May 17, 2020

World stock markets take beating amid China’s market meltdown

stock market
Anglo American
2 min
World stock markets take beating amid China’s market meltdown
World stock markets took a beating Monday as Chinas main index fell 8.5 percent--the largest since February 2007 -- driven by growing fears that Chinas...

World stock markets took a beating Monday as China’s main index fell 8.5 percent--the largest since February 2007 -- driven by growing fears that China’s economy is slowing more than many investors had anticipated.

"Anybody with a pulse was nervous when the market opened. We're still going to see significant price swings both up and down before the day ends today," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

"The only thing that's certain is the volatility is going to continue in the short term, given the magnitude of the moves that we've already had in the last four days."

• Related content: How-To: Invest in Mining Stocks

The Dow Jones nosedived minutes after the opening bell, falling 1,089 points--the single largest drop since October 2008, when the financial crisis was in full effect.  

According to Bloomberg, the Dow’s closing point loss for the day was 586.53 points, or 3.56 percent, to 15,873.22. It’s the eighth worse one-day point loss in history and worst daily point decline since August 8, 2011.

The drop in China’s equities essentially wipes out all their gains for 2015 and analysts and media were quick to label today’s market free fall as the Chinese “Black Monday.”

• Related content: [OPINION] 3 stocks to watch in silver mining

For the mining industry, few stocks were immune to the collapse. The biggest fallers were Glencore -- falling eight percent -- and BHP Billiton and Anglo American, both losing more than seven percent of their value.

Stocks closed down more than eight percent in Shanghai and more than four percent in Tokyo. Markets in London, Paris and Frankfurt were all down more than four percent. London’s FTSE 100 (FTSE), ended down 4.7 percent for its tenth straight decline – its worst run since 2003.

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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.

Global energy transition is boosting the market for nickel

The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.

“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.

“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

Vale continues drilling program at Manitoba

Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.

“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.

“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”

The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history.  Mining of the Thompson orebody began in 1961.

“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.

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