Australia bans uranium mining at Indigenous site

By AFP
July 26, 2024

The Kakadu national park will be extended to include the Jabiluka uranium deposit - Copyright AFP/File DAVID GRAY

Australia moved Saturday to ban mining at one of the world’s largest high-grade uranium deposits, highlighting the site’s “enduring connection” to Indigenous Australians.

The Jabiluka deposit in northern Australia is surrounded by the heritage-listed Kakadu national park, a tropical expanse of gorges and waterfalls featured in the first “Crocodile Dundee” film.

Prime Minister Anthony Albanese said the national park would be extended to include the Jabiluka site — which has never been mined — honouring the decades-long desires of the Mirrar people.

“They were seeking a guarantee that there would never be uranium mining on their land,” Albanese told a crowd of Labor Party supporters in Sydney.

“This means there will never be mining at Jabiluka,” he added.

Archaeologists discovered a buried trove of stone axes and tools near the Jabiluka site in 2017, which they dated at tens of thousands of years old.

The find was “proof of the extraordinary and enduring connection Aboriginal and Torres Strait Islander have had with our land”, Albanese said.

“The Mirrar people have loved and cared for their land for more than 60,000 years.

“That beautiful part of Australia is home to some of the oldest rock art in the world,” he added.

Discovered in the early 1970s, efforts to exploit the Jabiluka deposit have for decades been tied-up in legal wrangling between Indigenous custodians and mining companies.

It is one of the world’s largest unexploited high-grade uranium deposits, according to the World Nuclear Association.

Rio Tinto-controlled company Energy Resources of Australia previously held mining leases at Jabiluka.

The conservation of Indigenous sites has come under intense scrutiny in Australia after mining company Rio Tinto blew up the 46,000-year-old Juukan Gorge rock shelters in 2020.

Australia’s conservative opposition has vowed to build nuclear power plants across the country if it wins the next election, overturning a 26-year nuclear ban.

Australia rejects Rio Tinto unit’s uranium mine lease renewal

Cecilia Jamasmie | July 26, 2024 | 

Dewatering of Ranger mine’s Pit 3 as part of ongoing site rehabilitation. (Image courtesy of ERA | Ranger mine closure plan 2023.)

The Australian government has blocked Rio Tinto-controlled Energy Resources of Australia (ASX: ERA) from mining a vast uranium deposit under the Kakadu National Park in the country’s Northern Territory, effectively ending a decades-long dispute over the resource.


ERA had applied in March for a 10-year lease renewal on Jabikula, considered one of the world’s largest untapped deposits of high-grade uranium, as the current permit expires in August.

Energy Resources Australia had applied for a 10-year lease renewal on the Jabiluka uranium mine, under the Kakadu National Park.

NT mining minister Mark Monaghan said in an emailed statement the decision not to renew the lease was partially based on advice from the federal government. “We have gone through a thorough process to ensure that all stakeholder views have been considered in this decision,” Monaghan said. “The federal government advice, along with the wishes of the Mirarr people, were critical to this process and outcome.”

The Northern Territory government declared special reserve status over the Jabiluka area, which is in the surrounds of Kakadu National Park, in May. This prevents any future applications for the granting of a mineral title in the area once the current lease expires.

ERA said in a statement that it is disappointed with the decision and is assessing its options.

Multi-decade blocking attempts

The Mirarr people have long opposed to mining activities in the region, organizing protests in the late 1990s and early 2000s. Rio Tinto has backed the traditional owners’ position in recent years as it works to repair its ties with indigenous groups after destroying sacred rock shelters at Juukan Gorge in Western Australia in 2020 for an iron ore mine expansion.

Rio Tinto takes over Ranger uranium mine site cleanup

Activity in the Australian uranium market has spiked over the past year, with developers such as Boss Energy (ASX: BOE), Bannerman Energy (ASX: BMN) and Deep Yellow (ASX: DYL) seeing their value soar.

Paladin Energy (ASX: PDN), a Western Australia-based uranium miner, recently announced a proposed acquisition of Canadian competitor Fission Uranium (TSX: FCU). If successful, the combined company would produce 10% of global uranium output.

In contrast, ERA’s value has steadily dropped since the Ranger uranium mine, located near Jabiluka, stopped producing in 2021, after 40 years of operations.

Rehabilitation costs for the site have surged to A$2.2bn ($1.4bn) over the past year and the company is expected to run out of funds by year-end. With no other significant assets, raising capital would be a very difficult task.

