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En+ Group to launch US$1.5B IPO in London, Moscow

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

State of the Market: Mining Q2-2020


En+ Group to launch US$1.5B IPO in London, Moscow

TOP NEWS

En+ Group confirms US$1.5B IPO in London, Moscow

En+ Group Ltd., owner of a 48.1% stake in United Co. Rusal Plc, intends to proceed with an initial public offering of global depositary receipts to raise about US$1.5 billion. Each global depositary receipt will represent one common share of the company, to be admitted to trading on the main markets of the London Stock Exchange and the Moscow Exchange.

Anglo American looks to scale up coal investments in Queensland

Anglo American Plc CEO Mark Cutifani said the miner is looking to scale up investment into its Queensland, Australia, coking coal mines and may look at adding new local operations, after a rise in coal prices in 2016 allowed it to avoid selling these assets to slash debt, The Australian reported. The company plans to increase productivity by four times at the Queensland coking coal operations, which ship about 20 million tonnes of coal per year. However, the company is not likely to buy Rio Tinto's remaining coal mines in the province, but Cutifani said "he was not ruling it out and that Anglo would take a look at the assets."

Ferrexpo Q3'17 pellet production down 1.7% QOQ due to ongoing maintenance

Ferrexpo Plc produced 2.49 million tonnes of pellets in the third quarter, slipping 1.7% quarter over quarter due to the company's ongoing pellet line maintenance program. All of the company's production came from its own ore during the quarter, compared to 9,960 tonnes produced from third-party materials in the prior quarter.

DIVERSIFIED

* MorningStar analyst Matthew Hodge recommended that investors cut their stake in BHP Billiton Group and sell Rio Tinto, saying the recent improvement in commodities demand and prices was a cyclical upturn helped by Chinese stimulus in 2016, the Australian Associated Press reported. Hodge added that shares in the mining giants are overvalued because investors are "too optimistic" about future growth in commodities demand.

BASE METALS

* There is no proof of nepotism and corruption at Chilean state-owned copper miner Codelco, the country's Office of the Comptroller General claimed. Codelco Chairman Oscar Landerretche said in a hearing before Congress over the ongoing investigation into how the company grants project contracts that these claims could hurt Codelco's bondholders and discourage potential investment partners, daily La Tercera reported.

* ASX-listed explorers Conico Ltd. and Barra Resources Ltd. are looking to find another cashed-up partner for the Mount Thirsty cobalt-nickel joint venture in Western Australia to advance the project to the pre-feasibility study stage as soon as possible.

* Silvermet Inc. shareholders gave a lukewarm assent to a proposed merger with Global Atomic Fuels Corp., voting 56% for the merger and 44% against. The merger brings together Silvermet, a zinc producer that owns a 49% stake in Befesa Silvermet Turkey SL, and Global Atomic, which owns the Adrar Emoles uranium project in Niger.

PRECIOUS METALS

* Protesters ended a five-day blockade of Goldcorp Inc.'s Penasquito gold mine Oct. 3 while agreeing to talks, Felipe Pinedo Hernandez, one of the protest leaders, confirmed to S&P Global Market Intelligence. The blockade, which Pinedo Hernandez said is about water use and alleged pollution related to the mine in Zacatecas, Mexico, began Sept. 28 and restricted access to the site. Goldcorp spokesperson Christine Marks said the blockade had not affected Penasquito output and the company had "enough supplies on hand to last many more days before production would be impacted."

* Caledonia Mining Corp. Plc reported a 7% year-over-year increase in its gold production for the third quarter at its Blanket Mine in Zimbabwe, to about 14,389 ounces, which is a new quarterly production record. Meanwhile, the company narrowed full-year gold guidance to between 54,000 and 56,000 ounces, compared to the previous range of between 52,000 and 57,000 ounces.

* Improving commodities prices are encouraging Hochschild Mining Plc to resume its growth plans in Peru, but without the Crespo and Azuca greenfield projects as priorities, CEO Ignacio Bustamante told daily El Comercio. The company plans to invest between US$125 million and US$135 million in 2018, 80% of which will be allocated to Peru, Bustamante said.

