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Rio Tinto ups Q2 iron ore output; Gold Fields flags rise in H1 earnings; RUSAL selling Jamaican business for US$299M

Industry Top Trends 2021: Metals and Mining

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020


Rio Tinto ups Q2 iron ore output; Gold Fields flags rise in H1 earnings; RUSAL selling Jamaican business for US$299M

TOP NEWS

RioTinto witnessed higher production across most of its portfolio in thesecond quarter, with the most notable increase coming from its bauxiteoperations. Meanwhile, second-quarter iron ore production rose 8% to 80.9million tonnes and shipments shifted up 6% to 82.2 million tonnes compared to ayear earlier.

Gold FieldsLtd. expects higherearnings in the first half, driven by a 3% year over year increasedin the U.S. dollar gold price and lower net operating costs in Australiandollar and South African rand.

United Co.RUSAL Plc agreed tosell its shuttered Alumina Partners of Jamaica business to China'sstate-owned Jiuquan Iron and Steel(Group) Co. Ltd. for US$299 million as it sells assets to cut debt.

DIVERSIFIED

* Credit Suisse downgradedits recommendation on GlencorePlc stock to neutral from outperform, but increased the targetprice to 200 pence per share from 160 pence per share, Sharecast reported.According to Metal Bulletin, thedowngrade is on the back of the company's exposureto copper as Credit Suisse analysts remain negative on the metal, given its"subdued demand and healthy mine supply growth." The Swiss bank upped the target price as it expectsthe British pound to fall against the U.S. dollar.

* Kazakhstan-focused diversified miner Eurasian ResourcesGroup, formerly known as EurasianNatural Resources Corp. Ltd., reached an agreement with its twomajor Russian lenders to restructure US$5.8 billion in debt. The deal lifts thethreat of bankruptcy three years after the company delisted its London stockamid allegations of corruption and a fraud investigation.

BASE METALS

* Rio Tinto unit Turquoise Hill Resources Ltd.'s total second-quarterconcentrates outputfrom its majority-owned OyuTolgoi copper-gold mine in Mongolia came in at 207,100 tonnes at anaverage grade of 24.9% copper.

* Zinc rose to its highestlevel in over a year on the London Metal Exchange, as forecasts for aglobal shortage continue to buoy the metal's prices, Bloomberg News wrote.According to Goldman Sachs Group Inc., zinc may rise to US$2,500 per tonne overthe next six months.

* BolidenAB recorded a 23.6%year-over-year slide in net profit in the second quarter to 619million Swedish kronor, despite rising zinc and copper production, due to lowermetal prices.

* Chile's Enami EP is mullingover filing a claim against the joint owners of — Pampa Mater with a65.3% stake, Arrigoni Minería SpA with 26.7% and Samsung C&T Chile CopperSpA with 8% — over Pampa Camarones' pending debts, which totaled US$120million. Pampa Camarones underwent a restructuring process under localbankruptcy laws in May, in which Enami is one of the creditors, Pulso reported.

* VecchiolaSA's Minera Tres Valles copper mine in Chile increasedby 11% its cathode production in the first quarter this year compared withthe previous quarter. The company plans to reach full production capacity of18,500 tonnes of cathodes per year by the end of 2016, Diario El Día reported.

* IMI Zinc Exploration Pty Ltd made an offer to 's zinc-lead project inAustralia's Northern Territory for A$14.8 million in cash and shares.

* ConsolidatedTin Mines Ltd.'s board has decided to appoint Blair Pleash andKathleen Vouris, both of Hall Chadwick as voluntary administrators to the company after failing tosecure funding.

* An US$800 million lawsuit filed by Renco Group Inc.against Peru in 2011 over the country's alleged failure to clean up pollutionsurrounding the LaOroya smelter was rejectedby the World Bank's International Center for the Settlement of InvestmentDisputes due to a lack of jurisdiction, Reuters reported. The company vowed tocontinue to its legal action.

* Even as it seeks to move away from mining, Botswana'sgovernment will maintainUS$130 million of annual spending on state-owned nickel and copper producerBCL Ltd. to preservemore than 5,000 jobs, Bloomberg News reported, citing the country's VicePresident Mokgweetsi Masisi.

PRECIOUS METALS

* PolymetalInternational Plc recorded a 9% year-over-year in gold output to 169,000ounces and a 21% drop in silver output to 7.0 million ounces in the secondquarter. Declines in gold and silver sales outpaced the drops in production.

* Petropavlovsk PLC's gold production in the first halffell 22% to 187,400ounces compared to year-ago figures due to the scheduled processing of lowergrade material and the impact of severe flooding.

* SaudiArabian Mining Co. or Ma'aden, reported a in second quarternet profit to 132.5 million Saudi riyals. Revenue was down by 15%due to lower commodity prices.

* AlexcoResource Corp. has filed a preliminary short form base shelfprospectus to raiseup to C$50 million.

* A HarmonyGold Mining Co. Ltd. employee diedof injuries sustained in a material handling accident that occurred July 15 atthe company's Joelgold mine in South Africa, Mining Weeklywrote. Investigations into the accident are underway.

* Coeur MiningInc. repaid the US$100 million five-year senior secured termloan acquired in June 2015 well ahead of maturity.

* EmeraldResources NL is proposing to merge with to create awell-funded gold development company. This will be achieved via an off-markettakeover offer under which Emerald will offer 1.55 new Emerald shares for every1 Renaissance share it does not already own, valuing Renaissance at A$40 million.

