Posted: 26 Jun 2014 08:00 AM PDT

Brazil revokes Canadian Belo Sun’s license to gold mine in Amazon

Ruling says Belo Sun Mining Corp. has failed to study the impact on Amazon communities.

A Brazilian federal court has revoked Canadian miner Belo Sun Mining's (TSX:BSX) license for the Volta Grande project, which would have become the country's largest gold mine, in the Amazonic state of Para.

The ruling, which established the miner failed to assess the impact on local indigenous communities, is a major blow to Belo Sun's ambitions, Amazon Watch's Brazil Program Consultant Christian Poirier told MINING.com.

He added the court decision sets a considerably higher legal standard for environmental licenses, but—since it is appealable— could be easily overturned.

In a brief statement, the Toronto-based company only said it had been asked to complete an indigenous study in accordance with the reference terms of FUNAI, the Brazilian indigenous authority.

It added the company expects the study will take five months and that it anticipates receiving the authorization from FUNAI to access the indigenous lands shortly.

READ ALSO: Brazil a step closer to fully mining the Amazon

The $750 million Volta Grande, or Big Ben, open-pit project is on the Xingu River, a tributary of the Amazon. It is expected to produce more than 300,000 ounces per annum over its 10-year life.

Opponents of the project, suspended since November, fear its vicinity to the controversial Belo Monte dam complex —which is designed to become the world's third largest dam— "may lead to devastating and irreversible consequences … for the quality of life and cultural heritage of indigenous peoples and their territories."

Volta Grande is supposed to begin operating in 2016.

Glencore appoints Canadian as its first ever female director

Posted: 26 Jun 2014 07:00 AM PDT

Commodity trader and mining giant Glencore (LON:GLEN) has appointed Canadian Patrice Merrin as its first female board director, ending its status as being the only company with no women sitting at the top table.

Merrin, 65, is a veteran to the industry. She worked at Canadian miner Sherritt for a decade before becoming chief executive of her country's largest thermal coal producer Luscar.

Glencore appoints Canadian as its first female director

Patricia Merrin (Image from Linkedin)

She is also a director of precious metals mining company Stillwater and has been proposed as director of MFC Industrial and Cliff Natural Resources.

Business leaders welcome the move, qualifying it of a "breakthrough" of "enormous significance."

UK Business Secretary Vince Cable said today was a historic day for the FTSE and for the reforms he has pursued to encourage more diversity in the talent running the Britain's biggest companies, Reuters reports.

Beyond the fact that Glencore will no longer be seen as a bastion of corporate masculinity, many think the Swiss miner's matters for several additional reasons. A recent study by Credit Suisse shows that companies with at least some women representation on the board outperformed those with no females in terms of share price performance. Fortune 500 companies with the highest rates of women board directors achieved considerably higher financial performance, on average, than those with the lowest representation, according to Catalyst's most recent report.

Merrin's appointment comes a few weeks after Glencore ended a long search for a chairman by picking Tony Hayward, and completes an overhaul of its board.

Top image by iofoto

Main opponent of Newmont's gold project in Peru in prison

Posted: 26 Jun 2014 04:13 AM PDT

Protest at Conga mine, October 2013.

Peru's Cajamarca region governor Gregorio Santos, who has led opposition to Newmont Mining's (NYSE:NEM), (TSX:NMC) $5 billion Conga copper and gold project, was ordered to jail for 14 months amid a corruption probe.

A federal judge authorized the detention Wednesday while prosecutors prepare their case, state news agency Andina reported (in Spanish).

Santos is suspected of having received bribes from companies in exchange for awarding 11 local public work contracts. If found guilty, he won't be allowed to run for re-election in October, which would likely unlock mining investment in the region, such as the stalled Conga project.

The governor's press advisor, Segundo Matta-Colunche, told Associated Press (in Spanish) that ever since Santos spoke up against Newmont's proposed gold mine in 2011, the government began a campaign against him. This included 38 prosecution cases for various offenses, of which 35 have already been withdrawn for lack of evidence.

Gregorio Santos ordered to jail for 14 months amid a corruption probe.

The Conga project, located roughly 3,700 meters above sea level, was approved in 2010 by then-president Alan Garcia's government, and the current administration has continued to support it.

Originally scheduled to begin production next year, the mine will be developed in partnership with locals Buenaventura and Minera Yanacocha.

Conga was basically designed as an extension of Peru's Buenaventura's nearby Yanacocha mine. That is Latin America's largest gold mine and it is approaching the end of its life.

Newmont decided to halt Conga's construction work in November 2011 after violent protests in the northern Peru region forced the government to declare a state of emergency.

Social pressure continued during 2012, with Peru's government hiring international consultants to report on report on the viability of the water strategy proposed by the company and, eventually, ordering order a suspension of all work at the site, except for the construction of water reservoirs.

The project has the potential to generate up to 350,000 ounces of gold and 120 million pounds of copper a year, during its 19-year life. If it goes ahead it'd be the largest-ever single private investment in the South American country.

Brazil revokes Canadian Belo Sun’s license to gold mine in Amazon

Brazil revokes Canadian Belo Sun’s license to gold mine in Amazon

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