SMR February 2020 Final

2020 FEBRUARY IN REVIEW

109/02

09

REMOTE DIAGNOSTICS & CONNECTIVITY

Transformations in remote diagnostics & connectivity for mines

39

Companies fight over rights to gold claims in lawsuit amid sale of Pogo mine

33

Minnesota Court Rejects Major Permits for projected PolyMet Mine

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Contents AMERICA Sudbury mining equipment manufacturer plans to penetrate the Mexican market 06 Kogi secures fourth iron ore mining lease in Nigeria 14 BBVA sees Peru mining investment increasing in 2020 before dip 15 Rep. Betty McCollum Proposes bill to Ban copper-nickel Mining Near Boundary Waters 16 Earthmoving equipment for open-cast mining 24

MSHA to Focus on Contractor Safety and Compliance in the New Year 35

Transformations in remote diagnostics & connectivity for mines 9

Companies fight over rights to gold claims in lawsuit amid sale of Pogo mine 39

Decarbonization Takes Center Stage in Mining as Renewables-Plus-Storage Become Cost-Competitive 29

Wave of institutional divestment from coal mining, generation evolves in 2019 42

EQUIPMENT ‘Smart Mining’ Operations Begin Next Year 06

Iran exploiting only one percent of its mineral deposits 25

Mines And Geology Division Considering Development Of Manufactured Sand Industry 11

Apple pushes recycling with ‘Daisy’ robot 31

Syama Roaster Fully Operational 12

Global demand for piling equipment & supplies is expected to rise 36

World's first production D11 Dozer hits the dirt 26 Hexagon acquires BMT to strengthens its Smart Mine solutions portfolio 43

Coal mining group Vinacomin urged to ensure steady power supply for economic growth 21

GLOBAL

Core Gold refuses to make recommendation on Titan bid 22

New Innovative Solutions reveals Russian Waste Dumps as a Valuable Source of Gold and Rare Earth Metals 16

MSHA modifying metal nonmetal mining regulations to include electronic detonators 23

Celebration as lead-zinc mining project reaches its full capacity 18

Minnesota Court Rejects Major Permits for projected PolyMet Mine 33

US to Sell Rare Earths to China Under Trade Deal 19

Brazil to Allow Mining of Indigenous Lands by European Diplomats 41

NMDC to mine multibilliondollar diamond deposit in Madhya Pradesh 20

Company to close down inactive New Mexico uranium mine 46 www.skillings.net | 3

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AMERICA

EQUIPMENT

Sudbury mining equipment manufacturer plans to penetrate the Mexican market

‘Smart Mining’ Operations Begin Next Year Smart mining, which makes mining work automated and unmanned, will begin as a test for transportation work next year.

The Third Basic Mining Plan, which includes such details, has been approved by the Ministry of Trade, Industry, and Energy.

The application period is from this year to 2029.

Sudbury mining equipment manufacturer Total Equipment Services (TES) recently declared a distribution agreement that will enable them to penetrate the market in Mexico.

Minero Diesel is going to be the major distributor of the TES's SPARTA line of utility vehicles, which includes scissor lifts, anfo loaders, boom trucks, lubrication trucks, and custom-design support vehicles.

Kevin Whynott, president of TES Inc., said in a press release, "We're committed to both quality products and client Support."

"In the interest of expanding our footprint to Latin America, we wanted to associate with a firm whose aftermarket, sales support, and company-trained technical support were aligned with our vision."

Minero is presently a distributor for equipment manufacturer Komatsu and supplies parts and services to its customers in the same area.

TES stated that it expects the partnership will support its growth into the South American underground mining market.

A

ccording to the plan, the government will increase the supply of mining equipment with Information and Communication Technology (ICT) to increase productivity at mine sites.Also, it will introduce smart mining solutions, which will automate all mining process, on a trial basis. Smart mining is a system that uses ICT technology to locate minerals in distant locations in real-time and monitor and control operation situations and dangers. The strategy will also be considered to actively utilize foreign workers to ease difficulties in the industry, which suffers from labor shortages as a result of poor working conditions.

The system will be applied on a trial basis to loading and transporting work between 2021 and 2023 and will be expanded to drilling and blasting from 2024.Additionally, it will raise safety standards to curb mine disasters and increase safety facilities and infrastructure.

By 2029, the government will install a central monitoring facility and emergency evacuation facilities at the mines and introduce advanced educational equipment such as virtual reality and simulators to improve employees' educational surroundings and quality. It will also encourage the introduction of related facilities and equipment to reduce fine dust in mines and help them to be used as tourism resources once they close.

6 | SKILLINGS MINING REVIEW February 2020

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AMERICA

8 | SKILLINGS MINING REVIEW February 2020

T R A N S F O R M AT I O N S

I N

remote diagnostics & connectivity F O R

M I N E S

Given the unfavorable environments and remote places the mining business operates in, it is not always advisable for employees to be on-site all the time. But thanks to remote diagnostics for mines, they don't have to be. Continuous monitoring of operations information in real-time enhances the safety of both operators and equipment.

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his can be performed from a location even on the other side of the world to the mine. The possibilities for connectivity are increasing at mines thanks to improvements in technology. Solutions are available that make it feasible to obtain diagnostics information on almost every aspect of a mine's operations.

With this, the advantage of Internet of Things (IoT) technologies has only just

begun to be realized, together with solutions proven to improve efficiency and minimize downtime. Mine operators now almost can't afford to be left behind with the most recent technological advancements.

THE BENEFITS OF REMOTE DIAGNOSTICS AT MINES

Jukka Ristimäki, product line director of new technology at Normet stated that the key benefits to mining processes

are transparency to one's operations.

"What is important is to utilize fleets' productivity fully.

So, you can reevaluate your processes and analyze how the workforce grows.

In Normet's case, we typically produce equipment for concrete spraying applications, in addition to explosives charging.

This means operators can follow the consumption of materials and conditions of the operations in general.

"Furthermore, on the asset management side, there are benefits to service and maintenance planning.

Because we are referring to mining equipment, downtime, and service planning, it is crucial to improve productivity for operations. Time lost for unplanned maintenance is lost permanently. So, www.skillings.net | 9

getting remote diagnostics and remote connections into the machine subterranean is very important to minimize any process disruptions."

"Time lost for unplanned maintenance is lost for good. Thus, getting remote diagnostics and remote connections to the machine subterranean is very important to minimize any procedure disruptions."

Data collected from equipment is transferred immediately for further analysis, which may occur either in a cloud platform or on-premises servers. With Normet Smartweb, data is visualized on PCs, tablets, or smartphones. It may then be evaluated and acted upon.

real-time, but it is also available for the comprehensive service history to permit long-term tendencies to be analyzed.

automation is generally accepted to play a significant role in all industries in the years ahead.

"We provide program data from our equipment and then access to this information. With our long process-knowhow, we can also check into deeper data analytics, predictive maintenance, and all of these things that are enabled with equipment connectivity," states Ristimäki.

In the end, it means that machines will do more in operations, and people will do less. Automation will help to take people away from harmful spots increasing safety.

FUTURE AUTOMATION AND CONNECTIVITY

Connectivity is going to increase in the future, with much more equipment comprising IoT capabilities.

Consequently, operators need to ensure they have the most recent technology so as to stay competitive. Successful data analysis solutions will no longer be an option but a necessity. To promote this, Normet Smartweb aids the monitoring of Normet equipment fleets. Additionally,

Message- alerts are generated in real-time, enabling Safety risks to be addressed and avoid breakdowns of significant equipment. A fleet report allows the comparison of machines and their efficiency. Plans could be created for fleets and adjusted accordingly, together with any trends monitored for analysis.

Moreover, data can be accumulated on each program and process using Normet equipment, identifying areas for improvement in efficiency, and where training could be required for them.

"Now we're starting to see more and more mines updating their infrastructure because of the benefits of having not just the data, but all the operations information," provides Ristimäki. "The benefits and advantages are apparent when operating underground." Signals can be analyzed for every machine to determine material usage and when maintenance is necessary. Not only is data available in 10 | SKILLINGS MINING REVIEW February 2020

Automation will enable long-term reductions in day-to-day operational costs and allow for effective production in environments that could be inaccessible for humans, with automatic vehicles playing a major role.

"We are going to see a lot more automation and practically all mines connected in the future," suggests Ristimäki. "Potentially, we will also have access to more than one mine, with the client able to look at all the mines around the globe in realtime. It provides unlimited opportunities."

EQUIPMENT

Mines And Geology Division Considering Development Of Manufactured Sand Industry The Mines and Geology Division in the Ministry of Mining and Transport has embarked on a project for the manufactured-sand industry's development. Speaking in an interview with JIS News, Deputy Commissioner of Mines, Stacey Plummer, stated that the purpose of the project is to provide a substitute for river sand, due to the challenges they face in sourcing the natural material.

T

here is not a lot of material in the rivers due to the drought and other factors; therefore, we have to find another source of construction material," she noted.

"Exploration has been done, and we're working on getting more investments for manufactured sand as a replacement for what we are not able to naturally produce," she explained. Also, she noted that some companies have already started work in this region, with limestone and volcanic sources used to produce fine aggregate.

"In some instances, the operators would have to buy new equipment, so it's the financing of this new venture that's required."

geological research and development portfolio of the Ministry and also administers the quarrying and mining legislation of Jamaica.

However, accessing funds for the industry has been challenging, "but there are some players that are maximizing what they are doing," she explained. The Mines and Geology Division represents the

It monitors all prospecting, mining, exploration, and quarrying operations. Also, it investigates, appraises, and communicates the information on all aspects of the geology of the island.

Thus far, there is Jamaica Aggregates, which is doing some crushing [of volcanic rocks]. They also buy from other suppliers and crush the material to generate sand," she told JIS News. Also, Hodges Minerals out of St. Elizabeth and Lydford Mining Company in St. Ann are crushing Limestone to sand-sized particles in their operations.

