Showing posts with label Newmont Mining Corporation. Show all posts

Thursday, May 01, 2014

TNR Gold And McEwen Mining: Argentina's Caem Optimistic Over Pascua Lama Future TNR.v MUX ABX GDX

Argentina slowly comes to its senses and welcomes mining business back these days. Argentinian government is negotiating with Chile the ways to bring development of Pascua Lama back on track and China is already waiting for it, according to some rumours. Captains of the mining industry are allocating new investments in mining projects in Argentina and Yamana Gold has announced that it will focus on its Cerro Moro Gold and Silver project in Argentina along with Canada Assets.

Los Azules Copper is waiting for its hour to come into the industry spotlight and Pascua Lama development will do the trick. Both projects are located in the same San Juan province in Argentina. Shareholders of TNR Gold and McEwen Mining finally will be rewarded for their patience one day. And now this day is coming closer with every positive development in Argentina.

TNR Gold And McEwen Mining: Chinalco Mining Sets Sights On Copper Projects in Latin America TNR.v MUX FCX NEM ABX

"CS. With Las Bambas deal secured in Chinese hands and Pascua Lama and CITIC rumours still circling in the industry, another industrial group from China is searching the Globe for the best Copper projects left. We have discussed before, that M&A activity in this case signifies the very important bottom in the mining cycle. Barrick Gold talks with Newmont Mining in Gold and Las Bambas purchase by Minmetals Group in Copper.

Western Central Banks are anxious with "the lack of Inflation" - all "official" Inflation measures in US (if you are not eating, paying insurance or rent) are dangerously low, if you consider the unprecedented amount of the freshly printed money in the system. ECB is talking about the new "whatever-it-takes" war on Deflation and Copper is sensing the upcoming change already. Prices of Copper are up last week.

With this report from China Los Azules Copper is very well positioned to bring the Catalyst to TNR Gold and McEwen Mining. Rob McEwen is talking about it as "One of the best Copper projects in the world" and industry's M&A activity will bring it on the investors radar screens again."

Las Bambas Purchase Shows China Is Still in the Hunt for Copper MUX TNR.v LCC.v CU

"We have narrowed it down from the Wall Street headline: the best Copper projects are going to those who can think about the economic development with the long term view. We have been discussing Las Bambas Sale for quite a while here and other our stories could be coming to fruition now as well. Security of supply is the major issue during the next stage of the Rising Power and Chinese companies are scooping the Globe for the best projects available."

Copper M&A: Glencore Xstrata Close to Sale of Its Las Bambas Peruvian Copper Project MUX TNR.v LCC.v

"According to the report China is closing the next mega deal in the resource sector in order to secure the supply of strategic commodities. This time it is copper. Another Chinese company - China National Gold is reported to be in talks with Ivanhoe on DRC Copper mine. We guess that the end of the world will be postponed again and China is using any opportunity to buy the real assets at the cheapest price possible. China is executing the state-level plan to diversify its reserves out of US Dollar and is buying assets in Gold, Copper and Lithium. We have mentioned before the rumours about Barrick Gold being in talks over its huge Pascua Lama with CITIC from China and are monitoring the sector for the conformation.

Rumour Mill: "CITIC Buying Into Pascua Lama" - Can Argentina Mining Really Make Its Come Back? TNR.v MUX ABX LCC.v

"Is this rumour too good to be true for the proud people of Argentina? Can Argentina ever make its come back in mining? On the one hand we have still the very strong perception of the high political risk and on another hand we have reports from the ground about the changing environment in the country:

"Situation in Argentina is changing for the better with recent developments on Repsol compensation. Goldcorp was talking about "Argentina issues easing" and Pan American Silver CEO has recently sated:

"Meanwhile, when asked by an analyst to comment on the future of the Navidad project, PanAm CEO Geoff Burns said he sees signs of noted improvement “in our operating environment and in the attractiveness of making investments” in Argentina.

“There was a new chief of cabinet installed…now a couple of months ago,” he observed. “And he certainly seems to be driving a more business-friendly environment, or at least, pushing for a more business-friendly environment.”

“I was down there [in Argentina] just a couple of weeks ago, and I would say I am more optimistic than I have been in the last couple of years about the future of Argentina and the future of mining investment in Argentina,” Burns advised."

Rob has mentioned as well that Argentina is changing for the better now: "Profits are coming out of the country now and political change will happen within next one and a half years. We have very large Los Azules Copper project in Argentina. Last year large projects went out of favour, we are sitting on it now. Copper prices are above 3 dollars now and we had the new PEA last Fall. It is our source of liquidity in the future."

The reports provided on the links below are suggesting that this particular move by Barrick Gold could not be so far fetched: company has confirmed that it is working on strategic partnerships on Pascua Lama and that partners from China are of a particular interest for the company. Argentinean government has even organised negotiations with Chile in order to bring Pascua Lama project back to life. We will not rush ahead to the conclusions and will wait for the official confirmations about these talks, but the trend is quite apparent for the industry insiders and we had discussed it before.

