BHP must stop funding legal action to halt Mariana dam claim, court rules

By Reuters

July 23, 2024

General view from above of a dam owned by Vale SA and BHP Billiton Ltd that burst, in Mariana, Brazil, November 10, 2015.

 REUTERS/Ricardo Moraes/File Photo 

LONDON, July 23 (Reuters) - BHP Group must stop funding legal action seeking to halt some Brazilian municipalities from bringing a multi-billion pound claim over one of Brazil's worst environmental disasters, London's High Court ruled on Tuesday.

More than 720,000 Brazilians, including around 50 municipalities, are suing BHP (BHP.AX), opens new tab over the 2015 collapse of the Mariana dam, which was owned and operated by its Samarco joint venture with Brazilian iron ore miner Vale (VALE3.SA), opens new tab.

The dam collapse caused a wave of toxic tailings that killed 19 people, left hundreds homeless, flooded forests and polluted the entire length of the Doce River.

The claimants in June filed an injunction against BHP after Brazilian Mining Association IBRAM filed a motion in Brazil's Supreme Court seeking to stop the municipalities from continuing the London case on the grounds that doing so represented a threat to Brazil's sovereignty.


BHP, the world's biggest miner by market value, is a member of IBRAM and funded it to make the claim at the Supreme Court.

BHP, which has agreed to the order, did not immediately respond to a request for comment.

BHP earlier this month reached a deal with Vale to split equally the cost of any damages related to proceedings in Britain, for which it will continue to be the defendant.

In March, a new claim was filed against Vale and the Dutch subsidiary of Samarco in the Netherlands in which BHP is not a defendant.

The London lawsuit is separate from litigation in Brazil, which mostly addresses claims from local governments and not individuals.

The lawsuit, one of the largest in English legal history, began in 2018. The first trial of key legal issues is due to begin in October.

Vale, BHP and Samarco in June presented Brazilian authorities with a $26.09 billion offer to settle reparations for the dam collapse after Brazil rejected a previous offer.

BHP, which denies liability, has referred to reparation and compensation programmes implemented by the Renova Foundation, a redress scheme established in 2016 by Samarco and its shareholders, which has funded more than $6 billion of rehousing and rehabilitation for those affected by the disaster.

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Reporting by Clara Denina and Sam Tobin Editing by Christina Fincher

Rio Tinto class action over Bougainville mine damage set for October hearing
By Reuters

July 23, 2024

The Rio Tinto logo is displayed above the global mining group's booth at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada March 7, 2023. 

/Chris Helgren/File Photo 

MELBOURNE, July 23 (Reuters) - The first hearing date has been set in a class action against miner Rio Tinto (RIO.AX), opens new tab for historical environmental and social damage caused by the Bougainville copper mine in Papua New Guinea that it operated in the 1970s and 1980s, lawyers said.

The first court hearing will take place in Papua New Guinea's capital Port Moresby on Oct. 10, according to lawyers representing the claimants.

"We are committed to advancing the action against Rio Tinto and BCL on behalf of the class," said Matthew Mennilli, partner at Sydney-based law firm Morris Mennilli in a statement. "We hope to empower claimants after their voices were unheard and ignored for so many years."

BCL, or Bougainville Copper Ltd (BOC.AX), opens new tab, ran the Panguna mine in which Rio Tinto held a majority stake. The mine ceased operations in 1989 when related disputes spiralled into a civil war lasting for a decade.

A Rio Tinto spokesperson confirmed that it had been served with a class action and that it was reviewing the details of the claim. "As this is an ongoing legal matter, we are unable to comment further at this time," he said.

Rio Tinto in 2016 transferred its 53.8% stake in BCL to the Autonomous Bougainville government and the Papua New Guinea government for no amount.

The miner in 2022 began work to assess the mine's legacy, hiring an independent group to assess the impact and consult on next steps. It is due to report back to Rio this year.
Class actions are increasingly being used by affected populations as a way to access higher compensation from resources companies for damaging events.

