24 April 2019

Three killed and 51 missing after landslide in Myanmar jade mine

Three people have died and at least 50 more have been trapped following a mudslide at a jade mine in the Hpakant region of Myanmar’s Kachin state.

According to the state’s Ministry of Information, a lake, covering five acres next to the mine, collapsed, pouring mud into an area where miners were working around 20 minutes past midnight. The mudslide buried workers and equipment, and officials have little hope that those trapped will be rescued, or even that their bodies will be recovered.

“Finding bodies is proving difficult,” said Khin Maung, chairman of the Thingaha Philanthropic Association in the nearby village of Seikmu. “About 60 volunteers from our philanthropic association are participating in the search for bodies.”

While Phone Garein, deputy head of the Phakant General Administration Department, claimed that officials would complete “preventative measures” to minimise the risk of further breaches, the region has a poor history of safety compliance. In 2015, 113 people were killed, and more than 100 left missing, after a similar mudslide at a different jade mine in Hpakant.

The mine is owned by Australian company Unity, although the casualties are reported to have been working for domestic miner Myanmar Thura and Chinese company Golden Nine Dragons. While officials said that there were no migrant workers in the mine at the time of the accident, as the incident took place overnight, the presence of foreign mining companies in the country is a relatively new phenomenon, following reforms to the national mining law in 2016 that encouraged foreign investment in the country’s mining sector.

These reforms also deregulated elements of the country’s mining laws, with mining companies now guaranteed a production permit if they successfully complete prospecting and exploration work in a region. Much of the responsibility for awarding licences is also decentralised, with individual state governments responsible for ensuring safe practices, so health and safety compliance can vary across the country.

The accident also damaged more than 30 pieces of mining equipment, including machines and tracks, further damaging the Kachin jade industry that was estimated to be worth around £31bn in 2014. While the 2016 reforms aimed to take advantage of this undeveloped mineral wealth, including extending the maximum duration of mining permits from 15 to 50 years, the changes did not address operational safety.

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24 April 2019

Sandvik and Codelco to digitise Chuquicamata underground mine

Swedish engineering company Sandvik will provide its automation and digitalisation solutions, AutoMine and OptiMine, to Chilean state-owned company Codelco for implementation at the Chuquicamata underground copper mine.

Codelco, which controls nearly 19% of the world’s copper reserves, is implementing a 10-year project to prolong its existing operations, with work expected to begin this year.

Under the project, Codelco is converting the open cast Chuquicamata mine to an underground mine and hopes that the Sandvik technology will make Chuquicamata one of the most efficient and advanced underground mines in the world.

The Swedish company will deliver a production automation system based on the AutoMine and OptiMine products that will allow Codelco to fully automate its new fleet of Sandvik LH621 loaders.

The systems combine manual operations and autonomous equipment, giving workers real-time control over production and mine development.

Chuquicamata underground operations manager Andrés Avendaño said: “Using our mines to full effect is part of our focus on sustainability and a key driver for our business.

“Automation and optimisation are critical to getting the most from our mines and keeping our people safe while we do it.”

Sandvik installed the first AutoMine loading system at Codelco’s El Teniente copper mine in 2004.

Sandvik Mining and Rock Technology automation vice-president Riku Pulli said: “Codelco has been an important partner for us from the beginning. It’s fantastic to continue the partnership as our visions are well aligned. We look forward to working with Codelco to deliver even smarter, safer, more productive mining through digitalisation.”

While AutoMine deals with all aspects of automation, including remote and autonomous operation, multi-machine control and full-fleet automation using automatic mission and traffic control capabilities, the OptiMine suite of digital tools helps analyse and optimise mining production and processes.

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23 April 2019

China to penalise 163 officials for failing to curb aluminium emissions

The Chinese Ministry of Ecology and Environment has announced that there will be penalties for officials in Shandong, the country’s largest aluminium producing centre, for failing to cut coal consumption to limit the environmental impacts of aluminium production.

The coastal province has a total production capacity of 12.6 million tonnes (mt), more than triple the cap of 4mt introduced in 2017. It is a significant contributor to harmful emissions at a time when China is struggling to curb them across its metals and mining sector. The province also boasts an annual steel production of around 80mt, equal to 8% of the national total.

Shandong has tried to reduce the environmental footprint of its aluminium sector, rolling out a seven-year plan to restructure the industry in 2018. The province is aiming to cut electrical usage by 12,800kwh/tonne by 2022, and by a further 12.500kwh/tonne by 2025 and is moving to phase out inefficient electric cells by the same year.

However, the moves have been largely ineffective and the provincial government has now exposed 163 officials in a central government investigation that are responsible for a number of violations, including failing to supervise efforts to cut coal use. The investigation also found that some officials were actively covering up illegal behaviour, prompting the central government to begin a “rectification” campaign in the province, which is expected to last one month.

