on the London Metal Exchange (LME).


Indonesia has rapidly emerged as the new powerhouse of global nickel production but until now has not produced the metal in the high-purity form traded on either the LME or the Shanghai Futures Exchange.

That will change if PT CNGR Ding Xing New Energy gets the official nod for its “DX-zwdx” brand of full-plate nickel cathode.

It is likely to do so since the LME is fast-tracking new nickel listings as part of its recovery plan after the market meltdown in 2022. The policy appears to be paying off for the exchange with stocks and trading volumes rising.

For many other nickel producers, however, it marks an ominous moment in the transformation of Indonesia’s growing production dominance into exchange pricing power.

The reaction is building in the form of growing calls for a premium “green” nickel contract.

LME nickel price, stocks, volumes and MOI
Stocks booster

Ding Xing New Energy has the capacity to produce 50,000 metric tons a year of Class I refined nickel having mastered the technology of converting Indonesia’s relatively low-grade ore into pure metal form.

Many others, mostly Chinese operators, are now building out similar new processing capacity in both Indonesia and China.

The LME has already approved four new Chinese brands with another application pending. They bring a collective 91,600 metric tons of annual Class I metal capacity.

Rebuilding stocks liquidity is part of the LME’s pathway to restoring confidence in its nickel contract after the suspension of trading two years ago.

LME registered stocks have been trending upwards since the start of the year, hitting a near two-year high of 73,992 tons at the end of last week. The volume of Chinese metal in LME storage rose from zero in August to 7,884 tons at the end of January.

Rising inventory has been accompanied by greater trading activity on the LME contract. Volumes surged by 74% year-on-year over January and February. Open interest is also creeping back up towards levels seen before the market suspension.

The previous price divergence between Class I nickel and Class II products such as ferronickel has been closing as refiners like Ding Xing convert surplus in the Class II segment of the market into exchange-traded form.

But will the LME contract become a market defined by Indonesian metal, or in the case of the newly-listed Chinese brands, metal derived from Indonesian mines?

Princing power

Indonesia’s mined nickel production has jumped from under 800,000 tons in 2020 to 2.03 million tonnes in 2023, when it accounted for 55% of global output.

What happens in Indonesia already shapes nickel’s pricing landscape.

LME three-month nickel is on a bit of a roll right now, up by over 7% on the start of the year at a current $17,590 per ton.

Underpinning the rally is Indonesia’s backlog of new mine licence approvals, a bureaucratic logjam that threatens to curb smelter production.

But the price bounce comes after a year of sliding prices, which was also down to Indonesia’s supply surge.

Indonesian officials do not hide their ambition to convert that market influence into explicit pricing power.

A price of around $18,000 per ton is about right, opens new tab for Indonesia, according to Septian Hario Seto, deputy coordinating minister for the mining sector. It’s high enough to allow most local producers to make a healthy margin but low enough to keep nickel in the electric vehicle battery chemistry mix.

That price, however, isn’t right for many non-Indonesian producers. The last few months have brought a slew of closures and writedowns in the face of low prices. Class II producers have to date borne the brunt of Indonesian oversupply and have been particularly hard hit.

Fracturing the market

Australian iron ore magnate Andrew Forrest is the latest industry figure to call on the LME to introduce a “green” premium contract to complement its existing product.

Forrest’s Wyloo Metals will be shuttering its Australian nickel operations in May to low prices.

A “green” contract would be a way of differentiating Australian nickel from Indonesian nickel, which is cheaper but comes with a higher carbon footprint due to the processing route from ore to metal.

The LME today issued a notice to members saying that it has no current plans either to launch a new parallel contract or to change the specifications of the existing one.

It would risk fracturing the London market again just as it is showing signs of recovery. Moreover, “the LME believes the market for ‘green’ nickel is not yet large enough to support vibrant trading in a dedicated green futures contract.”

A green nickel market?

This cuts to the heart of the “green” premium debate.

Producers carrying the extra costs of tight environmental compliance should not be put out of business by those with lower thresholds. There is a strong case that such metal should be priced at a premium.

But there can be no premium if buyers aren’t prepared to pay one for “clean” metal, a choice that ends up with the ultimate buyer of a new electric vehicle.

