Norilsk Nickel, Rusal may merge; Simandou halted as Rio Tinto misses deadline

TOP NEWS IN METALS & MINING

* Russian businessman Vladimir Potanin, the top shareholder of PJSC MMC Norilsk Nickel, is ready to discuss a possible merger between the mining giant and UC Rusal IPJSC to help withstand sanctions against Russia, Bloomberg News and Reuters reported, citing Potanin's interview with Russia's RBC TV channel.

* The Guinean government ordered the suspension of the long-stalled Simandou iron ore development after Rio Tinto Group and Winning Consortium Simandou missed an extended deadline to formalize a joint venture agreement, Reuters reported, citing a letter from Mines Minister Moussa Magassouba.

➤ Battery scrap projection for recycling plummets – Circular Energy Storage exec

Less metal-intensive scrap material will be available to battery recyclers than previously anticipated by consultancy Circular Energy Storage, largely because of improving quality control.

➤ South Korean zinc deal leads metals, mining M&A for week ended July 1

An US$87.8 million deal in South Korea topped the metals and mining transactions for the week ended July 1.

DIVERSIFIED

* Vedanta Ltd.'s aluminum production increased 3% year over year to 565,000 tonnes in the first quarter of its fiscal 2023. Mined metal production grew 14% to 252,000 tonnes for Vedanta's Zinc India unit and rose 11% to 68,000 tonnes for Zinc International. Iron ore output dropped 14% to 1.3 million tonnes, steel output fell 7% to 269,000 tonnes, ferrochrome output was flat at 18,000 tonnes and copper cathodes output jumped 37% to 38,000 tonnes.

BASE METALS

* A court-appointed administrator managing the Tenke Fungurume copper-cobalt operation in the Democratic Republic of Congo ordered majority owner China Molybdenum Co. Ltd. to halt marketing and export of the mine's products, Reuters reported.

* Glencore PLC ordered a fleet of battery-electric equipment and automation solutions from Epiroc for the Onaping Depth project within the Sudbury integrated nickel operation in Ontario.

* The global copper dispersion index, a measure of smelter activity, fell to 46.7 in June from 49.4 in May after Chilean state-owned Codelco suspended its Ventanas smelter in June, Reuters reported, citing a statement from commodities broker Marex and satellite analytics service SAVANT.

PRECIOUS METALS

* Hecla Mining Co. signed a definitive agreement to acquire shares in Alexco Resource Corp. that it does not already own in an all-share deal valued at 47 U.S. cents per Alexco share. Wheaton Precious Metals Corp. will also receive US$135 million in Hecla stock for terminating its silver stream from Alexco's Keno Hill property in Canada's Yukon Territory, subject to the closing of Hecla's Alexco takeover.

* Newmont Corp. reached a profit-sharing agreement with the union at its Peñasquito gold mine in Mexico that includes an uncapped bonus of up to 10%, or about US$70 million based on 2021 results.

* Genesis Minerals Ltd. agreed to acquire Dacian Gold Ltd. and its Mount Morgans gold operation in Western Australia in an all-share deal valued at A$111 million.

* St Barbara Ltd. and Genesis Minerals recommenced merger talks to consolidate Western Australia's Leonora Province and unlock synergies in the region.

* I-80 Gold Corp. has started shipping ore from the Granite Creek gold mine in Nevada to the Twin Creeks processing facility as part of a toll milling agreement. Twin Creeks is owned by Barrick Gold Corp. and Newmont Corp.'s Nevada Gold Mines LLC joint venture.

* Resolute Mining Ltd. welcomed the decision of the Economic Community of West African States to lift sanctions on Mali, where the company operates the Syama gold mine, after the interim government proposed a 24-month transition to democracy.

* Australia and New Zealand are imposing a ban on gold imports from Russia following Moscow's invasion of Ukraine.

BULK COMMODITIES

* Tata Steel Ltd.'s Indian steel production rose 6% year over year to 4.9 million tons in the first quarter of its fiscal 2023 while deliveries slipped 2% to 4.1 Mt as it moderated exports after a 15% export duty was imposed.

* Whitehaven Coal Ltd. will defend itself against legal proceedings that seek to cancel a key approval for the Narrabri Stage 3 expansion project in New South Wales, Australia, on climate change-related grounds.

* China may reduce its steel output cut target for 2022 by up to 30 million tonnes, S&P Global Platts reported, citing industry sources.

SPECIALTY

* A definitive feasibility study for Mkango Resources Ltd.'s Songwe Hill rare earths project in Malawi outlined a posttax net present value of US$559.0 million based on a 10% discount, with a 31.5% internal rate of return and a 2.5-year payback period from start of full production.

INDUSTRY NEWS

* The U.S., Europe, China and other large economies have boosted short-term coal purchases to meet electricity demand despite previous pledges to reduce coal consumption to fight climate change, The Wall Street Journal reported.

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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