September Newsletter – 12.09.2022

  • China’s Yankuang terminates Yancoal Australia takeover talks
  • Saudi Arabia awards Moxico Resources and Ajlan & Bros Khnaighuiyah mining licence- ministry
  • USA: Biden administration opposes mining
  • Victoria not surprised by more Eagle gold
  • EFCC arrests Chinese over alleged illegal mining
  • Cornish Lithium secures government funding for demonstration plant
  • China plans more moon missions after finding new lunar mineral

China’s Yankuang terminates Yancoal Australia takeover talks

Yancoal Australia owns coal mines in New South Wales, Queensland, and Western Australia.

Yancoal is engaged in producing a mix of premium thermal, semi-soft coking and PCI coals

China’s Yankuang Energy has ended discussions for the potential acquisition of remaining shares in its majority-owned unit Yancoal Australia, citing ‘recent market conditions’.

In May 2022, Yankuang’s $1.8bn bid to purchase the minority stake in the Australian coal firm was rejected.

The Chinese firm had offered a price of $3.6 per share in convertible bonds to acquire 498.2 million Yancoal Australia shares that it previously didn’t own, representing a 37.74% stake.

Following the rejection, Yankuang, which currently holds a 62.26% stake in Yancoal Australia, said it was open to negotiations.

In a filing with the Hong Kong Exchanges and Clearing, Yankuang Energy said: “Yankuang Energy reserves the right to make future acquisitions of Yancoal Shares subject to and in accordance with the Takeovers Code and other relevant regulatory requirements.

Saudi Arabia awards Moxico Resources and Ajlan & Bros Khnaighuiyah mining licence- ministry

DUBAI, Sept 7 (Reuters) – The Moxico Resources PLC and Ajlan & Bros Mining Company consortium won the licence for exploration of Saudi Arabia’s Khnaighuiyah mines, where zinc and copper deposits are estimated around 26 million tonnes, the kingdom’s Ministry of Industry and Mineral Resources said on Wednesday.

The ministry awarded the licence for 255.6 million riyals ($68 million) after a four-day electronic auction.

USA: Biden administration opposes mining

  • The White House published a position paper on the environmental impact of mining.
  • Accordingly, one may wish to more accurately record future impacts as one sees national climate targets at risk.
  • If mining cannot be made more efficient, you can ask for a ban.

The US is not fundamentally opposed to cryptocurrencies or stablecoins. Mining, on the other hand, appears to be an exception because the environmental impact is unacceptable to the White House. President Biden had already introduced a similar decree in March. The White House is now offering a comprehensive report on how the issue will be dealt with in the future.

Accordingly, one wants to test whether mining can be made environmentally friendly in a sustainable manner. If deficiencies are discovered in this area, the report indicates that a ban may well result. This makes it clear that the US government is not explicitly against bitcoin, but essentially demands that the industry around it change.

Meanwhile, it is becoming clear that criticism of bitcoin will be bullish. Because the mining industry is global and does not follow uniform standards regarding environmental protection. In this context, access to cheap electricity for miners is primarily important. It still plays a subordinate role in whether plants are stripped of green energy or whether their ecological footprint is unacceptable.

Victoria not surprised by more Eagle gold

Victoria Gold Corp. Sept. 7 reported that its 2022 drilling has cut wide sections of gold mineralization at the Eagle Deep target on the company’s Dublin Gulch property in Yukon, Canada.

Intended to be an expansion from the 2021 drilling results, this year’s program focused on key areas for the potential expansion west of the Eagle Gold deposit currently being mined by Victoria.

“Last year’s exploration drilling clearly demonstrated there is more to the Eagle deposit than was captured in the 2019 technical report,” said Victoria Gold President and CEO John McConnell. “Of particular note from the 2022 campaign, is how a small, focused drilling program delineated mineralization extensions to the Eagle deposit.”

In total, 10,342 meters of diamond drilling in 23 holes have added approximately 500 meters of mineralized strike length from the current Eagle pit boundary.

Highlights from the drilling include:

• 301 meters averaging 0.52 grams per metric ton gold from a depth of 102 meters; including 69.5 meters averaging 0.72 g/t gold from 244 meters in hole DG22-1006C.

• 215 meters averaging 0.6 g/t gold from 206.5 meters; including 51 meters averaging 0.88 g/t gold from 355.5 meters in DG22-1013C.