Shares in ERA closed down on Friday almost 6% to A$0.032. Year-to-date, the stock has lost 20% of its value and the miner’s market capitalization sits at A$803 million ($527m).

No extension to Jabiluka mineral lease

26 July 2024

Energy Resources of Australia Limited says it is disappointed with the Northern Territory Government's decision not to renew the mineral lease for the Jabiluka high-grade uranium deposit. Any decision about the future use of the site now rests with the Federal Government, in consultation with key stakeholders.

A retention pond at the Jabiluka site, pictured in 2010 (Image: Owen65)

The Jabiluka uranium deposit was discovered in the early 1970s and, with resources of more than 130,000 tU3O8 (110,240 tU), is one of the world's largest high-grade uranium deposits. Jabiluka is also a site of international cultural heritage significance, containing extensive rock art galleries of World Heritage significance as well as sacred sites and the archaeological site of the oldest known human occupation in Australia.

A mining lease was granted in 1982. ERA purchased the Jabiluka lease from Pancontinental in 1991, and some development work began with the construction of an access decline excavation around the orebody, but mining was subsequently deferred and in 2005, the Mirarr and ERA formally agreed that mining may only proceed with the written consent of the Mirarr Traditional Owners.

In March, ERA - majority owned by mining giant Rio Tinto - applied for a 10-year lease renewal on the Jabiluka uranium mine, but stressed it had no plans to develop the deposit. At that time, it said renewing the lease was the best way to preserve the mining veto and Jabiluka's cultural heritage.

The Gundjeihmi Aboriginal Corporation, which represents the Mirarr Traditional Owners, had publicly expressed its intention to oppose both the renewal and development of the Jabiluka Mineral Lease.

"Based on advice from the Federal Government, the Jabiluka Mineral Lease will not be renewed," said a statement from Northern Territory's Minister for Mining Mark Monaghan. "As the Mineral Lease relates to a prescribed substance, uranium, there are strict regularity requirements in place, and all proper processes have been followed by the NT and Commonwealth Governments to come to this decision."

In May, the Northern Territory Government announced that a Reserved Land area would prevent any future applications for the grant of a mineral title over the Jabiluka area once the lease ceases. The Reserved Land area will come into effect at the cessation of the Mineral Lease, due to expire on 11 August this year, meaning while this Reserved Land area is in place applications for a grant of any mineral title will not be allowed.

ERA said it "is disappointed with the decision and assessing the options available".

Gundjeihmi Aboriginal Corporation welcomed the decision not to extend the Jabiluka mining lease, saying the decision "ensures that no mining will happen at Jabiluka, ending a decades-long fight by Mirarr and their supporters".

It noted the next steps for government will be to seek inclusion in the World Heritage estate and to work with Mirarr to establish a new set of arrangements to incorporate the area into the surrounding Kakadu National Park.

"It's a hugely significant day for the Mirarr and for all Australians," said Gundjeihmi Aboriginal Corporation CEO Thalia van den Boogaard. "Jabiluka will never be mined and the internationally significant natural and cultural value of the site is finally being recognised and will now be protected. The Mirarr and their supporters have been steadfast in their opposition to this mining project for over four decades. Now the job starts of caring for Jabiluka as the heritage of all Australians."

Researched and written by World Nuclear News

Rio Tinto, BYD and LG Energy show interest in Chile’s Altoandinos lithium site

Reuters | July 25, 2024 | 

Stock image.

Twelve companies including global miner Rio Tinto and Chinese electric vehicle maker BYD have submitted proposals to extract lithium in Chile’s Altoandinos salt flats, the state mining company ENAMI said on Thursday.


The salt flats in the northern region of Atacama are one of the areas where the Chilean government is aiming to boost lithium production in partnership with the state by kicking off new projects.

ENAMI launched its search in May, seeking a partner to offer either financial backing or operational support in Altoandinos, for an ownership stake that has yet to be determined.

In addition to Rio Tinto and BYD, the applicants included publicly listed miner Eramet of France, battery maker LG Energy Solution of South Korea, steel company Posco, also from South Korea, and Chilean construction group Belsaco.

The others were Argentina’s Tecpetrol, Russia’s Axionit, Canada’s Summit Nanotech, Chile’s Grupo Errazuriz, and from China, CNRG and a consortium known as BTR.

