Category Archives: diamonds

Washington Cos. makes unsolicited, $1.1-billion bid for Dominion Diamond

Washington Cos. makes unsolicited, $1.1-billion bid for Dominion Diamond

SCOTT DEVEAU

Bloomberg News

Published Sunday, Mar. 19, 2017 6:44PM EDT

Last updated Monday, Mar. 20, 2017 4:51AM EDT

 

 

The Washington Cos. made a $1.1-billion unsolicited offer for Canada’s Dominion Diamond Corp., leading to weeks of talks that have hit an impasse.

Closely held Washington Cos., run by Dennis Washington, made the proposal to acquire Toronto-based Dominion Diamond for $13.50 a share on Feb. 21. Dominion’s board has stalled on the offer, Washington Cos. said in a statement Sunday. The bid carried a 36 per cent premium to Dominion’s closing price on Friday.

Washington Cos., which has businesses in mining, marine and rail transportation, heavy equipment distribution, said it has a long track record of growing businesses throughout North America, with expertise in the mining industry and the Canadian market. The company said Dominion’s board has refused to let it perform due diligence, which might lead to an increased offer.

“We are disappointed that Dominion’s board has thus far prevented Washington from moving ahead with its proposal under which shareholders would receive a substantial premium and immediate liquidity, but we remain fully committed to completing this transaction,” said Lawrence Simkins, Washington Cos.’ president, in the statement.

A representative for Dominion Diamond wasn’t immediately available for comment.

Washington Cos. said it was particularly interested in developing Dominion Diamond’s Ekati Diamond Mine northeast of Yellowknife.

BDT & Co. is providing financial advice to Washington Cos. while Skadden, Arps, Slate Meagher & Flom LLP is the legal adviser in the U.S. Blake. Cassels & Graydon LLP is providing legal advice in Canada.

Dominion Diamond has been the topic of takeover talk after the company hired Rothschild & Co. to explore a sale in 2015. That process failed to find a buyer. The company had been targeted at the time by a group of shareholders, led by Toronto-based hedge fund K2 & Associates Investment Management, who criticized the company’s management and business strategy.

In January, Dominion Diamond chief executive officer Brendan Bell said he planned to step down at the end of June, citing personal reasons after the company decided to move its corporate offices to Calgary.

 

Smaller mining companies seek IPOs but deals remain modest

Thu Mar 16, 2017 | 1:44pm EDT

REUTERS

By Zandi Shabalala | LONDON

Smaller mining companies seek IPOs but deals remain modest

deep south mine

FIILE PHOTO: Workers are seen underground South Africa’s Gold Fields South Deep mine in Westonaria, 45 kilometres south-west of Johannesburg, South Africa, March 9, 2017. REUTERS/Siphiwe Sibeko/File Photo

Stock market flotations of smaller mining and metals companies are set to pick up this year, although a return to the flood of deals five or six years ago remains unlikely while investors rebuild their bruised confidence in the sector.

A continued rally in metals prices is galvanizing some firms into raising capital on exchanges across the world to fund exploration and plow cash into existing projects, with others also preparing initial public offerings.

But with investors’ memories fresh of a bloodbath in mining stocks in 2015, the firms’ ambitions are modest: they are joining small-capital indexes or listing on junior markets in deals typically worth $10 million or less – far from Glencore’s $10 billion flotation in 2011 when commodities were booming.

“We are at the early stages of a cyclical recovery so you would expect to see the first signs of resurgence in the IPO market,” said Michael Rawlinson, Global co-head of Global Mining and Metals at Barclays.

So far this year, the bulk of IPOs have been in Australia, where nine mining companies have already filed to list their shares on the Australian Stock Exchange. That compares with 10 new issues for the whole of 2016.

Lee Downham, head of EY’s global mining & metals transaction advisory services, said the small-cap indexes in Toronto, London and Australia would see the bulk of initial activity until investors built up the confidence for larger cash calls.

