Mining Engineering’s Weekly Rundown: Episode 37

First, Barrick Gold’s North America spin-off may depend on Newmont’s approval. Documents obtained by Reuters show that Barrick’s plan to carve out its North American assets hinges on cooperation from joint venture partner Newmont. In years past,  Barrick had hoped to buy Newmont’s minority stake in the Nevada mines. Newmont has the first right of refusal if Barrick tries to sell its stake in the company’s main North American asset, Nevada Gold Mines (NGM). Barrick owns 61.5 percent in the mine and Newmont 38.5 percent. Barrick’s proposed initial public offering of North American assets includes NGM, Pueblo Viejo mine and the underdeveloped Fourmile mine. Under the agreement, any sale or restructuring requires the other party’s consent. Barrick’s North American assets are valued around $42 billion and are expected to form the core of a potential IPO as gold hits record highs. 

Next, the Trump administration is taking a 10 percent stake in USA Rare Earth in a $1.6 billion deal. Sources familiar with the agreement say the government will receive more than 16 million shares plus additional warrants to accelerate mining and magnet manufacturing within U.S. borders. USA Rare Earth, based in Oklahoma, is developing a rare earths mine in Sierra Blanca, Texas, alongside Texas Mineral Resources, and plans to open a magnet facility later this year. The move shows the administration’s growing intervention in the mining sector, following similar equity moves in MP Materials, Lithium Americas, and Trilogy Metals. 

Finally, the Trump administration says it will restructure or eliminate nearly $84 billion in clean energy loans issued under the previous administration. The Department of Energy’s Office of Energy Dominance Financing, formerly the Loan Programs Office, said the changes follow a review of more than $100 billion in commitments. Nearly $30 billion in obligations have already been canceled, including a $4.9 billion loan for the Grain Belt Express transmission line meant to carry renewable power from the Midwest to the East Coast. Another $9.5 billion in wind and solar loans have been scrapped or replaced with new funding for natural gas and nuclear facilities. The revised lending priorities now center on fossil fuels, nuclear power and critical minerals. With roughly $290 billion in total lending capacity, the EDF has become the world’s largest energy lender.

For full details on these stories and more, visit our online magazine at me.smenet.org