BULK COMMODITIES

* China rejectedthe European Union's complaint over its export tariffs and quotas on 11 metalsand minerals, with the Chinese Commerce Ministry saying "China regrets theEU request for consultations," Reuters reported. The ministry noted thatChina's measures are in line with the World Trade Organization's rules and saidthe complaint will be handled in accordance with WTO procedures.

* Citing a source familiar with the situation, Interfax newsagency reported that a firm owned by Russian businessman Said Kerimov has tabled an offer toacquire Onexim Group's 17.02% stake in RUSAL, Reuters reported. Themarket value of the stake is just under US$900 million.

* According to China's State Council, the ban that preventedforeign investors from holding controlling stakes in domestic iron and steelproducers has been temporarilylifted in the country's four free trade zones from July 1.

* China CoalEnergy Co. Ltd. produced 40.4 million tonnes of coal in the firsthalf, down 12.7% froma year ago, while its coal sales for the six months ending June 30 rose 1.8%year over year to 65.3 million tonnes.

* EvrazPlc's production of pig iron and crude steel decreased by 11.7% and 9.9% from the previous quarter,respectively, to 2.6 million tonnes and 3.2 million tonnes. Steel products, netof re-rolled volumes, likewise fell by 13.2% to 2.9 million tonnes. Saleablecoke was the lone rise quarter over quarter, up by 77.3% to 290,000 tonnes.

* India's state-owned National Aluminium Co. Ltd. signed a memorandum ofunderstanding with the Indian Ministry of Mines, setting a from operations,excluding excise duty, at 71 billion Indian rupees. Nalco also set an annualproduction target of 2.13 million tonnes of alumina and 385,000 tonnes ofaluminum in the current fiscal year.

* In the first half of 2016, Russia's largest coal producer,SUEK plc, saw itsproduction increase by 15% to53.3 million tonnes and sales in Russia by 9% to 28.4 million tonnes, Kommersant reported. The growth ofdeliveries to the domestic market was due to the high demand for coal frompower companies, spurred by low-water rivers.

* In a move to avoid bankruptcy, is working withinvestment banks to renegotiateterms of its credit agreements, Reuters reported.

* Following TerraCom Ltd.'s plan to purchase the coal mine inQueensland for A$1, the Mackay Conservation Group offeredto pay A$2,000 for the mine, Australian Mining reported.

* In a bid to bolster the sales process for the company'sentire Australian business, Arrium Ltd.'s administrators are aiming to secure a 17%pay cut from workers at its Whyalla steelworks and increase iron oreexports by up to 3% per annum, TheAustralian reported.

* An equipment collapse at 's C$4.1 billion potash mine inSaskatchewan led to "consequentialdamage", which could potentially affect the start of production at thesite, Reuters reported.

* Coal production from Russia's Kemerovo region to 108 million tonnesin the first half of 2016, 8% more than in the same period last year, Interfaxreported, citing figures from the Kemerovo regional government.

* Coal imports in China are expected to at over 20 million tons per monthduring the second half of the year, to aid demand and to help fill a supply gapleft by a mining slowdown, Bloomberg reported, citing an analyst with ICISChina.

* India's coal imports for the current fiscal year areprojected to fall to160.16 million tonnes, the Press Trust of India reported, citing Power and CoalMinister Piyush Goyal. The number projected by NITI Aayog signifies an almost20% drop from the 199.88 million tonnes of coal imported in 2015-16.

* Indonesia's Indorama Corp. signed deals with Algerianstate-owned firms Asmidal and Manal to developa phosphate mine and two processing plants in the country at a total cost of US$4.5billion, Reuters reported.

SPECIALTY

* Namibian Finance Minister Calle Schlettwein said NamdebDiamond Corp. — co-owned by DeBeers SA and the Namibian government — has struck moredeposits after pushing back the sea wall at its land-based operations.Bloomberg News quoted Schlettwein as saying the discovery could extend Namdeb'smining operations on the ground by another 50 years.

* DominionDiamond Corp. recovered 26% less diamonds from the mine in Canada'sNorthwest Territories in the second quarter, with carats recovered falling to1.58 million from the 2.14 million carats in the same period of 2015, due tolower processing volumes and lower recovered grades.

* ProspectResources Ltd. entered a deal for a four-month option to a 90% interest in theGod's Gift lithium project for US$50,000. A further US$450,000 is payable on exerciseof the option.

* PremierAfrican Minerals Ltd. said screens, plant modifications andelectrical reticulation works have been completed at its 49%-owned tungsten project inZimbabwe.

INDUSTRY NEWS

* A recently published report from the U.N. Conference onTrade and Development showed that some commodity-dependent countries in thedeveloping world are losingup to 67% of their exports to trade misinvoicing, Mining Weekly wrote. The study used as much as 20 years of datacovering commodity exports such as copper, gold and oil from Chile, Nigeria andSouth Africa, among others.

* A new federal rule has been shown to have had a on coalminers' exposure to "dangerous levels of coal mine dust," accordingto the U.S. Department of Labor's Mine Safety and Health Administration. Theagency stated that approximately 99% of respirable coal mine dust samplescollected during the second quarter of this year were in compliance with MSHAcoal dust standards.

* There were no immediate effects on mining operations as a result ofthe attempted coup in Turkey over the weekend, companies said, but thepolitical chaos in the country may cast a long-lasting shadow over fundraisingfor new projects there, according to analysts. An RFC Ambrian analyst in Londondoes not think Turkey will start taking projects away given that it still needsforeign investment, but lower-quality projects might not be funded.

The Daily Dose isupdated as of 7 a.m. New York time, and scans news sources published inChinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai andUkrainian. Some external links may require a subscription.