Valeto defend against 155 billion reais lawsuit
In a reply to the latest 155 billion Brazilian reais lawsuitrelated to the Samarcodisaster, Vale SA saidthat the lawsuit amount filed by federal prosecutors was based upon an "unsubstantiated"comparison with the costs of BP's Deepwater Horizon oil spill in the Gulf of Mexicoin 2010. The miner said it will adopt all necessary measures to defend itself throughlegal means.
RioTinto caps iron ore production at 360 million tonnes
Rio Tintodoes not plan to exceed the 360-million-tonnes mark for annual iron ore production,BusinessDay reported,citing the company's Chairman Jan du Plessis. The company also defended its planto build the Resolutioncopper mine in Arizona, saying that the project will be economically beneficialto both the company and the local community.
Newcrest MiningLtd. has signed agreements to extendthe term of its unsecured bilateral bank lending facilities totaling US$2.4 billion.The renewed facility agreements are with 12 bank lenders who will each commit US$200million. The facilities will have tenors of between three and five years includingUS$1.20 billion in fiscal 2019, US$300 million in fiscal 2020, and US$900 millionin fiscal 2021.
* In a reply to the latest 155 billion Brazilian reais lawsuitrelated to the Samarcodisaster, Vale SA saidthat the lawsuit amount filed by federal prosecutors was based upon an "unsubstantiated"comparison with the costs of BP's Deepwater Horizon oil spill in the Gulf of Mexicoin 2010. The miner said it will adopt all necessary measures to defend itself throughlegal means.
* BHP BillitonGroup and Vale joint venture SamarcoMineração SA could pay a lot less than the 155 billion reais requestedin the lawsuit by federal prosecutors against the company over the Mariana damscollapse on Nov. 25, accordingto Notícias de Mineração. A precedent is the outcome of another large environmentalaccident in Brazil, Chevron, in which the U.S. oil company was fined 40 billionreais for the oil spill in Campos, Rio de Janeiro state, in 2011, but ended up payingonly 95 million reais.
* Union workers of BHP Billiton's Spence copper mine in Chile suspended a strikethe same day after receiving a proposal for dialogue from the company. Accordingto Reuters, the workers did not rule out resuming the strike if a solution to theirsocial and labor demands is not achieved, daily La Tercera reported.
* Codelcorejected criticism from the Calama Farmers Association against the environmentalpermit granted by regulator SEA to its US$5.3 billion RT Sulfuros expansion projectof Radomiro Tomicmine in Chile. Farmers filed an appeal claiming that the project may compromisethe health of the community in Calama, daily Pulso reported.
* Amerigo ResourcesLtd.'s net loss widenedto US$4.4 million in the first quarter, from US$4.1 million a year ago, while revenueincreased to US$19.3 million from US$17.7 million as lower copper prices offsethigher production.
* Newcrest MiningLtd. has signed agreements to extendthe term of its unsecured bilateral bank lending facilities totaling US$2.4 billion.The renewed facility agreements are with 12 bank lenders who will each commit US$200million. The facilities will have tenors of between three and five years includingUS$1.20 billion in fiscal 2019, US$300 million in fiscal 2020, and US$900 millionin fiscal 2021.
* Metals X Ltd.'smove to acquire copper producer AdityaBirla Minerals Ltd. and spin off its gold and base metals assets mayprove improve the value of the company's gold assets, The Australian Financial Review wrote,citing analysts. "A spin-out of the purely gold assets to a pure gold vehiclewould likely attract this gold premium and realize value for shareholders,"Somers and Partners analyst Duncan Hughes said.
Franco-Nevada Corp.posted first-quarter net income of US$30.0 million, up from net income of US$19.2million reported a year ago. Revenue, meanwhile, jumped 21% year over year to a record US$132.0 million. Thecompany's mineral assets also yielded a record 106,621 gold equivalent ounces duringthe period, representing a 25% increase on a yearly basis. The board declared aquarterly dividend of 22 cents per share, up from the previous 21 cents per share,marking the ninth consecutive annual dividend increase
* Yamana Gold Inc.posted first-quarter net earnings from continuing operations of US$38.4 million,swinging from a net lossof US$135.2 million booked a year ago. Revenue, however, was down at US$430.3 millionfrom US$458.1 million booked a year ago. Gold production totaled 308,061 ouncesduring the period, up 3% year over year.