Some big consumer brands pay up extra for low-carbon aluminium. Austrian copper producer Brixlegg charges a green premium, opens new tab on its recycled low-carbon metal.

But these are still outliers in the global aluminium and copper markets and nickel is some way behind the broader “green” premium debate.

Is there a market for green nickel? If there is, the LME thinks “it is most effectively conducted through digital spot trading platforms” such as LME partner Metalshub.

Metalshub has been operating a physical procurement metals trading platform since 2016 and already calculates a weekly European Duty Paid Nickel Briquette Premium.

The company will start reporting monthly on the number of transactions and market value of its Class I nickel trade, including a subset of brands with a registered carbon footprint lower than 20 tons of CO2 per tonne of metal.

The idea is that if there are enough transactions, Metalshub could calculate a “green” nickel index, which could then be the basis of a futures product.

It all depends, though, on how many buyers are prepared to pay up for low-carbon, high-ESG nickel.

(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

(Editing by Marguerita Choy)

Related: Indonesia and China killed the nickel market

China’s top coking coal miner calls on state to control supply

Bloomberg News | March 6, 2024 |

Coal miner in Xingtai, China. (Image courtesy of Wikimedia Commons.)

China’s coking coal industry needs more state protection, including restrictions on supply, according to the chairman of the biggest miner.


Beijing should control mining activity, limit output and consolidate smaller producers into state-owned firms to “reduce disorderly competition,” Shanxi Coking Coal Energy Group chairman Zhao Jianze told local media. China should also build strategic reserves of the steelmaking fuel, which he called “a ballast stone in China’s industrial economic system.”




While blessed with an abundance of thermal coal for power generation, China’s reserves of the steelmaking variety are far more scarce. That’s led to an over-reliance on imports, which has created vulnerabilities. A ban on Australian supplies — the only effective substitute for Chinese coking coal, according to Zhao — drastically curtailed shipments for more than two years before it was lifted in early 2023.

Zhao is a national committee member of the Chinese People’s Political Consultative Conference, one of two legislative sessions being held in the capital this week. Officials typically use the meetings to catch the attention of policymakers as they draw up the government’s agenda for the year ahead.

Coking coal producers have suffered an outsized impact in recent months from a spate of fatal mining disasters in China, which has disrupted operations and curbed supply. The protracted slump in China’s property market is also sapping demand from their customers at steel mills.

China’s copper smelters to discuss production cut as fees slump

Bloomberg News | March 6, 2024 | 

Chimneys of copper smelting plant. Stock image.

China’s biggest copper smelters are set to meet in Beijing next week to discuss measures to counter a plunge in ore processing fees to the lowest level in years, including potential production cuts.


At least 15 smelters were invited to the meeting hosted by the China Nonferrous Metals Industry Association, said people familiar with the matter, who asked not to be identified as they aren’t authorized to speak publicly.

The fees that companies receive to turn concentrate into refined metal, so-called treatment charges, have slumped to a record low in data going back to 2013. They dropped to single digits in 2010 after the global financial crisis forced miners to curtail operations, according to Wood Mackenzie Ltd.

Smelters compete to treat concentrate but overseas mine disruptions are curbing supply, forcing them to drop their fees. The situation is made worse by overcapacity in China, home to the world’s largest processing industry, where smelters have expanded relentlessly to meet demand from economic growth and the energy transition.

Senior executives from the smelters are set to discuss a joint production cut, but it may be difficult for all the plants to agree on such a plan, the people said. The industry association declined to comment. Shanghai Metals Market reported the meeting earlier.

The president of Tongling Nonferrous Metals Group Holdings Co., one of the top producers, said this week that his company is not planning output cuts or changes in maintenance schedules. The company expects copper demand to grow from emerging industries such as electric vehicles and other new-energy sectors.

(By Alfred Cang)

First Quantum’s Panama mine closure to cost around $800m, minister says

Reuters | March 6, 2024 | 

Cobre Panama mine. (Image: First Quantum Minerals.)

The cost of the closure of Canadian miner First Quantum’s copper mine in Panama is estimated at around $800 million, Trade and Industry Minister Jorge Rivera said on Wednesday.


An inter-ministry coalition, which is developing the mine’s closure plan, is working on alternative measures to recoup funds so that the cost does not come out of the state’s coffers, Rivera told journalists.

