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Codelco earmarks US$40B until 2026 for smelter upgrades, mine overhauls


According to Market Intelligence, December 2022


Global Clean Action Energy Forum


Insight Monthly, October 2022


Insight Weekly: Stocks endure more pain; bank branch M&A slows; debt ratios fall

Codelco earmarks US$40B until 2026 for smelter upgrades, mine overhauls


Codelco earmarks US$40B until 2026 for smelter upgrades, mine overhauls

Chile's Codelco unveiled a US$40 billion investment program through to 2026, which will focus on the development of key structural projects and smelter upgrades to meet the country's tougher environmental policies, Metal Bulletin wrote. The investments will be financed from the company's own resources and from the coffers of the Chilean government.

Glencore, Bunge in standstill agreement

Glencore Plc has a standstill agreement that temporarily prevents it from making a hostile bid for grain trader Bunge Ltd., The Wall Street Journal reported, citing people familiar with the matter. Bunge rebuffed Glencore's takeover approach in May, and this agreement could mean that the Swiss trader will renew its effort for an acquisition. Given Bunge's market value, a deal for the company would likely carry a price tag of more than US$10 billion, according to the report.

Kobe Steel plans to pay clients' costs relating to mislabeled products

Kobe Steel Ltd. plans to pay customers' costs related to Kobe Steel's mislabeled products, Reuters reported, citing CEO Hiroya Kawasaki. The company extended the list of products compromised by falsified data, including aluminum, copper, iron powder products and metal materials used in optical discs. It is thought that Kobe Steel has not yet received any demand for compensation, but its shares have dropped by as much as 9.1% in the wake of the scandal.


* Elliott Advisors is expected to appear at BHP Billiton Group's annual shareholder meeting in London in the week of Oct. 16 as it continues to push for strategic change at the miner, the Financial Times wrote. The activist investor has not put forward any resolutions for the meeting, but it had urged the company to drop its complex corporate structure and spin off its entire oil business.


* OZ Minerals Ltd.'s Prominent Hill operation in South Australia recorded a strong third quarter with underground production up 15% on a quarterly basis, while unit costs declined 21%. The mine produced 28,880 tonnes of copper and 29,264 ounces of gold during the three-month period.

* Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.'s net profit attributable to shareholders for the first three quarters may surge by between 388.20% and 449.22% from the 163.9 million Chinese yuan recorded a year ago, due to higher prices of lead and zinc products and strengthened cost controls.

* Queensland Mining Corp. Ltd. is selling its White Range copper project in Queensland, Australia, to Moly Mines Ltd. in a A$53 million binding deal.

* Vedanta Resources Plc and its Konkola Copper Mines Plc unit have not given up a legal challenge against a high court ruling that permits members of a Zambian community to claim certain damages in an English court, Miningmx reported. The English High Court of Justice in May 2016 ruled that the English courts have jurisdiction to hear claims by the community that pollution from KCM's operations damaged their livelihoods. Vedanta appealed this decision but it was dismissed by the English Court of Appeal Oct. 13.

* Irish zinc explorer Group Eleven Resources is seeking to raise up to C$10 million in a planned IPO in Canada, with the proceeds to be used to advanced exploration at its prospects and cover corporate costs, the Irish Independent reported.

* Nomad Ventures Inc. changed its name to Bankers Cobalt Corp. and its shares started trading on the TSX Venture Exchange on Oct. 12 under the new symbol BANC. Meanwhile, a wholly owned subsidiary of Bankers Cobalt entered into a definitive agreement to acquire Katanga Cobalt Corp., offering Katanga 1 share of the company against each share held.

* Volkswagen struggled to find any takers for long-term cobalt supply deals as part of its push into electric vehicles, the Financial Times wrote, citing sources. The automaker issued a tender in September seeking a minimum of five years of supply, but it put off miners by proposing a price that was well under current prices, which have surged by more than 80% this year.


* Evolution Mining Ltd. produced a record 220,971 ounces of gold in the September quarter at an all-in sustaining cost of A$786 per ounce, compared to output of 218,079 ounces of gold in the previous quarter at A$825 per ounce.

* Bryah Resources Ltd. is set to list on the ASX on Oct. 17 under the ticker BYH after raising A$5 million in an IPO.

* B2Gold Corp. expects to hit the upper end of its production guidance range for 2017 of between 530,000 and 570,000 ounces of gold as its Fekola mine in Mali ramps up. During 2018, the mine's first full year of production, the company's total production is expected to increase about 70% to between 925,000 and 975,000 ounces.

* Focus Minerals Ltd.'s pre-feasibility study confirmed the financial and technical viability for underground mining at the Bonnie Vale deposit and open pit mining at the Greenfields and Brilliant deposits, part of its Coolgardie gold property in Western Australia, estimating a pretax net present value, discounted at 7.5%, of A$37 million and a 28% internal rate of return, based on a gold price of A$1,580 per ounce.

* Investec Ltd. and Van Eck Associates Corp. acquired shares in Sibanye Gold Ltd. in separate transactions. Investec now owns an approximately 5.14% interest in the miner, while Van Eck now holds an approximately 10.19% stake.

* Chimata Gold Corp. agreed to acquire the Bam gold property in British Columbia from Bearclaw Capital Corp. for C$60,000 and 600,000 shares in stages over a 12-month period.

