AngloGold Ashanti closes $370m deal to acquire Corvus Gold

AngloGold Ashanti has concluded the takeover of Canada-based mineral exploration company Corvus Gold for nearly $370m in cash. According to the deal signed in September 2021, Corvus Gold shareholders received $3.24 in cash per share from AngloGold.

The firm purchased 80.5% outstanding common shares of Corvus Gold, which is developing gold-silver projects in the Beatty District in the US state of Nevada. Prior to the transaction, AngloGold owned an indirect stake of 19.5% in Corvus.

AngloGold plans to initially develop the Corvus’ North Bullfrog project, which comprises leased, patented and unpatented mining claims covering an area of 90.5km². Located 10km north of Beatty and 8km north of the Bullfrog Mine, the project is scheduled to start production in the next three to four years.

AngloGold Ashanti CEO and executive director Alberto Calderon noted: “The combination of Corvus’ assets along with our own neighbouring targets – including Silicon, Merlin and Rhyolite – provides the opportunity for the Beatty District to become a potential Tier 1 asset with first production in approximately the next three years.
“We look forward to further engagement with local stakeholders as we develop the Beatty District.”

Corvus president and CEO Jeffrey Pontius added: “AngloGold Ashanti’s long history of success and responsible exploration, development, mine building and operations will further augment the exceptional discoveries at the North Bullfrog and Mother Lode projects.” 

Rio Tinto to delay Jadar lithium project

Rio Tinto has announced that the first production from its new lithium mine in the Jadar Valley, Serbia, has been pushed back by at least a year due to slow progress in obtaining the necessary licenses for an environmental assessment.

The delay means that the first saleable production from the project will be available by 2027, rather than 2026 as first projected. Progress on the mine had also been curtailed by a sustained protest movement objecting to both Rio Tinto’s project, and Zijin Mining’s recently-opened Čukaru Peki copper and gold mine, amid claims they will pollute land and water in the Balkan nation.

In response to these concerns, Rio Tinto released a statement: “We fully understand the concerns amongst some Serbian stakeholders about environmental impacts, and we will continue to engage in demonstrating the project has developed mitigation solutions in the project plan.”

If the project goes ahead, Jadar will become one of the biggest lithium mines in the world, with a construction cost estimated at $2.4bn. Rio Tinto has estimated that over its 40-year life, the mine will produce 2.3 million tonnes of battery-grade lithium carbonate and 160,000 tonnes of boric acid annually. Both of these are critical to developing lithium-ion batteries and renewable technology.

“I think it is a decision for the future, and I believe it would be smarter, better, and fairer if it is brought by the political elites that will lead the country in the next four years,” said Serbian Prime Minister Ana Brnabić.

Teck Resources reports strike notice at Highland Valley Copper

Teck Resources has reported that United Steelworkers Local 7619, a union branch representing 1,048 workers at its Highland Valley Copper Operations in British Columbia, Canada, has issued a strike notice.

The notice entitles the union to begin strike action following a 72-hour strike notice period and 48 hours after the mediator reports to the Labour Relations Board, making the earliest date strike action can take place 16 January. The potential strike notice comes when both parties are negotiating a collective bargaining agreement, replacing the expired agreement. Negotiations between the two sides are ongoing, with both parties scheduled to meet on 14 January to try and strike a deal preventing a work stoppage.

Highland Valley Copper is the largest open-pit copper mine in Canada. It has been operational since 1962, producing both copper and molybdenum concentrates through autogenous and semi-autogenous grinding and flotation. Annual copper production from 2022 to 2024 is expected to be between 135,000 tonnes and 165,000 tonnes per year.

The potential work stoppage will be the second one in the space of a year after wildfires forced an evacuation order on 14th August, leading all workers on site to be demobilised and moved to safety.

Lithium Power to demerge Western Australian lithium assets

Lithium Power International (LPI) is planning to demerge its hard rock lithium assets in Western Australia into a subsidiary that will look to list on the Australian Securities Exchange.

Over the coming six months, the firm will create a dedicated Western Australia-focused lithium exploration company to realise the assets’ value. LPI currently owns highly prospective assets in the exploration stage in Western Australia. These include three tenements in the Greenbushes region and three tenements in the Pilbara region.

LPI shareholders will secure the spun-out shares on a pro-rata basis, which will be done through a capital reduction and in-specie distribution. The company also expects the demerger process to be completed in the first half of 2022, subject to securing all necessary approvals. The demerger forms part of LPI’s efforts to focus on developing its Maricunga Lithium Brine Project in Chile.

Lithium Power CEO Cristobal Garcia-Huidobro said: “These assets deserve their own time, attention and resources, and LPI’s Board believes that it is the best outcome for LPI shareholders to create a dedicated, Western Australia-focused company that has the technical, human and financial resources to advance these exciting assets.”

Neo Lithium obtains EIA approval for 3Q Project in Argentina

Canada-based Neo Lithium has received environmental impact assessment (EIA) approval for the construction and operation of the Tres Quebradas lithium brine project (3Q Project) in Catamarca Province, Argentina.

The firm said that its wholly owned subsidiary Liex received a declaracion de impacto Ambiental (DIA) from the Environmental and Mining Authority in Catamarca Province. According to Neo Lithium, the DIA approved Liex’s EIA for the construction and operation of the project.

Based on a study, the project is expected to have an average annual production of 20,000 tonnes of lithium carbonate equivalent (LCE) in the first 20 years of operation. Production is expected to reduce thereafter.

According to estimates, the project has proven and probable reserves of 1,671,900 tonnes of LCE with an average 786 mg/l Lithium for 50 years of the life of mine, and 769,613 tonnes of LCE with an average 912mg/l of lithium for the first 20 years.

In a press statement, Neo Lithium said: “The issuance of the DIA confirms that the EIA is in compliance with the standards and regulations under the national and provincial mining law and contains customary requirements to maintain the DIA in good standing.

“As part of the issuance of the DIA, the company agreed with Catamarca Province to fund an infrastructure trust to be administered for the benefit of the 3Q Project and its impacted areas.”

Kazakhstan President orders mining companies to pay higher taxes

Kazakhstan President Kassym-Jomart Tokayev has ordered his government to levy higher taxes on mining companies in Kazakhstan.

The mining industry within the country is predominantly focused on the extraction and export of raw materials. Estimates are that 80% of mining products are exported from the country, representing 20% of the country’s total exports, and these exports have driven profits for the country’s miners.

The boom in income for miners came after prices of industrial metals surged in the last year. The Central Asian state holds vast mineral reserves, possessing 30% of the world’s chrome ore reserves, 25% of manganese ore, 10% of iron ore, 5.5% of copper, 10% of lead, and 13% of zinc, according to official estimates.

In his speech to parliament, the Kazakhstan President offered large incentives for mining companies in return for the increase in taxes. He stated: “I am ordering the government to come up with a plan [to bring] additional revenues to the budget. In exchange, we can provide large incentives for the exploration and development of new deposits for large mining and other companies.”

This decision also comes under the backdrop of severe unrest. Protests began on 2 January after a sudden increase in the cost of liquefied gas, fuelling protests across the country. In response, Tokayev declared a state of emergency, and with support from Russian troops, the protests were crushed, leading to the deaths of 164 people.