Economic sanctions levied on gold-rich Mali; BHP to invest in Tanzanian nickel

TOP NEWS IN METALS & MINING

* The Economic Community of West African States levied sanctions on Mali, including closing borders and cutting diplomatic ties, after transitional authorities delayed elections until 2025 following a 2020 military coup. The sanctions have not yet affected operations at Barrick Gold Corp.'s Loulo-Gounkoto gold mine complex, Reuters reported, while Hummingbird Resources PLC is evaluating the immediate risks to its supply chain.

* BHP Group will invest up to US$90 million in Tanzania-focused Kabanga Nickel Ltd. after its failed bid for Noront Resources Ltd. and the nickel-rich Eagle's Nest project in Ontario. "This investment secures access to a world-class nickel sulfide resource and is aligned with BHP's strategy to capture opportunities in future-facing commodities," a BHP Group spokesperson told S&P Global Market Intelligence in an emailed statement.

➤ Uranium heavyweights flirt with reopening mothballed mines amid Kazakh unrest

The turmoil could have long-term consequences if uranium buyers decide to turn to more stable geopolitical climates for their nuclear fuel supply, some industry analysts said.

➤ Slow rate hikes, infrastructure spending key to 2022 precious, base metal gains

Chinese infrastructure spending and limits to how quickly the U.S. Federal Reserve can raise rates to tame inflation may buoy some metals in 2022, according to analysts.

➤ Median market value of metals, mining companies steady through December 2021

The median market capitalization of metals and mining companies declined slightly through December 2021, while increasing significantly year over year.

DIVERSIFIED

* Dundee Precious Metals Inc.'s consolidated gold concentrate production in the fourth quarter of 2021 improved year over year to 82,800 ounces from 64,117 ounces, as copper concentrate output grew to 9.2 million pounds from 7.7 million pounds.

BASE METALS

* Tesla Inc. secured 75,000 tonnes of nickel concentrate over a six-year period from the Tamarack project in Minnesota, a joint venture between Talon Metals Corp. and Rio Tinto Group. Based on prevailing nickel prices, the deal is worth over US$1.5 billion, Mining.com reported.

PRECIOUS METALS

* Fourth-quarter 2021 gold production at Lundin Gold Inc.'s Fruta del Norte mine in Ecuador rose year over year to 107,915 ounces from 96,830 ounces. Full-year 2021 gold production improved to 428,514 ounces from 242,400 ounces, beating guidance of 380,000 ounces to 420,000 ounces.

* Osisko Gold Royalties Ltd. earned approximately 19,830 attributable gold equivalent ounces in the fourth quarter of 2021, increasing yearly from 18,829 gold equivalent ounces.

* Sandstorm Gold Ltd. booked a record full-year 2021 revenue of US$114.8 million, increasing from US$93 million, on the back of the sale of a record 67,500 attributable gold equivalent ounces, Dow Jones Newswires reported.

* Mongolia's National Development Agency issued a tax stabilization certificate to Erdene Resource Development Corp. for its Bayan Khundii gold project, valid for nine years from Dec. 21, 2021, which provides protection from potential statutory tax or royalty increases.

* Eurasian Resources Group SARL and its Kazchrome subsidiary resolved temporary disruptions at the Donskoy chrome mine in Kazakhstan amid protests in the country, S&P Global Platts reported, citing a company spokesperson.

* Capricorn Metals Ltd. launched an 81,000-meter resource infill and extensional drilling program at the Mt Gibson gold project in Western Australia, which will be the basis of an updated resource estimate and maiden ore reserve statement in the September quarter. A feasibility study and a development decision for the project are expected in the December quarter.

BULK COMMODITIES

* Vale SA partially halted production at its Southeastern and Southern System operations in Brazil due to logistical disruptions caused by heavy rains in the state of Minas Gerais. Cia. Siderúrgica Nacional also temporarily suspended operations at the Casa de Pedra iron ore mine in Minas Gerais.

* Rio Tinto Group agreed to purchase four battery-electric trains to be used at its Pilbara operations in Western Australia, part of its strategy to slash carbon emissions by 50% by 2030.

* Yara International ASA will wind down its sourcing of potash in Belarus as sanctions on the country have affected the supply chain.

* Indonesia will allow coal exports in stages for companies that fulfilled the domestic market obligation commitment, effective Jan. 12, Bisnis Indonesia reported, citing Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan. The country's coal miners committed 8.4 million tonnes of coal to the domestic market, falling short of the target of 16 Mt, S&P Global Platts reported.

SPECIALTY

* Vulcan Energy Resources Ltd. and Nobian Gmbh will assess the feasibility of the joint development, construction, and operation of the Central Lithium Plant in Germany, including the electrochemical conversion process of lithium chloride into battery-grade lithium hydroxide.

* A desktop study on the development and construction of the commercial pilot plant at Triton Minerals Ltd.'s Ancuabe graphite project in Mozambique identified US$7 million in alternative funding options, which will result in a 13% to 22% reduction in the initial direct funding requirement.

S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.

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