Mega-polluting coal plans clash with Australia’s climate goals
Bloomberg News | September 26, 2022 | 

Blackwater coal mine in Queensland. Credit: BHP

A proposed pipeline of coal mine projects in Australia, the world’s second-biggest exporter of the fuel, are threatening to lock in decades of new carbon emissions and challenge the country’s promises of bolder climate action.


The federal government is considering 29 applications for new mines and expansions which, if developed to their full capacity, would produce more than 250 million tons a year and contribute as much as 17 billion tons of carbon dioxide emissions, according to a study by Move Beyond Coal, a Sydney-based climate advocacy group. That total is equivalent to more than half of global emissions in 2021.

The future of the country’s $63 billion coal export industry is a dilemma for Prime Minister Anthony Albanese, who took office in May with a promise to improve a weak record on climate action. Though his government has tightened emissions reduction targets, Albanese has also signaled support for new gas and coal developments amid a global energy crisis that’s seen buyers scramble for the country’s exports and swelled profits for fossil-fuel producers.

Global electricity generation from coal jumped about 8.5% last year to more than 9,600 terawatt-hours, the first increase since 2018, according to data compiled by BloombergNEF. Climate groups have raised concerns over the potential impact on efforts to curb emissions as nations revert to using the dirtiest fossil fuel.

Albanese’s government “is talking the talk that Australia is back on climate, but it’s got all these coal mines that are under review,” said Fahimah Badrulhisham, a spokesperson for Move Beyond Coal, the campaign group that produced the data. “We cannot allow new mines to be dug in 2022.”

Ministers currently have no legal obligation to consider climate impacts when authorizing development of new mines, and campaigners in March lost an attempt to block a Whitehaven Coal Ltd. proposal over its projected emissions. Members of Australia’s Green Party and pro-climate independent lawmakers have called for existing environmental laws to be tightened.

Environment Minister Tanya Plibersek is reviewing current laws, her office said. Coal mine applications are being assessed on a “case-by-case” basis, she said in July. Mining tycoon Clive Palmer was refused approvals in August for a the Central Queensland Coal project over the potential impact on the Great Barrier Reef.

Mining giants including BHP Group, Glencore Plc, and Peabody Energy Corp. are among producers with projects in Australia being considered by the government. BHP and Mitsubishi Corp.’s proposed Blackwater South metallurgical coal mine in Queensland is seeking approvals to cover a 90 year lifespan. That would equate to 1.98 billion tons of emissions, according to Move Beyond Coal’s estimates.

BHP declined to comment on the emissions forecast. Chief Executive Officer Mike Henry previously suggested the mine would be unlikely to operate for the duration set out in approval documents.

Glencore’s Valeria thermal and metallurgical coal mine in central Queensland has a proposed lifetime of 35 years and would emit 1.39 billion tons of carbon dioxide, Move Beyond Coal said.

The release of 17 billion tons of carbon dioxide from all the proposed mines would account for 4% of the world’s remaining “carbon budget” of 420 million tons — the point at which planetary warming of 1.5 degree Celsius (2.7 degrees Fahrenheit) becomes the most likely scenario, according to the Global Carbon Project.

A total of 31 coal mine projects were at the committed stage, where a final investment decision has been taken, or undergoing feasibility studies, Australia’s resources ministry said in a report in December.

(By James Fernyhough, with assistance from Andrew Janes)

Rio Tinto says employee sexually assaulted in Western Australian mine

Reuters | September 26, 2022 

(Stock Image)

Rio Tinto Ltd on Monday said an employee at one of its mines in Western Australia state was sexually assaulted and that police removed the alleged perpetrator from the site.


The incident comes three months after Australia’s sex discrimination commissioner called for urgent changes in the country’s mining industry after a state government report found that sexual harassment and assault were rife in the sector.

“Rio Tinto continues to work closely with Department of Mines, Industry Regulation and Safety in relation to its investigation,” a spokesperson said in an emailed statement.

Rio said the company will not provide more details due to right to privacy and respect for any legal process but the incident has been shared with employees.

A report released by Rio in February outlined a culture of bullying, harassment and racism at the global mining giant, including 21 complaints of actual or attempted rape or sexual assault over the past five years.

