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Fire damages Rio Tinto's Cape Lambert port; India eyeing JV with POSCO, Hyundai

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020


Fire damages Rio Tinto's Cape Lambert port; India eyeing JV with POSCO, Hyundai

TOP NEWS

Fire damages part of Rio Tinto's Cape Lambert port facility

A fire at Rio Tinto's Cape Lambert port facility, which broke out during a maintenance shutdown, damaged a section of the plant; however, no injuries were reported, according to The West Australian. Operations at the port are closed only in the area affected by the fire, and an investigation is underway.

Report: India eyeing JV with South Korea's POSCO, Hyundai Steel

India is eyeing POSCO and Hyundai Steel Co. as potential joint venture partners of state-owned Steel Authority of India Ltd. and Rashtriya Ispat Nigam Ltd., Bloomberg News reported, citing sources. The Indian government is looking to boost local production of high-grade steel, which the country heavily imports despite local availability of high-grade iron ore.

Tanzania fines Acacia over environmental breaches at North Mara gold mine

Acacia Mining PLC's North Mara gold mine received an environmental protection order to pay a fine of 300 million Tanzanian shillings, equivalent to about US$130,000, over alleged environmental breaches. The company said operations at the mine are unaffected, and it is reviewing the technical basis of the allegations.

DIVERSIFIED

* BHP Group Ltd. will consider increasing investment in its U.S. petroleum business after joint venture partner BP PLC approved a US$1.3 billion expansion project at the Atlantis field in the U.S. Gulf of Mexico, The Australian reported. BHP is expected to make its final investment decision early this year.

BASE METALS

* Capstone Mining Corp. expects to produce between 145 million and 160 million pounds of copper in 2019. The company produced 155.2 million pounds of copper in 2018, in line with its guidance for the year.

* Anglo American PLC expects South America to be its main growth area for base metals in the coming years, Reuters wrote, citing the company's head of operations in Brazil, Ruben Fernandes, who is soon to become the global head of base metals. "Anglo is already strong in South Africa and Australia, so South America is an important geographical diversification," Fernandes said, adding that the company will do studies this year to confirm commercial viability for projects in the region.

* Copper production in Chile in the first 11 months of 2018 reached 5.33 million tonnes, rising 6% over the same period of 2017, Reuters reported. BHP's Escondida mine produced 1.15 million tonnes in the period, rising 40.7% year on year.

* Workers at the Chuquicamata mine's unions one, two and three and union one of Antofagasta, Chile, rejected Codelco's offer to bring forward contract negotiations to January instead of waiting for April when the current collective contract expires. Meanwhile, the Sindicato Minero workers union voted in favor of Codelco's proposal, and union five is set to decide in the next few days, daily Diario Financiero reported.

* Larco SA, Europe's largest nickel producer, will reduce production by 20% as part of an emergency agreement with the Greek government to settle its debt and continue operations, Fastmarkets reported. The debt-laden company will also pay €4 million per month to Greek state-controlled electric utility Public Power Corp. SA for electricity consumption.

* Chilean miner Compañía Minera Doña Inés de Collahuasi SCM is in discussions with Teck Resources Ltd. about resource sharing, Reuters reported, citing Executive President Jorge Gomez. The talks are part of Collahuasi's efforts to seek "synergies" with companies operating near the copper mine. These cover sharing pipe and power lines and maritime facilities and possibly sharing desalinated water.

* Surge Exploration Inc.'s board approved a proposed spinoff of the company's interests in the Hedge Hog and Mineral Mountain copper-gold exploration projects in British Columbia into a newly incorporated subsidiary named CuGold Corp.

PRECIOUS METALS

* Sibanye Gold Ltd. reduced its 2018 gold production guidance to about 1.1 million ounces due to the ongoing strike at its South African operations. The company had expected to produce 1.13 Moz to 1.16 Moz in the year. Association of Mineworkers and Construction Union President Joseph Mathunjwa recently said the group plans to continue its labor action at Sibanye's gold operations in South Africa and could extend the strike to the company's platinum mines in the country until the miner accepts its demand for a 1,000 South African rand increment for the next three-year period, Mining Weekly reported.

* Americas Silver Corp. and Pershing Gold Corp. secured requisite approvals from their respective shareholders for a previously announced merger between the companies. Ahead of the deal closing, Americas Silver has been in talks with several parties interested in funding development of the Relief Canyon gold mine in Nevada. The company has shortlisted potential parties and intends to announce its plans by the end of the first quarter.

