TOP NEWS
Oleg Deripaska quits Rusal board amid pressure over US sanctions
Oleg Deripaska stood down as nonexecutive director of United Co. Rusal PLC, effective immediately, as part of the company's efforts to protect its interests in light of U.S.-imposed sanctions on the Russian aluminum producer. Shares in the company rallied on the Moscow and Hong Kong stock exchanges May 24 following the resignations of CEO Alexandra Bouriko and half of its board members that day.
Indian state seeks permanent closure of Vedanta's Tuticorin smelter, orders power cut
Vedanta Resources PLC unit Vedanta Ltd. said state environmental officials ordered the disconnection of power supply and the closure of the company's Tuticorin copper smelter in South India's Tamil Nadu state, with immediate effect. Reuters reported the same day that Tamil Nadu is seeking permanent closure of the Tuticorin operations, and environmental officials cut the power supply to the smelter due to it being found preparing to resume production without approval.
First Quantum, Northern Dynasty nix US$1.5B Pebble copper project option
First Quantum Minerals Ltd. and Northern Dynasty Minerals Ltd. terminated a framework agreement for the former company to earn a 50% interest in the Pebble copper project in Alaska. Both parties were unable to reach an agreement on the US$1.5 billion option and partnership transaction.
DIVERSIFIED
* A Glencore PLC trader is among a group of people detained by Chinese authorities amid a probe into lead shipments, Bloomberg News wrote, citing sources familiar with the matter. According to the report, Chinese authorities are alleging that the mining giant coordinated with a local company to import material that was declared as lead concentrate but was found to be lead slag. Two sources told Bloomberg that the probe is part of a national effort by the government into imported waste amid pollution concerns.
BASE METALS
* Indonesian State-Owned Enterprises Minister Rini Soemarno said the government hopes to conclude talks on acquiring Rio Tinto's interest in the Grasberg copper-gold mine in June, The Jakarta Post wrote.
* S&P Global Market Intelligence estimated that global production of nickel in the first quarter fell compared with the final quarter of 2017.
* Fitch Ratings affirmed Freeport-McMoRan Inc.'s issuer default rating at BB+, with a negative rating outlook. The negative outlook reflects the possibility that changes in Indonesian regulations could adversely impact the economics of the company's Grasberg copper operations.
* Separately, an audit by Indonesia's Supreme Audit Agency, BPK, of Freeport's Grasberg copper mine may derail a potential deal to sell a majority stake in the mine to the state, Reuters reported, citing government and company officials.
* Myanmar Metals Ltd. shares rose nearly 7% in ASX trading today, having struck two binding agreements to ensure its A$18.5 million share of the Bawdwin polymetallic project option exercise is fully funded in what CEO John Lamb called a "new model" of foreign participation in Myanmar. Two local Myanmar entities will each hold 24.5% of the project, with Myanmar Metals taking majority ownership to operate with 51%.
* Beatrice Pierre was named the new general manager at Glencore PLC's Altonorte copper smelter in Chile, becoming the first woman to hold the position, magazine Latinominería reported.
PRECIOUS METALS
* Centamin PLC revised its full-year guidance at the Sukari gold mine in Egypt to between 505,000 and 515,000 ounces of gold at a production cost of between US$625/oz and US$640/oz on expectations of weaker second-quarter output offset by a stronger production profile.
* McEwen Mining Inc. is looking to raise up to US$50 million through the issuance of three-year senior secured notes. Proceeds will be used to complete the construction of the company's Gold Bar mine in Nevada
* PJSC Polyus expects its production to hit the upper end of its forecast range of between 2.38 million and 2.43 million troy ounces, Reuters reported. The company's full-year CapEx is expected to be slightly lower than initially planned at US$850 million as it is ramping up its Natalka gold mine ahead of schedule, said CEO Pavel Grachev.
* Responding to a media statement by the Association of Mineworkers and Construction Union, Sibanye Gold Ltd. confirmed a seismic event May 22 at its Ikamva mine, part of the Kloof operations, that resulted in injuries to three employees. Another seismic event occurred May 21 at the Manyano mine, also within the Kloof operations, resulting in two injuries.
* An independent pre-feasibility study on Paramount Gold Nevada Corp.'s proposed Grassy Mountain gold mine in Oregon defined an after-tax net present value of US$87.8 million, at a 5% discount rate, with a 27.6% internal rate of return.
* Orosur Mining Inc. decided to terminate an option to acquire a 65% stake in Codelco's Anillo gold project in Chile following the lack of positive exploration results in the first phase.
* Birimian Ltd.'s deal to option the Viper and N'tiola areas of its Massigui gold project to Société des Mines de Morila SA, a joint venture between Randgold Resources Ltd., AngloGold Ashanti Ltd. and the Republic of Mali, is nearing completion after the Mali government approved the extension of Morila's mineral exploitation permit to the two areas of interest.
