Glencore to pay US$1.06B to settle probes; Huayou to invest US$300M in Arcadia

TOP NEWS IN METALS & MINING

* Glencore PLC disclosed that it will pay to resolve bribery and market manipulation investigations by officials in the U.S., U.K. and Brazil, including US$1.06 billion in penalties.

* China's Zhejiang Huayou Cobalt Co. Ltd. plans to invest US$300 million to develop its newly acquired Arcadia lithium mine in Zimbabwe, Reuters reported, citing company documents. The company expects the Arcadia project to deliver its first batch of lithium-bearing minerals spodumene and petalite in 2023.

➤ US lithium imports up 69% YOY in Q1 as automakers build out EV battery capacity

Much of the lithium imported into the U.S. goes toward making industrial products, such as glass or lubricants, but an increasing proportion is going to build the rechargeable batteries installed in electric vehicles.

➤ Copper discoveries – Declining trend continues

A total of 50 million tonnes of discovered copper has been added since the 2021 analysis of S&P Global Commodity Insights' Metals and Mining Research team. However, this does not alter the trend in declining discoveries over the past decade.

DIVERSIFIED

* Teck Resources Ltd. launched a cash tender offer to purchase up to US$500 million of its 6.250% notes due 2041, 6.125% notes due 2035, 6.000% notes due 2040, 5.400% notes due 2043, 5.200% notes due 2042, and 3.900% notes due 2030.

BASE METALS

* Zambia's Mopani Copper Mines PLC plans to resume cobalt production after stopping over a decade ago, Reuters reported, citing Brian Musonda, chief investment officer of Mopani's parent company, ZCCM Investments Holdings PLC.

* The Peruvian government and the Fuerabamba community concluded initial talks to resolve concerns related to MMG Ltd.'s Las Bambas copper mine, with community leader Edison Vargas noting "progress" was made to solve the crisis, Reuters reported.

* The U.S. District Court for the District of Arizona ruled that Hudbay Minerals Inc.'s Copper World project is not connected with the Rosemont project under the National Environmental Policy Act, and is not subject to review by the Army Corps of Engineers. The 9th U.S. Circuit Court of Appeals recently upheld a 2019 ruling that overturns the Forest Service's approval of the Rosemont project.

PRECIOUS METALS

* Anglo American PLC subsidiary Anglo American Platinum Ltd. reached a new five-year wage deal with the Association of Mineworkers and Construction Union in South Africa, effective from July, Bloomberg News reported, citing Jeff Mphahlele, the union's general secretary.

* Belo Sun Mining Corp. received an interim suspension order for the construction license and environment license for its Volta Grande gold project in Brazil, which would be lifted once the company carries out a socio-environmental study of the community residing at least 10 kilometers from the operation. The company intends to file an appeal against the order.

* Karora Resources Inc. agreed to purchase the Lakewood Mill gold processing facility, located approximately 60 kilometers from its Beta Hunt mine in Western Australia, for A$80 million in cash and shares. The cash component of the purchase of the Lakewood Mill will be partially funded by the proceeds of a C$50 million bought deal offering at C$4.80 per share.

BULK COMMODITIES

* Swedish truck-maker AB Volvo is introducing fossil-free steel produced by SSAB AB into its trucks, with its range of heavy-duty electric trucks the first to include it in the third quarter, Dow Jones Newswires reported.

* Tata Steel Ltd. may have to review its production targets if the export taxes on some steel products, which were suddenly imposed by India, will remain in place for an extended period, Reuters reported, citing CEO T.V. Narendran.

* India flagged an 11.1% cut in the domestic coal that power plants should expect to receive in June, and requested certain utilities to increase imports as power demand continues to surge, according to a memo seen by Reuters.

* State-owned Coal India Ltd. will open the Siarmal coal mine in Odisha state this year, in a bid to meet the nation's rising coal demand for electricity generation, Reuters reported. The mine will start production in the fourth quarter at an annualized rate of 2 million tonnes to 5 Mt, then increase to 50 Mt in about five to seven years.

* Thungela Resources Ltd. is moving to repair the impact of a February toxic spill from an old coal mine in South Africa's Mpumalanga province, following a government order that threatened legal action if it failed to do so, Bloomberg News reported, citing CEO July Ndlovu.

* Ternium SA plans to invest around 1.3 billion Brazilian reais to refurbish one of the two blast furnaces at its Companhia Siderurgica do Atlantico steel mill facility in Brazil's Rio de Janeiro state, which is scheduled to start in 2025, Reuters reported.

* Crude steel production for the 64 countries reporting to the World Steel Association totaled 162.7 million tonnes in April, down 5.1% year over year.

* An updated resource estimate for Genmin Ltd.'s Baniaka iron ore project in Gabon outlined a 168% increase to 696.7 million tonnes grading 39.3% iron.

SPECIALTY

* Rio Tinto Group will restart its QMM mineral sands mine in Madagascar after a five-day halt, as the company reached a deal with demonstrators who set up roadblocks at the site, Reuters reported.

* JSC NAC Kazatomprom's subsidiaries were excluded from a draft list of companies to be privatized in Kazakhstan, Dow Jones Newswires reported.

* Newfield Resources Ltd. generated gross revenue of US$1.4 million at an average realized price of US$269 per carat in the sale of the first diamonds produced from the Tongo mine in Sierra Leone.

INDUSTRY NEWS

* The London Metal Exchange introduced new certifications for LMEpassport, its digital credentials register, that allows producers to report on a broader range of sustainability metrics.

* Brazilian President Jair Bolsonaro may ratify a decree to increase fines for environmental crimes, which may lead to more protective measures for the Amazon rainforest, Reuters reported, citing two sources familiar with the matter.

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