Panama’s government ordered the shutdown in December after protests calling for more environmental protections erupted across the country and a court ruling deemed the contract to run the mine unconstitutional.

It is still unclear who will pay for the mine’s closure process, but the Panamanian government suggested on Tuesday that First Quantum’s unit in the country set out financial guarantees to cover the cost of closing its lucrative copper mine.

Creating a plan to close the mine could take between six and eight months, the minister said, noting Panama is headed to elections in May so the next president will be the one in charge of finishing it.

The mine’s activity represents about 5% of the country’s GDP, and Panama is expected to see growth slow in 2024 to 2.5% from 7.5% as a result of the closure of the mine, according to data from the International Monetary Fund (IMF).

(By Elida Moreno; Editing by Brendan O’Boyle)

Future of First Quantum mine is for the people of Panama to decide, US official says

Reuters | March 5, 2024

Under Secretary Jose W. Fernandez. Credit: US State Department

A dispute between First Quantum Minerals and Panama over the Canadian company’s flagship copper mine in the Central American nation is an issue for the people of Panama to decide, a top US official told Reuters.


In a surprise move late last year, Panama ordered the closure of Cobre Panama mine, one of the biggest and the newest copper mines in the world, which accounted for about 40% of First Quantum’s revenue in 2023.

“We have followed the case, and it is an issue for the Panamanian people to decide… and I know it is a situation where some communities, not all have expressed opposition,” Jose W. Fernandez, US under secretary for economic growth, energy and the environment said late on Monday.

Fernandez was responding to Reuters‘ question whether the US, which has close relations with Canada and Panama, had taken up the issue of weakening investment climate in the Central American country.

“The US and Canadian governments have been very supportive but we do not comment on specific discussions,” First Quantum said in reply to a Reuters query on whether it had asked Canada or US to intervene in the issue.

The company is seeking $20 billion through international arbitration from Panama over the mine closure order.

Canadian Trade Minister Mary Nag said in February the government aims to support First Quantum “as best as it can” without elaborating.

Panama holds presidential elections in May, and the future of Cobre Panama mine has emerged as a flash point among opponents and supporters of the mine.

First Quantum shares have lost about half their value since the street protests and last month it announced a series of capital restructuring measures to reduce debt.

Without specifically referring to Panama, Fernandez said that communities need to be convinced they will benefit from mining.

On Monday, the US and its thirteen allies announced a critical minerals partnership to only support projects that follow high environmental, social and governance standards, Fernandez said.

But he said the initiative is not an attempt to force developing countries to choose one country over the other, but to provide alternative.

Currently over 90% of the world’s critical mineral supply chain is dominated by China, and western countries have expressed the need to diversify the supply chain in critical metals.

(By Divya Rajagopal; Editing by Denny Thomas and Marguerita Choy)

First Quantum expects to ship trapped Panama copper within weeks

Bloomberg News | March 5, 2024 |

Punta Rincón. Credit: Autoridad Marítima de Panamá

First Quantum Minerals Ltd. expects to secure authorization from Panamanian officials in the coming weeks to sell more than 120,000 metric tons of copper concentrate stored near a port that served its flagship mine.


Unleashing the stockpile of semi-processed metal could generate between $200 million and $300 million based on today’s copper prices. That would be a welcome boost to First Quantum’s balance sheet after the government ordered the closure of the Cobre Panama copper mine in November following fierce public protests. Releasing the copper cache would also bolster a tight global market for concentrate after a series of supply disruptions.

Authorities have acknowledged that the stockpile belongs to the company and can be sold, First Quantum chairman Robert Harding and local spokeswoman Maru Galvez said in a Monday interview at Bloomberg’s Toronto office.

The mine’s preservation and maintenance plan, which includes shipping out the concentrate, has been broadly approved by cabinet and is now being reviewed by the Commerce and Industry Ministry. There’s a time consideration, given the material starts to heat up and risks environmental issues. “It’s an administrative process essentially,” Galvez said.

Commerce and Industry Ministry representatives didn’t immediately respond to calls and messages seeking comment.

(By James Attwood and Jacob Lorinc)

First Quantum opens Panama mine for public visits in restart bid

Bloomberg News | March 5, 2024 |

Cobre Panamá worker. (Image by First Quantum Minerals).

