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TOP NEWS
Glencore wins dispute against Australian Taxation Office
A federal court in Australia ruled in favor of Glencore PLC in its dispute with the Australian Taxation Office, which alleged that the company did not pay market rates for purchase of copper from its CSA mine in New South Wales, Reuters reported. The judge ruled that the mining giant's payment terms for the copper concentrate were "within an arm's length range." According to The Australian, Justice Jennifer Davies awarded Glencore costs against the ATO and dismissed its A$242.9 million tax charge against the miner.
Tata Steel flags hundreds of layoffs after deciding to close 2 UK businesses
Tata Steel Ltd. plans to shut down its loss-making Orb Electrical Steels unit in Newport, south Wales, U.K., with the potential for up to 380 job losses. The company also plans to shutter its Wolverhampton Engineering Steels Service Centre in the U.K., which employs about 26 people, as it was unable to find a buyer. Tata Steel Europe Ltd. signed an agreement with Japanese steel giant JFE Shoji Trade Corp. for the sale of its unit Cogent Power Inc. in Canada for an undisclosed price, as part of a plan to sell five noncore assets that was announced in May 2018.
New Hope cuts jobs at New Acland coal mine as planned expansion remains stalled
New Hope Corp. Ltd. followed through on its threat to slash half of its workforce at the New Acland coal mine in Queensland, Australia after the state government did not respond to the company's ultimatum over the long-delayed stage-three expansion of the site. In a report by The Australian Financial Times, Queensland Premier Annastacia Palaszczuk and Resources Minister Anthony Lynham reiterated that the approvals could not be given as they still await a court decision on an appeal against the expansion.
DIVERSIFIED
* Incitec Pivot Ltd. unit Dyno Nobel Ltd. will invest A$25 million over the next five years towards the development of a blast technology that will improve the safety and productivity at BHP Group's Australian operations. The alliance also aims to use environmentally-friendly measures, including the elimination of the use of palm oil in the explosives manufacturing process.
BASE METALS
* Nickel prices on the London Metal Exchange surged to a five-year high of US$18,850 per tonne as a result of Indonesia's decision to expedite restrictions on nickel ore exports from January 2022 to the end of 2019, Reuters reported. Indonesia may be able to make up for the expected shortfall in nickel pig iron supplies caused by the export ban from next year by boosting its own capacity.
* Orion Minerals Ltd. unit Repli Trading No. 27 (Pty) Ltd. was granted a mining right over its portion of the Prieska deposit, part of its Prieska copper-zinc project in South Africa, clearing the way for construction to start. The company also entered a memorandum of agreement with Byrnecut Offshore (Pty) Ltd. for underground mine development and production at Prieska. Meanwhile, Orion secured an option to acquire up to 73% of the highly prospective Masiqhame prospecting right near the Prieska project.
* Apollo Minerals Ltd. may earn up to 80% interest in the Kroussou zinc-lead project in western Gabon from Trek Metals Ltd. by spending A$4.0 million on the project within five years.
* Panoramic Resources Ltd. revised its fiscal 2020 production guidance due to lower output in July and August and a review of production schedules at the Savannah project and the Savannah North orebody in Western Australia. The company now expects to produce 9,500 tonnes to 10,000 tonnes of nickel, 5,800 tonnes to 6,000 tonnes of copper, and 600 tonnes to 650 tonnes of cobalt. The company also agreed to halve its A$40 million debt towards Macquarie Bank Ltd. and repay the A$20 million from new equity raised in a pro rata rights issue.
* Separately, Panoramic amended the sale agreement for its Thunder Bay North platinum group metals project in Ontario, with the C$9 million consideration split into four tranches.
* Indonesia will impose big fines on companies that fail to meet targets on the construction of new processing facilities, The Straits Times reported. The fines may be equivalent to 20% of the value of the country's unprocessed mineral exports, such as nickel ore, raw bauxite and copper, in the past six months, the report said.
* Over 650 GW of new onshore and 130 GW of new offshore wind capacity to be installed between 2018 and 2028 is expected to consume over 5.5 million tonnes of copper, according to an analysis by Wood Mackenzie.
* Kavango Resources PLC signed a memorandum of understanding with LVR GeoExplorers (Pty.) Ltd. for the right to earn in up to a 90% interest in two prospecting licenses in the Botswana section of the Kalahari copper belt.
PRECIOUS METALS
* The new conservative Greek government is expected to soon issue permits for Eldorado Gold Corp.'s Skouries gold project that would allow the project to proceed, Reuters wrote citing the energy ministry. Eldorado halted construction at Skouries in November 2017 after starting in 2013 due to delays in receiving environmental permits.
