30 Nov, 2021
Vale narrows FY'21 iron ore guidance; Hochschild to buy Amarillo Gold for C$165M
By Karl Decena
TOP NEWS IN METALS & MINING
* Vale SA narrowed its full-year 2021 iron ore production guidance range to between 315 million tonnes and 320 Mt from its previous guidance of between 315 Mt and 335 Mt. For full year 2022, Vale pegged iron ore output at between 320 Mt and 335 Mt, while iron ore pellet production is expected to be between 34 Mt and 38 Mt.
* Hochschild Mining PLC agreed to acquire Brazil-focused Amarillo Gold Corp. for a transaction value of C$164.5 million, Dow Jones Newswires reported.
➤ US coal employment holds steady as producers face tight labor market
The average number of coal mine workers was steady in the third quarter, rising just 2.5% quarter over quarter while falling 3.2% year over year, according to data from the U.S. Mine Safety and Health Administration.
➤ CES 2021 – Kirkland Lake Gold almost triples Canada budget
Toronto-headquartered Kirkland Lake Gold Ltd. has raised its exploration budget 29% year over year in 2021, in line with a global nonferrous exploration budget increase of 35%. The increase has moved Kirkland Lake's budget up to fourth place in 2021 from sixth place in 2020, tying with Fresnillo PLC.
➤ Chinese steel deal tops metals, mining M&A for week ended Nov. 26
A deal targeting China-based steelmaker Fangchenggang Jinxi Section Steel Technology Co. Ltd. emerged as the highest-valued transaction in the metals and mining space during the week ended Nov. 26, according to a screener on S&P Capital IQ Pro.
DIVERSIFIED
* The board of Rio Tinto Group's 50.79%-owned Turquoise Hill Resources Ltd. said Oyu Tolgoi LLC's board approved a US$75 million bridging budget to continue advancing critical work in the underground expansion of the Oyu Tolgoi copper-gold mine in Mongolia until mid-January 2022.
BASE METALS
* PJSC MMC Norilsk Nickel is aiming to become a larger player in the European battery value chain as it expands its Harjavalta nickel refinery in Finland to 100,000 tonnes per year by 2026, S&P Global Platts reported, citing a company webcast.
* Taseko Mines Ltd.'s fourth-quarter sales volumes will be affected by disruptions in copper concentrate shipments from the Gibraltar mine in British Columbia caused by recent flooding. Meanwhile, the mine's union ratified a new labor agreement that will last until May 31, 2024.
* First Quantum Minerals Ltd. will partially redeem US$600 million of its outstanding 7.250% senior notes due April 2023, and the aggregate principal amount outstanding after such redemption will be US$1 billion.
* Capstone Mining Corp. entered into a definitive agreement to merge with Mantos Copper (Bermuda) Ltd. in an all-share deal, with Mantos to be renamed Capstone Copper Corp. after completion.
PRECIOUS METALS
* Three workers were found dead after a mud rush at the Shaft 6 complex of Impala Platinum Holdings Ltd.'s Impala Rustenburg platinum operation in South Africa.
* First Majestic Silver Corp. launched an offering of US$200 million aggregate principal amount of unsecured convertible senior notes due 2027, which will bear interest semiannually at a rate of 0.375% per annum. Proceeds will be used to partially repurchase its outstanding 1.875% convertible senior notes and for general corporate purposes.
* Osisko Mining Inc. signed an agreement for a C$154 million private placement in a convertible senior unsecured debenture due Dec. 1, 2025, with Northern Star Resources Ltd.
* Vanstar Mining Resources Inc. signed a letter of intent to acquire up to 75% of Iamgold Corp.'s Calder-Bousquet gold project in Quebec.
* Prodigy Gold NL signed a binding agreement granting Newmont Corp. subsidiary Newmont Exploration Pty Ltd. an option to acquire up to 85% of the Monza gold project in Australia's Northern Territory.
* A preliminary economic assessment of AbraSilver Resource Corp.'s Diablillos silver project in Argentina generated a posttax net present value, discounted at 5%, of US$364 million, with a 30.2% internal rate of return and a 2.6-year payback period.
* MAG Silver Corp. has closed its US$46.2 million share offering. Net proceeds will fund exploration on the Juanicipio silver project in Mexico and its other projects, including the Deer Trail gold project in Utah, and be used for working capital and general corporate purposes.
BULK COMMODITIES
* Activist hedge fund Bluebell Capital Partners Ltd. asked Glencore PLC to separate its thermal coal business, which has turned off investors who value sustainability, Bloomberg News reported, citing a letter from Bluebell.
* Nippon Steel Corp. reiterated its plans to raise the crude steel production capacity of its Indian joint venture with ArcelorMittal as well as to establish an integrated steel mill in Asia, Platts reported.
* PJSC Severstal engaged Ernst & Young LLP to conduct an ethical standards compliance audit, part of the steelmaker's program to improve corporate processes and comply with best environmental, social and governance practices.
* Coal piles at U.S. power plants have dwindled to their lowest point since the 1970s, and the race to build up inventories ahead of heating season has sent domestic thermal coal prices to their highest levels in more than a decade, The Wall Street Journal reported.
SPECIALTY
* Auxico Resources Canada Inc. plans to build a 10,000-square meter rare earth refining facility, which will have a processing capacity of 36,000 tonnes of ore per year, in the city of Santa Marta, Colombia.
* The government of the United Arab Emirates pledged US$2 billion to help advance Nigeria's mining sector, Neptune Prime reported, citing a statement from Nigeria's mines minister, Uchechukwu Sampson Ogah.
* UC Rusal IPJSC donated US$105 million to support regional healthcare systems across Russia in the fight against the COVID-19 pandemic.
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