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South32 meets FY'16 guidance for majority of operations; Newmont Q2 earnings plunge YOY; Anglo American's Q2 diamond production drops

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Essential Metals Mining Insights November 2021

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[Infographic]: 2021 World Exploration Trends

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Copper project pipeline — Project shortage to see supply lag demand post-2025

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Green energy revolution — Boost for industrial metals demand


South32 meets FY'16 guidance for majority of operations; Newmont Q2 earnings plunge YOY; Anglo American's Q2 diamond production drops

TOP NEWS

Reportingits first full financial year of operation, South32 Ltd. may have met or beaten its guidance for themajority of the company's operations, but production was also across most commodities.The most noticeable decline was in the production of manganese alloy, which fellby 46% to 224,000 tonnes for the 2016 financial year from 413,000 tonnes in theprior year. Manganese ore production slipped 8% year over year to 4.8 milliontonnes, while payable nickel output fell 9% to 36,800 tonnes.

's  net income attributable to shareholders inthe second quarter slumped to US$23 million, or 4 cents per share, fromUS$72 million, or 14 cents per share, booked in the year-ago quarter. Attributable gold output rose7% on a yearly basis to about 1.3 million ounces, while attributable copperproduction declined 10% year over year to 38,000 tonnes.

Anglo American's Q2 production drops YOY for diamonds and Kumba ironore

Forthe second quarter, AngloAmerican Plc booked lower diamond, Kumba iron ore, copper and exportthermal coal production by 19%, 15%, 8% and 6%, respectively, but reported respective91%, 76%, 4% and 1% increases in the production of iron ore, nickel,export metallurgical coal and platinum.

DIVERSIFIED

*BHP Billiton Groupcould face up to A$775million in taxes and charges following an audit of the mining giant'sSingapore marketing hub, The Australian reported.The looming payment appears to have increased from an earlier announced A$522million.

BASE METALS

*Copper output from the Collahuasi copper mine in Chile in the first half of2016 rose 12.6% yearover year to 243,838 tonnes despite a 23% reduction in costs, Reuters reported.Glencore Plc andAnglo American each hold a 44% stake in the operation.

*Thiess was awardedthe contract for the first underground decline project at 's copper-gold mine inMongolia, Mining Weekly reported. Theproject is slated to start within the month and is expected to be completed in2020.

*The Philippine government has requested Nickel Asia Corp. to stop exporting nickel ore from Manicani island in thecentral part of the country due to environmental concerns, Reuters reported,citing Environment Secretary Regina Lopez. Lopez also said the stockpiles of1.4 million tonnes must be returned to the soil.

PRECIOUS METALS

*Fresnillo Plcsaw higher productionacross all of its precious and base metal products in the second quarter. Totalsilver and gold output improved year over year by 14.5% and 19.6%, respectively,to 13.0 million ounces and 217,645 ounces. Lead production went up 18.1% to11,585 tonnes while zinc output increased 21.3% to 12,529 tonnes.

*Anglo American PlatinumLtd. produced 586,000 ounces of platinum in the secondquarter, 1% more than the same quarter of 2015, while gross refined platinumoutput rose by 33% year on year to 748,000 ounces.

*Evolution Mining Ltd.booked record quarterly goldproduction of 216,644 ounces in three months ended June at anall-in sustaining cost of A$1,117 per ounce, compared to 208,963 ounces at anAISC of A$1,015 per ounce reported in the March quarter.

* Russian-focused gold group its full-year production forecastby 10% after its first-half gold production increased 64% compared to the sameperiod of 2015 to 12,389 ounces, which is much more than initially expected.

*Northern Star ResourcesLtd. booked 143,580 ounces of gold production in the June quarterand 613,162 ounces for the 2016 financial year. June-quarter production,however, is a 7.8% decrease over the March quarter, which was due to a lowerhead grade and recovery rate that resulted in an 8.8% drop in recovered ounces.