She further explained that the process of crushing volcanic rocks requires specialized equipment since the material isn't as soft as Limestone. As regards to Limestone, she noted that the mineral comes in different consistencies, which means that the type of equipment used for crushing varies. www.skillings.net | 11

EQUIPMENT

Syama Roaster

Fully Operational The Syama roaster repair required a complete replating over the crack on the most critical roaster body by welding and cutting fresh 10mm plate steel. An extra crack at the principal cyclone and two small cracks on the primary roaster body were additionally replated as a part of the repair program along with a range of refurbishments and maintenance to the sulfide circuit structure.

C

ontrolled reheating of the roaster to dry and cure newly installed refractory lining and also to bring the unit up to average operating temperature started on December 11. First ore was introduced to the grinding mills on December 13, and a stock of concentrate was accumulated while the roaster was gradually reheated to

starting by December 11. In accordance with Resolute Mining, The roaster and all the characteristics of this Syama sulfide circuit are all working as expected.

The improvements made to the sulfide processing circuit are aimed at ensuring target recoveries and throughput are achieved in 2020 and beyond.

working temperature. On December 19, the concentrate was introduced into the roaster.

Underground mining at Syama continued without interruption during the roaster repair program. Resolute's fully autonomous haulage fleet is now commissioned and functional.

A new secondary cone crusher was commissioned on December 14 in addition to the installation of the roaster operations.

Extensive refurbishments to the sulfide grinding, flotation, and calcine regrind circuits have also been commissioned

Over 400,000t of high-quality underground ore is now available on the run-of-mine pad. According to the firm, the available stockpile of underground ore helps to ensure that sulfide processing processes will be unconstrained by

12 | SKILLINGS MINING REVIEW February 2020

currently have available will allow us to concentrate on cost efficiencies together with our underground mine systems rather than focusing on maximizing mined and hauled tonnages.

During 2020, we intend to explore opportunities to expand both the underground mine production capability and also the processing capacity of the sulfide circuit, beyond the current nameplate of 2.4Mt/y.

"In the December 2019 quarter, the crack to the roaster and the required unscheduled sulfide circuit downtime has caused the material loss in production from the Syama sulfide circuit. But, we've worked hard to cancel this lost production from other production sources and finish the repairs as quickly as possible.

As a result, the material loss in sulfide production is likely to have only a minor impact on total group creation and targeted FY19 manufacturing target at 400,000oz of gold. The lost production in 2019 is more than offset by the increased production we expect to gain in 2020 by the deferral of another important roaster shutdown to early 2021."

ore availability during 2020 and provides increased confidence in achieving targeted throughput. The extensive roaster repair program, along with the contemporaneous refurbishments and maintenance completed to the total Syama sulfide circuit, has enabled Resolute to reschedule the next planned roaster shutdown. The next major biennial roaster maintenance shutdown was formerly scheduled for May 2020 but has now been deferred until January 2021.

Underground mining at Syama continued without interruption during the roaster repair program. Resolute's fully autonomous haulage fleet is now commissioned and functional.

Managing director and CEO of Resolute Mining, John Welborn, stated he was pleased that the Syama roaster was returned to full performance. He explained: "The roaster repairs and related unscheduled sulfide circuit maintenance was an intricate project that has been completed safely and successfully. I congratulate our project, technical, and working teams in Syama for their achievement in this herculean task and for the outstanding response in delivering a solution to our needs.

"The Syama sulfide circuit is now completely operational and ready to deliver stable recoveries from consistent ore feed from the Syama underground mine. The substantial ore stockpiles we www.skillings.net | 13

AMERICA

Kogi secures fourth iron ore mining lease in Nigeria A fourth African iron Ore mining lease has been granted to Australia's Kogi Iron as the company progresses towards a projected Feasibility Study on a fully incorporated cast steel billet project in Nigeria. The Perth-based resources developer said they were happy to announce approval from the Mining Cadastre Office, Federal Republic of Nigeria, for Mining Lease No. 29796, to a 100%-owned subsidiary, KCM Mining.

T

he most recent approval provides Kogi Iron, a contiguous total of 145 square kilometers of four mining leases and one exploration lease at its Agbaja Plateau cast steel project in Kogi State, southern Nigeria, and close to substantial national and export infrastructure.

The project will mine leased local iron ore deposits as a Feedstock for its cast steel plant to supply both the steel manufacturing and product fabricators in both Nigeria and abroad. "The company has achieved another milestone towards becoming the first integrated steel manufacturer in Nigeria as we proceed forward with this 'Project of National Significance.'

I'm delighted with the effectiveness of government by our local team and Government Departments." "The company has achieved another milestone towards becoming the first integrated steel producer in Nigeria as we move forward with this 'Project of National Significance.' I am particularly pleased with the effectiveness of administration by our local team and Government Departments."

Since 2016, Kogi Iron has been advancing the project, with access to company leased iron ore deposits and nearby coal and limestone sources. Laboratory-scale evaluations about the Agbaja iron ore revealed that it might be converted to a steel feedstock acceptable for electric arc furnaces. A successful Pilot Plant Test program completed in September 2018 on a large bulk sample supported the feasibility of producing a marketable cast steel product, together with the development of a preliminary flowsheet for the processing of Agbaja iron ore into cast steel acceptable for billet making.

14 | SKILLINGS MINING REVIEW February 2020

pipeline of projected investment is represented by projects that confront social challenges to construction begins. The company wrote that low costs continue to favor mining investment in Peru where the average cash cost to produce a pound of copper is under 90c compared to roughly $1.40 in Chile and the USA. BBVA noted that societal conflict represented the highest risk to mining investment, especially in the south of the country where most development jobs were situated.

Conflicts were principally associated with concerns about environmental contamination rather than honoring agreements.

BBVA sees Peru mining investment increasing in 2020 before dip Mining investment is predicted to continue rising to US$6.5 billion compared with $6 billion in 2019, which has been mainly on copper development projects, principally the $5.3B Quellaveco, $1.3B Toromocho expansion along with the $1.6B Mina Justa. Investment will begin to tail off in 2021 as Quellaveco's construction nears its end following which it is projected to fall below $5B annually.

B

BVA said it anticipated production of Peru's principal metals to rally in 2020 with a forecast of 3% growth in copper to 2.3 million tonnes as the Toqupala expansion reaches maximum capacity, 6% increase in zinc to 1.3Mt and 29% boost in iron to 12.8Mt through the expansion of Shougang Iron and Steel's

Marcona operation. It said 2019 copper production fell 0.3% to 2.2 million tonnes, zinc output dropped 5 percent to 1.2Mt and gold production dropped 8% to 129t.

Going forward, BBVA Estimates Peru has some $12.5B in mining projects being prepared of which 72% are for copper beyond 2021. However, some $1.7B of this

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GLOBAL

New Innovative Solutions reveals Russian Waste Dumps as a Valuable Source of Gold and Rare Earth Metals

T

he economic potential of tailing dumps in Russia is enormous. Some experts claim there could be up to five million tons of gold buried inside those dumps.

The world's brightest scientists are focusing on finding solutions that may improve the profitability of tailing dumps development.

focused on increasing the efficiency of precious metals and strategic mineral extraction out of technogenic deposits.

TATIANA ALEXANDROVA, Head of the

Working in this direction has become one of the priorities to the International Competence Centre under the auspices of UNESCO for Mining-Engineering Education. The Competence Centre based in St. Petersburg is concerned, for instance, in research

Department of Mineral Processing at St. Petersburg Mining University, a professional at the UNESCO Centre explained that

AMERICA

Rep. Betty McCollum Proposes bill to Permanently Ban copper-nickel Mining Near Boundary Waters MINNEAPOLIS (AP) — Copper-nickel mining would be forever banned upstream in the Boundary Waters Canoe Area Wilderness in northeastern Minnesota according to a bill U.S. Rep. Betty McCollum introduced on Wednesday.

T

he Minnesota Democrat stated at a news conference in Washington that the bill would protect more than 234,000 acres within the Superior National Forest and Rainy River watershed that lies beyond the Boundary Waters from copper-nickel mining projects. The land includes the proposed site of the Twin Metals mine south of Ely's.

"There are some places in our country that are so unique that they require protection so that future generations can experience them. The 1.1 million acres that are the federally designated Boundary Waters Canoe Area Wilderness is pre-

cisely that kind of place," McCollum stated at the live-streamed news conference.

The Obama administration withdraws the 234,000 acres of federal land from mining for about 20 years, but the Trump administration reversed that decision this past year.

While the Obama administration quoted the risk of acid mine drainage to the wilderness, Twin Metals said as it presented its mine plan last month that its design would avoid the issue by preventing the exposure of sulfide-bearing rock to the elements. Twin Metals issued a statement referring to the bill "as an attempt to bypass the rigorous regulatory and

16 | SKILLINGS MINING REVIEW February 2020

environmental processes already set up."

The firm said a permanent ban "would be catastrophic for the financial future of Minnesota�.

The possibilities that McCollum's bill may become law this year seem unpromising, given the active support of the Trump administration for mining and the Republicans' control of the Senate.

Nonetheless, it's likely to fuel the debate over mining jobs and the environment in the 2020 elections, including divisions among Democrats in a state that President Donald Trump is trying hard to carry in November.

Republican Reps. Tom Emmer and Pete Stauber, of Minnesota, issued a joint statement portraying the bill as a job-killing attack against the mining way of life on the Iron Range of northern Minnesota.

"Electromagnetic and microwave methods for processing industrial waste discharge permit for extracting up to 86-90percent of the valuable component, given that its content from the ore is about one gram per ton.

I am talking here about gold and platinum group metals, palladium included. Most of all, one semi-industrial processing cycle lasts 6-8 hours, while heap leaching requires 2-3 weeks."

Alternative solution delivered by the Mining University's researchers is connected with prospects for the exploitation of non-commercial apatite-nepheline ore residue, usually limited in quantities of

their valuable element. This research is of special importance as it also gives an opportunity to extract rare earth metals needed for manufacturing airplanes, missile components, and other high technology products.