Women in mining sites across the industry have long complained of sexual harassment in so-called “fly in, fly out” mining camps, temporary accommodation set up at remote mines to house workers.

(By Renju Jose; Editing by Jason Neely)

Sexual abuse at Australian mines set to be targeted by new rules

Bloomberg News | September 21, 2022 |

Eight-month independent review of Rio Tinto’s workplace culture uncovered shocking reality. (Stock image.)

Western Australia’s state government has outlined plans to clamp down on sexual assault and harassment in the mining industry, after a landmark inquiry unveiled shocking cases of abuse of women workers at companies including BHP Group and Rio Tinto Group.


All 24 recommendations in the inquiry, released in June, have been agreed to or supported in-principle by the government, it said in a statement Wednesday. They include implementing a code of practice to improve security for remote workers, funding for legal and advocacy advice, and legislation to bring WA’s definition of sexual harassment in line with the rest of Australia.

“We have a vicious cycle, where women aren’t attracted to work in the industry — let alone stay in the industry — because of inappropriate behavior and a disregard of women’s experiences,” Women’s Interests Minister Simone McGurk said in the statement. “We need more women to work in this sector and we need them to be treated with respect.”

The government’s probe came amid calls for the industry to address its impacts on local communities and the wider environment. BHP and Rio Tinto conducted their own inquiries after allegations from women in Western Australia’s $159-billion a year resources industry, where so-called Fly In-Fly Out (FIFO) workers are transported to remote sites for several weeks at a time.

WA’s inquiry revealed that BHP recorded 91 reports of alleged sexual harassment or assault in the year through June 30, 2021, of which 79 were substantiated. Rio Tinto, from January 2020 to August 2021, received 51 complaints of sexual harassment or assault in FIFO operations, including one substantiated report of sexual assault and 29 substantiated reports of sexual harassment.

Allegations of abuse were also received at projects operated by Woodside Petroleum, Fortescue Metals Group, and Chevron Corp.

(By Jason Scott)

OWNERS SHOULD GO TO JAIL
Trevali to close Burkina Faso zinc mine after deadly flood
Reuters | September 23, 2022 |

Perkoa is located about 120km from Burkina Faso’s capital city of Ouagadougou. (Image courtesy of Trevali Mining.)

Canadian mining firm Trevali will close its Perkoa zinc mine in Burkina Faso, a company official told Reuters on Friday, following a flood at the mine in April that killed eight workers.


The miners drowned in the underground passages of the mine in Sanguie province after unexpected torrential rain during the West African country’s dry season.

The mine, one of Trevali’s three main operating assets, has been closed since.

“The funds still available…are insufficient to complete the rehabilitation of the mine,” said Ditil Moussa Palenfo, country director of Nantou Mining, the Trevali entity that owns Perkoa.

“Funds are barely sufficient to cover severance pay for terminated employees.”

A court in Burkina Faso last week handed out suspended sentences to two executives after finding them guilty of involuntary manslaughter for the flood disaster.

That came just weeks after the company announced it was halting trading on the Toronto Stock Exchange.

(By Anne Mimault and Edward McAllister; Editing by Chris Reese and Josie Kao)

ENFORCE THE LAW IN CANADA

Canada, South Korea seek deeper cooperation on critical minerals

Reuters | September 23, 2022 

Canadian Prime Minister Justin Trudeau meeting with 

South Korean President Yoon Suk-yeol. 

IN LONDON AT QUEEN LIZ'S FUNERAL

Image: Government of Canada

Canadian Prime Minister Justin Trudeau and South Korean President Yoon Suk-yeol on Friday agreed to deepen cooperation on critical minerals used in electric vehicles (EVs) batteries as both countries seek to cut emissions to fight climate change.


Yoon visited London for the funeral of Queen Elizabeth, and then New York in his first US trip to attend the UN General Assembly, before arriving in Canada on Thursday. On Friday, Yoon met Trudeau in Ottawa, and then they both spoke to reporters.

“Yoon and I discussed ways to collaborate in a variety of areas, including essential minerals, batteries for electric vehicles, and emerging technologies, including AI (artificial intelligence),” Trudeau told reporters.

