European Steel Market Faces Further Consolidation

By Metal Miner - Dec 10, 2024

ThyssenKrupp Steel plans to cut up to 11,000 jobs and reduce production capacity by 23% amidst a challenging European steel market.

The company cites overcapacity, increasing cheap imports from Asia, and the need for improved efficiency as reasons for the drastic measures.

The planned closure of the Kreuztal-Eichen site and potential sale of the HKM plant are part of the company's restructuring efforts.


ThyssenKrupp Steel (TKS) recently announced plans to cut up to 11,000 positions. In a blow to the struggling EU steel market, the German steelmaker stated it would also reduce rolled production by an average 23%.

“This is the company’s response to the further consolidation of fundamental and structural changes in the European steel market and in key customer and target markets,” the steelmaker said in a November 25 announcement. “Increasingly, overcapacity and the resulting rise in cheap imports, particularly from Asia, are placing a considerable strain on competitiveness,” the firm added.
The Move Could Affect 40% of the Firm’s Total Employees

The employment reduction plan foresees 5,000 job cuts via production and administration adjustments by 2030, with an additional 6,000 jobs transferring to either external service providers or shedding through the sale of various businesses. The projected job losses represent about 40% of ThyssenKrupp’s 27,000 employees.

The firm also pointed to structural changes within the company, stating that “In addition, urgent measures are needed to improve TKS’ own productivity and operating efficiency, and to achieve a competitive cost level.” Representatives added that “The key issues paper will be fleshed out in the coming weeks in dialog with the supervisory bodies and employee representatives.”

According to the latest reports, both parent group ThyssenKrupp AG and Czech energy company EP Group, the latter of which holds a 20% stake in TKS, support the concept.
Steel Market to Brace for Production Cuts

TKS also noted that it plans to reduce its annual production capacity from the current 11.5 million metric tons per year to a future target dispatch level of 8.7-9 million metric tons. Measures to this end include the planned closure of the Kreuztal-Eichen site, about 120 kilometers south of TKS’ main production site at Duisburg.

Kreuztal-Eichen can roll up to 1.4 million metric tons of hot rolled medium-wide strips and specialty steel as well strips and plates in bespoke sizes and surfaces per annum. Products from the site have applications in the automotive, construction and industrial machinery sectors.

TKS also plans to sell its shares of the Hüttenwerke Krupp Mannesmann plant, also located in Duisburg. The HKM plant is a three-way joint venture between TKS, compatriot steelmaker Salzgitter and French tubes producer Vallourec, with holdings of 50%, 30% and 20%, respectively. “If a sale is not possible, TKS will hold talks with the other shareholders about mutually acceptable closure scenario,” the company stated.

According to information on the company’s website, HKM can produce up to 6 million metric tons of crude steel per year via two blast furnaces and two basic oxygen converters. The site then casts the molten steel into commercial slabs and round billet. It also produces commercial pig iron for sale on the global steel market.
Just One of Several Major Market Changes Before 2025

One industry watcher was unperturbed by TKS’ announced plans, saying that it “makes 100% sense.” TKS had also warned of such an event back in October, citing poor market conditions as the reason for the planned deep cuts.

Offer prices for hot rolled coil in northern Europe in mid-November were steady month on month at €600 ($630) per metric ton EXW, though they are still down 25% from €800 ($840) at the start of 2024. Whilst market sources have noted improved interest by end users and stockists to hedge for an expected upswing in economic activity in 2025, one trader felt that “it was too little, too late” for TKS.

Further West in Europe, the owner of UK automaker Vauxhall announced plans to close its van factory in Luton and combine electric van production with its other UK plant in Ellesmere Port.

The announcement puts up to 1,000 jobs at risk. Netherlands-headquartered Stellantis, which owns auto brands Citroen, Peugeot and Fiat, cited UK rules that require electric vans to make up 10% of sales in 2024 as the reason behind the planned closure. Luton is in Bedfordshire, about 30 miles north of London, whilst Ellesmere Port is in Cheshire and about 10 miles south of Liverpool.

By Christopher Rivituso

Biden plans to finally kill Nippon Steel bid for US Steel

Bloomberg News | December 10, 2024 | 

US President Joe Biden. (Image by Gage Skidmore, Flickr.)

President Joe Biden plans to formally block the $14.1 billion sale of United States Steel Corp. to Nippon Steel Corp. on national security grounds once the deal is referred back to him later this month, people familiar with the matter said.