After the bidding war for Las Bambas Copper in Peru there are not so many world class copper assets left. M&A activity in Copper sector is heating up with ongoing deals on Glencore's Las Bambas, Hudbay's acquisition and OZ Minerals talks with potential partners. Now the projects like Los Azules copper will get more industry attention. We are following McEwen Mining and TNR Gold involved in this project, please read carefully all our disclaimers and do your own DD, as usual.

"TNR Gold is still the sleeping beauty: company holds shares in McEwen Mining after the settlement on Los Azules and Back-In right into Los Azules Copper project in Argentina. Among other assets TNR Gold holds 100% of Shotgun Gold project in Alaska with first resources announced last year and strategic stake in International Lithium."

TNR Gold Insiders report: CEO And CFO Buying Shares.

Among other beneficiaries of improved investment climate in Argentina we should name Lumina Copper with its Taca Taca copper deposit and International Lithium developing Mariana Lithium brine project with its strategic partner Ganfeng Lithium.
We will closely monitor the situation with these developments around Pascua Lama and you can find additional information for your research on the links below.
More."

BN Americas:

Argentina's Caem optimistic over Pascua Lama future

By Juan Andres Abarca

Martín Dedeu, president of Argentina's private sector mining chamber Caem, is optimistic that the Pascua Lamagold-silver project of Canadian miner Barrick Gold (TSX, NYSE: ABX), located in the border of Argentina and Chile, will move forward, despite its current suspended status.

"I'm an absolute optimist that even though the project is facing a slowdown, it will go ahead," he told BNamericas.

Dedeu acknowledged that the status of the project is a concern in Argentina. In March, the country's mining minister Jorge Mayoral said the government was willing to engage in talks with Chile over the future of Pascua Lama.

"It's a subject that is obviously worrisome. But we've found ways to diminish the impact of the project's suspension in San Juan province," Dedeu told BNamericas.

The binational project was officially suspended by the company in October last year, following a series of judicial, regulatory and social setbacks on the Chilean side over environmental issues and breaches of its environmental resolution (RCA).

In addition to the suspension, the project is now facing a multimillion dollar fine from environmental regulator SMA, following an order issued by the environmental court to rewrite the resolution that imposed a fine, saying that the document included a number of "errors and illegalities."

In May 2013 SMA ordered Barrick to pay 16,000 of the country's annual tax units (UTAs), some US$16mn, and ordered the suspension of construction of Pascua Lama due to what it called very serious breaches of the project's RCA regarding alleged damage to the area's water resources.

Following SMA's decision not to challenge the court's decision, Barrick filed a motion with the Chilean supreme court contesting the environmental court's ruling. The court has not viewed the case yet.

Dedeu said that "every country has the right, obviously, to make the decisions it believes to be fair. But I think it would be a shame that our first binational project should fail."

"An agreement needs to be reached that is fair and reasonable and that won't cancel the most important binational project that has ever been developed between the two countries."

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Sunday, April 27, 2014

TNR Gold And McEwen Mining: Chinalco Mining Sets Sights On Copper Projects in Latin America TNR.v MUX FCX NEM ABX

CS. With Las Bambas deal secured in Chinese hands and Pascua Lama and CITIC rumours still circling in the industry, another industrial group from China is searching the Globe for the best Copper projects left. We have discussed before, that M&A activity in this case signifies the very important bottom in the mining cycle. Barrick Gold talks with Newmont Mining in Gold and Las Bambas purchase by Minmetals Group in Copper.

Las Bambas Purchase Shows China Is Still in the Hunt for Copper MUX TNR.v LCC.v CU

Copper M&A: Glencore Xstrata Close to Sale of Its Las Bambas Peruvian Copper Project MUX TNR.v LCC.v

Rumour Mill: "CITIC Buying Into Pascua Lama" - Can Argentina Mining Really Make Its Come Back? TNR.v MUX ABX LCC.v

"Situation in Argentina is changing for the better with recent developments on Repsol compensation. Goldcorp was talking about "Argentina issues easing" and Pan American Silver CEO has recently sated:

"Meanwhile, when asked by an analyst to comment on the future of the Navidad project, PanAm CEO Geoff Burns said he sees signs of noted improvement “in our operating environment and in the attractiveness of making investments” in Argentina.

“There was a new chief of cabinet installed…now a couple of months ago,” he observed. “And he certainly seems to be driving a more business-friendly environment, or at least, pushing for a more business-friendly environment.”

“I was down there [in Argentina] just a couple of weeks ago, and I would say I am more optimistic than I have been in the last couple of years about the future of Argentina and the future of mining investment in Argentina,” Burns advised."

