The miner and trader’s own sourced copper production fell 4% to 705,200 metric tons, while its own sourced cobalt output fell 18% to 26,500 tons.

Glencore left its overall 2024 outlook for copper, a metal needed for energy transition applications, unchanged at between 950,000 and 1.01 million tons.

Its trading division, whose profit hit a record $6.4 billion in 2022, includes coal, oil, liquefied natural gas and related products, as well as metals.

Glencore expects its full-year marketing earnings before interest and tax (EBIT) in the $3 billion-$3.5 billion range, around the top-end of the firm’s long-term forecast range of $2.2 billion to $3.2 billion.

The miner has kept its coal business after concluding the purchase of Teck Resources’ coking coal assets and securing backing from a majority of its investors who see lucrative earnings from the fossil fuel.

CEO Gary Nagle in August said the company could acquire more steelmaking coal.

It is one of the largest producers and exporters of thermal coal, with an expected output of between 98 million and 106 million tons this year. It produced 73.1 million tons so far, 7% lower than year-ago levels.

Its 2024 steelmaking coal production should increase to 19 million-21 million tons post-acquisition, from 7 million-9 million tons.

(Reporting by Clara Denina; Editing by Jason Neely and Sherry Jacob-Phillips)

Cadia becomes Newmont’s first site globally to receive these awards after successfully meeting more than 30 criteria needed in critical areas including environment, community, human rights and governance, amongst others.

Cadia is currently host to Australia’s largest underground mine, and now becomes the third copper mine in the country to receive The Copper Mark. It is also the only operating molybdenum mine in Australia, thus becoming the first to achieve The Molybdenum Mark.

The Copper Mark represents the leading assurance framework to promote responsible, sustainable and ethical practices across the copper, molybdenum, nickel and zinc value chains.

“Meeting growing global demand for copper brings an obligation to sustainability and responsible mining which prioritizes environmental stewardship, social responsibility and economic development for the communities in which we operate,” commented Newmont’s chief safety and sustainability officer Suzy Retallack.

In achieving The Copper Mark, she said the company’s global customers can now choose to source copper concentrate from an independently evaluated mine that “meets the highest standards in environmental, social and governance practices, responding to the increasing demand for sustainable supply chains.”

With this, about 35% of Australia’s copper is produced at sites that have obtained The Copper Mark, noted Michèle Brülhart, The Copper Mark’s executive director.

The Cadia operation is located approximately 25 km south-southwest of Orange in New South Wales and 250 km west of Sydney. It comprises the Cadia East underground mine, one of the largest gold and copper deposits in the world, and the Ridgeway underground mine, which is currently in care and maintenance.

In 2020, Cadia entered into a 15-year renewable power purchase agreement (PPA) with Tilt Renewables Limited to buy 55% of the wind farm’s output. Now fully operational, Rye Park is supplying approximately half of Cadia’s power needs.

“Cadia’s commitment to the community supported an investment of almost A$6 million in the 18 months to December 2023 to support community projects, education and infrastructure,” Retallack said.

After the port’s inauguration in mid-November, it will initially cover a direct route to Shanghai and then may ship to other points in the Asian market, depending on demand, said Carlos Tejada, general manager of Hong Kong-based Cosco’s local subsidiary, Cosco Shipping Chancay Peru.

“At the end of November, we will begin the stage known as ‘test conditioning,’ which we expect to run until May. However, during this soft launch phase, we can already handle actual cargo, with two direct vessels per week,” the executive told reporters following a Peruvian-Chinese business forum.

Tejada said that cabotage routes will be opened with smaller ships from Colombia, Ecuador and Chile, whose cargo will later be shipped to Asia from Chancay, initially in ships carrying up to 14,000 containers, which will then be progressively increased to larger vessels holding up to 24,000 containers.

Cosco Shipping Ports owns and will operate the port with a 60% stake, with the remaining 40% held by Peruvian miner Volcan, which is controlled by Glencore.

(By Marco Aquino and Brendan O’Boyle; Editing by Adam Jourdan)

Explorers and developers often overstate the certainty of mineral resource classifications based on inadequate data, Desharnais said at an event in Vancouver on Wednesday. The practice has in some instances led to unexpected analyst downgrades, soaring costs and debt, and the derailment of promising assets.

“That classification debt, unfortunately, needs to get paid,” he told about 430 conference participants from 21 countries at CIM’s first Mineral Resources & Mineral Reserves conference. “The CEO may be walking around with a 3-million-oz. resource estimate, but they haven’t earned that classification with sufficient drilling. When the debt comes due, it’s often through painful reclassifications and revisions.”

Decade of missteps

Several recent projects have demonstrated the high cost of classification debt.

Rubicon Resources’ catastrophic 91% downgrade in resource estimates in 2015 stands as one of the most glaring examples. After it began initial production at the F2 gold deposit on its Phoenix property in Ontario’s Red Lake district, the company found the deposit to be uneconomic, shuttering the operation. It had not completed a feasibility study for the high-grade project.

The size of the downgrade blindsided investors and stakeholders, and the company had to undergo a painful restructuring to survive. Rebranded as Battle North Gold, Evolution Mining (ASX: EVN) bought it and its renamed Bateman project in 2021 for $343 million.

In 2018, Pretium Resources promoted the Brucejack gold project in northwestern British Columbia’s Golden Triangle, now owned by Newmont (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM), as a high-grade gold deposit. Yet, the asset disappointed when gold production grades fell far below expectations.

The nuggety nature of the gold, with Brucejack’s steeply dipping quartz veins and erratic grade distribution, made it difficult to consistently meet production targets, forcing the company to push tonnage through the mill to compensate for lower-than-expected grades.

Aurora (2018), Rainy River (2019), and Gold Bar (2020) show how resource overestimation hurt Guyana Goldfields, New Gold (TSX: NGD; NYSE: NGD) and McEwen Mining (TSX: MUX; NYSE: MUX). They had to downgrade estimates mid-operation. This triggered mine plan revisions, soaring costs, production delays, and financial strain.

Grade versus geometric risk

Desharnais identifies two types of risk that contribute to resource misclassification: grade risk and geometric risk.

Grade risk reflects patchiness in ore quality, while geometric risk involves uncertainty about the size and shape of mineralized domains within the deposit.

Conditional simulations help assess grade risk, Desharnais said, but tools to quantify geometric risk are lacking.

Companies often overestimate deposit geometry without tighter drilling, leading to costly misjudgments.

“Sparse drilling gives us a simpler picture than reality,” he explained, adding that only closely spaced drilling can reveal the true complexity of orebodies.

Best practices

Mathieu Doucette, a senior geologist at ArcelorMittal (NYSE: MT), talked about the difficulty of classifying resources at Canada’s largest iron mine, the Mont-Wright iron ore mine in Quebec, producing continuously since 1974. Outdated data can affect current resource estimates. He illustrated how mixing in fresh drill holes helps manage geological risk as part of a dynamic model essential to avoid misclassification.

“The first thing [a QP] will do is akin to lighting a torch,” he said. “But everything on the edges is dark, and you can’t really see it. Drill holes are our ability to try and get some information, but sparse data hides the full picture.”

David Machuca-Mory, a principal consultant at SRK Consulting, said fixed models are risky. Deposits can be more unpredictable than they seem. Adaptive methods help ensure estimates reflect reality, reducing the chance of costly surprises.

“Even with dense drilling, some areas remain highly uncertain,” Machuca-Mory said. “Confidence intervals are large, and relying solely on drill spacing doesn’t always guarantee accurate classification.”

Cognitive biases

Desharnais said that misclassification is not just a technical problem; human psychology plays a significant role.

Anchoring bias makes companies stick with initial estimates despite new data. Authority bias pressures geologists and consultants to confirm favourable results to please management or investors.

“The consulting firm wants the next contract,” Desharnais said. “The CEO has family and friends invested and needs good news. These biases create a system where classification debt builds up across projects, only to be paid through painful revisions later.”

Owning up

Desharnais argued for more conservative resource models and said benchmarking against operating mines would help set realistic expectations. He suggested that technical reports include histograms that show the distance between drill holes and classified resources, he added.

“It forces the QP or CP to look at what they’ve done and ask: Does this make sense?” he said. “Transparent reporting would help prevent overly aggressive classifications, ensuring companies earn their resource classifications with sufficient data.”

Such measures may slow development, but they could also reduce the prevalence of misclassified resources in the industry. Desharnais urged geologists to scrutinize each block of material above the cut-off grade.

“Over-promising today only delays the inevitable correction tomorrow,” he said.

After buying mining assets around the world over the past two decades to secure metals needed for industrialization and more recently to meet its carbon emissions targets, China now wants a bigger say in how prices of those metals are determined.

But it has lost market share in metals futures trading and needs to persuade international investors to use the Shanghai Futures Exchange (ShFE), according to interviews with more than 10 brokers, traders, analysts, risk managers and consultants with direct knowledge of ShFE’s plans.

If successful, the push would help give Shanghai’s contracts benchmark status and upend the system for reference prices of industrial metals in place since 1877 when the London Metal Exchange (LME) started life above a hat shop in London.

