Ganfeng Lithium in US$962M M&A; Gold Fields to list on TSX after Yamana deal

TOP NEWS IN METALS & MINING

* Ganfeng Lithium Co. Ltd. will acquire Argentina-focused lithium explorer LitheA Inc. for US$962 million, as part of the lithium major's efforts to secure supplies of the key battery metal.

* Gold Fields Ltd. is enhancing its dividend policy to between 30% and 45% of normalized earnings and will seek to list its shares on the Toronto Stock Exchange if it completes the acquisition of Yamana Gold Inc., Dow Jones Newswires reported.

➤ Bolivia vies to join lithium producers club after years of disappointment

Thought to hold the world's largest reserves of the critical metal, the South American country has signed deals for pilot projects with six companies including U.S. startup Lilac Solutions Inc.

➤ Gold prices tick down as US dollar surges; base metals get positive outlook

Gold prices are expected to tick down throughout 2022 on the back of a surging U.S. dollar and the prospect of rate increases from the U.S. Federal Reserve.

➤ Nickel industry margins surged in 2021 amid stronger nickel prices

Strong nickel prices and minesite cost optimization resulted in an all-in sustaining cost margin of US$2.67 per pound in 2021; further price increases will support margins at US$3.38/lb in 2022.

DIVERSIFIED

* Dundee Precious Metals Inc.'s preliminary gold production in the second quarter dropped year over year to 72,900 ounces from a record 85,128 ounces last year. Copper output fell to 8.8 million pounds from 10.0 million pounds.

BASE METALS

* BHP Group Ltd. will use what is touted as the world's first carbon-neutral conveyor belts at its Spence copper mine in Chile. They were developed under a pilot project with China's Wuxi Boton Technology Co. Ltd., with delivery scheduled in August.

* Glencore PLC's Raglan nickel mine in Quebec offered a new deal to the United Steelworkers Union, Local 9449 for the renewal of their collective agreement in a bid to end a strike that started in late May.

* Osisko Metals Inc. reached a definitive agreement to acquire the Gaspé copper project in Québec from Glencore unit Glencore Canada Corp.

* Copper producer Antofagasta PLC paid US$1.3 billion in taxes for 2021, nearly all in Chile.

PRECIOUS METALS

* Fortuna Silver Mines Inc.'s second-quarter gold production doubled year over year to 62,171 ounces on the back of its C$1.1 billion acquisition of Roxgold Inc. and its Yaramoko mine in Burkina Faso. Silver production fell 13% to 1.7 million ounces.

* Royal Gold Inc. unit International Royalty Corp. entered a definitive agreement to acquire Great Bear Royalties Corp. for about C$199.5 million, or approximately C$6.65 per share. Great Bear Royalties owns a 2.0% net smelter royalty on Kinross Gold Corp.'s Great Bear gold project in Ontario.

BULK COMMODITIES

* Ramaco Resources Inc. flagged an impact on production from its Berwind mining complex in West Virginia due to a methane ignition. The company said it is evaluating the damage.

* BP PLC and Thyssenkrupp AG signed a memorandum of understanding to develop the long-term supply of low-carbon hydrogen and renewable power in steel production.

SPECIALTY

* Output from the Gahcho Kué diamond mine in Canada's Northwest Territories, a joint venture between Mountain Province Diamonds Inc. and Anglo American PLC's De Beers SA, fell 29% year over year to 1.3 million carats. The consortium expects full-year 2022 output at between 5.6 million carats and 5.8 million carats, down from its previous guidance of between 6.2 million carats and 6.4 million carats.

* Premier African Minerals Ltd. plans to start shipments of spodumene concentrate from its Zulu lithium mine in Zimbabwe to China by March 2023 after it signed an off-take agreement with Suzhou TA&A Ultra Clean Technology Co. Ltd., Reuters reported, citing Premier African Minerals CEO George Roach.

* An updated ore reserve estimate for Core Lithium Ltd.'s Finniss mine in Australia's Northern Territory outlined a 43% increase to 10.6 million tonnes grading 1.3% lithium oxide. The measured and indicated resource estimate rose 61% to 13.3 million tonnes grading 1.40%.

INDUSTRY NEWS

* Tenaris SA's agreement to acquire Benteler North America Corp.'s Benteler Steel & Tube Corp. subsidiary led transactions in the metals and mining space during the week ended July 8, according to a screener on S&P Capital IQ Pro.

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