The Committee on Foreign Investment in the United States panel, which has been reviewing the proposed takeover for much of this year, must refer its decision to Biden by Dec. 22 or 23, said the people, who asked to not to be identified discussing a confidential process.

It’s not clear exactly what the CFIUS review will say. However, any referral to the president suggests at least one member of the panel sees the deal posing a risk. Nippon Steel and US Steel are poised to pursue litigation over the process if Biden decides to block the merger, some of the people said.

The White House and Treasury Department declined to comment. “This transaction should be approved on its merits,” US Steel spokeswoman Amanda Malkowski said. Shares of the company were halted for volatility after falling 8.8% in New York.

“It is inappropriate that politics continue to outweigh true national security interests — especially with the indispensable alliance between the US and Japan as the important foundation,” Nippon Steel said in a statement. “Nippon Steel still has confidence in the justice and fairness of America and its legal system, and — if necessary — will work with US Steel to consider and take all available measures to reach a fair conclusion.”

The fate of the once-fabled US steelmaker has become a hot political issue since the company reached an agreement to be taken over by its Japanese suitor almost a year ago. US Steel has said the deal represents a lifeline and warned it may move its headquarters out of Pennsylvania and shutter some operations if the merger collapses.

Biden — born in US Steel’s home state of Pennsylvania — has long signaled opposition to the sale, and has said the company would remain domestically owned. At the same time, he has stopped short of a pledge to kill the deal, while President-Elect Donald Trump has promised repeatedly to block it.

The CFIUS process was extended in September with a procedural maneuver. That pushed the referral deadline to this month and raised questions about whether the deal might proceed after the election, even as Biden dug in. “I haven’t changed my mind,” he said Sept. 27.

The powerful United Steelworkers union has also opposed the deal. Vice President Kamala Harris echoed Biden’s stance during her campaign as the Democratic nominee in the presidential election.

It’s unusual for CFIUS to reject acquisitions by entities based in a friendly nation such as Japan.

The exact timing of any announcement from Biden is unclear. The president has 15 days from the referral to announce a decision. Another extension to the CFIUS process — which would punt a decision to the next administration — isn’t expected, some of the people said.

(By Josh Wingrove and Joe Deaux)

Nippon Steel slams ‘inappropriate’ politics in US deal


By AFP
December 10, 2024

The deal worth $14.9 billion including debts is being reviewed in Washington - Copyright AFP Richard A. Brooks

Kyoko HASEGAWA

Nippon Steel on Wednesday slammed the “inappropriate” role of politics after Bloomberg News reported that President Joe Biden would block its planned takeover of US Steel.

The deal worth $14.9 billion including debts is being reviewed by a body that audits foreign takeovers of US firms, helmed by Treasury Secretary Janet Yellen.

Bloomberg cited people close to the matter as saying Biden planned to block the sale on national security grounds when the audit is finished later this month.

“It is inappropriate that politics continue to outweigh true national security interests — especially with the indispensable alliance between the US and Japan as the important foundation,” a Nippon Steel statement said.

“We have engaged in good faith with all parties to underscore how the transaction will bolster American economic and national security by countering the threats posed by China,” it added.

“Nippon Steel still has confidence in the justice and fairness of America and its legal system, and — if necessary — will work with US Steel to consider and take all available measures to reach a fair conclusion.”

Embattled US Steel argues that it needs the Nippon deal to ensure sufficient investment in its Mon Valley plants in Pennsylvania, which it says it may have to shutter if the sale is blocked.

But Biden has previously expressed opposition to the takeover, which President-elect Donald Trump — who will be inaugurated on January 20 — has also said he would block.

“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote on his Truth Social platform earlier in December.

“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening.”

In reaction to the Bloomberg report, White House spokesperson Robyn Patterson said Biden would wait and see what the ongoing review of the deal by the Committee on Foreign Investment in the United States (CFIUS) yields.

“The president’s position since the beginning is that it is vital for US steel to be domestically owned and operated,” Patterson said.

“We have not received any CFIUS recommendation. The CFIUS process was and remains ongoing.”

US Steel shares closed down 9.7 percent Tuesday on Wall Street following the report. Nippon was down 0.1 percent in Tokyo on Wednesday.

