21 Mar, 2022
Russia may ban uranium exports to US; Posco to invest US$4B in Argentina lithium
TOP NEWS IN METALS & MINING
* Russia is considering banning uranium exportation to the U.S., Reuters reported, quoting Russian Deputy Prime Minister Alexander Novak from a TASS news agency report. The ban would be retaliation for the financial sanctions imposed by the U.S. after Russia invaded Ukraine, according to Novak.
* South Korea's Posco Holdings Inc. will invest US$4 billion to develop a new lithium mining project in Argentina's Salar de Hombre Muerto, Reuters reported. The project is expected to initially produce 25,000 tonnes per year of lithium hydroxide, ramping up to 100,000 tonnes per year.
➤ LME Nickel market chaos clouds pricing, chills investment
The halting pace of trades at the nickel market at the London Metal Exchange has locked up the broader nickel market and reduced investment just as buyers seek to move away from Russian sources in the wake of that country's invasion of Ukraine.
➤ High energy prices turn metals supply chain into global inflation engine
An energy price spike triggered by Russia's invasion of Ukraine has laid bare supply chain vulnerabilities that could curb global growth in the near term.
➤ Zijin Mining sees supply disruption, exchange rate risks from Russian war
The overall business impact of the Russia-Ukraine crisis on Zijin Mining Group Co. Ltd. is still manageable, though the company's Russian subsidiary is facing supply disruptions and liquidity and exchange rate risks.
DIVERSIFIED
* Rio Tinto Group's US$2.65 billion bid to consolidate ownership of Turquoise Hill Resources Ltd. was the highest valued metals and mining transaction during the week ended March 18, according to a screener on S&P Capital IQ Pro.
* First Quantum Minerals Ltd. will collaborate with Chariot Ltd. and Total Eren SA for the development of a 430-MW solar and wind power project for its operations in Zambia, which includes the Kansanshi copper-gold mine.
BASE METALS
* Glencore PLC's Glencore International AG entered a binding offtake agreement for 100% of the copper concentrate produced from KGL Resources Ltd.'s Jervois project in Australia's Northern Territory over a minimum of five years from the start of commercial production.
* Volkswagen AG's Chinese subsidiary, Volkswagen Group China, will form joint ventures with Zhejiang Huayou Cobalt Co. Ltd. and Tsingshan Holding Group Co. Ltd. that will focus on the production of nickel and cobalt as raw materials in the supply chain for electric vehicle batteries, Dow Jones Newswires reported.
* Nexa Resources SA resumed operations at its Atacocha San Gerardo zinc mine in Peru, as local community protests ended and a road blockade was lifted.
* Jinchuan Group International Resources Co. Ltd. expects full-year 2021 attributable net profit of between US$115 million and US$125 million, increasing from US$29.9 million in 2020, primarily due to higher commodity prices and the partial reversal of impairment losses in prior years related to the company's operations in the Democratic Republic of Congo.
PRECIOUS METALS
* Canada's Agnico Eagle Mines Ltd. is seeking to add Australian mining projects to its portfolio to complement its Fosterville gold mine in Victoria and maintain a long-term presence in the country, The Australian Financial Review reported, citing the company's president, Ammar Al-Joundi.
BULK COMMODITIES
* Evraz PLC's coupon payment for US$18.9 million on a US$704.1 million Eurobond note, due on March 21, was blocked amid issues relating to the sanctioning of Russian oligarch Roman Abramovich, Dow Jones Newswires reported.
* Steag GmbH will supply Thyssenkrupp AG's steel facility in Duisburg with hydrogen and oxygen from its Duisburg-Walsum facility, which will contribute to the decarbonization of Thyssenkrupp's operations.
* The start of commercial operation at PT Aneka Tambang Tbk and PT Indonesia Asahan Aluminium (Persero)'s US$831.5 million alumina smelter was delayed until at least July 2024, due to a dispute between the facility's contractors over work items and contract value, Reuters reported.
* Cleveland-Cliffs Inc. will fully redeem the outstanding US$607 million of its 9.875% senior secured notes due October 2025.
* New Hope Corp. Ltd. booked an after-tax net profit of A$330.4 million for the first half of its fiscal 2022, swinging year over year from a net loss of A$55.4 million. The company declared a fully franked interim dividend of 17 cents per share, increasing from 4 cents per share, and will distribute a fully franked special dividend of 13 cents per share.
* Salzgitter AG will supply Volkswagen with low carbon dioxide steel upon the start of its production by the end of 2025.
* A prefeasibility study on Metallica Minerals Ltd.'s Cape Flattery silica sand project in Australia estimated a pretax net present value of A$290 million, discounted at 8%, with a 34.9% internal rate of return.
* Grange Resources Ltd.'s prefeasibility study on the Southdown magnetite project in Western Australia defined a net present value, discounted at 10%, of A$243 million, and a 12.4% internal rate of return.
SPECIALTY
* China's Contemporary Amperex Technology Co. Ltd. increased prices for some battery products, citing increased raw material costs, Reuters reported.
INDUSTRY NEWS
* Major metals and commodities prices pulled back from record highs, but the Russia-Ukraine crisis and China's COVID-19 outbreak will continue to keep the market volatile. Analysts said it is too soon to price out a war premium.
* Publicly traded companies in the U.S. would have to annually report the greenhouse gas emissions for which they are directly responsible — known as Scope 1 and 2 emissions — under sweeping climate-risk disclosure regulations the SEC proposed March 21. The rule would also apply to international companies with operations in the U.S.
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