“The sector needs to regain shareholder confidence before the bigger fundraising takes place,” he said.

Investors were stung when mining indexes in London, Australia and Toronto fell between 27 and 50 percent in 2015, with Anglo-American (AAL.L

) losing 75 percent of its value.

However, commodity prices began their revival last year, sending Anglo-American back up nearly 300 percent and making it the best performing blue chip in London, albeit from a low base.

GOLD EXPLORERS DOMINATE

Gold exploration companies, including Huntsman Resources and Raptor Resources, have dominated the Australian crop of IPOs so far as they take advantage of bullion prices rising in 2016 for the first time in three years.

Huntsman Resources is an exploration company with projects in the Democratic Republic of the Congo and Australia, while Raptor Resources explores for gold and copper in Australia.

Also expecting to list in Australia is lithium-focused Marquee Resources, which plans to raise $2.7 million from investors to find and develop exploration projects.

The London Stock Exchange, which hosts three of the world’s largest five mining firms, listed two companies last year – rare earths miner Mkango Resources (MKA.L

) and uranium miner Aura Energy (AURA.L). They followed just one flotation in 2015.

Mkango chief executive Will Dawes said the miner listed on London’s junior AIM market to fund its projects, increase liquidity and broaden its shareholder base while maintaining its Toronto listing.

Rainbow Rare Earths RWBR.L raised $8 million from its listing in London in January to fund its Burundi project.

“Circumstances seem to be more optimistic for junior mining IPOs in the short to medium term than they have been before,” said Martin Eales, chief executive of Rainbow Rare Earths.

Performance of the new listings has been mixed. Shares in Mkango and Rainbow have not added that much value but Aura Energy has surged about 75 percent.

There have been two new mining listings on the Toronto Stock Exchange so far this year, and the bourse said more are expected in the coming months. In 2016, there was a 38 percent increase in cash raisings by mining firms from 2015.

“Assuming that things continue the direction they are going with commodity prices, and there is every indication that there will, we will be seeing a large number of new listings,” said Orlee Wertheim, the head of business development for mining at TSX.

However, industry experts said that while there was a marginal improvement of new listings, investors were still cautious and this could affect how many companies actually make it to market.

“In terms of our pipeline, we are definitely seeing more flow of potential transactions,” said Jeff Keating, director at SP Angel Corporate Finance. “There is more interest in mining companies but I don’t believe that it is going to lead to a flood of IPOs or a return to where we were five or six years ago.”

(Story corrects number of Toronto listings this year in eighteenth paragraph.)

(editing by David Stamp)

 

 

 

Shore Gold thinks it can pare several hundred million dollars from its capital costs

Shore Gold has posted their presentation from PDAC 2017. It is HERE  Story is below.

SGF PDAC 2017 pres cover

From Stockwatch

By Will Purcell

March 9, 2017

 

Ken MacNeill and George Read’s Shore Gold Inc. (SGF) gained one cent to 19 cents on 2.11 million shares. The company, oft accused of being quieter than a field mouse under the eye of a hungry hawk, provided a lengthy update this week. The news covered the work Shore has been doing toward an updated feasibility study of its Star-Orion South project in central Saskatchewan. The study is several months late — at least to investors who recall the company half-heartedly saying that it could be finished late last year — and the latest news suggests a reason why.
Shore’s new news reads very much like its old news — specifically a release that the company rolled out in late September. A few paragraphs received just a light edit and one, containing a lengthy comment from Mr. Read, Shore’s ebullient senior vice-president, was essentially unchanged from the September version. (The only change was a change of tense — ” George Read, states ” became ” George Read, stated.”) That strongly suggests that the company used its September release as the basis for its latest news, although Mr. Read has probably uttered the 70-word comment so many times over the past six months that he can recite it verbatim.

