Mining
Bre-X Scandal: A History Timeline
Bre-X Scandal: A History Timeline
Sponsored by: BDO and BDO Natural Resources LinkedIn Group
This infographic documents the rise and fall of Bre-X.
From initial private offerings at 30 cents a share, Bre-X stock climbed to more than $250 on the open market. Near the peak of Bre-X share prices, major banks and media were on board:
The Peak
- It was touted by media and banks as the “richest gold deposit ever”
- In December 1996, Lehman Brothers Inc. strongly recommended a buy on “the gold discovery of the century.”
- Major mining companies such as Barrick Gold, Placer Dome, and Freeport-McMoRan Copper & Gold, among other top producers, fought an epic battle to get a piece of Bre-X’s Busang deposit.
- Indonesia’s Suharto regime managed to grab 40% of the deposit for Indonesian interests.
- Fidelity Investments, Invesco Funds Group, and other mutual-fund companies piled into the stock.
- J.P. Morgan bankers talked up Busang in a conference call in which Bre-X’s top geologist predicted the deposit might contain a staggering 200 million oz of gold, worth over $240 billion in 2014 prices. Morgan declined to comment.
- Egizio Bianchini, stock broker and one of Canada’s top gold analysts, said “What most people are now realizing is that Bre-X has made one of the great gold discoveries of our generation.”
The Timeline:
1989: David Walsh founded Bre-X Minerals Ltd. in 1989 as a subsidiary of Bresea Resources Ltd.
1993: Walsh followed the advice of geologist John Felderhof and bought a property in the middle of a jungle near the Busang River in Borneo, Indonesia.
1994: Initial drill results were encouraging, and the drill program was ramped up.
1994: However, it was the project manager, Michael de Guzman, who was filing gold from his wedding ring and mixing the flakes in with the crushed core samples.
De Guzman used realistic ratios of gold to rock to not set off alarm bells, and to keep project going forward.
Over the next 2.5 years, de Guzman would buy $61k of panned gold from locals to use in salting.
Independent auditors that were sent in by large institutional investors found that the panned gold had rounded edges, but de Guzman explained it was because of “volcanic pool” theory.
De Guzman, Felderhoff and Walsh sell off a small portion of their options for $100 million
1996: Bre-X hits a snag with the Indonesian government, who claimed that Bre-X was not playing by the “rules” of the country. Bre-X’s exploration permits are revoked.
1997: January fire at Busang destroys many of the sample records.
1997: After many major miners express interest in Bre-X, eventually a joint venture is reached that gives Indonesia 40% share, Bre-X 45%, and Freeport McMoRan a 15% share of interests.
1997: Freeport begins due diligence on deposit and starts to twin holes that were already drilled.
1997: Freeport reports “minor amounts of gold” in some holes, but not much else.
1997: On his way to meet the Freeport due diligence team, de Guzman mysteriously falls to his death 600 ft from a helicopter. Police rule it a suicide.
1997: Shares of Bre-X crash.
1997: Report confirms that there is no gold at Busang, and samples were tampered with.
Energy
Visualizing the Uranium Mining Industry in 3 Charts
These visuals highlight the uranium mining industry and its output, as well as the trajectory of nuclear energy from 1960 to today.

When uranium was discovered in 1789 by Martin Heinrich Klaproth, it’s likely the German chemist didn’t know how important the element would become to human life.
Used minimally in glazing and ceramics, uranium was originally mined as a byproduct of producing radium until the late 1930s. However, the discovery of nuclear fission, and the potential promise of nuclear power, changed everything.
What’s the current state of the uranium mining industry? This series of charts from Truman Du highlights production and the use of uranium using 2021 data from the World Nuclear Association (WNA) and Our World in Data.
Who are the Biggest Uranium Miners in the World?
Most of the world’s biggest uranium suppliers are based in countries with the largest uranium deposits, like Australia, Kazakhstan, and Canada.
The largest of these companies is Kazatomprom, a Kazakhstani state-owned company that produced 25% of the world’s new uranium supply in 2021.
