TORONTO, Jan 6 (Reuters) – Sagging demand for non-precious
metals – a trend that’s beyond the direct control of Canada’s
embattled gold producers – is shaping up as their best hope for
recovery in 2013 after a year that battered their share prices.
The key to restoring investor faith in the gold miners is
reining in runaway cost inflation, experts say. To that end, a
weakening of prices for base metals, coal and iron ore comes at
just the right time for big bullion producers, who can no longer
use surging gold prices to justify unrestrained spending.
By Julie Gordon
(Reuters) – Market regulators temporarily suspended the trading of shares of Southridge Enterprises Inc two days after the exploration company said it was forming a partnership with Kinross Gold Corp, which the Canadian gold miner has denied.
The U.S. Securities and Exchange Commission said in a statement on Friday that it had halted trading through January 11, 2013, due to “questions regarding the accuracy of statements made by Southridge … concerning, among other things, the company’s business operations and arrangements, including certain claims regarding a joint partnership.”
TORONTO/LONDON, Dec 17 (Reuters) – Shares of Inmet Mining
Corp jumped Monday after First Quantum Minerals Ltd
sweetened its offer for its Canadian rival to C$5.1 billion
($5.2 billion) and said it was taking the deal directly to
shareholders in a bid to control one of the world’s largest
untapped copper deposits.
The C$72-a-share cash and paper offer, announced by First
Quantum on Sunday, tops its earlier bids of C$62.50 and C$70,
both rejected by Inmet’s board.
TORONTO, Dec 7 (Reuters) – Harry Winston Diamond Corp
has no plans to sell or spin off its watch and jewelry
division from its mining division in the next year, though the
retail arm will eventually stand on its own, the company’s chief
executive said on Friday.
“In the fullness of time, it will certainly either become
separated or be sold to someone that can do better with it than
we would be able to,” Chief Executive Robert Gannicott said in a
conference call with investors.
Dec 5 (Reuters) – Freeport-McMoRan Copper & Gold Inc’s
decision to diversify into energy highlights the dearth
of attractive options available in copper, its main business,
but few competitors are likely to follow its lead into
Unlike many miners, Freeport – the world’s largest listed
copper producer – has roots in oil and gas. That made it easier
for the U.S.-based miner to take its leap of faith in search of
Dec 5 (Reuters) – Freeport-McMoRan Copper & Gold Inc
said Wednesday it would buy Plains Exploration & Production Co
and McMoRan Exploration Co for a total of $9
billion in cash and stock in a major expansion into the energy
The deal will also leave Freeport with $20 billion in debt,
which scared some investors and sent Freeport shares sliding 13
percent in morning trade. The cost of protecting its debt
against default also rose sharply.
TORONTO, Dec 3 (Reuters) – Canada, hoping to spur economic
development of its far north, has approved the construction of a
massive iron ore mine in the Arctic territory of Nunavut that
could help top steelmaker ArcelorMittal reduce its
dependence on outside suppliers.
The open-pit Mary River project on remote Baffin Island was
approved on Monday by the Minister of Aboriginal Affairs and
Northern Development, based on the recommendation of the Nunavut
Impact Review Board.
Dec 3 (Reuters) – Newmont Mining Corp on Monday said
Chief Executive Richard O’Brien will step down, making it the
third major gold miner this year to replace its top manager as
the industry seeks to boost dwindling production and control
O’Brien, 58, will step down on March 1 as head of the
world’s No. 2 gold producer and also will retire from the board.
Chief Operating Officer and President Gary Goldberg will take
Dec 3 (Reuters) – Newmont Mining Corp said on Monday
Chief Executive Richard O’Brien will step down on March 1,
making Newmont the third major gold miner to announce the
departure of its CEO this year.
The world’s No.2 gold producer said its current chief
operating officer and president, Gary Goldberg, will take over
the reins from O’Brien, who is retiring. O’Brien will also leave
his position on the Newmont board.
TORONTO, Dec 2 (Reuters) – “Strike while the iron is hot,”
the old saying goes, and a legion of iron ore miners setting up
in Canada’s remote Labrador Trough want to do just that. But,
for now, they have to wait.
Iron ore, the main component of steel, has turned ice cold
in recent months, with the benchmark price
plunging to $86.70 a tonne in September from $149.40 in April.
It has since recovered to about $116 a tonne.