Monday 21st September 2020

Resource Clips


Posts tagged ‘Teck Resources Ltd (TECK.A)’

Geoscience BC uses bacterial DNA to help guide mineral exploration

August 27th, 2020

by Greg Klein | August 27, 2020

Imagine that—tens of thousands of bacterial species teeming in every little gram of soil. It might take even greater imagination to see opportunity therein. But ever-innovative Geoscience BC has found ways to analyze the bacteria’s DNA for clues about possible underlying deposits.

That’s the topic of the non-profit society’s newly released report, Microbial-Community Fingerprints as Indicators for Buried Mineralization in British Columbia. The findings can point to deposits covered by glacial overburden, a particular challenge for exploration in much of the province.

“Soil microbes are very sensitive and responsive to chemical and physical changes in their environment,” noted Sean Crowe, a project co-leader and University of British Columbia professor. “Comparing the quantity and species of bacteria found in soil samples collected over ore deposits with soils from other areas can help to zero in on buried mineral deposits.”

Researchers came from three UBC departments: Earth, Ocean, and Atmospheric Sciences; Microbiology and Immunology; and the Mineral Deposit Research Unit. They collected samples surrounding two copper porphyry deposits in south-central B.C.: Consolidated Woodjam Copper’s (TSXV:WCC) Deerhorn copper-gold deposit near Williams Lake and Teck Resources’ (TSX:TECK.A/TSX:TECK.B) Highmont South copper-molybdenite deposit near Kamloops.

“By combining the results of high-throughput DNA sequencing with geomicrobiological knowledge, the researchers identified groups of indicator bacterial species that help distinguish soils above mineralization from background soils,” Geoscience BC stated.

“We found that sequence-based anomaly detection is both sensitive and robust, and could go a long way towards helping discover new mineral resources,” said microbiologist and lead report author Rachel Simister.

Geoscience BC VP of minerals Christa Pellett added, “This project is a good example of Geoscience BC supporting the application of innovative technologies for mineral exploration, and confirms the potential for using genomic sequencing as a tool to identify mineral deposits beneath glacial sediments.”

Work on the project continued despite the passing of co-leader Peter Winterburn, whom Geoscience BC acknowledged for his “valuable and lasting legacy.”

The non-profit society uses a number of leading-edge approaches to study B.C.’s mineral, energy and water resources. Information published in the public domain helps industry, government and communities make resource-based decisions. Last month Geoscience BC asked explorers in the Golden Triangle region to contribute geophysical findings for a public dataset.

Read more about the genome sequencing project.

Read about the collaboration between Geoscience BC and the B.C. Geological Survey.

A resource-less approach

August 21st, 2020

Attacks persist, but Canada has nothing to replace the economy it denigrates

by Greg Klein | August 21, 2020

“Very disheartened,” the Mining Association of Canada expressed more than usual frustration as another resource project faced another unexpected setback. This one caused special pain since it resulted from Bill C-69, which the industry group had controversially supported. MAC did so thinking the bill would fix problems associated with the federal environmental act of 2012. But the association had also supported Ottawa back then, before becoming disillusioned with the legislation’s implementation. Could there be a pattern here?

MAC expressed its most recent discouragement on August 20 after federal environment minister Jonathan Wilkinson announced Teck Resources’ (TSX:TECK.A/TSX:TECK.B) Castle coal proposal would face a federal review under the Impact Assessment Act in addition to the provincial review already underway.

Attacks persist, but Canada has nothing to replace the economy it denigrates

Teck’s Fording River operation: Does a supposedly green economy
have no room for steel-making coal? (Photo: Teck Resources)

As a new source of metallurgical coal just south of Teck’s Fording River mine in southeastern British Columbia, Castle would add “several decades” of life to the currently depleting operation, the company maintains. Teck hoped to begin Castle development in 2023 and production in 2026, to replace the existing operation early next decade.

Yet the size of the proposal calls for an environmental review at the provincial level only, Teck and MAC say, arguing that federal IAA intervention isn’t necessary.

