Lithium Americas to buy Millennial Lithium for $400M; Aclara IPO to raise $100M

TOP NEWS IN METALS & MINING

* Lithium Americas Corp. agreed to acquire Millennial Lithium Corp. for a total consideration of around US$400 million in cash and stock, Dow Jones Newswires reported.

* Hochschild Mining PLC said that Aclara Resources Inc., its rare earths project in Chile, is seeking to raise US$100 million with its IPO on the Toronto Stock Exchange, Dow Jones Newswires reported.

➤ Glencore's strategy shift opens door for Evolution's acquisition of Ernest Henry

Evolution Mining Ltd. Executive Chairman Jacob Klein said the miner used a "small window of opportunity" to negotiate a deal for Glencore PLC's 70% stake in the Ernest Henry copper-gold mine in Queensland, Australia.

➤ Eastern US coal volumes rise, but supply response muted despite increased demand

Some of the largest coal mines east of the Mississippi reduced production in the third quarter compared with the prior quarter, although several large Central Appalachia mines have seen big jumps in mine output.

➤ Osisko Mining nearly doubles exploration budget, becomes top 10 explorer in 2021

Osisko Mining Inc.'s 2021 exploration budget on the Windfall Lake gold project in Quebec is 48.1% higher than its 2020 exploration spending.

EARNINGS SPOTLIGHT

* Sociedad Química y Minera de Chile SA's third-quarter net income surged year over year to US$106.1 million, or 37 cents per share, from US$1.7 million, or 1 cent per share as revenue grew to US$661.6 million from US$452.9 million.

* Mechel PAO posted a third-quarter attributable profit of 21.28 billion Russian rubles, swinging from a year-ago loss of 25.96 billion rubles, as revenue jumped to 102.91 billion rubles from 64.42 billion rubles.

* Thyssenkrupp AG forecast a net income of at least €1 billion for fiscal 2021/2022, the highest since fiscal 2007/2008 and an improvement from the year-ago net loss of €25 million, thanks to the macroeconomic recovery and the continued expectation of structural improvements in its businesses.

DIVERSIFIED

* Vedanta Ltd.'s board established a committee to evaluate options for the company's businesses, including housing its aluminum, iron and steel, and oil and gas segments in stand-alone listed entities.

* Thyssenkrupp Chief Executive Martina Merz said the company would list its hydrogen business Uhde Chlorine Engineers in spring 2022, Dow Jones Newswires reported. The company could also seek a spinoff of its steel division through a vote at its annual meeting in February 2023, according to Germany's Manager Magazin.

BASE METALS

* PJSC MMC Norilsk Nickel reached a settlement with the Government of Botswana and BCL Group over a dispute related to the sale of its African assets, including a 50% stake in the Nkomati nickel mine in South Africa.

* Copper prices have been supported by low levels of visible stocks, driven lower by robust demand and reports of traders drawing down warehoused inventories. These factors have caused turmoil in the London Metal Exchange, with the spot price contract having traded at a record spread over the LME 3M copper price in mid-October, according to S&P Global Market Intelligence's Metals and Mining Research team.

PRECIOUS METALS

* Global silver demand for 2021 is estimated to increase 15% year over year to 1.03 billion ounces, exceeding 1 Boz for the first time since 2015, according to data from The Silver Institute.

* Tharisa PLC extended the life of the open pit mine at its namesake platinum group metals operation in South Africa by seven years to 2041 following an annual review of its mineral resource and reserve statement.

BULK COMMODITIES

* Rio Tinto Group outlined plans to invest US$87 million to increase production of low-carbon aluminum at its AP60 smelter in Quebec by 45% to 86,500 tonnes per year. Work to add the smelting cells will start in 2022, with completion expected toward the end of 2023.

* Cleveland-Cliffs Inc. completed the acquisition of Ferrous Processing & Trading Co. for about US$775 million.

* Iron ore giant Vale SA is looking to partner with steel mills in Latin America after China cut steel production amid efforts to reduce pollution and energy consumption, Bloomberg News reported.

* Brazil's Minas Gerais state may reach a settlement with BHP Group and Vale's Samarco Mineração SA joint venture over the fatal 2015 dam disaster by early 2022, Steel Orbis reported, citing Minas Gerais Gov. Romeu Zema.

* ArcelorMittal completed its fourth share buyback program of the year and will start a new previously announced US$1 billion buyback, Dow Jones Newswires reported.

* Alcoa Corp. announced the purchase of group annuity contracts that will facilitate the transfer of about US$1 billion of pension obligations and assets associated with defined benefit pension plans for certain U.S. retirees and beneficiaries. The transfer is expected to be completed later this month.

SPECIALTY

* The Estonian Ministry of Economic Affairs and Communications and Neo Performance Materials Inc. launched a joint effort to explore a possible expansion of the company's current advanced rare earth element, or REE, products output in Estonia and to potentially add manufacturing capacity for REE-based metals, alloys and magnetic materials for electric vehicles and other green technologies.

* Westwater Resources Inc. signed a letter of intent to sell 125 tonnes to 250 tonnes of battery-grade graphite in 2023 from the Coosa graphite project in Alabama, with an option to deliver an additional 16,000 tonnes in 2025.

INDUSTRY NEWS

* Metals and mining fundraising declined 38% month over month in October to US$1.09 billion, Market Intelligence's Metals and Mining Research team reported. The number of financings was up 20% to 192, following three consecutive months of decline that culminated in a 17-month low in September.

* Canadian exploration budgets have ballooned in 2021, restoring the country to its place as the world's top exploration destination, a title it lost to Australia in 2018, according to Market Intelligence's Metals and Mining Research team.

* While inflation has surged to levels not seen in more than three decades, the government bond market seems to be buying the Federal Reserve's argument that inflation will not stick around.

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