* LeaGold Mining Corp. completed its C$314 million acquisition of Brio Gold Inc. after securing regulatory and shareholders approvals.
* Manas Resources Ltd. elected to withdraw from an option to acquire the Victoria gold project in Tanzania following the lack of progress in effecting the license transfers required to complete the transaction.
* Five people were killed in a militia attack at Banro Corp.'s Namoya gold mine in the Democratic Republic of the Congo, Reuters reported.
BULK COMMODITIES
* Russian lender VTB raised its stake in En+ Group PLC to 9.6% after a margin call with Singapore's AnAn Group, a minority shareholder of En+, Reuters wrote, citing Yuri Soloviev, VTB's first deputy CEO. VTB financed AnAn Group's acquisition of a 6.5% interest in En+, and Soloviev confirmed that the lender now owns these stakes.
* Oleg Deripaska reportedly asked the Russian government to purchase Rusal's aluminum, Reuters reported, citing a senior Russian government source. Deripaska is also seeking support for car manufacturer GAZ and Rusal, having applied for loans from Promsvyazbank. Authorities have reportedly approved the GAZ loan but have not made a decision on the request for Rusal. A separate Reuters report said Deripaska is considering the sale of his shares in En+ Group to the company to bring his interest below the controlling level.
* The government of China's Hebei province fired and reprimanded over a dozen officials for failing to manage air pollution in 2017, Reuters wrote. According to the report, Hebei produces almost a quarter of China's steel output.
* Vale SA expects output at its S11D iron ore mine to reach 58 million tonnes this year, exceeding its guidance of 50 million to 55 million tonnes, Reuters reported, citing sources.
* Fortescue Metals Group Ltd. intends to redeem US$160 million in 9.75% senior secured notes due 2022, to be funded by operating cash flows.
* Chinese iron ore producer Hainan Mining Co. Ltd. plans to raise up to US$300 million through a debt issuance in an overseas capital market to improve liquidity and repay debt.
* Evraz PLC declared an interim dividend of US$187.6 million, or 13 U.S. cents per share, following the approval of its board. Meanwhile, Moody's upgraded subsidiary Evraz Group SA's corporate family rating to Ba2 from Ba3, its probability of default rating to Ba2-PD from Ba3-PD and the ratings assigned to its senior unsecured notes to Ba3 from B1. The outlook is stable.
* Yara International ASA priced a US$1 billion 4.75% bond offering with a 10-year maturity, which will fund general corporate purposes.
* After a nearly 10-week strike at the IOC iron ore mine, Iron Ore Co. of Canada Inc. and striking workers are three days into a fresh round of talks after two previous offers were rejected.
* Bahrain's United Stainless Steel Co. B.S.C. said it does not plan to declare force majeure after a recent factory fire at its stainless steel rerolling mill, and planned deliveries of the material will not be disrupted, Metal Bulletin reported.
SPECIALTY
* Sociedad Quimica y Minera de Chile SA plans to invest US$525 million to expand its lithium production capacity in Chile, aiming to raise output from Chile's Salar de Atacama salt flat to as much as 180,000 tonnes by early 2021 from the current 48,000-tonne capacity, Reuters wrote. Of the earmarked budget, US$75 million will be poured into the Atacama deposit this year to boost output to 70,000 tonnes.
* Chile's Constitutional Tribunal reduced a fine meted by Chile's securities regulator SVS in 2014 to former SQM chairman Julio Ponce Lerou of nearly US$74 million to approximately US$3.3 million, Diario Financiero reported. The fine for Ponce Lerou, an indirect controlling shareholder, resulted from an investigation into market manipulation linked to trading in the company and its holding companies.
* Paladin Energy Ltd. confirmed that its Langer Heinrich uranium mine in Namibia is being placed under care and maintenance and, it has stopped presenting ore to the plant as the mine enters a "run-down" phase of up to three months. Upon completion of this phase, operations at Langer Heinrich will be completely suspended.
* PJSC Alrosa expects its first-half sales of rough diamonds to be significantly higher than originally expected on the back of a stronger market, Reuters reported. CEO Sergey Ivanov said to the newswire on the sidelines of the St. Petersburg economic forum that the diamond miner's full-year production is forecast to reach 36.6 million carats.
* Mountain Province Diamonds Inc. sold 350,000 carats of diamonds at US$81 per carat for US$28.3 million in proceeds in its fourth diamond sale this year. The proceeds are the highest total for any of the company's tender results to date.
INDUSTRY NEWS
* India's National Stock Exchange and Multi Commodity Exchange are in talks over a potential merger and aim to approach market regulator Securities and Exchange Board of India over the matter as early as this month, Business Standard wrote. According to a source, the merger will help the exchanges reinforce their leadership in the equities and commodity derivatives sectors.
* South African Minister of Mineral Resources Gwede Mantashe said the government intends to finalize the revamped mining charter by the end of June, African News Agency reported.
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