* The West Australian Department of Mines and Petroleum development of 's 60%-ownedPenny's Find goldproject. The company intends to mine initially by open-pit, which will be likelyfollowed by underground development. Empire expects open-pit mining to start frommid-year and first gold production in the second half of this year.
* Orvana MineralsCorp. revised its productionguidance for fiscal 2016, narrowing gold output forecast at the mine from 43,000 ouncesto 48,000 ounces, to 43,000 ounces to 46,000 ounces, and decreasing guidance atDon Mario from 24,000ounces to 27,000 ounces of gold, to 20,000 ounces to 21,000 ounces of gold.
* The tender offers to resume operations in the Andacollo goldmine in Neuquen province, Argentina, will be opened on May 9, said regional miningcompany Cormine SEP president Martín Irigoyen. Potential investors allegedly interestedin the project include Latin AmericanMinerals Inc., TridentGold Corp. Ltd., and GoldenStar Resources Ltd., daily OnceDiario reported.
* Kapuskasing GoldCorp. entered into a memorandumof understanding with the Flying Post and Mattagami First Nations withrespect to its recently acquired West Keefer property in northern Ontario. The MOUenvisages long-term cooperation between the parties, and also signals a commitmentfrom Kapuskasing to identify business, employment and training opportunities forthe citizens of the First Nations communities to take part in the company's explorationactivities.
* Alecto MineralsPlc was awardeda further three-year term for its Gassel-Manere and Arae mineral exploration permits,which form the Kerbouleproject, in Burkina Faso. In total, the permits have an initial independent in-situgold resource assessment of 6.2 million tonnes grading at 1.16 g/t of gold for 230,758ounces of gold, at a cut-off grade of 0.5 g/t.
* Noricum GoldLtd. has kickedoff a 13-hole diamond drill program at Tsitel Sopeli, the second of the twopriority gold targets identified at the 861-square-kilometer Bolnisi project in the Republic of Georgia. Drillingwill target outcropping secondary quartzite gold mineralization to generate a resourcethat will enable mine planning to commence at this second starter pit target.
* Red Rock ResourcesPlc completed the acquisitionof 9.6%, or 6,006,587 shares, of GoldStoneResources Ltd. and issued 21,315,971 of its own shares to In addition, RedRock will issue 21,315,971 options to Unity, giving it the right within two yearsto exercise each option into a new share at a price of 66 British pence per share.
* China is planning to changeprocedures for cross-border trade of gold and gold products by allowingcompanies to apply for a single permit that can be used for up to 12 shipments,according to a joint statement from the People's Bank of China and the General Administrationof Customs. The new rules will be effective June 1 and will be applicable for testingin Beijing, Shanghai, Guangzhou, Qingdao, Nanjing and Shenzhen.
* Primero MiningCorp. posted a net lossof US$13.2 million for the first quarter of 2016, swinging from a year-ago profitof US$3.6 million. The loss included the impact of foreign exchange rate changeson deferred tax balances and an adjustment to remove the normalization of inventorycosts at the San Dimasmine, after taxes. Revenue fell to US$50.5 million, compared to US$73.3 milliona year earlier.
* Osisko Gold RoyaltiesLtd. swung to a net lossattributable to shareholders of C$60,000 in the three months ended March from earningsof C$10.3 million reported a year earlier. Revenue, meanwhile, rose to C$15.6 millionfrom C$10.6 million in 2015 as a result of higher in-kind royalties earned.
* Zijin MiningGroup Co. Ltd.'s board proposed that no profit distribution will becarried out for 2015 and there will be no conversion of the capital reserve intoshare capital in a bid to accelerate the progress of the nonpublic issuance of Ashares, Infocast reported. In addition, an interim profit distribution will beproposed for 2016.
* The U.S. District Court for the Eastern District of Pennsylvaniaordered A1 SpecialisedServices and Supplies Ltd. to pay a total of US$201 million to , confirmingthe award issued by the London Court of International Arbitration. The court rulingfollows a dispute between the companies, whereby Implats claimed that A1 defaultedon certain amounts due.
