TOP NEWS
China to create natural resources, ecological ministries in sweeping revamp
China presented a plan to overhaul its central government structure, involving more than two dozen ministries and organizations, as the Communist Party seeks greater control and reduced red tape, media reports said. The country will create a natural resources ministry to bring together scattered functions across different agencies. It will also set up a ministry of ecological environment to centralize water pollution management and to oversee climate change issues, a function previously managed by the National Development and Reform Commission, the South China Morning Post reported, adding that the country will also establish a new immigration bureau, a special agency for veterans and a health commission that will partly replace the family-planning commission.
Nutrien may lose premium bid for SQM stake over Chinese fears
Chilean fears over Chinese domination in the lithium sector may hurt the price Nutrien Ltd. gets for its lucrative 32% stake in key lithium producer Sociedad Quimica y Minera de Chile SA as Chile seeks to block the divestment to any Chinese company, analysts say. "It probably takes away from the price a little bit," said Laurentian Bank mining analyst John Chu, who covers Nutrien. "The more buyers you have, obviously, that creates a bit more of a bidding war."
Brazil probing pipeline leak at Anglo's Minas Rio iron ore mine
Federal prosecutors in Brazil launched an investigation into an ore pipeline rupture at Anglo American Plc's Minas Rio iron ore mine in the country's Minas Gerais state, Reuters reported. The mining major recently halted operations at the site, as the incident resulted in the leaking of a mixture of iron ore and water to a local watershed.
DIVERSIFIED
* The recent buzz in the commodities sector around lithium-ion batteries and their use in the growing electric vehicle market has centered around relatively minor commodities such as lithium, cobalt, vanadium and graphite. However, there are also implications for major commodities, and it seems likely, based on current technology, that nickel will play an important part in this story, according to the Metals & Mining Research Team at S&P Global Market Intelligence.
* Vedanta Resources Plc approved an interim dividend of 21.20 Indian rupees per share, or 78.81 billion rupees, for its fiscal year ending March 31. The approved payout is the highest ever by the company in a financial year.
BASE METALS
* Trevali Mining Corp.'s fourth-quarter 2017 net income rose to US$25.2 million from US$7 million in the same quarter of 2016. The company produced 104.8 million pounds of zinc, 13.5 million pounds of lead and 396,899 ounces of silver, compared to 36.8 million pounds of zinc, 11.3 million pounds of lead and 409,653 ounces of silver in the fourth quarter of 2016.
* Antofagasta Plc declared a final dividend of 40.6 U.S. cents per share for a total dividend of 50.9 cents per share for 2017, a 176.6% increase over the previous year. Profit attributable to shareholders surged to US$750.6 million in the year, from US$158.0 million a year ago, on the back of an improved copper market and cost management by the company.
* Turquoise Hill Resources Ltd.'s 66%-owned Oyu Tolgoi LLC subsidiary received a request from the Mongolian Anti-Corruption Authority to disclose certain financial information. Oyu Tolgoi operates the Oyu Tolgoi copper-gold-silver mine in the country. The company noted that there is no indication in the request that the Oyu Tolgoi unit is a subject of the investigation, which is related to a potential abuse of power by certain officials during the negotiations of a 2009 investment agreement.
* Canyon Copper Corp. completed the sale of its Moonlight copper property in California to Crown Mining Corp.
* Sims Metal Management Ltd. acquired U.K.-based metal recycling company Morley Waste Traders and the Lord and Midgley businesses.
* Raiden Resources Ltd. signed an agreement with Rio Tinto unit Rio Tinto Mining & Exploration Ltd. for an option to earn up to a 75% joint venture interest in three of the former's exploration licenses in Serbia for US$31.5 million.
PRECIOUS METALS
* Endeavour Mining Corp. posted a net loss of US$134 million for the fourth quarter of 2017, widening from a year-ago loss of US$69 million. The company booked an impairment charge of US$130 million on its Tabakoto gold project in Mali and a US$44 million net loss on the sale of the Nzema mine in Ghana.
* Altus Strategies Plc defined a new gold prospect measuring 2.3 kilometers in length within its Sebessounkoto Sud license in western Mali. The company said the new Soa prospect was defined during a recent exploration program that included mapping, prospecting, spoil and termite mound sampling, and investigating recently opened artisanal workings.
* Northern Vertex Mining Corp. achieved first gold pour at its Moss mine in Arizona and secured a US$100 million commitment from Sprott Private Resource Lending LP for future acquisitions and development projects.
* Intermin Resources Ltd. released an initial resource estimate for its Anthill gold project in Western Australia, with 75% of resources categorized as indicated and mineralization remaining open in all directions. The property hosts indicated and inferred resources containing 78,000 ounces of gold within 1.4 million tonnes at an average grade of 1.72 g/t of gold.