• 72.3 meters averaging 1.14 g/t gold from surface; including 32.7 meters averaging 2.24 g/t gold from 50.3 meters in DG22-1017C.

• 240.3 meters averaging 0.63 g/t gold from 254 meters; including 78 meters averaging 1.29 g/t gold from 284 meters in DG22-1023C.

Drilling from the last two years of Eagle exploration has continued to define Eagle-style mineralization along strike and peripheral to existing Eagle Mine gold resources. Importantly, this includes Eagle West and Eagle Extension zones near the current mining.

EFCC arrests Chinese over alleged illegal mining

The Economic Financial Crimes Commission (EFCC) has said it has arrested a Chinese for illegal mining in Ilorin, Kwara State.

Twenty-nine-year-old Gang Deng was arrested by EFCC operatives on Friday, according to a statement by the commission’s spokesperson, Wilson Uwujaren, on Saturday.

The terse statement said Mr Deng was caught “in possession of crude minerals without authority.”

“A truck load of minerals, suspected to be lepidolite, was recovered from him.

“The suspect will be charged to court as soon as investigations are concluded,” the statement said.

Mr Deng is only the last among Chinese nationals who have been arrested for illegal mining in different parts of Nigeria over the years.

In 2020, the Osun State Government announced the arrest of 27 illegal miners, 17 of whom were said to be Chinese nationals and 10 locals, including a local traditional ruler (Baale).

Cornish Lithium secures government funding for demonstration plant

Cornish Lithium, the start-up hoping to lead the development of an industry for the battery metal in Britain, has secured funding from UK’s national innovation agency to build a demonstration scale processing plant at its Trelavour hard rock lithium project.

The unspecified amount from the Innovate UK through the Automotive Transformation Fund (ATF) will help Cornish Lithium build the hydrometallurgical section of the plant, the company said.

“We are delighted to have been awarded this ATF grant as it will accelerate our progress towards the commercial production of battery grade lithium hydroxide in the UK,” CEO Jeremy Wrathall said in the statement.

The Trelavour hard rock lithium project, located in Cornwall, comprises an open pit mine of lithium enriched granite and processing facilities that will yield concentrate of lithium-bearing mica. Lithium hydroxide will then be produced from the mica concentrate at an industrial site near the mine.

According to a scoping study, also financed with help from ATF and the Advanced Propulsion Centre (APC), the Trelavour mine will produce 25 million tonnes per annum.

Operational life is pegged at 20 years, during which it would generate an average of 7,800 tonnes of lithium hydroxide a year.

Speeding up construction of the plant would allow Cornish Lithium take advantage of the European Union’s current push to rebuild its automotive supply chains around battery metals and foster the adoption of electric vehicles (EVs).

China plans more moon missions after finding new lunar mineral

China plans to launch three unmanned missions to the moon over the next 10 years, as it seeks to rival the US in the new era of space exploration.

China’s National Space Administration, its equivalent of NASA, received approval to send three orbiters to the moon as part of the Chang’e lunar program, said Liu Jizhong, an official with the China Lunar Exploration and Space Program Center, according to state-backed CCTV.

The announcement came a day after China said it discovered a new lunar mineral, via samples retrieved by its Chang’e-5 mission. Named Changesite-(Y), it was described by the state-run Xinhua news agency as a kind-of colorless transparent columnar crystal. It’s said to contain helium-3, an isotype that’s been speculated as a future energy source.

Barrick Gold advances to next stage at Japan Gold

Japan Gold (TSXV: JG) said today that Barrick Gold selected six projects to move to second phase under its Barrick Alliance Portfolio it set up with Japan Gold.

Japan Gold is a Canadian mineral exploration company focused solely on gold exploration across the three largest islands of Japan: Hokkaido, Honshu and Kyushu. The company holds a portfolio of 31 gold projects.

Japan Gold has a country-wide alliance with Barrick Gold to jointly explore, develop and mine certain gold mineral properties and mining projects. Today Japan Gold announced that Barrick has selected six projects from the Barrick Alliance portfolio to continue as Included Projects in the Second Evaluation Phase under the Strategic Alliance Agreement dated February 23, 2020.

Japan Gold is up 17% to 27 cents over the past five days.



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