ShFE benchmarks would eliminate the need for Chinese firms to link their physical contracts to LME prices and create a need for foreigners to trade on ShFE to influence reference prices in their contracts, shifting market sway from the west to China.

In recent meetings, the exchange told industry players the plan is high on its agenda and was likely to be put in place soon, but it did not discuss deadlines, two people said.

ShFE did not respond to requests for comment or to questions on timelines, amounts available to invest in this project, the challenges it faces or how success would be measured.

However, state media in June reported Wang Fenghai, general manager at ShFE, as saying: “Only through opening up can we draw in foreign investors, participate in the process of ShFE’s price establishment, therefore enhance price influence.”

Wang added that cross-border delivery capability was an area ShFE would focus on in terms of attracting global participation.

In a key step, the exchange has been looking to line up warehouses outside China to store metal delivered for copper contracts that were launched on its International Energy Exchange (INE) for foreigners in 2020.

ShFE has told industry stakeholders it intends to expand soon into international metals storage, two other sources with direct knowledge said, bidding to rival the LME’s global network of more than 450 registered warehouses that hold thousands of tons of aluminum, copper and other metals.

“They (ShFE) have a plan, they are coming out, they will list warehouses outside China, … the government wants this to happen,” one source familiar with the exchange’s thinking said.

While the metals industry has known since last year that ShFE plans to line up warehouses offshore, starting in Singapore, its latest comments to foreign firms suggest it is closer than ever to going ahead.

“A real price people want to use needs warehouse stocks the world over,” a source at a consultancy with knowledge of ShFE’s plans said.

Once ShFE makes a firm decision to offer metal storage outside China, the process of registering warehouses would be a matter of weeks if not days, as facilities already exist at ports that see large flows of metals, warehousing sources said.

ShFE will not need regulatory approvals for warehouses that can store metal deliverable against its contracts as long as they are located in free trade zones, so metal can be stored free of taxes until delivered to customers.

Singapore makes a good starting point as it is already a location for LME warehouses, which means the regulatory framework already exists.

All of the people who spoke to Reuters asked not to be named as their conversations with ShFE were private.

Rivals take market share

The Shanghai exchange faces a difficult road countering the LME, even as China consumes more than half of global supplies of copper, aluminum and zinc and produces large amounts of these metals.

“Any exchange that wants to achieve internationalization would face challenges … ShFE would face many challenges and various constraints if it aims to become a global pricing center,” Luo Xufeng, chairman of Nanhua Futures told Reuters.

Ultimately the exchange aims to list aluminum, zinc, nickel, lead and tin on the INE, sources with knowledge of ShFE’s plans said. Those metals are already traded on the LME, the world’s largest and oldest forum for metals, owned by Hong Kong Exchanges and Clearing (HKEx).

On the LME, volumes for copper, essential in construction, power systems and electrical goods, have stabilized at around 60% of copper futures globally.

But ShFE’s domestic market has lost ground to US-based COMEX, part of CME Group, since 2015, with ShFE last year accounting for around 15% of copper futures traded globally, while COMEX’s share was 22%.And in the first nine months of 2024, trading volumes on ShFE’s INE copper futures have dropped nearly 43% from the same period last year.

“The only way to increase volumes is get more international involvement in ShFE,” a metals trader with direct knowledge of the matter said, adding that China’s government was behind the project to internationalize ShFE’s contracts.

The China Securities Regulatory Commission (CSRC), which regulates ShFE, and the State Council, China’s cabinet, did not respond to questions from Reuters.

Meanwhile, LME is working on plans to list new contracts using ShFE prices and is set to approve the expansion of its metals warehousing network into Hong Kong before the end of this year.

LME said it intends to “deepen our collaboration with ShFE by working together in product innovation to better serve international participants in risk management and price discovery,” in response to a request for comment on its plans.

Hurdles for ShFE

ShFE’s ambition has been long in the making. When HKEx bought the London exchange in 2012 with a plan to turbo-charge revenues by expanding LME warehousing into China, ShFE told local authorities it could mimic the LME’s network and give China power and influence over global metals markets.

Some of that influence would come from more foreigners trading on ShFE having to hold yuan accounts, which would boost Beijing’s aim to gain global acceptance of its currency. Contracts on ShFE and its INE platform are priced in yuan.

“ShFE has been trying to do this for over 10 years,” said Dan Smith, head of research at Amalgamated Metal Trading.

“The biggest challenge is that there are still restrictions on the conversion of yuan to dollars.”

China’s currency exchange controls that limit the amount of money companies can take out of the country at any one time, partly a measure to control currency volatility, are potential deterrents for foreign investors.

Sources also mentioned fear of Chinese authorities’ policies designed to steer commodities markets and government market interventions, such as on margin requirements – the deposits of cash or collateral clearing houses need to cover potential losses.

“They don’t like volatility. They could double, triple transaction fees and margins overnight if they want. It makes people nervous,” a source familiar with the matter at a resources-focused fund said.

(By Pratima Desai, Siyi Liu and Beijing Newsroom; Editing by Veronica Brown, Tony Munroe and Sonali Paul)

The North Island project resource now totals 906 million tonnes indicated grading 0.16% copper, 0.24 g/t gold and 75 ppm molybdenum, for total contained metal of 6.3 billion lb. copper equivalent, plus an additional 214 million tonnes inferred grading 0.12% copper, 0.22 g/t gold and 52 ppm molybdenum for 1.3 billion lb. CuEq.

“The project now boasts over 3 billion lb. of copper and nearly 7 million oz. of gold in indicated resources, making it one of the largest copper and gold porphyries in Canada not currently owned by a major,” Northisle CEO Sam Lee said in a news release.

The updated resource, which integrates the Hushamu, Red Dog and Northwest Expo deposits, represents a culmination of the company’s exploration program over the past four years. The results, according to Lee, will form the basis of a new PEA that contemplates lower initial capital intensity leading to a potentially larger project and longer life of mine.

The previous PEA in 2021 only included the Red Dog and Hushamu deposits, and outlined a 22-year mine life with average annual production of 177 million lb. of CuEq over the first six years, including 112 million lb. of copper, 112,000 oz. of gold and 2.7 million lb. of molybdenum.

The PEA also presented project economics: C$1.1 billion in after-tax net present value (at 8% discount), 19% after-tax internal rate of return, and a payback period of 3.9 years. The project capex is estimated at C$1.4 billion due to existing infrastructure from historical mining, as the North Island project is situated adjacent and northwest of BHP’s now closed Island copper mine.

Shares of Northisle Copper and Gold surged following the resource update, up 8.5% to C$0.44 apiece by noon ET. The company’s market capitalization is estimated at C$106.2 million.

“No promises, but they’re interested in the project, and for us it would be ideal to get IQ as a partner,” CEO and chairman Robert Wares said in an interview. “That would be a big boost, and as partners obviously they can help us fund the whole project to a final investment decision.”

Wares figures that reopening the former Noranda mine, about 575 km northeast of Quebec City, could see it become the biggest undeveloped copper asset east of the Mississippi. It could cost C$1.8 billion in initial capital spending, he said. The Copper Mountain deposit at the site holds 495 million indicated tonnes grading 0.3% copper, 0.016% molybdenum and 1.75 grams silver per tonne, Osisko said on May 6.

The resource contains 3.2 billion lb. copper, 180 million lb. molybdenum and 27.9 million oz. silver. It could be shovel-ready in early 2029 after acquiring permits by the end of 2028, said the CEO, who was part of the developers of the Canadian Malartic gold mine. That producer, now held by Agnico Eagle Mines (TSX: AEM; NYSE: AEM), is vying to be Canada’s largest.

Wares is bullish on rising copper demand and the lack of adequate new supply to feed global electrification efforts. Developing a project in a jurisdiction with straightforward permitting requirements is also a plus.

“In four years-time, we fully expect the copper price to be extremely healthy,” he said. “The tier one deposits outside of Africa that are going into production, you can count on one hand.”

Partners required

Private equity also could be an option for Gaspé as Wares says developing mining projects these days requires partners. He cited how Osisko Mining (TSX: OSK) — another company founded by the Canadian Malartic team — brought in Gold Fields (NYSE: GFI; JSE: GFI) to advance Windfall.

Then last month the South African major took out the whole company for $1.6 billion. Wares is keen to avoid share dilution from stock offerings or taking on debt that might want the whole project as collateral.

“I’m hoping IQ would step in at 20-25%. They rarely go more than that,” Wares said. “It would allow us to avoid more equity financings in the dismal market, still, for the resource sector.”

The company has completed around half of 8,000 metres of drilling this year, with assays pending. Background studies for the preliminary economic assessment (PEA) due early next year are advancing, the CEO said.

Pine Point

Osisko Metals also holds the Pine Point zinc-lead former mine in the Northwest Territories, which is starting a feasibility study this quarter. London-based private equity firm Appian Capital Advisory plans to spend C$100 million to hold 60% of the project.

In June, Osisko reported a tripling of Pine Point indicated tonnes to 49.5 million grading 4.22% zinc and 1.49% lead (5.52% zinc equivalent) in combined open pit and underground resources. Inferred resources total 8.3 million tonnes grading 4.22% zinc and 1.69% lead (5.64% zinc equivalent).