BULK COMMODITIES
* Anglo American launched its sustainability strategy outlining targets to reduce greenhouse gas emissions and improve energy efficiency across its operations by 30% by 2030. The mining major will also look to lower freshwater use by half in water-scarce regions.
* Norsk Hydro ASA was ordered by the public prosecutor of Brazil's Pará state to undertake corrective measures at its Alunorte alumina refinery within 48 hours, after the company's internal task force reported its preliminary findings in the wake of flooding at the site related to heavy rainfall on Feb. 16-17.
* Bloomberg News reported citing sources that Noble Group Ltd. is racing to reach a restructuring deal before a US$379 million bond maturity on March 20. Two sources told Bloomberg that the company may continue trading even after a default on the 2018 bond, as its deal with most creditors would lower the chances of enforcement proceedings.
* Australian economists are lining up to downplay any significant impact from U.S. President Donald Trump's decision to put heavy tariffs on steel and aluminum imports, with the resources sector set to benefit from the growing list of trade deals in which Australia, China and the U.S. are involved. Westpac senior economist Justin Smirk said all that saber rattling was just "bluster," and the tariffs implemented thus far "in all honesty aren't really that much of a big deal in terms of impact on steel and global production."
* Canadian coal firm Riversdale Resources Ltd. will seek to raise up to A$132.7 million from its IPO on the ASX, The Australian Financial Review's Street Talk wrote. The transaction would value the company at up to A$532.4 million.
* Four trade unions in India are set to stage a one-day strike on April 16 to protest the government's move to open up commercial coal mining to the private sector, The Hindu reported. The action will affect the operations of Coal India Ltd. and Singareni Collieries Co. Ltd.
* AK Steel Holding Corp. said that members of the International Association of Machinists and Aerospace Workers Local 1943 voted to ratify a two-year labor agreement at its Middletown, Ohio-based integrated steel production facility.
* U.S. Steel Corp. priced its US$650 million aggregate principal amount of 6.250% senior notes due 2026. The proceeds, together with cash on hand, will be used to fund the redemption of its 8.375% senior secured notes due 2021.
* Russian mining major SUEK Ltd. secured a US$1.06 billion pre-export loan facility with a five-year maturity, which will be used for refinancing as well as for general corporate purposes.
* Sean Donnelly, CEO of ArcelorMittal unit ArcelorMittal Dofasco GP, said the company is not requesting the Canadian government's aid as the domestic steel industry faces uncertainty following the announcement of steel tariffs by the U.S. Donnelly added that the government must use resources to ensure that cheap steel is not diverted to Canada.
* EuroChem Mineral Chemical Co. OJSC's Usolskiy potash plant in Russia produced its first potash, while the initial ready-for-sale potash from the facility is due in the second quarter, Reuters reported. The company plans to produce about 450,000 tonnes of ready product by the end of this year.
* Rail freight operator Aurizon Holdings Ltd. said a preliminary decision from the competition authority in Queensland, Australia, over the pricing of access to its rail network will limit its revenue to a maximum of A$3.89 billion from the Queensland coal network, A$1 billion lower than the company's proposal, The Australian reported. The company said "the proposed rate of return of 5.41% does not promote the economically efficient operation of, use of and investment in" the coal network.
* Violent protests in Guinea hit the aluminum mining towns of Boke and Kamsar and disrupted some bauxite shipments, Reuters reported, citing officials.
SPECIALTY
* Almonty Industries Inc. signed a 10-year off-take agreement with an existing customer for the tungsten concentrate to be mined and processed at the company's Sangdong mine in South Korea. The company expects to generate at least C$500 million in revenues under the deal.
* Gem Diamonds Ltd. sold its exceptional-quality, 910-carat, D-color, Type IIa diamond for US$40 million on tender in Antwerp, Belgium. The diamond, recovered from the Letseng mine in Lesotho, was named The Lesotho Legend.
INDUSTRY NEWS
* The 25 largest mining companies continue to increase their market capitalization, with the top 25 being worth an aggregate US$819 billion at the end of February. In comparison, the top 25 companies a year ago were worth just below US$645 billion. BHP Billiton Group continued to lead the pack, though its market value decreased 4.3% to US$119.6 billion.
* China's plans to set up three ministries to oversee the mining sector as part of sweeping government reforms are expected to strengthen the country's ongoing crackdown on pollution by resource producers, according to Li Zhiqing, deputy director of Fudan University's research center for environmental economics.
* The Indonesian Energy Ministry will offer 16 mining concessions in Sumatra, Kalimantan and Sulawesi in April, Kontan reported.
The Daily Dose is updated as of 7 a.m. Hong Kong time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.
