Tag - Mining

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Monday, May 28 2018

Fracking for copper and gold

BHP, Barrick Gold and mining contractor Hatch are all looking at ways to replace mines with grids of wells that pump metal out of the ground, up-ending the industry's economics.

Engineers in the mining industry say the same could be about to happen in copper and gold, as some of the world's largest mining companies examine ways to replicate fracking, injecting liquid into deposits to extract metal from ore, before pumping it back to surface.

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Thursday, May 17 2018

‘We’re right at peak gold’: All major deposits have been discovered, declares Goldcorp chairman

'Are we not looking for it? Are we bad at finding it? Or have we found it all? My answer is we found it all'

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Tuesday, May 8 2018

Is the Supply of Gold Depleting?

The demand for gold is increasing, yet new discoveries of the precious metal have not kept pace with the demand. Funds for exploration are historically high, $54.3 billion, up 60 percent over the past 18 years.

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Thursday, November 30 2017

Gold production will grow in coming years

A report by BMI Research states that global gold mine output growth will pick up in the next few years, supported by higher gold prices and solid projects in key countries.

“We forecast global gold production to increase from 105moz in 2018 to 125moz by 2026, averaging 2.3% annual growth. While a steady pace of growth, this represents a slight deceleration in growth rate compared with the previous eight-year average of 3.1%,” the firm says.

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Saturday, November 25 2017

Gold CEO Lashes Out Against His Industry

A gold industry obsessed with containing costs and minimizing risks will find itself at the edge of a cliff by 2020 as supply tightens, according to one of the most profitable producers.

Half of the gold coming out of the ground isn’t profitable to mine based on the true extraction costs, he said.

The industry is headed for a dramatic supply shortage from 2020 if gold prices stay between $1,000 and $1,400 an ounce, he said.

Input costs probably will rise as “you’ve got a complete over-inflation of value in just about every asset class and industry in the world, with burgeoning central bank balance sheets.”

The result will be higher gold prices

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Saturday, October 28 2017

The World Is Running out of Gold Mines - Here’s How Investors Can Play It

My good friend Pierre Lassonde, cofounder and chairman of Franco-Nevada, doesn’t know how we’ll replace the massive gold deposits of the past 130 years or so. Speaking with the German financial newspaper Finanz und Wirtschaft this month, Pierre says we’re seeing a significant slowdown in the number of large deposits being discovered. Legendary goldfields such as South Africa’s Witwatersrand Basin, Nevada’s Carlin Trend and Australia’s Super Pit—all nearing the end of their lifecycles—could very well be a thing of the past.

Over the medium and long-term, this could lead to a supply-demand imbalance and ultimately put strong upward pressure on the price of gold.

“It doesn’t really matter what the gold price will do in the next few years,” Pierre says. “Production is coming off, and that means the upward pressure on the gold price could be very intense.”

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Thursday, October 5 2017

Paulson Says Sprott, Others Keen to Join Gold-Investors Group

Last week, billionaire John Paulson said his firm will spearhead the creation of the Shareholder’s Gold Council to give a greater voice to institutional investors on matters including board appointments, pay plans and mergers. The group is meant to rein in what Paulson called years of bad management at many gold-mining companies.

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Wednesday, September 27 2017

Paulson hedge fund in blistering attack on top gold miners

On Tuesday, New York hedge fund Paulson & Co, founded by noted gold bull John Paulson launched a blistering attack on the world’s top gold mining companies over “serial value destruction” in the industry.

Speaking at the Denver Gold Forum, the sector’s most important gathering now in its 28th year, Paulson & Co partner Marcelo Kim called on major gold equity investors to join a coalition – dubbed the Shareholders Gold Council – to stop CEOs, boards and management enriching themselves at the expense of shareholders and prevent companies from embarking on the kind of acquisitions and budget blow-outs that according to Kim have destroyed $85 billion in value just since 2010.

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Monday, September 25 2017

Thoughts on global gold mine supply

Looking ahead, I expect global gold mine supply will gradually decline over the coming years, driven by the recent downward trend in prices, a reduction in exploration spend and a decline in development projects. I do believe, however, that the scale of decline will be gradual. Between the mid-1990s and early 2000s, industry mine supply dropped by approximately 1% annually. It is likely to be similar this time round.

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Monday, August 21 2017

Today's Gold prices are not much above production costs

The chart below shows the global cost curve for gold mining — in terms of all-in costs. That includes operating costs, sustaining capital at mines, and development costs to bring new ounces of production online.

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Thursday, August 10 2017

Top gold scientists solve mining’s growth problem

Here’s something few investors know.

The gold mining industry is massively depleting its reserves, not finding new deposits fast enough, and could be on the cusp of its most profitable turning point ever.

Gold mine supply will peak in 2019 and continue falling through at least 2025, according to BMO Capital Markets and Bloomberg.

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Saturday, May 20 2017

From Yukon to Patagonia, Gold Explorers Stir After Sleep

From Canada’s Yukon to southern Patagonia, outbreaks of gold-rush fever are popping up as bullion markets stage a tentative recovery.