Nippon Steel makes final push to win over US workers

Bloomberg News | December 9, 2024 | 

The U.S. Steel pig iron caster at the Gary Works, Ind. The Nippon deal faces scrutiny. Credit: U.S. Steel

Nippon Steel Corp. clarified its spending plans at US mills owned by United States Steel Corp. as part of last-ditch efforts to win over workers and politicians for its bid to buy the Pittsburgh-based steelmaker.


After meeting with United Steelworkers leaders, the Japanese firm released a letter to US Steel staff on Monday. In it, Nippon Steel said it made new commitments with regards to where and when a previously announced $1.4 billion capital expenditure commitment would be spent. The figure doesn’t include maintenance or depreciation, Nippon said.

The latest letter indicates there had been at least some interaction between the parties in recent weeks, with Nippon Steel saying the USW asked for further details about its capital expenditure plans. It’s unclear that this letter will change USW leadership’s long-held official stance of opposing the deal, but it does suggest the Japanese buyer is racing to do anything possible to get approval from the influential union before a federal review is concluded on whether to approve the $14.1 billion takeover.

“During our recent discussions with the USW leadership, we listened carefully to the USW’s requests for further details on our future plans,” Nippon Steel said, adding that after those talks it sent an additional commitment letter to USW President David McCall on Dec. 2 “addressing all the concerns raised.”

The Japanese steelmaker said it released the letter after “constructive dialogue” with Pennsylvania Governor Josh Shapiro and others, signaling that the Democrat governor — who hasn’t taken a public position on acquisition — is involved in ongoing talks. Collapse of the deal would renew questions about the future of steelmaking in Pennsylvania, where the political outcry has been concentrated.

“While the final decision on this proposed deal will ultimately be made by the White House alone, the governor will continue to be actively engaged in this process,” a spokesman for Shapiro’s office said Monday in a message to Bloomberg.

Nippon Steel’s letter also makes a previously announced $1.3 billion in additional capital expenditures legally binding. That money had been promised after an arbitration meeting. Nippon Steel is seeking to allay concerns over job security at plants that use traditional blast-furnace production from iron ore as part of its pending transaction.

McCall said the letter “demonstrates its increasing desperation to repackage empty, unenforceable promises,” according to a statement to Bloomberg. “This communication, like those that came before it, remains riddled with the same exceptions and conditions as all its previous so-called commitments, allowing Nippon to back out or shift course for no other reason than changing business plans.”

Two sources familiar with the matter said Shapiro brokered the meeting between Nippon Steel vice president Takahiro Mori and McCall, who had not met in person since the summer. The three of them met in Pittsburgh the Tuesday before the US Thanksgiving holiday, said the people, who asked not to be named discussing confidential information.

Both President Joe Biden and President-elect Donald Trump have publicly opposed the deal, which was announced a year ago and remains before federal regulators including a review by the Committee on Foreign Investment in the US, or Cfius. The USW didn’t respond to a request for comment.

US Steel shares rose as much as 3.3% to $39.70 a share Monday in New York, edging closer to Nippon Steel’s $55-a-share offer price. Nippon Steel shares rose as much as 3.4% in Tokyo on Tuesday, the biggest intraday gain in a month.

(By James Attwood and Joe Deaux)

Cuba's Energy Crisis Sparks Unrest

By Felicity Bradstock - Dec 10, 2024

Cuba's energy crisis, characterized by frequent blackouts and fuel shortages, is causing significant economic hardship and social unrest.

The crisis is attributed to aging infrastructure, lack of investment, and the 

US embargo, which hinders fuel imports and economic development.

While the Cuban government is promoting renewable energy as a long-term solution, immediate challenges persist, and the population continues to face daily struggles.

Cuba has increasingly been falling into an energy crisis, which has plunged its citizens into darkness with uncertainty over the future of the country’s energy security. The most recent crisis commenced on the 17th of October when non-essential workers were ordered to go home to help reduce the demand for power. However, this attempt failed and one of Cuba’s main power stations, Antonio Guiteras, shut down, alongside several other facilities.

Much of Cuba’s energy system is outdated, and years of underinvestment make it highly vulnerable. Many say that some of the country’s most important power plants were not built to standard in the first place. Antonio Guiteras was constructed in 1989 and has been patched up so many times, due to a lack of funding, that it is barely surviving.