Canada has many of the critical minerals – like lithium, cobalt and nickel – that are now used to make batteries for EVs, and the government is in the process of seeking to help producers and processors scale up production.

“Canada, as a global leader in the production of minerals, and Korea, a major semiconductor and battery maker – each play crucial roles in global supply chains,” Yoon said through an interpreter.

“The governments and businesses of our two nations will work together for the mineral resources sector to build a cooperative architecture… to respond to the shocks resulting from the changing world order,” Yoon added.

China is currently by far the dominant global supplier of critical minerals used in EVs. Yoon said it was strategically important for both countries to find an alternative supplier.

Canada and South Korea are already cooperating in the sector, Trudeau pointed out.

In March, Stellantis, the parent of Jeep and Chrysler, said it would build an EV battery plant in a joint venture with South Korea’s LG Energy Solution in Windsor, across the border from Detroit.

In a joint statement, the two countries said they agreed to deepen their “strategic partnership on supply chain resiliency” and would seek to position themselves as “competitive players in the critical minerals supply chain and battery and EV value chains”.

To that end, both countries agreed to develop a memorandum of understanding in the coming months to “support clean energy transition and energy security, including with respect to critical minerals”.

(By Steve Scherer; Editing by Sandra Maler)

Greenland Minerals dealt setback in legal fight for rare earth project licence
Reuters | September 26, 2022 | 

Greenland Minerals wants to develop the Kvanefjeld rare earths and uranium project. 

(Image courtesy of Greenland Travel.)

Australia’s Greenland Minerals Ltd said on Monday an arbitration tribunal had declined its request for interim orders against the Greenland government’s draft decision to reject the miner a licence for the Kvanefjeld rare-earths project.


The company had, in July, lodged an objection against the draft decision as it relied on a rule – which bans mining of ore bodies with uranium content of 100 parts per million (ppm) or greater – that is being contested separately in the court.


The tribunal ruled the interim orders requested would no longer serve their purpose of maintaining the status quo as the Greenland government had already rejected the miner’s licence application, Greenland Minerals said in a statement.

In March, the miner took the governments of Greenland and Denmark to court for the legislation passed last year that banned uranium mining, risking the development of the Kvanefjeld project.

More than 1 billion tonnes of mineral resources have been identified in the Kvanefjeld project area, with ore estimates of 108 million tonnes. It also contains radioactive uranium, which some locals are concerned would harm the environment.

Greenland Minerals said the tribunal made no findings on any other aspects of its case against the governments of Greenland and Denmark but that it “will continue to seek appropriate remedies in the arbitration.”

The company expects the government to soon issue a final decision rejecting its licence application, it added.

Greenland Minerals’ shares fell about 9.5%.

(By Riya Sharma; Editing by Savio D’Souza)

 

As sentiment turns in favour of nuclear energy, Fission preps for Q4 feasibility

Summer exploration at Fission Uranium's Patterson Lake South project in Saskatchewan. Credit: Fission Uranium

POSTED BY: ALISHA HIYATE SEPTEMBER 26, 2022

Fission Uranium (TSX: FCU) discovered the Triple R uranium deposit at its Patterson Lake South (PLS) project in Saskatchewan in 2012 – a year after the Fukushima nuclear plant disaster in Japan decimated the uranium market. 

But following a decade in the “wilderness,” uranium stocks are now finally on the upswing, benefitting from growing recognition of nuclear energy’s place in limiting global temperature rises, reducing emissions of greenhouse gases and countries’ looming net zero goals targeted between 2030 and 2050. 

“A few years ago, you were always trying to convince people they should be contrarian and look forward, but they really couldn’t see their way out of the weeds,” said Fission’s president and CEO Ross McElroy in mid-September. 

“When we talk to investors now, there is rarely anybody that I have to convince that nuclear’s the place to be and that it plays a key role in the energy mix and particularly in green energy.” 

The Sprott Physical Uranium Trust Fund, launched in mid-2021 has helped support uranium prices, while Russia’s ongoing war in Ukraine has stoked efforts to source the critical energy metal from friendly sources. Japan’s announcement that it will renew its investment in nuclear power, as well as similar moves from other countries, have solidified that positive sentiment. 

