3 Feb, 2022
Glencore enters battery recycling JV; Mexico to form state-owned lithium miner
TOP NEWS IN METALS & MINING
* Glencore PLC entered into a battery recycling joint venture with battery maker Britishvolt Ltd. aimed at developing an ecosystem for such recycling in the U.K., Dow Jones Newswires reported. The facility is expected to be operational by mid-2023.
* Mexico's President Andrés Manuel López Obrador plans to establish a state-owned lithium mining company, and flagged legal action to block the development of Bacanora Lithium PLC and Ganfeng Lithium Co. Ltd.'s Sonora lithium joint venture, the Associated Press reported.
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Worldwide, the demand for rare earth elements could be three to seven times above current levels by 2040, according to the International Energy Agency.
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Mining companies enjoying a period of high commodity prices and heightened demand are facing a flurry of tax hikes from governments strained by pandemic-fueled budget shortfalls.
➤ What the EU's planned carbon border levy could mean for businesses and investors
The EU is planning a carbon levy on some imports, with the first stage taking effect in 2023 — meaning companies need to prepare now.
DIVERSIFIED
* Vedanta Ltd. denied media reports about a possible merger with Vedanta Resources Ltd. saying no such proposal is under consideration.
* Noront Resources Ltd. and Wyloo Metals Pty. Ltd. agreed to amend certain provisions of their merger, which includes requiring election only for any shareholders wishing to retain shares.
* Nexa Resources SA produced 81,000 tonnes of zinc and 7,000 tonnes of copper in the fourth quarter of 2021, declining year over year from 92,000 tonnes and 9,000 tonnes, respectively. Silver output during the quarter increased to 2.3 million ounces from 2.1 Moz, while lead output remained flat at 13,000 tonnes.
* Philex Mining Corp. is seeking foreign investors for its Silangan copper-gold project in the Philippines, Manila Standard reported, citing Chairman Manuel Pangilinan.
PRECIOUS METALS
* Gold Mountain Mining Corp. completed the first delivery of ore to New Gold Inc.'s New Afton gold mine in British Columbia.
BULK COMMODITIES
* Japan's Nippon Steel Corp. further downgraded its projected consolidated crude steel production for the financial year ending March 31 to 44.8 million tonnes, down 2% from the previous forecast of 45.7 Mt, S&P Global Platts reported.
* Cia. Siderúrgica Nacional subsidiary CSN Resources SA launched a cash tender offer for up to US$300 million of its outstanding US$600 million in 7.625% senior unsecured guaranteed notes due 2026.
* Poland allegedly violated EU law when it agreed to extend the life of PGE Polska Grupa Energetyczna SA's Turow coal mine until 2026 without an environmental impact assessment, Reuters reported, citing Priit Pikamäe, advocate general at the EU's Court of Justice, who favored a challenge by the Czech Republic.
* EQT Corp., Equinor ASA, Marathon Petroleum Corp., Mitsubishi Power Ltd., Shell Polymers and U.S. Steel Corp. formed an alliance to establish a low-carbon and hydrogen industrial hub in Ohio, Pennsylvania and West Virginia that can be a national model for sustainable energy and production systems.
* An updated feasibility study on Strike Resources Ltd.'s Paulsens East iron ore project in Western Australia outlined a pretax net present value of A$245 million, discounted at 8%, with an internal rate of return of 284% using a benchmark iron ore price of US$135 per tonne.
SPECIALTY
* A shift in Chinese domestic demand to battery-grade lithium carbonate from lithium hydroxide has supported prices of carbonate materials, widening the negative spread between the two to a record high on Feb. 3, S&P Global Platts reported, citing market sources.
* Hundreds of environmental activists in Serbia formed a blockade at Belgrade's city center, demanding the government to ban all lithium and borates mining in the country by Feb. 15, Reuters reported. The protesters threatened to disrupt the April elections if their demand would not be granted.
* Piedmont Lithium Inc. will build a second 30,000-tonne-per-year lithium hydroxide conversion plant in the U.S. to accommodate its growing portfolio of spodumene supply assets, and a site selection process for the project is currently underway, S&P Global Platts reported.
* General Motors Co.'s GM Ventures and LOTTE Corp. took part in an US$11 million series A financing by Soelect Inc., a startup developing fast-charging lithium-metal batteries for electric vehicles, Reuters reported.
* The indicative terms for Lithium Australia NL's acquisition of the remaining 10% stake of Envirostream Australia Pty. Ltd. have been agreed on. The completion of the transaction is expected on or before March 1.
INDUSTRY NEWS
* South Africa's labor ministry urged Rio Tinto Group to report discrimination cases after the company published an internal report discussing sexual assault, bullying, and racism happening at its mines, Reuters reported.
* The environmental committee involved in the drafting of a new Chilean constitution approved the scrapping of water rights granted to private mines, farms, and utilities over the past four decades, Bloomberg News reported.
S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.