* MX Gold Corp. signed a letter of intent to acquire Symple Internet Financial Ltd., a private Manitoba-based cryptocurrency/blockchain mining company, for C$150,000 cash and 4.5 million shares as a pilot project to determine the viability of investing in the cryptocurrency industry.

* Melkior Resources Inc. expanded its holdings in Carscallen Township, Ontario, after agreeing to acquire two claims totaling 14 units for C$5,000 and 100,000 shares. The claims form a bridge between the company's Big Marsh and Carscallen properties.

* Eastern Goldfields Ltd. is in talks with a New York-based corporate adviser to manage capital-raising initiatives in order to avoid insolvency and resume trading on the ASX, Mining News reported.

* A Minex Consulting report found that gold exploration spending in Australia will need to double if the country is to maintain current export rates for the metal, The Australian Financial Review wrote. Australia exported about A$18 billion worth of gold in fiscal 2017, driven by surging production rates and high prices. This growth, however, will be short-lived, with the 9.7 million ounces produced in 2016 expected to drop to 4.7 million ounces per year by 2057, the report found.


* China Coal Energy Co. Ltd. produced 58.0 million tonnes of coal in the first nine months of the year, down 3.5% on a yearly basis. Coal sales, meanwhile, fell 4.5% year over year to 95.9 million tonnes.

* South32 Ltd. restarted production at the Longwall 707 of its Appin coal mine in New South Wales, Australia, after completing a review of its Illawarra metallurgical coal operations. The company plans to operate a single longwall at the Appin mine in line with prescribed ramp-up conditions throughout fiscal 2018 and return to a two-longwall operation in the December 2018 quarter.

* Alcoa Inc.'s Portland aluminum smelter in Victoria, Australia, has returned to full production capacity after suffering power issues in December 2016, Mining Weekly reported.

* The government of China's Binzhou city, home to aluminum major China Hongqiao Group Ltd., has ordered the closure of 2.57 million tonnes of annual smelting capacity this winter, Reuters reported, citing a government document.

* North China's Shanxi province plans to shut down another nine coal mines involving a total capacity of 5.3 million tonnes within the year, on top of the original goal of phasing out 18 mines with a combined capacity of 17.4 million tonnes, Xinhua News Agency, reported, citing a circular issued by the provincial government.

* ArcelorMittal increased the size of its debt buyback offer to US$1.41 billion, from up to US$1.25 billion previously, and accepted for repurchase about US$1.19 billion in 2022, 2039, and 2041 notes by the early tender date of Oct. 12.

* Brazilian steelmaker Gerdau SA is increasing its recently reported cash tender offer to US$640 million. The company launched the offer earlier in the month to buy back US$500 million of its 2021, 2020 and 2024 bonds.

* Ukraine's Metinvest BV is considering boosting slab exports next year, with Europe as the preferred location, Metal Bulletin wrote, citing the group's CEO Yuriy Ryzhenkov. To achieve this target, the company will increase semi-finished output by restarting a blast furnace at Azovstal Iron & Steel Works, the executive added.

* Indonesian state miner PT Indonesia Asahan Aluminium Co., or Inalum, plans to complete the creation of a holding company for the country's state miners this year, Kompas reported, citing Inalum President Director Budi Gunadi Sadikin.

* Hesteel Co. Ltd. expects its net profit attributable to shareholders for the third quarter to range between 899.2 million and 1.18 billion Chinese yuan, compared to the net profit of 534.3 million yuan recorded a year ago, attributing the expected improved profitability to price hikes of steel products and strengthened cost controls.

* Queensland Bauxite Ltd. secured the mineral development license for its South Johnstone bauxite project in Queensland, which will allow it to commence initial trial production of the material for potential customer refineries.

* Champion Iron Ltd.'s Québec Iron Ore Inc. subsidiary signed a rail transportation and port-facilities access agreement with Société Ferroviaire et Portuaire de Pointe-Noire for the transportation, unloading, stockpiling and loading of iron ore concentrate from Sept-Iles to Pointe-Noire in Quebec.


* Lynas Corp. Ltd. booked sales of A$112 million in the quarter that ended Sept. 30, representing a 108% increase on a yearly basis, driven by a sharp uptick in the market price for neodymium and praseodymium, strong production performance and sustained demand for the company's products.

* Paladin Energy Ltd. administrators said that Electricite de France SA terminated a long-term supply agreement signed June 8, 2012, after Paladin failed to pay US$277 million by Oct. 9. The company appointed administrators to the company after EDF refused to grant a standstill to the company for the payment, previously due July 10.

* Lithium Australia NL took a 54% controlling stake in the Electra lithium project in Mexico after completing a drilling program. Lithium Australia can ultimately earn a 65% interest in the project under a farm-in deal with Alix Resources Corp.

* S&P Global Ratings lowered its long-term corporate rating on South Africa's Petra Diamonds Ltd. to B from B+ with a stable outlook. The downgrade follows the rating agency's revision of its South African rand exchange rate assumption, and its lower earnings estimate for the company.

* Berkwood Resources Ltd. bought the 40-claim Roscoe vanadium project in Quebec from 1129961 B.C. Ltd. for C$15,000 and 1.5 million shares. The company will own the property with no royalties attached.


* Li Jinming, the former chairman of Chinese state-owned enterprise Guangdong Rising Assets Management, has been turned over to prosecutors for investigation after the company's investments in several Australian mining ventures lost more than A$1 billion, The Australian reported.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

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.