A 2022 PEA forecast it would cost C$653 million to build a 12-year open-pit and underground operation at Pine Point. The mine would produce an annual average of 329 million lb. zinc and 141 million lb. lead, according to the study. It pegged a C$602 million net present value at an 8% discount, and an internal rate of return of 25%.

Regional hits

At Gaspé, Noranda produced 150 million tonnes of copper concentrate from 1955 until the mine closed in 1999. The area has been hard hit since the closure, with a large sawmill also shutting, then a federal moratorium on cod fishing followed this year by one on shrimp, Wares noted.

Sentiment for the Gaspé project is improving after some initial opposition about potential noise pollution and dust. Members of the community, area mayors and the provincial legislature representative attended the company’s annual information session in the local town of Murdochville this month, Wares said.

“This is the true mining town. They all want to see the mine reopened. Murdochville has obviously been in economic decline since the mine and smelter closed in 2003 so things can’t remain as they are. Like most mining towns, they eventually just follow the decline and turn into ghost towns so this is a great way to revamp it.”

The report estimated an after-tax net present value (at 8% discount) of $472 million with a 22% internal rate of return. This represented an upgrade on the capital estimates presented in the pre-feasibility study, with more than double the NPV and a slightly higher IRR.

In addition, the FS has added another year of production to the molybdenum operation, now estimated at 12 years with total production of 146 million lb., including more concentrates produced during the first four years.

The FS is based on proven and probable molybdenum reserves of 161 million lb., measured and indicated molybdenum resources of 63 million lb. and inferred molybdenum resources of 17 million lb. at the Thompson Creek mine. The average reserve grade is 0.065% molybdenum.

On a standalone basis, the Thompson Creek mine has an after-tax NPV of $185 million and IRR of 15%, using an assumed flat molybdenum price of $20/lb. over the life of mine. Initial capital to build the mine is estimated at $397 million.

“Following significant progress on permitting efforts in the second quarter 2024, we have pivoted from a two-phased approval to a single-phase capital investment of $397 million over three years from now,” Centerra CEO Paul Tomory said, adding that the mine is targeted to resume production in late 2027.

“Our total project costs guidance at Thompson Creek for the second half of 2024 is expected to be $55 to $65 million. We will provide 2025 guidance for Thompson Creek with our annual guidance that is expected to be published early next year,” he added.

Tomory also noted that the Langeloth facility would be a key contributor to the molybdenum operation, generating approximately $50 million of earnings before interest, taxes, depreciation and amortization (EBITDA) a year. Langeloth represents one of three molybdenum conversion facilities in the US, and has been in operations since 1924.

Thompson Creek first began operations in 1983 as an open pit mine, producing molybdenum disulfide concentrates that would be processed into technical grade molybdenum oxide, with the majority of concentrate historically processed at the Centerra-owned Langeloth facility.

In 2016, Centerra acquired the Thompson Creek mine in a deal valued at $1.1 billion. Over a two-year period prior to the suspension of the Thompson Creek mine in December 2014, the volume of molybdenum roasted at Langeloth was around 37 million lb. per year.

The Teamsters Canada Rail Conference union on Friday issued a fresh 72-hour notice to Canadian National Railway (TSX: CN; NYSE: CN) that its 6,500 members will down tools at CN from 10 a.m. EST Monday. Union bosses say there has been no progress around the negotiation table.

“We do not believe that any of the matters we have been discussing over the last several days are insurmountable,” the Teamsters told CN in a notice. ”We remain available for discussion in order to resolve this matter without a further work stoppage.”.

On Thursday, the federal Labour Minister Steven MacKinnon referred negotiations to binding arbitration, which ended a CN lockout that began midnight Wednesday. But a strike at Canadian Pacific Kansas City Railway (TSX: CP; NYSE: CP) continues. The union criticizes the government’s decision, accusing it of undermining collective bargaining. Minister Steve MacKinnon has vowed back-to-work legislation.

It’s a rare occurrence for both of Canada’s major rail networks to stop operating at the same time. Industries depend on them for transport across the country and thousands of kilometres of tracks in the United States and Mexico, in CPKC’s case. However, the strike only affects Canadian operations.
Mining products account for more than half of Canada’s rail-freight volume, with over 160 million tonnes of crude and processed minerals transported in 2022. The sector typically generates over C$6 billion annually in rail freight expenditures.

The Mining Association of Canada (MAC) and the Saskatchewan Mining Association (SMA) expressed deep concern over the first-ever simultaneous rail disruption.

“As the single largest industrial customer group of Canada’s railways, the mining sector has seen first-hand how detrimental unpredictable work stoppages are to Canada’s reputation as a reliable trading partner,” Pierre Gratton, MAC’s president and CEO, said in a statement Thursday before the labour minister acted.

Fertilizer impact

Nutrien (TSX: NTR; NYSE: NTR), one of the world’s largest potash producers, expressed its frustration with the labour dispute in a statement before the arbitration order.

“We are disappointed that the parties involved in this dispute have failed to prevent what has become another significant disruption to vital supply chains serving the agricultural industry,” Nutrien’s chief commercial officer, Mark Thompson, said by email to The Northern Miner. The company relies on Canadian rail to deliver essential crop inputs globally, directly impacting global food security.

German-owned K+S Potash Canada, which operates the Bethune mine in Saskatchewan, said it was prepared to maintain operations. “If required, slight adjustments can be made; however, a prolonged work stoppage will have potentially significant impacts to our operation and production,” spokesperson Sydney Gossard said in an email to The Northern Miner.

Landlocked Saskatchewan’s mining industry relies heavily on rail service to export products like potash. The province’s potash, valued at C$10.9 billion in 2023, represents about a third of the world’s supply, according to the SMA.

“Rail is the only way to transport bulk tonnage product to export markets,” Pam Schwann, SMA president, said in a statement. “Even a few days of stopped or delayed services takes the system weeks to recover, with a cost in the billions of dollars.”

Schwann warned that prolonged disruptions could further erode Canada’s market share to global competitors like Belarus and Russia, particularly in potash, where Canada has already experienced setbacks due to previous strikes.

Other routes

Vancouver-based Teck Resources (TSX: TECK.B) said it sought alternative transportation methods to ease the disruption.

“The interruption of rail service is negative for our partners and customers in the critical minerals supply chain,” Teck spokesperson Maclean Kay said in a statement to The Northern Miner. “We encourage all parties and government to resolve this dispute before there are further negative impacts.”

Canada’s largest uranium miner, Cameco (TSX: CCO; NYSE: CCJ), said by email it was concerned about the railed supply of anhydrous hydrogen fluoride to its Port Hope Conversion Facility in Ontario.

Miles apart

Both rail companies had cited union demands as obstacles. CN proposed improved wages and predictable schedules, while CPKC underlined its commitment to fair arbitration.

Teamsters president Paul Boucher alleged that CN and CPKC were willing to compromise rail safety and “tear families apart to earn an extra buck.”

“The railroads don’t care about farmers, small businesses, supply chains, or their own employees,” he said in a release. “Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”

Canada frequently sees rail disruptions. The 2023 West Coast Ports strike, the pandemic and civil disruption in the form of random and sporadic rail blockades have damaged Canada’s reputation as a reliable trading partner, the MAC contends.

“Canada can and must do better at creating a stable and predictable logistics supply chain that restores greater confidence in Canada’s reliability as a trading partner,” Gratton said. “Government should make every effort and use every tool at their disposal to address this unprecedented disruption.

“Failure to do so is an abdication of leadership and an abandonment of responsibility.”

A Rio Tinto spokesperson said the company’s contingency plans to minimize the impact included trucking certain materials and products and increasing use of its own rail network.

Teck said it was looking to use alternative transportation, without specifying. A spokesperson added that the interruption of rail service is negative for its partners and customers in the critical minerals supply chain.

Canada’s top two railroads, Canadian National Railway and Canadian Pacific Kansas City locked out more than 9,000 unionized workers on Thursday, triggering an unprecedented rail stoppage that threatens to cause billions of dollars worth of economic damage and disrupt North American supply chains.

Rio Tinto’s Canadian operations include production of iron ore, aluminum and diamonds. Canadian operations contributed $800 million to the company’s total revenue of $26.8 billion in the first half of 2024.

The lockout will be mostly felt in the iron ore and aluminum businesses, Rio Tinto said. It owns around 100 kilometres (62 miles) of railway for its aluminum operations and 400 kilometres of rail network for iron ore.

Teck’s Canadian operations include copper and molybdenum production at its Highland Valley, British Columbia mine, as well as zinc and lead smelting and refining at Trail, British Columbia.

(By Divya Rajagopal and Ismail Shakil; Editing by Franklin Paul and Rod Nickel)

The Vancouver-based explorer’s revised preliminary economic assessment (PEA) increases the porphyry project’s net present value (NPV) to almost $1.5 billion from $1.2 billion in a PEA from last October, both at an 8% discount rate. The new study issued on Tuesday lowers initial capital expenses to $1.1 billion from $1.3 billion in the previous effort.