The national government has also begun a process of forcibly closing aluminium facilities to quickly cut down on emissions, but this has damaged the sector; the Shandong Weiqiao Pioneering Group was forced to close one-tenth of its operations last year, which resulted in a fall in production of 650,000 tonnes.

The news follows a report from the Ministry of Industry and Information Technology released last year that found that China’s aluminium producers suffered reductions to year-on-year profit of $3.69bn between January and September. The China Nonferrous Metals Industry Association also told Caixin last year that four-fifths of the sector’s companies are now losing money.

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23 April 2019

US environmentalists oppose plan to open up 51 million acres to mining

US environmentalists are seeking legal action against a government plan to open up 51 million acres of land in western states to and drilling operations, claiming the proposal will threaten the habitat of the greater sage-grouse.

The Western Watersheds Project (WWP), Wildearth Guardians, the Center for Biological Diversity and Prairie Hills Audubon Society filed the lawsuit on Friday with the District Court of Idaho, claiming that the plan put forward by Interior Secretary David Bernhardt and the Bureau of Land Management (BLM) threatens the near-endangered bird.

Sage-grouse populations have been protected in part thanks to a plan put in place in 2015 under the Obama administration, but the groups claim that the BLM’s new proposal will undo this protective work.

The BLM proposal will see environmental regulations relaxed in California, Colorado, Idaho, Nevada, Oregon, Utah and Wyoming. The plan includes the removal of a cap on energy and mining projects, currently fixed at one per 640 acres of land, in Idaho and Utah, and removes an obligation for the BLM to prioritise new oil and gas projects outside of sage-grouse lands in all seven states.

“Sage-grouse are an American icon that will be irreparably harmed by the wanton destruction of sagebrush habitats that the recent amendments allow,” said Erik Molvar of the WWP. “From rolling back protections in sensitive habitats to removing habitat designations entirely, the plans could cause already fragile sage-grouse populations to disappear completely. We need to stop that.”

The Idaho court also found that the BLM incorporated “every one” of the requests of the Western Energy Alliance, an industry body promoting new extractive projects in the western states, when completing the proposal’s environmental review between 2017 and 2019. The BLM is also alleged to have ignored recommendations made by the US Environmental Protection Agency and other environmental groups during the consultation process.

While the court has not set a date to conclude the case, the environmental groups have asked for the issue to be resolved as quickly as possible. The news also follows a similar legal dispute in the state of Montana, where a court rejected the government’s attempts to open up coal mining on state lands. President Trump removed a ban on coal mining on a number of lands in 2017, but the court found that that government had not adequately considered the environmental impacts of increased mining.

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23 April 2019

Barrick Gold, Newmont clear regulatory conditions for Nevada JV

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Canadian mining company Barrick Gold and US-based Newmont Goldcorp have cleared regulatory conditions for their joint venture in Nevada, US, with the Federal Trade Commission allowing the early termination of the waiting period under the Hart-Scott-Rodino Act on 19 April 2019.

The joint venture, in which Barrick will have a stake of 61.5% and Newmont Goldcorp 38.5%, is expected to create the world’s largest gold producing complex. Barrick will operate the complex.

Both companies expect the joint venture to generate savings of $500m a year within the first five years.

The joint venture will include Barrick’s Goldstrike, Turquoise Ridge, Cortez, and Goldrush, and Newmont’s Carlin, Twin Creeks, Phoenix, Long Canyon, in addition to the associated processing plants and infrastructure of both companies.

However, Barrick’s Fourmile project and Newmont’s Fiberline and Mike deposits and Cripple Creek & Victor mine will not be part of the joint venture.

In 2018, the operations involving the joint venture produced more than four million ounces of gold.

According to Barrick president and CEO Mark Bristow, integration of the joint venture assets and setting up of the new business are expected to be completed within this quarter.

Bristow said: “The joint venture agreement represents a historic accord between our companies that will unlock the enormous geological potential of the Nevada goldfields and maximize its many value-creating opportunities.”

By combining their operations in Nevada, both companies expect to save more than $5bn over 20 years.

Newmont Goldcorp CEO Gary Goldberg said: “By combining our operations and assets in Nevada we will be able to extend profitable production, lower costs and create new opportunities for our stakeholders in the region.”

In March 2019, Barrick Gold and Newmont Mining signed an implementation agreement to create a joint venturecombining their mining operations, assets and reserves in Nevada.

Prior to the agreement, Newmont rejected an unsolicited, all-stock negative premium merger proposal from Barrick after the former’s board of directors unanimously determined that the proposal was not in the best interests of its shareholders.

23 April 2019

US court slams Trump administration’s coal mining policy

A US federal court has suspended a government plan to open up coal mining on federal lands, claiming that it did not adequately consider the environmental impacts of the proposal.