Chile is the world’s second largest producer of lithium, a key material for most batteries that power electric vehicles.

ENAMI will announce on Aug. 19 which companies meet the eligibility requirements, before moving into negotiations with the final round of applicants.

“This confirms the commitment of these companies to proceed in a public-private partnership to make this project happen,” ENAMI chief Ivan Mlynarz said in a statement.

ENAMI, which processes copper for local mining companies, has been tasked with spearheading the government’s maiden ventures into lithium alongside state mining giant Codelco, which is also seeking a partner in the Maricunga salt flat.

(By Daina Beth Solomon and Fabian Cambero; Editing by Anthony Esposito)

First Quantum mine not on agenda this year, says Panama President

Reuters | July 25, 2024 | 

Panama’s president-elect Jose Raul Mulino. (Via X.)

Panamanian President Jose Raul Mulino said on Thursday the government will not address issues around a major shuttered First Quantum copper mine until the early 2025.


The lucrative Cobre Panama mine, one of the world’s top sources of copper, was shut down in November hours after the country’s Supreme Court declared its contract unconstitutional. Panama had provided First Quantum a 20-year mining right with an option to extend for another 20 years, in return for $375 million in annual revenue to Panama.


Critics say the contract was too generous, and environmental protests against the mine have morphed into broader anti-government demonstrations.

Mulino told reporters the Cobre Panama project will be addressed as needed, but stressed that issues such as social security have higher priority.

Shares of First Quantum fell 1.19% on the Toronto Stock Exchange in early afternoon trading.

Mulino said he has not had official contact with anyone from First Quantum over the dispute.

In an earnings call this week First Quantum CEO told analysts that they do not expect the mine to reopen this year.

“We expect this to evolve slowly given the sensitivity around the mine, RBC Capital Markets said in a research note.

First Quantum shares would benefit from any progress in resolving the dispute, he said, including government discussions with the company and improvement in public sentiment.

(By Elida Moreno and Divya Rajagopal; Editing by David Alire Garcia and Richard Chang)

Taliban start building road for huge Chinese copper mining project

Reuters | July 25, 2024 | 

Stock image.

Afghanistan’s Taliban administration this week began construction of a road to the remote site of a huge copper mine that Metallurgical Corporation of China (MCC) confirmed it was planning to start operating though it did not know when.


The developments were among the clearest signals since the Taliban took over in 2021 that both sides planned to move ahead with the project after its launch has been mired by delays for over a decade.

If it goes ahead, the project would be one of the biggest in Afghanistan’s history and the Taliban estimate it would create 3,000 direct jobs for Afghans and thousands more indirectly.

Afghanistan’s vast mineral wealth has been trumpeted as a path to economic independence. But instability has repeatedly hampered past projects, even under the previous Western-backed government.

An MCC-led Chinese consortium took out a 30-year lease for the mine with the Afghan government in 2008.

Taliban acting deputy prime minister Mullah Baradar at a ceremony to launch the road’s construction on Wednesday said the project was of “vital significance”, according to a statement.

He highlighted: “the urgency of initiating practical work without further delay, given the considerable time already lost.”

China’s ambassador and a technical team for MCC also attended the ceremony in Mohammad Agha, the nearest town in eastern Logar province to the site, according to the statement.

A spokesperson for MCC’s investor relations told Reuters on Thursday that they were not sure when operations would begin but that they did plan to push for the mine to start operations.

An MCC source told Reuters in 2021 that it could take five to six years to build infrastructure for mining there but the project could not go anywhere while safety concerns lingered.

China has signalled interest in mining investment in Taliban-ruled Afghanistan and has spoken with the Taliban about its plans to join Beijing’s Belt and Road Infrastructure plan.

Mired by banking restrictions, Afghanistan has plunged into economic crisis since the Taliban took over and no foreign government has formally recognised their government.

The Taliban say they have focused on restoring security after 20 years of war. However attacks, including on foreign targets and a hotel popular with Chinese businesspeople, have been carried out by militant groups including the Islamic State.

(By Mohammad Yunus Yawar in Kabul, Charlotte Greenfield in Islamabad and Beijing Newsroom; Editing by Alexandra Hudson)

Brazil government mulls ‘tougher measures and sanctions’ on Vale, minister says

Reuters | July 25, 2024 | 

Aftermath of Vale’s dam collapse in Brumardinho, Brazil. (Image by Vinícius Mendonça/Ibama, Wikimedia Commons.).

