Mongolia dissatisfied with Oyu Tolgoi costs; BHP invests in steelmaking startup

TOP NEWS IN METALS & MINING

* The Mongolian government is dissatisfied with the results of the definitive estimate for the Oyu Tolgoi copper-gold mine of Oyu Tolgoi LLC, a 66%-owned subsidiary of Rio Tinto unit Turquoise Hill Resources Ltd., noting that a significant increase in the development costs of the project has eroded its potential economic benefits.

* BHP Group invested in startup company Boston Metal, which is seeking to develop less-polluting methods of manufacturing steel by replacing coking coal with electricity to reduce emissions, Bloomberg News reported.

➤ Surge in copper, lithium prices bodes well for improved 2021 commodities outlook

Analysts have observed an eight-year high for copper as lithium enjoys its first sustained price increase in three years amid expectations for strengthening commodities and a more positive 2021 on the macroeconomic front.

➤ US steel sector asks Biden to preserve Trump tariffs on imports, citing COVID-19

The U.S. steel industry said its recovery has been hindered by the coronavirus pandemic and asked President-elect Joe Biden to preserve tariffs on steel imports imposed by President Donald Trump.

➤ Agnico Eagle's Hope Bay mine deal tops metals transactions in week ended Jan. 8

Among the top five mergers and acquisitions in the metals and mining industry for the week ended Jan. 8, a gold deal involving Arctic assets emerged as the highest-valued transaction, according to a screener on Market Intelligence's online platform.

BASE METALS

* Hudbay Minerals Inc. secured the final mining permit for the development and operation of its Pampacancha copper deposit in Peru following the completion of additional consultation between the Peruvian government and the local community of Chilloroya.

* Canada Nickel Company Inc. entered into a nonbinding memorandum of understanding to potentially process output from its Crawford nickel-cobalt project at Glencore PLC unit Glencore Canada Corp.'s Kidd Creek concentrator and metallurgical site, both in Ontario.

* Nova Royalty Corp. agreed to acquire a further 0.18% net smelter royalty on First Quantum Minerals Ltd.'s Taca Taca copper-gold-molybdenum project in Argentina for US$13 million in common shares and US$7 million in cash.

PRECIOUS METALS

* Lundin Gold Inc. produced 96,830 ounces of gold from its Fruta del Norte mine in Ecuador during the fourth quarter of 2020, bringing total output for the second half of the year to 191,080 ounces, exceeding the upper end of its guidance of 170,000 ounces.

* Endeavour Mining Corp. will pay its first dividend of 37 U.S. cents per share, totaling US$60 million, on Feb. 5.

* Tharisa PLC's 6E platinum group metals production for its fiscal first quarter rose 14.2% yearly to 39,300 ounces, while chrome concentrate production grew 8.7% to 372,300 tonnes.

* Ariana Resources PLC's full-year 2020 gold production at the Kiziltepe joint venture in Turkey totaled 18,645 ounces, exceeding its production guidance by 3.5%.

* Based on preliminary results, Dundee Precious Metals Inc.'s full-year 2020 consolidated payable gold production totaled 270,900 ounces, exceeding the upper end of its guidance of 267,000 ounces.

* A gold mine explosion in Shandong in eastern China trapped 22 workers underground, state-owned Xinhua News reported. The Hushan mine is owned by Shandong Wucailong Investment Co. Ltd., a subsidiary of an associate to Zhaojin Mining Industry Co. Ltd.

* Zimbabwe's gold sales to its sole buyer and exporter of bullion, Fidelity Printers and Refiners, declined 31% to 19 tonnes in 2020, Reuters reported. Fidelity Printers and Refiners' shortage of hard cash delayed payments for most of last year, forcing many small-scale miners to sell gold to illegal buyers.

BULK COMMODITIES

* Western Australia will review the environment licenses granted to BHP's Mount Whaleback and Eastern Ridge iron ore mines due to concerns over rising levels of PM10 dust, which contains particles that can be inhaled, ABC News reported.

* Ferrexpo PLC's total iron pellet production in the fourth quarter of 2020 totaled 3.1 million tonnes, up 22% from third-quarter output of 2.5 Mt. Full-year 2020 iron pellet production, meanwhile, increased 7% to 11.2 Mt, from 10.5 Mt in 2019.

* Chinese domestic rebar margins have almost disappeared since the start of January, affected by soaring raw materials prices and slowing construction activity, S&P Global Platts reported.

* India's coal minister Pralhad Joshi said the next round of auctions for commercial coal mines will be released this month, with more auction rounds to follow, Press Trust of India reported.

SPECIALTY

* Lithium miner Albemarle Corp. submitted additional data on its lithium reserves in Chile, following an earlier request by the country's nuclear agency CCHEN to release the information under the threat of legal action, Fastmarkets MB reported.

* Rock Tech Lithium Inc.'s proposed US$400 million fundraising to support the construction of a lithium refinery in Germany has attracted interest from investors seeking to be part of a push for a local electric vehicle battery industry, Bloomberg News reported.

* Altius Minerals Corp. exercised its pro rata equity participation right with a US$7.6 million commitment to Lithium Royalty Corp., following the latter's agreement on a US$40 million investment from New York-based private equity firm Riverstone Holdings, as part of a larger US$70.7 million offering.

* Portuguese energy group Galp Energia SGPS S.A. will invest US$6.4 million for a 10% stake in Savannah Resources PLC's Portuguese subsidiaries, which own the Mina do Barroso lithium project.

INDUSTRY NEWS

* Drill results for gold and industrial metals increased month over month in December 2020, with the number of reporting projects close to the January high, according to S&P Global Market Intelligence's Metals and Mining Research team.

* The U.S. government will allow certain mining projects to receive streamlined reviews, including environmental analysis, under a law designed for surface transportation infrastructure that was enacted under former President Barack Obama.

* The Alaska Industrial Development and Export Authority signed 50-year right-of-way agreements with the U.S. Bureau of Land Management and the National Park Service for the Ambler road project of Ambler Metals LLC, a 50/50 joint venture between South32 Ltd. and Trilogy Metals Inc.

* Mexico's Supreme Court is expected to soon hand out its verdict on the constitutionality of the country's mining code, after community groups in the Sierra Norte area of Puebla state raised objections, BNAmericas reported.

MARKETS

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