The ruling is a blow to President Donald Trump’s plans to promote coal mining on federal lands.

In his ruling, US District Judge Brian Morris in Montana stated that the Interior Department did not adequately consider the environmental impact of mining before lifting a moratorium on coal mining on public lands.

In 2017, Trump revoked the ban imposed by his predecessor Barack Obama to remove restrictions on the coal mining industry. Agitated by the policy change, several environmental groups approached the court seeking a reversal of the policy.

The judge observed that the Interior Department avoided an environmental review of the 2017 action by claiming it “a mere policy shift”. However, he found fault with this claim, stating that such a “major federal action” warrants a detailed analysis of its environmental impacts.

The National Environmental Policy Act of 1970 (NEPA) mandates the administration to undertake necessary measures and precautions before making decisions on permit applications.

Morris said: “Federal Defendants’ decision not to initiate the NEPA process proves arbitrary and capricious.

“Plaintiffs’ remaining claims prove contingent upon Federal Defendants’ initiation of the NEPA process and subsequent conclusions.”

Furthermore, the judge noted that another ruling will be made in the coming months on whether the Obama-era moratorium on coal mining should be reinstated.

Earthjustice attorney Jenny Harbine was quoted by The New York Times as saying: “The Interior Department has to go back to the drawing board if they want to continue to sell coal mining leases on public lands – they have to do a better job of legally and scientifically justifying this.”

In a separate move, a district court quashed a permit awarded to Lucky Minerals to carry out gold mining exploration in Emigrant Gulch just north of Yellowstone National Park.

The ruling means Lucky Minerals cannot proceed with its plans to perform exploratory drilling in the area.

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19April 2019

Sibanye-Stillwater reaches deal to end strike at SA gold operations

Precious metals mining firm Sibanye-Stillwater has reached an agreement with the Association of Mineworkers and Construction Union (AMCU) to end a five-month strike at gold operations in South Africa (SA).

AMCU went on strike in November last year at Sibanye’s gold operations due to a pay dispute.

The strike has affected the company’s production and earnings. According to Reuters, the labour action has cost the miner more than $100m in lost revenue and 110,000t of missed gold output.

As part of the settlement deal, AMCU has agreed to sign the 2018 three-year wage agreement previously inked with National Union of Mineworkers, Solidarity and UASA in respect of wages and conditions of service from 1 July 2018 to 30 June 2021.

The union also committed to concluding a peace pact within 30 days and abiding by the decisions of the court. Furthermore, AMCU will not pursue further appeals.

Sibanye-Stillwater CEO Neal Froneman said: “We are encouraged by AMCU’s commitment to peace and safety. We are hopeful that the relationship can now be rebuilt in a constructive manner, for the future benefit of all stakeholders.

“It is with sadness that we reflect on the losses and hardship resulting from the strike, which include lives lost and serious injuries sustained. We are fully committed to restoring the gold operations to profitability, for the benefit of all stakeholders including employees, the local communities and those dependent on the regional economy.”

Sibanye will make an ex gratia payment of R4,000 ($252.96) to all gold employees in the form of cash or a voucher, and offer a cash advance of R5,000 ($316.20) to be repayable over a period of 12 months.

The company also agreed to make transportation arrangements to bring back employees to work.

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19 April 2019

Sibanye-Stillwater reaches deal to end strike at SA gold operations

Precious metals mining firm Sibanye-Stillwater has reached an agreement with the Association of Mineworkers and Construction Union (AMCU) to end a five-month strike at gold operations in South Africa (SA).

AMCU went on strike in November last year at Sibanye’s gold operations due to a pay dispute.

The strike has affected the company’s production and earnings. According to Reuters, the labour action has cost the miner more than $100m in lost revenue and 110,000t of missed gold output.

As part of the settlement deal, AMCU has agreed to sign the 2018 three-year wage agreement previously inked with National Union of Mineworkers, Solidarity and UASA in respect of wages and conditions of service from 1 July 2018 to 30 June 2021.

The union also committed to concluding a peace pact within 30 days and abiding by the decisions of the court. Furthermore, AMCU will not pursue further appeals.

Sibanye-Stillwater CEO Neal Froneman said: “We are encouraged by AMCU’s commitment to peace and safety. We are hopeful that the relationship can now be rebuilt in a constructive manner, for the future benefit of all stakeholders.

“It is with sadness that we reflect on the losses and hardship resulting from the strike, which include lives lost and serious injuries sustained. We are fully committed to restoring the gold operations to profitability, for the benefit of all stakeholders including employees, the local communities and those dependent on the regional economy.”

Sibanye will make an ex gratia payment of R4,000 ($252.96) to all gold employees in the form of cash or a voucher, and offer a cash advance of R5,000 ($316.20) to be repayable over a period of 12 months.

The company also agreed to make transportation arrangements to bring back employees to work.

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