This, just as the company prepares to complete a feasibility study for the project by the end of the year. 

It will build on a positive 2019 prefeasibility study that outlined a capex of $1.2 billion for an underground mine with a life of 7.3 years. The operation would produce 11.3 million lb. U₃O₈ per year at low operating costs of US$7.18 per lb. 

Despite its short mine life and large capex, the study forecast a 25% internal rate of return after taxes, using a long-term uranium price of US$50 per lb. The net present value (at an 8% discount rate) was $702 million. 

One major difference in the upcoming feasibility study will be a longer mine life. Based on a resource update released in September that incorporated 175 drill holes completed over the last three years, the mine life in the feasibility study is likely to be extended (by around two years, according to a recent research note from Katie Lachappelle, a mining analyst at Canaccord Genuity). The update brought resources in the R840W zone into the indicated category, which will bring a third zone into the mine plan, adding 11.2 million lb. uranium oxide. It also bulked up the largest of the five zones at Triple R – R780E. 

Indicated resources stand at 2.7 million tonnes grading 1.94% U₃O₈ and 0.61 gram gold per tonne for 114.9 million lb. U₃O₈ and 52,700 oz. gold. Inferred resources are 635,000 tonnes at 1.1% U₃O₈ for 15.4 million lb. 

Overall, indicated resources rose by 21.3%, with only a small decline in grade (from 2.1% U₃O₈). 

Another factor that will be incorporated into the feasibility study is the inflationary environment. While high inflation has resulted in escalating price tags for large gold and copper mines under construction, McElroy said the project’s smaller footprint should temper the impact of inflation on PLS. “This is a small tonnes per day operation. There’s not a lot of steel and equipment,” he said. 

The expected timing of the start of construction three or four years down the road would also have to be considered. 

The uranium price could also be higher. The previous study used a long-term price of US$50 per lb., although uranium was trading at around US$28 per lb. at the time. While McElroy says that the current price, at around US$50 per lb., is still well below the incentive price, he believes the market will continue to improve.  

“I think that the price of uranium is going to be right where [we] want it to be when this does become an operating mine,” said McElroy, who spoke from Europe shortly after attending the World Nuclear Symposium in London in September — an event he described as the most optimistic in his 15 years of attending. 

The company has started the environmental assessment process and is planning on a 36-month timeline for permitting. It hopes to start construction in 2026, followed by production in 2029.  

It recently signed engagement and communication agreements with both the Buffalo River Dene First Nation and Ya’thi Néné Lands and Resources Office, which represents the Athabasca Nations and communities of the Nuhenéné. Previous feedback from local First Nations communities resulted in one major change in the proposed project – making it a fully underground mine rather than open pit and underground as originally proposed in a preliminary economic assessment. 

“The local communities definitely prefer to see an underground mine as opposed to a surface, and we actually are in a position where you have the flexibility to mine it either way,” McElroy said. Although the deposit is shallow, starting at only 50 metres, open pit mining would have cost about $100 million more, he said, because two of the deposits are located under a lake and would require a berm to be constructed for access. 

Chinese investment

While PLS, located about 150 km north of La Loche, Sask., appears to be a strong project, it won’t be cheap to build. As a junior with a sub-$500-million market cap, Fission is open to developing it on its own, or bringing in a strategic partner or larger mining company, McElroy says. 

The company already has an offtake agreement for up to 35% of its production with Hong Kong-listed CGN Mining. In a deal that closed in early 2016, CGN invested $82 million in Fission for a 19.99% equity stake. CGN is controlled by China General Nuclear Power Corp. 

McElroy acknowledges that relations between Canada and China have chilled considerably since that deal. However, he still sees CGN as a good partner. 

“There might be a bit more tension on an international basis between Canada and China, but on a company level between us and our Chinese partner, there’s no chilling of the relationship. We have a good, strong working relationship,” he said. 

“The Chinese story still impresses me a great deal,” he added. “They’re one of the most aggressive builders of nuclear reactors worldwide — that was always a compelling story six years ago, and it’s still a compelling story right now.” 