NADEZHDA NIKOLAEVA, Senior Lecturer of

the Department of Mineral Processing, further explained that: "The core of the development lies in the new combination of flotation agents that are used in particular for grinding. The new alteration allows starting using lower-grade ores in production – ores with a valuable component of 5 to 8%, whereas now the value equivalent to

18% is considered profitable. Extraction of rare earth metals happens at an intermediate stage before flotation, during mechanochemical activation."

Both projects were formally introduced at the forum dedicated to optimizing waste conversion methods and improving the profitability of technogenic and low-grade ore residue development. The Expert Forum was organized in November by Lappeenranta-Lahti University of Technology (LUT University), the European Institute of Innovation and Technology, and also the International Competence Centre for Mining-Engineering Education under the auspices of UNESCO.

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www.skillings.net | 17

GLOBAL

Celebration as lead-zinc mining project reaches its full capacity DUDDAR: A mining company, the MCC Huaye, Duddar (MHD) Mining Company (Pvt) Ltd, organized a ceremony at the Duddar lead-zinc project on Saturday to celebrate its achievement of attaining full annual capacity with 500,000 tonnes.

Photo courtesy: c.tribune.com.pk

M

CC Resource Development Limited (MRDL) chairman Mr. Xuping, mines secretary, Balochistan, Syed Zafar Ali Bukhari, MRDL senior vice president Nawaz Khan in Islamabad, Minerals Ministry of Energy & Petroleum DG Iqbal, Chinese officials and government officials from Islamabad, Karachi and Quetta attended the program.

Speaking on the special occasion, Mr. Xuping said: "Today, we have a grand gathering to celebrate the historic goal of reaching full annual capacity with 500,000 tonnes of the Duddar lead-zinc project." "At this time, all of the Chinese and Pakistani employees in Duddar are excited and proud of today's construction accomplishment, as well as pleased that we haven't disappointed the expectations of Chinese, Pakistani government, and friends from all walks of life.

"After MCC Group entrusted China Huaye Group with taking over the Duddar project, we were faced with the severe geological conditions of the mine and harsh market scenario," he added. "Over the years, MCC Hauye Duddar project has overcome difficulties all the way

The project is invested and developed by China Metallurgical Group, and China Huaye Group is responsible for construction and production. Duddar lead-zinc project began construction in 2005 and shut down due to the hard underground mining conditions. through the vicissitudes of the rain and wind to realize its target," he said.

Duddar lead-zinc mining is situated in Balochistan's Lasbella district. It is the only underground metal mining project in Pakistan. The project is invested and developed by China Metallurgical Group, and China Huaye Group is responsible for construction and production. Duddar lead-zinc project began construction in 2005 and shut down due to the hard underground mining conditions. MHD took over the right to operate the Duddar project through International tendering, as

18 | SKILLINGS MINING REVIEW February 2020

well as began its recovery construction in 2014. In 2019, MHD officials said to have reached the yearly full production capacity in December, which is one year ahead of schedule.

Clarifying more on the Duddar project, the MRDL Senior vice president said, "The systematic investigation of Duddar deposits began in 1980, and $236 million was invested in it to bring it to the current point. Out of this, $7m was spent by UNDP/PMDC, $20m by Pascminco of Australi, $108m by MCC Duddar Mineral Development Company of China (DMDC), and $101m by MCC Huaye Duddar Mining Company (MHD)."

"Thus far, MHD has paid the provincial government of Balochistan Rs1,052.434m as royalty, Rs210.487m the government of Pakistan as presumptive tax, and Rs105.2m EPZA as development surcharge," he further added.

"More than 52 minerals are present in Balochistan, which has the potential to improve people's lives and the destiny of the province and country, Mr. Bukhari said ". According to him, there is a shortage of technical people in Balochistan, which explains the reason why the government is trying hard to match this gap. In his closing remarks, he explained, "In Duddar, the Chinese Company has worked more than our expectations. It is the responsibility of the company to offer education, health facilities, and employment opportunities to locals living near the project site.

As for the government, they will partner with the mining department to further launch new projects for locals." The officials from both China and Pakistan also spoke at the event.

US to Sell Rare Earths to China Under Trade Deal China has agreed to purchase two types of rare earth metals from the United States as part of an initial trade deal inked on Wednesday, a move likely to boost U.S. production of their strategic minerals.

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he agreement, signed in Washington by U.S. President Donald Trump and Chinese Vice Premier Liu He, gives China two years to ramp up purchases of hundreds of U.S. products, such as scandium and yttrium, two of the 17 rare earths commonly utilized in lighting and computers.

It was a surprising about-face for China, whose ranking as the top global manufacturer of the specialized minerals used to make electronics, military weapons, and other high-tech equipment was seen as giving it leverage in its trade war with the U.S. Chinese President Xi Jinping visited a rare earths center last May, a measure widely interpreted as threatening exports to the United States, which has been at their lowest level since 2015.

U.S. mines to produce them and other rare earths. The first trade deal effectively provides those junior miners a bonded client, a measure that should assist in the hunt for project funding.

Rare Element Resources Ltd (REEMF.PK).

The trade deal comes as the Pentagon has moved in recent months to help fund U.S. rare earth and rare earth magnet projects, part of an attempt to help create a national supply chain free from China, according to documents seen by Reuters.

"This provides an additional market for U.S. producers," said Anthony Marchese, chief executive of Texas Mineral Resources Corp (TMRC.PK), which is developing the Round Top mine in Texas with USA Rare Earth. The Round Top project has scandium and yttrium deposits, as also projects under development

by UCore Rare Metals Inc (UCU.V) and

NORTH AMERICAN MARKET (LTU) Company

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Ore Type

Pellets, FOB Michigan Mines Pellets, FOB Cleveland-Cliffs Inc. Minnesota Upper Lakes Port Source: CLEVELAND-CLIFFS INC. Cleveland-Cliffs Inc.

The rare earths tension between the U.S and China started in 2010 when China limited exports to Japan after a diplomatic dispute, sending prices for the market metals spiking and fueling concerns across the U.S. military that China could do the same to the United States.

Per Iron Unit

Per Gross Ton at 64%

Per Ton at 64% Reporting Date

$1.28

$81.92

12/31/17

$1.42

$90.88

12/31/17

The trade agreement doesn't involve the two most commonly used types of rare earths, neodymium, or praseodymium. China dominates its production, in addition to the manufacture of rare earth magnets. After rare earths are processed, they have to be turned into magnets; otherwise, they are of small value to weapons and electronics manufacturers.

Currently, the United States is neither producing scandium nor yttrium. However, several junior miners are developing www.skillings.net | 19

GLOBAL

NMDC to mine multibilliondollar diamond deposit in Madhya Pradesh State-owned miner NMDC is poised to win a multibillion-dollar contract to mine diamonds at a large project abandoned by global miner Rio Tinto, a major local government official told Reuters.

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MDC is set to explore the Bunder deposits at Madhya Pradesh, which could contain millions of carats of diamonds, Neeraj Mandloi, chief secretary at the state's Mineral Resource Department, told Reuters on Friday.

authorities. "Our geological survey has shown that the whole area, which has largely remained unexplored, is rich in diamonds," Mandloi said of the Bunder deposit about 500 km (300 miles) southeast of New Delhi, adding that its output could be worth billions of dollars.

The state authorities last month granted a smaller portion of the deposit area to Essel Mining & Industries, part of Indian conglomerate Aditya Birla Group, Mandloi explained. That region was valued at approximately $9 billion, according to estimates by Rio Tinto and the state

"We've asked NMDC to do a composite purpose of exploring and mining, and the firm has shown a preliminary interest."

Studies have shown that Madhya Pradesh, the only diamond mining region in Asia, could be among the world's top ten diamond manufacturers. Rio Tinto has spent

20 | SKILLINGS MINING REVIEW February 2020

approximately $90 million over the past 14 years on the Bunder Project, situated in a forested region that is home to tigers and other wildlife.

The organization had plans to invest up to $500 million but pulled out of the project after legal battles with green activists and delays in securing environmental permits.

According to the company's website, NMDC already mines in the neighboring Majhgawan mine at Panna, Madhya Pradesh, where the firm has extracted about 1 million carats of diamonds.

The state has also asked NMDC to explore and mine diamonds in several other blocks, Mandloi explained.

"NMDC is excited and looking forward to taking on another mine in Madhya Pradesh," a company spokesman told Reuters. Rio Tinto's decision to withdraw from the project was a blow to attempts

by Prime Minister Narendra Modi's government to enlist the likes of Rio Tinto and Anglo American to help India become a significant Minerals and precious metals producer.

Coal mining group Vinacomin urged to ensure steady power supply for economic growth NDO - Deputy PM Trinh Dinh Dung asked Vinacomin, Vietnam's State-owned mining, and coal group, to focus its business on meeting the market need, particularly in regards to coal, to help make sure there's an adequate power supply for further economic development.

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he request was made at a summit on January 10 to evaluate Vinacomin's performance in 2019 and to kick start the projects for 2020. He also encouraged the company to pay careful attention to Environmental protection during its work and operations with coal-fired power plants to handle coal ash and slag efficiently.

coal production and trade model while paying close attention to logistics as well as improving corporate management to accomplish such goals. Furthermore, Vinacomin will step up their implementation of approved Projects to ensure their sustainable development, Hai said.

According to the Deputy PM, the main obstacle Vinacomin is facing is an increasing demand for coal, particularly coal to generate power, while domestic mining is increasingly difficult and the quality of Vietnamese coal doesn't meet the requirements of power plants.

Under the most recent power development plan, Vietnam will need 55,000 megawatts in 2020, 100,000 megawatts in 2025, and 140,000 megawatts in 2030. The capacity of coal-fired power plants is currently 20,000 megawatts and is anticipated to grow to 40,000 megawatts in 2025 and 50,000 megawatts in 2030.

