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DRC's revised mining code proposes higher taxes, royalties

TOP NEWS

Congo's revised mining code proposes higher taxes, royalties

The lower house of the Democratic Republic of the Congo adopted a revised mining code that will increase taxes and royalties, Reuters reported, citing members of parliament, who said only relatively minor changes were made to the code. The new mining code was first introduced in 2015 but was suspended due to opposition from mining companies. The code has yet to be approved by the Senate.

BHP mulling higher coking coal production at Queensland mines

BHP Billiton Group is considering higher coking coal production from its mines in Queensland, Australia, amid the commodity's price surge, though a company executive reiterated BHP's ongoing focus on its copper and oil businesses, The Australian reported. Mike Henry, head of BHP's Australian minerals business, said the mining giant is avoiding huge spending on coking coal investments but it continues to develop longer-term options. Henry described BHP's medium-term coking coal output guidance as "light" and "conservative," forecasting about 45 million tonnes of production this year and up to 49 million tonnes per annum in the midterm.

Vale to off-load 20% to 40% stake in New Caledonia nickel ops

Vale SA CEO Fabio Schvartsman said the company plans to off-load between a 20% and 40% stake in its New Caledonia nickel operation, with the sale targeted for completion by 2018. Several parties are in negotiations for the potential stake sale, including Chinese groups, but if the company fails to find a buyer, Vale will move to mothball the mine.

BASE METALS

* Strosberg Sasso Sutts LLP and Groia & Co. Professional Corp. filed a proposed class-action lawsuit in the Ontario Superior Court of Justice against Lundin Mining Corp. and some of its officers and directors. The legal action seeks US$175 million in damages, alleging that the defendants failed to disclose the instability, evacuation and subsequent rock slide at the company's Candelaria copper mine in Chile.

* The Bougainville government of Papua New Guinea is holding talks to determine if Bougainville Copper Ltd. will retain an exploration license for the Bougainville mine, which it was forced to relinquish in 1989, ABC News reported. Meanwhile, a rival consortium backed by RTG Mining Inc. is putting up an opposing bid and said it has the backing of the property's landowners.

* The Mongolian Supreme Court blocked the government's attempt to nationalize a 49% stake in Mongolian Copper Corp. LLC's Erdenet copper mine in the country, Reuters reported, citing sources. The court ruling restored Mongolian Copper's stake in the mine it purchased from the Russian government for US$400 million in 2016.

* OZ Minerals Ltd. awarded an about A$312 million contract to Downer EDI and its joint venture partner Ausenco for work on the company's Carrapateena copper-gold mine in South Australia.

* Zinc explorer Erris Resources is eyeing a listing on London's AIM before the end of the year, The Sunday Times reported. The company has yet to confirm the amount of capital it will seek to raise. Erris has six licenses to explore a site in Ireland that was the site of a lead mine in the 1950s and has entered into a strategic alliance with Centerra Gold Inc. to prospect an area of interest in Sweden for gold.

* Alta Zinc Ltd. posted an updated resource estimate for the Colonna Zorzone deposit at its feasibility-stage Gorno property in Italy, with contained zinc increasing by 3,000 tonnes. Gorno hosts indicated and inferred resources totaling 3.3 million tonnes grading 4.9% zinc, 1.3% lead and 27.2 parts per million of silver for 163,000 tonnes of zinc, 43,000 tonnes of lead and 2.9 million ounces of silver.

PRECIOUS METALS

* The World Bank's compliance adviser ombudsman will investigate Lonmin Plc after a complaint was filed by women in the Marikana community, saying the platinum miner has failed to comply with social and labor plans, fin24 reported.

* Arete Capital Partners, led by former Western Mining CEO Hugh Morgan, agreed to acquire the mothballed Stawell gold mine in Victoria, Australia, from Kirkland Lake Gold Ltd. for an undisclosed sum, The Australian Financial Review reported.

