Global resources news

NEWS

METALS SECTOR TO CONTINUE COVID-19 REBOUND INTO 2022: S&P REPORT

Pent-up consumer spending, government stimulus efforts and the accelerating energy transition will continue to drive prices and demand for a range of metals in 2022, according to a recent report by S&P Global Market Intelligence.

The global metals sector will continue its rebound from the effects of the COVID-19 pandemic, with demand growth set to keep prices at elevated levels for the medium term, in the view of S&P’s Metals and Mining Research team.

“While prices may moderate through 2022 as pandemic supply issues ease, building demand — due to factors including the growth of the electric vehicle sector and the energy transition — should set the stage for historically above-

average prices through to 2025,” said the report.

The paper predicts global copper demand from solar and wind energy generation will reach 852,000 tonnes by 2022, while the growing electric vehicle market will account for 1.1 million tonnes next year.

For most other metals, margins are also expected to remain healthy in 2022 following the high prices and relatively steady costs experienced by most producers in 2021. However, S&P sees rising input costs and moderating prices as representing downside risks for margin levels across several commodities.

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WORLD GOLD COUNCIL MEMBERS CONTRIBUTE $38 BILLION TO HOST COUNTRIES

A report published by the World Gold Council has revealed that its member companies produced 34.5 million ounces of gold last year and contributed close to US$38 billion to the GDP of the countries they operate in.

According to the Council, member companies have committed to demonstrable standards of responsible and sustainable business practice and their data has provided a robust sample to quantify the industry’s socio-economic contribution.

In 2020, member companies directly paid $8.7 billion in employee wages and $7.6 billion in tax payments to governments in 38 host countries. Direct payments of $26.2 billion were made by member companies through incountry procurement.

Barrick Gold – one of the Council’s biggest members – underscored its status as a leading contributor to socio-economic development by comparing its performance to industry-wide figures reported by the Council.

97% of Barrick’s employees and contractors were host country nationals, compared to 95% reported cumulatively by member companies. The company also contributed $1.8 billion out of the total $7.6 billion tax payments directed to host governments.

“We partner with our host communities and countries to transform their natural resources into tangible benefits and mutual prosperity,” president and CEO Mark Bristow said.

NEWS

KINROSS GOLD ANNOUNCES $1.42 BILLION DEAL FOR GREAT BEAR RESOURCES

Kinross Gold Corp will acquire Ontario-focused exploration firm Great Bear Resources, after announcing a deal worth US$1.42 billion that will give it access to the coveted Dixie gold project.

The property, which is considered one of the most important Canadian gold discoveries in modern history, consists of 9,140 hectares of contiguous claims extending over 22 km in Northwestern Ontario.

TSXV-listed Great Bear has completed more than 340,000 metres of drilling in 794 drill holes and has identified five high-grade gold discoveries to date.

“The Dixie project represents an exciting opportunity to develop a potentially top-tier deposit into a large, long-life mine complex,” Kinross CEO Paul Rollinson said.

Meanwhile, Great Bear CEO Chris Taylor said: “Dixie’s closest geological analog, the largeHemlo gold mine, was historically operated by three separate companies prior to its consolidation and has produced over 20 million ounces of gold in more than 30 continuous years of operation.”

At about C$29 per share, the Kinross offer represents a 26.5% premium to Great Bear’s close on December 01. The acquisition comes amid speculation of Barrick Gold’s interest in the explorer, after Mark Bristow’s firm struck agreements with two juniors over holdings to the West and North of Dixie.

Mining, oil & gas and renewable energy news from around the world

FORTESCUE TO HELP TRANSFORM NSW COAL CENTRES INTO GREEN HYDROGEN PLANTS

Fortescue Future Industries (FFI) and AGL Energy have agreed to undertake a feasibility study to repurpose infrastructure at two coalfired power stations in New South Wales to generate green hydrogen.

The Liddell and Bayswater power stations currently account for over 40% of carbon dioxide emissions in NSW, according to 2019 National Greenhouse and Energy Reporting data. However, the repurposing of these sites will help the state meet its target of halving its emissions by 2030.

The Hunter Valley Industrial Clean Energy Hub is expected to support thousands of jobs once complete, in addition to creating a new regional domestic and export industry in green hydrogen.

It will also support Australia’s ambitions to become a global green hydrogen superpower. Green hydrogen is a zero-carbon fuel made by electrolysis using renewable energy to split water into hydrogen and oxygen.

“FFI’s goal is to turn regional Australia into the global green energy heartland and create thousands of jobs now and so many more in the future,” said FFI Founder and chair, Dr Andrew Forrest.