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Welcome back to your weekly mining news recap, where we catch you up on some of the news you may have missed. This week’s headlines include Eldorado acquiring QMX Gold in a deal worth $132 million, Alberta's government terminating coal leases in the Rocky Mountains and Geoscience BC releases map generated from database of NI 43-101 reports.

One of United States president Joe Biden's first executive orders was to revoke the permit of the long-delayed US$8 billion Keystone XL pipeline project that would have transported oil from Western Canada to the U.S. Midwest and Gulf Coast, as reported by Politico. Prime Minister Justin Trudeau said that the government welcomed Biden’s commitment to fighting climate change, but was disappointed in the president’s decision nonetheless. 

The Association for Mineral Exploration’s Roundup conference went virtual this year. A keynote address by mining financier Robert Friedland opened the event and was followed by announcements from the federal government on investment projects. Friedland predicted a brighter future for miners as demand for metals are expected to grow to support a greener economic recovery plan after the COVID-19 pandemic, while the Canadian government focused on funding support for more Indigenous engagement and participation in the mining industry in the future.

Geoscience BC also shared some news at Roundup about the projects and research the organization has been working on. The announcements included the launch of a searchable National Instrument 43-101 database; the digitalization of the Smithers Exploration Group’s Rock Room collection; a research project on a modified regional geochemical survey sampling strategy; and the release of its research summary papers of 2020.

A deadline approaches for mine operators. As part of a major update under Canada’s Metal and Diamond Mining Effluent Regulations, concentration levels of un-ionized ammonia are going to be regulated at over 100 mines starting June 2021. Mine sites that discharge un-ionized ammonia will have to comply with a monthly mean concentration limit of 0.5 mg/L. The new regulations will also impose lower limits on arsenic, cyanide, and lead. Mines that fail to meet the new standards, based on weekly tests, will be fined, or given ministerial orders and court actions.

Alberta’s energy minister announced the termination of 11 recently issued coals leases and paused future lease sales for open-pit mining on the Rocky Mountains, as reported by CBC. The decision was made after growing opposition from the public to coal mining expansion plans in the area. The province’s energy minister Sonya Savage said the decision won’t impact projects currently under regulatory review.

Chinese mine rescuers are drilling a 711-millimetre-diameter shaft to save miners trapped underground after an explosion at the Hushan gold mine near Yantai, China, as reported by Al Jazeera. A total of 22 workers were trapped underground after an explosion on Jan. 10, but only a group of 10 known survivors are in communication with the rescue team and are receiving food and medical supplies. It took about 30-hours before the accident was first reported to authorities, leading to the local Communist Party secretary and mayor being fired over the delay. An official investigation to determine the cause of the explosion is under way.

Eldorado Gold agreed to buy Quebec-focused explorer QMX Gold for $132 million, as reported by Mining.com. Eldorado currently owns close to 17 per cent of QMX's shares. The transaction will increase the Eldorado’s landholdings in the Abitibi Greenstone belt by approximately 550 per cent, allowing the company to pursue exploration projects adjacent to its Lamaque gold mine.

Vale has failed to reach a settlement agreement with the Brazilian state of Minas Gerais over the deadly Brumadinho dam disaster that killed 270 people in Jan. 2019, as reported by Mining.com. Negotiations have been put on pause since there is no consensus over the amount of compensation. Back in November, the government rejected a proposed settlement from the miner of approximately 21 billion reais ($4.88 billion). The government is now requesting R$54.6 billion ($12.7 billion) in compensation instead.

Anaconda Mining has its eyes on becoming a bigger producer in the gold mining game, with the help of its Argyle open pit mine in Baie Verte, Newfoundland. The mine is expected to last for only 22 months, but the company sees it as an opportunity to generate positive cash flow which will help finance growth plans involving more exploration, development and mergers and acquisitions in the future. 

Endeavour Mining announced the sale of its non-core Agbaou mine in Côte d’Ivoire to Allied Gold Corp for US$80 million, plus a net smelter return royalty. Under the terms of the agreement, Endeavor will receive US$20 million in cash and US$40 million in Allied Gold shares, with the option to sell back the shares at issue price by the end of Dec. 2022. A contingent payment valued at a total of US$20 million for the year is also applicable when gold prices exceed $1,900 per ounce. The transaction is expected to be completed by March 1, 2021.

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