Wildeboer Dellelce LLP’s Post

The Proposed National Gold Corporation Bill 2022 may slow international investment in PNG, unless listed on PNGX. The proposed bill's impact on PNG's ability to attract foreign investment into its public capital markets would likely be negative, contributing to a less robust economic growth trajectory. Maintaining a stable, predictable, and fair investment environment is crucial for attracting domestic and foreign investment into PNG’s capital markets. Investors typically gauge sovereign risk to assess the stability and reliability of their investments in a country. Legislation that potentially destabilizes key economic sectors like mining could lead to a reduction in investment flows, affecting the broader economic health of PNG. The bill's potential to alter established legal and economic frameworks can make PNG a less attractive destination for both existing and potential new foreign investors, thereby impacting the overall economic growth and development of the country. While legislating a gold refinery is not good policy, an alternative would be for any proposed gold refinery to be listed on PNGX. Listing a gold refinery, even if largely owned by the PNG Government, could offer several significant benefits, including improved transparency, governance, and opportunities for local investment. 

The Proposed National Gold Corporation Bill 2022 may slow international investment in PNG, unless listed on PNGX. Significant concerns have been raised by the PNG Chamber of Resources and Energy (CORE), the legal fraternity and Newmont, highlighting potential adverse effects on PNG’s sovereignty, economy, and the mining sector. The perceived increase in sovereign risk due to such legislation could negatively influence the country’s ability to attract and retain foreign investment and PNG's stock market. The negative impact of the proposed bill on attracting foreign investment into PNG's public capital markets, particularly PNGX, could be significant. While legislating a gold refinery is not good policy, an alternative would be for any proposed gold refinery to be listed on PNGX. Listing a gold refinery, even if largely owned by the PNG Government, could offer several significant benefits, including improved transparency, governance, and opportunities for local investment. Being listed also attracts more foreign investment. While foreign investors may initially be cautious about investing due to concerns over governance and repatriation of profits, the transparency and regulatory framework can provide a level of assurance. #PNGX #PNG #PNGBusiness #PapuaNewGuinea #GrowYourWealth #InvestInPNG https://lnkd.in/gC9um-Ha

National security concerns have become the norm in the debate about Chinese investments in critical minerals with Western companies. Canadian companies have to require Ottawa's approval before any major deal. While Ottawa has the right to be concerned and take measures to counter what it perceives as a threat to its national security, it will also have to find solutions to the demands of its private companies. "Junior miners struggle to draw domestic investors for expensive and risky projects that can take years, if not decades, to complete. Chinese firms, which can take a longer, strategic view on raw material investments, have long been an important funding source for the sector." They will either have to find them the financial backing they need to enter these costly and risky markets or let the market decide where they can find these resources.  One thing is certain: Many of these projects will never get off the ground without investments, and no new deposits will be found. They'll have to rely on the current ones, which are heavily China-dominated.

New Critical Mineral Laws: Impact on Foreign Investments 🇨🇦 Recent developments have raised concerns in the investment community, particularly the Government of Canada decision to cancel the SRG graphite deal, now known as Falcon Metal. This action underscores the need for clarity in the new laws governing critical minerals. Minister François-Philippe Champagne’s regulations are designed to protect Canada’s strategic assets. However, the cancellation of deals involving companies with no physical assets or plans in Canada may inadvertently stifle foreign investments. This lack of clarity could deter potential investors from engaging with listed issuers on the stock market, thereby limiting the growth and development of our critical minerals sector. It’s essential for the government to provide clear guidelines and support for foreign investments while ensuring national security. A balanced approach will help attract the necessary capital to develop our critical mineral resources and maintain Canada’s competitive edge. Matthieu Bos article in financial time describes recent move of the company to #uea #InvestingInCanada #CriticalMinerals #ForeignInvestment #MiningSector #RegulatoryClarity #graphite #mining https://lnkd.in/gqN2FJAe

