LME halts nickel trading; lawsuits to close GFG's UK steel businesses dropped

TOP NEWS IN METALS & MINING

* The London Metals Exchange suspended nickel trading after three-month spot nickel prices more than doubled overnight to a record high of $101,365 per tonne in early trading March 8, S&P Global Commodity Insights reported.

* U.K. tax authority HM Revenue & Customs withdrew court cases that aimed to close four of GFG Alliance Ltd.'s British-based steel businesses for unpaid taxes totaling over £26 million, the Financial Times (London) reported.

➤ Chinese lithium deal leads metals, mining M&A for week ended March 4

A deal for China-based Qinghai Dongtaijinaier Lithium Resources Co. Ltd. emerged as the highest-valued transaction in the metals and mining space during the week ended March 4, according to a screener on S&P Capital IQ Pro.

➤ Consensus price forecasts – Russian invasion of Ukraine drives up metals prices

The escalating Russia-Ukraine conflict in February sparked buying into safe-haven metals gold and silver and heightened supply risks to nickel, aluminum, iron ore and steel, according to S&P Global Commodity Insights' Metals and Mining Research team.

➤ Russian supply risks loom amid 'stunning' commodity price surge

Russia's invasion of Ukraine has roiled commodity markets and raised uncertainty over the longer-term supply of metals such as palladium, nickel and aluminum.

EARNINGS SPOTLIGHT

* Ivanhoe Mines Ltd. swung to an attributable profit of $55.2 million for full year 2021 from a $19.9 million loss in 2020.

* Fresnillo PLC's attributable profit during the fourth quarter of 2021 dropped year on year to $386.1 million from $439.1 million.

* Royal Bafokeng Platinum Ltd.'s net income in full year 2021 increased by 84.5% to 6.51 billion South African rand from 3.53 billion rand in 2020.

BASE METALS

* Peru's copper production in January rose 12.7% year over year to 199,255 tonnes from 176,737 tonnes due to higher output from major copper producers in the country, Kitco News reported, citing Peru's Ministry of Energy and Mines.

* The nickel price surge amid fears of dwindling Russian supplies may provide a big boost to the earnings of Vale SA and could help the company unlock new nickel projects in Indonesia, Bloomberg News reported.

PRECIOUS METALS

* The London Bullion Market Association suspended its accreditation of six Russian gold refiners, barring them from further selling gold or silver in the London market.

* The National Union of Mineworkers and the Association of Mineworkers and Construction Union issued a strike notice at Sibanye Stillwater Ltd.'s South African gold operations following stalled wage negotiations.

* Kinross Gold Corp. arranged a $1.0 billion, three-year term loan that will mature March 7, 2025. The proceeds will be used to repay amounts drawn under an existing $1.5 billion revolving credit facility related to the acquisition of Great Bear Resources Ltd.

BULK COMMODITIES

* Glencore PLC subsidiary Glencore International AG entered a series of commercial contracts with Aluminium Dunkerque SASU, with all prior arrangements between the two parties canceled.

* U.S. Steel Corp. was fined over $1.8 million by the health department of Allegheny, Pa., due to hydrogen sulfide emissions from the company's Clairton coke plant, the Bradford Era reported.

* Shares in Peabody Energy Corp. fell 8% after the announcement of a financing arrangement with The Goldman Sachs Group Inc. for a $150 million unsecured multiple draw credit facility, which will support the company's potential near-term liquidity requirements linked to its economic coal hedge positions, Dow Jones Newswires reported.

SPECIALTY

* General Motors Co. and South Korea's Posco Chemical Co. Ltd. will build a cathode active material, or CAM, processing facility in Becancour, Quebec, to supply the production of electric vehicle batteries in North America, S&P Global Commodity Insights reported. The governments of Canada and Quebec will support the development of the US$400 million facility.

INDUSTRY NEWS

* Sweden will allocate €18 million for 26 new projects aimed at the research and innovation of sustainable mining, Mining.com reported.

* BHP Group Ltd. expects the ongoing conflict between Russia and Ukraine to further impact inflation as commodity prices continue to surge, Reuters reported.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

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