Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Last summer, Trevali Mining applied for relief under the Companies’ Creditors Arrangement Act (CCAA) and was granted the initial order in August. The next month it delisted its shares from the Toronto Stock Exchange. And this week, a receiver was appointed for the company’s assets at its Caribou lead-zinc-silver mine in New Brunswick.
The Supreme Court of British Columbia named FTI Consulting Canada as receiver, without security, of all the assets, undertakings and property of Trevali Mining (New Brunswick). The court order covers all proceeds thereof, other than any real property, mineral claims, mining leases, or real property leases owned or held by Trevali.
The Caribou mine, 50 km west of Bathurst, NB, was wholly owned by Trevali. The underground operation provided 3,000 t/d of ore to the processing plant, which used sulphide flotation recovery. There were also a tailings management facility and laboratories on the property. At the end of 2021, the proven and probable reserves stood at 4.4 million tonnes grading 5.85% zinc, 2.17% lead and 65.60 g/t silver.
The volcanogenic massive sulphide deposit was originally discovered in 1955. Trevali, which restarted production in February 2021, was only one of several owners since 2006.
Trevali elected to close its 90%-owned Perkoa zinc-lead-silver mine in Burkina Faso following flash flooding that resulted in the deaths of eight miners in April 2022.
Trevali is currently mining at the 90%-owned Rosh Pina zinc-lead-silver mine in Namibia. The company has plans to expand mill throughput to 1.3 million tonnes of ore annually from 700,000 tonnes. A paste fill plant and a new ramp to the WF3 deposit are planned. Trevali says it was pursuing financing to move forward as recently as June 2022.
Read more: Trevali Mining liquidates Burkina Faso assets after deadly flood