To reach such abilities, Vietnam will require 50 million tonnes of coal in 2020, 76 million tonnes in 2025 and 100 million tonnes in 2030.

Speaking at the seminar, Vinacomin General Director Dang Thanh Hai said the group aims to produce 40.5 million tonnes of coal in 2020, and generate earnings of VND138 trillion (almost US$6 billion) and profits of VND3.5 trillion (US$151 million). Hai further explained that the group would develop its www.skillings.net | 21

GLOBAL

Core Gold refuses to make recommendation on Titan bid Core Gold Inc. [CGLD-TSVV; CGLDF-OTCQX] said on Friday, January 3 that its board of directors has chosen to make no recommendation regarding whether Core shareholders should take or refuse a sweetened takeover offer from Titan Minerals Ltd. [TTM-ASX].

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he move comes after the original deal was amended by Titan by raising the bid to 3.1 Titan shares for every share of Core Gold.

Core shares advanced on the news, rising 2.1% or $0.005 to 24 cents, leaving the company with a market cap of $32.8 million based on 166.9 million shares outstanding (all classes). The shares are trading in a 52-week range of 14 cents and 33 cents.

On Friday, Core said it had filed a supplementals directors' circular of change and variation in reaction to this enhanced amended offer dated December 17, 2019, from Titan Minerals for each of Core Gold's outstanding shares.

Currently, Core Gold is the largest gold producer in Ecuador. They focused on gold production at its wholly-owned Dynasty Goldfield mining unit and continued development at its underground Zaruma Mine, which includes the nearby

Portovelo treatment plant. The Dynasty Goldfield is an open-pit gold mine estimated to be NI43-101-compliant resource of 2.1 million ounces of gold. It is currently producing at a rate of 750 tonnes per day, grading 3.2 g/t gold. That material is being processed at the Portovelo plant.

Titan Minerals is a copper and gold explorer and owner of a gold treatment business in southern Peru. Titan explained that the merger would create a Latin American-focused, ASX-listed gold firm with a portfolio of manufacturing, development and exploration assets in both the mining jurisdiction of Peru and Ecuador.

Nevertheless, the board of directors of Core Gold, after consultation with its legal advisors, has decided to make no recommendation as to whether holders of Core shares should accept or reject the Titan offer. Based on this development, Core stated that Titan has entered into lock-up agreements with Core shareholders who

22 | SKILLINGS MINING REVIEW February 2020

own or control, directly or indirectly, approximately 81.6 million Core shares, or 51.7% of the Core shares, excluding any Core shares beneficially owned or controlled by Titan.

This means that in the absence of an event which would allow the locked-up shareholders not to tender to (or withdraw from) the Titan offer, the minimum tender condition required by law and the Titan offer is expected to be fulfilled.

Supposing that all other conditions to the Titan offer are waived or satisfied, Titan will be in a position to acquire more than 50 percent of the outstanding Core shares under the Titan offer.

The Core investors have already agreed to the lock-up in the absence of any recommendation from the board. Also, Core said it had obtained an independent fairness opinion From Fort Capital Partners, which states that the consideration to be received in the Titan offer is fair from a financial point of view to Core shareholders.

Core said its board considers that any decision it could make concerning the recommendation is going to be perceived as not being impartial or without Conflict of interest.

MSHA modifying metal nonmetal mining regulations to include electronic detonators

T

he Mine Safety and Health Administration is updating its metal and nonmetal mining regulations to integrate improvements in electronic detonators.

As per a direct closing final rule published in the January 14 Federal Register, the agency intends to confirm the March 16 effective date of this rule if – as it anticipates – no "significant adverse comments" are received.

MSHA defines such remarks as any that explain "why the rule would be inappropriate, including challenges to the rule's

underlying premise or approach, or why it would be ineffective, less safe than other options or unacceptable without a change." The agency also published a concurrent suggested rule that it will withdraw if no substantial adverse comments are received.

In its regulations in 1979, MSHA first defined detonators as devices "containing a detonating charge that is used to initiate an explosive such as electrical blasting caps and nonelectrical instantaneous or delay blasting caps." The agency says it originally believed that definition provided

a means for the "automatic addition" of new technology. In January 1991, MSHA clarified that detonating cords are not included in the definition and divided detonators into two classes. The final rule adds the words "electronic detonators" to its definitions in 30 CFR 56.6000 and 57.6000. MSHA also adds a waiting period of 30 minutes for misfires of electronic detonators, or more if the manufacturer recommends it (56.6310 and 57.6310). Also, electronic detonators are added to circuit testing rules (56.6407 and 57.6407) and also for measures during storms (57.6604).

MSHA also states that other explosive standards in 30 CFR 56 and 30 CFR 57 (Subparts E) still apply to electronic detonators. Comments on the proposed rule must be received or postmarked

by March 16.

www.skillings.net | 23

AMERICA

V

R specializes in the design and manufacture of customized mining products with an emphasis on bulk-material and load handling equipment. Some of the products are truck trays, buckets (dragline, dipper, face shovel, excavator and wheel loader), dragline rigging, and miscellaneous open-cast mining equipment. VR strives to produce the best-customized mining products by investing in quality, innovation, technology, safety, and cost-efficiency to achieve customer satisfaction and product acceptance.

Strong dependence on an even more powerful technical engineering and design team has enabled VR Steel products to become the attachment(s) of choice for many blue-chip mining businesses. Products are designed from first principles based on client inputs and site condition reports, frequently requiring metrology (3D laser scanning) to guarantee input variables reflect reality.

Earthmoving equipment for open-cast mining One size doesn't fit all, and sometimes that is all the market has to offer mining houses all over the world. From the beginning of time, mine operations have had little in the way of equipment choice for their different strata and site requirements. They have been made to create their mining tasks suit commercial off-the-shelf attachments. The entry of VR Steel to the attachment market has changed all that.

24 | SKILLINGS MINING REVIEW February 2020

An unmatched suite of Computer-Aided Engineering (CAE) design software is then used to create and examine the electronic versions, simulating their structural strength, resonant frequencies, digging geometry performance, and even heat transfer capabilities. Systemic workflows on a certified ISO 9001:2015 backbone ensures that the design intent is captured and conveyed to each of the downstream business processes, ensuring that the client support and quality expectation is captured in the final product.

So far, over 500 big capital items have been shipped to North America, Africa, Oceania, and the Far East. Additionally, VR offers service, repair, and upgrade all other makes of earth-moving attachments. In almost three decades of business, VR Steel has consumed over 26,000 metric tonnes of quenched and tempered steel in product and repair tasks.

Sound innovative designs, unflappable corporate culture, and exceptional business agility see VR Steel constantly growing its customer base year-on-year as it assists its clients to unearth their potential...all the while genuinely redefining mining.

Iran exploiting only one percent of its mineral deposits stated this at a gathering of the country's supreme council of mining at the city of Zanjan, west-central Iran.

Vice-Chairman of Iran Stone Association (ISA) said Iran is extracting one percent of its mineral reserves while the figure ought to be 5% based on international standards.

Development of the country's mining industry and especially growing mineral exploration has become one of the main approaches of Iran's Industry, Mining, and Trade Ministry in recent years. Back in August, Head of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) announced that mining operations were started in 300,000 square meters of land across the country.

According to Khodadad Gharibpour, the Private sector in Iran has invested 11.3 trillion rials (about $269.04 million) in the mining industry since last December up to August.

A

ccording to world Standards, If Iran exploits its mineral reserves, the revenues from this industry would have been several times greater than that of oil," Malek Rahmati told IRNA on Sunday. According to the Statistical Center of Iran, Iran's mineral reserves now amount to 25.7 billion tons, of which 67 percent or 17 billion tons is limestone, while 10 percent or 2.5 billion tons is the share of iron ore, Rahmati said. The official put the worth of the mineral output of the country in the calendar year of 1396 (March 2017-March 2018) at $1.3 billion, accounting for 0.7 percent of the country's total gross domestic product (GDP).

Let’s show the world what we can do together.

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Iran has one percent of the world's population, one percent of the world's area, and one percent of the world's mineral reserves.

the world forward.

"The value of the nation's mineral and mining industry's exports amounted to over $9.2 billion last year [March 21, 2018-March 20, 2019], accounting for 21 percent of the total non-oil exports.

Deputy Trade, Mining and Industry Minister Jafar Sarqini stated last week that the country's mining sector is expected to export up to $10 billion of minerals and mining industry products by the end of the current Iranian calendar year (March 19, 2020). "Mines of Iran will not only fulfill the needs of the country's industrial plants and construction industry but will export roughly $9-$10 billion of minerals and other goods by the end of the year," Sarqini

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www.skillings.net | 25

EQUIPMENT

World's first production D11 Dozer hits the dirt As the world's first Production D11 begins work at BHP Mitsubishi Alliance (BMA) 's Blackwater Coal Operations, another five machines have been lined up to be set up to National Group in the forthcoming months. Together with the D11s founded in North America earlier in 2019, the National Group procured the world's first Next-Generation Dozer off the production line. ational Group Managing Director, Mark Ackroyd explained that the team prides themselves on having the best equipment available for their customers.

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and known for exceptional quality and reliability." "The D11 Dozer is the industry's best large dozer, so it was a great decision to bring in six fresh dozers to add to our grand fleet."

"Securing the First-ever CatÂŽ D11 Dozer in the world is a testament to this," he said. "Cat machines and engines are generally recognized as premium products

Together with load Sensing hydraulics reducing fuel burn, the new D11 will extend component life from fuel burn to overhaul. This machine has been devel-

26 | SKILLINGS MINING REVIEW February 2020

oped by Caterpillar to ensure faster cycle times to produce more dirt at a lower cost per ton. Mr. Mark Ackroyd said that the contribution the dozers will add to efficiency and production would improve performance on site.

"Due to the frame design, enhanced bearings, redesigned pin joints, plus a 30% bigger oil pan of the D11 Dozer, we expect lower maintenance & repair prices by up to 5%. The D11 Dozer is equipped with performance-enhancing technologies to allow for accuracy and increased productivity in the field.