The government has blamed the 62-year-old trade embargo with the U.S., which makes it difficult to import fuel, for the energy shortages. Cuba is reported to have lost as much as $5 billion last year because of the U.S. embargo. Previously, Cuba’s allies Russia and Venezuela helped the Caribbean Island to manage its energy security, but both countries are now facing challenges of their own. Washington has responded by saying that the current crisis is largely due to the Cuban government’s mismanagement of finances.

Cuba’s prime minister, Manuel Marrero, has said the emerging private sector will have to pay more for its power and stated aims to increase the country’s renewable energy capacity to enhance long-term security. The government has long aimed to accelerate Cuba’s renewable energy production, but it has not had enough public funding to do so. The island enjoys abundant sunshine, which could allow for the development of a strong solar energy network if the government can find enough investment.

Cuba recently came to an agreement with a Chinese firm to provide the materials needed to develop several solar farms in return for access to Cuba’s nickel deposits. However, many question whether Cuba’s workforce has the expertise needed to develop its solar energy sector, as many skilled workers have been driven awaydue to the economic crisis.

Cubans are now used to regular blackouts of a few hours at a time, but in October the power outage lasted several days. This forced people to look for firewood as fuel and use up any food they had before it went bad, as many are no longer receiving regular gas deliveries and charcoal seems impossible to find. In a country where much of the population is living in poverty, the energy crisis is exacerbating the poor standard of living.

The public has been warned not to protest the blackouts under threat of imprisonment. During protests in July 2021, hundreds of Cubans participating in widespread demonstrations were arrested following a series of blackouts. However, electricity generation in Cuba has decreased to far less than what’s needed, with the government now supplying between just 60 and 70 percent of the national demand. The government estimates that Cuba’s national electricity production fell by around 2.5 percent in 2023 compared to the previous year, and generation has fallen by 25 percent in total since 2019. Ricardo Torres, an economist at the American University in Washington DC, stated, “It’s important to understand that last week’s problem in the energy grid isn’t something that happens overnight.”

In late October, Mexico sent a cargo of 400,000 barrels of crude to Cuba to help alleviate fuel shortages. Mexico is one of the few countries that continues to send oil to U.S.-sanctioned Caribbean state. Between January and September, Mexico shipped around 20,000 bpd of crude to Cuba, an increase from the 16,000-bpd average in 2023. This increase responds to a fall in crude deliveries provided to Cuba by Venezuela, which decreased from 60,000 bpd in 2023 to 36,000 bpd in the first nine months of 2024.

In November, the Cuban government asked public and private businesses to produce more of their electricity using renewable resources, as well as to limit their use of air conditioning and roll out other conservation measures, in a 16-page decree. The new regulations allow top public and private energy consumers three years to develop their renewable energy capacity to provide at least 50 percent of their electricity consumption from green sources. If a company is not able to install solar panels at an office building or factory, it will instead need to arrange with the government to use some of its installed renewable energy capacity.

While the new regulations could help improve long-term energy security for Cuba, the government is doing little to alleviate the immediate effects of the energy crisis. Unless Cuba can get more fuel delivered, power plants will likely be forced to shut down again, plunging the country into darkness and further exacerbating the economic crisis already felt by many Cubans.


By Felicity Bradstock for Oilprice.com

US DOE to invest US$17M on critical minerals technology projects

The US Department of Energy (DOE) said on Tuesday it will invest a total of US$17 million across 14 projects 

By Staff Writer 

 December 10, 2024

U.S. Secretary of Energy, Jennifer M. Granholm, speaking at the Deploy 24 annual conference earlier this month. Image source: Jennifer Granholm’s official X account

The US Department of Energy (DOE) said on Tuesday it will invest a total of US$17 million across 14 projects with the aim of shoring up America's energy security and supply chain.

These projects, which span 11 states, are designed to strengthen and streamline the manufacturing of high-impact components and technologies, such as hydrogen fuel cells, magnets for high-efficiency motors, high-performance lithium-ion batteries and high-yield low-defect power electronics, the DOE said in its press release.

“DOE is helping reduce the nation’s dependence on foreign supply chains through innovative solutions that will tap domestic sources of the critical materials needed for next-generation technologies,” stated US Secretary of Energy Jennifer Granholm.

“These investments—part of our industrial strategy—will keep America’s growing manufacturing industry competitive while delivering economic benefits to communities nationwide," she added.

These projects are coordinated through the DOE’s Critical Materials Collaborative, which is designed to improve and increase communication and coordination among government agencies, and stakeholders working on critical materials projects. This includes supporting real-world innovation through each stage of the research, development and demonstration (RD&D) pipeline.