More than 720,000 Brazilians, including 46 local governments, are suing BHP (BHP.AX), opens new tab and Vale (VALE3.SA), opens new tab in a potential 36 billion pound ($46.5 billion) lawsuit over the 2015 collapse of the Mariana dam.

The class action against Rio Tinto is much smaller. It is made up of a majority of villagers in the affected region of Bougainville. A further 1,500 people have joined the class action since it was filed with 3,000 claimants in May.

They are seeking compensation for "historical mismanagement of the Panguna Copper Mine, which caused large scale environmental and social harm," according to the statement.

($1 = 0.7738 pounds)

Reporting by Melanie Burton; Editing by Jamie Freed

 

Major Mining Company to Acquire Interest in Fremont Gold as Part of $2.0M Private Placement

Mr. Dennis Moore reports:

Vancouver, British Columbia--(Newsfile Corp. - July 24, 2024) - Fremont Gold Ltd. (TSXV: FRE) (FSE: FR20) (OTCQB: FRERF) ("Fremont" or the "Company") is pleased to announce the closing of its previously announced and over-subscribed, non-brokered private placement (the "Private Placement") consisting of a total of 20,150,000 units (the "Units") at a price of $0.10 per unit for gross proceeds of $2,015,000.

Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of $0.17 per share for a period of 18 months following closing of the Private Placement.

Teck Resources Limited ("Teck") has acquired 4,000,000 Units as part of the Private Placement resulting in a 6.89% ownership of the Company. The Units acquired by Teck include 2,000,000 warrants, which if exercised would increase Teck's ownership to a maximum of 9.99% on a partially diluted basis if other Fremont dilutive securities remained unexercised at the time.

The Company intends to use the net proceeds of the Private Placement for ongoing exploration work at the Company's Vardenis and Urasar projects located in central and northern Armenia, respectively, and general working capital purposes. Specifically, the Company expects to undertake a minimum 22 line km IP survey at the Vardenis project and a maiden drill campaign at the Urasar project, among other exploration activities this field season.

Dennis Moore, Fremont's President and CEO, comments, "We are very pleased to welcome Teck as an investor, and believe their participation is an important endorsement of our two Armenian properties, our management team, and the opportunities that lie ahead. We embrace Teck as a significant shareholder going forward on our road to discovery in this incredibly endowed and welcoming jurisdiction."

Mr. Moore continues, "We are also delighted that there has been considerable demand and genuine interest in the Company's recent offering. This is also a validation of our team's hard work, persistence and a recognition of the underlying value of Fremont shares."

The securities issued pursuant to the Private Placement will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements.

All securities issued in connection with the Private Placement are subject to a statutory hold period expiring on November 24, 2024 in accordance with applicable securities legislation and the policies of the TSX Venture Exchange ("TSXV").

The TSXV's final acceptance of the Private Placement is conditional upon the Company satisfying the filing requirements as outlined in TSXV Policy 4.1, 'Private Placements'. The Company paid a total of $32,250 in finders' fees in connection with the Private Placement, as permitted by applicable securities laws and the rules of the TSXV. The finders' fees comprise a cash commission equal to 6% of proceeds raised by the following entities and individual: Haywood Securities Inc., Ventum Financial Corp., Research Capital Corporation and Joel Sutherland.

Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") the Company advises that certain directors and officers of the Company participated in the Private Placement. The Company will be relying on the exemptions from the formal valuation requirements contained in section 5.5(b) of MI 61-101 and the minority shareholder approval requirements contained in section 5.7(1) (a) of MI 61-101, as the Company is not listed on specified markets and the fair market value of the insider participation in the Private Placement does not exceed 25% of the Company's market capitalization, as determined in accordance with MI 61-101.