“It seems clear that this decision was political in nature as there are many projects across the country with equal or more significant impacts that are not subject to the IAA,” MAC president/CEO Pierre Gratton asserted. “This is a case of the government succumbing to pressure from political interest groups while also placating the U.S. government’s EPA and the state of Montana.”

Yet Canada’s new regimen was supposed to end much of the federal-provincial review duplication, which helped explain MAC’s support for C-69 last year even after Parliament rejected most of the Senate’s proposed amendments. Over objections from the oilpatch and some uranium companies, MAC declared the new legislation an improvement over the former Tory government’s 2012 Environmental Assessment Act.

MAC had supported the 2012 transformation too. But later the group decided it did not “live up to its promise,” Gratton told CBC last year.

In making this decision, the federal government is sending a clear message that instead of providing support for resource projects and jobs in a time of unprecedented economic crisis, it will choose to do the opposite. —The Mining Association
of Canada

On August 20 he stated MAC’s support for the new IAA had been “contingent on it being implemented well. It is unfortunate that the past month has now given our industry reason to question whether it will be implemented in a fair and efficient manner.”

Weeks earlier, MAC noted, Ottawa released its new Strategic Assessment on Climate Change, “which included numerous requirements that are unworkable for the mining sector and is calling into question whether the act will be well and fairly implemented.”

Implementation aside, the IAA is hardly free of inherent faults. A February 2019 commentary by Grant Bishop and Grant Sprague of the C.D. Howe Institute warned that C-69 threatened projects by “congesting the assessment process with wider public policy concerns and exacerbating the political uncertainty facing proponents with a highly subjective ‘public interest’ standard.” That allowed for “increasing subjectivity and politicization in project approvals,” the authors contended.

Additionally, they said the new bill failed to clarify the duty to consult natives.

C-69 passed at the same time as Bill C-48, aka the “tanker moratorium,” and shortly after a ban on offshore Arctic drilling.

Problems are obvious at the provincial level too. One early sign of a growing trend was B.C.’s 2012 rejection of Pacific Booker Minerals’ (TSXV:BKM) Morrison copper-gold-molybdenum proposal despite an environmental assessment that found the project was “not likely to have significant adverse effects.” In the legislature last spring MLA Andrew Weaver, B.C.’s former Green leader, suggested the previous BC Liberal government rejected Morrison as a trade-off to gain native support for a gas transmission line to the proposed Pacific Northwest LNG plant.

The BC Liberal government did, however, support Taseko Mines’ (TSX:TKO) New Prosperity proposal. Ottawa scrapped that one, partly by expanding its environmental mandate to include spiritual and cultural issues.

B.C.’s current NDP government, meanwhile, has come under fire from Taranis Resources TSXV:TRO for a process that it said involved 28 government reviewers, “multiple catastrophic deficiencies and concerns” and “moving goalposts.” These are, of course, just a few examples of ongoing frustration that characterizes resource and infrastructure development across Canada.

Most vexing is the duty to consult. Does that create a veto? Not according to Gratton, who has previously insisted: “We’re not in a world of veto. We’re in a world of deep and meaningful engagement.”

But that deep and meaningful stuff can work in reverse too. When the Nunavut Impact Review Board recommended federal rejection of an expansion proposal for Baffinland Iron Mines’ Mary River operation in 2018, the Qikiqtani Inuit Association convinced Ottawa to approve the company’s request.

The Wet’suwet’en pipeline protests, moreover, appear to show some natives trying to veto others. The cause was taken up by Canada’s wider protest culture following its mass adulation for a Swedish teenager in demonstrations that at least hinted at religious fervour. The anti-pipeline movement quickly morphed into Shut Down Canada, an effort that showed signs of succeeding until quelled by the pandemic. Yet widespread demonstrating resumed with an American issue imported to this country awkwardly but with immediate and uniform support from Canadian media, political and business elites.

Will that support follow when protesters channel their emotions en masse back to environmental issues? Certainly much of the political and media establishment already grant credibility to seriously disruptive tactics that, for example, block people’s freedom of movement.

It’s in this milieu that the prime minister is speculated to be preparing an unprecedented social spending program that would dwarf previous deficit budgets.