According to the DOE, the supported small-scale demonstrations for critical materials including lithium, nickel, cobalt, rare earth elements, platinum group metals, silicon carbide, copper and graphite will help de-risk critical materials innovations and accelerate their commercial readiness and adoption.

Below is a breakdown of the selected projects.

Use magnets with reduced critical materials content:University of Texas at Arlington (Arlington, Texas): US$1,000,000
Ames National Laboratory (Ames, Iowa): US$1,000,000
ABB, Inc. (Cary, North Carolina): US$1,520,000
Niron Magnetics, Inc. (Minneapolis, Minnesota): $2,700,000

Improve unit operations of processing and manufacturing of critical materials:Free Form Fibers (Saratoga Springs, NY): US$926,000
Virginia Polytechnic Institute and State University (Blacksburg, Virginia): US$1,000,000
University of North Dakota (Grand Forks, North Dakota): US$1,000,000
Ames National Laboratory (Ames, Iowa): US$1,000,000
Oak Ridge National Laboratory (Oak Ridge, Tennessee): US$1,000,000
Summit Nanotech USA Corporation (Lafayette, Colorado): US$1,000,000

Recover critical material from scrap and post-consumer products:Texas Agricultural and Mechanical University (College Station, Texas): US$1,280,000
Infinite Elements (El Paso, Texas): US$1,500,000

Reduce critical material demand for clean energy technologies: Celadyne Technologies (Chicago, Illinois): US$1,000,000
COnovate (Wauwatosa, Wisconsin): US$1,000,000

Learn more about the selected projects here.

Quebec appeals ruling that scuttles online mapping claims due to Indigenous rights – Canadian Mining Journal


by ahnationtalk on December 9, 2024

In many mining jurisdictions across Canada, exploration companies can go online to a government-maintained web portal and designate on a map the […]

In many mining jurisdictions across Canada, exploration companies can go online to a government-maintained web portal and designate on a map the claims they wish to explore.

By clicking and paying a fee, the government typically accepts the map coordinates, and the explorer then has the right to probe the claim, subject to obtaining regulatory permitting.

But in a landmark judgment that threatens to turn that system on its head, the Superior Court of Quebec ruled in October that accepting a map designation notice regarding a new claim under the Mining Act may adversely affect a First Nation’s claimed aboriginal title or rights. The court decision could also affect mining claims already granted on the First Nations’ territory.

GoviEx, subsidiary starts arbitration process with Niger over uranium project


Madaouéla mine

10th December 2024

By: Tasneem Bulbulia

Senior Contributing Editor Onli


Mineral resources company GoviEx Uranium and its subsidiary GoviEx Niger have started arbitration proceedings against Niger under the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (ICSID).

The companies started the arbitration pursuant to a clause set out in the Mining Convention signed by GoviEx Niger and the State in May 2007.

In July, the Niger Ministry of Mines informed GoviEx Niger of its decision to deprive the company of its rights under a mining permit granted to GoviEx Niger for the Madaouéla uranium project. The Niger Council of Ministers later that month issued three decrees withdrawing the mining permit and abrogating the decrees granting the mining permit and approving the mining convention, GoviEx points out.

GoviEx and its subsidiary consider the withdrawal decision and withdrawal decrees as a breach of the State’s obligations under the Mining Convention, the Mining Code and the Niger Civil Code.


Over the last year and a half, the companies received expressions of interest in excess of $200-million for project-related debt finance, started social and environmental due diligence with a prospective lender, updated the project’s environmental- and social-impact assessment, and started front-end engineering design and initial groundworks, including the construction of an access road, GoviEx outlines.

It posits that, with the recent recovery in uranium prices, the project was poised for development and the companies had started to advance despite the political changes in Niger since the coup d’état of July 2023.

GoviEx asserts that the State’s withdrawal of its rights to the project will have a negative impact on the economic and social development of the region.

The company and its subsidiary have attempted to settle their dispute with the State amicably, including through initiating a local administrative recourse before the Niger President. It states, however, that the State has not been willing to engage.

“The companies strongly believe they are entitled to be reinstated in their rights to the project and/or be awarded monetary compensation as a result of the State’s conduct in relation to the project and are accordingly pursuing a legal remedy under the Mining Convention to safeguard their rights.