"In partnership with Hastings Deering, we previously implemented and optimized semi-autonomous tractor program (SATS) technologies in an Australian first

for multiple D11's in a mining production environment." Jason Garea Account Manager at Hastings Deering said that the relationship with the National Group has become stronger over several projects.

"We've experienced a long-standing relationship with National Group, and being in a position to deliver another world first with the D11 is a demonstration of things to come."

The D11 Dozer has incorporated technology built into it, including terrain, which makes for more accuracy on job sites and, in turn, would reduce rework."

D11 standard dozer as well as the carry dozer applications." "it is a beefed-up frame that currently does both."

"All the Six dozers have been lined up by Mark to be fitted using the new Reclamation blade, or XU Blade, which takes it from a 34 cubic meter blade to a 42.2 cubic meter blade," he said.

"The D11 Dozer is the industry's best large dozer, so it was a great decision to bring in six fresh dozers to add to our grand fleet."

The Cat adage "Built to be Rebuilt" has been upgraded with the redesigned main frame of the D11 Dozer, which delivers a lower total cost of ownership over the lifespan of the machine. "Mr. Garea stated that there's a single frame now used between both the

"The good thing here is that it still handles like a U-Blade and can go into the same applications. "They're very effective, which reduces the cost per ton. We are looking forward to seeing how these work now that the first has struck the dirt," explained Mr. Garea.

We are expecting the second D11 Dozer to be commissioned onsite next month at Blackwater Coal mine.

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EQUIPMENT

28 | SKILLINGS MINING REVIEW February 2020

Decarbonization Takes Center Stage in Mining as Renewables-Plus-Storage Become Cost-Competitive

Many of the issues discussed at the Energy and Mines World Congress earlier this month would have been borderline laughable a few years ago. For instance, a panel of senior mine executives considered which milestone would probably be achieved: fully electric mines, decarbonized fleets, or even 100-percent-renewable-energy-powered operations.

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he fact that a subject like this was seriously debated is a reflection of exactly how much both the mining industries and renewable energy have developed in the last several years. While large companies that mine for gold, copper, lithium, and cobalt have voiced the value of decreasing their carbon emissions, pure economics is actually the reason behind the interest in solar, wind, and energy storage.

Globally, mining operations require a lot of energy. Total Energy cost is between 15 to 40 percent of a mine's operating costs. Electricity demand has traditionally been met by grid energy or heavy fuel oil, such as diesel to run mining equipment.

Based on a report by the Columbia Center on Sustainable Investment, the sector accounts for between 1.25% and 11 percent of total global energy requirements, with the wide

variation due to which downstream activities are added in the calculation. Since many mines are in distant places, expensive fuel must be transported long distances, and grid energy is usually unavailable or unreliable.

Continuously declining costs for wind, solar, and energy storage have made clean energy an economically attractive alternative. According to Wood Mackenzie, the cost of energy storage in 2022 will be 61 percent less than in 2013, and the price of solar will be 40 percent lower.

All these and other variables have resisted clean energy installations at mines across the globe. According to the Rocky Mountain Institute's Renewable Resources at Mines tracker, there are almost 1.8 gigawatts of renewable power installed at 88 sites across 26 countries, and more than 3 gigawatts of planned projects. www.skillings.net | 29

ADDING SOLAR-PLUS-STORAGE IN MALI

In December, the Canadian gold-mining firm B2Gold announced that it had placed an order for a 17-megawatt/15-megawatthour energy storage system from the technology firm Wärtsilä to maximize the grid powering its Fekola mine in southwest Mali. Historically, the mine has been powered by 64 megawatts of fuel-powered engines, and now they are planning to add 30 megawatts of solar.

"The lifespan of the mine has been increased, so they were looking at how to provide electricity to cover the extra production capacity and the best way to do it in a more sustainable manner," said Risto Paldanius, director of business development for Wärtsilä's Energy Storage and Optimization business unit.

"They agreed on a combination of engines and solar, so the next question was how to manage the solar together with the engine. Finally, they decided that energy storage is needed to help integrate the assets to maximize the renewables, get the lowest levelized cost of energy, and reduce emissions."

According to Paldanius, the addition of the Solar implies that B2Gold can reduce

Continuously declining costs for wind, solar, and energy storage have made clean energy an economically attractive alternative. According to Wood Mackenzie, the cost of energy storage in 2022 will be 61 percent less than in 2013, and the price of solar will be 40 percent lower. its cost and transport of heavy fuel oil by millions of liters per year. Also, the solar combined with energy storage and optimization made possible with Wärtsilä's GEMS technologies is expected to decrease the mine's processing costs by 7% and reduced carbon emissions by about 39,000 lbs each year.

"The benefits for both the solar and storage investment can be measured in a few years," explained Paldanius.

LONG-TERM OPERATIONS, LONG-TERM SAVINGS

As improved general economics and sustainability are essential macro drivers of renewables and storage in the mining sector, calculations about the best energy solution vary by site. For greenfield mines, the positive and improving the economics of renewables and storage makes implementing a hybrid or fully renewable system an obvious option.

For existing mines that have grid connections or get their power from fuel-powered motors, investing in renewables and storage depends on the anticipated lifespan of the mine. "That is the biggest question mark. They have monetary calculations of how long a mine works and it is contingent upon the forward prices of what they're mining," said Paldanius. "Does the lower levelized cost of energy and decrease of emissions for the remaining life of the mine incentivize investments in new generation equipment, be it storage, solar or new thermal engines?"

Storage is a significant element when taking into consideration the addition of renewable generation to a mine powered by engines since a dispatchable generation source is needed to balance solar or wind intermittency. "You might need more spinning reserve from engines, meaning they are consuming more fuel and running less efficiently," said Paldanius. "You might end up having to curtail free wind or solar in order to keep engines running to provide backup power."

In its system design for mines, Wärtsilä leverages its expertise on island microgrids. "There are no major differences in the operations," explained Paldanius. "It may even be a little easier with mines since their operations tend to be 24/7, and the load can be more stable than on the islands." In terms of maximizing economic advantages of all renewables-plus-storage at mines, the industry has only scratched the surface, said Paldanius. "I think we will see more possibilities as mines like Fekola Start to see the benefits.

30 | SKILLINGS MINING REVIEW February 2020

AMERICA

Apple pushes recycling with ‘Daisy’ robot, but mined metals still needed Apple Inc APPL.O is currently trying to change the way electronics are recycled using a robot that disassembles its iPhone so that minerals could be recovered and reused, as global demand for electronics increases, new mines are expected to be needed. The Cupertino, California-based firm says the robot is part of its plan to become a "closed-loop" manufacturer that does not rely on the mining industry, an aggressive target which many industry analysts have said is impossible.

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any mining executives note that with the rising prevalence of electric vehicles, newly mined minerals will be needed on an even larger scale, a reality that Apple admits.

"We are not necessarily competing with the People who mine," explained Lisa Jackson, the company's head of environment, policy and social. "Miners have no reason to worry about this development."

Inside a warehouse on the outskirts of

Austin, Texas, Apple's Daisy robot breaks iPhones apart so that 14 minerals, such as lithium, can be extracted and recycled.

Apple is currently using recycled tin, rare earths and Cobalt in some of its products, with plans to add more to the list. The organization last month bought the very first commercial batch of carbon-free aluminum from a joint venture between Alcoa (AA.N) and Rio Tinto (RIO.AX).

Daisy, less than 20 yards in length, uses a four-step process to remove an iPhone

battery with a blast of -80 degree Celsius (-112°F) air, and then pop out modules and screws, including the haptic module that makes a phone vibrate. The elements are then sent off to recyclers for the minerals to be extracted and refined. Daisy can rip 200 iPhones per hour. Apple picked the iPhone to be the very first of its products that Daisy would disassemble because of its popularity, said Jackson.

Apple is currently contemplating sharing Daisy technology with electric automakers. Daisy does have its skeptics, including some in the technology world who want the company to concentrate more on manufacturing products that can be repaired, not just recycled.

"There's this self-esteem that makes them believe they can get all their minerals back, and it is not possible," said Kyle Wiens, chief executive of iFixit, a firm advocate for electronics repairs, instead of replacement. That may partially explain why the mining industry is not worried.

Tom Butler, president of the International Council on Mining and Metals, an industry trade group stated that "Apple is in an enviable position because they can do this," "Not everyone else will be able to follow suit." www.skillings.net | 31

GLOBAL

The Minnesota Court of Appeals on Monday rejected some of the most important permits for the projected PolyMet copper-nickel mine in northeastern Minnesota, giving environmentalists a significant victory. A threejudge panel ruled that the state Department of Natural Resources erred when it declined to order a proceeding known as a "contested case hearing" to gather more information about the potential environmental impacts from the mine.

32 | SKILLINGS MINING REVIEW February 2020

Minnesota Court Rejects Major Permits for projected PolyMet Mine

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he court also said the agency erred when it issued PolyMet's permit to mine without imposing a fixed term on that permit. Hence that the court sent the dispute back to the DNR with orders to conduct the hearing, during which testimony would be taken by an administrative law judge and sort out conflicting evidence. Environmentalists supported the decision, while PolyMet said it would consider taking the case to the Minnesota Supreme Court, and the DNR said it would be reviewing its options.

At issue was PolyMet's permit to mine and its two dam safety permits. The court suspended those permits in September since it wanted more information on how the DNR was responding to two significant developments since it approved the licenses in 2018.

Swiss-based commodities giant Glencore took a majority stake in the project. And there was a disastrous failure at an iron mine in Brazil of a tailings basin dam that had some similarities with PolyMet's projected dam.