The internal rate of return increases to 22.2% from 17.3%. However, sustaining and expansion capital costs rise to $1.7 billion from $1.1 billion over the 22.6-year mine life, 2.6 years longer than originally envisioned. Payback improves to 3.8 years from five.

The 20-stage open pit mine and processing plant in Sinaloa state would start at 60,000 tonnes per day in the first year of production as in the previous PEA. However, expansion to 120,000 tonnes per day would be moved to the eighth year instead of the second. The first PEA envisioned four pit stages.

“A staged approach to the mine expansion and a focus on exploiting the higher-grade near-surface material in the early years of mining has unlocked a considerable increase in value,” Oroco CEO John Lock said in a release. “We have established a plan that invokes a very efficient use of capital.”

Case vs peers

The company cited a metric of after-tax NPV per initial capital spending – $1.48 billion/$1.1 billion – that ranks Santo Tomas more efficient than other low-cost, large-scale copper projects. These rivals include Ivanhoe Electric’s (TSX: IE; NYSE-AM: IE) Santa Cruz project in Arizona, McEwen Mining’s (TSX: MUX; NYSE: MUX) Los Azules project in Argentina and Los Andes Copper’s (TSXV: LA) Vizcachitas project in Chile.

Shares of Oroco Resource jumped nearly 11% by early afternoon Tuesday in Toronto to C$0.39 apiece, valuing the company at C$94 million. They’ve traded in a 52-week range of C$0.32 to C$0.74.

The new PEA keeps Santo Tomas’ total payable copper production of about 4,774 million lb. while lowering the average annual life of mine cash cost to $1.54 per lb. copper on a byproduct basis from $1.66 per pound.

Oroco forecasts copper production would average 207.5 million lb. per year over the mine life at a mill feed average grade of 0.51% copper-equivalent. Production byproducts over the mine life are estimated at 138.7 million lb. of molybdenum, 55.2 million oz. of silver and 753,400 oz. of gold.

“The plan starts with the use of smaller equipment to provide rapid entry to the mineralized material and maintains a higher-grade feed profile to delay the requirement of an expansion,” Lock said.

Resource update

The new PEA updates the Santo Tomas resource to 540.6 million indicated tonnes grading 0.33% copper, 0.008% molybdenum 0.03 gram gold per tonne. It also has 530.3 million inferred tonnes at 0.31% copper, 0.007% molybdenum and 0.002 gram gold.

That compares with 561 million indicated tonnes at 0.37% copper-equivalent and 549 million inferred tonnes at 0.34% copper-equivalent in last year’s PEA.

The new resource was based on prices of $4 per lb. copper, $13.50 per lb. molybdenum, $1,700 per oz. gold, and $22.50 per oz. silver.

Production at Santo Tomas would be preceded by two years of construction and pre-stripping as in the previous study, Oroco said.

The 90-sq.-km Santo Tomas lies in northern Sinaloa and southwest Chihuahua. Oroco holds an 85.5% interest in the 11.7-sq.-km central concessions, plus an 80% interest in the surrounding 78.6 sq. km.

The new PEA was based on data from more than 43,000 metres of drilling by Oroco as well as over 21,000 metres of legacy drilling in the North and South zones.

The Canadian miner had tried to reach an agreement with one of three unions representing approximately 30% of Caserones employees, or 5% of the total workforce at the Caserones, prior to the strike.

In a press release Monday, Lundin said it remains willing to participate in meetings to reach a resolution with the union, and is committed to the “highest standards for integrity and transparency” and looks forward to returning its focus to safe and sustainable mining at Caserones.

In April, Caserones was able to successfully negotiate a new collective bargaining agreement with one of the other two unions, which also represents approximately 30% of the employees.

The company recently upped its stake in Caserones to 70% after exercising an option with Japan’s JX Nippon Mining & Metals. The mine represents one of Lundin’s trio of key assets in or around northern Chile, the other two being the 80%-owned Candelaria mine in the Atacama region and the Josemaría project in Argentina.

This year, the Caserones mine is expected to produce 120,000 to 130,000 tonnes of copper and 2,500 to 3,000 tonnes of molybdenum on a 100% ownership basis.

In a press release Monday, the company said it has notified the Yukon Environmental and Socio-Economic Assessment Board (YESAB) of its intention to submit the ESE statement in July 2025 instead of the second half of 2024.

The decision follows a detailed review of the guidelines during the winter of 2023, followed by updated work planning and schedule mapping in conjunction with further conversations and development of engagement plans with First Nations that led to a clearer picture of the associated timelines to produce the ESE statement.

The statement would form the basis of Western Copper’s application for the YESAB’s panel review, which is the highest level of environmental and socio-economic assessment in the territory.

The Casino project is located on Crown Land approximately 150 km northwest of Carmacks, and 300 km northwest of Whitehorse. Western Copper has been developing the project since 2008, and in 2014 submitted its project proposal. In 2016, the Casino project was referred by the YESAB executive committee for panel review, becoming the first in Yukon’s history.

“Western is committed to ensuring a robust review of the Casino project, as the first and only project in the Yukon going through the highest level of review and relying on the most up-to-date methodologies in environmental assessment,” CEO Sandeep Singh said in a statement.

Once the ESE statement is submitted, the YESAB will determine whether it meets the requirements set out in its revised 2023 guidelines, and if so, a panel will be established to lead the technical analysis of the statement.

The panel will then hold a public hearing and ultimately issue its recommendations, which will then be reviewed by the decision bodies — which include territorial and federal government departments as well as two Yukon First Nations — to decide whether to issue permits for the Casino project.

The project lies within the Traditional Territory of the Selkirk First Nation. A small portion in the north of the project area also lies within the Traditional Territory of the Tr’ondëk Hwëch’in. First Nations groups had previously expressed concerns about building an access road through hunting grounds and proposed tailings arrangements.

“We look forward to compiling all the hard work and proper science that has already gone into the project and moving steadily towards submission,” Singh said, adding that the company is closely monitoring the situation in the Yukon following the heap leach accident at the Eagle mine in June.

“The company welcomes the proposed investigation of the failure and believe that Casino’s assessment timeline will more than allow for the incorporation of any lessons learned through that process,” he added.

The proposed Casino open-pit mine is expected to use heap leach recovery methods on top of milling and flotation concentration to produce approximately 6.95 million oz. of gold, 36.09 million oz. of silver, 4.27 billion lb. of copper and 346 million lb. of molybdenum over the 27-year life.

According to a 2022 feasibility study, the Casino project holds 1.2 billion tonnes in proven and probable reserves grading 0.2% copper, 0.2% gold and 0.02% molybdenum for 5.1 billion lb. copper, 8.5 million oz. gold and 572 million oz. molybdenum.

The project has a C$2.3 billion after-tax net present value at an 8% discount rate, an 18.1% internal rate of return, a three-year payback period and C$10 billion in cash flow over the mine life. Sustaining capital would be C$751 million for total capital costs of C$4.4 billion.

When Leticia Carvalho takes office on Jan. 1, she’ll become the first woman and the first scientist to helm the United Nations-affiliated organization responsible for the fate of 54% of the world’s seabed. A former environmental regulator in Brazil, Carvalho, 50, currently serves as an official at the UN Environment Programme in Nairobi.

Carvalho’s election Friday at the annual summer meeting of the ISA Assembly in Kingston, Jamaica, ends the two-term tenure of Michael Lodge, a 64-year-old British attorney. Lodge aggressively pushed for the completion of regulations that would allow a potentially multibillion-dollar industry to begin, and drew scrutiny for his closeness to the mining companies the Authority regulates.

The vote by ISA member states — which came down 79-34 for Carvalho — also follows a contentious election campaign. It was marked by accusations that a key Lodge supporter tried to bribe Carvalho to drop out of the race in exchange for a top job at the ISA.

In an interview last month, Carvalho told Bloomberg Green that as secretary-general she would focus on science and act as a neutral administrator of the ISA, which includes 169 member states and the European Union. “Transparency and accountability is my top priority,” Carvalho said.

The ISA has already issued 32 contracts to private and state-backed companies to prospect for cobalt, nickel and other metals across more than 1.3 million square kilometers (500,000 square miles) of the seabed in international waters. Last year, the organization set a target of July 2025 for the adoption of complex rules to govern those mining efforts. But Carvalho said years of negotiations may still be needed to ensure that biodiverse and little-known deep sea ecosystems are protected from the most harmful effects of mining.

“There is a big amount of work to be done,” she said. “Logically, I can tell you that it’s unlikely that this is going to be accomplished by the current deadline.”

Complicating matters, scientists last month published findings that the polymetallic nodules targeted for mining in the Pacific Ocean actually produce oxygen — an extraordinary discovery that several ISA delegates cited in Kingston as a reason to slow mining efforts.

A record number of member states were present at this year’s meeting, where tensions over the future of deep sea mining were on display. Some 32 ISA member states have called for a moratorium or a pause on seabed mining, with five countries joining this week.