Early Warning Report

Dennis Moore of Lisbon, Portugal, acquired 500,000 Units pursuant to the Private Placement. Mr. Moore acquired the 500,000 Units at a price of $0.10 per Unit for the total purchase price of $50,000 pursuant to the Private Placement. Immediately prior to completion of the Private Placement, Mr. Moore owned and/or had control over an aggregate of 5,958,268 common shares, representing approximately 15.71% of the issued and outstanding common shares of the Company on an undiluted basis. Following completion of the Private Placement, Mr. Moore now owns and/or has control over an aggregate of 6,458,268 common shares, representing approximately 11.12% of the issued and outstanding common shares of the Company on an undiluted basis, resulting in a decrease of approximately 4.59% of the Company's issued and outstanding common shares.

In addition, Mr. Moore also owns and/or has control over 1,450,000 common share purchase warrants and 815,000 stock options. If Mr. Moore exercises all of his warrants and stock options, he would then own and/or have control over, 8,723,268 common shares, representing approximately 14.66% of the issued and outstanding common shares of the Company on a partially diluted basis, assuming that no further common shares of the Company have been issued.

Mr. Moore acquired the securities for investment purposes. Mr. Moore may, depending on market and other conditions, increase or decrease his beneficial ownership of the Company's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.

The disclosure respecting Mr. Moore's shareholdings of the Company contained in this press release is made pursuant to Multilateral Instrument 62-104 - Take-Over Bids and Issuer Bids and a report respecting the above acquisition will be filed with the applicable securities commissions using the System for Electronic Document Analysis and Retrieval + (SEDAR+) and will be available for viewing at www.sedarplus.com.

About Fremont Gold

Fremont's mine-finding management team has assembled a portfolio of high-quality copper-gold projects within the central Tethyan Belt of Armenia with the intention of making tier one size discoveries. These projects include the Vardenis copper-gold property located in central Armenia and the Urasar District gold project in northern Armenia. Other opportunities in the belt are being evaluated.

On behalf of the Board of Directors,

Dennis Moore

President and CEO, interim Chairman

Telephone: +351 9250 62196
Email: dennis@fremontgold.net
www.fremontgold.net
https://twitter.com/GoldFremont
https://www.linkedin.com/company/fremont-gold/

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains forward-looking statements. All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding the use of proceeds from the Private Placement, the drill program on the Vardenis project and work on the Urasar project, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements including in respect of planned exploration activity at each of Vardenis and Urasar. Important factors that could cause actual results to differ materially from the Company's expectations including the risks detailed from time to time in the filings made by the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will publicly update or revise any of the included forward-looking statements only as expressly required by Canadian securities law. 

Botswana touts 24% stake in new mining companies for citizens

Bloomberg News | July 23, 2024 | 

Lucara Diamond’s Karowe diamond mine in Botswana. Image from Lucara Diamond.

Botswana’s government will encourage new mining ventures to offer citizens the right to buy as much as 24% of projects in which the state hasn’t exercised its right to purchase a stake.


The proposals are contained in amendments to the southern African nation’s Mines and Minerals Act that will be debated by lawmakers on Wednesday. Because of the ruling Botswana Democratic Party’s numerical dominance in parliament, bills tabled by the government are rarely changed or rejected.

Under current legislation, the government is entitled to offer to buy as much as 15% equity in any new mining entity. The amendment seeks to encourage, rather than compel, new ventures to invite citizens to purchase a shareholding, according to the bill.

“Where government does not exercise its option of acquiring 15% working interest upon the granting of a mining licence, the holder shall use his best endeavour to dispose the 24% to citizens or citizen-owned companies,” the draft legislation shows.

Botswana, the world’s largest producer of rough diamonds by value, rarely changes its mining legislation and frequently ranks as Africa’s best country for minerals investment. That’s largely because of the nation’s policy predictability in an industry that is the nation’s economic mainstay, making up about a third of budget revenue and the bulk of foreign-currency receipts.

Resource nationalism is strengthening across the world as developing countries seek a greater share of the profits from their commodities, while addressing historic inequities in the wealth flows from mining. In recent years, Botswana citizens have brought increased pressure to bear on the government to provide them with direct equity access to the mining industry.

The proposed changes to Botswana’s legislation date as far back as 2016, when the government proposed that the 15% equity entitlement be increased and that in cases where the state opted not to exercise its right, citizens be invited to do so.