Gold bugs might believe the outcome will vindicate their predictions for fiat currency. They might also feel vindicated by this week’s investment of US$560 million in Barrick Gold TSX:ABX by Berkshire Hathaway, whose legendary CEO Warren Buffett was previously known to disparage gold.

One of the world’s largest gold producers and nominally a Canadian company, Barrick has just one mine and no exploration or development projects in this country. For its part, Berkshire Hathaway expressed its opinion of Canada in early March when the company cancelled its planned $4-billion investment in GNL Québec. A spokesperson for the LNG proponent cited investor nervousness about the “current Canadian political context” demonstrated by rail blockades.

If Canada’s abandoning its resource economy, the replacement remains uncertain. That might be a situation better understood by investors than policy-makers, but it carries implications much wider than stock prices.

Global top 40 miners stand up to pandemic but face further challenges, says PwC

July 24th, 2020

by Greg Klein | July 24, 2020

For all the tribulations facing mining, the industry has been faring well compared to others. That’s the verdict of the recent PwC report Mine 2020: Resilient and Resourceful. But the publication warns that caution, adaptation and innovation must continue to safeguard the future.

Global top 40 miners stand up to pandemic but face further challenges, says PwC

If the top 40’s performance reflects the wider industry,
mining will prevail over the pandemic, this report maintains.
(Photo: PwC)

The survey looks at the world’s top 40 listed miners by market cap as of December 31. For the third year in a row, six Canadian companies made the list.

The IMF predicts global economic contraction of 3% this year, only the third comparable event since 1944. Yet PwC maintains that mining’s top 40 “are in an excellent position to weather the storm.”

Although the companies’ 2019 EBITDA performance remained flat at US$168 billion, PwC foresees a 6% decline this year, with capital spending falling at least 20% due to reduced revenue as well as pandemic-related staffing and mobilization difficulties.

Still, the decline will be temporary as past performance puts the top 40 “in a strong financial position as they enter one of the more uncertain economic periods in living memory. Liquidity is improved, and solvency is consistent.”

The pandemic’s effect on commodity prices ranges from double-digit drops for copper, nickel and zinc, to record prices for gold. Iron ore has remained relatively steady and looks promising due to early recovery in China and strong GDP growth predicted for that country and India in coming years.

In a recommendation that itself presents challenges, however, PwC suggests miners seek greater diversification of customers to wean themselves off of the two Asian giants.

Mining companies may think they’re an unlikely target for cyberattacks, but as reliance on autonomous and digital technology grows, so too does the cybersecurity risk. And the consequences can be a matter of life or death.—PwC Mine 2020

As for gold’s steep ascent, “don’t expect this to continue.” With 2020 yellow metal M&A down 33% from the same period last year, “gold miners appear to have learnt their mistakes from the early 2010s and are avoiding the pitfalls of pursuing large cash and debt-backed deals in a rising price environment. We expect gold deals to be less frequent and smaller this year and next, with more transactions on a scrip-for-scrip basis.”

Under the circumstances smaller, local property acquisitions might prove more attractive to the top miners. Locally available resources, along with globally diverse deposits, would help strengthen critical supply chains too. Pointing to fragile links further weakened by COVID-19, PwC also called for improved inventory management. The measures “would not only de-risk mining companies against a similarly disruptive event but also help develop and build resilience in local communities,” the report states. “Many are already doing it; Anglo American, Nornickel and BHP among others, have announced initiatives to increase support for their domestic suppliers as a result of the pandemic.”

PwC also emphasized the need to strengthen cybersecurity, and to address environmental, social and governance accountability, calling for a global ESG standard.

For the third year running, six Canadian companies made the top 40 list with the present group including Barrick Gold TSX:ABX, Agnico Eagle Mines Group TSX:AEM, Teck Resources TSX:TECK.A/TSX:TECK.B, Kirkland Lake Gold TSX:KL, First Quantum Minerals TSX:FM and Kinross Gold TSX:K. Newcomer Kinross kept Canada’s half-dozen steady following the takeover of Goldcorp by Denver-headquartered Newmont TSX:NGT. Among companies poised to join next year is Vancouver-headquartered Pan American Silver TSX:PAAS.

Read the PwC report.