While the regurgitation of old news added new discouragement to the disappointment felt by some shareholders, there are several new snippets worthy of note embedded within the old story. In September, Shore said it had plans to improve the efficiencies of recovering diamonds from material down to eight millimetres in diameter using X-ray transmission (XRT) sorters. The company still plans to do so, but it has now added details about “proposed capability of recovering diamonds down to plus-two millimetres” from the dense media separator concentrate. Those plans will apparently involve some combination of X-ray sorters and grease tables.

As well, Shore and its consultants have now started a detailed review of processing data ahead of a “redesign of the diamond processing flowsheet.” That redesign will include laser sorters and near-infrared waste rock sorters, in addition to the XRT sorters it previously mentioned. Further, Shore’s consultants are reviewing all the tests regarding autogenous milling and comminution (reducing to minute particles) of the kimberlite, and the liberation of diamonds. The company is also completing tests on the hydrodynamic properties of the fine kimberlite waste that would eventually be put in the proposed containment facility for the mammoth mine.

Shore’s revised feasibility study will incorporate the resource estimate that the company revised in 2015, but the main purpose of the new look is to cut the projected capital costs, initially pegged at a prohibitive $2-billion. The company thinks it can pare several hundred million dollars from that estimate, starting the mine at Orion South perhaps, where the richer kimberlite comes closer to the surface, and by more efficient methods of stripping the overburden. There presumably are savings to be had in the processing plant as well, although most of the upgrades would improve the bottom line through greater recovery rates and (hopefully) lower operating costs. In any case, Shore’s weary shareholders are hopeful that the feasibility study will be worth the long and continuing wait

Shore Gold’s Saskatchewan Diamond Presentation from PDAC 2017

Shore Gold has posted their presentation from PDAC 2017. It is HERE

They are driving down costs and increasing revenues via various refinements, but still require final permits and financing.

SGF PDAC 2017 pres cover

 

The mining industry strikes something new at PDAC – optimism

The mining industry strikes something new – optimism

IAN MCGUGAN

The Globe and Mail

Published Sunday, Mar. 05, 2017 4:45PM EST

Last updated Sunday, Mar. 05, 2017 6:28PM EST

 

For the first time in years, the global mining industry’s annual extravaganza has rattled into life surrounded by what looks suspiciously like a bull market.

Many commodity prices, from copper to zinc, have rocketed higher in recent months. Share prices have followed suit, and attendees to this year’s Prospectors & Developers Association of Canada (PDAC) convention in downtown Toronto no longer bear the dazed look of accident survivors.

But, even so, the opening day of the industry’s big bash on Sunday still struck a wary tone. Organizers expect 22,000 people to attend the show, which runs through Wednesday. That is roughly the same number as last year, but it is far below the 30,000 who flooded through the doors at the height of the commodity boom in 2011.

In happier times, the convention prided itself on being the spot for both hard-drinking parties and non-stop deal-making. It has become a more sober, restrained affair in recent years as the industry has struggled through a prolonged bleak patch.

Attendees to this year’s convention welcomed signs that the sector’s long ordeal is finally over, but nobody was declaring victory just yet.

“There’s definitely optimism here, but it’s of a cautious sort,” said Paul Robinson, a director at mining consultants CRU Group in London, and a speaker at the conference.

The surprise pick-up in mineral prices in recent months was based largely on China’s unexpected economic vigour, with an assist from U.S. President Donald Trump’s pledge to spend a trillion dollars on infrastructure, he said. The problem is that neither the Asian giant nor the U.S. President are a sure bet to keep on giving.

China, which consumes about half the global output of many commodities, remains the biggest uncertainty, Mr. Robinson noted.

He said Beijing’s decision in recent weeks to curtail aluminum production as a way to help ease air pollution is a positive signal because it indicates the Chinese government feels confident enough about the underlying economy to take the risk of throttling back on a key employer.

But skeptics warned that governments in Beijing, Washington and elsewhere are hard to predict. “One common factor for most [metals markets] is the outsized near-term importance of highly uncertain politics and policy,” Rory Johnston of Bank of Nova Scotia cautioned in a note.