Brazil’s government could apply “tougher measures and sanctions” on Vale to combat the mining giant’s “arrogant” stance towards the country, Mines and Energy Minister Alexandre Silveira told Reuters.


His comments mark an escalation of the government’s rhetoric against the firm, which has been fueled by delay in reaching a deal for Vale and partners to pay reparations over a 2015 dam disaster.

In an interview on Wednesday on the sidelines of an event in Sergipe state, Silveira said the government was analyzing Brazil’s laws and public policies as it considers potential measures against Vale, but did not go into details.


Since President Luiz Inacio Lula da Silva took office in 2023, Brazil’s government has regularly criticized the miner for two dam collapses in Minas Gerais state in 2015 and 2019, and for not investing enough in the country.

“I’m worried about Vale’s stance, which seems unfortunately will only change when we have to apply tougher measures and sanctions on the company,” Silveira said.

The minister criticized what he sees as lack of leadership since Vale announced chief executive Eduardo Bartolomeo would leave the firm at the end of this year, saying that has delayed a deal for reparations over the 2015 Mariana dam disaster.
‘Headless’

Vale, BHP and their joint venture Samarco, which operated a tailings dam in Minas Gerais state whose collapse killed 19 people and polluted a river, have been in talks with the government for a multibillion-dollar reparations deal.

All parties had expectations for an agreement in the first half of the year, but the firms’ proposal did not meet the money the government had aimed for.

“It shouldn’t be like this, but Vale is now ‘headless’ and that is clearly delaying a deal,” Silveira said. “Since they announced the departure of the CEO, Vale was left without someone with authority to deal with extremely relevant matters.”

Vale declined to comment on the minister’s remarks, but said it its committed to reparations over the 2015 disaster.

According to a source familiar with the matter, who asked not to be named, potential measures being analyzed by the government against Vale could involve changes to Brazil’s mining rights rules.

Silveira said the government’s tolerance with Vale was “getting very close to the limit” and complained about a lack of investments by the firm, saying Vale is “almost monopolistic and has ceased to exploit strategic assets” in Brazil.

“It has started to sell them to international investors and distribute dividends without any strategic criteria converging with the country’s interests.”

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

Markets have been wary of potential government interference at Vale since reports last year that Lula wanted a former finance minister, Guido Mantega, to be appointed to the company’s board or even as its CEO.

Vale was privatized in the 1990s and has a dispersed ownership, but the government still exerts significant influence as its main shareholders include a pension fund operated by state-run lender Banco do Brasil.

Two independent board members have resigned in the last few months, one citing allegations of political influence in the succession plan.

Silveira has always maintained the government has not sought to influence who will be Vale’s next chief executive.

“There has never been any government interference when it comes Vale,” he reiterated.

(By Marta Nogueira and Gabriel Araujo; Editing by Aurora Ellis)

Cash-hungry Canadian miners test grey area of anti-China M&A rules

Bloomberg News | July 25, 2024 | 

Canada’s Solaris Resources scrapped a financing deal with China’s Zijin this year, citing government rules. Image from Solaris Resources.

Nearly two years after Canada moved to restrict foreign investment in the country’s mining sector, minerals explorers and developers are testing the limits of those rules.


The Canadian government cracked down on mining deals involving foreign state-owned entities in 2022 in a move widely seen as targeting China’s influence in the global critical minerals supply chain, but which threatens to deprive smaller miners and developers of a key source of financing. However, restrictions have stopped short of prescribing specific levels of foreign investment that will be allowed.

Mining firms are now pushing the boundaries in an attempt to establish where the limits lie. At least nine mining deals involving Chinese firms have been proposed since Canada’s new measures, and investment bankers and corporate development teams say they are closely watching how the government responds to some of these test deals, as a basis for future transactions.

The continued push to attract Chinese capital despite Canada’s scrutiny is a reflection of the challenges facing the world’s mineral explorers and mine-builders, many of which are headquartered in Canada. Junior miners struggle to draw domestic investors for expensive and risky projects that can take years, if not decades, to complete. Chinese firms, which can take a longer, strategic view on raw material investments, have long been an important funding source for the sector.

“Given how broadly the government is interpreting its mandate here, there’s certainly a lack of clarity around the edges in some specific circumstances,” said Braden Jebson, a partner and mergers and acquisitions lawyer at Torys LLP. “Even when the government is setting out what looks like a red line, they’re often leaving themselves discretion so that there aren’t hard-and-fast rules.”

