Teck Resources has withdrawn its federal permitting application for its C$20.6 billion Frontier oilsands mine in Alberta, mere days before a final permitting decision was due.
Vancouver-based Teck, which had spent about $1 billion over the past decade to navigate Canada's onerous permitting process, said it did not arrive at the "difficult decision" lightly and CEO Don Lindsay had some pointed words directed at the federal government about the jurisdiction's investability.
"Global capital markets are changing rapidly and investors and customers are increasingly looking for jurisdictions to have a framework in place that reconciles resource development and climate change, in order to produce the cleanest possible products," he said in an open letter to Environment and Climate Change Canada minister Jonathan Wilkinson.
"This does not yet exist here today and, unfortunately, the growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved. In that context, it is now evident that there is no constructive path forward for the project," Lindsay said.
He suggested the swirling questions about the societal implications of energy development, climate change and Indigenous rights were critically important ones for Canada, its provinces and Indigenous governments "to still work through".
"I want to make clear that we are not merely shying away from controversy. Frontier, however, has surfaced a broader debate over climate change and Canada's role in addressing it. It is our hope that withdrawing from the process will allow Canadians to shift to a larger and more positive discussion about the path forward. Ultimately, that should take place without a looming regulatory deadline," according to Lindsay.
Teck's exposure to Canada's oil sands has weighed heavily on share performance in recent months, in contrast to its booming metallurgical coal business and mainly profitable base metals operations. Just last week, Teck's Toronto-quoted equity fell to a fresh 12-month low after it booked a $910 million impairment charge on its stake in the Fort Hills oil sands operation related to lower market expectations for future Canadian oil prices.
Lindsay had warned of another potential $1.13 billion future write-down should Frontier not receive federal permitting.
New Gold has entered into a strategic partnership with Ontario Teachers' Pension Plan which will see the investor acquire a 46% free cashflow interest in the New Afton mine in British Columbia, Canada for an upfront US$300 million.
Ontario Teachers' has an option to convert its interest into a 46% joint venture interest in four years or have its interest remain as a free cashflow interest at a reduced rate of 42.5%,
New Gold will use the proceeds to improve its financial flexibility and reduce debt.
New Gold has experienced several tough years due to difficulties getting its Rainy River mine development in Ontario up and running. The company recently revealed a new mining plan which reduced the reserve base and mine life of the operation in an attempt to bring its production costs down to a manageable and profitable level.
The deal allow New Gold to retain operating control and reduce its debt with an overriding buyback option which allows it to potentially re-acquire full ownership interest of New Afton in the future.
"This transformational transaction that provides us with up-front cash allowing us to restructure our balance sheet and lower our level of net indebtedness via a true shared risk and upside partnership focused on free cash flow. This transaction provides New Gold with an attractive cost of capital, further strengthens our financial position, allows us to benefit from the full exploration potential elsewhere on the New Afton land package and provides the opportunity to re-acquire 100% of New Afton," said president and CEO Renaud Adams in a statement.
Barrick Gold has outlined plans to reduce coal-fired power usage and investigate solar options at Nevada Gold Mines, its joint venture with Newmont.
Barrick said the joint venture had approved converting its TS coal power plant to a dual-fuel process, allowing it to generate power from natural gas and cut carbon emissions by up to 50%.
NGM is working with state officials on permitting to allow construction to start near year-end, aiming for final commissioning in the second quarter of 2022, Barrick said.
The miner, which owns 61.5% and operates NGM, said the joint venture was also reviewing the potential for a 200MW solar facility with battery storage, with phased construction possibly producing power "as early as 2022".
Meanwhile, Barrick is looking to Asia with a country-wide alliance with explorer Japan Gold over 28 of its 30 projects.
Under the deal, Barrick will sole-fund a two-year initial evaluation phase of each project and a third year on projects which met its criteria.
It could earn up to 51% of any project by sole-funding a prefeasibility study and 75% by completing a bankable feasibility study.
Japan Gold would act as manager although Barrick had the right to become manager of a project "at any time".
Barrick CEO Mark Bristow said Japan Gold had assembled an impressive portfolio of exploration tenements in the country's renowned epithermal gold provinces.
"We look forward to advancing our partnership by combining Barrick's technical and financial resources with Japan Gold's first mover advantage, to deliver new world class gold discoveries," he said.
Yamana Gold has agreed to sell a portfolio of royalty interests and the contingent payment to be received upon declaration of commercial production at the Deep Carbonates project at the Gualcamayo gold mine to Guerrero Ventures for total consideration of $65 million.
The consideration comprises $20 million cash and $45 million worth of shares in a new company called Nomad Royalty Company.
Guerrero will also acquire a portfolio of precious metals royalty, stream and gold loan assets from funds related to Orion Resource Partners for $268 million and $65 million.
Orion will hold 77% of Nomad and Yamana will hold 13%.
Finally, Ecuador's Constitutional Court has declared unconstitutional a second attempt to hold a public referendum on banning mining.
The court ruled the referendum questions Azuay prefect and anti-mining protestor Yaku Perez proposed did not pass muster as happened with his previous attempt to hold a public vote in September 2019.
The questions did not "comply with the parameters of formal and material control foreseen in the Constitution and the Organic Law of Jurisdictional Guarantees", the court said in its ruling.
It said seeking a general ban covered so many types of ecosystem and activity that it did not gives citizens the ability to choose. It also rejected the attempt by Perez to cancel all mining concessions awarded in Azuay province because it would be a retroactive action which would affect the constitutional right to legal stability.
Development of the mining sector is supported by the government of president Lenin Moreno. The Energy and Mining Ministry said in a public statement the government "reaffirms its commitment to promote responsible, regulated and controlled mining in all Ecuadorean territory".