Until the global trend becomes clearer, many miners are content to bide their time. However, unlike a year or two ago, when all the emphasis seemed to be on buttressing balance sheets, a growing number of companies are at least considering expansion.

“We’re being asked to talk to clients about a lot of the big projects that were put on hold back in 2012 and 2013,” said Dave Lawson, president of the global mining and metals market for Amec Foster Wheeler, an engineering consultant and project manager. “People are dusting off those projects and taking a new look at them … redoing the calculations and rethinking the economics.”

A slower industry has resulted in cheaper labour and more competitive bids on everything from construction to manufacturing, he said. Thanks to the improving cost picture, Mr. Lawson’s group has shaken hands on – although not yet officially booked – more than $300-million (U.S.) of new business in the first two months of the year, he estimated.

While big players mull a return to megaprojects, many smaller companies are paying an unusual amount of attention to minor metals, such as lithium and cobalt, where the case for buying is less about the global economy and more about technological trends.

Both lithium and cobalt are used in batteries and a host of promoters on the convention floor are delighted to assure passersby that demand for the metals can only climb as smartphones and electric vehicles become more popular.

Visitors who aren’t in the mood to invest in a junior lithium play can check out the comparative merits of a host of mining jurisdictions, from Greenland to Mongolia, that are using the show to pitch their unique virtues.

One of the more intriguing presences at this year’s show is Brazil, which is seeking to reinvigorate its mining sector by cutting red tape and opening up many previously restricted areas to foreign investors.

Fernando Coelho Filho, Brazil’s Minister of Mines and Energy, is in Toronto to talk to miners and assure them that he intends to remove many of the bureaucratic obstacles to winning a mining permit.

“Our bureaucracy has been very tough to go through,” he said. “We know that. And we’re going to improve.”

 

 

 

Concerned Shore Gold shareholders renew quest to shake up diamond company’s board

Concerned Shore Gold shareholders renew quest to shake up diamond company’s board

ALEX MACPHERSON, SASKATOON STARPHOENIX

Published on: March 1, 2017 | Last Updated: March 1, 2017 6:00 AM CST

shore-gold

An aerial view of Shore Gold Inc.’s Star-Orion South Project east of Prince Albert. SASKATOON

A group of concerned Shore Gold Inc. shareholders are raising money to fund a legal battle after the Saskatoon-based diamond exploration and development company rejected their latest attempt to shake up its board of directors.

The Shore Gold Shareholders Association Inc. (SGFSA) plans to challenge the company’s refusal to publish and allow shareholders to vote on a proposal that two directors of its choosing be appointed to the board, according to the association’s chairman.

“We need to go to court and have a judge do two things,” David Wright said. “One, interpret the wording and intent of the law, and two, make a judgment whether or not … Shore must in fact publish our shareholder proposal.”

Shore Gold staked its first claim in the Fort à la Corne forest in 1995. It wants to build a diamond mine consisting of two large open pits and a processing plant on the property, known as Star-Orion-South, about 60 kilometres east of Prince Albert.

The SGFSA was formed in 2012 and consists of “progressive” investors representing “well above 10 per cent” of the company’s 294 million shares, who are concerned about its direction and efforts to communicate with its shareholders, according to Wright.

Members of the group came close to blocking the appointment of three Shore Gold directors at a tense meeting last June. Wright said the proxy vote was a shot “aimed at the wheelhouse.” Shore Gold’s chairman deemed it illegal but allowed the results to stand.

“We felt it appropriate that we have some direct say on their board of directors,” Wright said of the SGFSA’s proposals, which were filed this year and subsequently rejected based on differing interpretations of the Canada Business Corporations Act (CBCA).

Shore Gold President and CEO Kenneth MacNeill said Tuesday that the board is “always” looking at representation, and that while he and shareholders wish the company could be more transparent, public firms are bound by laws governing communications.