Canada’s Innovation, Science and Economic Development department reviews takeovers and has broad discretion to approve or reject them.

Montage Gold Corp. is one recent deal that is being viewed as a potential test case. The company, which owns a gold deposit in Ivory Coast, accepted a C$57.3 million ($41.8 million) investment from China’s Zijin Mining Group for a 9.9% stake in mid-July. Montage said it believes the transaction, expected to close in August, won’t require government approval because Zijin would own just under 10% of the Vancouver-based company.

The investment comes two months after Solaris Resources Inc. scrapped a financing deal with Zijin that would have given the Chinese company a 15% stake and a seat on the board. Solaris called off the deal after facing a lengthy government review.

Montage’s arrangement with Zijin is unlikely to get the same heightened scrutiny in part because gold isn’t on Canada’s list of critical minerals and because the company’s assets are outside Canada, chief executive officer Martino De Ciccio said in an interview.

“They don’t have any special shareholder rights agreement, they hold no board seats and they have no representation within the management team,” he said.

Other Canadian deals involving Chinese buyers are in the works, including Yintai Gold’s C$368 million takeover of Osino Resources Corp. The Vancouver-based company, which has a gold project in Namibia, said it doesn’t need a sign-off from the Canadian government. The companies are awaiting approvals from Namibian regulators.

Montreal-based SRG Mining Inc., which is developing a graphite mine in Guinea, went so far as to attempt to move outside Canada earlier this year in a bid to circumvent Canada’s scrutiny of Chinese investment before scrapping the idea.

Canada’s federal government has tightened rules even further since 2022, with measures announced in July that will only allow foreign takeovers of Canadian mining companies involved in critical minerals in “the most exceptional of circumstances.”

“While the government continues to welcome foreign direct investment, those in the critical minerals sectors receive enhanced scrutiny,” Canada’s Innovation Department said Friday in an emailed statement. “The government must examine each investment on a case-by-case basis, to ensure the merits of each investment and to ensure that Canada remains open to desirable foreign direct investment.”


Canada’s earliest moves under the foreign restriction rules were in November 2022, when it forced three Chinese firms to divest from a trio of Canadian junior lithium explorers whose assets were mostly in Latin America. Yet last year Saudi Arabia was allowed to purchase a 10% stake in Vale SA’s base metals unit, giving the Middle Eastern kingdom part ownership of nickel operations in Ontario.

Canada and its Western allies have become increasingly concerned about securing critical minerals needed for goods ranging from electric-vehicle batteries to electronics, prompting them to push to develop supply chains to loosen China’s global dominance over the industry. The Canadian government’s decision-making is predominantly guided by the strategic importance of the minerals involved, according to Torys’ Jebson.

“The general understanding is that the government’s not likely to approve an investment in critical minerals from a foreign state-owned entity that does not share similar interests and values as Canada,” he said. “Outside the critical minerals space, there’s probably more opportunity.”

(By Jacob Lorinc)

New Caledonia nickel firm KNS starts layoff procedure

Reuters | July 26, 2024 | 

Koniambo nickel operation. (Image courtesy of Glencore.)

New Caledonian nickel producer Koniambo Nickel SAS (KNS) has launched a redundancy plan for its 1,200 workers after co-owner Glencore failed to find a buyer for its stake ahead of an end-August deadline, KNS said on Friday.


KNS stopped its mine and plant operations in March after Glencore decided to sell its interest following years of losses at the operation. Glencore agreed to pay for workers’ salaries and for the furnaces to be kept hot until the end of August at the facilities in the French southern Pacific territory.

KNS said discussions with potential investors were continuing, with three groups still expressing an interest.

“Nevertheless, we have neither a firm offer nor visibility on the funding of our operations,” it said in a statement.

The firm now faces the prospect of laying off all staff after Aug. 31 when the six-month care and maintenance period funded by Glencore ends, with the exception of around 50 workers who would be needed to supervise the plant, KNS added.

KNS is part of a struggling New Caledonian nickel industry, which has been dealt a further blow by unrest in the territory since May.

French mining group Eramet said its local subsidiary SLN remained at a virtual standstill and continued to receive funding from the French government to stay in business.

