El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Australia’s Beadell Resources Ltd. (BDR) claims that with low taxes and labour costs, its northern Brazil mine will produce gold at 32% less cost than the global average.
Beadell predicts that its Tucano mine in the state of Amapa will become Brazil’s third largest gold producer by the end of the year. The low costs are likely to attract bids from big market players.
AnglGold Ashanti Ltd. (ANG) and Kinross Gold Corp. (K), two majors with current operations in Brazil, are rumoured to be interested.
Anglo had nearly $900 million in cash as of December of last year and made it clear that smaller mines with large growth prospects were of particular allure.
And Kinross, with nearly $2 billion in cash, has declined to comment on the speculation surrounding Beadell but they have been active over the past five years, having spent $9.4 billion on 13 acquisitions.
Beadell’s stock jumped up 19% on March 8th and another 8% today in Sydney trading.
Sources: Soraya Permatasari & Angus Whitley of Bloomberg News; Mining Journal Online
Photo credit: YouTube screengrab