“I don’t see this as a hard stance,” MacNeill said of the company’s position. “I see this as we are following the (CBCA) rules and regulations that we need to follow … We’ve certainly responded very robustly to this and explained this to them.”

Meanwhile, Shore Gold is updating its “conservative” 2011 feasibility study. MacNeill did not provide a timeline but said it will “significantly” reduce capital costs and make the mine more attractive to potential financiers, joint venture partners and purchasers.

Shore Gold vice president of exploration and development George Read said the updated study will include better geological information, cheaper and more effective processing technologies and more efficient methods for opening the massive pits.

The company is also waiting for the province to finish consultations and issue environmental approval for the project. The province declined in January to say when a decision would be rendered. Shore Gold received approval from the federal government in 2014.

As that work continues, the SGFSA will canvass its members for the money it needs to pursue its case. Wright said the association simply wants to get its proposal in front of every Shore Gold shareholder and allow them to vote on it.

“I’m very hopeful that we will be able to raise the funding to mount that challenge, and I’m also very confident that we will win that challenge when in fact we do mount it,” he said.

 

 

 

Saskatchewan – top place in the world for mining investment attractiveness

Fraser institute

Feb 27 2017

From https://www.fraserinstitute.org/sites/default/files/survey-of-mining-companies-2016.pdf

Full report is HERE

fraser-top-10-world-mining

Executive Summary 2016 Mining Survey

This report presents the results of the Fraser Institute’s 2016 annual survey of mining and exploration companies. The survey is an attempt to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment. The survey was circulated electronically to approximately 2,700 individuals between August 30th and November 18th, 2016. Survey responses have been tallied to rank provinces, states, and countries according to the extent that public policy factors encourage or discourage mining investment.

A total of 350 responses were received for the survey, providing sufficient data to evaluate 104 jurisdictions. By way of comparison, 109 jurisdictions were evaluated in 2015, 122 in 2014, 112 in 2013, and 96 in 2012. The number of jurisdictions that can be included in the study tends to wax and wane as the mining sector grows or shrinks due to commodity prices and sectoral factors.

The Investment Attractiveness Index takes both mineral and policy perception into consideration

An overall Investment Attractiveness Index is constructed by combining the Best Practices Mineral Potential index, which rates regions based on their geologic attractiveness, and the Policy Perception Index, a composite index that measures the effects of government policy on attitudes toward exploration investment. While it is useful to measure the attractiveness of a jurisdiction based on policy factors such as onerous regulations, taxation levels, the quality of infrastructure, and the other policy related questions respondents answered, the Policy Perception Index alone does not recognize the fact that investment decisions are often sizably based on the pure mineral potential of a jurisdiction. Indeed, as discussed below, respondents consistently indicate that only about 40 percent of their investment decision is determined by policy factors.

The top

The top jurisdiction in the world for investment based on the Investment Attractiveness Index is Saskatchewan, which moved up to first from second place in 2015. Manitoba moved up to second place this year after ranking 19th the previous year. Western Australia dropped to third, after Saskatchewan displaced it as the most attractive jurisdiction in the world. Rounding out the top ten are Nevada, Finland, Quebec, Arizona, Sweden, the Republic of Ireland, and Queensland.

The bottom

When considering both policy and mineral potential in the Investment Attractiveness Index, the Argentinian province of Jujuy ranks as the least attractive jurisdiction in the world for investment. This year, Jujuy replaced another Argentinian province—La Rioja—as the least attractive jurisdiction in the world. Also in the bottom 10 (beginning with the worst) are Neuquen, Venezuela, Chubut, Afghanistan, La Rioja, Mendoza, India, Zimbabwe, and Mozambique.

