Creditors propose Samarco takeover; Rio Tinto, Turquoise Hill amend funding plan

TOP NEWS IN METALS & MINING

* The financial creditors of Samarco Mineração SA, the bankrupt joint venture owned by Vale SA and BHP Group Ltd., proposed to take over the company under an alternate restructuring plan, Reuters reported. Under the plan, most of Samarco's US$4 billion debt would be converted into equity, allowing creditors to hold 90% of the company after the restructuring.

* Rio Tinto Group unit Rio Tinto International Holdings Ltd. agreed to amend its funding arrangement with majority-owned Turquoise Hill Resources Ltd. to provide up to US$400 million in short-term early advances.

➤ 'Almost everybody in Ukraine wants us to restart' – graphite miner exec

Ukrainian government officials from the prime minister down are keen for strategically important projects such as Volt Resources Ltd.'s Zavalievsky graphite mine to restart, but Managing Director Trevor Matthews sees logistical and financial barriers.

➤ Macroeconomic headwinds hit copper market

S&P Global Commodity Insights' Metals and Mining Research team trimmed its London Metal Exchange three-month copper price forecast to US$9,577 per tonne for 2022, following a reduction in global copper demand growth year over year from 3.0% to 2.8%.

➤ Dozens of US nuclear plants could qualify for DOE credit program

Dozens of reactors could be eligible for the U.S. Department of Energy's new US$6 billion program to preserve financially vulnerable nuclear plants in competitive markets, according to an analysis of S&P Global Market Intelligence data.

DIVERSIFIED

* Woodside Petroleum Ltd.'s shareholders approved the planned merger with BHP's oil and gas assets.

* The Russian government allowed 15 companies to remain listed on overseas bourses, exempted from a new law requiring Russian companies to delist their depositary receipts to lessen the impact of foreign nations on their businesses, Reuters reported, citing the finance ministry. The list includes nickel miner PJSC MMC Norilsk Nickel, gold miner PJSC Polyus and steelmakers PJSC Novolipetsk Steel, PJSC Severstal and Mechel PAO.

BASE METALS

* A subsidiary of ENEOS Holdings Inc.'s JX Nippon Mining & Metals Corp. plans to sell its 49.9% stake in LS-Nikko Copper Inc. to joint venture partner LS Corp. for 930 billion South Korean won, Reuters reported.

* Chinese battery-material maker CNGR Advanced Material Co. Ltd. plans to invest in three new nickel projects in Indonesia worth US$420 million each, or about US$1.26 billion in total, amid rising demand for electric vehicles, Reuters reported, citing a company filing with the Shenzhen Stock Exchange.

* The Peruvian government once again failed to broker negotiations to resolve the conflict between MMG Ltd.'s suspended Las Bambas copper mine and members of the local communities. Meanwhile, Las Bambas workers marched in Lima, Cusco and Arequipa, demanding the government put an end to the conflict, La República reported.

PRECIOUS METALS

* Agnico Eagle Mines Ltd. has agreed to increase its shareholding in Cartier Resources Inc. to 17.7% from 13.3%.

* Barrick Gold Corp. completed an amendment and restatement of its US$3.0 billion revolving credit facility. The amendments include the establishment of sustainability-linked metrics.

BULK COMMODITIES

* Sociedad Química y Minera de Chile SA booked a net income of US$796.1 million during the March quarter, surging year over year from US$68.0 million.

* Nutrien Ltd. is studying to build the world's largest clean ammonia production facility in Geismar, La. The US$2 billion plant is expected to produce 1.2 million tonnes of clean ammonia per year. Nutrien and Denbury Inc.'s Denbury Carbon Solutions LLC reached an agreement for the transport and storage of CO2 captured from the proposed facility.

* Two workers unions in Samarco Mineração filed for a restructuring plan, which was reportedly backed by Samarco, Vale and BHP shareholders, a source familiar with the matter told Reuters.

* Chile's Supreme Court denied appeals filed by communities and environmentalists against Andes Iron SpA's Dominga iron ore project, saying "there is no final judgment that can be reviewed by this court," Reuters reported.

* Steel pipe producer Vallourec SA will begin a two-year process to close its manufacturing sites in Germany after failing to secure a buyer for the assets, Reuters reported.

SPECIALTY

* Bannerman Energy Ltd. agreed to purchase a 41.8% stake in TSX Venture Exchange-listed Namibia Critical Metals Inc., which owns the Lofdal heavy rare earths project in Namibia.

INDUSTRY NEWS

* Mining exports in Peru reached US$9.58 billion in the first quarter, up 9.7% year on year, according to Ministry of Energy and Mines data, El Comercio 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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