20 Mar, 2022
Antofagasta to exit Reko Diq for US$900M; Turquoise Hill warned of Rio Tinto bid
TOP NEWS IN METALS & MINING
* Pakistan will buy out Antofagasta PLC's interest in the Reko Diq copper project for US$900 million, and will split ownership of the mine evenly with Barrick Gold Corp., The Wall Street Journal reported. The deal will restart work at the copper mine, and spare the country from having to pay billions in compensation. Preliminary work at Reko Diq stopped in 2011 after authorities refused to grant a mining license for its development.
* Pentwater Capital Management LP, the largest minority shareholder of Turquoise Hill Resources Ltd., accused Rio Tinto Group of only enriching itself after its recent acquisition offer for the remaining shares of the Toronto Stock Exchange-listed company. Rio Tinto paid US$63.70 per share for its existing interest in Turquoise Hill, significantly higher than its current offer of US$26.90 per share, or a total of US$2.7 billion, to acquire the remaining 49% stake.
➤ EU eyes more nuclear energy but still reliant on Russia as uranium market surges
Much of the European Union is looking to increase nuclear power as part of efforts to end dependence on Russian fossil fuels for electricity. That could bolster uranium imports from top producers, with Russia and Kazakhstan prominent on that list.
➤ Nearly 27% of US coal mined in 2021 went to plants set to retire this decade
Looking further ahead, U.S. coal companies delivered an amount equivalent to about 37.4% of 2021 production to plants retiring by the end of 2042.
➤ Replacing Russian uranium in case of ban might cost over $1B, DOE nominee says
The nominee for U.S. Department of Energy top nuclear official provided the estimate March 17, the day lawmakers introduced a bill to ban the import of uranium ores and concentrates from Russia after that country's invasion of Ukraine.
DIVERSIFIED
* Anglo American PLC signed a memorandum of understanding with Electricité de France SA to develop a regional renewable energy ecosystem in South Africa, Dow Jones Newswires reported.
* Griffin Mining Ltd. restarted underground operations at its Caijiaying zinc-gold mine in China, Dow Jones Newswires reported.
BASE METALS
* Copper-zinc explorer Stelar Metals Ltd. began trading on the Australian Securities Exchange after raising A$7 million through an IPO at 20 cents per share.
BULK COMMODITIES
* Australia banned the export of aluminum ores, including bauxite and alumina, to Russia, which will limit the country's ability to produce aluminum, "a critical export for Russia," S&P Global Platts reported, citing a statement by Australia's Minister for Foreign Affairs. Australia will donate at least 70,000 tonnes of thermal coal to help keep Ukraine's coal-fired power generators operating.
* Metro Mining Ltd. reached additional off-take agreements with China's Xinfa Aluminium Group for the equivalent of 1.0 million dry tonnes of bauxite, increasing the company's contracted tonnage for 2022 to 3.8 million wet tonnes.
* A feasibility study for Macarthur Minerals Ltd.'s Lake Giles iron ore project in Western Australia defined a posttax net present value, discounted at 6%, of A$443 million, and a 10.1% internal rate of return. The company outlined a maiden proven and probable ore reserve for Lake Giles of 237 million tonnes, which supports a 25-year mine life.
SPECIALTY
* China's Contemporary Amperex Technology Co. Ltd. is studying potential sites across North America for a US$5 billion factory capable of producing up to 80 GWh of batteries per year, Bloomberg News reported, citing sources familiar with the matter.
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