Policy Perception Index: A “report card” to governments on the attractiveness of their mining policies

While geologic and economic considerations are important factors in mineral exploration, a region’s policy climate is also an important investment consideration. The Policy Perception Index (PPI), is a composite index that measures the overall policy attractiveness of the 104 jurisdictions in the survey. The index is composed of survey responses to policy factors that affect investment decisions. Policy factors examined include uncertainty concerning the administration of current regulations, environmental regulations, regulatory duplication, the legal system and taxation regime, uncertainty concerning protected areas and disputed land claims, infrastructure, socioeconomic and community development conditions, trade barriers, political stability, labor regulations, quality of the geological database, security, and labor and skills availability.

The top

For the fourth year in a row, the Republic of Ireland had the highest PPI score of 100. Ireland was followed by Saskatchewan in second, which moved up from 4th in the previous year. Along with Ireland and Saskatchewan, the top 10 ranked jurisdictions are Sweden, Finland, Nevada, Manitoba, Wyoming, New Brunswick, Western Australia, and Northern Ireland, which was included for the first time in the 2016 survey.

The bottom

The 10 least attractive jurisdictions for investment based on the PPI rankings (starting with the worst) are Venezuela, Afghanistan, Zimbabwe, Mongolia, Philippines, Indonesia, Chubut, South Sudan, Mendoza, and Ecuador. Venezuela, Zimbabwe, and Chubut were all in the bottom 10 jurisdictions last year. Two out of the 10 lowest-rated jurisdictions based on policy were Argentinian provinces.

Canadian Mining Report for 2016 Released

A return to optimism in mining puts Canada at a crossroads

February 16, 2017

The Canadian Mining Association

http://mining.ca/news-events/press-releases/return-optimism-mining-puts-canada-crossroads

To download a copy of Facts & Figures 2016, go HERE

 

Action needed for Canada to capitalize on potential rebound 

 

Cautious optimism is returning to the global mining industry, which could spur mining companies to make new and significant investments. However, a new report from the Mining Association of Canada (MAC) shows evidence of declining Canadian competitiveness and the prospect for major exploration and mining investments to flow offshore.

“Very simply, Canada is not as attractive as it used to be for mineral investment, and competition for those dollars is growing globally. The recent elimination of federal mining tax incentives, regulatory delays and uncertainty, combined with major infrastructure deficits in northern Canada are all contributing factors that can explain Canada’s declining attractiveness. The time is now to put the right policy pieces in place to better compete for those investments and regain our leadership in mining,” stated Pierre Gratton, President and CEO, MAC.

MAC’s Facts & Figures 2016 report notes several indicators that reveal that Canada is not as competitive as it once was. Foreign direct investment into Canada’s mining sector dropped by more than 50 percent year-over-year in 2015. This is disproportionate to Canadian mining direct investment abroad, which only experienced a 6 percent decline. This imbalance indicates that companies are investing in project development, but may be less interested in doing so in Canada. Canada also no longer attracts the single-largest share of total global mineral exploration spending, having conceded first place to Australia in 2015. Further, no new mining projects entered the federal environmental assessment stage in 2016. If these trends continue, there will be fewer discoveries made and fewer projects that become operational mines in Canada.

“The policy landscape in Canada is full of uncertainty as we await the outcomes of major government decisions. The federal government is reviewing federal environmental legislation, is implementing a pan-Canadian climate change policy, and is working to address long-standing transportation and infrastructure issues. These are all necessary and positive steps, but they must result in boosting Canada’s attractiveness as a place to do business. At risk is a key sector of our economy, and one that leads the world in sustainable mining practices,” stated Gratton.

MAC’s report also revealed the mining industry remained a strong contributor to the Canadian economy despite the downturn in 2015. The industry directly employed more than 370,000 people across Canada and remained the largest private sector employer of Aboriginal people on a proportional basis. An additional 190,000 worked indirectly in mining, with more than 3,700 companies supplying goods and services to the Canadian mining industry. In 2015, the mining industry accounted for $56 billion of Canada’s GDP and minerals and metals accounted for 19% of Canadian goods exports.