Mining resumes under COVID-19 but faces slow return: GlobalData

April 28th, 2020

by Greg Klein | April 28, 2020

Mining resumes under COVID-19 but faces slow return GlobalData

 

As of April 27 some 729 mines worldwide remain suspended, down from more than 1,600 shutdowns on April 3. The numbers, released by GlobalData, reflect government decisions to declare the industry an essential service, as well as implementation of new health standards and procedures. Those efforts, often involving staff reductions, contribute to “a slow return for the industry,” stated the data and analytics firm.

“Silver production is currently being severely damaged by lockdown measures,” pointed out GlobalData mining analyst Vinneth Bajaj. “As of 27 April, the equivalent of 65.8% of annual global silver production was on hold. Silver mining companies such as First Majestic, Hochschild, Hecla Mining and Endeavour Silver have all withdrawn their production guidance for 2020 in the wake of the outbreak.

Mining resumes under COVID-19 but faces slow return GlobalData

“Progress has also been halted on 23 mines under construction, including the US$5.3-billion Quellaveco copper mine in Peru, which is one of the world’s biggest copper mines currently under development…. In Chile, while a lockdown is not in force, Antofagasta has halted work on its Los Pelambres project and Teck Resources has suspended work on the Quebrada Blanca Phase II mine.”

Jurisdictions that have lifted suspensions include Quebec, India, Argentina, Zimbabwe and South Africa, GlobalData added. Countries with government-ordered lockdowns still in force include Bolivia (until April 30), Namibia (May 4), Peru (May 10) and Mexico (May 30).

At least one Mexico operator, Argonaut Gold TSX:AR, plans to re-open on May 18 under an exception for businesses operating in municipalities with few or no cases of COVID-19.

Quebec’s resumption of mining drew strong criticism from Makivik Corporation, which represents the Inuit of the province’s Nunavik region.

“Makivik will not entertain the opening of any mines at this time in Nunavik. This is very dangerous,” said corporation president Charlie Watt on April 17. “The Inuit-elected officials in the communities and in the different regional organizations need to be heard and need to make the decisions and call the shots.”

One day later production resumed at Glencore’s Raglan nickel mine. The company stated that Nunavik authorities have banned travel between the mine and regional villages to protect the local population. Local workers stay home with compensation, while the mine employs workers from the south, including Inuit who live in the south.

Without question this is taking a toll on all of our mines and service/supply companies.—Ken Armstrong, NWT and
Nunavut Chamber of Mines

Six mines still operating in Nunavut and the Northwest Territories use similar staffing precautions. “The mines are operating with reduced workforces which they must fly in by charter from as far away as eastern Canada,” said NWT and Nunavut Chamber of Mines president Ken Armstrong. “To protect vulnerable northern communities from the virus they have sent their local employees home with pay and they are maintaining costly and unplanned virus protection measures.”

Meanwhile Labrador politicians expressed concern about renewed operations at Champion Iron’s (TSX:CIA) Bloom Lake mine on the Quebec side of the Labrador Trough. On April 28 VOCM radio reported that MP Yvonne Jones asked the company to avoid the Wabush airport in her riding and transport employees entirely through Quebec. Member of the House of Assembly Jordan Brown said contractors were making unnecessary trips to the Newfoundland and Labrador side.

Another pandemic-caused Quebec mining suspension will stay on care and maintenance due to market forces. Renard owner Stornoway Diamond stated, “Despite positive signs in the diamond market in early 2020, the recent COVID-19 pandemic has resulted in the entire marketing chain and diamond price collapse.”

Prior to the suspension, Renard operated only through creditor support.

Another diamond casualty has been the Northwest Territory’s Ekati mine, which suspended operations last month. Majority owner Dominion Diamond Mines received insolvency protection on April 22.

Discovered in 1991 and opened in 1998, Ekati “provided nearly 33,000 person-years of employment, and $9.3 billion in business spending, with over half the benefits (51% of jobs and 69% of spending) going to northern residents and businesses,” the Chamber stated. “Billions of dollars in various taxes and royalties have also been paid to public and indigenous governments by the mine.”