* Torex Gold Resources Inc. reported record production of 354,000 ounces of gold for 2018, with 348,000 ounces sold. The company added that gold production is expected to be higher in the second half than in the first half.

* Endeavour Silver Corp. reported production for the fourth quarter of 2018 of about 1.39 million ounces of silver and 13,117 ounces of gold, down 4% and 10%, respectively, on a yearly basis. Full-year production on a silver-equivalent basis improved 7% over 2017 to 9.5 million ounces but fell short of guidance by 7%.

* Semafo Inc. achieved record quarterly production of 95,200 ounces of gold for the fourth quarter of 2018, with full-year production of 244,600 ounces falling within guidance.

* Alacer Gold Corp. reported full-year production of 170,865 ounces of gold in 2018, in line with its production guidance.

* In light of recent drilling results, Integra Resources Corp. decided to defer drilling at other areas of its DeLamar gold-silver project in Idaho to focus on the Sullivan Gulch deposit, aiming to drive further resource expansion. It plans to delay the start of the resource estimate update to the second quarter rather than the first quarter to allow more exploration results to be included. This resource update will form the basis of the preliminary economic assessment, which is now scheduled for the second half.

* Valcambi SA put up a US$16 million stalking horse offer to acquire the assets of Republic Metals Corp., which filed for bankruptcy in 2018, Reuters reported, citing a source familiar with the matter.

* Alto Metals Ltd. is rebuilding momentum, assisted by a "high-powered" research committee, in what financial advisory Bell Potter said is a "crucial" year for the junior's Sandstone gold project in Western Australia.

* Perseus Mining Ltd. awarded a US$95.1 million engineering and supply contract for the Yaoure gold project in Cote d'Ivoire to Lycopodium Ltd.

* Dundee Precious Metals Inc. produced 201,100 ounces of gold in 2018 from its Chelopech mine in Bulgaria, beating the full-year guidance of 190,000 to 200,000 ounces. Copper output of 36.7 million pounds was in line with the guidance of 35 million to 38 million pounds.

* Cia. de Minas Buenaventura SAA budgeted an estimated US$130.7 million for exploration in 2018, down slightly from the US$135 million it allocated in 2017. Dedicated entirely to Peru, it was by far the country's largest exploration budget. About 61% of the 2018 budget was devoted to gold, followed by 31% for silver and small amounts for copper and zinc.

* Pretium Resources Inc. produced 96,342 ounces of gold in the fourth quarter of 2018 from its Brucejack mine in British Columbia, up 37.1% year over year. Full-year output stood at 376,012 ounces of gold, below the guidance of 387,000 ounces of gold.

* Royal Gold Inc.'s gold sales dropped 15.4% to about 44,000 ounces in its second fiscal quarter from about 52,000 ounces a year ago. The decline came on the back of operational issues at the Mount Milligan mine in British Columbia and a change in payment scheduling at the Pueblo Viejo operation in the Dominican Republic.

* DRA Global secured an engineering, procurement and construction contract for the Dargues gold mine in New South Wales, Australia. The construction of a 355,000-tonne-per-annum gold processing facility and mine backfill plant will start in February, and first ore is expected to be processed in early 2020. The mine will produce about 50,000 ounces of gold per annum in the first six years of production.

* K2 Gold Corp. secured an option to acquire the silver-lead-zinc-prospective GDR property located north of the British Columbia-Yukon Territory border in Canada.

* Maya Gold & Silver Inc. achieved commercial production Jan. 1 at its Zgounder silver mine in Morocco.

* Vista Gold Corp. plans to complete fine grinding and leaching tests for the Mount Todd gold project in Australia's Northern Territory in the first quarter and follow these results with an updated preliminary feasibility study in the second quarter.

BULK COMMODITIES

* Vanadium One Energy Corp. fulfilled its commitments to acquire titles to 37 claims at the Mont Sorcier iron-titanium-vanadium project in Quebec.

* Iron ore shipments to China from Port Hedland in Australia, which is used by BHP Group Ltd., Fortescue Metals Group Ltd. and Hancock Prospecting Pty. Ltd., jumped 14% in December 2018 to 37.4 million tonnes, compared to 32.9 million tonnes in November 2018, Reuters reported.

