French Government appeals Montagne d'Or mining renewal
Orea Mining Corp's renewal of the Montagne d'Or mining concessions is uncertain after the French Government filed an appeal on the December 24 court ruling.
The Government, citing incompatibilty with its environmental ambitions, filed an appeal with the Administrative Court of Appeal in Bordeaux on January 25.
The French Court had found in favour with the Montagne d'Or joint venture (owned 44.99% by Orea and 55.01% by Nord Gold SE), located in French Guyana, in December, and ordered the State to extend the mining concessions within six months of the judgement.
"Orea remains of the opinion that the JV is entitled to the renewal of the Montagne d'Or concessions and both Orea and the JV intend to exercise all available rights to defend themselves vigorously in the appeal," according to a statement.
"The Montagne d'Or project has been the subject to comprehensive environmental studies of high standard. Orea will update the market in due course."
Orea is developing its 45% owned Montagne d’Or Gold Deposit, which hosts NI-43-101 Proven and Probable Reserves of 2.75 million ounces gold (54.11 million tonnes @ 1.58 g/t gold).
It is stepping up its activity at the Maripa gold project in French Guyana too - recently completing 8 diamond drill holes, and four holes intersected "wide shear zones marked by quartz veining".
Last month the company reported a non-brokered private placement (the “Private Placement”) for gross proceeds of up to CAD$1 million, representing 5,882,353 units at a price of CAD$0.17 per unit, and the proceeds will be used for general working capital purposes.
French industry's output decreased by 0.8 percent in December after a 0.7-percent drop in November.
The French Government aims to cut greenhouse gas emissions by 40% by 2030 and reach carbon neutrality by 2050.
The Act of 17 August 2015 on energy transition for green growth seeks to enhance France’s energy autonomy, cut its greenhouse gas emissions and provide effective tools to all stakeholders in order to boost green growth.
Low carbon world needs $1.7trn in mining investment
According to a new report from consultancy Wood Mackenzie, mining companies need to invest nearly $1.7trn in the next 15 years to help supply enough copper, cobalt, nickel and other metals needed for the shift to a low carbon world.
Cutting carbon emissions
The United States, Britain, Japan, Canada and others raised their targets on cutting carbon emissions to halt global warming at a summit in April hosted by US President Joe Biden.
Meeting those targets will need large-scale deployment of electric vehicles, storage for power generated from renewables and electricity transmission, all of which require industrial materials, such as lightweight aluminium and metals used in batteries such as cobalt and lithium.
Wood Mackenzie analyst Julian Kettle calculated miners needed to invest about $1.7trn during the next 15 years to “deliver a two-degree pathway - where the rise in global temperatures since pre-industrial times is limited to 2°C”.
“At an industry level, there seems to be reticence around investing sufficient capital to develop future supply at the pace and scale demanded by the energy transition (ET),” he said.
Mining firms are wary of making heavy investments after their experience of the last decade when they invested in new capacity just as demand peaked, leading to a collapse in prices and revenues. They also need to please investors, who are unlikely to want to see dividends diverted to capital spending.
Rising demands of investors related environment, social and governance (ESG) issues further add to the challenge.
Australia, Canada and Western Europe carry a low ESG risk but some of the best resources are in high-risk areas, such as Democratic Republic of Congo, which sits on about half the world’s cobalt reserves according to the U.S. Geological Survey. “Given the need to meet tough decarbonisation and ESG targets, Western governments, lenders, investors and consumers will need to get comfortable operating in jurisdictions where ESG issues are more complex,” Kettle said.
Kettle said government support was needed to help miners comply with ESG issues to ensure production from high-risk areas was conducted in an acceptable way to consumers.
“Then, and only then, will the West be able to secure sufficient volumes of the raw materials needed to pursue the energy transition in the timescales envisaged.”