“The companies may, as required, pursue other available remedies, including international arbitration under the 2019 memorandum of understanding signed by GoviEx Niger and the State.”

Notwithstanding the start of this arbitration, the companies say they remain committed to engaging constructively with the State to resolve the dispute.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Australia's South32 pulls Mozambique smelter forecast amid civil unrest

By ReutersDecember 10, 2024

The logo of Australian miner South32 can be seen at the venue of a media conference in Perth, Western Australia, November 18, 2015. REUTERS/David Gray/File Photo 

Dec 10 (Reuters) - Australia's South32 (S32.AX), opens new tab has implemented contingency plans for its Mozal Aluminium smelter in Mozambique and withdrawn its production forecast for the project due to the civil unrest in the southeast African country, the company said on Tuesday.

Last month's disputed election results in Mozambique sparked protests from opposition supporters and the country has been embroiled in escalating violence since then.
Advertisement · Scroll to continue

South32, which has a 63.7% stake in the Mozal Aluminium smelter, said the unrest has impacted the transportation of raw materials to its operations.

It had previously estimated to produce 360 kilotonnes from the smelter this fiscal year. The project contributed about 28% of South32's total aluminium output in fiscal 2024.
The company's shares ended 2.2% higher at A$3.68 on the day.

The Industrial Development Corporation of South Africa and the Mozambique government own the remaining stake in the smelter.

Bougainville’s independence path relies on economy, says PNG’s Marape

Reuters | December 10, 2024 

Bougainville Island – Image courtesy of Bougainville Copper Ltd

Bougainville must be able to fund at least half of its budget if the Pacific archipelago’s aspiration of political independence from Papua New Guinea is to be a success, PNG Prime Minister James Marape said on Wednesday.


Bougainville President Ishmael Toroama is seeking international investors to re-open one of the world’s biggest copper mines, with Marape backing his authority on Wednesday to make business decisions on the mine as the autonomous region travels a pathway to independence.

Bougainville was PNG’s economic powerhouse for two decades until 1989, when a bloody civil war erupted over revenue from Panguna, the world’s third-biggest open cut gold and copper mine and operated by Rio Tinto.

Bougainville voted for independence under a 2001 peace process in a referendum five years ago but PNG’s parliament is yet to endorse it. A New Zealand mediator was recently appointed on the matter.

“We start with economic independence as a fundamental basis, because once you have the money you are able to sustain,” Marape said at a resources conference in Sydney.

Bougainville’s internal revenue of 7% was not sufficient to “get up, get going”, he said. “We need to raise this at the very earliest to about 50% of funding.”

Toroama said significant progress had been made this year in redeveloping Panguna, with a copper exploration licence issued in January to Bougainville Copper Limited (BCL), majority-owned by the Bougainville government.

BCL has projected revenue of $36 billion from the mine over 20 years, with copper an essential input for renewable energy.

An environmental and social impact assessment on Rio Tinto’s legacy mining operation delivered this month was also a key step in re-opening the mine, Toroama said.

“We have to further sign an MOU with Rio Tinto and Bougainville Copper Limited for commencement of works of ageing infrastructure that pose imminent and severe risks to affected communities and further the talks,” he said.

The original mine’s strong revenue flows to PNG came at the expense of local communities and the local environment, resulting in civil unrest exacerbated by political factors that led to a war costing 20,000 lives, Toroama said.

“Bougainville continues to stand out as a lesson, a warning, a reminder of what not to do in resource sector development,” he added.

(By Kirsty Needham; Editing by Nicholas Yong)

 

Torex Gold resumes operations at ELG underground mine in Mexico

Dec. 09, 2024 11:54 AM ETTorex Gold Resources Inc. (TORXF) Stock, TXG:CA StockBy: Carl Surran, SA News Editor

Moussa81/iStock via Getty Images

Torex Gold Resources (OTCPK:TORXF) +6% in Monday's trading after saying it resumed operations at the El Limón Guajes underground mine in Mexico, where three workers died from carbon monoxide exposure.

Torex (OTCPK:TORXF) said it also resumed underground development and construction activities at Media Luna, a nearby project that is approaching conclusion.

FY 2024 production guidance and the schedule for the Media Luna project were not affected by the incident, the company said.

Torex (OTCPK:TORXF) said it has begun an investigation to determine the cause of the accident, but early indications are that the carbon monoxide exposure was an isolated incident in an area of the mine that was being prepared for ventilation following a stope blast.