In an interview with Bloomberg News today, Canada's natural resource minister reiterated the government's tougher stance on Chinese investment in the domestic critical minerals business. “We need to be working to solve access to capital issues, but the answer cannot be investment from Chinese state-owned industries,” said Jonathan Wilkinson. Chinese firms have pursued a string of investments in Canadian junior mining companies in recent months, suggesting that tougher federal government rules haven’t dissuaded China from delving deeper into the country’s mining sector. Transactions like Zijin Mining Group’s plans to take a 15% stake in Vancouver-based copper company Solaris Resources Inc., announced in January, are testing Canada’s national security rules. China’s Yintai Resources Co., Ltd., meanwhile, reached an agreement last month with Osino Resources Corp. to buy the Canadian gold explorer for C$368 million. Canada’s crackdown “may not have totally dissuaded the Chinese, but they will all have to go through a national security review,” Wilkinson said. https://lnkd.in/gK74fH6H

$9 BILLION dollar deal... how much is going to impacted First Nations? never mind how much has been made along the way...... Innovation, Science and Economic Development Canada | Innovation, Sciences et Développement économique Canada has made an announcement approving the sale by Teck Resources Limited to Glencore of the ELK Valley coal resource and business. A $9 BILLION transaction. I would LOVE to know what the impacted First Nations are receiving from the sale proceeds from TECK (is it anywhere near 5% of the transaction value?). And on a go forward basis how do the First Nations benefit with Glencore (do the First Nations earn a royalty on sales? do they have a meaningful equity position?)

The Critical Minerals Association Australia welcomes the Government’s Budget announcements this evening, significantly stepping up support for Australia’s critical minerals industry. Since its inception, the CMAA has been calling for increased Government support to grow Australia’s critical minerals sector quickly in order to compete globally, and especially for the domestic mid-stream. Our critical minerals industry will benefit from support for: 💸Production tax incentives: of $7.0 billion in support for Australian critical minerals processing over 11 years. 🗺 Geoscience Mapping:  $566.1 million over 10 years to map the whole of onshore Australia by 2060 to double Australia’s known resource endowment and advance our understanding of Australia’s potential for critical minerals. 🏭 Common user facilities: $10.2 million in 2024–25 for pre-feasibility studies for critical mineral common-user processing facilities in partnership with state and territory governments to enhance Australia’s capacity to process critical minerals, sovereign capability andeconomic resilience. 🌳 Trade Enhancement Initiative: $5.8 million over three years from 2024-25 for a critical minerals trade enhancement initiative, to accelerate trade efforts for Australia’s critical minerals that are produced to high environmental, social and governance (ESG) standards. We would like to thank Madeleine King and her team for taking on board these key issues the CMAA has advocated for. Read more here: https://lnkd.in/dRiSTB6h

A move in the right direction for critical minerals in Australia.

This is a good news story on the commitment to #ESG and securing #CRM supply chains from Trinity Metals Group through financing from U.S. International Development Finance Corporation as compared to the U.S. Department of the Treasury doing deals with Dan Gertler to remove sanctions on him to get 'special' licences to sell three royalty streams back to the Congolese government and would eventually grant him a “general” licence to regain access to the US financial system. The US officials behind the proposal argue that removing Gertler from Congo would create more opportunities for US-friendly companies to access metals such as a copper and cobalt https://lnkd.in/ez5Vcctd. Where today the FT reports the US has intervened in the sale of a Congolese copper mine to a Chinese arms manufacturer in an effort to prevent Beijing from further increasing its control of critical minerals. https://lnkd.in/ertetrVa It appears by any means necessary to secure preferential US access to CRMs in the Great Lakes region and Central Africa.

While the U.S. Dodd-Frank Act and the EU Conflict Minerals Regulation share similar goals, their compliance requirements and due diligence processes differ. Learn more about their differences. https://hubs.la/Q02GS1nR0 #conflictminerals #3tg #supplychain