Other proposed amendments include requiring mining companies to process their minerals within the country “as far as is economically feasible” and to “the satisfaction of the minister.” Minerals-license holders will also be required to give preference to local citizens and their companies in procurement.

While the Botswana government rarely exercises its 15% equity options, it owns shareholdings of that magnitude in diamond producer De Beers, Morupule Coal Mine and salt and soda ash producer Botswana Ash Ltd.

(By Mbongeni Mguni)

Kumba Iron Ore sees new South Africa government open to rail reform

The firm wants “policy reform to enable greater private sector participation,” 

Bloomberg News | July 23, 2024 | 

Credit: Transnet SOC Ltd.

Anglo American Plc’s South African iron ore unit said the country’s new government is committed to grappling with logistics bottlenecks that are limiting exports, while acknowledging the problem could take several years to resolve.


“One thing I have learnt about the new government is that they are open to collaboration,” Kumba Iron Ore Ltd. chief executive officer Mpumi Zikalala told reporters on Tuesday. The firm last year announced it would slow production at its mines, blaming constraints on the state rail and port infrastructure used to transport the steelmaking material.

The African National Congress lost its parliamentary majority two months ago and has formed a coalition with rival parties including the pro-business Democratic Alliance, which won the second-most seats in the election. President Cyril Ramaphosa has said that economic growth is the administration’s overriding priority.

Despite encouraging early signs, Zikalala isn’t expecting a “full turnaround” of the infrastructure run by state-owned Transnet SOC Ltd. for at least three years. An independent review of the entire Transnet network should be completed during this quarter, she said. Kumba moves iron ore along a 535-mile (861-kilometer) railway to a port north of Cape Town.

Kumba said profit in the first half of the year fell 26% to 7.1 billion rand ($389 million), compared with the same period in 2023, due to lower iron ore prices and sales volumes. It has 8.2 million tons of iron ore stockpiled, with 90% stored at the mine sites – representing a rise of 1.1 million tons in the past six months. This is “higher than we would ideally like,” Zikalala said.

The Anglo subsidiary was already working with the previous administration on ways to improve the crucial infrastructure. While the immediate ambition is to collaborate with the authorities to prevent further deterioration of Transnet’s performance, the company ultimately would like to see the port and rail assets concessioned to new operators.

The firm wants “policy reform to enable greater private sector participation,” Zikalala said.

(By William Clowes)

Vietnam arrests former deputy environment minister over rare earth mining violations

Reuters | July 23, 2024 | 

A sample of a clay containing rare earths. (Image by Patrick Mansell, courtesy of Penn State University).

Police in Vietnam have arrested a former environment deputy minister and four other senior officials accused of violating mining regulations, following a wider investigation into wrongdoings at a rare earth company in northern Vietnam.


Nguyen Linh Ngoc, who was the deputy minister of Natural Resources and Environment in 2010-2018, was accused of “deliberate violations of state economic management regulations, causing serious consequences”, the police-run Ministry of Public Security said in a statement.

Other former senior officials of the ministry’s mining department were arrested on the same charges, the ministry said, without giving further details.

Those arrested were not available to comment and calls to the environment ministry went unanswered.

Police last year arrested several senior officials, including the chairman from rare earth company Thai Duong Group, which operates a mine in the northern Vietnamese province of Yen Bai, for allegedly forging value added tax receipts in rare earths trading.

The Ministry of Public Security said it was carrying out further investigations to retrieve state assets that had been lost.

Vietnam has the second-largest deposits of the critical minerals – used in making electric cars and wind turbines – after China, according to United States Geological Survey estimates.

The authorities have also intensified a clampdown on illegal rare earth mining from neglected or abandoned pits in recently.

(By Phuong Nguyen; Editing by Michael Perry)

Toronto sees ‘win’ in first new foreign miner listing since 2022

Bloomberg News | July 24, 2024 |

Toronto Stock Exchange entrance. ( Stock Image.)

