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Northern Star makes play for Echo; Fortescue sees hydrogen pivot in steel mills

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TOP NEWS

Northern Star makes takeover play for Echo Resources; FY'19 profit down 20%

Northern Star Resources Ltd. will acquire all shares in Echo Resources Ltd. it does not own for 33 Australian cents per share, representing a A$242.6 million value for the latter. Directors of Echo Resources have unanimously recommended that shareholders accept the offer, in the absence of a superior proposal. As of June 30, Northern Star held a 21.76% stake in Echo Resources. Meanwhile, Northern Star's fiscal 2019 net profit came in at A$154.7 million, a 20% decline from A$194.1 million, due to its A$50 million investment in the Pogo gold project in Alaska.

Fortescue sees hydrogen energy pivot as long-term play in Asian steel mills

Fortescue Metals Group Ltd. CEO Elizabeth Gaines said Fortescue's conversations with iron ore customers had revealed that while there is "no doubt" Asian steel mills are looking at using hydrogen in their processes, it is unlikely to be adopted until at least 2030.

Teck to curtail output at Trail zinc refinery by 25%

Teck Resources Ltd. will reduce production capacity at its Trail zinc refinery in British Columbia by about 25% after an electrical equipment failure that affected one of the four rectifiers used at the refinery. The curtailment will result in production loss of between 20,000 tonnes and 30,000 tonnes.

DIVERSIFIED

* A group of shareholders of Wanguo International Mining Group Ltd. terminated a memorandum of understanding and negotiations with potential buyers who had intend to acquire about 40.126% of the company's enlarged issued share capital.

BASE METALS

* Sandfire Resources NL's fiscal 2019 net profit slipped to A$106.5 million, or 65.2 cents per share, from A$123.0 million, or 77.9 cents per share, on the back of weaker copper prices. The copper-gold producer declared a final fully franked dividend of 16 cents per share, lower than year-ago distribution 19 cents per share.

* First Cobalt Corp. and Glencore AG signed a definitive agreement for the planned restart of the First Cobalt refinery in Ontario.

* Superior Lake Resources Ltd. received nonbinding indicative proposals of between US$50 million and US$70 million to fund the development of its Superior Lake zinc project in Ontario.

* Nexa Resources SA agreed to acquire the issued share capital of Karmin Exploration Inc. in a US$69.3 million deal. Karmin's board of directors unanimously recommended the transaction.

* Rio Tinto subsidiary Rio Tinto Exploration Canada Inc. secured an option to acquire the Andalusite Peak copper-gold-silver property in British Columbia that was staked by Triumph Gold Corp. in January 2017.

* Chile announced a US$600 million in additional stimulus to boost its economy, which has suffered from slumping copper prices, Reuters reported.

* German copper products maker Wieland-Werke AG plans to slash working hours at its plant in Villingen in southern Germany due to the slowing global economy, Reuters reported.

* Blackstone Resources AG entered a strategic alliance for a nickel joint venture in Indonesia. The deal with the unnamed joint venture partner will initially involve exporting ore, concentrates and refined products of nickel, copper and other technology metals before progressing to non-ore products later this year.

* Rafaella Resources Ltd. closed its acquisition of the Santa Comba tin-tungsten project in Spain.

* All Northern Cobalt Ltd. nonexecutive directors have agreed to reduce their board fees by 50%, in line with current market conditions, as the explorer is undergoing a review of its projects and activities.

PRECIOUS METALS

* Northern Star Managing Director Bill Beament flagged its interest in acquiring the Kalgoorlie Super Pit in Western Australia from joint venture partners Barrick Gold Corp. and Newmont Goldcorp Corp., but warned it must meet its stringent investment criteria, The Australian Financial Review reported.

* Polymetal International PLC's first-half net earnings shrunk 13% to US$153 million, or 33 cents per basic share, resulting from foreign exchange losses on U.S. dollar denominated intercompany loans between entities with different functional currencies. Higher operating profit, however, pushed underlying profit up 21% to US$188 million. Meanwhile, the gold miner declared an interim dividend of 20 cents per share, up from 17 cents per share declared in the half-year period a year ago and bringing total dividend declared this year to 51 cents per share.

* Metalicity Ltd. acquired license P40/1331 in Western Australia for A$20,000 in staged payments, plus a 1% net smelter returns royalty. The license is contiguous with Nex Metals Explorations Ltd.'s Kookynie gold project, which Metalicity is earning up to a 51% joint venture interest.

* Centerra Gold Inc. said the remaining legal proceedings related to the Kumtor gold mine in Kyrgyzstan have been terminated to complete a strategic agreement reached in September 2017.