The number of holes drilled at gold deposits has been rising steadily for more than a year, according to S&P Global Market Intelligence. And while early-stage exploration budgets haven’t kept pace with spending at existing mines, prospecting hot spots are starting to pop up in traditional destinations Canada, Australia and Latin America.

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Monday, April 24 2017

Gold Fields South Deep Mine, Digging Two Miles Underground

Gold mining at South Deep, the world's second-biggest deposit, would never be easy. Located an hour's drive west of Johannesburg, the resource holds 63 million ounces that formed in an ancient lake, now crystallized in rock, three kilometers (1.9 miles) underground. Gold Fields Ltd. has spent 29 billion rand ($2.5 billion) on the mine and has repeatedly missed ramp-up targets due to fatal accidents, mistakes and changing mining methods. A complex geological formation, seismic activity as well as the difficulty of operating high-powered diggers in deep tunnels has slowed progress. Now, armed with a new mining plan and costs under control, it says South Deep will operate at full capacity within five years, and will churn out the precious metal for at least the next 70 years.

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Wednesday, April 12 2017

Russian Scientists Find Way to Reduce Gold Production Costs by 40%

Chemists from Russia working with their Chinese colleagues have come up with a new method for producing gold from ore, reducing extraction costs by upwards of 30-40%, and dramatically decreasing the amount of time needed to do so, the press service of Moscow's National University of Science and Technology (MISiS) has reported.

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Thursday, April 6 2017

China's Shandong in advanced talks to buy half of Barrick's Veladero mine

China's Shandong Gold Mining Co Ltd is in advanced talks to buy a 50 percent stake in Barrick Gold Corp's Veladero gold mine in Argentina, people familiar with the process told Reuters even as the Canadian miner grappled with a pipe rupture at the site.

As part of a purchase plan being discussed, Shandong would also acquire 50 percent of Barrick's nearby undeveloped Pascua-Lama gold and silver project, one of the people said.

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Wednesday, March 29 2017

Shandong Gold Says It May Have Found China's Biggest Gold Mine

The Xiling mine in Shandong province told local authorities it had found 382.58 tons of gold reserves and that the volume could reach more than 550 tons once exploration is completed in two years, which would make it China’s largest mine, according to a statement Tuesday that cited the company on sdchina.com, a website supervised by the provincial government. Operating at full capacity, the mine would have a life of 40 years, according to the statement.

Chinese gold companies have been stepping up their search for domestic deposits and eyeing acquisitions as the nation seeks to increase reserves by 3,000 tons to as much as 14,000 tons by 2020, the Ministry of Industry and Information Technology said last month.

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Friday, March 24 2017

Reviving King of Gold Means Getting Mine Workers Off Their Knees

If only it was that easy for the rest of the once dominant South African gold industry. After more than a century as the world’s top producer, the country has slipped to No. 7 over the past decade. Mines are deep, labor intensive and are being developed with mostly drill-and-blast methods little changed since the 1950s, which means costs have soared and output has dropped.

“South Africa is endowed with an unbelievable mineral resource,” said Neal Froneman, the chief executive officer of Sibanye Gold Ltd., the biggest producer of South African gold. “If we don’t have this shift to a new way of thinking about technology, we are going to sterilize resources. The industry will be dead by 2033 if we don’t change.”

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Monday, March 6 2017

World's top 10 gold mining companies – 2016

The price of gold broke a three-year losing streak in 2016, but the focus of the world's top gold mining companies in terms of output continued to be on cost-cutting and divestment (with varying degrees of success) which led to a decline in production for most of the sector's majors.

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Tuesday, February 28 2017

Showdown in Indonesia Brings World’s Biggest Gold Mine to Standstill

The American mining company Freeport-McMoRan has brought the world's biggest gold mine, in the Indonesian province of West Papua, to a standstill. The corporation is butting heads with the Indonesian government over protectionist mining regulations. And now that Freeport has started to dismiss tens of thousands of workers, the local economy is poised to take a huge hit. In Mimika Regency, the West Papua province containing the Grasberg gold mine, 91 percent of the Gross Domestic Product (GDP) is attributed to Freeport.

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Monday, February 27 2017

These Fearsome Robots Will Bring Mining to the Deep Ocean

Now, more than 40 years later, we're ready to start deep-sea mining for real. We're depleting many of our land-based stores of minerals, and remote though it is, the bottom of the ocean is a likelier source of precious minerals than asteroids. It is strewn with deposits rich in gold, copper, manganese, cobalt, and other resources that supply our electronics, green technology, and other vital tools like medical imaging machines.

In 2019, Canadian mining firm Nautilus Minerals will send robots to excavate deposits rich in copper and gold within the jurisdiction of Papua New Guinea. Other nations are hot on their heels. The International Seabed Authority, which regulates deep-sea mining in international waters, has granted contracts to more than 25 countries to explore for minerals.

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