Adding urgency to the proceedings is The Metals Company (TMC), a Canadian-registered mining venture that has made clear its intention of applying for a mining license this year, regardless of whether regulations are in place, and its plans to start mining operations in early 2026 if the application is approved. TMC has mining contracts with the small Pacific island nations of Nauru, Kiribati and Tonga. The first area of the ocean to be mined is a vast stretch of the Pacific between Hawaii and Mexico.

“This is colonialism by another name, economic imperialism, where multinational mining companies prioritize profits over the wellbeing of our people and ecosystems,” Surangel Whipps Jr., the president of the Pacific island state of Palau, told delegates this week.

Palau has led the efforts to impose a moratorium on deep sea mining until its environmental impacts are better understood. Numerous delegations stated that they would not approve any mining licenses until regulations are adopted.

Although her home country of Brazil has urged a 10-year moratorium on mining, Carvalho said it’s not appropriate for the secretary-general to take a position on the issue. “A pause or moratorium is an advocacy position of many, but so far it hasn’t got onto the agenda of the ISA,” she said.

Other delegations, including China, Japan, and some African nations, pressed the ISA to fulfill its legal mandate to enact regulations so mining can begin. “Within our blue Pacific continent, deep seabed minerals hold immense potential for our prosperity,” said Sonny Williams, a delegate for the Cook Islands, a South Pacific archipelago.

TMC chief executive officer Gerard Barron said that he has met with Carvalho several times. “We like her,” he said. “I think she can bring harmony to the ISA at a time when it could really do with some.”

(By Todd Woody)

Iliamna Natives Limited and Alaska Peninsula Corporation, which represent the communities closest to the copper and gold mining project, sued the EPA for exceeding its authority related to the veto, Northern Dynasty said in a statement.

This lawsuit follows the one filed by the company in March against the EPA’s 2023 decision to prohibit the discharge of mining waste in Alaska’s Bristol Bay over concerns the materials would degrade the watershed and harm vital fishing ecosystems.

“Those who oppose Pebble have not provided any alternative that would improve the economy of this area. These two Native Village Corporations understand that the EPA and our opposition care little about their future,” said John Shively, CEO of the Pebble project.

The EPA, which claims the project would permanently destroy more than 2,000 acres of wetlands protected by the Clean Water Act, said it has no further information to provide as it is a pending litigation.

The proposed Pebble mine, which aims to tap one of the world’s largest copper and gold deposits, had gone thorough a lengthy approval and permitting process for decades, but its construction is yet to start.

(By Sourasis Bose; Editing by Shreya Biswas)

The miner, which now owns 51% of Caserones, is exercising an option agreed on in March last year with JX Nippon Mining & Metals Corp. The deal gave Lundin the right to acquire a majority stake in the Japanese firm’s subsidiary Lumina Copper, which is Caserones’ operator.

“We are pleased to expand our ownership in a long-life operation characterized by robust cash flow generation, further enhancing Lundin Mining’s presence in the region and strengthening our overall copper-dominant portfolio of high-quality base metal mines,” CEO Jack Lundin said in the statement.

The executive noted that exercising the company’s option early provides significant benefits to both parties.

“We secure additional copper production at an attractive acquisition price, while our partners receive an upfront payment and retain a meaningful 30% equity position in Caserones,” Lundin said.

Under the revised agreement, the Vancouver-based miner is entitled to a yearly operator fee in the form of a preferred dividend. This will increase from $21 million a year to $28 million a year, effective from the start of 2025.

Lundin said it would will initially fund the transaction from its revolving credit facility with the intention to re-finance the amount by increasing the current $800 million term loan to $1.15 billion.

Strategic asset

Caserones is expected to churn out this year 120,000 to 130,000 tonnes of copper, and 2,500 to 3,000 tonnes of molybdenum on a 100% basis.

The company recently secured a permit to expand the operation’s footprint and extend operations by another decade.

The mine is located at an altitude of 4,200m to 4,600m above sea level in Chile’s Atacama desert, just across the border from Argentina’s San Juan province.

Caserones is also close Lundin’s Candelaria (about 160km away) and only 20km from the miner’s Josemaría project in Argentina. This proximity, according to the company, introduces synergies and additional savings in terms of supply, logistics and management strategies not yet reflected in the life-of-mine plan.

On June 1, more than 500 workers at the mine located north of Williams Lake, BC, went on strike after talks over a new collective agreement broke down after months of negotiations. The current collective agreement expired on May 31.

In a statement by Unifor, their representative union, it was alleged that Taseko had “refused to negotiate basic terms” and “shown little interest in avoiding a disruption at the copper mine.”

The miner was subsequently forced to suspend mining and milling operations, leaving only essential staff on site to maintain critical systems.

Acquired in 1999, the Gibraltar mine is currently Taseko’s only producing asset, anchored by a large mineral reserve base that would support an average annual copper production of 130 million lb. until at least 2044.

Now in its 20th year of operations, Gibraltar is the second-largest open-pit copper mine in Canada, owing to $800 million in spending on multiple phases of modernization and expansion.

The new collective agreement would spell the end of the two-week work stoppage at the largest employer in the Cariboo region. In 2024, the mine is expected to produce 115 million lb. of copper, having already topped its guidance last year with 122.6 million lb. produced.

The new agreement remains subject to ratification by union members, and voting is expected to occur early this week. If the agreement is ratified, Taseko expects to resume operations on Wednesday.

The net proceeds will be used primarily for exploration and infill drilling at the project and for regional exploration. The regional activities include fieldwork on 10 concessions recently awarded to the company.

Solaris issued approximately 8.2 million common shares (including the over-allotment option) at a price of C$4.90 per share for gross proceeds of C$40.3 million.

The company also issued, on a private placement basis, about 2.8 million common shares at C$4.90 per share for gross proceeds of C$13.7 million. The shares were issued pursuant to a previously announced offtake financing package.

Exploration at Warintza began 1994, and the world class Warintza discovery was made in 2001. But the project until Solaris was spun out of Equinox Resources in 2018. Solaris then began a program of inclusive consultation with the local Indigenous community. An impact and benefits agreement was signed in 2020 and amended in 2022.

Solaris has concentrated its activities at Warintza on growing the resource. A new estimate is due by the end of the year and a prefeasibility study in 2025.

A resource estimate in 2022 included an indicated portion of 579 million tonnes grading 0.47% copper, 0.03% molybdenum, and 0.05 g/t gold (0.59% copper equivalent) and an inferred portion of 887 million tonnes grading 0.39% copper, 0.01% molybdenum, and 0.04 g/t gold (0.47% copper equivalent).

Metallurgical test work demonstrated an expected copper recovery of 90% and molybdenum of 80% using rougher and cleaner flotation methods.

Cerro Verde, located in the southwestern Arequipa region, is responsible for almost 19% of the copper and 34% of the molybdenum produced in Peru and operates one of the world’s largest concentrating facilities with an average milling rate of more than 400,000 metric tons of ore per day. Over half of the operation is owned by Freeport-McMoRan (NYSE: FCX), while 21% is owned by SMM Cerro Verde Netherlands – a subsidiary of Sumitomo Metal Mining Company- 19.58% by Compañia de Minas Buenaventura and 5.86% by other shareholders.

By 2026 and through 2044, Cerro Verde expects to deliver a targeted average mill production rate of 420,000 metric tons of ore per day by 2026 through 2044. Mining activities are projected to end in 2052 when the current reserves are expected to be exhausted.

According to Minister Mucho, this expansion paired with the development of other projects such as Panoro Minerals’ (TSXV: PML) Cotabambas, Regulus Resources’ (TSXV: REG) Antakori, Newmont’s (NYSE: NEM) Conga and Galeno, Rio Tinto (NYSE, ASX: RIO) and First Quantum Minerals’ (TSE: FM) La Granja and Southern Copper’s (NYSE: SCCO) Michiquillay will allow the Andean country produce four million tonnes of copper per year, nearing Chile’s production.

In regard to gold projects, the government official also announced the approval of a modified environmental impact assessment for the Tantahuatay project, which is held by Compañía Minera Coimolache, a company owned 40% by project operator Buenaventura (BMV: BVNN), 44% by Southern Copper (NYSE: SCCO) and 16% by ESPRO, a private company.

Tantahuatay is a heap leach gold-silver operation, mining the oxide cap of an extensive copper-gold sulphide resource located in the northwestern Cajamarca region.

During an address before the Energy and Mines Commission of the Peruvian Congress, Mucho also advertised the upcoming approval of the Pucamarca gold project, located in the southern Tacna province and operated by Minsur, a company owned by Breca, one of the country’s top investment groups.

“The Ministry of Energy and Mines promotes sustainable mining projects in the country because mining is the main support of our economy,” Mucho said. “This activity generates large resources so that infrastructure and electrification projects, among others, can be carried out to improve the quality of life of Peruvians.”

“With the rising cost of living it’s crucial that our members at Gibraltar receive fair wages, strong safety protocols, and equitable treatment on the job,” Lana Payne, national president of Unifor, Canada’s largest private sector union, said in a statement.

The Gibraltar copper-molybdenum mine is the second largest open-pit copper mine in Canada and the largest employer in the Cariboo region of British Columbia.

“Unifor has negotiated in good faith to avoid work stoppage at Taseko’s only functioning copper mine,” Unifor’s Western regional director Gavin McGarrigle said. “We need Taseko to get serious about resolving basic issues if we’re to avoid job action.”