Maintaining essential service

April 14th, 2020

As Quebec mining resumes, Canadian companies make open-or-shut decisions

by Greg Klein | April 14, 2020

As Quebec mining resumes, Canadian companies make open-or-shut decisions

A COVID-19 outbreak put Impala’s Lac des Iles on lockdown.
(Photo: Impala Canada)

 

With additional health standards in place and encouraged by a surging gold price, Quebec miners have been given a back-to-work go-ahead. On lifting a three-week suspension, the province allowed ramp-up procedures to begin April 15. A ban on non-essential industrial activities, including mineral exploration, has been extended to May 4.

Mine restarts announced so far include Eldorado Gold’s (TSX:ELD) Lamaque mine, IAMGOLD’s (TSX:IMG) Westwood operation, Agnico Eagle Mines’ (TSX:AEM) LaRonde complex and Goldex mine, and the Agnico Eagle/Yamana Gold TSX:YRI Canadian Malartic JV.

Glencore stated it’s “analyzing options” to restart its Raglan nickel and Matagami zinc operations in Quebec.

As Quebec mining resumes, Canadian companies make open-or-shut decisions

Agnico Eagle and Yamana Gold were quick to announce
Canadian Malartic’s ramp-up. (Photo: Canadian Malartic JV)

New measures mandated by the government and its health and workplace standards agencies require physical distancing, additional protective equipment, health monitoring and enhanced sanitation. The new regimen also calls for additional training and in some cases longer stints in job site accommodations to reduce travel.

But market forces aggravated by the pandemic will keep Stornoway Diamond’s Renard mine on care and maintenance. Prior to the March 24 government-ordered suspensions, Renard operated only through the support of creditors.

“We will continue to monitor the market conditions for improvements which would allow for a restart of mining activities,” said Stornoway president/CEO Patrick Godin. The diamond industry has been hit by broken supply chains as well as plunging prices.

Also on April 14 McEwen Mining TSX:MUX announced restarts of its Black Fox mine in the Timmins camp, along with the San Jose operation in Argentina. Although the Ontario government exempted mining and exploration from its list of suspensions, the company paused Black Fox for two weeks while implementing new policies and procedures.

“Our miners and teams are overwhelmingly supportive of returning to work with the new safety measures,” the company stated.

In northwestern Ontario, Implats subsidiary Impala Canada suspended its Lac des Iles palladium mine on April 13 after learning that a worker tested positive for COVID-19. By April 14 the company announced seven confirmed cases connected with LDI. 

Impala told all employees to go into isolation until April 27, during which time they’d get a $100-a-day bonus on top of base pay for the entire month. The company also arranged free hotel rooms and meals during the isolation period.

As Quebec mining resumes, Canadian companies make open-or-shut decisions

McEwen Mining lifted the voluntary suspension
of its Black Fox operation. (Photo: McEwen Mining)

Industrial operations face numerous challenges in adapting to new health protocols. Last week the Globe and Mail reported concerns about conditions at Teck Resources’ (TSX:TECK.A/TSX:TECK.B) southeastern British Columbia coal operations.

A local resident “alleged that shortages of protective equipment, crowded commuter buses, packed site vehicles and ‘an absolute impossibility to self-distance because of the nature of the work,’ are fostering an environment where the virus could spread,” the paper stated.

The company had previously announced precautionary measures including “a temporary slowdown of operations and reduction of crews by up to 50%” at its B.C. mines.

According to the G&M, “Stephen Hunt, director of United Steelworkers union, which represents almost all of Teck’s B.C. workforce, said some members are satisfied the company’s mines are safe, while others are worried. He said Teck has made decent strides to reduce the risk for employees, including staggering shift start times to reduce congestion at the mine site as well as removing some of the seating on buses to ensure people are sitting at least six feet apart. Despite these precautions, he’s still on edge.”

On April 13 Cameco Corp TSX:CCO announced that the suspension of its 50%-held Cigar Lake uranium mine in Saskatchewan’s Athabasca Basin would continue indefinitely. Orano Canada also lengthened the suspension of its 70%-held McClean Lake mill, which processes Cigar Lake ore.