First Quantum Minerals Ltd. is opening its Panamanian mine to daylong visits by members of the public to gain support for restarting the giant copper complex under the next government.


The Cobre Panama mine, which was ordered to close last year in the face of fierce public protests, has signed up about 1,000 people so far to tour the open pit and processing plants in a bid to convince Panamanians of the mine’s merits, chairman Robert Harding and local spokeswoman Maru Galvez said Monday in an interview.



While Harding is confident of restarting the country’s flagship mine, he said he understands there’s a battle for people’s hearts and minds in a country where mining is relatively new, the government is unpopular and misinformation is rife and effective. The firm sees the eight-hour tours — including the opportunity to speak with staff — as a way of rectifying past communications shortfalls at a time when scrutiny on environmental and social issues is growing. A virtual tour is also being prepared.

“We had a mine that worked for the people of Panama, so I’m confident that we will find a solution,” Harding said from Bloomberg’s Toronto offices.

First Quantum acknowledges it could have done a better job touting the mine’s role in generating jobs and revenue for Panama as well as its community and environmental initiatives. But the shutdown order was more a case of the mine being swept up in discontent toward the government and misinformation campaigns via social media, Galvez said.

One campaigner was Hollywood actor Leonardo DiCaprio, who in November reposted a video on his Instagram account calling for the mine to be shut. DiCaprio is also welcome to visit, said Harding. “We’d love for him to come.”

(By Jacob Lorinc and James Attwood)

Read More: Panama GDP growth expected to slow in 2024 on First Quantum mine closure, IMF says

Jiangxi Copper raises stake in First Quantum Minerals

This deal saw Jiangxi acquire 25.9 million shares in the Canadian company at C$11.10 apiece.

March 4, 2024

The latest deal will help First Quantum address financial implications caused by the forced closure of its flagship copper mine.

 Credit: TTstudio via Shutterstock.com.

China-based Jiangxi Copper has expanded its ownership in Canadian metals company First Quantum Minerals by acquiring an additional stake for C$287.5m ($212m), Bloomberg reported.

The deal saw Jiangxi acquire 25.9 million shares in the Canadian company at C$11.10 apiece.

It is part of First Quantum’s efforts to strengthen its financial position following the forced closure of its Cobre Panama mine.

The Panamanian Government’s order in November to shut down the mine prompted the company to seek ways to address the resultant challenges. Last month, First Quantum raised C$1.55bn through a bought deal offering.

This fundraising was a key component of the company’s refinancing strategy aimed at bolstering its balance sheet in the wake of the Cobre Panama mine’s closure.

Additional funds from the latest deal will further assist First Quantum in navigating the financial implications of the mine’s shutdown.

The Cobre Panama mine is a significant asset for First Quantum, and its closure has necessitated robust financial measures to ensure the company’s stability.

Jiangxi is the second-largest shareholder in First Quantum.

Last month, the Chinese company agreed to invest $500m in First Quantum, while First Quantum agreed to supply 50,000 tonnes of copper anode per year to Jiangxi from its Kansanshi mine in Zambia.

In the fourth quarter of 2023, First Quantum swung to a net loss attributable to shareholders of $1.45m, from a $1.17m profit in the same quarter of 2022.

Canada plans scrutiny of Chinese offtake deals, minister says at PDAC

Colin McClelland | March 6, 2024 |

Canadian Natural Resources Minister John Wilkinson says the government has been clear about foreign investing in critical minerals. Credit: Colin McClelland

The federal government says it’s considering how to handle offtake agreements that function as loans or investments by China in Canadian mining companies as it continues to clamp down on critical mineral transactions by the Asian giant.


First Quantum Minerals (TSX: FM) inked a $500-million deal last month to supply Jiangxi Copper from the Kansanshi mine in Zambia as the Vancouver-based miner strives to shore up finances after authorities shut its Cobre Panama mine in the Central American country.

“There are active conversations going on about how best to approach some of those kinds of issues,” Natural Resources Minister Jonathan Wilkinson told reporters in Toronto. “What you’re going to find increasingly moving forward is democratic countries around the world coming together to try to find pathways through which we actually are ensured of access of the minerals we’re going to need.”

