Russia blocks 'conflict diamonds' review; strike at hand in Codelco's Ventanas

TOP NEWS IN METALS & MINING

* Several countries, including top diamond producer Russia, blocked a Western-backed proposal to discuss broadening the definition of "conflict diamonds" to include those sold to fund Russia's invasion of Ukraine, Reuters reported.

* Workers at Codelco's Ventanas copper smelter will go on strike if they fail to receive a favorable response from the company's board by June 17 on their concerns over the lack of investment at the facility, Reuters reported.

➤ Chile at risk of missing lithium boom amid political, policy instability

Chile has been struggling to grant companies rights to extract its vast lithium reserves for years. Now the country has backslid even further as it rewrites its constitution — and its window may be closing.

➤ Iron Ore CBS June 2022 – Price rally halted by Beijing COVID-19 outbreak

Iron ore prices rallied into early June on easing lockdown restrictions in Shanghai and news of more Chinese stimulus. The price upturn proved short-lived, however, following renewed outbreaks of COVID-19 in Beijing in the second week of June.

➤ IM June 2022 — Exploration index falls for 2nd month

S&P Global Market Intelligence's Pipeline Activity Index fell for a second consecutive month in May as decreases in significant financings and initial resources were offset by increases in significant drill results and positive project milestones.

PRECIOUS METALS

* Shanta Gold Ltd. secured a maiden mining license for the Porcupine South resource area of the Lupa Goldfields in Tanzania, Dow Jones Newswires reported.

BULK COMMODITIES

* Mexico's national union of mining and metallurgical workers launched a strike at ArcelorMittal SA unit ArcelorMittal México SA de CV's steel plant in Michoacán, Mexico, following failed talks over profit-sharing, Reuters reported, citing the two parties.

* U.S. Steel Corp.'s second-quarter adjusted EBITDA is expected to reach US$1.6 billion, a record high for the June quarter, with adjusted net earnings to range between US$3.83 and US$3.88 per diluted share.

* Steel Dynamics Inc. expects record second-quarter earnings of between US$6.33 and US$6.37 per diluted share, which will be an increase year over year from US$3.32 per diluted share.

* Russian coal miners raised thermal coal sales to India ahead of Europe's ban on coal shipments from the country, which will take effect in August, Bloomberg News reported.

* Coal supplies at the Megalopolis open-pit mine in Greece stands at 640,000 tonnes, up year over year from 450,000 tonnes, in anticipation of higher demand for coal used for power generation as gas supply from Russia was cut off, Reuters reported, citing Konstantinos Gidis, the mine's managing director.

* The Turkish Trade Ministry is expected to announce the final decision on its antidumping investigation into hot-rolled coil imports from the EU and South Korea in late June or early July, industry sources told S&P Global Commodity Insights.

SPECIALTY

* Angola increased its stake in the Catoca diamond operation to 59% after the government transferred the 18% interest held by LLI International, a unit of Chinese investor China Sonangol, to state entity Instituto de Gestão de Activos e Participações do Estado, the Financial Times of London reported. State-owned diamond miner Endiama EP already owned a 41% stake in Catoca.

* Syrah Resources Ltd. lifted a temporary suspension on logistics and personnel movements on its primary transport route in Mozambique, which were affected by security concerns in the Cabo Delgado province, located about 200 kilometers from its Balama mine.

* Bolivia again held back its announcement of the six companies that were shortlisted as potential partners to develop the country's lithium deposits, Reuters reported, citing Carlos Ramos, head of state-run Yacimientos de Litio Bolivianos.

INDUSTRY NEWS

* Fortescue Metals Group Ltd.'s chairman and founder Andrew Forrest criticized countries who continue to rely on Russian natural gas imports instead of focusing on the development of alternative energy capabilities, the Financial Times of London reported.

* Chile will proceed with its proposed tax reforms, including revised mining royalties for copper and lithium, which is key in raising funds for the country's social programs, Reuters reported, citing Giorgio Jackson, Chile's minister secretary-general of the presidency.

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

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