* Agroup of armed men attackedthe La Indiamine owned by Agnico Eagle MinesLtd. in northern Mexico and injured a security guard beforestealing silver and gold, Reuters reported. The company did not provide anestimate of the value of the stolen metals.

*Condor Resources Inc.acquired mineralrights over three new projects from the Peruvian government and has expandedits Pucamayogold-silver project in the country through the acquisition of a substantialland position adjoining the project.

* Probe MetalsInc. signed an agreement to sell three blocks of mining claims within its gold projectin Quebec to GFK ResourcesInc. in exchange for 3 million common shares. Furthermore, thecompanies also agreed to terminate their option agreement signed in December2013, which gave GFK the right to earn a 100% interest in the Casa-Cameronproject.

BULK COMMODITIES

is expectedto post near-record output levels in the second quarter, despite the effects ofthe November 2015 Samarco tailings dam disaster, Bloomberg News reported. Theaverage estimate of five analysts surveyed by Bloomberg pegged the miner'ssecond-quarter output at 86 million tonnes of iron ore, which compares torecord production of 89.3 million tonnes in the same quarter a year ago.

* Aproposed law to ban upstream tailings dams, such as the one used at theSamarco mine, couldbe approved by Brazil's Minas Gerais state this year, Reuters wrote, citingAnderson Silva de Aguilar, a state environmental official. The official alsonoted that the mine would not be restarting this year and may not in 2017either.

* SiriusMinerals Plc said it received government approval for the harbor facilities atTeesside for its York polyhalite project in the U.K. All "majorapprovals" for the project have now been granted, the company noted.

*Data provided by the U.S. Mine Safety and Health Administration indicates thatArch Coal Inc.'sBlack Thunder mine in Wyoming produced only 13.7 million tons in the second quarter2016, the lowest amount since the last quarter of 1999 when the mine producedaround 13.2 million tons. The recent quarter's number is down 9.6% from the15.2 million tons reported in the first quarter of 2016 and decreased 41.5%from the 23.5 million tons produced in second quarter 2015.

*Danakali Ltd. hassigned nonbindingmemorandums of understanding for the supply of an additional 200,000 tonnes perannum of potassium magnesium sulfate. The material will be sourced from thecompany's 50%-owned Colluli project in Eritrea, East Africa, which isawaiting mining license approval.

*Chinese aluminum smelter Jiaozuo Wanfang has suspendedproduction this week and may not resume output for several months afterrecent flooding damaged its electric power generation, Metal Bulletin reported.

*The Oakland City Council has confirmed its ban of a planned coal export terminal witha final vote. The city had previously voted unanimously against the projectsupported by Utah coal producers after city staff released a reportrecommending the prohibition of coal and coke storage and handling within thecity.

*Alcoa Inc. settleda case with a volunteer firefighter who lost part of his salary for failing toattend a shift as he helped tackled blaze at Lake Clifton south of Perth, ABCreported.

SPECIALTY

*Following a strategic review, Fortescue Metals Group Ltd. is sellingits lithium exploration rights in Western Australia's Pilbara region, The Australian reported.

* Construction at 's diamond mine inLesotho is ahead ofschedule, with initial production now expected early in the fourthquarter. Construction is now 85% complete while commissioning is at 18%.

*Orocobre Ltd. doesnot expect to reach nameplate capacity at its Olaroz lithium facility in Argentina untilNovember as it makes modifications to the site's purification circuit,Industrial Minerals wrote.

INDUSTRY

*Mining companies selling off good assets at the bottom of the cycle are puttingtheir future growth atrisk, Brian Beamish, chairman of Lonmin Plc, said. Speaking during an interview with SNLMetals & Mining, Beamish said these miners were also doing theirshareholders a disservice by hiving off quality assets at knock-down prices.

*According to Mining Weekly,Queensland Natural Resources and Mines Minister Anthony Lynham is planning tomake 826 square kilometers of land availablefor minerals, coal, petroleum and natural gas exploration in the next 12 months.

The Daily Dose is updated asof 7 a.m. Hong Kong time, and scans news sources published in Chinese, English,Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Someexternal links may require a subscription.