The largest shareholder in First Quantum is Jiangxi Copper, but Wilkinson said the government won’t pursue investments that pre-date its critical minerals divestment strategy. It began in November 2022 by targeting three TSX-listed lithium companies. Ottawa hasn’t changed its stance on reviewing Chinese investments in Canadian critical mineral companies, he said, even as recent deals highlight continued interest from the mining and processing behemoth.

“We’ve been pretty clear that we are not interested in investment generally from state-owned enterprises,” Wilkinson said in reply to a question from The Northern Miner at the Prospectors and Developers Association of Canada annual conference in Toronto. “Certainly the ones that are raising significant flags would be those that actually require some kind of offtake agreements, those that require control – effectively controlling shareholders – or provide for significant board representation.”
Video above: Natural Resources Minister Jonathan Wilkinson announced $10.4 million in funding for seven mining projects under the Indigenous Natural Resource Partnerships Program on Wednesday in Toronto. Credit: Colin McClelland
Competing interests

The federal reviews must walk a line between competing interests. On one side are mining companies, especially at the junior level, who are facing what they believe is an unprecedented funding crunch from lack of stock markets investing in the industry and who turn to industrial power China for backing. On the other side is the rising trend of resource nationalism for security as countries in the West try to diminish China’s dominance in critical mineral mining and processing.

China’s Yintai said last month it would buy Osino Resources (TSXV: OSI; US-OTC: OSIIF) for C$368 million, Zijin Mining invested $97 million for 15% of Solaris Resources (TSX: SLS; US-OTC: SLSSF) in January and Vital Metals (ASX: VML) said in December that Shenghe Resources was buying stockpiles of rare earth elements mined at its Nechalacho project in the Northwest Territories.

Each of those deals might have some wiggle room under a review. Osino’s primary asset is the Twin Hills gold project in Namibia. Gold is not one of Canada’s 31 critical minerals. Solaris is digging for copper, a critical mineral, but 15% isn’t regarded as a controlling stake. Vital is an Australian company, so Ottawa doesn’t have direct recourse under Canada’s Investment Act, though it does have a say in permits for the project.

On Tuesday, Montreal-based SRG Mining (TSXV: SRG) said it’s cancelling a $12.5 million deal with China’s Carbon ONE New Energy Group to take a 19.4% stake in the graphite miner. It had said last week it would incorporate in Abu Dhabi while maintaining its Toronto listing.

“That was a helpful decision that they would essentially not re-domicile in order to accept Chinese investment,” Wilkinson said. “But certainly we will be looking at all transactions that involve Chinese state owned enterprises and those companies related to them.”

Chinese money can’t be solution for cash-strapped Canadian miners, minister says

Bloomberg News | March 5, 2024 | 

Canada’s Minister of Natural Resources Jonathan Wilkinson. (Image courtesy of Province of British Columbia.)

Chinese investment can’t be the solution for cash-strapped Canadian miners seeking financial backing, according to Canada’s natural resources minister.


“We need to be working to solve access to capital issues, but the answer cannot be investment from Chinese state-owned industries,” Natural Resources Minister Jonathan Wilkinson said Tuesday in an interview.

Chinese firms have been pursuing investments in Canadian junior mining companies in recent months, suggesting that tougher federal government rules imposed in 2022 haven’t dissuaded China from delving deeper into the country’s mining sector. Canada and its allies have been discouraging efforts by China to deepen ties in domestic critical minerals companies to counter the Asian nation’s industry dominance.

Transactions like Zijin Mining Group Co.’s plans to take a 15% stake in Vancouver-based copper company Solaris Resources Inc., announced in January, are testing Canada’s national security rules. China’s Yintai Gold, meanwhile, reached an agreement last month with Osino Resources Corp. to buy the Canadian gold explorer for C$368 million ($271 million).

Canada’s crackdown “may not have totally dissuaded the Chinese, but they will all have to go through a national security review,” Wilkinson said.

Junior graphite explorer SRG Mining Inc. backtracked on plans to secure C$17 million from a Chinese firm for a 19.4% stake in the Montreal-based company on Tuesday, a day after drawing criticism from Canada’s industry minister. Some miners have argued that the Canadian rules constrict access to capital when small mining firms are struggling to raise money.

