BHP’s copper and nickel output hit by Covid absenteeism and local unrest 

Australian multinational mining giant BHP has reported a lower-than-expected copper and nickel output.

The reduction has been blamed on Covid-19 absenteeism and social unrest throughout Chile, leading copper and nickel output to fall 10% and 13%, respectively. 

Large outbreaks of Covid-19 stifled production in Chile, made worse by roadblocks and social unrest at its Escondida mine.

The mine has been the centre of controversy lately, with a recent legal filing by the Government of Chile against the mines operated by BHP, Antofagasta and Albemarle on the grounds of alleged “environmental damage” in the northern Salar de Atacama salt flats. 

As a result, BHP has reduced its maximum expected copper output for the year ending 30 June by 140,000 tonnes and expected nickel output by 10,000 tonnes.

Brazilian competitor Vale similarly reported a very weak start to the year, as heavy rains and operational problems led to a 6% decline in production, to 64 million tonnes in the first quarter of this year.

These declines should provide further support for iron ore prices, as it remains unlikely that Vale will hit its expected production targets. 

De Beers secures diamond exploration licenses in Angola 

Diamond mining giant De Beers has signed two mineral investment contracts (MICs) with the Angolan Government for license areas in the northeast part of the country. 

The MICs provide the firm with mineral rights involving all stages of diamond resource development, from exploration to mining, over a period of 35 years. In addition, De Beers Group and Angola’s state-owned diamond company Endiama will form separate new joint venture companies to manage each of the concession areas. 

Following years of negotiations, the company applied for exploration licences in December 2021. This comes on the heels of the country’s substantive reforms in its diamond sector. 

The latest move marks De Beers’ return to Angola, following its exit in 2012 due to the expiry of its seven-year term concession.

Subject to receiving regulatory approvals, De Beers plans to start exploration activities in the licence areas this year. 

In a press statement, De Beers said: “De Beers Group will hold a substantial majority in the new companies, with Endiama having the ability to incrementally increase its equity share over time in line with certain conditions outlined in the shareholder agreements, albeit with De Beers Group maintaining a substantial majority.” 

Peruvian ministry to negotiate with community groups over Coroccohuayco mine 

The Peruvian Ministry of the Environment and the southern province of Espinar have launched a dialogue effort with local communities.

The talks aim to find solutions to the environmental and social issues that have arisen as a result of the Coroccohuayco copper and gold project. 

Deputy minister of the environment Elizabeth Silvestre met with representatives of 11 peasant communities.

The residents argued that, if developed, the mine will pollute their environment and, in particular, their freshwater sources.

Among the 11 communities, five announced that they will start a strike on 20 April 2022 to pressure President Pedro Castillo to visit Espinar and meet their demands. 

In October 2021, Antapaccay announced that it wasn’t planning to execute the project in the short term due to the protests the project had engendered in the local community.

Mexico’s lower house supports move to nationalise lithium reserves 

The lower house of Congress in Mexico has passed a proposed change in legislation, which enables the country to have exclusive rights to its lithium reserves. 

This move by President Andres Manuel Lopez Obrador received the support of 298 voters and 197 abstentions.

The initiative, which seeks to amend a portion of the 1992 legislation, is now subject to the Senate’s approval, which will see lithium exploration and use reserved for the nation under federal authority.

Obrador was quoted as saying by BNamericas at a press conference: “We are going to protect our lithium, the lithium of Mexico, the lithium of our generation and of future generations, of our children and our grandchildren. 

“I make a respectful call to the legislators so that … we protect lithium and lay out the structure for a company, like [state-owned power company] CFE, that will handle everything related to lithium, backed by the support of research facilities in the country and the experience learned from other countries.” 

Northern Star to offload Australian gold assets to Black Cat 

Australian gold producer Northern Star Resources has agreed to sell its wholly-owned Paulsens Gold Operation (Paulsens) in Western Australia, and Western Tanami Gold Project (Western Tanami) in the Northern Territory, Australia, to Black Cat Syndicate for $33.2m (A$44.5m). 

Black Cat Syndicate will pay $10.6m (A$14.5m) in cash at the completion of the sale and issue 8.3 million of its fully paid ordinary shares to Northern Star. 

It will also pay $11m (A$15m) in “deferred consideration” on 30 June 2023, as well as $7.3m (A$10m) in contingent payments linked to future production upon completion of the deal. 

Planned to be completed in June 2022, the sale of Paulsens and Western Tanami assets is subject to conditions, including raising at least $18.3m (A$25m) by Black Cat through the issue of shares by 15 June 2022. 

Northern Star managing director Stuart Tonkin said: “The sales of Paulsens, our foundation asset, and the Western Tanami Gold Project align with Northern Star’s five-year strategic plan to generate superior shareholder returns through active and disciplined portfolio management."

Russia’s Nordgold closes Burkina Faso gold mine 

Russian gold mining firm Nordgold has closed its Taparko mine in Burkina Faso and declared force majeure over security concerns in the country reported Reuters, citing a company statement. 

Nordgold subsidiary Société des Mines de Taparko director-general Alexander Hagan Mensa was cited by the news agency as saying that the gold producer is facing threats against its operations and employees each day. 

According to the statement, access to the mining site has become "quasi-impossible’"in recent weeks, placing the lives of staff in danger at the site, which is located close to the tri-border area of Niger, Burkina Faso and Mali. 

Mensa noted that staff has been instructed to "follow the evacuation plan and management’s instructions".

In recent months, the mine, which comprises a processing plant, ball milling facility and CIL circuits, had witnessed several attacks by militants.