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Vale faces criminal charges; Peru eyes US$21B in mining investments

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Vale faces criminal charges; Peru eyes US$21B in mining investments

TOP NEWS

Brazil police propose criminal charges against Vale, dam auditor

In the aftermath of the Feijao dam disaster, federal police in Brazil have called for criminal charges against Vale SA, dam auditor TÜV SÜD AG and 13 employees, Reuters wrote. Citing a document it had seen, the newswire reported that federal police proposed charges alleging falsification of documents concerning the stability of Vale's Brumadinho dam at the Feijao mine.

Peru eyes US$21B in mining investments by 2023

Peru's President Martín Vizcarra seeks to attract US$21 billion in mining investments before his term ends in 2023, Mining.com reported, citing state-owned news agency Andina. The country's copper output is expected to jump 27% while gold production is anticipated to rise 12% in the next three years to 2022, Reuters reported, citing the country's energy and mines minister, Francisco Ismodes, who added that 2019 has been Peru's best year for copper production so far as it is on track to produce 2.5 million tonnes of copper, compared to 2.44 Mt in 2018.

Court lifts 1 of 2 embargoes on Norsk Hydro's new Alunorte tailings area

Norsk Hydro ASA moved closer to resuming commissioning activities at the DRS2 bauxite residue deposit area of its Alunorte alumina refinery in Brazil after the Federal Court in Belém lifted an embargo under a civil lawsuit. DRS2, which is intended to replace the old DRS1 tailings area, is still subject to an embargo under a parallel criminal case, although Norsk Hydro expects it to be lifted shortly.

BASE METALS

* Ero Copper Corp. has started to aggressively drill greenfield targets away from its Brazilian copper mines in the MCSA Mining Complex as part of a 200,000-meter drill program this year as it looks to generate new reserves at an asset it acquired in 2016 before a 2017 IPO, President and CEO David Strang said in an exclusive S&P Global Market Intelligence report.

* The Minnesota Court of Appeals suspended PolyMet Mining Corp.'s two key permits for its NorthMet copper-nickel project following a challenge by environmental activists, the Associated Press reported. The permits were put on hold ahead of an Oct. 23 hearing, where the state's Department of Natural Resources must address whether it should conduct a review of the project's dam and include majority owner Glencore PLC in the permits.

* Japan's Pan Pacific Copper Co. Ltd. expects the global copper shortage to tighten in 2020 with an increase in Chinese output and a slowdown in demand amid the U.S.-China trade war, Reuters wrote, citing the company's general manager for marketing, Naoki Kojima. He expects global consumption to rise 1.5% and the supply of refined copper to climb 1.7% compared with this year, forecasting a supply shortage of 38,000 tonnes in 2020, compared to 89,000 tonnes this year.

* Aus Tin Mining Ltd. will undertake a strategic review of its Granville East tin project in Tasmania, Australia, while repairs are conducted on its truck and mine excavator. The review will look to determine the most economically efficient method of extracting value from the project, and is expected to take a few weeks to complete.

PRECIOUS METALS

* Northern Star Resources Ltd. declared its bid to acquire the remaining shares in Echo Resources Ltd. it does not already own for 33 Australian cents apiece unconditional.

* Barra Resources Ltd.'s scoping study for its Burbanks gold project in Western Australia identified the potential for shallow underground mining, with a modest working capital required to fund underground development.

* Troy Resources Ltd. cut the lower end of its gold production guidance for the second half at the Karouni project in Guyana to 24,000 ounces from 26,000 ounces as operations suffered from heavy rainfall.

* Ausmex Mining Group Ltd. entered into a binding term sheet to sell its Gilded Rose gold project in Queensland, Australia, to Jin Resources (HK) Ltd. for A$4 million in cash to be paid in stages, including A$1.5 million after the first 10,000 ounces of gold production at the project.

* Beacon Minerals Ltd. received its first revenue from initial gold production of about 257 ounces at its Jaurdi project in Western Australia. Commercial production is expected to start Oct. 1.

* Red Lake Gold Inc. temporarily suspended field operations in Red Lake, Ontario, amid a state of emergency declared by the municipality due to inclement weather.

BULK COMMODITIES

* GFG Alliance Ltd. Chairman Sanjeev Gupta injected US$150 million into the group's Australian steel manufacturing business, Infrabuild, as equity financing following the halt of its listing in the country and its failure to raise debt, Reuters reported. Infrabuild is now raising US$325 million via the sale of secured bonds offering a 12% coupon, down from a previous plan to raise US$475 million debt.

* The long-term outlook for metallurgical coal remains "very attractive," B. Riley FBR analyst Lucas Pipes said on a call with the American Coal Council.

* Alcoa Corp. expects additional third quarter operating expenses of about US$10 million, or 5 cents per share, after the United Steelworkers ratified a new four-year labor agreement covering about 1,700 employees at five of the Alcoa's facilities in the U.S., namely Warrick in Indiana, Massena in New York, Gum Springs in Arkansas, Wenatchee in Washington and Point Comfort in Texas.