Rob has mentioned as well that Argentina is changing for the better now: "Profits are coming out of the country now and political change will happen within next one and a half years. We have very large Los Azules Copper project in Argentina. Last year large projects went out of favour, we are sitting on it now. Copper prices are above 3 dollars now and we had the new PEA last Fall. It is our source of liquidity in the future."

South China Morning Post:

Chinalco Mining Sets Sights On Copper Projects in Latin America

Metal unit keen on copper projects in Peru with its huge potential and friendly environment

Peng Huaisheng shrugs off the impact from Peru's suspension order on the output of Chinalco Mining's Toromocho project. Photo: Nora Tam

Chinalco Mining, the non-ferrous and non-aluminium metals unit of aluminium giant Chinalco, is seeking acquisition opportunities in Latin America for copper projects with long-term return rates of more than 10 per cent.

Chief executive Peng Huaisheng said the region presented more development potential, especially Peru, where the company has been developing the Toromocho copper project since 2007.

Peru has a strategy to catch up with Chile in mining development

PENG HUAISHENG, CHINALCO MINING

"Our understanding is that Peru offers greater potential within Latin America," he said. "Peru has a strategy to catch up with Chile in metals and mining development, so it provides an overseas-investor-friendly investment environment."

Chile is the world's largest producer and resource holder of copper, which is used widely in the power distribution and construction sectors. China imports about 70 per cent of its raw copper ore needs.

Hong Kong-listed Chinalco Mining's US$3.5 billion Toromocho project, about 140 kilometres from Lima, started trial commercial production in December.

But power shortages, caused by a three-month delay in power connection, meant the company had to first process ore with lower copper content than originally planned. This caused the firm to slash in December its output target for this year to between 120,000 and 150,000 tonnes from 190,500 tonnes.

In March, heavy rainfall resulted in muddy water being discharged from the project's quarry mine to a lake. Peru's Ministry of Environment ordered on March 28 the project to stop operation for alleged non-compliance with environmental laws relating to water discharge. After building a water tank to collect rainfall and a draining system, the ministry allowed production to resume on April 11.

Peng said the suspension would not hinder the project from achieving the revised output target since it was not expected to reach full capacity utilisation until the third quarter.

He said his firm was "surprised" by the suspension order, but he would not comment when asked if he thought foreign and domestic firms had been treated differently on similar issues.

In July last year, Chinalco Mining decided to use US$120 million from its initial public offering proceeds, originally for acquisitions, towards phase two expansion of Toromocho.

The US$1.32 billion expansion will be 80 per cent-financed by bank loans and will raise annual output capacity by 45 per cent to 310,000 tonnes when completed in the first half of 2016."

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Saturday, April 26, 2014

China Making Discreet Gold Imports Through Beijing GLD GDX MUX TNR.v

China is using its weapon of choice in the ongoing Currency Wars - Gold. The more price suppressed by the Western Central Banks - the better it is for China. Steady flow from the West to the East is the name of the game in the Gold markets these days. It is the military exercise with the state-level planning involved. According to Jim Rickards, China uses multiple covert channels to accumulate Gold during this phase of the Currency Wars.

Gold: Russian Presidential Adviser Proposed Plan For Currency War GLD GDX MUX TNR.v

"This Cold War is only getting hotter day by day. We do hope that some wisdom will prevent the full escalation of the war, but the Financial Damage will be mutually assured. From ZeroHedge:

"According to Vedomosti as Bloomberg reported, Glazyev proposed:

Russia should withdraw all assets, accounts in dollars, euros from NATO countries to neutral ones

Russia should start selling NATO member sovereign bonds before Russia’s foreign-currency accounts are frozen

Central bank should reduce dollar assets, sell sovereign bonds of countries that support sanctions

Russia should limit commercial banks’ FX assets to prevent speculation on ruble, capital outflows

Central bank should increase money supply so that state cos., banks may refinance foreign loans

Russia should use national currencies in trade with customs Union members, other non-dollar, non-euro partners

In other words, a full-blown scorched earth campaign by Russia."

TNR Gold Shotgun Gold Presentation TNR.v GDX GLD MUX

"TNR Gold has published its new Shotgun Gold presentation. After the news about Barrick Gold and Newmont Mining talks about the merger we are looking for the major bottom in the mining cycle. The best projects will find its way now to the investors' radar screens."

Gold M&A: Barrick Gold - Newmont Mining Merger Talks ABX MUX TNR.v NEM

"As you remember, we were looking for M&A activity in Gold and Commodities to pick up in order to confirm the major Bottom built up last year. Now we have the very important confirmation about that bottom from the industry insiders. Announced deals with Las Bambas - being bought by Chinese companies and these talks about the merger between Barrick Gold and Newmont Mining signify the very important point in the cycle. It is cheaper "to dig" for Gold and Copper on the Exchange than in the ground. Depressed market valuations of the resources represented by the discounted share prices of miners provide the best entry points in the decades for the commodity markets. It is not only our talk any more - it is the flash news from the top boardrooms in the mining business. It is the money talk by the Insiders. "Don't discount this merger talks in the future!"