* The board of Tata Steel BSL Ltd., previously known as Bhushan Steel Ltd., approved a proposal to raise up to 240 billion Indian rupees through a private placement of preference shares to Tata Steel Ltd.

* The Australian government's Takeovers Panel received an application from minority shareholder Brendon Dunstan to stop Flinders Mines Ltd. from going ahead with its proposed delisting from the ASX.

* Yara International ASA intends to focus on its improvement program amid uncertainty over prices for its products and input factors, Reuters reported, citing CEO Svein Tore Holsether.

* EU members are expected to approve a plan in the week of Jan. 14 to limit steel imports into the bloc in a move against President Donald Trump's imposition of tariffs on steel and aluminum imports, Reuters reported.

* Alderon Iron Ore Corp. may partner with Schneider Electric Canada Inc., a unit of Schneider Electric SE, to source equipment and project financing for the Kami iron ore project in Newfoundland and Labrador.

* White Energy Co. Ltd. said the Singapore International Commercial Court ruled in favor of the company in a dispute with PT Bayan Resources Tbk. over the KSC coal joint venture in Indonesia. The court determined that White Energy unit BCBC Singapore Pte. Ltd. had the financial ability to fund the KSC coal joint venture until the completion of commissioning and testing at the Tabang plant or until June 2012.

* A U.S. federal judge will reopen Alpha Natural Resources Inc.'s bankruptcy case after allegations that its management consulting firm, McKinsey & Co., had a conflict of interest during the case, a McKinsey spokesperson confirmed.

* Trade unions at Polish coal miner Jastrzębska Spółka Węglowa SA are planning to protest against expected management changes at the company, Puls Biznesu reported. The move came after board member Robert Ostrowski stepped down.

* China's Yunnan province achieved its target of eliminating crude steel capacity by 270,000 tonnes in 2018, according to a statement posted on the provincial government's website.

SPECIALTY

* Kenmare Resources PLC's ilmenite production in 2018 totaled 958,500 tonnes, down from 998,200 tonnes in 2017. Fourth-quarter 2018 output jumped 17% year over year to 275,000 tonnes. The company expects ilmenite production to decline slightly in 2019 to between 900,000 and 960,000 tonnes due to an anticipated reduction in grade. Heavy mineral concentrate output in 2018 increased 4% year over year to 1.4 million tonnes.

* Montero Mining & Exploration Ltd. secured exploration licenses for the lithium-prospective Avispa project in Chile's Atacama Desert. The licenses cover 13,800 hectares between Salar de Atacama and northern Chile's coastal range.

* Mineral Commodities Ltd. entered into a term sheet to earn up to a 90% interest in a lithium-tantalum-prospective tenement package in Western Australia by paying A$45,000 and sole-funding exploration work.

* Xiamen Tungsten Co. Ltd. issued a short-term bond offering of 600 million Chinese yuan with a maturity of 260 days.

* Australian Vanadium Ltd. raised about A$7.4 million through the conversion of ASX-listed options, strengthening its cash position to accelerate development at the Gabanintha vanadium project in Western Australia.

* Gemfields Group Ltd. said it submitted a study to the Zambian government on how an increase in mineral royalty rates and new import duties, effective Jan. 1, will impact its earnings, Miningmx reported. However, Zambian Permanent Secretary of Mines Paul Chanda had said none of the companies polled have made any submissions. Gemfields noted it had less than a day to comply with the request.

* Largo Resources Ltd. produced a record 2,595 tonnes of vanadium pentoxide from its Maracas Menchen mine in Brazil in the fourth quarter of 2018, a 2% year-over-year increase. The company also agreed to buy back and retire an additional US$8.1 million of its 9.25% senior secured notes due in 2021.

* Chimata Gold Corp. said Kamativi Tailings Co. Pvt. Ltd. signed a US$9.5 million finance and off-take facility with Transamine Trading SA for concentrate produced from the Kamativi lithium tailings project in Zimbabwe.

INDUSTRY NEWS

* Tanzanian President John Magufuli said the country's central bank should start purchasing locally produced gold to limit smuggling and increase the country's reserves in a bid to stabilize the currency, Reuters reported. Magufuli also asked the new mining minister, Dotto Biteko, to control the artisanal mining market by setting up mineral centers in the country's mineral-rich regions.

* President Donald Trump tapped U.S. Environmental Protection Agency Acting Administrator Andrew Wheeler to officially lead the organization.

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