The global challenges posed by this pandemic are not abating—in fact, they are deepening.—Tim Gitzel,
Cameco president/CEO

“The precautions and restrictions put in place by the federal and provincial governments, the increasing significant concern among leaders in the remote isolated communities of northern Saskatchewan, and the challenges of maintaining the recommended physical distancing at fly-in/fly-out sites with a full workforce were critical factors Cameco considered in reaching this decision,” the company stated.

President/CEO Tim Gitzel added, “The global challenges posed by this pandemic are not abating—in fact, they are deepening.”

As Quebec allows mining to resume, Canadian companies make open-or-shut decisions

April 14th, 2020

This story has been expanded and moved here.

While awaiting Ottawa’s decision on the Frontier oilsands proposal, Teck Resources CEO Don Lindsay comments on a solar farm purchase

February 6th, 2020

…Read more

Teck gets brownfields green energy project with re-acquisition of legendary mine

January 16th, 2020

by Greg Klein | January 16, 2020

Teck gets brownfields green energy project with re-acquisition of legendary mine

The SunMine sits atop reclaimed land over a onetime world leader in zinc-lead production.
(Photo: Teck Resources)

 

A former mine that’s been regenerated to generate clean electricity has come back to a former owner. A recent purchase returns the surface site of southeastern British Columbia’s legendary Sullivan mine to Teck Resources TSX:TECK.A/TSX:TECK.B, bringing with the property a 1.05 MW solar farm.

Built by the city of Kimberley on land provided by Teck after Sullivan’s 2001 shutdown, SunMine began operation in 2015 as B.C.’s first grid source of solar electricity. But declining revenues in recent years prodded the municipality into negotiations with the company, resulting in a $2-million payment that meets Kimberley’s SunMine-related debt.

Teck gets brownfields green energy project with re-acquisition of legendary mine

Affluent travelers can lap up luxury at
a former open pit near Shanghai airport.
(Photo: InterContinental Hotels and Resorts)

An 1892 discovery that became a major zinc-lead-silver producer, Sullivan was taken over in 1910 by Cominco, which merged with Teck in 2001. During Kimberley’s tourist season, visitors can take an open air train ride into the former underground operation.

Numerous former industrial sites have been refashioned into green energy production, notably the solar farm that opened at Chernobyl in 2018. In other cases reclaimed land hosts recreational facilities, such as the ski resort on the surface area of North Star, another Kimberley silver-lead mine.

Former open pits and underground workings have also been put to new uses. Billed as the world’s first underground hotel when it opened in 2018, the Shanghai Wonderland rises just two storeys above a former andesite quarry that contains the other 16 floors.

Some underground examples reported by the Smithsonian consist of cycling, zip-lining and ATV riding. More fanciful uses, however, include a onetime Polish salt mine that’s now a resort offering a “subterraneotherapy” spa as well as “religious services, adventure tours, art galleries, a museum and two underground hotels.”

A former Romanian salt mine now features “a surreal theme park complete with a Ferris wheel, mini-golf course, a lake with paddle boats, a bowling alley, an amphitheater, sports fields and ping pong tables.”

Apart from supplying grid power, Teck gets 81% of its own electricity consumption from renewable sources, the company stated. “Our involvement with SunMine is part of our commitment to taking action on climate change, advancing renewable energy development and supporting the global transition to a low-carbon economy,” said president/CEO Don Lindsay.

More contentiously, the company now has its proposed $20.6-billion Frontier oilsands mine awaiting a federal decision. In July a joint federal/provincial environmental review recommended approval but Environment and Climate Change Minister Jonathan Wilkinson has suggested his cabinet might reject the Alberta project.

 

A 1993 episode of Gold Trails and Ghost Towns discusses the Sullivan mine.

Open and shut cases: West

December 20th, 2019

A look at the western provinces’ mine openings and closures for 2019 and 2020

by Greg Klein

A look at the western provinces’ mine openings and closures for 2019 and 2020

Western Potash began Saskatchewan’s first solution mining operation for this commodity in July.
(Photo: Western Potash)

 

This is Part 2 of a four-part series.

