BHP's thermal coal exit slows down; Freeport approves US$3B in share buybacks

TOP NEWS IN METALS & MINING

* Record thermal coal prices and shifting investor attitudes have slowed down BHP Group's exit from the fossil fuel business, Bloomberg News reported, citing sources privy to the matter.

* Freeport-McMoRan Inc.'s board approved up to US$3 billion in share buybacks as part of a new program, Dow Jones Newswires reported.

➤ China mining, battery companies sweep up lithium supplies in acquisition blitz

In the face of mounting battery demand from electric vehicle sales, the robust acquisition drive led by Chinese companies in recent years has positioned China with increasing control over the world's lithium market.

➤ China's power crisis, emissions cuts widen global steel output contraction rate

China's falling steel output pushed the global contraction rate from 1.4% per year in August to 8.2% per year in September, analysts from Commonwealth Bank of Australia said.

➤ Calibre's Fiore Gold deal tops metals, mining M&A for week ended Oct. 29

Calibre Mining Corp.'s planned takeover of Fiore Gold Ltd. led metals and mining transactions for the week ended Oct. 29, according to a screener on S&P Capital IQ Pro.

EARNINGS SPOTLIGHT

* The Mosaic Co. swung to attributable earnings of US$371.9 million in the third quarter, from a loss of US$6.2 million in the year-ago period, as net sales increased to US$3.42 billion from US$2.38 billion.

* Nutrien Ltd.'s third-quarter net earnings was US$726 million, swinging from a loss of US$587 million in the same quarter of the previous year. Sales improved 43% to US$6.02 billion from US$4.23 billion.

* Southern Copper Corp. reported an attributable net income of US$867.6 million, or US$1.12 per share, in the three months ended Sept. 30, increasing year over year from US$506.0 million, or 65 cents per share, while net sales improved to US$2.68 billion from US$2.13 billion.

PRECIOUS METALS

* Golden Star Resources Ltd. agreed to a takeover by Chifeng Jilong Gold Mining Co.Ltd. for about US$470 million, Dow Jones Newswires reported.

* The nonbinding letter of intent for Barsele Minerals Corp.s acquisition of Agnico Eagle Mines Ltd.'s indirect 55% stake in the Barsele gold project in Sweden has been terminated.

* The Supreme Court of Western Australia approved the proposed merger of Gascoyne Resources Ltd. and Firefly Resources Ltd.

* QMines Ltd. executed an agreement with a renewable fuel supplier for its Mount Chalmers gold-copper mine in Queensland, Australia. The initiative is expected to reduce Scope 1 diesel emissions from drilling and exploration activities by an initial 20%.

BULK COMMODITIES

* The decision by the U.S. and the EU to replace the Section 232 tariffs on European steel and aluminum imports with a tariff-rate quota was met with mixed market reaction, S&P Global Platts reported. Domestic buyers feared another surge in domestic steel prices, while European steel producers look to increase export prices to the U.S., according to sources.

* Institutional investors representing over US$52 trillion in assets are ramping up pressure on governments to phase out coal-fired power plants and fossil fuel subsidies while calling on leaders to keep global temperatures from rising past 1.5 degrees Celsius above preindustrial times.

* Canada is committing C$1.03 billion in funding to support the global phase-out of thermal coal, help developing countries shift to clean energy alternatives as quickly as possible, and reduce pollution in the oil and gas sector, Prime Minister Justin Trudeau said during the COP26 Summit.

* Alcoa Corp. completed the sale of land and industrial assets in Texas in a transaction valued at US$240 million. The company expects to record a fourth-quarter gain of about US$200 million in other income.

* Worthington Industries Inc.'s steel processing segment inked an agreement to acquire Tempel Steel Co., a manufacturer of precision motor and transformer laminations for the electrical steel market, for US$225 million plus the assumption of certain liabilities.

* Materion Corp. completed its acquisition of H.C. Starck Solutions' electronic materials business for US$380 million in cash.

SPECIALTY

* Ganfeng Lithium Co. Ltd. inked a contract with Tesla Inc. to supply the electric-car maker with battery products from 2022 to 2024.

* Lithium Americas Corp. made an offer for about US$400 million to acquire Millennial Lithium Corp. which is currently being pursued by China-based Contemporary Amperex Technology Co. Ltd., Dow Jones Newswires reported.

INDUSTRY NEWS

* President Joe Biden took the stage at the high-stakes COP26 climate summit in Glasgow, Scotland, seeking to assure the world that the U.S. is tackling greenhouse gas emissions head-on even as his policies have been scaled back by Congress and could be blocked by the U.S. Supreme Court.

* Mining companies in Peru have called on the government to take action to stop ongoing protests against the sector, which most recently resulted in the suspension of operations at the Antamina copper-zinc mine, Reuters reported.

S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.

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