(By Jacob Lorinc)

SRG Mining scraps $12.5m deal with China’s C-ONE as Canada tightens scrutiny

Reuters | March 5, 2024 |

Credit: SRG Mining

Graphite miner SRG Mining on Tuesday called off a C$16.9 million ($12.5 million) investment deal with China’s Carbon ONE New Energy Group (C-ONE) following heightened scrutiny from the Canadian government.


Shares of SRG Mining slumped 18.5% to C$0.44 in Toronto in afternoon trading.

“The conclusion to discontinue our transactions with C-ONE, though challenging, was made with a clear focus on safeguarding and advancing the interests of our shareholders and stakeholders,” SRG said.

C-ONE, an anode materials company backed by Chinese entrepreneur Yue Min, last year signed the C$16.9 million deal for a 19.4% stake in SRG. The graphite miner last week said it would incorporate in Abu Dhabi Global Markets while maintaining its Canadian stock market listing.

In 2022, the Canadian government proposed beefing up its foreign investment rules to give it power to block or unwind critical investments that pose a threat to national security.

China has invested C$21 billion in Canada’s mining industry between 1993 and 2023. In 2022, Canada had ordered Chinese companies to sell their stakes in three Toronto-listed lithium firms.

However, smaller mining firms, which produce lithium, nickel and other green energy metals, are worried that such scrutiny can limit their ability to raise funds.

($1 = 1.3569 Canadian dollar)

(By Vallari Srivastava; Editing by Sriraj Kalluvila)

Related: SRG Mining’s move to UAE would avoid national security review on Chinese investment in Canada

SolGold soars on $3.2bn investment, largest in Ecuador history

The Cascabel copper-gold project is one of the most ambitious mining developments in Ecuador. (Image: Alpala camp. Screenshot from SolGold corporate video 2017.)

Shares in Ecuador-focused SolGold (LON, TSX: SOLG) shot up more than 23% on Wednesday after the company announced a $3.2 billion investment from the country’s government in its flagship Cascabel copper-gold project in coming years.


The deal is the largest mining investment in Ecuador’s history, according to SolGold, and it is separate from the government’s already committed $311 million for the project, included in the current Investment Protection Agreement (IPA) for Cascabel.

The complementary IPA, inked at the at the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, highlights the scale and importance of the project, SolGold said in the statement.

“[This deal] not only reinforces the protections for our key investment in Ecuador but also symbolizes a deepening of our relationship with the Ecuadorian State,” chief executive Scot Caldwell said.

SolGold released in February a new pre-feasibility study (PFS) for Cascabel in which it managed to slash upfront costs. Pre-production capital used for initial mine development, first process plant module and infrastructure is now estimated at $1.55 billion, compared to $2.75 billion from the PFS issued in April 2022.

According to SolGold, the size of the entire resource indicates the mine’s potential to be a multi-generational asset, potentially one of the 20 largest copper-gold mines in South America. Mine construction is set to start in 2025.

Investors have been skeptical of SolGold management’s ability to deliver the project to its potential. The company’s share price has halved over the past year, while the miner has had to cut spending to stay afloat, prompting a strategic review of its assets.

SolGold’s shares were trading 23.07% higher in London mid-afternoon to 8.13p. Year-to-date, however, the stock is down more than 18%. The company’s current market capitalization is £243 million (about $310m).

Ecuador enters mining investment deals with Adventus and Atico

The agreement lays the groundwork for the progression of the Condor mining project.

March 6, 2024

Adventus will invest at least $100m (C$135.83m) in the Condor project, which includes $48m during the period 2024–38.

 Credit: Evgeny_V via Shutterstock.com.

Adventus Mining has reached an investment agreement (IA) with the Government of Ecuador for the development of the Condor mining project in south-eastern Ecuador.

This agreement lays the groundwork for the project’s progression and the negotiation of an Investment Protection Agreement (IPA), which will be crucial for future construction and operations if the project advances to that stage.

The IA represents a mutual commitment between Adventus and the Ecuadorian Government, through the Ministry of Production, Foreign Trade, Investment and Fisheries, to discuss the terms for a future IPA.

The expected IPA will detail the project’s scope, investment commitments, timelines and responsibilities, as well as the collaborative effort to secure all necessary approvals, licences and permits under Ecuadorian law and international standards.