(By Gus Trompiz; Editing by Tomasz Janowski)

Teck draws M&A attention from big miners in rush for copper

Bloomberg News | July 26, 2024 | 

Highland Valley Copper operations, British Columbia, Canada. (Image courtesy of Teck’s sustainability report 2022.)

The world’s biggest miners are back in serious dealmaking mode and Teck Resources Ltd. is taking center stage.


The Canadian miner, which has exited its coal business with a sale this month to Glencore Plc, is drawing attention from across the industry because of its attractive copper assets, as the biggest names position for the next wave of activity in the wake of BHP Group’s failed bid for Anglo American Plc.

Teck is seen as a logical merger partner in particular for Anglo American or Vale SA’s base-metals business, both of which have studied the specifics of a potential deal internally, according to executives, advisers and bankers familiar with the companies’ thinking. Larger rivals including BHP, Rio Tinto Group and Freeport-McMoRan Inc. are also watching Teck closely and could be in a position to respond if another player made the first move.

Teck shares rose as much as 6.1% in Toronto.

There’s no certainty that any of the companies will ultimately make an offer for Teck, and any potential transaction could face significant hurdles. The company is still controlled by its founding family, which successfully opposed an unsolicited bid last year from Glencore. And stringent new guidance restricting foreign takeovers in Canada has raised questions over whether a deal is even possible.

While it’s not clear whether Teck’s management or family patriarch Norman Keevil are looking to do a deal, the company has indicated privately that it has at least considered the merits of a combination with a rival, some of the people said.

And for the world’s biggest miners, the appeal is evident. Across the industry, many of the largest players still depend too heavily on fossil-fuel-heavy commodities such as coal and iron ore, while investors are looking for exposure to copper, the crucial metal needed to decarbonize the global economy. The sale of its coal business has repositioned Teck to focus on copper and zinc, and the company’s Quebrada Blanca 2 operation in Chile is one of the world’s newest and biggest copper mines.

Representatives from Teck, Anglo, Vale, BHP, Rio and Glencore declined to comment. Freeport didn’t respond to a request for comment.

The buzz around Teck comes against the backdrop of a wider revival of dealmaking in the global mining industry, after the biggest names spent most of the previous decade sitting on the sidelines. Glencore got the ball rolling last year when it took a run at Teck in a bid to bulk up its copper business, before BHP tried to buy Anglo earlier this year in a $49 billion deal. While both attempts came up short, the message was clear: the biggest names, with the biggest balance sheets, are out looking for deals.

Among the potential bidders or partners for Teck, Vale’s copper and nickel business is seen as a possible frontrunner, and executives from the company have expressed confidence in their ability to do a deal, according to people with knowledge of the conversations.

Vale, the world’s second-biggest iron ore miner, created a standalone company for its base-metals division last year and sold a 10% stake to Saudi Arabia as part of a plan to unlock value for the unit. Vale has said it is considering further options that could include an initial public offering for the business, which has some of its biggest operations in Canada.

Vale Base Metals is currently studying options for a potential deal with Teck and would likely get the support of its Saudi backers, according to people familiar with the matter. However, any final decision would probably need to wait until the parent company has concluded its search for a new CEO later this year, one of the people said.

Teck itself has also considered the merits of a deal with Vale Base Metals, another one of the people said. Still, while a Vale deal would help cement Teck as a Canadian mining champion, something that would likely win government backing, Vale’s nickel-heavy portfolio would potentially be less attractive to investors as prices have plunged in response to a global oversupply.

Executives at Anglo American also see the logic of a combination. Like Teck, Anglo has recently survived an attempted takeover, but was forced to break itself up as part of the process. The company is currently looking to exit coal mining — as well as platinum and diamonds — focus on copper and iron ore.


Once that process is completed, Anglo will be an even more attractive target for its bigger rivals, but combining with Teck would potentially put both companies beyond the reach of potential predators.

Anglo’s banks had already been tasked with studying a potential merger with Teck before BHP’s approach and the company’s management are still keen on the idea, according to people familiar with the matter. Executives see Anglo as having a closer cultural fit with Teck than rivals such as BHP. However, the miner will probably first need to progress further with its own restructuring plan, the people said.

At the top of the industry, both BHP and Rio Tinto are keeping tabs on Teck. In Rio’s case, the company’s executives were jolted by BHP’s bid for Anglo and the way in which such a deal would transform the sector, creating a behemoth that would dwarf everyone else.