Paladin Energy Ltd.’s arrival in Canada marks the first time since 2022 that a large foreign mining company will list its shares on the Toronto Stock Exchange, which has seen new corporate listings slow to a crawl.


Paladin, a Western Australia-based uranium producer, struck a C$1.14 billion ($830 million) deal to acquire Fission Uranium Corp. in June, a deal it expects to close in August. Paladin’s planned Toronto listing is part of an effort to secure approval for the transaction and also gain access to a larger shareholder base.

The Toronto market has seen an historic dry spell of IPOs and corporate listings in recent years as investors have preferred to invest in tech names to the detriment of old economy sectors like oil and gas, mining and banking. Those industries make up nearly two-thirds of the TSX, which is owned by TMX Group Ltd.

The last large foreign mining company to list on the TSX was Chile’s Aclara Resources Inc, which did an initial public offering in Dec. 2022. Before that, Australia’s Newcrest Mining Ltd. dual listed from the Australian Securities Exchange in Oct. 2020.

“It’s a really big win for us to be able to add this company to our listings,” said Dean McPherson, global head of mining and business development for TSX and TSX-Venture.

Toronto is home to dozens of larger miners including Nutrien Ltd. and Barrick Gold Corp. The materials sector makes up 12% of the S&P/TSX Composite Index.

McPherson traveled to Perth to pitch Paladin on the strengths of the TSX’s access to capital for miners. He plans another trip to Australia in October to drum up interest from other Aussie miners.

“There are some other significant energy stories out there, particularly in the uranium space that are not yet listed,” McPherson said. US miners and other ASX-listed companies should follow Paladin to Toronto, he said: “We’re gonna make that argument.”

McPherson said he had also pitched Kazakhstan’s state-owned uranium miner Kazatomprom on pursuing a listing in Toronto. The firm, which trades in Almaty and London, did not reply to a request for comment in time for publication.


Paladin CEO Ian Purdy said the Toronto listing will give shareholders an option beyond Cameco Corp., the world’s largest publicly traded uranium producer. His company has production in Namibia as well as a potential growth project through the Fission deal.

“We think there’s an opportunity to provide an option to Cameco,” Purdy said in an interview. “Who else is there in Canada that you can invest in that’s got production and growth? We’d like to be the second option and the TSX will give us access to all of those retail shareholders.”

Paladin’s base of institutional shareholders has doubled since the company began producing the nuclear fuel in Namibia, he said. Purdy expects growth from the Fission deal as well as the expanded shareholder base in Toronto to send his firm’s A$3.6 billion ($2.4 billion) market capitalization to over $5 billion.

Indeed, Paladin’s listing would mark just the second foreign company to list on either the TSX or TSX-Venture Exchange this year, down sharply from the 14 new listings in 2023 and 24 in 2022. Australia’s AuMega Metals Ltd., a small-cap, dual listed on the TSX-Venture in June.

McPherson said the Paladin listing, combined with an uptick in financing activity by mining and metals companies, is helping him pitch other companies on listing in Toronto. “It’s good to see the market making a rebound,” McPherson said.

(By Geoffrey Morgan)

New Gold reports fatality at Rainy River mine in Canada

Reuters | July 24, 2024 |

Rainy River has been in operation since 2017. (Image courtesy of New Gold.)

Canadian miner New Gold said on Wednesday an employee at the Rainy River mine had died while operating a piece of equipment in an open pit.


The company has suspended operations at the mine, and is working with the local authorities to investigate the incident.


The Rainy River mine is located in northwestern Ontario in Canada.

(By Vallari Srivastava; Editing by Devika Syamnath)

Chile’s lower house of Congress asks Boric to void Codelco-SQM deal

Reuters | July 24, 2024 | 

Chilean President Gabriel Boric. (Image courtesy of Chile’s government.)

Chile’s lower house of Congress approved a resolution asking President Gabriel Boric to annul an agreement between state copper company Codelco and Chilean miner SQM that would give Codelco a prominent role in the lithium industry.


The motion, passed late on Tuesday, was led by the Party for Democracy (PPD), part of the ruling coalition, and approved with 41 votes in favor, 15 against and 10 abstentions.

