Jacob Lorinc’s Post

NEW: China's Zijin Mining Group says it won't be deterred by the Canadian government’s measures to limit foreign involvement in its mining sector. The Chinese gold and copper producer will “absolutely” continue to seek out investments in Canadian mining companies — especially junior exploration firms, Zijin vice president Shaoyang Shen said in a Tuesday interview at the Denver Gold Group's annual conference. “Canada has some of the best mineral exploration companies in the world,” he said. “As world leaders, I believe it’s in our best interests to work together.” Canadian Prime Minister Justin Trudeau’s government has sought to restrict mining deals involving foreign state-owned entities for nearly two years in efforts widely seen as targeting China’s dominance in the global critical minerals supply chain. A series of rules and restrictions hasn’t stopped junior mining firms based in Canada from seeking out Chinese capital to back expensive and risky projects passed over by Canadian investors. My story in Bloomberg News: https://lnkd.in/gkz7xG9u

New: Lundin Mining Corporation's Jack Lundin says several potential buyers are looking at its European mines as the company looks to sell its oldest assets. “We have a lot of interested parties looking at our European assets,” Lundin said in a Tuesday interview. “Our European assets have over time become non-core for us, so we’re running a process to see if we can get more value from selling.” He said he’s aiming to wrap up the process of selling the European operations within a year. The sales process is underway as Lundin presses ahead with projects in South America. The Canadian firm teamed up with BHP in July to buy Filo Corp. as part of its effort to develop major copper mines in Argentina. My story in Bloomberg News: https://lnkd.in/g2AWKMFP

New: Solaris Resources, a Canadian copper miner, is planning to leave Canada after the government thwarted an effort to secure a financing deal with a big Chinese investor. The Vancouver-based company said Monday it will move its headquarters to Ecuador, where it’s seeking to advance a copper project. It's also looking at a "greater transition" out of Canada. Solaris abruptly called off plans to sell a 15% stake to Zijin Mining Group for $130 million in May due to a lengthy regulatory review from Canada’s federal government. Canada has sought to curb foreign state-owned investment in its natural resources sector. The deal would have given Zijin a seat on Solaris’ board of directors. My story in Bloomberg News:

Victoria Gold Corp.’s Eagle Mine, which closed in June after its gold-processing facility collapsed and spilled cyanide into the surrounding rivers, will cost about C$150 million to restore, according to preliminary estimates from Canada's Yukon government. But if history is any guide, the cost may turn out to be much higher. Canadians are still on the hook for long-forgotten mining disasters in the Yukon, which has been a hub for gold miners since the Klondike Gold Rush more than a century ago. The Yukon’s Faro Mine — roughly the size of Albany, New York and once the world’s largest open pit lead-zinc mine — was abandoned in 1998 and is still undergoing an extensive and complicated remediation process today. In 2002, Canada’s government projected the remediation to cost around C$200 million; in 2022, it revised the figure to C$5 billion. Yukon’s government said the cost of the Eagle Mine cleanup will be covered through government loans to accounting firm PwC, which was assigned to manage Victoria Gold after the mining company was placed into receivership in August. It began lending funds for the cleanup last month, advancing C$50 million to PwC to cover the first stages of remediation. Finding buyers for a distressed mining firm’s operations, however, is no guarantee. My story in Bloomberg News: https://lnkd.in/d3Ch4jrt

New: Chile’s Codelco, seeking to retain the title of world’s top copper supplier, made a $500 million offer to buy a stake in a mine run by Teck Resources Limited, people with knowledge of the matter said. The proposal to acquire a 10% stake in the Quebrada Blanca mine from fellow state firm Enami is before the latter’s board, said the people, asking not to be named commenting on a deal that’s yet to be made public. The sale would help reduce Enami’s debt after years of losses from processing mineral for small mines in Chile, while minimizing the amount of fresh capital needed from public funds. Story by James Attwood in Bloomberg News: https://lnkd.in/gma82hZy

First Quantum Minerals is seeking compensation from Panama for a stockpile of semi-processed copper ore stranded at the company’s flagship mine, as part of wider arbitration over the shuttered mine. The material, worth between $225 million and $340 million at current copper prices, has sat idle for months at the giant mine while the Panamanian government determines whether the metal was mined before or after Cobre Panama was ordered to close last year. First Quantum argues that Panama must either let the 120,000 metric tons of material leave the site or compensate the company based on the metal’s market value, according to people familiar with the matter. The claim is part of First Quantum’s two ongoing arbitration cases against Panama over shutting the $10 billion mine, said the people, who asked not to be named discussing confidential matters. My story with Valentine Hilaire in Bloomberg News: https://lnkd.in/gCaqXDZP

New: Data from Panama's mining chamber shows that illegal mining has surged in the Central American country since the closure of First Quantum Minerals' giant copper mine nearly a year ago. More than 250 instances of illegal mining have been identified in the rainforest surrounding Cobre Panama this year, according to Zorel Morales, head of the nation’s mining chamber. That’s a 317% increase from 60 instances in 2023. The illegal miners, Morales said, are mostly searching for gold. The massive mine has sat idle since November after Panama’s Supreme Court ruled that its operating contract was unconstitutional. The closure sparked mass layoffs, which have left the mine’s surroundings largely unattended while First Quantum waits for negotiations to resume under President Jose Raul Mulino’s new administration. Mulino, however, has said he won’t start talks with the Canadian mining company until the new year, as the government is prioritizing other pressing matters like social security reform and water supply for the Panama Canal. Story in Bloomberg News with Valentine Hilaire: https://lnkd.in/gfp9jK8s