* Argonaut Gold Inc. expects to extend the life of the El Castillo gold mine in Mexico, its highest-cost operation, after signing a series of collar option contracts on a portion of the remaining life-of-mine production.

* Minera Yanacocha S.R.L. does not plan to resume construction at the Conga gold project in Peru's Cajamarca region, which as been suspended since 2011, due to social opposition, La República reported, citing Yanacocha general manager, Yuri Sáenz.

* IAMGOLD Corp. resumed partial operations at its Rosebel gold mine in Suriname following a suspension earlier this month due to a clash between police and illegal miners that left one miner dead.

* Australian gold output surged to an all-time record of 321 tonnes or 10.3 million ounces in financial year 2018-2019, from 317 tonnes in the previous year, Australian Mining wrote.

* La Mancha Resources Inc. Chairman Naguib Sawiris plans to invest in gold and copper mining in Egypt after learning the details of the amendments made to his home country's mining law, Reuters reported.

* Nevada Gold Mines LLC, a joint venture between Barrick and Newmont Goldcorp, will provide support for the victims of an accident between a truck hauling ore and a bus carrying the company's employees on State Route 766 that left two dead and several injured, Elko Daily Free Press reported. Meanwhile, U.S. Senator Catherine Cortez Masto met senior leadership of Nevada Gold Mines at the latter's headquarters and discussed the social and economic impact of the consortium's operations.

* China's net gold imports via Hong Kong in July dropped 42% to 8.09 tonnes in July from 14.04 tonnes in June, Reuters reported, citing data from the Hong Kong Census and Statistics Department.

BULK COMMODITIES

* Mine investor Anglo Pacific plans to spend £100 million to back struggling mining projects, The Telegraph reported, citing CEO Julian Treger.

* The Gomeroi Traditional Custodians are suing Australia's Environment Minister Sussan Ley for favoring the development of China Shenhua Energy Co. Ltd.'s Watermark coal project in New South Wales over the protection of sacred sites, ABC News wrote.

* Bathurst Resources Ltd. declared a maiden dividend of 0.3 Australian cent per share for its fiscal 2019 ended June 30, to be paid out Oct. 23.

* Kalium Lakes Ltd. received a credit-approved offer from Westpac Banking Corp. for a A$15 million working capital facility and a hedging facility for the Beyondie sulfate of potash project in Western Australia. A final investment decision is on target in the current quarter.

SPECIALTY

* Pilbara Minerals Ltd. executed a binding terms sheet with POSCO to build a 40,000-tonne-per-annum lithium hydroxide and carbonate chemical conversion facility in South Korea. Separately, the Australian explorer opted to advance optimized stage-two expansion studies for the Pilgangoora lithium project in Western Australia after closing its partnering process for the operation.

* Argosy Minerals Ltd. exercised its option to acquire the Tonopah lithium project in Nevada.

* Galaxy Resources Ltd. reached an agreement with a consortium of lenders, led by funds managed by Tribeca Investment Partners Pty. Ltd., to acquire a senior secured loan facility extended to Alita Resources Ltd. for US$31.1 million.

* Ceylon Graphite Corp.'s Sarcon Development (Pvt) Ltd. unit received a category A industrial mining license for its K1 graphite project in Sri Lanka after recently obtaining an environmental approval.

* Stans Energy Corp. is disappointed by the US$24 million arbitration award it received over Kyrgyzstan's seizure of the Kutessay II rare earths mine as it was small compared to the US$219 million claim it had filed in January 2016. Stans is working with its legal team for its next move.

* Liontown Resources Ltd. will begin a 15,000-meter reverse circulation/diamond core drilling program at the Kathleen Valley lithium project in Western Australia, which aims to expand the current resource estimate as well as define potential underground resources and reserves.

INDUSTRY NEWS

* Chinese lawmakers passed a new law allowing local governments to tax as many as 164 different resources, including minerals, fossil fuels and water, Reuters reported, citing the Chinese finance ministry.

* Leading Argentinian presidential candidate Alberto Fernandez met with mining companies, including Glencore PLC, Newmont Goldcorp and POSCO, to discuss his team's plan to create a legal framework that provides certainty for investments in the mining sector, Reuters reported.

* Drilling services provider Boart Longyear Ltd. swung to a first-half net profit of A$2 million, from a year-ago loss of A$16 million and representing its first positive profit in seven years. Revenue, meanwhile, grew 4.6% to A$17 million.

* Australia-listed mining services provider Swick Mining Services Ltd. restored its dividend distribution after posting a A$1.0 million profit for its fiscal 2019, reversing course from a A$1.0 million loss a year prior.

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