As per the agreement, Adventus will invest at least $100m in the Condor project, which includes $52m of historical expenditure from 2010 to 2023 and a future investment of $48m for the period 2024–38.

The IA also accounts for any additional investments by Adventus during this period, which would be protected under the future IPA.

Platinum’s worst crisis in decades hits jobs in South Africa

Bloomberg News | March 6, 2024 

Stock Image

South Africa’s platinum producers are in crisis, as slumping metal prices force jobs cuts and erode profits.


The nation’s platinum sector — which accounts for about 70% of global output — has been a key export industry and generates jobs for hundreds of thousands of people in a country with one of the world’s highest unemployment rates.

Over the past two weeks, the four biggest producers — Sibanye Stillwater Ltd., Anglo American Platinum Ltd., Impala Platinum Holdings Ltd. and Northam Platinum Ltd. — have all released sobering earnings reports. Those results have helped us learn the following:

Jobs threat

The miners are trimming their workforces in South Africa – a politically sensitive move as the ruling African National Congress prepares for its sternest electoral test later this year.

Amplats, the platinum business of Anglo American Plc, has opened discussions with labor unions that may affect 3,700 jobs. Sibanye already cut 2,600 employees and contractors following similar consultations and Implats said it shed more than 1,000 jobs in the second half of last year.

Producers of platinum-group metals – used to curb emissions from gasoline and diesel vehicles – directly employed almost 182,000 people in 2023, according to the Minerals Council of South Africa.

Shrinking profits

Just two years ago, profits were at all-time highs as automaker demand pushed the price of rhodium and palladium – mined alongside platinum in South Africa – to record levels. Since the start of 2023, the price of palladium and rhodium has tumbled 44% and 63%, respectively, hit by inventory destocking and a subdued global economy.

While the decline of platinum has been more modest, the overall collapse in the PGMs has been devastating for miners’ bottom line: full-year profit at Amplats slumped 73%, while earnings at Implats and Northam for the six months through December plunged about 90%. Sibanye reported a $2 billion loss on Tuesday.

The shares of all four companies have lost more than half their value since the beginning of last year.

Cost cutting

The producers have reacted to what Northam chief executive officer Paul Dunne describes as the “worst crisis” in three decades by cutting costs and curbing spending.

Amplats is targeting savings of 5 billion rand ($261 million), while Implats plans to cut its expenditure by more than half a billion dollars over the next five years across its operations in Canada, Zimbabwe and South Africa. Sibanye and Implats are both hobbled by high-cost palladium assets in North America, where the firms have axed an expansion project and shortened the life of a mine.

The miners are bracing for a prolonged period of pain, with CEO Dunne expecting the “depressed pricing environment” to continue for as long as two years.
Output risks

By the end of 2023, as much as half of PGM production — excluding the Russian mines that are the world’s largest source of palladium — was unprofitable, according to estimates by Rene Hochreiter, an analyst at Noah Capital Markets in Johannesburg.

While that figure improves to about 15% when metals mined alongside the PGMs, such as chrome and copper, were factored in, the situation is set to deteriorate this year. Stripping out those byproducts, up to two-thirds of output will lose money, Hochreiter said.

While expansion projects have been set aside, the biggest platinum miners have yet to announce significant production cuts. They point out that the markets for the three main metals were all in deficit last year and retain confidence in the long-term prospects for their portfolios, despite the rise of electric vehicles.

However, that may change if the current squeeze continues, according to Heraeus Precious Metals. “If PGM prices do not recover, then shaft closures may become inevitable,” the Germany-based trader and refiner said last month.

(By William Clowes)

Read More: Platinum deficit in 2024 to be deeper than expected – WPIC

Sibanye falls to $2 billion loss, weighs capital raise if metal prices worsen

Reuters | March 5, 2024 | 

Credit: Sibanye Stillwater

Sibanye Stillwater on Tuesday reported a $2 billion annual loss and scrapped its final dividend, hurt by a slump in platinum group metal (PGM) prices that is forcing South African mining companies to restructure and cut jobs.


The hit on Sibanye’s income comes as the company advances projects including a lithium mine in Finland and plans to develop another one in the US.

CEO Neal Froneman said Sibanye may consider a capital raise if the lower metal prices persist for longer, but he ruled out a rights issue.