TNR Gold Shotgun Gold Presentation, Alaska - April 2014 from Kirill Klip

MineWeb:

China making discreet gold imports through Beijing - sources

Author: A. Ananthalakshmi (Reuters)
Posted: Monday , 21 Apr 2014

SINGAPORE (REUTERS) - >

China has begun allowing gold imports through its capital Beijing, sources familiar with the matter said, in a move that would help keep purchases by the world's top bullion buyer discreet at a time when it might be boosting official reserves.
The opening of a third import point after Shenzhen and Shanghai could also threaten Hong Kong's pole position in China's gold trade, as the mainland can get more of the metal it wants directly rather than through a route that discloses how much it is buying.
China does not release any trade data on gold. The only way bullion markets can get a sense of Chinese purchases is from the monthly release of export data by Hong Kong, which last year supplied $53 billion worth of gold to the mainland.
"We have already started shipping material in directly to Beijing," said an industry source, who did not want to be named because he was not authorised to speak to the media. The quantities brought in so far are small, as imports via Beijing have only been allowed since the first quarter of this year, sources said.
The People's Bank of China (PBOC) is believed to be adding to its gold reserves, according to the World Gold Council (WGC), as it looks to diversify from U.S. Treasuries. The central bank rarely reveals the numbers.
Gold's 28 percent plunge last year and China's record bullion imports in 2013 sparked speculation that the PBOC has added significant amounts of gold to its reserves, and could likely make an announcement this year.
Central banks tend to be very secretive about their gold purchases and sales because prices are extremely sensitive to their trades. Rumours last year of Cyprus selling its gold reserves to prop up finances sent the metal down more than 10 percent over two days - its biggest such decline in 30 years.
Gold has traditionally been imported from Hong Kong into Shenzhen, where nearly 70 percent of the Chinese gold jewellery business is located. Shanghai was opened up as a second port last year.
Only banks are allowed to import gold into China. Industrial and Commercial Bank of China Ltd, Agricultural Bank of China Ltd, ANZ and HSBC are among the 12 banks that can import gold.

'TOO TRANSPARENT'

China imported nearly 1,160 tonnes of gold from Hong Kong last year, more than twice that of 2012 as the drop in prices caused a spurt in demand.
An analysis of trade figures from data provider Global Trade Information Services showed that China imported at least another 194 tonnes last year from centres other than Hong Kong, likely into Shanghai, showing that direct imports have ramped up.
One of the reasons why China could be encouraging more direct imports was because it wanted to avoid taking the Hong Kong-to-Shenzhen route that makes its gold purchases public, while China wants to keep the trade a secret, sources said.
"There is a view that why should people know how much China is buying," said one of the sources at a bullion banking operation in China. "With the Hong Kong route, there is a lot of transparency and people can easily monitor what is going in and out."
Another source said the move to open up Beijing "is partly driven by the fact that Hong Kong is perhaps a little too transparent", but it is also to accommodate upcoming free-trade zones and non-jewellery demand.
The Shanghai Gold Exchange, the platform for all physical trades in China and in whose vaults importing banks store gold across the country, was not immediately available to comment.

CAUTION ON RESERVES ANNOUNCEMENT

Besides the 1,160 tonnes of gold imported from Hong Kong last year, China had about 428 tonnes of local production. The WGC has said Chinese demand in 2013 was 1,066 tonnes, leaving industry guessing about the "surplus" of around 522 tonnes, not including the amount of direct imports.
The central bank last disclosed its gold reserves in 2009, when it announced that its bullion holdings had risen to 1,054 tonnes from 600 tonnes in 2003.
Philip Klapwijk, managing director of Hong Kong-based consultancy Precious Metals Insights, has said China's official-sector purchases could have totaled 300 tonnes in the first half of 2013, and the pace likely continued in the latter half.
"The major increase in gold supply to the Chinese market in 2012 and especially 2013 could be partly related to large-scale official purchases," according to a Klapwijk-led survey for the WGC that was released last week.
The report said while a part of the surplus was being used for commodity financing deals, some of it could be for the PBOC as well.
Rumours on PBOC's gold reserves range from 3,000 tonnes to 5,000 tonnes. The United States is the biggest holder of gold reserves with over 8,000 tonnes.
Even a 1,000 tonne increase from last announced levels could prompt a jump in gold prices, which would make the PBOC very cautious about the timing of any announcement, said two China gold market analysts, who didn't want to be named due to the sensitivity of the issue. (Editing by Muralikumar Anantharaman)"

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