BHP open to partnering on potash project; Ferrexpo curtails iron ore output

TOP NEWS IN METALS & MINING

* BHP Group Ltd. is open to having a partner in its Jansen potash project, but can also do it alone, Reuters reported, quoting Ragnar Udd, BHP president of minerals Americas. The company is not in discussions with rival Nutrien Ltd. on the potash business, according to Udd.

* Ukraine-based iron ore miner Ferrexpo PLC is curtailing production due to a buildup of iron ore inventory and because its barging operations were restricted after a Russian missile strike damaged infrastructure in southwest Ukraine, S&P Global Commodity Insights reported.

➤ Chinese coal deal tops metals, mining M&A for week ended June 10

A Chinese coal deal valued at US$44.4 million led metals and mining transactions during the week ended June 10.

➤ Gold prices face increasing downside risk in H2'22 as supply grows

Gold prices could fall as low as US$1,670/oz in late 2022 due to rising real rates and falling inflation, while COVID-19 lockdowns in China are dragging down global physical gold demand, analysts warned.

➤ Growing mining industry dividends, buybacks going 'too far'

The mining sector as a whole may be sacrificing longer-term pipelines by increasing spending on dividends and shareholder returns instead of exploration and new mine builds, some mining experts said.

DIVERSIFIED

* Adventus Mining Corp. and Salazar Resources Ltd. committed to investing an additional US$270 million in the Curipamba-El Domo copper-gold project in Ecuador over the next 12 years.

BASE METALS

* Austral Resources Australia Ltd. produced its first copper cathode from the Anthill project in Australia. The company aims to produce 10,000 tonnes per year of copper cathode starting mid-2022.

* The London Metal Exchange three-month zinc price fell to US$3,489.5/t May 13 from its multiyear peak of US$4,498.5/t April 19 as inflationary pressures triggered a sharp hike in U.S. interest rates, leading to a broad sell-off across metals markets, according to S&P Global Commodity Insights' Metals and Mining Research team.

* Glencore PLC will automate drilling at its Lomas Bayas copper operation in Chile as part of the company's modernization efforts in the country, Mining Weekly reported.

PRECIOUS METALS

* Alamos Gold Inc. outlined a 30% reduction target in absolute Scope 1 and Scope 2 emissions by 2030 from 2020-21 levels, while the company will consider Scope 3 emissions as part of its reduction strategy in the near future.

* Orla Mining Ltd. agreed to acquire Nevada-focused explorer Gold Standard Ventures Corp. for C$242 million, or 65.5 Canadian cents per share, with closing expected in August.

* Serabi Gold PLC's gold production at the Palito Complex in Brazil reached the highest level year to date in May, Dow Jones Newswires reported. The London-listed, Brazil-focused mining company said gold production reached 2,949 ounces.

* Shanta Gold Ltd. signed a US$20 million loan facility to fund the construction of its Singida gold project in Tanzania, Dow Jones Newswires reported.

BULK COMMODITIES

* The Ukrainian government ordered a ban on the exportation of gas, coal and fuel oil amid Russia's invasion, Reuters reported.

* Thungela Resources Ltd. forecast that its first-half EPS will rise to at least 58.00 South African rand, from 3.13 rand in the prior year, due to higher prices, although coal production is expected to fall 14% to 6.1 million tonnes amid issues with South Africa's rail infrastructure, Dow Jones Newswires reported.

* ICL Group Ltd. signed a long-term agreement with India Potash Ltd. to supply polysulphate through 2026, with a renewal option. The five-year term is for an aggregate amount of 1 million tonnes, with quantities increasing for each year of the agreement.

SPECIALTY

* The U.S. Department of Defense awarded Lynas Rare Earths Ltd. subsidiary Lynas USA LLC a US$120 million contract to build a commercial heavy rare earths separation facility in the U.S.

* Uranium Energy Corp. signed a definitive agreement to acquire UEX Corp. in an all-share deal valued at about 43 Canadian cents per share, with closing expected in the third quarter.

* Gem Diamonds Ltd. recovered a 245-carat white Type II diamond at its Letseng mine in Lesotho, Dow Jones Newswires reported.

* Premier African Minerals Ltd. is considering an early production strategy for its Zulu lithium-tantalum project in Zimbabwe that involves its large-scale pilot plant producing only spodumene concentrate by the first quarter of 2023, Dow Jones Newswires reported.

* REC Silicon ASA and Ferroglobe PLC have agreed to negotiate a supply agreement that could lay the foundation for a U.S. solar supply chain.

INDUSTRY NEWS

* Bluejay Mining PLC is reviewing spinning out its battery and critical metals exploration subsidiary, Disko Exploration Ltd., with plans to list the unit on a London-based stock exchange, Dow Jones Newswires 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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