CGN hasn’t sold shares since its initial investment, but its ownership has been diluted to around 14% as it hasn’t participated in subsequent financings. The deal also gave it the right to nominate two members to Fission’s board, which was increased to nine members. 

In 2012, Canada and China signed an agreement, supplementing a 1994 Co-operation in the Peaceful Uses of Nuclear Energy agreement that allowed China to buy Canadian uranium. With uranium designated as a critical mineral and the more adversarial relationship that has developed since then, it’s not clear whether this will change. 

In a more near-term consideration, there is potential to reduce costs at PLS by sharing infrastructure with NexGen Energy (TSX: NXE), which is developing its $1.3-billion Arrow project only 3 km away. NexGen has already started the permitting process for the project, which is located on the same trend as Arrow, and is expected to produce around 29 million lb. of U₃O₈ per year over 11 years. No formal discussions have taken place, however. McElroy also doesn’t rule out a merger between the companies – if it makes sense for Fission shareholders. 

With the growing push for clean energy globally and the limited pool of uranium miners, McElroy believes PLS could attract a forward-thinking, commodity agnostic miner as an investor or acquirer. 

“A uranium deposit like this is not entirely different than gold mining a vein-hosted, greenstone belt mine, in fact they look very similar.” 

Discovery potential 

When Fission made its initial discovery at PLS, located about 8 km southwest of the Athabasca Basin margin a decade ago, it set off a staking rush in a new region. 

“Prior to our discovery, nobody thought there was any uranium in that area at all — it really wasn’t on anybody’s radar,” said McElroy, who shared The Northern Miner’s person of the year award in 2013 with then-Fission exec Dev Randhawa for the achievement, and also received Prospectors & Developers Association of Canada’s Bill Dennis award for exploration success in 2014. “It really changed the whole focus of where people are looking and even how they were looking.” 

With the PLS land package measuring 310 sq. km — about five times the size of the island of Manhattan — McElroy believes there’s more to be discovered. 

“The potential for more than one Triple R type deposit on our property is pretty high, so we’ll start kicking off exploration again at some point.” 

CANADA

Federal guide for inclusion of Indigenous knowledge in impact assessments

Canadian Mining Journal Staff | September 27, 2022 |

Credit: Adobe Stock

The Government of Canada has announced a new framework to guide inclusion of Indigenous knowledge in impact assessments for mining projects. The framework – known as The Indigenous Knowledge Policy Framework for Project Reviews and Regulatory Decisions – was developed in partnership with 79 Indigenous communities and organizations across the nation.


The framework is designed to inform the respectful, consistent and meaningful inclusion and protection of Indigenous knowledge in project reviews and regulatory decisions under the Impact Assessment Act; the Canadian Navigable Waters Act; the Canadian Energy Regulator Act; and the fish and fish habitat protection provisions of the Fisheries Act.

The framework provides a foundation for stronger relationships between the government and Indigenous Peoples based on respect for different worldviews and sources of knowledge. It will better enable the inclusion of Indigenous knowledge in the impact assessment process to improve project design, strengthen mitigation and accommodation measures, and make sound regulatory decisions for sustainable resource development.

Recognizing the importance of Indigenous knowledge systems and providing for its respectful inclusion in assessments of major projects like dams, mines and liquefied natural gas facilities is one more step in the government’s efforts to strengthen partnership with Indigenous Peoples. It is a concrete example of how the Impact Assessment Agency of Canada is implementing the objectives of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

The framework represents the first step in the development of guidance specific to Indigenous knowledge in impact assessment, including on best practices for reviewing Indigenous knowledge in project submissions and establishing confidentiality procedures.

“Indigenous knowledge has made, and continues to make, valuable contributions to environmental, regulatory and other processes across the country. Today’s announcement is an important step forward in the Government of Canada’s commitment to foster reconciliation and partnership with Indigenous peoples by aligning federal regulators and decision-makers on how to respectfully and meaningfully include Indigenous knowledge in project reviews and regulatory decisions,’ said the Hon. Steven Guilbeault, Minister of Environment and Climate Change Canada.

Click here to learn more about the new framework.