* Barrick Gold Corp. reached an off-court agreement with the indigenous communities of Huasco River Valley in northern Chile to pay US$20.1 million over the environmental compensation protocol of the suspended Pascua Lama gold project. The claimants filed the lawsuit in 2016 after Barrick stopped paying funds for social development as agreed in 2005, daily El Mercurio reported.

* Newcrest Mining Ltd. CEO Sandeep Biswas said the proposal to hike gold royalties in Western Australia has put the miner's Telfer gold mine at "serious risk," The Australian reported.

* Gold Fields Ltd. is reviewing its A$100 million annual exploration budget for Western Australia amid the state government's proposal to hike gold royalties by 50%, The West Australian reported, citing the company's executive vice-president for Australasia, Stuart Mathews. "It is an industry based on small margins, and the royalty will significantly erode those margins — something has to give," Mathews said.

* Central Rand Gold Ltd. flagged the need for a cash injection of at least US$20 million to continue operations, although the company said, "The directors consider that this is very unlikely to be forthcoming in the near future or at all." Accordingly, the company is actively pursuing options including the sale of its stake in the Central Rand Gold (Netherlands Antilles) NV unit, unless it is able to secure the required capital in the very near future.

* Titan Minerals Ltd. completed its previously announced recapitalization and exited external administration, with its directors regaining control of the company. The company, formerly known as Minera Gold Ltd., went into administration in August 2015 after failing to secure much-needed funding.

* Radius Gold Inc. optioned the 473-hectare Tarros gold-silver project in Chihuahua, Mexico, from a private company. The company can acquire the property by paying about US$1.7 million within four years. Tarros is subject to a 2% net smelter royalty.

* Rockcliff Copper Corp. secured an option to earn a 100% interest in the Berry Creek gold property in Manitoba. The company will pay C$140,000 in cash over three years and spend C$500,000 on the project over five years.

* Exterra Resources Ltd. became a wholly owned subsidiary of Anova Metals Ltd. after its shareholders approved the merger.

* Arbitration between junior developer Minera IRL Ltd. and Corporación Financiera de Desarrollo SA, a Peruvian development bank, is set to go ahead. Minera IRL said the bank, known as COFIDE, had objected to the request for arbitration, which Minera IRL made back in June, but the Superior Council of Arbitration of the Chamber of Commerce of Lima rejected COFIDE's arguments.

* Mali allowed informal gold mining to resume following a three-month suspension during which the government restructured the sector to secure more tax revenue, Reuters reported, citing Mines Minister Tiemoko Sangare.

BULK COMMODITIES

* Exxaro Resources Ltd. priced its now upsized offering of class A shares of U.S.-listed Tronox Ltd. at US$22 per share. The South African coal miner is now offering 19.5 million shares it holds in Tronox, compared to 16 million shares previously. The shares are worth about US$412 million, with net proceeds earmarked for capital projects‚ debt repayment and to return capital to shareholders.

* Global iron ore shipments rose 4.5% on a yearly basis to 312.7 million tonnes in the third quarter, according to data from Sanford C. Bernstein.

* Seriti Resources Holdings Ltd., the consortium that is close to completing the purchase of Eskom Holdings SOC Ltd.-linked coal mines from Anglo American Plc, also reportedly agreed to buy the New Largo coal project in South Africa. This could allow Seriti to go public, depending on its ability to fund the 20 billion South African rand CapEx required to build the mine, Miningmx wrote. If the transaction goes through, it will mark Anglo American's exit from South African coal production, the report added.

* Roy Hill Holdings Pty. Ltd. plans to move to completely autonomous drilling by the second quarter of 2018 as it takes its first step toward potentially becoming a fully automated miner. The Australian iron ore producer already has two drills operating autonomously at the Roy Hill mine in Western Australia's Pilbara region and is working to automate the rest of its fleet.