“We are going to raise additional capital, but this perception that it’s going to be a rights issue is completely wrong,” he said during a results call.

The precious metals producer swung to the loss last year from a $1.2 billion profit the previous year and record earnings in 2021, when prices for rhodium and palladium rallied.

It reported impairments of $2.6 billion at its US palladium mines, a nickel operation in France and a gold mine in South Africa due in part to the significant decline in metal prices and an uncertain outlook.

The loss comes after Sibanye embarked on a deal spree, buying battery metal assets in France, Finland, Australia and the US.

The fall in prices for PGMs, mostly used by automakers to curb toxic emissions, is forcing South African mining companies to restructure and cut jobs.

Froneman said in a statement that more restructuring might be required, especially at Sibanye’s US PGM operations and the Sandouville nickel refinery in France.

“We recognize however that if low commodity prices persist, earnings are going to remain under pressure and, with ongoing inflationary cost pressure, there may be further restructuring required,” Froneman said.

Sibanye’s peers Anglo American Platinum and Impala Platinum are also restructuring loss-making operations and cutting costs, a process which will cost thousands of jobs.

(By Nelson Banya and Felix Njini; Editing by Jason Neely, Jan Harvey and David Evans)

First Phosphate Corp. Receives Mining Research and Innovation Grant from Quebec Ministry of Natural Resources




Newsfile Corp.
Mon, March 4, 2024 



Saguenay, Quebec--(Newsfile Corp. - March 4, 2024) - First Phosphate Corp. (CSE: PHOS) (OTC: FRSPF) (FSE: KD0) ("First Phosphate" or the "Company") is pleased to have recently received a mining research and innovation grant from the Quebec Ministry of Natural Resources and Forestry ("MRNF").

The grant provides financial support to the Company in the way of $315,236 to continue mineralogical study on its apatite, ilmenite and magnetite concentrates. The project also includes the processing of the Company's mine tailings for re-use in the cement construction industry.

"We are grateful to the Quebec Ministry of Natural Resources and Forests for this funding as we continue to build strong relationships with Quebec-based government bodies and institutions," said Company CEO, John Passalacqua.

The Company's objective is to see the development of a lithium iron phosphate ("LFP") battery valley in the Saguenay-Lac-St-Jean region of Quebec, one which can service demand for LFP battery cathode active material across North America.

The company will have a table at the Canada Investment Forum at PDAC 2024 on Monday, March 4, 2024 from 12:00 EST until 17:00 EST (MTCC North Building, Room 105). Company CEO, John Passalacqua will hold a brief live presentation on the Company at 15:00 EST.

Research studies on Quebec igneous anorthosite can be found at: https://firstphosphate.com/phosphate-industry/quebecanorthosite

Details on First Phosphate's pilot plant for the purification of Quebec igneous anorthosite into purified phosphoric acid ("PPA") can be found at: https://firstphosphate.com/projects/ppa-production

Details on First Phosphate's assets in the Saguenay-Lac-St-Jean region of Quebec, can be found at: https://firstphosphate.com/projects/prized-assets

Details on First Phosphate's strategy for the creation of a fully integrated LFP battery supply chain in North America based on establishing an LFP battery valley in the Saguenay-Lac-St-Jean region of Quebec can be found at: https://firstphosphate.com/lfp-battery-strategy

The Company has also entered into a marketing agreement with NAI Interactive Ltd. ("NAI") for a total cash consideration of $37,500+HST, paid up front, for a twelve-month period commencing March 4th, 2024. NAI is a company headquartered in British Columbia, Canada and can be reached at 604-488-8878 or info@nai500.com. NAI does not currently hold any common shares in the Company and will not receive any options to purchase securities of the Company. NAI and the Company are unrelated and unaffiliated entities. Promotional activity will occur on NAI500.com.

About First Phosphate Corp.

First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the LFP battery industry. First Phosphate is committed to producing at high purity level, in responsible manner and with low anticipated carbon footprint. First Phosphate plans to vertically integrate from mine source directly into the supply chains of major North American LFP battery producers that require battery grade LFP cathode active material emanating from a consistent and secure supply source. First Phosphate holds over 1,500 sq. km of royalty-free district-scale land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada that it is actively developing. First Phosphate properties consist of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid of high concentrations of harmful elements.