* A landowner group in New Ireland, Papua New Guinea said villagers will forcibly shutter Newcrest Mining Ltd.'s Lihir gold operation if the company does not reinstate Craig Jetson as the mine's executive general manager by Sept. 10, Radio New Zealand reported.
* Highland Gold Mining Ltd.'s net profit in the first half jumped to US$45.7 million, from US$28.6 million a year ago. Revenue in the six months swelled to US$174.7 million, from US$146.9 million, as gold sales climbed to 142,609 ounces from 121,174 ounces.
* AuStar Gold Ltd. agreed to acquire the under administration Centennial Mining Ltd., which owns the A1 gold mine and the Maldon cyanide-in-leach processing plant in Victoria, Australia.
* Jervois Mining Ltd.'s A$3.6 million sale of its remaining royalty interests, including the Bullabulling gold project in Western Australia, to Franco-Nevada Corp. lapsed.
* Metalicity Ltd. expanded the Kookynie gold project in Western Australia to over 11,000 hectares after securing options over three exploration tenements.
* Rex Minerals Ltd. reported a maiden inferred resource estimate for the Hog Ranch gold project in Nevada of some 830,000 ounces contained in 44 million tonnes grading 0.6 g/t gold, at a 0.3 g/t gold cutoff grade.
* Breaker Resources NL's indicated resource at the Bombora gold deposit within the company's Lake Roe gold project in Western Australia increased 28.7% to 803,000 ounces within 18.4 million tonnes grading 1.4 g/t gold, at a 0.5 g/t cutoff. The total indicated and inferred resource at the deposit now stands at 23.2 million tonnes grading 1.3 g/t gold for 1.0 million ounces.
* Bardoc Gold Ltd. executed a deal to acquire prospecting license P24/4698 for A$60,000 in cash, plus 3 million share options.
* India's seizures of smuggled gold in the June quarter jumped 23.2% yearly to 1,197.7 kilograms, Reuters reported, citing an unnamed government official. Gold smuggling is expected to rise further in the coming months due to an increase in gold import taxes, the report said.
* Tajiri Resources Corp. exercised its option to acquire Middle Island Resources Ltd.'s Reo gold project in Burkina Faso.
* Asia Broadband Inc.'s Asia Metals Inc. unit is looking to acquire gold assets in South America, Central America and Mexico, Global Mining Review wrote.
BULK COMMODITIES
* Rio Tinto filed an arbitration case against GFG Alliance Ltd.'s Liberty House Ltd. over US$50 million in unsettled final payments related to the US$500 million sale of the Dunkerque aluminum smelter in France, London's Financial Times reported, citing sources familiar with the matter and a Rio Tinto statement.
* Pacific Bauxite Ltd.'s sale of residual interests in milestone payments and royalties from the Mount Richardson, Rogetta and Golden Camel projects is now unconditional. The transaction is expected to complete on or around Sept. 9.
* The Tanzanian mining commission ordered Tancoal Energy Ltd. to start charging royalty to customers on their cost of transporting coal from the Tancoal mine. The company said the agency will not issue coal transportation permits after Sept. 15 if the royalty is not implemented.
* OM Holdings Ltd. secured an initial 10% interest in the Bryah Basin manganese joint venture with Bryah Resources Ltd.
* Minergy Ltd. started mining operations at its Masama coal project in Botswana, with first commercial sales expected this month, Mining Weekly reported.
SPECIALTY
* Lucapa Diamond Co. Ltd. achieved record monthly diamond production in August at the Lulo mine in Angola and the Mothae mine in Lesoto. Production at Lulo totaled 3,180 carats, while the Mothae mine's output reached 2,911 carats.
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INDUSTRY NEWS
* China filed a complaint with the World Trade Organization against the U.S. over its import duties, Reuters said, citing the Chinese commerce ministry. The recent round of U.S.-imposed tariffs breached the consensus struck between the U.S. and Chinese leaders in Japan, the commerce ministry reportedly said.
* Hurricane Dorian made landfall on the eastern end of Grand Bahama Island late Sept. 1 and continues to threaten the southeastern coast of the U.S. Dorian will move "dangerously close" to the Florida east coast the night of Sept. 2 through the evening of Sept. 4.
* More than 260,000 people are at risk of losing their jobs after the expiration of 329 mining leases in India on March 31, 2020, Business Standard reported.
* The plan of South Africa's labor registrar to cancel the registration of the Association of Mineworkers and Construction Union did not push through, Reuters reported. The union is now in the process of meeting government requirements, the report said.
* The Zambia Chamber of Mines welcomed a proposed mining cooperation agreement between Zambia and Argentina, Xinhua News Agency reported.
* Cameroon banned semi-mechanized small-scale mining at riverbeds, and the use of toxic chemicals like mercury or cyanide in ore processing, Business in Cameroon wrote.
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