Opponents of the project urged the appeals court at a hearing in October to cancel the two permits and order additional proceedings to ascertain whether the mine's environmental and financial safeguards were sufficient. They contended that the public and court would be unable to enforce the conditions of the permits as written by the DNR. However, attorneys for the department and PolyMet contended that the project had undergone thorough public reviews that fulfilled all the legal requirements, and that the permits contain lots of safeguards to protect the citizens and environment. The Appeals court explained in its decision that the fact the DNR might have considered evidence through its environmental review and permitting proceedings did not relieve the agency of the need to conduct a contested case hearing. The court did not address most of the www.skillings.net | 33

opponents' other arguments since it found that the agency had committed legal errors that required reversing the agency's decision to grant the permits.

The PolyMet and DNR have one month to ask the Minnesota Supreme Court to hear the case. The agency said the appeals court's view has implications not just for this one project, but the role of contested case hearings in the permitting process more widely.

"Remarkably, The Court's opinion does not conclude the validity of the scientific investigations underlying the DNR's decisions," the bureau said in a statement. "We remain confident in the strong base of our work." PolyMet said in a statement that the organization and regulatory agencies have "vigorously followed" the thorough process established by state law for the last 15 years.

"We are sure that we can produce these high-demand metals with Minnesota workers, and by following all applicable regulations," the company said.

But Paula Maccabee, a lawyer for WaterLegacy, one of the groups that challenged the permits, called the decision "an enormous success." She said in an interview that the hearing would signify a trial-like proceeding "in an open and transparent process for everybody to see. That mean's PolyMet's toxic environmental threats will finally get the scrutiny they deserve" The Appeals court noted that the opponents' concerns about the potential for acid mine drainage, the safety of the design for the mine's waste pond, and the effectiveness of plans for controlling contamination seepage from it, and whether the permits contain adequate financial safeguards to cover long-term cleanup costs.

Paul Gazelka, Minnesota Senate GOP Majority Leader, tweeted that the decision was "very disappointing. Plenty of jobs for the Iron Range are put on hold by liberal courts and radical environmentalists."

Kathryn Hoffman, CEO of the Minnesota Center for Environmental Advocacy, spoke about the Appeals Court decision on PolyMet's permits in St. Paul on Monday, Jan. 13. stmedia.stimg.co

The Appeals court explained in its decision that the fact the DNR might have considered evidence through its environmental review and permitting proceedings did not relieve the agency of the need to conduct a contested case hearing. The court did not address most of the opponents' other arguments.

The case was one of the several challenges pending before the courts in the battle over the project between Hoyt Lakes and Babbitt, which would be the first copper-nickel mine of Minnesota.

permit and keep them out of the public record. The Judge will later present his findings to the Court of Appeals, which will consider his report when it decides on a separate challenge by environmental and tribal attorneys to the water permit.

A Ramsey County judge will open what is expected to be a five- to 10-day fact-finding hearing by next week on alleged irregularities on how the Minnesota Pollution Control Agency handled the water permit for the project.

The complainant, in that case, includes the Fond du Lac Band of Lake Superior Chippewa, whose reservation is 70 miles (110 kilometers) downstream from the planned site.

MPCA officials allegedly tried improperly to suppress the federal Environmental Protection Agency's concerns over the

PolyMet has been trying to raise $1 billion in construction financing while it fights off the remaining legal challenges.

34 | SKILLINGS MINING REVIEW February 2020

AMERICA

Photo: vale_t/iStockphoto

MSHA to Focus on Contractor Safety and Compliance in the New Year Washington — The Mine Safety and Health Administration is updating its metal and nonmetal mining regulations to integrate improvements in electronic detonators. As per a direct closing final rule published in the January 14 Federal Register, the agency intends to confirm the March 16 effective date of this rule if – as it anticipates – no "significant adverse comments" are received.

M

SHA defines such remarks as any that explain "why the rule would be inappropriate, including challenges to the rule's underlying premise or approach, or why it would be ineffective, less safe than other options or unacceptable without a change." The agency also published a concurrent suggested rule that it will withdraw if no substantial adverse comments are received.

In its regulations in 1979, MSHA first defined detonators as devices "containing a detonating charge that is used to initiate an explosive such as electrical blasting caps and nonelectrical instantaneous or delay blasting caps."

The agency says it originally believed that definition provided a means for the "automatic addition" of new technology.

In January 1991, MSHA clarified that detonating cords are not included in the definition and divided detonators into two classes.

The final rule adds the words "electronic detonators" to its definitions in 30 CFR 56.6000 and 57.6000. MSHA also adds a waiting period of 30 minutes for misfires

of electronic detonators, or more if the manufacturer recommends it (56.6310 and 57.6310). Also, electronic detonators are added to circuit testing rules (56.6407 and 57.6407) and also for measures during storms (57.6604).

MSHA also states that other explosive standards in 30 CFR 56 and 30 CFR 57 (Subparts E) still apply to electronic detonators.

"For those electronic detonator systems that the agency has examined, MSHA agrees with [the Institute of Makers of Explosives] that electronic detonators provide a working environment that is safe or safer for miners when compared with nonelectric and electrical detonators because they provide for increased management of a blast," the federal register notice states. "MSHA believes that recognizing electronic detonator systems as distinct from electrical detonators will prevent confusion over certain regulatory conditions."

Comments on the proposed rule must be received or postmarked by March 16. www.skillings.net | 35

EQUIPMENT

Global demand for Piling equipment & Supplies is expected to rise International demand for piling equipment and supplies is set to rise, owing to increasing investments in non-conventional energy sources and increasing exploration activities for new mineral deposits. A thriving construction industry throughout the world is expected to propel the requirement for piling supplies and equipment necessary in pile foundation work.

According to a new study, growing investments in non-conventional sources of energy and increasing exploration activities to extract fresh mineral deposits are expected to fuel demand and revenue growth in the global piling equipment and supplies market.

36 | SKILLINGS MINING REVIEW February 2020

T

echnology-supported advances in hydraulic fracturing have resulted in a shift from conventional production of utilities to non-conventional shale gas and tight petroleum production. Shale gas and tight oil are produced in large quantities in the United States and Canada, and this is likely to result in a rise in foundation work in shale gas production centers, thereby amplifying the demand for piling equipment.

A changing focus towards unconventional energy resources, such as wind energy and solar, to generate power is being

promoted by regulatory approvals and governmental support in countries such as India, China, and Japan. This is further anticipated to lead to an increase in foundation work and thereby increase the demand for piling equipment.

There was a dip in mining activities in Malaysia, China, and Indonesia in the recent past, predominantly because of the imposition of strict governmental regulations in these nations. This has resulted in a shift to other regions for the mining, exploration, and excavation of minerals and metals to bridge the supply-demand gap.

Advanced geotechnical and foundation equipment is required to gain access to the deep mineral residue and also to stabilize the structure of the soil in areas opposite the mines. One study predicts that such mining activities will eventually induce demand for anchoring equipment and piling sheets in the next few years.

Based on the analysis presented in the report, the global Markets for piling supplies and piling equipment – collectively estimated to be valued at US$5 117 million in 2018 – are projected to achieve a collective valuation of US$7 168.8 million towards the closing of 2026, exhibiting CAGRs of 3.7% and 4.5% respectively during the period from 2018 - 2026.

This growth can be attributed to the rising regional funding in infrastructure projects, possibly leading to a rising demand for piling equipment and supplies.

ECO-FRIENDLY PILING EQUIPMENT TO WITNESS A RISE IN DEMAND

Piling equipment manufacturers are leveraging technological innovation to improve the quality and performance of their products while complying with rules and regulations regarding environmental protection and sustainability.

The diesel hammer has slowly given way to hydraulic hammers, and in many densely populated regions, piling equipment used both to drill piles into the earth and excavate existing piles uses vibration technology to reduce cases of dust and noise contamination.

The latest piling equipment is pre-fitted with GPS and other land positioning systems that help find foundations. For

instance, sensors are used on crane booms, foundation rig masts, and in vertical lead systems to position foundation components.

Technological development allows rigs and cranes to correctly position the foundation within specific coordinates and therefore aims to minimize costs associated with surveys.

These advancements are expected to bolster earnings in the international piling equipment and supplies market.

PILING EQUIPMENT MARKETPLACE TO REMAIN CONSOLIDATED

The international market for piling equipment is highly consolidated, with some companies dominating the market in terms of manufacturing capacity of piling and drilling rigs. Some of the more prominent players in the global market jointly hold roughly 40% market share.

One of the key strategies of these large players would be to venture into alliances and partnerships with drilling service providers and also offer in-house piling services to expand their customer base and strengthen their hold in the global industry. Some of the piling equipment Manufacturers based in China maintains a relatively large share in the global production Capacity of piling equipment. www.skillings.net | 37

AMERICA

38 | SKILLINGS MINING REVIEW February 2020

Companies fight over rights to gold claims in lawsuit amid sale of Pogo mine A legal dispute over who has rights to thousands of acres of promising Interior Alaska gold has ensnared the new and former owners of the Pogo gold mine. Nevada-based Great American Minerals Exploration Inc. sued former Pogo owner Sumitomo Metal Mining America Inc., RCI Capital Group Inc., a Canadian finance company and the new Pogo owners, on Nov. 6 in Alaska Superior Court claiming Sumitomo and RCI Capital conspired to sell gold claims near Pogo out from under Great American Minerals as part of a $260 million sale of the mine in 2018.

www.skillings.net | 39

In late August 2018, Sumitomo declared that it had agreed to sell the underground Pogo mine to Australian-based Northern Star Resources Ltd. in a deal which, unbeknownst to Great American Minerals at the time, included the roughly 36,000 acres of state mining claims known as the Monte Cristo property.

According to the Complaint, Great American Minerals Exploration (GAME) signed an option agreement with Sumitomo and its subsidiaries in late August 2016 that gave GAME exclusive rights to finally buy the Monte Cristo claims provided it made good on a series of work and payment conditions before the end of 2019.

Information published in 2018 by Sumitomo and Northern Star on their websites regarding the Pogo sale references exploration opportunities as part of the transaction agreement, but the Monte Cristo property isn't explicitly named.