As seen in the above chart, 94% of the roughly 48,000 tonnes of uranium mined globally in 2021 came from just 13 companies.
Rank | Company | 2021 Uranium Production (tonnes) | Percent of Total |
---|---|---|---|
1 | 🇰🇿 Kazatomprom | 11,858 | 25% |
2 | 🇫🇷 Orano | 4,541 | 9% |
3 | 🇷🇺 Uranium One | 4,514 | 9% |
4 | 🇨🇦 Cameco | 4,397 | 9% |
5 | 🇨🇳 CGN | 4,112 | 9% |
6 | 🇺🇿 Navoi Mining | 3,500 | 7% |
7 | 🇨🇳 CNNC | 3,562 | 7% |
8 | 🇷🇺 ARMZ | 2,635 | 5% |
9 | 🇦🇺 General Atomics/Quasar | 2,241 | 5% |
10 | 🇦🇺 BHP | 1,922 | 4% |
11 | 🇬🇧 Energy Asia | 900 | 2% |
12 | 🇳🇪 Sopamin | 809 | 2% |
13 | 🇺🇦 VostGok | 455 | 1% |
14 | Other | 2,886 | 6% |
Total | 48,332 | 100% |
France’s Orano, another state-owned company, was the world’s second largest producer of uranium at 4,541 tonnes.
Companies rounding out the top five all had similar uranium production numbers to Orano, each contributing around 9% of the global total. Those include Uranium One from Russia, Cameco from Canada, and CGN in China.
Where are the Largest Uranium Mines Found?
The majority of uranium deposits around the world are found in 16 countries with Australia, Kazakhstan, and Canada accounting for for nearly 40% of recoverable uranium reserves.
But having large reserves doesn’t necessarily translate to uranium production numbers. For example, though Australia has the biggest single deposit of uranium (Olympic Dam) and the largest reserves overall, the country ranks fourth in uranium supplied, coming in at 9%.
Here are the top 10 uranium mines in the world, accounting for 53% of the world’s supply.
Of the largest mines in the world, four are found in Kazakhstan. Altogether, uranium mined in Kazakhstan accounted for 45% of the world’s uranium supply in 2021.
Uranium Mine | Country | Main Owner | 2021 Production |
---|---|---|---|
Cigar Lake | 🇨🇦 Canada | Cameco/Orano | 4,693t |
Inkai 1-3 | 🇰🇿 Kazakhstan | Kazaktomprom/Cameco | 3,449t |
Husab | 🇳🇦 Namibia | Swakop Uranium (CGN) | 3,309t |
Karatau (Budenovskoye 2) | 🇰🇿 Kazakhstan | Uranium One/Kazatomprom | 2,561t |
Rössing | 🇳🇦 Namibia | CNNC | 2,444t |
Four Mile | 🇦🇺 Australia | Quasar | 2,241t |
SOMAIR | 🇳🇪 Niger | Orano | 1,996t |
Olympic Dam | 🇦🇺 Australia | BHP Billiton | 1,922t |
Central Mynkuduk | 🇰🇿 Kazakhstan | Ortalyk | 1,579t |
Kharasan 1 | 🇰🇿 Kazakhstan | Kazatomprom/Uranium One | 1,579t |
Namibia, which has two of the five largest uranium mines in operation, is the second largest supplier of uranium by country, at 12%, followed by Canada at 10%.
Interestingly, the owners of these mines are not necessarily local. For example, France’s Orano operates mines in Canada and Niger. Russia’s Uranium One operates mines in Kazakhstan, the U.S., and Tanzania. China’s CGN owns mines in Namibia.
And despite the African continent holding a sizable amount of uranium reserves, no African company placed in the top 10 biggest companies by production. Sopamin from Niger was the highest ranked at #12 with 809 tonnes mined.
Uranium Mining and Nuclear Energy
Uranium mining has changed drastically since the first few nuclear power plants came online in the 1950s.
For 30 years, uranium production grew steadily due to both increasing demand for nuclear energy and expanding nuclear arsenals, eventually peaking at 69,692 tonnes mined in 1980 at the height of the Cold War.
