Severstal's Q4, FY'21 net profit up YOY; IGO in talks to buy Glencore's CSA mine

TOP NEWS IN METALS & MINING

* PJSC Severstal's net profit in the fourth quarter of 2021 surged year over year to US$978 million from US$386 million as revenue jumped to US$3.27 billion from US$1.72 billion. Full-year 2021 net profit, meanwhile, soared to US$4.08 billion from US$1.02 billion, as revenue improved to US$11.64 billion from US$6.87 billion, Dow Jones Newswires reported. Severstal will invest US$1.60 billion as part of its 2022 capital investment program and will concentrate on key areas of its strategy, such as customer experience, cost leadership and new opportunities.

* IGO Ltd. is in exclusive discussions with Glencore PLC to acquire the latter's CSA copper mine in New South Wales, Australia, but the talks are incomplete and the company is continuing to conduct due diligence as part of the sales process, Dow Jones Newswires reported.

➤ Cobalt miners seeking to expand in Congo face human rights accusations

With cobalt demand rising, major miners are expanding operations, saying they have improved labor conditions and treat workers fairly. But a pair of watchdogs say problems are still rife even at the largest mining companies.

➤ South32 expects strong demand for aluminum, base metals on green energy focus

South32 Ltd. expects aluminum, copper, zinc and silver to shine, driven by low supply and high demand amid a focus on renewable energy.

EARNINGS SPOTLIGHT

* OZ Minerals Ltd.'s full-year 2021 net profit more than doubled to A$530.7 million from A$212.6 million, due to higher sales of copper and gold, as well as higher copper prices, for a record revenue of A$2.1 billion, Dow Jones Newswires reported.

* BlueScope Steel Ltd. booked a net profit of A$1.64 billion in the first half of its fiscal 2022, increasing yearly from A$330.3 million, Dow Jones Newswires reported. The steelmaker raised its interim dividend to 25 cents per share from 6 cents per share, and declared an up to A$700 million share buyback program. BlueScope expects a possible reline of a furnace at its Port Kembla steelworks to cost about A$1 billion, higher than its previous estimate of up to A$800 million.

* Silver Lake Resources Ltd.'s after-tax net profit for the first half of its fiscal 2022 fell year over year to A$44.5 million from A$65.8 million, on the back of higher depreciation and amortization charges reflecting the increased scale of the Deflector gold operation in Western Australia. Meanwhile, Silver Lake closed its US$102 million purchase of Harte Gold Corp., which owns the Sugar Zone gold mine in Ontario.

* Arconic Corp.'s net loss in the fourth quarter of 2021 narrowed to US$38 million from a prior-year loss of US$64 million, following a 46% rise in sales to US$2.14 billion partly due to higher aluminum prices.

DIVERSIFIED

* The U.S. Department of Defense plans to boost its inventory of rare earth minerals, cobalt and lithium in a bid to cut its long-term reliance on China for the critical metals, Reuters reported, citing sources privy to the matter.

BASE METALS

* PT Smelting, a joint venture between Freeport-McMoRan Inc. unit PT Freeport Indonesia and Mitsubishi Materials Corp., started construction of the expansion of its East Java copper smelting facility in Indonesia, Reuters reported. The expansion, which will cost 3.2 trillion Indonesian rupiah, will increase copper cathode output capacity to 342,000 tonnes from 300,000 tonnes.

PRECIOUS METALS

* Barrick Gold Corp. will pay US$25 million to settle a claim by EMX Royalty Corp. subsidiary Bullion Monarch Mining Inc. over Barrick's nonpayment of royalties on production from properties in Nevada's Carlin trend.

BULK COMMODITIES

* Rio Tinto Group will look at options for investment in its Bell Bay aluminum smelter in Australia's Tasmania state, Dow Jones Newswires reported. Rio Tinto and Tasmania's government will jointly assess how the smelter's manufacturing capability and electricity demand can support new industries and more renewable energy supply in the Tamar Valley region.

* One of four production lines at Norsk Hydro ASA's part-owned Albras aluminum smelter in Brazil was shut down due to an internal power distribution failure. The shutdown affected 25% of the facility's capacity, with the affected potline producing 110,000 tonnes of liquid aluminum per year.

SPECIALTY

* An updated definitive feasibility study for Hastings Technology Metals Ltd.'s Yangibana rare earths project in Western Australia outlined a posttax net present value, discounted at 8%, of A$1.01 billion, up 84% from A$549 million in a 2019 study. The project's internal rate of return improved to 26% from 21%, while capital cost, including contingency, increased to A$658 million from A$516 million.

INDUSTRY NEWS

* Mineral-rich Western Australia will reopen March 3 to triple-vaccinated visitors following two years of strict border controls, Reuters reported.

* The Democratic Republic of Congo is nearing a deal with Fleurette Group that may enable the African nation to recover about US$2 billion worth of mining and oil assets from the firm controlled by U.S.-sanctioned Israeli businessman Dan Gertler, Reuters reported, citing the minutes of a cabinet meeting.

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