* Aluminum producers in Australia such as Rio Tinto and Alcoa agreed not to take commercial advantage of higher demand from the U.S. triggered by sanctions on rival suppliers from other countries, The Australian Financial Review wrote, citing Joe Hockey, Australia's ambassador to the U.S.

* Peabody Energy Corp. terminated its previously announced tender offers to purchase for $1 billion outstanding notes and concluded its refinancing activities. Peabody is now planning to "pursue alternative means to accomplish its longer-term objectives in a manner that adds value to the enterprise."

* Gerald Metals LLC will halt its Marampa iron ore operation in Sierra Leone due to a dispute with the government over royalty payments, Reuters reported, citing a company letter. Nearly 1,000 workers will be affected by the move, the report said.

* The Construction, Forestry, Maritime, Mining and Energy Union accused New Hope Corp. Ltd. of using its workers as pawns in a failed attempt to secure government approval for its New Acland coal expansion project in Queensland, Australia, The Sydney Morning Herald reported.

* Alien Metals Ltd. secured an option to acquire a 51% interest in exploration licenses E47/3954 and E47/3953, dubbed the Hancock Ranges and Brockman iron ore projects, in Western Australia from Windfield Metals Pty. Ltd.

* China has taken fewer iron ore shipments from Iran over August and September due to additional export tariffs to be implemented by Tehran, Reuters reported, citing Refinitiv Eikon data.

* Bounty Mining Ltd. requested a waiver of default from major shareholder Amaroo Blackdown Investments, LLC after the company's failure to meet a monthly free cash flow covenant since Feb. 1.

* China will set more stringent emissions targets in the coming winter months for cities that had higher concentrations of damaging particles, part of its wider anti-pollution campaign that may affect heavy industries such as steelmaking and coke plants, Reuters reported.

SPECIALTY

* FYI Resources Ltd. Managing Director Roland Hill said on the sidelines of the Perth leg of the Benchmark World Tour that the US$178 million capital expenditure projected under a September 2018 pre-feasibility study for Cadoux high-purity alumina project in Western Australia could be reduced, with the company seeking parties to finance the operation. The company also said that Western Australia's Premier Mark McGowan requested the state's Department of Jobs, Tourism, Science and Innovation to provide lead agency services for the project.

* Rising demand for lithium from the battery sector for use in electric vehicles and rising prices have driven acquisitions of projects and mines with lithium resources over the past 7.5 years, according to the Metals and Mining Research team at S&P Global Market Intelligence.

* The Federal Court of Australia appointed Deloitte as provisional liquidators of Merlin Diamonds Ltd., which is accused of using A$13 million in investor money to fund Chairman Joe Gutnick's private businesses without shareholder approval and benefit to the company, The Sydney Morning Herald reported.

* Noront Resources Ltd. secured an option from Algoma Steel Inc (ESSAR Group) to lease a brownfield property for a ferrochrome production facility, and Hatch Ltd. is undertaking engineering and project support services for the company's Eagle's Nest and Ring of Fire chrome projects in Ontario.

INDUSTRY NEWS

* Australia pledged to invest A$150 million in its local businesses and new technologies over five years that will support NASA's missions on the Moon and Mars. NASA earlier urged Australian miners such as BHP Group and Rio Tinto to make their autonomous mining technology applicable to space.

* Australian mining companies agreed to team up to help develop global standards for tailings management, The Australian wrote, citing Minerals Council of Australia CEO Tania Constable.

* Miners on Australia's East Coast affected by drought have no plans of building desalination plants, The Australian Financial Review reported while saying in a separate report that China Molybdenum Co. Ltd.'s Northparkes copper-gold mine in New South Wales will have to cut production within nine months if there is no substantial rain.

* A confidential government-commissioned review flagged problems that impacted the Queensland Mines Inspectorate's ability to achieve a prosecution in its mining safety probes, The Australian Financial Review reported.

* Western Australia's Premier Mark McGowan criticized the federal government's plan to cut tax concessions for remote housing, saying that it will impact regional mining towns, The West Australian wrote.

* A Filipino congressman is seeking an amendment to the Philippines' mining taxes that will see 30% of the country's revenue from the industry allocated to a sovereign wealth fund, BusinessWorld reported.

* The U.K. will establish a £1 billion fund for scientists around the world to create new technology to help developing countries cut carbon emissions, Reuters reported, citing Prime Minister Boris Johnson, who will present the plan at the United Nations General Assembly in New York.

* Chile's ruling party, Chile Vamos, wants mining companies to be allowed to operate on rocky glaciers that are not listed as protected areas, Mining.com reported, citing a Bío Bío radio interview with senators who made a presentation during a discussion on a new glacier law.

* Business investment in the U.K. has been between 6% and 14% lower than it would have been in the wake of the June 2016 EU referendum vote, according to a Bank of England survey.

* President Donald Trump's administration is temporarily excluding 437 product types from the additional tariffs it imposed on an estimated US$250 billion worth of Chinese goods in 2018, according to documents published by the Office of the U.S. Trade Representative.

* Trading on Egypt's stock exchange was halted after the EGX 100 fell by 5% amid several protests in the country against government corruption, Reuters reported.

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