The company’s business development team has since been running the numbers on potential targets, including Teck, according to people familiar with the matter. The work has been commissioned by the company’s senior leaders, although it remains at an early stage and overall Rio Tinto is still wary of large deals, the people said.

As for BHP, its interest in a big transaction to grow in copper is clear. Teck is not at the top of its list, but the company is aware that a new dealmaking wave could see its prime targets like Anglo snapped up by others.

Freeport-McMoRan, the biggest US miner, is also keeping a close watch on Teck. While the company has been historically averse to large M&A, its strong share price gives it a favorable currency to pursue a transaction of this scale.


Glencore, which unsuccessfully bid for Teck last year, is predominantly interested in Teck’s flagship Quebrada Blanca 2 mine. Glencore and Anglo both own 44% stakes in the neighboring Collahuasi operation, which could offer opportunities to increase production and profits by combining the two operations — whether or not such a move involved a full merger or takeover. Glencore CEO Gary Nagle has talked in the past about the potential synergies between the two mines. Glencore currently has a standstill agreement with Teck, although it would lapse if another party made a bid for the company.

Any takeover of Teck would face close scrutiny by Canadian Prime Minister Justin Trudeau’s government, which is facing an election next year and has expressed reluctance to let foreign firms take out the country’s biggest mining firms, citing the strategic importance of owning the metals they produce.

Industry Minister Francois-Philippe Champagne said earlier this month that Canada will now only approve foreign takeovers of its biggest miners “in the most exceptional of circumstances.” Executives and bankers in the industry widely believe the new guidance was intended to protect Teck, which counts itself among the last big Canadian mining firms. The opposition Conservative Party has also expressed opposition toward foreign buyers of mineral companies and criticized the government for approving Teck’s coal sale to Glencore.

(By Jacob Lorinc, Mariana Durao, Dinesh Nair and Thomas Biesheuvel)

Tianqi appeals Chile ruling on SQM-Codelco lithium deal

CHINESE STATE CAPITALI$M

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CHILEAN STATE CAPITALI$M

Reuters | July 27, 2024 | 

Credit: SQM

Chinese lithium miner Tianqi has appealed a ruling by Chilean financial regulator CMF that shareholder approval is not needed to proceed with a major tie-up set to boost state control over the country’s lithium sector, it said on Saturday.


Tianqi has repeatedly called for the planned partnership between state miner Codelco and SQM, the world’s No. 2 lithium producer, to be put to a shareholders’ vote. Tianqi owns about a fifth of SQM.


The partnership would grant SQM the ability to extract lithium in the prized Atacama salt flat through 2060, while giving Codelco, the copper miner, a major role in the lithium industry in Chile, the world’s second-biggest supplier of the key battery metal after Australia.

The Chinese firm said in a statement it had made a formal request to Santiago’s Court of Appeals. It asked that the CMF ruling be suspended until a final resolution is reached, an action that could halt the deal from moving forward.

SQM and Codelco predicted that final regulatory approvals will come in the first few months of 2025 and plan to begin the partnership the same year.

“The CMF ruling we are appealing represents not just one particular case, but implies negative influences for future operations,” Tianqi said, adding it would continue to take “all legal measures necessary” to defend its interests.

“The events surrounding the Codelco-SQM deal sets a major precedent of great gravity that has throughout the process exposed a lack of the most minimal transparency standards and respect for the rights of minority shareholders,” it added.

The SQM-Codelco deal was finalized in May and Tianqi had until Saturday to file the appeal.

CMF made the ruling in June, saying the decision was not appropriate for a shareholder vote and should instead be resolved by SQM’s board of directors.

Though companies have scrambled for control over the metal used to build batteries fueling electric vehicles, prices that rose rapidly through 2022 have since slumped over a supply glut and weaker-than-expected demand.

(By Daina Beth Solomon and Sarah Morland; Editing by Daniel Wallis and Rod Nickel)

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

 

One Australian Research Vessel is Racking Up a String of Wreck Finds

RV Investigator has a range of tools that allow for successful seafloor discoveries. CSIRO/Owen Foley

Published Jul 28, 2024 9:20 PM by The Conversation

 

[By Toni Moate and Emily Jateff]

On August 23 1969, the coastal freighter MV Noongah departed Newcastle bound for Townsville with a cargo of steel and 26 crew. The 71-meter ship had been a regular sight along the eastern seaboard for a decade as it hauled cargo between cities up and down the coast.