A statement adhering to the injunction order by Knight and Holland, the law firm representing GAME, estimated the value of the Monte Cristo property at about $40 million. The Complaint alleges Sumitomo did not believe GAME would meet its requirements under the option agreement and consequently began searching for another buyer for Monte Cristo. It asserts that RCI Capital, Northern Star, and Sumitomo disparaged GAME to prospective investors to prevent the explorer from raising funds needed to meet its end of the deal.

On Dec. 30, a day before the option agreement between GAME and Sumitomo was set to expire, Judge Jennifer Henderson issued a preliminary injunction in the lawsuit that freezes the agreement until Henderson lifts the injunction or the case is resolved. According to the Complaint, GAME paid Sumitomo $700,000 in installments over two years and made good on commitments to do at least $8.5 million of mining work at Monte Cristo from 2017 to 2019.

Singer stated that "Investors refuse to get involved in a mining claim if there's any question about ownership and clear title." "The conduct of RCI and Sumitomo put hair on this deal and scared the investment community away," Singer added.

Sumitomo, Northern Star, and RCI Capital attorney failed to respond to requests for comment or declined to comment on the lawsuit.Northern Star, in its response to GAME, also denied almost all of the allegations in the Complaint.

In its response, Sumitomo denied the vast majority of the allegations made by GAME but admitted that the exploration company fulfilled its work commitments in 2017 and 2018 and made its final option fee payment of $250,000 on Aug. 29, 2018, a day before the sale of Pogo was announced.

According to Northern Star, it didn't buy the assets of Stone Boy Inc., a former subsidiary of Sumitomo that retains Monte Cristo, reason because Stone Boy is just a holding company that has no day-to-day operations, according to Northern Star. Instead, Northern Star purchased 100 percent of Stone Boy's stock in an equity deal.

Matt Singer, a lawyer, working for GAME, said in an interview that the company conducted more than the $5 million of work in 2019 at Monte Cristo that it was required to under the option agreement. The company considers the property as an up-and-coming prospect because it sits between the Pogo and Fort Knox gold mines and retains comparable geology, Singer added.

Singer Stated that when GAME didn't default as Sumitomo and RCI Capital expected, "Sumitomo had been less-thancandid with my client — essentially concealed the trade for some time." Also, Singer explained that Northern Star wanted to tell GAME about the Pogo deal including the Monte Cristo claims and wanted the organization's consent for the transaction, but "Sumitomo was scrambling, trying to figure out what to do and make the deal quiet,"

Matt Singer, a lawyer, working for GAME, said in an interview that the company conducted more than the $5 million of work in 2019 at Monte Cristo that it was required to under the option agreement.

"(GAME) had one of the most significant drill programs in the state last year," he explained. "Those are real jobs, and it's a real activity." The firm wants to clarify its right to Monte Cristo and move ahead with acquiring and exploring the property, Singer said. According to the option agreement, GAME was to pay Sumitomo $15 million, or $10 million-plus a 1.5 percent royalty on future gold production, no later than 45 days after the conclusion of the option agreement to fully buy Monte Cristo. Alternatively, GAME could extend the option by a year with a $2 million payment.

40 | SKILLINGS MINING REVIEW February 2020

Northern Star's 2019 yearly report dated Aug. 27, states in a comment that GAME holds an option to purchase Monte Cristo. The report also lists Northern Star as a "joint holder" of the claims. "No sale of the Monte Cristo property happened because at that time (of the Pogo sale) that the Plaintiff had not been requested for, nor had it given its consent for the assignment of this option agreement," Northern Star lawyers wrote in response to GAME.

GLOBAL

Brazil to Allow Mining of Indigenous Lands by European Diplomats Brazil's government said that it was pushing forward with plans to permit mining on indigenous lands, briefing European diplomats on proposals that have drawn criticism from native advocates in Brazil and overseas.

at the ministry, said in a statement that "There's a lot of misinformation concerning this particular issue, so the global community must hear what the government has to say."

A

The ministry said representatives of France, Sweden, Germany, Spain, Portugal, Italy, Poland, Belgium, Denmark, Slovenia, the Czech Republic, Hungary, the Netherlands, and the European Union took part in the meeting on Thursday.

ccording to a public statement on the ministry's website, Mining and Energy Minister Bento Albuquerque told the diplomats that "significant leadership" from indigenous communities had asked for the opportunity to mine on their lands.

The initiative is part of President Jair Bolsonaro's push to encourage Farming, ranching, and mining on tribal reservations, which he has criticized for slowing economic advancement. European leaders have expressed worries that his policies will increase deforestation and threaten indigenous cultures.Alexandre Vidigal, secretary for geology and mining

The Indigenous Missionary Council (CIMI), which advocates for native rights in Brazil, has contended against Bolsonaro's plans to open up mining on reservation lands, stating most indigenous groups are opposed.

Conflicts between Illegal miners and natives have caused bloodshed on both sides in the past couple of years. www.skillings.net | 41

AMERICA

Wave of institutional divestment from coal mining, generation evolves in 2019 Low U.S. coal demand, reduced seaborne pricing, and a wave of insurers and financial institutions declaring plans to exit the coal arena was dominant themes in 2019. Coal producers may have more difficulty accessing funds as institutions increasingly move away from coal financing. The Unfriend Coal campaign, which attempts to distance coal manufacturers and insurers, wrote in a recent report that the number of insurance companies turning away from coal coverage doubled in 2019.

42 | SKILLINGS MINING REVIEW February 2020

W

e have seen a momentum on a different level this year," Peter Bosshard, manager of the Unfriend Coal effort and author of the report, stated in a meeting. "It has become physical for so many individuals — whether you reside in California in the Bay Area or the Midwest where the floods didn't stop this spring and summertime or in the Plains or the southeastern U.S. — a lot of people were faced with the effect of a changing climate in unprecedented ways. So many people are already freaking out, and rightfully so."

In an attempt to help fight global warming, environmental groups have targeted major companies and asset managers to stop fossil fuel investment. Asset manager Octopus Group explained in an October report that 100 institutional investors globally intend to increase their renewable energy investments to 5.2% within 12 months and by 10.9% by 2029. They are hoping to triple their divestment from fossil fuels during that period.

EQUIPMENT An August S&P Global Market Intelligence analysis found that the 20 insurers with the most coal exposure as of 2018 held $40.30 billion in related investments. A few of those investments were in coal production while most were in utilities that generated over 30 percent of their 2017 electricity from coal.

Recently, Liberty Mutual Group Inc. outlined plans to increase its focus on environmental, social, and governance issues. Because of this, the global insurer won't invest more in equity securities or debt of companies that produce more than 25 percent of their earnings from thermal coal manufacturers of utilities that provide over a quarter of their electricity from the fuel.

Rainforest Action Network said Liberty Mutual is the 18th global insurance firm to restrict its activities in the coal space.

Goldman Sachs Group Inc. also declared plans earlier this month to reduce funding for specific new fossil fuel projects and dedicate another $110 billion to clean energy solutions by 2025. The investment bank didn't commit to pulling funding from coal mining, oil and gas companies, or the largest coal-fired utilities.

Beginning from 2020, AXIS Capital Holdings Ltd. will no longer provide new insurance or facultative reinsurance for new thermal coal mines or plants, or oil sands extraction and pipeline projects.

Following the new policy, the global holding company won't further invest in companies generating at least 30% of their revenue from utility coal mining or 30% of their electricity from coal.

Furthermore, AXA SA vowed to leave the EU coal industry and the Organisation for Economic Co-operation and Development completely by 2030 before pulling out of the space globally by 2040.

Insurer Chubb Ltd. has also declared their intentions to decrease its coal mining and electricity exposure, with exceptions to new underwriting policies to be considered through 2022.

Hexagon acquires Blast Movement Technology to strengthens its Smart Mine solutions portfolio

A

utonomous solutions provider Hexagon has bolstered its Smart Mine solutions portfolio with the acquisition of Blast Movement Technologies (BMT), a provider of blast movement tracking and analysis for open-pit mines. BMT's technologies complement Hexagon's drill and blast solutions and will enable precise delineation of ore boundaries, such as accurate ore location information, after blasting in open-pit mining.

The acquisition will enable Hexagon's mining customers to better address revenue from ore lost, in which valuable ore is sent to the waste pile, as well as dilution - where waste is sent to the mill. Hexagon further explained that BMT's solution, which is a combination of sensors and software, provides clients with precise blast information that is used to recover a mine's resources.

The solution collects data from blast movement sensors, which move with the blasted material, while the software is used to transform the data from the post-blast location of ore to the outputs of more precise dig lines. "Controlling ore loss and dilution is critical for mining operations, especially when profit margins are tight during commodity down-cycle," says Hexagon President and CEO Ola RollĂŠn.

"Today's acquisition of BMT is a strong addition to our Smart Mine portfolio, further closing the drill and blast loop for our clients, and ultimately, improving their ability to measure, manage and improve mining operations from pit to plant." BMT CEO Jacques Janse said: "BMT complements the Hexagon package of products in the drill and blast space and will ensure that Hexagon remains at the forefront of innovation from the blast movement space.

"Hexagon can fast-track improvements to the BMT solution and its expertise in the software will boost the BMT services, ensuring clients get valuable information to aid confident decision-making and boost ore yield." Australia-based BMT operates globally, with over 100 customer sites mining nine products across 40 countries. BMT will be fully consolidated and operated within the mining unit of Hexagon's division. www.skillings.net | 43

STATISTICS United States Exports to World of All Steel Mill Products in Thousands of Metric Tons

November 2019 crude steel production

W

orld crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 147.8 million tonnes (Mt) in November 2019, a 1.0% decrease compared to November 2018.

Source: U.S. Department of Commerce, Enforcement and Compliance.

Includes content supplied by IHS Global Ltd.; Copyright © IHS Global, Ltd. All rights reserved. Updated on 12-08-2019.

Raw Steel Production

China’s crude steel production for November 2019 was 80.3 Mt, an increase of 4.0% compared to November 2018. India produced 8.9 Mt of crude steel in November 2019, down 2.8% on November 2018. Japan produced 7.7 Mt of crude steel in November 2019, down 10.6% on November 2018.