The Exxon Valdez of Canadian mining went into dry dock at the end of May, as Imperial Metals TSX:III put its Mount Polley copper-gold operation on care and maintenance. The company that traded above $16.50 prior to the August 2014 tailings dam failure spent most of 2019 well below $3. Now holding two suspended mines, the company’s operational portfolio has dwindled to a 30% stake in B.C.’s Red Chris copper-gold open pits. In August Imperial sold the other 70% to ASX-listed Newcrest Mining for US$775 million.

But if human error can dump eight million cubic metres of tailings muck into the waterways, human ingenuity can respond. As the five-year anniversary approached, Geoscience BC founding president/CEO and Imperial’s former chief scientific officer ’Lyn Anglin offered her perspective on the $70-million clean-up program, which continues during the mine’s suspension.

 

Maybe its status as Canada’s largest diversified miner leaves Teck Resources TSX:TECK.A/TSX:TECK.B open to greater diversity in downturns. The company blamed global economic uncertainties for “a significant negative effect on the prices for our products, particularly steelmaking coal.” But the company attributes its most recent coal mine closures not to market forces but to depletion. That was the verdict for the mid-year shutdown of B.C.’s Coal Mountain and for Alberta’s Cardinal River, scheduled to follow in mid-2020.

A look at the western provinces’ mine openings and closures for 2019 and 2020

Some depleted mines notwithstanding, Teck Resources
has over four decades of B.C. coal reserves.
(Photo: Teck Resources)

Although Teck warned employees in September of layoffs, noting a price drop from about $210 to about $130 per tonne over the previous weeks, further mine closures weren’t specified. Depletion hardly concerns Teck’s four remaining Kootenay-region coal operations. The company says there’s enough steelmaking stuff to keep Line Creek, Greenhills, Elkview and Fording River busy for 18, 28, 38 and 43 years respectively.

While the company now focuses on its Quebrada Blanca Phase 2 copper development project in Chile and its JV at the port of Vancouver’s Neptune terminal, Teck’s $20-billion proposal for Alberta might serve as an affront to the great cause of our time. In July Teck managed to get a recommendation of approval from a joint federal/provincial environmental review panel for its Frontier oilsands project. Media reports, however, suggest Environment and Climate Change Minister Jonathan Wilkinson and his cabinet might reject the panel’s recommendation.

 

Whether it brought relief or astonishment to local supporters, in July Western Potash finally began building its long-delayed Milestone potash project in southern Saskatchewan.

A look at the western provinces’ mine openings and closures for 2019 and 2020

A determined-looking Western Potash group
celebrates a milestone in Saskatchewan mining.
(Photo: Western Potash)

Expectations had risen and fallen a few too many times since at least 2015, when the company announced it had secured funds sufficient for a scaled-down capex. But in October Western began solution mining, the first application of this method for potash in Saskatchewan. The innovative operation will also be “the first potash mine in the world that will leave no salt tailings on the surface, thereby significantly reducing water consumption.”

Now a subsidiary of Western Resources TSX:WRX, the company plans “hot mining” early in the new year to pump brine containing potassium chloride into a crystallization pond at surface, leaving unwanted sodium chloride underground. By Q3 2020 a newly built plant will process the potash for an off-take agreement covering all Phase I production. Phase II calls for expanded operations to support an average 146,000 tpa output over a 12-year life.

 

Yet the mine starts up amid cutbacks and shutdowns elsewhere. The province’s big three potash producers, Nutrien TSX:NTR, Mosaic NYSE:MOS and K+S Potash Canada, all reduced output in 2019. Between them, Nutrien and Mosaic suspended four operations, at least one indefinitely.

In August workers at Mosaic’s Colonsay operation learned of an indefinite layoff, reportedly to last anywhere from six months to a matter of years. Further discouragement came in November when the United Steelworkers confirmed that the company was moving equipment from Colonsay to its Esterhazy operation, itself subject to reduced output.

A look at the western provinces’ mine openings and closures for 2019 and 2020

Saskatchewan’s tallest structure stands over a shaft reaching
more than a kilometre underground at Mosaic’s Esterhazy K3.
(Photo: Mosaic)

Esterhazy’s ambitious K3 expansion project, however, continues unfazed by current market conditions. With construction started in 2011, commissioning begun in December 2018 and full production not scheduled until 2024, the new underground operation will replace Esterhazy’s K1 and K2 mines, keeping the K1 and K2 mills busy at the world’s largest potash mining complex.

