For Barrick Gold, there was a silver lining to the Chilean Supreme Court’s decision on Wednesday to uphold the suspension of the construction of its giant Pascua Lama mine.
The Toronto-based company will at least not be required to apply for a new environmental permit for the $8.5bn project, which sits high up in the Andes on the border with Argentina. Continue reading »
It’s been a rocky start to the week for South Africa, with the hunt for an urgent solution to its mining chaos going nowhere. On Tuesday Jacob Zuma, the president, once again called for a peaceful resolution to the troubles rocking the sector after Monday’s fatal shooting of a union leader. He had made similar calls last week, as the sector’s troubles contributed to GDP growth at a fresh low of 0.9 per cent in the first quarter and the rand tumbled dramatically to record lows – its fall exacerbated, critics said, by Zuma’s failure to act. Continue reading »
By Jude Webber and Naomi Mapstone
Another mining project in a minerals-rich Andean country has been hit by another environmental/indigenous complaint. Digging up precious metals as a way of achieving economic prosperity, especially in areas of outstanding natural beauty, has never been so fraught.
The latest casualty is the Chilean side of Barrick Gold’s Pascua-Lama project, which promises to be one of the world’s biggest gold mines. Continue reading »
Zambia announced on Wednesday that it had revoked the licences for a controversial Chinese-owned coal mine in the south of the country in response to violations of safety and environmental laws and a failure to pay mineral royalties.
Mining minister Yamfwa Mukanga said the government had taken over the mines and would operate them “until a suitable investor is found”. The decision highlights the sometimes troubled relationship between China and Zambia. Continue reading »
After comings and goings, Bolivia’s leftist government with an indigenous twist finally ruled out paying compensation to Canada’s South American Silver, two months after their mining licence was revoked.
“The nation has no financial obligation to South American Silver,” mining minister Mario Virreira told reporters, adding there was “never any document establishing that the Bolivian government had a contractual relationship” with the Vancouver-based company. Continue reading »
Next time a president of a resource-rich country thinks nationalisation of mining assets is a way of solving internal conflicts, s/he would do well to take a look at Bolivia, where salaried and independent miners have been violently fighting for the control of a recently nationalised mine. Continue reading »
Labour unrest in South Africa has hit gold and mining stocks, but the wider South African market has held up well. Jeff Gable, head of African research at Barclays, explains why to emerging markets editor, Stefan Wagstyl.
By Thero Setiloane of Business Leadership South Africa
It is probably too soon to say whether the very fabric of our labour relations framework is being torn apart in South Africa. I don’t think it’s too soon to say that it is being challenged in a deep and fundamental way. All mining companies will be affected by this and will need to approach this change in an open and constructive way.
One of the biggest challenges to that framework has been the initial R12,500 basic monthly wage demand made by the Lonmin workers. That demand was until recently one of the enduring features of the current unrest but its potential impact on the mining industry and what it tells us about labour relations in South Africa hasn’t really been understood. Continue reading »
Mining companies are queuing up for east Africa’s natural resources boom, but one key player might now be heading for the exit.
On Thursday Barrick Gold, the world’s biggest gold producer, confirmed it is considering selling its 74 per cent stake in its African operation, African Barrick. As the FT reports, potential buyers in the frame are China National Gold and the Zijin Mining Group – both state owned. Continue reading »
Even during thunderstorms and floods, the Incas believed the ancient sun god, or Inti, was always shining. In today’s Peru bloody and protracted protests have stopped mining projects from going ahead – such as Newmont Mining’s $5bn Conga project.
They have also forced the country’s President, Ollanta Humala, to make cabinet changes. But the investment climate in Latin America’s fastest-growing economy seems to be, somehow, shining. Continue reading »
The death of a Chinese mine supervisor during a protest over wages at the Chinese-owned Collum coal mine in Zambia’s Southern Province has brought the uneasy African-Chinese working relationship into the spotlight again.
This is not the first time the Collum mine has been the site of controversy, with a history of complaints and even gunfire. The Zambian government’s response will now be watched closely. Continue reading »
With the deaths of up to four anti-mining protesters in Peru’s southern Andes, president Ollanta Humala finds himself knee-deep in the same quagmire that bogged down several of his predecessors.
Social conflict remains the key investment risk for the extractive sector in Peru, because Peru remains a divided country. Continue reading »
Newmont’s decision to cut 6,000 jobs at its stalled $4.8bn Conga gold and copper mine has given the project’s home base of Cajamarca a taste of what it stands to lose if the company walks away.
The mine, Peru’s biggest single investment, has been on hold since protesters blockaded Cajamarca in November over concerns about water supply. Continue reading »