Engineering & Mining Journal

AUG 2018

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NEWS-LEADING DEVELOPMENTS AUGUST 2018 • E&MJ 5 2041 in a form acceptable to FCX and In- alum, a shareholders' agreement between FCX and Inalum providing for continuity of FCX's management of PT-FI's opera- tions, and resolution of environmental regulatory matters satisfactory to the In- donesian government, FCX and Inalum. Recently, the Indonesia government extended the special mining permit to PT Freeport Indonesia (PT-FI) until July 31 to operate the Grasberg mine. Newmont Acquires 50% Stake in Galore Creek Newmont Mining announced its plans to acquire a 50% interest in the Galore Creek Partnership (GCP) from NOVAGOLD Resources, and to form a partnership with Teck Resources, who owns the remaining stake. Galore Creek, located in British Co- lumbia, is one of the largest undeveloped copper-gold projects with resources previ- ously reported by Teck of 8 million ounces (oz) of gold and 9 billion lb of copper. The NOVAGOLD agreement encom- passes a staged and contingent invest- ment of $275 million, with an initial payment of $100 million; a payment of $75 million either after the completion of a prefeasibility study or three years from closing; and a payment of $25 million ei- ther after the completion of a prefeasibil- ity study or five years from closing. A final $75 million payment would be contingent on a final decision to develop the project. "Galore Creek holds the potential to support decades of profitable copper and gold production in a favorable mining ju- risdiction, in line with our strategy to cre- ate long-term value for our stakeholders," said Gary Goldberg, president and CEO, Newmont Mining. "Partnering with Teck allows us to bring both organizations' considerable technical, financial and sus- tainability strengths to bear in evaluating and refining development plans for Galore Creek, and to build on the strong relation- ships Teck has established with the Tahl- tan First Nation and British Columbia." Newmont and Teck will define the scope, budget, and timeline for prefeasi- bility studies over the next several months and expect the prefeasibility studies to be completed over three to four years with an annual budget of $10 million to $15 mil- lion (50% basis). GCP will be governed by a management committee comprised of leaders from Newmont and Teck and managed by a GCP study director and Barrick Gold Corp. announced on July 9 it has entered into an enhanced stra- tegic cooperation agreement with Shan- dong Gold Group Co. Ltd., deepening its partnership with one of China's leading mining companies. The agreement builds upon an earlier one signed between the two companies in April 2017, when Shan- dong Gold Mining Co. Ltd. acquired 50% of Barrick's Veladero mine in Argentina. "Over the past year, we have been lay- ing the foundation for a distinctive, en- during and trust-based relationship with Shandong Gold," said Barrick Executive Chairman John L. Thornton. "Over thou- sands of hours and many site visits, we have worked side-by-side to deepen our understanding of each other's values, stra- tegic priorities and operating capabilities." Building on the companies' intent to evaluate joint investment in organic min- ing projects currently owned by Barrick or Shandong Gold, the companies agreed to consider opportunities to work together on acquisition opportunities or potential asset sales, if both parties agree it is in their best interests. "Based on an identical culture and development concept, the joint operation of the Veladero mine in Argentina has obtained good effect," said Chen Yumin, chairman of Shandong Gold. "Shandong Gold and Barrick have maintained recip- rocal visits of high frequency in respect of mining technology, corporate culture, community harmony, sustainable devel- opment and environmental protection, which has promoted cultural integration and management improvement." Shandong Gold is currently completing an independent evaluation of the potential to develop a mining project at Lama in Ar- gentina, including a high-level evaluation of potential synergies between Lama and the nearby Veladero operation. After the study is complete, the two companies may agree to conduct additional studies and technical work to evaluate a number of development options, including the con- struction of an open-pit mine at Lama; the feasibility of using heap-leach processing for low-grade and easy-to-leach gold ore; and the feasibility of adopting low-cyanide or other environmentally friendly leaching reagents. A decision by Shandong Gold to invest in the project would be subject to agreement between all parties. The agreement will also strengthen the collaboration between Barrick and Shan- dong Gold teams. The companies have agreed to choose one of Shandong Gold's mines as a platform for learning and collab- oration. They will share technical expertise and best practices related to mining tech- nology, information technology, information management and digital innovation. Barrick and Shandong Gold have also agreed to establish additional mecha- nisms to foster greater communication and knowledge-sharing between their respec- tive management and technical teams. The parties also agree to provide access to their respective supplier networks, service providers, investors and capital providers. Barrick Strengthens Cooperation Agreement With Shandong Gold Kevin Thomson (left), senior executive vice president of strategic matters at Barrick, shakes hands with Gong Zheng, deputy secretary of the Provincial Party Committee and governor of Shandong Province, moments after signing an enhanced strategic cooperation agreement between Barrick and Shandong Gold.

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