Taseko has not responded to a request for comment.

Taseko posted its highest ever revenue of $525 million for 2023 in March, thanks mainly to the contribution of the Gibraltar mine, in which it held a majority 87.5% interest. The revenue represented a 34% increase from the year before.

In 2023, Gibraltar produced a total of 122.6 million pounds of copper, with an average copper recovery rate of 82.6% and head grade of 0.25%. This production was higher than the company’s original guidance and also 26% higher than in 2022.

Earlier this year, Taseko took full ownership of the Gibraltar mine after acquiring the remaining 12.5% stake from Dowa Metals & Mining and Furukawa.

Taseko’s shares were trading down 3.46% on Wednesday afternoon EDT. The company has a market cap of C$1.14 billion ($830 million).

The update puts the deposit at 495 million indicated tonnes grading 0.30% copper, 0.016% molybdenum and 1.75 grams silver per tonne (0.37% copper equivalent), Osisko said in a news release Monday. That resource contains 3.2 billion lb. copper, 180 million lb. molybdenum and 27.9 million oz. silver.

There’s an additional 6.3 million inferred tonnes at 0.30% copper, 0.19% molybdenum and 1.44 grams silver (0.37% copper equivalent).

“We are extremely pleased with the results of the updated mineral resource estimate for the Copper Mountain deposit,” Osisko Metals CEO and chair Robert Wares said.

“Integrating the recently announced positive metallurgical testing results, the Gaspé copper project is showing excellent potential towards becoming a key Canadian copper-molybdenum producer, located in one of the world’s safest mining jurisdictions.”

Metallurgical studies averaged 91.9% recovery from 19 bulk copper-molybdenum flotation tests and 94.2% from three locked-cycle copper-molybdenum separation tests.

“This MRE will provide the basis for a preliminary economic assessment, scheduled to be released in early first quarter 2025 in the context of what we believe is the start of a strong long-term copper market” he continued.

“Furthermore, we strongly believe that this important asset could become a core component of Quebec’s critical mineral development strategy that aims to provide essential metals for global decarbonization initiatives.”

Copper Mountain is part of Osisko’s Gaspé copper project near Murdochville, Quebec. The company acquired 100% of the past-producing Gaspé mine in 2022. Copper was first discovered in 1921, but production did not begin until 1955. Operations ceased in 2002.

Osisko has plans in place to reopen the mine, beginning with the remnant mineralization in the existing pit. The company also believes there is potentially high-grade underground mineralization that was never mined by Noranda subsidiary Gaspé Copper.

Company shares were up 11.1% to C$0.20 on Monday, valuing the company at C$51.3 million. Its shares traded in a 52-week range of C$0.14 and C$0.28.

To come up with this solution, the first thing the scientists had to do was transform molybdenum into molybdenum carbide using a carbon source. They discovered a cheap option in an unexpected place: the pantry. Surprisingly, sugar—the white, granulated kind found in nearly every household—served as an inexpensive, convenient source of carbon atoms.

Once this was done, the team was able to use the catalyst to transform CO2 into carbon monoxide (CO), an important building block to produce a variety of useful chemicals. When the reaction occurs in the presence of hydrogen, for example, CO2 and hydrogen transform into synthesis gas (or syngas), a highly valuable precursor to producing fuels that can potentially replace gasoline.

Operating at ambient pressures and high temperatures (300–600 degrees Celsius), the catalyst converted CO2 into CO with 100% selectivity.

High selectivity means that the catalyst acted only on the CO2 without disrupting surrounding materials. In other words, industry could apply the catalyst to large volumes of captured gases and selectively target only the CO2. The catalyst also remained stable over time, in other words, it stayed active and did not degrade.

“In chemistry, it’s not uncommon for a catalyst to lose its selectivity after a few hours,” Omar K. Farha, the study’s senior author, said in a media statement. “But after 500 hours in harsh conditions, its selectivity did not change.”

This is remarkable because CO2 is a stable—and stubborn—molecule.

“Converting CO2 is not easy,” Milad Khoshooei, co-lead author of the study, said. “CO2 is a chemically stable molecule, and we had to overcome that stability, which takes a lot of energy.”

Developing materials for carbon capture is a major focus of Farha’s laboratory. His group develops metal-organic frameworks (MOFs), a type of highly porous, nano-sized materials that are like “sophisticated and programmable bath sponges.” Farha explores MOFs for diverse applications, including pulling CO2 directly from the air.

In the researcher’s view, MOFs and the new catalyst could work together to play a role in carbon capture and sequestration.

“At some point, we could employ a MOF to capture CO2, followed by a catalyst converting it into something more beneficial,” Farha suggested. “A tandem system utilizing two distinct materials for two sequential steps could be the way forward.”

“This could help us answer the question: ‘What do we do with captured CO2?’,” Khoshooei said. “Right now, the plan is to sequester it underground. But underground reservoirs must meet many requirements in order to safely and permanently store CO2. We wanted to design a more universal solution that can be used anywhere while adding economic value.”

Talking at a conference organized by the Institute of Mining Engineers of Peru, the manager of Centinela, David Bayona, said that all the project development phases have been planned with a unique employment scheme in mind.

According to Bayona, project execution will be carried out under the modality of Engineering, Procurement and Construction (EPC) type contracts, an approach that seeks to optimize efficiency and minimize risks. 

“This management model is based on the availability of specialized contractors and the transfer of risks and responsibilities,” Bayona said. “This is different from Engineering, Procurement and Construction and Management (EPCM) type contracts, where a professional service agreement is entered into and the contractor’s services are meant to provide detailed engineering, procurement, construction administration and the necessary coordination to deliver a project.”

The executive noted that, except for Algo American’s Quellaveco copper mine in southern Peru, most projects in the region have been done under the EPCM modality.

The 95,000-tonnes-per-day concentrator is expected to be finished in three years. So far, the initiative has involved 2,000 people but is expected to need another 11,000 workers at peak construction. 

Workers will be organized in a 14-14 system that would allow for half of the workforce to be on site for two weeks while the other half rests. 

Once the new concentrator is fully operational, Centinela is expected to produce more than 144,000 tonnes of fine copper, 130,000 ounces of gold and 3,500 tonnes of molybdenum. After ramping up, the project should add an additional 300,000 tonnes of copper to Antofagasta’s current annual output of 600,000 tonnes of the red metal. 

The company will use the net proceeds to advance permitting and engineering activity at the Casino copper-gold project in west-central Yukon, 300 km north of Whitehorse. The project is currently in the environmental assessment review stage.

The proposed mine and part of the access road are within the traditional territory of the Selkirk First Nation. The Little Salmon/Carmacks First Nation, Kluane First Nation, and the White River First Nation are also involved.

The copper-gold deposit is one of the largest in Canada.

Casino has measured and indicated resources suitable for milling of 2.26 billion tonnes grading 0.15% copper, 0.18 g/t gold, 0.016% molybdenum and 1.4 g/t silver (0.31% copper equivalent). The M+I resources contain 7.45 billion lb. copper, 12.9 million oz. gold, 791.2 million lb. molybdenum and 103.1 million oz. silver. There is also an indicated resource of 1.37 billion tonnes grading 0.10% copper, 0.14 g/t gold, 0.009% molybdenum and 1.1 g/t silver (0.21% copper equivalent).

There are also a sizable resources suitable for heap leaching. The measured and indicated portion is 231.7 million tonnes grading 0.04% copper, 0.25 g/t gold and 0.9 g/t silver (0.27 g/t gold equivalent) containing 196.9 million lb. copper, 1.9 million oz. gold and 14.1 million oz. silver. The leachable inferred resource is 40.9 million tonnes at 0.05% copper, 0.20 g/t gold and 1.4 g/t silver (0.22 g/t gold equivalent).

According to the 2022 feasibility study, the Casino project has an after-tax net present value (8% discount) of C$2.3 billion and an after-tax internal rate of return of 18.1%. The base case for development would cost C$3.62 billion and pay for itself over 3.3 years. There would be additional sustaining costs of C$751.3 million.

The mine life would be at least 27 years. Commercial production could start as early at 2030.

Total production from the mineral processing plant is to be approximately 4.4 billion lb. copper, 5.7 million oz. gold, 34.5 million oz. silver. There will also be 407.3 million lb. molybdenum contained in 330,000 tonnes of concentrate.

The heap leach will produce about 1.4 oz. gold, 3.4 million oz. silver, and 29.8 million lb. copper.

The 982-million-tonne copper asset, about 80 km northeast of Ecuador’s capital of Quito, was initially being advanced by the country’s national mining company, Enami EP, with the help of Chile’s Codelco.

Tensions between the two miners began brewing shortly after Ecuador passed a reform to its mining law in 2020 that threatened Codelco’s right to about 42,600 hectares of exploration ground.

Cooperation between the two state-run companies came to a halt in 2021, with Codelco taking Enami EP to an international arbitration court. The world’s largest copper producer claimed its partner had failed to fulfill its part of the development agreement.