* Gerdau SA agreed to off-load its Chilean long steel assets to local family-owned groups Matco and Ingeniería & Inversiones SA for about US$154 million. Separately, Gerdau launched a cash tender offer to buy back up to US$500 million of its 2021, 2020 and 2024 bonds.

* Thailand's move to buy 50,000 to 60,000 tonnes of coal from the U.S. received strong opposition from academics and activists, Thailand's The Nation reported. Environmental advocates and academics pushed back against the sales agreement, citing what they called high transport costs, low domestic demand for coal in Thailand and the impact the sale would have on international efforts to reduce greenhouse gas emissions, the report said.

* A federal court in South Carolina dismissed an antitrust lawsuit brought against state-owned utility Santee Cooper by large industrial customer Century Aluminum of South Carolina Inc. The Century Aluminum Co. unit in 2016 reached an agreement with Santee Cooper under which it would get 25% of the smelter's electricity needs from Santee Cooper and the remainder from third-party sources at market-based rates.

* K+S AG will rule out a separate listing of its salt activities when it unveils the results of a strategic review, Reuters reported, citing a source. "There won't be a Salt IPO. It doesn't make any strategic sense and it doesn't pay off," the source said.

* Sanjeev Gupta's Liberty House reactivated a unit at one of its British steelworks more than 18 months after it was mothballed by Tata Steel UK Ltd., Press Trust of India reported. The move has the potential to create 150 new jobs over the next few months.

* The board of the European Bank for Reconstruction and Development approved a syndicated loan of up to €350 million for ArcelorMittal's Kryviy Rih iron ore project in Ukraine, delo.ua reported.

SPECIALTY

* Strandline Resources Ltd. is nearing an investment decision for its Fungoni mineral sands project in Tanzania and believes that it could have the operation in production within a year of giving it the green light. A recently completed definitive feasibility study over the Fungoni project pegged a pretax net present value of US$42.9 million, an internal rate of return of 56.2% and a 2.7-year payback period from the start of construction.

* Latin Resources Ltd. secured the first option to exclusively acquire the license of a patented spodumene-to-lithium carbonate technology from the University of Cuyo in Mendoza, Argentina, for commercial use and exploitation in Argentina, Australia, China, Canada and the U.S.

* New York Gov. Andrew Cuomo granted US$13.3 million in funding for the first stage of Magnis Resources Ltd.'s New York State Lithium-ion Gigafactory in upstate New York. A global consortium, of which the ASX-listed company owns a third, is developing a 15-GWh battery plant with Magnis to supply the anode materials and the technologies for the plant.

* Plymouth Minerals Ltd. is teaming up with Chinese lithium producer Shandong Ruifu Lithium Co. to process material from the San Jose project in Spain into salable products and to assist with the technical aspects of the feasibility study for the project.

* Taruga Gold Ltd. entered a binding deal to acquire up to a 65% interest in the lithium-tin-tantalite prospective permit ZRG0705 in the Democratic Republic of the Congo by funding all exploration toward the completion of a definitive feasibility study within five years. The project covers 40.8 square kilometers.

* Lithium X Energy Corp. completed the consolidation of the Sal de los Angeles lithium project in Argentina and now controls 100% of the mineral titles contained within the brine-bearing regions of the Diablillos basin.

* Forum Uranium Corp. and Uracan Resources Ltd. agreed to terminate the option deal over the Clearwater uranium project in Saskatchewan.

INDUSTRY NEWS

* Philippine Environment and Natural Resources Secretary Roy Cimatu, who recently received confirmation from the Commission on Appointment, said he will follow the instruction of President Rodrigo Duterte to ban open pit mining in the country.

* South Africa's Chamber of Mines rejected talks with the country's mining ministry over the proposed changes to the mining charter, Reuters reported. "We are of the view that engaging with the minister directly is not going to achieve a set of results for the industry that is workable," Chamber of Mines CEO Roger Baxter said.

* Following a breach of the public filing system at the SEC, the agency promised lawmakers that it is ramping up its cybersecurity efforts, including hiring a chief risk officer.

The Daily Dose is updated as of 7 a.m. ET and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.