19 Nov, 2021
Rio Tinto takes full control of Diavik mine; Kazatomprom's Q3'21 profit down YOY
By Karl Decena
TOP NEWS IN METALS & MINING
* Rio Tinto Group took full ownership of the Diavik diamond mine in Canada's Northwest Territories by acquiring the 40% stake held by Dominion Diamond Mines in a transaction approved by the Court of Queen's Bench of Alberta.
* JSC National Atomic Co. Kazatomprom's third-quarter attributable profit dropped year over year to 2.87 billion Kazakhstani tenge from 81.36 billion tenge as revenue slid to 95.81 billion tenge from 203.68 billion tenge.
➤ Four-decade-old US coal advisory council hours may be numbered
A coal advisory policy council criticized by environmental groups over its pro-coal membership could see its two-year charter terminated Nov. 20 absent a renewal from the Biden administration.
➤ Half of major US coal companies beat analysts' expectations in Q3'21
Four of the major publicly traded U.S. coal companies beat analysts' expectations and only two reported negative earnings per share for the third quarter.
➤ West Australian mining skills shortage to peak in 2023 amid ongoing tightness
A labor market analysis specialist has warned of continuing tightness out to 2023 for Western Australia, the world's largest lithium and iron ore producing region, and has urged miners to think laterally to train, attract, recruit and retain staff.
DIVERSIFIED
* Rio Tinto is unlikely to follow in the footsteps of BHP Group and Royal Dutch Shell PLC and scrap its dual listing in London and Sydney, as the move would erode advantages for shareholders, Reuters reported, citing unnamed sources.
* Turquoise Hill Resources Ltd. investor Pentwater Capital Management LP wrote a letter to Rio Tinto Director Ben Wyatt to flag the mining giant's alleged corporate governance breaches that affected the underground expansion of the Oyu Tolgoi copper-gold mine in Mongolia as well as Turquoise Hill's minority shareholders.
BASE METALS
* Swedish mining companies Luossavaara-Kiirunavaara AB and Boliden AB said they will work together to investigate using mining waste at Boliden's Aitik copper mine, which LKAB will then process into fossil-free sulfuric acid, Dow Jones Newswires reported.
* Ivanhoe Mines Ltd. said Kamoa Copper SA awarded China Nerin Engineering Co. Ltd. the basic engineering contract for a planned direct-to-blister flash smelter at the Kamoa-Kakula copper complex in the Democratic Republic of Congo, with the capital cost for the enlarged smelter estimated at about US$700 million.
* First Quantum Minerals Ltd. officially opened the Shoemaker-Levy mine at the Ravensthorpe nickel-cobalt operation in Western Australia, with the new orebody expected to extend Ravensthorpe's mine life by at least 20 years.
* Intek Group S.p.A.'s KME Mansfeld GmbH signed a binding agreement to sell its wires business to Elcowire Group AB for €20 million plus the value of the target's existing metal stock.
PRECIOUS METALS
* Sibanye Stillwater Ltd. amended its offer to the Association of Mineworkers and Construction Union, the National Union of Mineworkers, Solidarity and the UASA after the South African labor unions declared a wage dispute.
* Fortuna Silver Mines Inc. subsidiary Compania Minera Cuzcatlan S.A. de C.V. will appeal the rejection of its application to extend the environmental impact authorization for the San Jose silver mine in Mexico. A previous court order has allowed operations to continue beyond the permit's expiry date.
* New Gold Inc. said heavy rains, flooding and mudslides in British Columbia have disrupted transportation routes to the New Afton gold mine, but the company's infrastructure and operations have been largely unaffected.
BULK COMMODITIES
* The U.S. flagged a national security threat to its power grid after AK Steel, a subsidiary of Cleveland-Cliffs Inc. and the country's sole domestic producer of grain-oriented electrical steel, said it may stop production of the material, which is key in manufacturing transformers, due to unprofitability.
* Hydrogen-based steelmaking is unlikely to displace blast furnace-based steelmaking for two to three decades, which will support demand for metallurgical coal during that period, miners and analysts said at the Financial Times Commodities Asia Summit this week, S&P Global Platts reported.
* The United Steelworkers union said it supports the White House's move to make Buy American waiver requests public in an effort to increase transparency around these decisions, S&P Global Platts reported.
* Itafos Inc. returned to full production capacity at the Conda phosphate mine in Idaho after sulfuric acid supply from Rio Tinto's Kennecott operation in Utah resumed.
* Nucor Corp. plans to add a blast and prime line at its US$1.7 billion steel plate mill project in Brandenburg, Ky.
* Warrior Met Coal Inc. launched a proposed private offering of US$350 million in senior secured notes due 2028.
* Nova Minerals Ltd.'s 57.52%-owned Snow Lake Resources Ltd. seeks to raise US$24 million in its IPO on the Nasdaq Capital Market. Snow Lake's shares are expected to start trading Nov. 19 under the LITM symbol.
* Firefinch Ltd.'s Goulamina lithium project in Mali is expected to start production in late 2023 or early 2024, Reuters reported, citing Firefinch's country director, Seydou Semega.
INDUSTRY NEWS
* S&P Global Market Intelligence's Pipeline Activity Index increased for a second consecutive month in October, rising to 146 from 138 in September, as increases in significant financings, drill results and positive project milestones were partially offset by a decrease in initial resources.
* The Nigerian government's effort to revive its mining sector has resulted in the inflow of notable investments in the sector, Dow Jones Newswires reported, citing Yemi Osinbajo, the country's vice president.
S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.