* A potential class-action securities lawsuit filed against Asanko Gold Inc. and several executives in the U.S. District Court for the Eastern District of New York was voluntarily dismissed by the lead plaintiff. The lawsuit claimed the company made misstatements or omissions in a technical report and a press release relating to its mineral resources estimates. Asanko did not pay any consideration in connection with the dismissal.

* GFG Resources Inc. will consolidate a large land package west of Timmins, Ontario, with the acquisition of all the issued shares of Rapier Gold Inc., the West Porcupine gold property from Probe Metals Inc. and the Swayze gold project from Osisko Mining Inc.

* ECR Minerals Plc's interpretation and targeting study using open-file geophysical data in Victoria, Australia, outlined 27 targets within the Avoca and Timor licenses and 20 within the Bailieston and Moormbool licenses.

* Western Australia-focused gold explorer Nelson Resources Ltd. made its debut on the ASX through a A$5 million IPO.

* Goldplat Plc's Goldplat Recovery Pty. Ltd. subsidiary agreed to an arbitration process with Rand Refinery Pty. Ltd. to be conducted in June 2018 to recover amounts owed by the latter to the company.

* An updated resource at Landore Resources Ltd.'s BAM East gold deposit, part of the Junior Lake property in Ontario, estimated indicated resources of 326,000 ounces of gold contained in 7.4 million tonnes grading 1.37 g/t gold. The inferred resource, meanwhile, came in at 74,000 ounces of gold contained in approximately 1.7 million tonnes grading 1.39 g/t gold.

* Serabi Gold Plc updated its mineral reserve estimates for its Palito and Sao Chico gold mining operations in Brazil. The Palito mine now hosts proven and probable reserves of 157,000 ounces of gold and 2,295 tonnes of copper contained within 613,000 tonnes grading 7.99 g/t gold and 0.37% copper. The Sao Chico mine, meanwhile, hosts proven and probable reserves of 24,000 ounces of gold contained in 90,000 tonnes grading 8.43 g/t gold.

* Following successful fundraising, Patagonia Gold Plc plans to exercise an option to acquire the Calcatreu deposit from Pan American Silver Corp. for US$15 million.

* Jangada Mines Plc received government approval for pilot-scale production at its Pedra Branca platinum project in northeastern Brazil. The company now intends to make an application for a trial mining license during the first quarter of 2018.

* Gascoyne Resources Ltd. executed a power purchase agreement with Zenith Energy Ltd. to build, own and operate a 15-MW gas-fired power station for the company's preproduction-stage Dalgaranga gold property in Western Australia.

* Metanor Resources Inc. was found not guilty on charges of criminal negligence in relation to an accident that occurred in October 2009 at the Bachelor gold mine in Quebec, which resulted in three fatalities. The civil claims brought by the families of the workers were settled in 2013.

BULK COMMODITIES

* About 200 coal miners staged an apparent sit-in at four ArcelorMittal coal mines in Kazakhstan after refusing to leave at the end of their shift, Reuters reported, citing a statement from ArcelorMittal's Kazakh unit. The miners have not revealed their demands, and the company did not say whether the situation would impact its steel production. ArcelorMittal operates eight coal mines in the country.

* PJSC Magnitogorsk Iron & Steel Works agreed to acquire Lysva Metallurgical Co., which has the capacity to produce 350,000 tons of cold-rolled coated steel per year.

* Chinese coal imports increased 3.6% on a monthly basis in November to 22.05 million tonnes, but fell compared to year-ago figures of 26.97 million tonnes, Reuters reported, citing Chinese customs data. Year-to-date imports also increased, by 8.4% to 248.17 million tonnes.

* ThyssenKrupp AG tabled a new offer on commitments on jobs and investments to secure support from worker unions for the proposed merger with Tata Steel Ltd.'s European steel operations, Reuters reported, citing people close to the IG Metall labor union. Details of the offer will be discussed at a meeting of management and labor representatives Dec. 12.

* Vale CEO Fabio Schvartsman said it is impossible to say when the miner will be able to resume operations at its Samarco iron ore project in Brazil, a joint venture with BHP, adding that the companies have no control over the release of licenses by the authorities, RTTNews reported.