In September Nutrien announced it would “proactively” suspend its Allan, Lanigan and Vanscoy potash mines. Workers at the first two got December 29 recall notices, but Vanscoy’s resumption has yet to be revealed.

Nevertheless, company bosses expressed optimistic 2020 foresight. It will be “a strong year for crop input demand for which we are well-positioned to benefit,” predicted Nutrien president/CEO Chuck Magro. His Mosaic counterpart Joc O’Rourke expects “a very strong application season in Brazil and North America, and a better supply and demand balance in 2020.” .

 

That year or the next just might be momentous for Saskatchewan potash. BHP Group NYSE:BHP’s board of directors has until February 2021 to decide whether to complete Jansen, a $17-billion project that would challenge the province’s potash protocol.

The threat of competition might take an unexpected turn, however. As reported in the Financial Post, at least two analysts say rival companies could attack pre-emptively by boosting production to lower prices and discourage new mine development.

 

Holding top positions globally are Saskatchewan as potash-producing jurisdiction and Saskatoon-headquartered Nutrien as potash miner. The province also boasts world stature for uranium but has no new U3O8 operations expected during this survey’s time frame. Even so, industry and investors watch with interest as Denison Mines TSX:DML, NexGen Energy TSX:NXE and Fission Uranium TSX:FCU each proceed with advanced large-scale projects.

This is Part 2 of a four-part series.

International Montoro Resources employs high-tech analysis of Elliot Lake-region nickel-copper prospect

September 10th, 2019

by Greg Klein | September 10, 2019

A geophysical analysis on the property released last March found targets described as “good candidates for semi-massive nickel-copper mineralization.” Now International Montoro Resources TSXV:IMT has contracted Mira Geoscience to compile and analyze a much larger data set for the Pecors Lake project, part of the 1,840-hectare Serpent River property in Ontario’s Elliot Lake district.

International Montoro Resources employs high-tech analysis of Elliot Lake-region nickel-copper prospect

Nickel-copper potential brings new interest to
International Montoro Resources’ Serpent River property.

Historic drilling on Serpent’s southwestern area found uranium-rare earths mineralization. But extensive geophysical programs completed last year alerted Montoro to nickel-copper-PGE potential as well. A 3D model revealed that three assumed magnetic anomalies at Pecors actually comprise one contiguous anomaly estimated to be five kilometres long, two kilometres wide and two kilometres deep.

Considered pioneers of advanced geological and geophysical 3D and 4D modelling, Mira Geoscience will enter a library of data into its Geoscience Analyst 3D interactive platform. Included will be Ontario Geological Survey geochem and petrographic studies; OGSEarth data from drilling conducted by Teck Resources TSX:TECK.A/TSX:TECK.B, Rio Tinto NYSE:RIO, BHP Billiton NYSE:BHPand others on or near the property; federal government regional gravity and magnetic surveys; Montoro’s 22 drill holes; and downhole EM data for two holes reaching depths of one and 1.3 kilometres respectively.

In central British Columbia, Montoro had a 43-101 technical study completed in April for its recently acquired Wicheeda North property, adjacent to the Wicheeda rare earths deposit currently being drilled by Defense Metals TSXV:DEFN under option from Spectrum Mining. The report states that Wicheeda North “has the potential to host, and should continue to be explored for, rare earth element mineralization because it occurs within a favourable geological belt known to contain carbonatite-hosted REE mineralization.”

A 3D magnetic inversion was completed in June for the property, which Montoro has expanded to 2,138 hectares.

The company’s portfolio also includes the 2,300-hectare Duhamel property in central Quebec, considered prospective for nickel-copper-cobalt, as well as titanium-vanadium-chromium.

Along with Belmont Resources TSXV:BEA, Montoro shares 50/50 ownership of two uranium properties in northern Saskatchewan’s Uranium City area.

Last month Montoro closed a private placement first tranche of $47,500.