Engineering & Mining Journal

APR 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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NEWS-LEADING DEVELOPMENTS 6 E&MJ • APRIL 2018 www.e-mj.com that: The Cadia Hill open pit experiences very low inflows of groundwater and the geology is highly impermeable; and tail- ings would be fully contained within the pit without risk of release to adjacent waterways or environment. It remains too early for guidance to be updated. Finland Tops Fraser's 2017 Mining Survey The Fraser Institute's annual survey of mining companies, published on Febru- ary 22, ranked Finland as the top juris- diction in the world for mining investment in 2017 based on the survey's Investment Attractiveness Index. Finland moved up from fifth place in 2016. Saskatch- ewan, which was first in 2016, dropped to second in 2017. Nevada moved up to third from fourth. The Republic of Ireland ranked fourth, up from ninth, and West- ern Australia dropped from third to fifth. Rounding out the top 10 are Quebec, On- tario, Chile, Arizona and Alaska. The survey assesses how mineral endow- ments and public policy factors such as tax- ation and regulatory uncertainty affect ex- ploration and mining investment. The 2017 survey ranks 91 jurisdictions worldwide, including countries, states and provinces, on their attractiveness to investors based on responses from mining executives. A total of 360 responses were received for the 2017 survey. The companies that participated reported exploration spend- ing of $2.3 billion in 2017, up from $1.9 billion for the same companies in 2016. The overall Investment Attractiveness Index is constructed by combining the survey's Best Practices Mineral Potential Index, which rates regions based on their geologic attractiveness, and its Policy Per- ception Index, a composite index that mea- sures the effects of government policy on attitudes toward exploration investment. The report noted that analysis of re- gional trends continues to indicate a stark difference in investment attractiveness between Australia, Canada and the United States, and the rest of the world. Canada moved slightly ahead of Australia as the most attractive region in the world for in- vestment in 2017, and the United States nearly tied with Australia. Six jurisdictions — Latin America and the Caribbean, Africa, Europe, the United States, Australia and Canada — all saw a decrease in their rel- ative investment attractiveness during the year. Australia experienced a 9% decline in its regional median score from 2016, while Africa experienced an 11% decline. "In general, investment attractive- ness is declining in most of the world's regions," the report stated. This is in contrast to a year earlier, when the report said, "in general, the climate for invest- ment appears to be slightly improving." Policy factors examined by the sur- vey included uncertainty concerning the administration of current regulations, environmental regulations, regulatory du- plication, the legal system and taxation regime, uncertainty concerning protected areas and disputed land claims, infra- structure, socioeconomic and community development conditions, trade barriers, political stability, labor regulations, qual- ity of the geological database, security, and labor and skills availability. The Fraser Institute survey includes numerous quotes from company exec- utives regarding experiences with regu- latory issues in individual jurisdictions. Among these comments: "There is a lack of consistency in the application of regulations in British Co- lumbia. Some regions have one set of expectations, particularly environmental, while others are very different. Every time the BC government tries to 'simplify' its application process, it actually becomes more complicated." – A consulting com- pany consultant. "Saskatchewan has a great permitting process that meets time lines and pro- vides certainty for investors. – An explora- tion company president. "In Chile, administration requirements have been streamlined for permitting pro- cesses, creating certainty for investors." – A consulting company consultant. "In Brazil, the granting of exploration licenses has been suspended in most states. This drastic action is a major de- terrent for investors." – A consulting com- pany manager. Fraser Institute's "Survey of Mining Companies 2017" is available as a free download at www.fraserinstitute.org. Anglo Commits to Ambitious Sustainability Strategy Anglo American launched a Sustainabil- ity Strategy, outlining an innovative ap- proach to the environment, community development, and driving greater trust and transparency across the mining in- dustry, including specific goals to be delivered between now and 2030, the company said. "Our role in today's world is far great- er than simply as a supplier of physical products," said Mark Cutifani, CEO, An- glo American. "If Anglo American is to play its part in creating a sustainable fu- ture for the world and improving the lives of all of us who live here, then we must be prepared to challenge our business and ourselves, by reimagining mining." Anglo American's Sustainability Strat- egy is part of FutureSmart Mining, the company's innovation-led approach to sustainable mining. This is a future in which all mines will be safer, more sus- tainable and efficient, and better harmo- nized with the needs of their host com- munities, the company said. This strategy, which was developed following a consultation process with the employees and external stakeholders and is in alignment with the United Nation's Sustainable Development Goals, includes: • Creating five jobs off-site for every job on-site in host communities; • Working with government to ensure ev- ery school in host communities performs among the top 20% of state schools in the country; • Reducing greenhouse gas emissions by 30%; • Improving energy efficiency by 30%; and • Reducing freshwater abstraction by 50% in water-scarce regions. The goals are deliberately ambitious, Cutifani explained, and they will chal- lenge Anglo to innovate and change, and the company is mobilizing its people and resources to deliver by 2030. This list of top 15 places to conduct mining business was pulled from a recently released report from the Fraser Institute.

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