The two nations resumed talks over their partnership in Llurimagua in 2022, but other than Codelco dropping the lawsuit against Enami, no further details of the agreement have been disclosed to date.

Still possible

This week’s ruling, Ecuadorian paper El Universo reported, means that a March 2023 decision by Imbabura province’s supreme court to suspend Codelco’s environmental license for Llurimagua, stands.

As part of the ruling, Enami EP will have to resume consultation on the project and prepare a new environmental impact study and environmental management plan for the advanced exploration phase project.

Ecuador is rich in minerals and metals, but its mining industry is relatively new and lags behind that of neighbouring countries like Chile and Peru. This is partly due to court decisions and opposition from indigenous communities to mining projects.

The administration of current President Daniel Noboa is seeking to promote greater mining activity as a means of economic development, despite the legal and community-based challenges that have hindered progress in the sector over the past decade.

Mining and transport conglomerate Grupo Mexico reported on Thursday a 16% drop in its first-quarter net profit, falling to $928.5 million, dragged mainly by lower sales in its mining division due to lower copper, molybdenum and zinc prices.

Revenue for the major global copper producer, which also operates sprawling freight railroads in Mexico, slid 1.6% in the quarter to total $3.8 billion.

Sales in the mining division fell 7.4% from the year earlier, while revenues in the transport division grew 16.1%.

Meanwhile, consolidated earnings before interest, tax, depreciation and amortization (EBITDA) fell 6.6% to total $1.97 billion.

Grupo Mexico is one of the world’s largest copper producers, with mines in Peru, the United States, Spain and its home base of Mexico. The firm is controlled by billionaire German Larrea.

(By Valentine Hilaire; Editing by Kylie Madry)

Gross domestic product (GDP) expanded by a better-than-expected 2.85% in February from the same month in 2023, the government’s INEI statistics agency reported in a statement on Monday, marking Peru’s second straight month of economic growth.

Peru’s economy, once a star among its Latin American peers, shrank 0.55% last year due to the adverse effects of the El Nino weather phenomenon, lower private investment mainly in mining and the threat of anti-government protests.

February’s figure was above the 2.10% growth forecast by analysts polled by Reuters and at the higher end of a 2%-3% range projected by Peru’s economy minister last month.

The monthly growth rate was the largest since June 2022, according to INEI records.

The South American country’s mining and hydrocarbons sector saw the biggest expansion in February, growing close to 16%, INEI said, pointing to larger copper, gold and molybdenum volumes that boosted metals mining just over 17%.

Peru is an important global producer of copper, silver and zinc, and its mining sector has expanded for 13 consecutive months.

The manufacturing sector, an important source of jobs, was down 10.92%, while the beleaguered fishing sector shrank 31.26%.

The fishing sector was hurt by a near complete collapse in anchovy volumes from a year ago. Anchovy is critical in making fishmeal fertilizer, of which Peru is a top producer.

The agricultural sector also shrunk nearly 2%.

Economy Minister Jose Arista last month said that data for March appeared encouraging, predicting private investment growth of 2% and public investment growth of 8%.

The World Bank last week forecast Peru’s economy notching 2.7% growth in 2024.

(By Brendan O’Boyle and Marco Aquino; Editing by Sarah Morland and Bill Berkrot)

The complaint filed in an Anchorage federal court challenges the EPA’s 2023 final determination that prohibited the discharge of mining waste from the so-called Pebble deposit into the state’s Bristol Bay.

It comes about a month after a similar lawsuit was filed by the site’s developer, Northern Dynasty Minerals.

The Bristol Bay watershed in southwestern Alaska supports the world’s largest sockeye salmon fishery, provides habitat to birds and mammals and is known for its large mineral resources.

The EPA in reaching its decision said it was concerned that mining waste would degrade the watershed and harm important fishing ecosystems.

The state said the agency’s decision would deny it billions in revenues from taxes and royalties and called the move “a blatant affront to the sovereignty” of the state.

Alaska claimed the EPA’s decision arbitrarily failed to properly consider the costs and benefits of its decision in violation of federal administrative law and exceeded its authority under the federal Clean Water Act. It asked the court to set aside the final determination and declare the EPA violated those laws.

The EPA declined to comment, and Northern Dynasty didn’t immediately respond to a request for comment.

The case is Alaska v. US Environmental Protection Agency, in the US District Court for the District of Alaska, case No. 3:24-cv-00084.

For the state: Attorney General Treg Taylor and Assistant Attorney General Ronald Opsahl of the Alaska Department of Law, and Norman James and Tyler Carlton of Fennemore Craig

For the EPA: Not immediately available

(By Clark Mindock)

The company plans to use the net proceeds, together with cash on hand, to redeem its outstanding 7% senior secured notes due in 2026. A portion of the amount raised will be used for capital expenditures at the Florence copper project in Arizona and the Gibraltar copper-molybdenum mine in British Columbia.

Taseko acquired the open pit Gibraltar mine and mill for C$1 in 1999. Since then, it has invested in modernization and expansion of the operation, making it the second largest open pit copper mine in Canada. The two processing plants are rated at a total of 85,000 t/d and produce 130 million lb. of copper annually.

The Florence greenfield project was acquired in 2014, and Taseko has chosen in-situ recovery methods rather than traditional mining and milling. Construction of the commercial production facility began in 2023, and when fully operations, it was producing 85 million lb. of copper annually using solvent extraction/electrowinning (SX/EW) technology for at least 22 years.

South Africa’s ARM, through its wholly-owned subsidiary ARM Copper, will subscribe for 39.61 million common shares of Surge at C$0.095 each, as part of a strategic placement. The figure represents an 18% premium to the 20-day volume, the companies said.

The investment provides ARM a key entry point into an emerging critical metals district in British Columbia, Canada. 

The contiguous mineral claim package controlled by Surge contains several advanced porphyry deposits with compliant resources of copper, molybdenum, gold, and silver. Most of these metals are considered critical for the world’s successful transition to a low-carbon economy and related electrification technologies.

“We are excited to be welcoming ARM as a strategic investor into Surge,” chief executive officer Leif Nilsson said in the statement. “They bring significant experience in the development and operation of large-scale mines, with a foundational commitment to operational efficiency and fostering strong community ties.” 

One of the highlights of Surge’s exploration portfolio is the Berg project in BC. A preliminary economic assessment of the asset has determined a net present value (discounted at 8%) of $1.55 billion (C$2.1bn) and an internal rate of return of 20% based on long-term commodity prices of $4/lb copper, $15/lb molybdenum, $23/oz silver and $1,800/oz gold. 

The Berg project is projected to have a 30-year mine life with a total production of 2.6 million tonnes (Mt) of copper equivalent, including 1.7Mt of copper. The resource is estimated to contain approximately one billion tonnes of 0.23% copper, 0.03% molybdenum, 4.6 grams per tonne (g/t) silver, and 0.02 g/t gold.

Surge also owns the Ootsa property exploration project, which includes the Seel and Ox porphyry deposits, located next to Imperial Metals’ (TSE: III) Huckleberry copper mine.

The new team will be led by London-based Jack Nathan, previously at FIS. Nathan will be supported by Po Wei in Singapore, who joins from JP Morgan, Tullett Prebon said in a release.

Cobalt volumes on the CME have been growing quickly over the last two years, while those for lithium have picked up in recent months. CME molybdenum was launched in March last year.

“With demand for electric vehicles (EV) fluctuating, and the production of battery metals rising rapidly, clients have a growing need to manage price risk and exposure,” the broker said.

“Less well known, Molybdenum is an emerging battery metal that is predicted to play a key role in increasing batteries’ electrical power, energy storage capacity, recharging speed, and stability.”

Tullett currently trades base metals such as copper, aluminum and zinc listed on the London Metal Exchange.

(By Pratima Desai; Editing by Mark Potter)

The move will boost the Canadian miner’s attributable copper production by 14% and increase cash flow as the company progresses with construction at the Florence copper project in Arizona, CEO Stuart McDonald said.

The definitive agreement will see Taseko pay C$117 million ($86.1m) over a period of ten years for the shares held by Dowa and Furukawa in Cariboo Copper Corp. 

With the move, the Vancouver-based company will be the sole owner of Cariboo Copper Corp, effectively gaining a 100% interest in Gibraltar in south-central British Columbia.

It also gives it additional offtake rights as the Cariboo offtake contract comes back to Taseko, providing potential cost savings, McDonald said.

On top of the initial C$5 million ($3.7m) to be paid to Dowa and Furukawa (C$2.5 million each) after closing the deal, Taseko may be responsible for contingent payments depending on copper prices and Gibraltar’s cashflow, the company said.

“We have established a positive relationship with Dowa and Furukawa over the last 14 years,” McDonald noted. “Given that both groups are reducing their copper smelting businesses and are exiting their copper mining investments, we’ve been able to structure this exit from our long-term partnership in a mutually beneficial manner.”

The company posted its highest ever revenue of $525 million for 2023 earlier this month, thanks mainly to the contribution of Gibraltar mine. The revenue represented a 34% increase compared to 2022.

In 2023, the mine produced a total of 122.6 million pounds of copper, with an average copper recovery rate of 82.6% and head grade of 0.25%. This production was higher than the company’s original guidance and also 26% higher than in 2022.

