Welcome back to your weekly mining news recap, where we catch you up on some of the news you may have missed. This week’s headlines include Glencore’s plan to reduce its arsenic emissions, the suspension of operations at Trevali’s Caribou mine and a new joint venture to exploit B.C.’s Turnagain deposit.
Glencore will invest $520 million over five years into its Horne smelter in Rouyn-Noranda, Quebec, to bring its arsenic emissions down to acceptable levels by 2027, as reported by Bloomberg. The company was admonished by the province’s health authorities last week after a public health study revealed emissions at the site were 55 times higher than approved health safety standards. The investment will include a high-capacity air cleaning system and an energy-efficient casting wheel in order to modernize the plant and reduce emissions.
Turquoise Hill rejected majority shareholder Rio Tinto’s $2.7 billion takeover offer, claiming it did not reflect the full and fair value of the company, as reported by Mining.com. Rio Tinto already holds a 51 per cent stake in Turquoise Hill, with the Oyu Tolgoi mine in Mongolia being the mining giant’s main copper growth project. Turquoise Hill has stated that significant changes in market conditions in the equity and copper markets since the initial offer was put forward in March 2022 have led to its refusal.
Get the inside perspective on how operations restarted in June at Imperial Metals’ Mount Polley mine after it was relegated to care and maintenance in 2019 due to unfavourable copper prices. To get back into working order, the mill needed repairing, the grinding and processing circuit needed refurbishing and a $22.4 million investment was necessary. Earning back the trust of the local population, which first took a significant hit in 2014 from the disastrous tailings dam breach, was also a challenge.
The recently passed Inflation Reduction Act in the United States could have substantial ripple effects in Canada, notably including attractive financial measures for the development of North American electric vehicles (EVs), as reported by CBC News. On top of preferential tax treatment for EVs assembled on the continent, the Act also created a pot of hundreds of millions of dollars to jump-start a new domestic industry for EV battery components. With Canada being listed as a domestic source under the U.S. Defense Production Act, under which critical minerals are included, many are hopeful for cooperation opportunities.
Operations have been suspended at Trevali’s Caribou zinc, lead and silver mine near Bathurst, New Brunswick, following low productivity and a drop in revenue, as reported by CBC News. The company is now reviewing the mine’s operations, having stated that it would explore all options for its future. The news came after the release of Trevali’s second quarter financial results, which revealed a 44 per cent decrease in revenue compared to Q1.
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Giga Metals and Mitsubishi Corporation have formed a joint venture company to develop the Turnagain nickel-cobalt deposit in northern British Columbia under the shared banner of Hard Creek Nickel Corp., as reported by Mining.com. Giga Metals will receive an 85 per cent equity interest in the venture in exchange for contributing all related assets for the Turnagain project, which it will administer. Mitsubishi, a global trading and investment firm, will receive 15 per cent equity interest in the Hard Creek firm for eight million in cash.
Canada Nickel Company confirmed a new discovery at its Deloro property southeast of Timmins, Ontario, where ultramafic lithologies and nickel mineralization have been found, as reported by Mining.com. The Deloro property is part of a larger set located within a 95-kilometre radius from the company’s flagship Crawford project, which the company says has the potential to become a leading nickel district. Preliminary economic assessment for Crawford estimated a production of 842,000 tonnes of nickel and a 25-year life of mine.
Pure Gold revealed that the reason behind the rough start to its Red Lake mine in terms of production, grades and mill throughput was that the company started mining from the wrong end of the deposit, as reported by Northern Ontario Business. The initial starting point was thinner, more complicated and of a lower grade than the rest of the deposit. The company has since established a new resource model and a more accurate mineral resource estimate, with progress now heading in what it claims is a healthier direction for Q3 and Q4.
The U.S. Environmental Protection Agency issued a draft Underground Injection Control permit for Taseko Mines’ Florence copper project in Arizona. If granted, the permit will unlock construction and operation of the facility, which Taseko expects to have the lowest energy and greenhouse gas intensity of any North American copper producers. First, the draft permit will have to go through a public comment period and a virtual public hearing.
The Mining Association of Canada (MAC) is urging its members to make more substantial efforts to tackle equity, diversity and inclusion issues, warning that a failure to do so could worsen the chronic shortage of skilled labour, as reported by the Financial Post. MAC is currently seeking public comment on a draft protocol for inclusive and respectful workplaces to address the issue. The move comes in the wake of the insights provided by Rio Tinto’s own internal survey, which revealed a culture of systemic bullying, sexual harassment and racism.
That’s all for this week. If you’ve got feedback, you can always reach us at editor@cim.org. If you’ve got something to add, why not join the conversation on our Facebook, Twitter, LinkedIn or Instagram pages?
The CIM Magazine Weekly Mining News Recap for August 12
A recent project review raises costs and lowers net present value for the Iamgold and Sumitomo Metal Mining joint venture