South Korea’s crude steel production was 5.9 Mt in November 2019, a decrease of 0.5% on November 2018.

I

n the week ending on January 4, 2020, domestic raw steel production was 1,898,000 net tons while the capability utilization rate was 82.0 percent. Production was 1,861,000 net tons in the week ending January 4, 2019 while the capability utilization then was 79.4 percent. The current week production represents a 2.0 percent increase from the same period in the previous year. Production for the week ending January 4, 2020 is up 1.2 percent from the previous week ending December 28, 2019 when production was 1,876,000 net tons and the rate of capability utilization was 81.1 percent.

Adjusted year-to-date production through January 4, 2020 was 1,898,000 net tons, at a capability utilization rate of 82.0 percent.

That is up 2.0 percent from the 1,861,000 net tons during the same period last year, when the capability utilization rate was 79.4 percent. Broken down by districts, here's production for the week ending January 4, 2020 in thousands of net tons: North East: 232; Great Lakes: 666; Midwest: 209; Southern: 698 and Western: 93 for a total of 1898.

The Raw Steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage provided from 50% of the domestic producers combined with monthly production data for the remainder. Therefore, this report should be used primarily to assess production trends. The AISI production report "AIS 7", published monthly and available by subscription, provides a more detailed summary of steel production based on data supplied by companies representing 75% of U.S. production capacity.

Note: Capability for the Fourth Quarter 2019 is approximately 30.4 million tons compared to 30.8 million tons for the same period last year and 30.6 million tons for the Third Quarter of 2019. + Year-to-date totals adjusted for consistency with monthly data.

44 | SKILLINGS MINING REVIEW February 2020

In the EU, Italy produced 2.0 Mt of crude steel in November 2019, down by 9.8% on November 2018. France produced 1.1 Mt of crude steel in November 2019, an 18.2% decrease compared to November 2018. Spain produced 1.1 Mt of crude steel in November 2019, down by 10.9% on November 2018.

The US produced 7.2 Mt of crude steel in November 2019, a decrease of 2.2% compared to November 2018. Brazil’s crude steel production for November 2019 was 2.6 Mt, down by 10.5% on November 2018. Turkey’s crude steel production for November 2019 was 2.9 Mt, down by 8.1% on November 2018. Crude steel production in Ukraine was 1.3 Mt this month, down 20.1% on November 2018.

The World Steel Association (worldsteel) is one of the largest and most dynamic industry associations in the world, with members in every major steel-producing country. worldsteel represents steel producers, national and regional steel industry associations, and steel research institutes.

Members represent around 85% of global steel production.

CRUDE STEEL PRODUCTION, NOVEMBER 2019. Source – World Steel Association COUNTRY

NOV 2019

NOV % CHANGE 2018 NOV-19/18

2019

% CHANGE

COUNTRY

NOV 2019

NOV % CHANGE 2018 NOV-19/18

2019

% CHANGE

Austria

590 e

673

-12,3

6 931

10,9

Mexico

-7,7

17 101

-8,0

Belgium

682 e

612

11,4

7 308

-1,2

United States 7 233 7 399 -2,2

80 615

1,9

Bulgaria

45 e

55

-17,4

527

-13,8

Croatia

5 e

19

-73,4

67

-45,0

North America 9 693 10 053 -3,6 110 115

-0,6

Czech Republic

260 e

390

-33,4

4 103

-9,5

Argentina

Finland

304

339

-10,5

3 333

-13,0

France

1 105

1 351

-18,2

13 529

-5,1

Chile

Germany

3 215 e

3 689

-12,9

37 090

-5,4

Greece

120 e

129

-7,0

1 261

Hungary

163

166

-1,6

1 971

2 186

Italy

-18,9

4 331

-9,9

2 911

-10,5

29 820

-8,8

110 e

106

3,4

970

-7,7

Colombia

125 e

108

15,7

1 124

0,5

-8,6

Ecuador

45 e

49

-7,9

551

2,9

1 606

-12,2

Paraguay

3 e

3

-12,6

23

1,4

-9,8

21 816

-4,4

100 e

102

-2,0

1 137

1,9

5 e

7

-24,7

55

0,3

Venezuela 1 e 4 -75,0

51

-59,3

South America 3 363 3 747 -10,2

175 e

188

-6,7

2 019

-3,1

Netherlands

545

578

-5,7

6 136

-1,8

Poland

730 e

850

-14,1

8 400

-9,6

51

51

-0,1

589

-3,9

1 070

1 201

-10,9

12 821

-3,4

Sweden

309

333

-7,4

4 344

2,2

United Kingdom

550

567

-3,0

6 676

-2,1

Other E.U. (28) (e) 900 e 941 -4,3

9 895

-1,8

European Union (28) 12 789 14 316 -10,7 148 451

-4,2

Bosnia-Herzegovina

55 e

79

-30,0

717

16,3

Macedonia

25 e

21

20,7

224

-6,3

Norway

53

56

-6,2

581

9,4

Serbia

154

180

-14,6

1 772

-3,0

Turkey 2 885 3 139 -8,1

30 857

-10,4

Other Europe 3 171 3 474 -8,7

34 150

-9,3

Spain

Byelorussia

225 e

220

2,3

2 447

9,2

Kazakhstan

340 e

142

139,4

3 735

-4,4

25 e

38

-34,2

341

-28,2

Russia

5 620 e

5 786

-2,9

65 572

-0,6

Ukraine

1 325

1 658

-20,1

19 288

0,4

Uzbekistan 45 e 52 -13,5

575

-3,8

C.I.S. (6) 7 580 7 896 -4,0

91 958

-0,5

Canada

Moldova

985

1 058

-6,9

11 822

-5,1

Cuba

20 e

22

-10,9

205

0,6

El Salvador

10 e

9

7,9

94

3,5

Guatemala

25 e

27

-5,7

278

1,3

Brazil

Peru Uruguay

370 e

1 538

456

Luxembourg

Slovenia

1 420

2 604

38 062

-8,3

674

-25,8

6 545

-8,3

48

38,0

543

59,1

South Africa 385 528 -27,1

5 399

-8,6

Africa 951 1 250 -23,9

12 487

-6,7

Iran

Egypt Libya

500 e 66

2 130 e

2 187

-2,6

23 648

5,3

Qatar

174

176

-1,0

2 372

0,0

Saudi Arabia (1)

399

435

-8,3

4 683

-1,9

298

-3,2

3 030

2,5

Middle East 2 992 3 096 -3,4

33 733

3,6

UAE 289 China

80 287

77 213

4,0 904 177

7,0

India

8 934

9 192

-2,8 101 954

2,0

Japan

7 743

8 659

-10,6

91 527

-4,5

South Korea

5 895

5 923

-0,5

66 032

-0,4

255 e

321

-20,6

3 038

-31,5

1 670 e

1 961

-14,8

20 325

-4,1

355 e

485

-26,9

3 926

-34,2

Vietnam 1 607 1 295 24,0

18 606

46,3

Pakistan Taiwan, China Thailand

Asia 106 745 105 049 1,6 1 209 584

5,1

Australia

448

420

6,6

5 044

-3,7

New Zealand 59 54 10,0

610

2,7

5 654

-3,1

Oceania 508 474

7,0

Total 64 countries (2) 147 791 149 356 -1,0 1 684 194

2,7

(1) - HADEED only. (2) - the 64 countries included in this table accounted for approximately 99% of total world crude steel production in 2018. e - estimated

www.skillings.net | 45

GLOBAL Mining Act came into effect. Rio Grande Resources bought the mine from Chevron Resources in 1991.

Company to close down inactive New Mexico uranium mine GRANTS, N.M. (AP) — A Texas-based firm won't resume operations at an inactive uranium mine and instead intends to start an estimated 16 months of closure activity to reclaim the site in western New Mexico, officials said. State officials on Friday confirmed Hobson, Texas-based Rio Grande Resource Corp. provided official notice in early December of its plan to shut the Mount Taylor Mine near Grants, the Gallup Independent reported.

B

ill Brancard, general counsel of the State Energy, Minerals and Natural Resources Department, said company officials previously told state officials that the current price of uranium meant that Rio Grande couldn't justify expected capital spending to resume mining.

Since 1999, the mine and its 286-acre (1-square-kilometer) site have been on standby; however, a permit revision approved by the state in 2017 allowed it to go active again. The permit revision required the company to inform the Minerals and Mining Division of the department 30 days prior to doing any closeout or reclamation activities at the site.

A plan filed with the state shows how the company will reclaim the site. Grants Mayor Martin "Modey" Hicks worked at the Mount Taylor site said nine people

were laid off on Monday. He referred to the closing as "a death blow to Grants and Milan." Environmental groups are against the state's previous decision to allow uranium to be extracted again from the mine, and environmental activists are excited about the closing announcement. Staff Attorney Eric Jantz of the New Mexico Environmental Law Center stated that the mine wasn't "viable economically or sustainable environmentally." "We're expecting a thorough reclamation of this mine that people have been living beside for so many decades," Jantz said.

Laura Watchempino, a member of the Multicultural Alliance and the Laguna-Acoma Coalition for a Safe Environment, said that the closure is "heartening news for this very sacred and distinctive landscape."

The mine operated from 1980 to 1982 and from 1985 to 1990, until the New Mexico

46 | SKILLINGS MINING REVIEW February 2020

Grants was once called the world's uranium capital. Millions of tons of uranium were mined from the area that includes Navajo Nation, which is still reeling from the decades that the federal government allowed mining on and around its reservation.

Between the late 1940s and the mid1980s, approximately 4 million tons (3.6 million metric tons) of uranium were extracted from mines on the reservation.

At that time, uranium was mined to produce nuclear weapons for the Cold War and World War II. The ore was removed through conventional underground mining, a process that allowed uranium to seep into the land and water in the surrounding region.

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