The partnership between Codelco and SQM is a major component of Boric’s plan to boost the state role in Chile’s production of lithium, a metal used in electric vehicle batteries.

The government-mandated deal would extend SQM’s contract to extract lithium in the prized Atacama salt flat through 2060, while giving Codelco a more than 50% stake in the project.

The tie-up sparked criticism from some lawmakers and industry experts, who said the SQM contract in the Salar de Atacama, set to expire in 2030, should have been opened to a bidding process.

The resolution signed by lawmakers calls for canceling the deal so that the process can “be done through a national and international public tender and not in a direct deal.”

The Mining Ministry and Codelco did not immediately respond to requests for comment. Boric has been supportive of the partnership, which the companies aim to finalize early next year.

Codelco chairman Maximo Pacheco has repeatedly defended the joint venture, saying the direct deal with SQM ensures a consistent flow of funds to the Chilean state, with the miner turning over 70% of its operating margin through 2030, and 85% through 2060.

“There are clear advantages that lead to the conclusion that the direct negotiation met its goals,” he told Senate lawmakers in a hearing last month.

Chile is the world’s second-biggest producer of lithium, with output from SQM and Albemarle.

(By Fabian Cambero and Daina Beth Solomon; Editing by Bill Berkrot)

AUSTRALIA

Fortescue to step up energy spending despite job cuts

Reuters | July 24, 2024 |

Andrew Forrest, Australian billionaire and founder of Fortescue. (Credit: Fortescue Metals Group)

Australia’s Fortescue said on Thursday it will increase spending on its energy division to advance several new green hydrogen projects next year, disappointing analysts who had expected a company restructure to lower its capital outlay.


The world’s fourth-largest iron ore miner has brought its metals and green energy businesses back together after it split them into separate divisions a year ago amid an exodus of senior management that cast doubt on whether the green unit was on track deliver against stretch targets.

Last week, Fortescue announced it would shed 4.5% of its global workforce and said it was unlikely to meet 2030 targets for green hydrogen production. The cuts also come as the price of iron ore, Fortescue’s main profit driver, is forecast to fall back below $100 a tonne.

Fortescue cuts 700 jobs, slows down green hydrogen plans

Analysts said that suggested Fortescue was slowing down the speed of its hydrogen development but on Thursday, it reaffirmed its commitment to the sector.

Its focus will initially be on four projects in Australia, the United States, Norway and Brazil with additional projects in Morocco, Oman, Egypt and Jordan to follow.

Fortescue still plans to boost capital expenditures at its energy division to $500 million, up from initial plans to spend $300 million, and its net operating expenditure to around $700 million next year, up from as much as $500 million anticipated in 2024.

“Good operational performance but market might be marginally disappointed by still high FMG Energy spend in FY25,” analysts at Citi said in a report.

Analysts also flagged a jump in decarbonization spending to $700 million-$900 million for fiscal 2025 from $300 million-$500 million this year as the miner seeks to meet aggressive net-zero targets by 2030.

Shares in Fortescue fell 2.7%, outpacing smaller losses among other Australian miners.

Fortescue plans to raise its focus on producing green iron, or iron produced with a lower carbon footprint, CEO Dino Otranto told a news briefing from China where he has been talking with potential partners for joint projects.

“Pivoting to producing green iron metal is the next step for us, and we see a massive potential in green iron industry out of Australia, supplying China,” he said.

Fortescue plans to produce green iron from its Christmas Creek operations before the end of next year.

The miner forecast higher iron ore shipments for the fiscal year ending in June 2025 and said for the fourth quarter of 2024 shipments of the steel-making material rose 24% from the third quarter to a quarterly record of 53.7 million metric tons.

It now expects to ship between 190 million tons and 200 million tons of iron ore in fiscal year 2025, up from 191.6 million tons shipped in fiscal year 2024.

(By Ayushman Ojha and Melanie Burton; Editing by Devika Syamnath, Alan Barona and Christian Schmollinger)