* Arizona MiningInc. completed the acquisitionof Arizona Minerals Inc.and now owns 100% of the Hermosasilver project in Arizona, which includes the Taylor deposit.
* Rio Tintodoes not plan to exceed the 360-million-tonnes mark for annual iron ore production,BusinessDay reported,citing Chairman Jan du Plessis. The company also defended its plan to build theResolution coppermine in Arizona, saying that the project will be economically beneficial to boththe company and the local community.
* Mosaic Co.reported first-quarter net earnings of US$256.8 million, falling from US$294.8 million booked a year earlier. Netsales also fell to US$1.67 billion, from US$2.14 billion last year, reflecting lowerprices, as well as lower potash sales volumes. Company CEO Joc O'Rourke expectsprofitability to improve in the second half of the year.
* Brazilian steelmaker GerdauSA's first-quarter net profit plunged94.8% year over year to 14 million Brazilian reais due to lower operatingincome. Likewise, net sales fell 3.5% year over year to 10.09 billion reais mainlydue to lower shipments by the Brazilian steel division in the domestic market, whichwere partially offset by higher net sales by the North American division when translatedinto Brazilian currency.
* Jindal Steel& Power Ltd.'s board approvedthe sale of its 1,000 MW power plant in India's Chhattisgarh state to The plant has anenterprise value of 65.00 billion Indian rupees. It may sell for as low as 40.00billion rupees, with a rise in valuation dependent on Jindal securing power purchaseagreements.
* Slovakia may consider acquiring a stake in 's steel plant in the countryto save it from closing,Reuters reported, citing Slovak Economy Minister Peter Ziga. The government is seekinga 34% interest in U.S. Steel Kosice, which "would ensure a blocking mechanismso that the state can have a say," the official said.
* Fertoz Ltd.entered a memorandum of understanding to finalize an agreement for the of 2,000 tonnes of phosphaterock per year on or before July 1. The initial three-year contract adds to the previous2,000-tonne sale announced in February and places the company on track to reachits sales target of 10,000 tonnes by end of this year.
* Kommersant and Vedomostireported that Moscow's refusal to keep customs privileges for Ukrainian goods hurtthe Russian nuclear sector. After the abolition of the free trade area with Ukraine,the import duties on steel of 9% to 13% led to a price increase for products ofthe Kramatorsk-based Rosatom's plant Energomashspetsstal. As a result, the state-ownedcorporation Rosatom offered to keep the free trade area regime for its plant inUkraine.
* A day after NewWorld Resources Plc's main coal-mining unit, OKD as, filed a bankruptcy petition, the company that saidas OKD is its only trading subsidiary, the likelyimpact is that the remainder of the group would be "wound up orbroken up in an orderly manner." Shares of the London-listed company have beensuspended from trading on the London Stock Exchange, effective immediately, whileNew World Resources' requests to suspend shares on the Prague Stock Exchange andWarsaw Stock Exchange are currently being processed.
* The U.S. Commerce Department plans to impose preliminary dutieson welded stainless pressure pipe imports from India after determining that theproducts were being dumped at below market prices, Reuters reported.
* British Prime Minister David Cameron said Britain's exit fromthe EU poses severe challenges for the country's steel industry, Reuterswrote. British-made steel, which is commonly sold within the EU's single market,may be subject to tariffs if the country falls outside that market, Cameron noted.
* The world's largest 1,190-carat diamond discovered in overa century is expected to fetch about US$70 million in an auction scheduled to take placenext month in London, Reuters reported, citing international auction house Sotheby's.The diamond was discovered by LucaraDiamond Corp. in Botswana in November 2015.
* Nevada SunriseGold Corp. and ResolveVentures Inc. have entered into a definitive joint venture and option agreement allowing Resolve to earnup to a 50% working interest in the Neptunelithium property in Nevada.
* Saudi Arabia and Sudan will kick off exploring for resources in the Red Sea by 2020. The program,which will include gold, copper and silver, is expected to fetch about US$20 billionin revenues, Reuters reported.
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