Glencore reopens Peru copper mine with extra security

SOUTH AMERICA | Antapaccay was closed for 11 days in January

BY CECILIA JAMASMIE

Glencore has resumed operations at its vast Antapaccay copper mine in Peru, which remained shut for 11 days on security concerns following violent attacks by locals.

The mine closed on Jan. 20 after the third attack on the site in a month. The company reopened the operation on Jan. 31 with “increased security” after some of the protests waned, a spokesman for the miner and commodities giant said.

Antapaccay is one of Peru’s largest mines, producing nearly 136,000 tonnes of copper between January and November 2022.

Peru, the world’s No. 2 copper producer, has been gripped this year by rising political and social unrest triggered by the removal and arrest of President Pedro Castillo late last year.

resource of 5.5 million tonnes grading at 4.12 grams gold per tonne for 732,000 oz. gold, and inferred resources of 9.4 million tonnes grading 3.47 grams gold per tonne for 1 million oz.

ATAC’s other properties include the Connaught, Catch and Rosy projects in Yukon and the PIL property in B.C.

A disappointed Victoria president and CEO, John McConnell, suggested on Feb. 13 that Victoria had the experience (and pockets) to move the Rackla projects forward.

“With our demonstrated track record permitting, financing, constructing and operating the Eagle Gold mine in Yukon, we believe that we can add value to ATAC’s portfolio, which would benefit shareholders of both companies,” he said in a statement. “Our offer is more than reasonable given that, although we see opportunities nal article to show how these data could be applied to groundwater exploration, a sorely needed resource in the Sahel.”

Paterson retired from full-time practice in 1995, handing the reins of PGW to long-time associate Jim Misener, but continued in consulting. Like many in the profession, he once said that geophysics was so interesting that he could not contemplate leaving it, even in retirement.

Paterson received wide recognition for his contributions to the geophysical industry. In 1997, he was elected a Fellow of the Royal Society of Canada, citing his work in the geological interpretation of magnetic surveys. In 1999, he was inducted into the Canadian Mining Hall of Fame, where his citation in part reads, “Paterson has been praised the world over for the sound balance he achieved between the practical, applied science of at ATAC’s properties, we are also aware that risks lie ahead, including the uncertainty surrounding the advancement of permits at the Rackla gold property.”

McConnell said Victoria would not increase the offer value.

BMO Capital Markets mining analyst Andrew Mikitchook suggested in a note to clients that ATAC’s assets could provide additional exploration targets and discovery potential, which as a producing company, Victoria would be in a better position to advance.

“We would view the acquisition as positive for VGCX, providing significant regional exploration leverage,” he wrote in a note to clients.

ATAC shares gained 2.5¢ on the news to 10¢, giving it a market cap of $22 million. Victoria’s equity last traded more than 1% lower at $9.35, giving it a market cap of $603.2 million. TNM

The wave of intermittently violent demonstrations has already imperilled 30% of its copper output and could choke off access to almost US$4 billion worth of the orange metal.

Data from Peru’s ombudsman’s office shows that 58 people have been killed and 1,792 injured in protests since Dec. 7, when Congress removed Castillo, the country’s second Indigenous president, and arrested him.

Protesters have demanded either Castillo’s reinstatement or new elections, which are options experts believe are unlikely to come to fruition.

“As civil unrest fuels disruption, we expect shipments from Peru, which also produces significant volumes of zinc, tin and silver, to be impacted over the coming months, and congress shows no sign of calling a general election in the immediate future,” commodities analyst for BMO Capital Markets, Colin Hamilton, wrote earlier this month.

Besides political reasons, the current unrest is Peru is being fuelled by longstanding grievances about high poverty levels and discrimination felt by many in Peru’s Andean and Amazonian regions.

The country’s south is rich in copper but locals say the benefits of mining don’t reach the communities who live close to the many operations. TNM geophysics and his professionalism and integrity. No matter where in the world his assignments took him, he always served as an excellent ambassador for the Canadian mining industry.” ers for conducting a deal. “They’re clearly to the detriment of shareholders because someone has to pay for those control clauses, and it’s the shareholders,” said Adrian Day of Adrian Day Asset Management.

He was also recognized as a notable pioneer by the KEGS Foundation.

In retirement, Paterson and his wife Sally moved to a farm near Clarksburg, Ont., and later had a home in Thornbury on the shores of Lake Huron. They wintered with family in Costa Rica. At the age of 93, Paterson wrote the book Mining Geophysics: A Canadian Story, aided by a number of noted collaborators and contributors, and published by the CIM. The book outlines the developments, events and key innovators and contributors that gave rise to Canada’s emergence as a global leader in geophysics and mining exploration during the 19451975 period. Remarkably, turning his diverse talents to fiction, he subsequently wrote three mystery novels, some set in his beloved Georgian Bay, as well as devoting considerable effort to pursuing possible alternative causes of global warming.

During his career, Paterson was greatly aided by his wife of nearly 70 years, Sally, who predeceased him in 2018. He was a devoted and attentive father to his four children, Catherine, John, Michael and Norman Jr., and a much-loved grandfather and great-grandfather to seven grandchildren and 12 great-grandchildren. In his final years, Paterson became companions with author Dorris Heffron.

Paterson was to be the Guest of Honour at PGW’s 50th anniversary celebration on March 6 during the PDAC Conference. Now it will be an opportunity to celebrate his legacy.

“When a company’s share price goes from $40 to $18 and gets taken over at the low price, and the insiders are rewarded by $12 and $13 million bonus packages for change of control, their incentive is to sell the company at any price,” Day warned.

On the flip side, should management succeed in eliciting a takeover bid at a premium, they get rewarded on a relative basis, just like the company’s other shareholders.

Rule offered a solution to concerned investors — read the proxy documents. “This stuff is all spelled out there,” he said.

M&A only works if the fundamentals are there, Kiernan said. “Two plus two does not always equal four. It can, but I think people must be honest with themselves when doing M&A,” she said.

Kiernan added she has seen cases where M&A deals are pursued by executives solely based on psychology, the ego of a CEO who just wants to be bigger, gain a different listing, or a particular property.

She suggests that should markets head for a recession, it could further deflate equities, “Most of the M&A deals that ended up to be accretive for companies are done in down markets. So, I think there is the potential opportunity for good deals if people can make decisions based on the right fundamentals,” Kiernan said. TNM