The new Media Luna project will be tied into the El Limón Guajes complex, and combined are expected to produce 450K-470K oz of gold this year.

Torex Gold Suspends Operations at Morelos Property


TipRanks Dec. 9, 2024

Torex Gold Resources (TSE:TXG) has released an update.

Torex Gold Resources has temporarily halted operations at its Morelos Property in Mexico following a directive from the Ministry of Economy to facilitate an inspection after a recent fatal incident. This suspension includes all activities at the El Limón Guajes underground mine, although the company’s production guidance for 2024 and the Media Luna Project schedule remain unaffected.

Torex Gold Reports Three Fatalities at the ELG Underground Mine

December 5, 2024

Toronto, Ontario--(Newsfile Corp. - December 5, 2024) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) regretfully announces that during the day shift on December 5th, a fatal carbon monoxide gas exposure occurred, which claimed the lives of two employees and one contractor at the El Limón Guajes underground mine ("ELG Underground"). A fourth contract employee was also in the area and is currently in hospital and expected to recover.

Jody Kuzenko, President & CEO of Torex, stated:

"We are devastated by the deaths of these colleagues who were working at ELG Underground. While the details are very limited at this time, we do know that a 32-year old male, a 36-year old male and a 39-year old male have lost their lives to carbon monoxide exposure. Our priority right now is to fully support their families and our people, as we start the work to understand how this occurred."

The appropriate authorities have been notified and will receive the Company's full cooperation. Activities at ELG Underground have been suspended and an investigation to determine the cause of the accident will commence shortly.

ABOUT TOREX GOLD RESOURCES INC.
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company's principal asset is the Morelos Complex, which includes the El Limón Guajes ("ELG") Mine Complex, the Media Luna Project, a processing plant, and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex's key strategic objectives are: integrate and optimize the Morelos Property; deliver Media Luna to full production; grow reserves and resources; disciplined growth and capital allocation; retain and attract best industry talent; and build on ESG excellence.

Jaguar Mining Temporarily Suspends Operations at Its Turmalina Mine Following an Incident at the Satinoco Tailings Pile


Monday, 09 December 2024 

Jaguar Mining, Inc.



TORONTO, ON / ACCESSWIRE / December 9, 2024 / Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) has reported that operations at its Turmalina mine, which is part of the Company's MTL mining complex located in the state of Minas Gerais, Brazil, approximately 130 kilometers northwest of the city of Belo Horizonte, have been temporarily suspended following a slump in the north wall of its nearby Satinoco tailings pile which consists of dry-stacked filtered tails and waste rock.

On the morning of Saturday December 7, 2024, a visual inspection identified areas of concern at the Satinoco tailings pile. The mine's personnel and nearby community members were evacuated before the slump occurred, and no injuries were reported. The Company is working diligently with local authorities, including the Brazilian National Mining Agency, and the community surrounding the mine to ensure the situation remains under control. Safety of all employees and community members remains the top priority. Operations will remain temporarily suspended and will only resume once it is determined to be completely safe to do so.

Material from the slump impacted some of the infrastructure at the mine including, maintenance areas near the shop, piping that feeds the filter plant, outdoor storage areas and an emergency escape exit from the mine was covered. Approximately 134 residents have been evacuated to local hotels, and the Company has crisis management and support personnel on the ground, engaging with the displaced families. Timing of the resumption of operations at the Turmalina mine is currently unknown but it is expected it will not be shorter than one month. Any further material information will be provided as it becomes available.

The Iron Quadrangle

The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in 1699-1701 of gold contaminated with iron and platinum-group metals in the southeastern corner of the Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world-class multi-million-ounce gold deposits such as Morro Velho, Cuiabá, and São Bento. Jaguar holds the second largest gold land position in the Iron Quadrangle with over 41,000 hectares.

About Jaguar Mining Inc.

Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes and a large land package with significant upside exploration potential from mineral claims. The Company's principal operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais and include the MTL Mining Complex (Turmalina mine and plant) and Caeté Mining Complex (Pilar and Roça Grande mines, and Caeté plant). The Roça Grande mine has been on temporary care and maintenance since April 2019. The Company also owns the Paciência Mining Complex (Santa Isabel mine and plant), which had been on care and maintenance since 2012 and is planned to restart in early 2025. Additional information is available on the Company's website at www.jaguarmining.com.