Policies that improve Canada’s mining competitiveness:

1)   Improve the federal project review process –  the process should be effective and timely, from pre-environmental assessment (EA) to post-EA permitting, with meaningful consultation with Aboriginal communities.

2)   Invest in critical infrastructure in remote and northern regions – introduce strategic tax measures and ensure the new Canada Infrastructure Bank has a strong economic development focus for northern Canada.

3)   Improve access to trade – ensure trade policies provide access to new and important markets, including China, and improve Canada’s transportation network to more efficiently move mineral and metal products to market.

4)   Address climate change while protecting Canadian businesses – adopt policies that lead to meaningful greenhouse gas emissions while protecting emissions intensive and trade-exposed industries (EITI), like the mining industry. Failing to protect EITI sectors will result in “carbon leakage”—the shifting of production and the associated economic benefits from countries that are taking action on climate to those that are not.

5)   Help expedite industry innovation – The Canada Mining Innovation Council is seeking a $50 million investment for the Towards Zero Waste Mining innovation strategy from the Government of Canada to accelerate the adoption of disruptive technologies that will support the transition to a lower carbon future.

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To download a copy of Facts & Figures 2016, go HERE

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About MAC

The Mining Association of Canada is the national organization for the Canadian mining industry.  Its members account for most of Canada’s production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Please visit www.mining.ca.

 

Canada losing ground as mining investment destination

Canada losing ground as mining investment destination

Cecilia Jamasmie

Feb 16, 2017

Mining.com

ff-1

Source: MAC’s Facts & Figures 2016.

While optimism is slowly but steadily returning to the global mining industry, Canada doesn’t seem to be in a good position to benefit from the increasing number of companies ready to make new and significant investments.

At least that is the conclusion from a report released Thursday by the Mining Association of Canada (MAC), which also warns of the possibility of seeing major exploration and mining investments flow offshore.

“Very simply, Canada is not as attractive as it used to be for mineral investment, and competition for those dollars is growing globally,” MAC President and CEO Pierre Gratton said.

Elimination of federal mining tax incentives, regulatory delays, uncertainty and major infrastructure deficits in northern Canada are all contributing to the country’s declining appeal.

The recent elimination of federal mining tax incentives, regulatory delays and uncertainty, combined with major infrastructure deficits in northern Canada are all contributing factors that can explain Canada’s declining attractiveness, Gratton noted.

The report also highlights the policy areas that Canada needs to pay attention to in order to seize future growth opportunities and re-gain its leadership in mining.

Some of the figures included in the report are quite telling. In 2015, foreign direct investment into Canada’s mining industry dropped by more than 50% from the previous year. In contrast, the country’s resources sector direct investment abroad only experienced a 6% decline.

According the industry body, such imbalance proves that Canada no longer attracts the single-largest share of total global mineral exploration spending, a top place it lost to Australia in 2015. Further, MAC says, no new mining projects entered the federal environmental assessment stage in 2016.

If these trends continue, the association warns, there will be fewer discoveries made and fewer projects to become operational mines in Canada.

Despite the challenges, the sector remains a key contributor to the Canadian economy, employing more than 370,000 people across the country and being the largest private sector employer of Aboriginal people on a proportional basis.

In 2015, the mining industry accounted for $56 billion of Canada’s GDP and minerals and metals accounted for 19% of Canadian goods exports.

 

 

 

Perfect storm for Saskatchewan diamonds evolving?

Perfect storm for Saskatchewan diamonds evolving?

 

Global diamond shortage looming HERE (so the world may need our diamonds)

RIO has $5-billion to spend HERE (a major diamond miner has the cash to develop the project and they were rumored to have been close to a deal for our diamonds a few years ago)

RIO’s CEO wants more diamonds HERE (see above)

Trump threatening conflict mineral imports/disclosure HERE (our diamonds are some of the few which are not conflict related)

 

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