Taseko is also close to beginning production at Florence, which is expected to happen in the fourth quarter of 2025.

The push echoes calls from the mining industry for clarity on how permits can be obtained for mines that produce copper, lithium and other energy transition minerals. Executives have long complained the US process can be complex, expensive and opaque due in part to a federal mining law enacted in 1872.

“Our message to the Biden administration is, ‘Do everything you can to do everything here in America. Get your permitting processes streamlined,'” Dunleavy told Reuters on the sidelines of the CERAWeek energy conference in Houston.

It is “somewhat nonsensical,” the governor said, that Biden has pushed for greater adoption of electric vehicles – which require far more critical minerals to build than internal combustion engines – but has blocked Northern Dynasty’s Pebble copper and gold mining project.

“If we don’t get our permitting processes together, if we don’t start to use data and science again instead of emotion, this chaos is going to continue,” he said.

Dunleavy sued Biden last week for the president’s 2023 decision to block Pebble. The suit seeks more than $700 billion, an amount that the governor says the state will lose in economic development without the mine. Dunleavy tried unsuccessfully last year to have the US Supreme Court overturn Biden.

Vancouver-based Northern Dynasty itself sued Biden on Monday.

The proposed Pebble mine would have “unacceptable and adverse effects on certain salmon fishery areas” in Alaska’s Bristol Bay, the US Environmental Protection Agency said last year.

Dunleavy said he believes the mine and the state’s salmon fishers can co-exist.

“The science is there to be able to develop the mine responsibly,” he said. “We can put the safeguards in, and that’s why I’m a supporter.”

Lisa Murkowski and Dan Sullivan, Alaska’s two Republican US Senators, oppose Pebble, which Dunleavy acknowledged is a hindrance.

“However, my job as the governor is to advocate for our state, advocate for the development of our state lands or minerals, and advocate for the prosperity of our people,” he said.

Ambler road

Dunleavy, who has endorsed his fellow Republican Donald Trump against Democrat Biden in the 2024 US presidential election, is also pushing Biden to approve the construction of an access road to the prospective Ambler mining district in northern Alaska.

The Ambler project seeks to open a remote area rich in copper, zinc and lead and could yield deposits of rare earths used in weapons manufacturing. Trilogy Metals is one of the region’s potential developers.

“I hope it’s approved this year. But if it’s a post-election decision and there’s a new administration, I hope it’s approved immediately,” Dunleavy said.

(By Ernest Scheyder; Editing by David Gregorio)

The miner said on Tuesday it had inked signed definitive agreements with a group of international lenders, including the Japan Bank for International Cooperation, Export Development Canada, the Export-Import Bank of Korea and several commercial lenders for the term loan. The financing has a four-year drawdown period and a 12-year term, Antofagasta said.

“The Centinela Second Concentrator project is a prime example of how Antofagasta can unlock value from its portfolio and our dedication to sustainable and responsible copper production,” chief executive Ivan Arriaga said in the statement.

The company has also signed a separate agreement granting Centinela the option to obtain water for its current and future operations from an international consortium. This group would acquire Centinela’s existing water supply system and extend it to serve the second concentrator. The international consortium is in the process of finalizing its financing to fulfill this agreement within the year.

As part of this deal, Centinela will transfer its current water transportation assets and rights for about $600 million to be received in 2024. The consortium will handle the construction and related capital expenses amounting to $380 million for the planned expansion of the water transportation system.

The $4.4 billion second concentrator at Centinela, whose construction was approved in December 2023, is expected to start operations in 2027.

The developer on Friday filed a lawsuit in federal court in Anchorage challenging the EPA’s 2023 final determination prohibiting the discharge of mining waste in the state’s Bristol Bay over concerns the materials would degrade the watershed and harm important fishing ecosystems.

Northern Dynasty said the determination made under the Clean Water Act was arbitrary and capricious in violation of federal administrative law, because it failed to adequately consider the economic impact of the decision and used a “wild overestimate” of what protected waterways would be impacted by mining activity.

Northern Dynasty claims it has spent at least $1 billion over two decades in its efforts to develop the project, which was effectively killed by the decision, including $200 million on environmental studies.

“This is just another example of gross EPA overreach of the powers granted to it by Congress,” said Ron Thiessen, Northern Dynasty’s president and CEO, in a statement.

The EPA didn’t immediately respond to a request for comment on Monday.

The Bristol Bay watershed in southwestern Alaska supports the world’s largest sockeye salmon fishery and is known for its large mineral resources. The watershed also provides habitats for 29 species of fish, more than 190 birds and dozens of mammals, according to the EPA.

The proposed mine, which has languished in a lengthy approval and permitting process for decades but has not started construction, would tap one of the world’s largest copper and gold deposits.

The EPA claims it would permanently destroy over 2,000 acres of wetlands protected by the Clean Water Act.

The developer also filed a lawsuit against the US government on Thursday alleging the veto amounted to an unconstitutional taking of its property in violation of the US Constitution’s 5th Amendment, which says that private property can’t be taken for public use without compensation, in the US Court of Federal Claims in Washington, DC.

The state of Alaska also sued the US government in that court last week seeking $700 billion over the decision, arguing the EPA’s veto infringed on the state’s sovereignty and would deprive it of funds from taxes, licensing fees and royalties it would have received from the mine.

The state had already challenged the EPA’s decision last year directly with the Supreme Court, arguing it violated the state’s sovereign right to regulate its land and waters, as well as a 1976 land swap with the US government that gave the state ownership over the area in question.

The Supreme Court declined to take that case in January, but did not say why.

The developer’s new lawsuit in Alaska makes similar claims, arguing the Clean Water Act does not give the EPA authority to override the state’s preferences for using the lands for extracting valuable minerals.

The EPA had previously argued in a brief submitted to the Supreme Court that Alaska’s statehood and the land swap do not preclude the agency from evaluating projects to ensure they comply with environmental law.

The case is Northern Dynasty Minerals Ltd v. US Environmental Protection Agency, US District Court for the District of Alaska, No. 3:24-cv-00059.

For Northern Dynasty Minerals: Keith Bradley and Jeffrey Walker of Squire Patton Boggs

For the EPA: Not yet available

(By Clark Mindock)

The first, and main focus of Northern Dynasty’s legal actions, was filed with Alaska’s federal district court, seeking to vacate the US Environmental Protection Agency’s (EPA) veto of a development at Pebble.

The proposed mine would have become the largest copper, gold and molybdenum extraction site in North America. However, for the better part of two decades, the project was met with strong resistance due to its potential environmental impact. The Bristol Bay area, where the mine would be located, is home to the world’s largest sockeye salmon fisheries.

In January 2023, the EPA made its decision to block Northern Dynasty’s US-based subsidiary from storing mine waste in the Bristol Bay watershed, essentially killing the project.

In its complaint, the company alleges that the EPA veto was issued in violation of various federal statutes regarding Alaska’s statehood rights and a land exchange approved by Congress.

Specifically, it claims that the veto decision was based on an “overly broad legal interpretation” of EPA’s jurisdiction, which has since been overruled by the Supreme Court, its geographic scope exceeds that allowed by the statute, and it was based on information previously developed by EPA in what it calls “an illegal pre-emptive veto process” that was designed to reach a predetermined result.

The company also says the factual basis stated to support the veto is directly contradicted by the July 2020 environmental impact statement published by the United States Army Corps of Engineers (USACE), which is an important part of the administrative record.

“The EPA has not demonstrated that either the development of the Pebble deposit will have unacceptable adverse effects under Section 404(c), or that there are any impacts to Bristol Bay fisheries that would justify the extreme measures in the final determination (veto),” Northern Dynasty said in a news release.

“Whatever authority the EPA may have under section 404(c), the general provision in the Clean Water Act cannot authorize the EPA to take action to block the specific economic activity that was Congress’s express purpose for granting these lands to the State of Alaska under the Cook Inlet Land Exchange,” Northern Dynasty CEO Ron Thiessen said.

The other legal action was filed with the US Court of Federal Claims in Washington, DC, claiming that the actions by the EPA represent an unconstitutional “taking” of Northern Dynasty’s property. To that extent, the company is asking the court to defer considering this action until the above-mentioned EPA veto case is resolved.

“Our permitting strategy is focused entirely on winning the EPA veto case and permitting the Pebble project. We have filed a takings case against the federal government to preserve our ability to seek compensation for a violation of our rights in line with the protections under the Fifth Amendment,” the company said.

Still, according to Thiessen, the company’s priority is to advance the district federal court complaint, because “overturning the illegal veto removes a major impediment from the path of getting the permit to build the proposed mine.”

Over an estimated 20-year mine life, Pebble is expected to churn out 6.4 billion lb. of copper; 7.4 million oz. of gold and 300 million lb. of molybdenum, plus 37 million oz. of silver and 200,000 kg of rhenium.

Northern Dynasty’s shares rose by 1.1% to C$0.44 by 10:45 a.m. ET, trading between a 52-week range of C$0.28-C$0.58. The company has a market capitalization of C$239.6 million ($177.3m).