Two days later, the vessel disappeared in the night beneath ten-metre waves, lashed by a violent storm. Tragically, only five of the 26 crew would be rescued during one of the largest searches for survivors in post-war Australian maritime history. As for the MV Noongah, its resting place would remain a mystery.

Until now.

While on a research voyage to study submarine canyons off the New South Wales coast, a team aboard the CSIRO research vessel RV Investigator became the first to set eyes on MV Noongah in nearly 55 years. This discovery was no accident. It was part of a collaborative project and a targeted investigation to help identify a mysterious shipwreck.

It’s also no coincidence there have been several shipwreck discoveries in the news recently. Australia’s national science ship has developed an impressive record as a shipwreck sleuth.

What is RV Investigator?

RV Investigator is part of the Marine National Facility – a national research infrastructure operated by CSIRO, Australia’s national science agency.

All Australian researchers and their international collaborators can access the capabilities of RV Investigator. This makes it a collaboration hub for marine research. And it’s been an important factor in many of the recent shipwreck discoveries.

Over the past ten years of operation, more than 150 institutions have collaborated to deliver science on voyages. Usefully, RV Investigator can accommodate multiple projects on each voyage. The research has ranged from fisheries’ surveys and seafloor mapping to atmospheric studies and, of course, maritime heritage surveys.

RV Investigator is equipped with a suite of advanced acoustic systems. It also has three seafloor mapping systems, called multibeam echosounders. These allow for high-resolution measurements (bathymetry, literally meaning “deep measurement”) of the seafloor, from shallow coasts to full ocean depth.

These systems map the seafloor everywhere the vessel goes, both through data collection while underway, and through targeted surveys.

Both the distance RV Investigator travels during its annual research program and the volume of bathymetric data it collects are immense. This greatly increases the likelihood of making seafloor discoveries.

Over the past ten years, RV Investigator has travelled more than 500,000 kilometers and mapped more than 3 million square kilometers of Australia’s marine estate. It has circumnavigated the continent several times.

All this has provided an opportunity to investigate many suspected shipwreck sites. These are often “piggyback” projects – ones that are added to the voyage but use no additional resources.

The power of collaboration

Shipwreck discoveries are impossible without collaboration. The maritime community, heritage agencies, research agencies and members of the public have all contributed to the recent shipwreck finds.

It is not uncommon for searches to be targeted by local knowledge from fishing communities, volunteer shipwreck hunters and even historians who have pieced together clues on the potential location of shipwrecks.

Outreach to those affected by the findings is also invaluable. This includes the survivors of these tragedies and the families of those lost at sea, to keep them informed throughout the process.

Shipwreck discoveries can literally change lives – like the reunion of two siblings who spent their lives apart as orphans after their father died onboard SS Iron Crown in 1942.

‘Eyes’ in the depths

RV Investigator also has specialized drop cameras that can provide a view of the seafloor at depths up to 5,000 meters. The visuals provided by these have been essential for identifying shipwrecks once found.

In 2023, a CSIRO team used this camera system to help identify the wreck of SS Nemesis, a steamship that was lost in 1904 off the coast of New South Wales. Also in 2023, an unidentified wreck off the southwest coast of Tasmania gained a name – it was the coastal freighter MV Blythe Star which capsized and sank in 1973.

The large areas of seafloor mapped by RV Investigator have also led to unexpected discoveries. The wreck of the 1890s iron barque Carlisle in Bass Strait in 2017 was a “chance encounter” for the vessel.

A view of the stern of MV Blythe Star. CSIRO

Why hunt for shipwrecks?

These discoveries are important for several reasons. Finding and analyzing a shipwreck can help us understand the circumstances that led to these tragedies. It can also help provide closure to affected communities whose loved ones were lost at sea.

Knowing the current state of the shipwreck is important for heritage professionals and agencies who manage and protect the sites. Some shipwrecks are at risk of creating environmental damage such as fuel or oil leaks, so having data on them is vital for managing those risks.

RV Investigator is currently scheduled for a series of scientific upgrades, including its acoustic systems. With 8,000 shipwrecks scattered around Australia’s coastline, and more than half of those undiscovered, there are many more maritime mysteries to solve.

Toni Moate is Chair of the National Marine Science Committee and Director of CSIRO National Collections and Marine Infrastructure.

Emily Jateff is an adjunct lecturer in archaeology at Flinders University.

This article appears courtesy of The Conversation and may be found in its original form here. 

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.