Another mine dam wall collapses in South Africa
Reuters | September 27, 2022 | 

The Jagersfontein-Charlesville area in the Free State. 

Image from the South African Government.

A mine dam wall has collapsed at a diamond mine in South Africa’s Free State province just weeks after a similar incident at the same site left one person dead and scores of injured, the provincial government said on Tuesday.


The incident occurred in the diamond mining town of Jagersfontein, which on Sept. 11 saw a dam holding liquid mine waste from a tailings reprocessing operation burst open, releasing a flood of mine slurry that swept away houses and cars.

There were no immediate reports of any injuries or deaths from the latest dam wall collapse at the dormant diamond mine, which was once owned by De Beers, a unit of Anglo American.

The provincial government in a statement said it was still trying to establish the extent of the water flow, adding that emergency crews were at the scene.

(By Bhargav Acharya; Editing by Sandra Maler)

ANOTHER LEFTIST GOVERNMENT
BHP sees Chile uncertainties easing in investment climate boost
Bloomberg News | September 27, 2022 

Cerro Colorado mine in Chile. Image from Consejo Minero.

Chilean regulatory uncertainties that have held up some investments in the biggest copper-producing nation are dissipating, according to top mining company BHP Group.


In a referendum earlier this month, Chileans overwhelmingly rejected a proposed new constitution, while authorities are showing their willingness to receive feedback on planned tax hikes, BHP President Minerals Americas Ragnar Udd said Tuesday.

“The uncertainties are easing,” he said in an interview from the Perumin conference in Arequipa, Peru. “We’re starting to see a bit more moderated conversations around the constitution in terms of what that’s going to look like one way or the other.”

BHP, which operates the world’s biggest copper mine in Chile, has dangled $10 billion to develop more resources in the country if those uncertainties are finally resolved. Huge investments are needed to help boost global supply at a time when demand for the wiring metal is set to rise as the world turns away from fossil fuels.

While it’s up to Chileans to decide whether they want a regulatory environment that remains competitive with other mining nations, people do recognize the importance of a stable economy, Udd said.

“The conversations I’ve had would suggest that there is a sensation that the reality is that Chile has an important role to play in the world and some of the changes that we see going forward probably won’t be as extreme as we’ve seen in the past,” he said.

In the case of its smallest mine in Chile, Cerro Colorado, BHP is exploring alternatives to continue operating beyond 2023, when its current permits expire. A solution probably would include the use of seawater, either desalinated or salt water, he said.

“That’s a process and studies we’re working through at this point.”

(By James Attwood)

 

California To Ban Natural Gas Heaters By 2030

By Irina Slav - Sep 23, 2022

California has made yet another step on its way to complete reliance on renewable energy by banning the use of gas-powered water heaters and furnaces from 2030.

The proposal to ban these products was approved unilaterally by the California Air Resources Board yesterday, Bloomberg reports.

“We’re really hopeful that this is the beginning of a domino effect and other states will follow California’s lead,” said Leah Louis-Prescott, an associate at RMI, a clean energy non-profit.

The ban does not cover gas stoves for now but many cities in California are seeking to discourage the use of gas stoves and a switch to electric-only appliances.

Now, with the gas furnace ban, Californians will have to familiarize themselves with heat pumps: all-electric heating appliances that are gaining popularity in Europe as an alternative to traditional heating methods.

Touted as the way forward in heating technology, heat pumps are praised for efficiency and emission footprint but they do have constraints such as temperature and they add to electricity consumption, which could strain a grid designed for a certain—lower—level of consumption.

Earlier this month California moved to ban the sales of internal-combustion engine cars from 2035. While climate activists have welcomed the news, there are some issues, such as the fact that EVs in California, which is the biggest EV market in the States, only make up 15 percent of new car sales, per figures from the California New Car Dealers' Association.

Going from 15 percent to 100 percent in 11 years would be challenging for a car industry that is already struggling to find enough raw materials for the millions of EVs companies have committed to manufacture.

Meanwhile, California continues to get some 40 percent of its power from fossil fuels. This needs to change if the state is to hit its own target of a zero-emission grid by 2045.

By Irina Slav for Oilprice.com