Nuclear energy production (measured in terawatt-hours) also rose consistently until the 21st century, peaking in 2001 when it contributed nearly 7% to the world’s energy supply. But in the years following, it started to drop and flatline.
By 2021, nuclear energy had fallen to 4.3% of global energy production. Several nuclear accidents—Chernobyl, Three Mile Island, and Fukushima—contributed to turning sentiment against nuclear energy.
Year | Nuclear Energy Production | % of Total Energy |
---|---|---|
1965 | 72 TWh | 0.2% |
1966 | 98 TWh | 0.2% |
1967 | 116 TWh | 0.2% |
1968 | 148 TWh | 0.3% |
1969 | 175 TWh | 0.3% |
1970 | 224 TWh | 0.4% |
1971 | 311 TWh | 0.5% |
1972 | 432 TWh | 0.7% |
1973 | 579 TWh | 0.9% |
1974 | 756 TWh | 1.1% |
1975 | 1,049 TWh | 1.6% |
1976 | 1,228 TWh | 1.7% |
1977 | 1,528 TWh | 2.1% |
1978 | 1,776 TWh | 2.3% |
1979 | 1,847 TWh | 2.4% |
1980 | 2,020 TWh | 2.6% |
1981 | 2,386 TWh | 3.1% |
1982 | 2,588 TWh | 3.4% |
1983 | 2,933 TWh | 3.7% |
1984 | 3,560 TWh | 4.3% |
1985 | 4,225 TWh | 5% |
1986 | 4,525 TWh | 5.3% |
1987 | 4,922 TWh | 5.5% |
1988 | 5,366 TWh | 5.8% |
1989 | 5,519 TWh | 5.8% |
1990 | 5,676 TWh | 5.9% |
1991 | 5,948 TWh | 6.2% |
1992 | 5,993 TWh | 6.2% |
1993 | 6,199 TWh | 6.4% |
1994 | 6,316 TWh | 6.4% |
1995 | 6,590 TWh | 6.5% |
1996 | 6,829 TWh | 6.6% |
1997 | 6,782 TWh | 6.5% |
1998 | 6,899 TWh | 6.5% |
1999 | 7,162 TWh | 6.7% |
2000 | 7,323 TWh | 6.6% |
2001 | 7,481 TWh | 6.7% |
2002 | 7,552 TWh | 6.6% |
2003 | 7,351 TWh | 6.2% |
2004 | 7,636 TWh | 6.2% |
2005 | 7,608 TWh | 6% |
2006 | 7,654 TWh | 5.8% |
2007 | 7,452 TWh | 5.5% |
2008 | 7,382 TWh | 5.4% |
2009 | 7,233 TWh | 5.4% |
2010 | 7,374 TWh | 5.2% |
2011 | 7,022 TWh | 4.9% |
2012 | 6,501 TWh | 4.4% |
2013 | 6,513 TWh | 4.4% |
2014 | 6,607 TWh | 4.4% |
2015 | 6,656 TWh | 4.4% |
2016 | 6,715 TWh | 4.3% |
2017 | 6,735 TWh | 4.3% |
2018 | 6,856 TWh | 4.2% |
2019 | 7,073 TWh | 4.3% |
2020 | 6,789 TWh | 4.3% |
2021 | 7,031 TWh | 4.3% |
More recently, a return to nuclear energy has gained some support as countries push for transitions to cleaner energy, since nuclear power generates no direct carbon emissions.
What’s Next for Nuclear Energy?
Nuclear remains one of the least harmful sources of energy, and some countries are pursuing advancements in nuclear tech to fight climate change.
Small, modular nuclear reactors are one of the current proposed solutions to both bring down costs and reduce construction time of nuclear power plants. The benefits include smaller capital investments and location flexibility by trading off energy generation capacity.
With countries having to deal with aging nuclear reactors and climate change at the same time, replacements need to be considered. Will they come in the form of new nuclear power and uranium mining, or alternative sources of energy?
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