* China eliminated over 115 million tonnes of steel capacity over the last two years as it moves toward the target of phasing out 150 million tonnes of steel capacity between 2015 and 2020, the 21st Century Business Herald reported, citing a senior official of the Ministry of Industry and Information Technology. Meanwhile, the government is drafting new documents on capacity replacement to cover loopholes in current measures.

* Israel Chemicals Ltd. completed the sale of a 50% stake in desalination and water treatment company IDE Technologies for about US$167 million as part of its strategy to divest noncore businesses. The company expects to record a capital gain of about US$40 million in the fourth quarter from the sale.

* Noble Group Ltd. plans to terminate the deal to off-load its US-based Noble Americas South Bend Ethanol LLC subsidiary and sell it to Mercuria Energy America Inc. unit Mercuria Investments US Inc. for US$15.5 million.

* Norsk Hydro ASA unit Hydro Extruded Solutions AS agreed to acquire two extrusion plants in Utinga and Tubarão in southern Brazil from Arconic Inc. for US$10 million.

* A Resource Generation Ltd. subsidiary entered into an agreement with Noble Group unit Noble Resources International Pte. Ltd. for the supply of additional uncontracted coal from the Boikarabelo mine in South Africa.

* Brazil's full-year primary aluminum export volumes are on track to reach the lowest level on record since at least 1989, Metal Bulletin reported. Shipments of the unwrought metal totaled 190,712 tonnes from January through November, down year over year from 297,639 tonnes, according to the country's foreign trade ministry, MDIC.

SPECIALTY

* Cameco Corp. and National Atomic Co. Kazatomprom JSC completed the restructuring of their Inkai uranium joint venture in Kazakhstan. The restructuring will take effect Jan. 1, 2018, and will see Cameco's ownership in the joint venture reducing to 40% from 60% and Kazatomprom's stake rising to 60% from 40%. Cameco CEO Tim Gitzel said the transaction secures the company's access to a large, low-cost production source through 2045.

* Owing to extreme weather conditions and a weak market environment, Richland Resources Ltd. decided to temporarily halt mining operations at its Capricorn sapphire mine in Queensland, Australia. The company stockpiled gemstones from third-quarter production in order to pursue larger-scale, more strategic sales events at more attractive prices, with the next sales event planned for later this month. While production is suspended, Richland will start exploration to develop and find more resources at the Capricorn license area.

* Stans Energy Corp. and ARMZ Uranium Holding Co. are evaluating the potential for a partnership to redevelop the Zavitinskoye lithium mine in Russia's Trans-Baikal region.

* Mineral Resources Ltd. offered to acquire oil and gas producer AWE Ltd. at 80 Australian cents per share, structured as 1 new Mineral Resources share for each 22.325 AWE shares held, to be effected via a scheme of arrangement. Meanwhile, AWE recommended its shareholders not to take any action until the board evaluates the Mineral Resources proposal and the takeover offer from China Energy Reserve and Chemical Group Australia.

* An optimized pre-feasibility study for Sayona Mining Ltd.'s Authier lithium project in Quebec estimated a pretax net present value, discounted at 8%, of C$221 million, an internal rate of return of 56% and a 2.5-year payback.

* Cadence Minerals Plc signed binding agreements with Lithium Technologies Pty. Ltd. and Lithium Supplies Pty. Ltd. for an option to acquire six prospective hard rock lithium assets in Argentina covering over 55,773 hectares.

* To avoid further delay to its European lithium development strategy, Novo Lítio Ltd. decided to increase its focus on its other projects as it continues to advance legal action in connection with the Sepeda lithium project in Portugal.

* Namibia Rare Earths Inc. is seeking exchange and regulatory approvals to complete the previously announced acquisition of a majority interest in a Namibia-based portfolio of properties from Gecko Namibia Pty. Ltd.

INDUSTRY NEWS

* A report by BIS Oxford Economics forecasts Australia's mining production growth to reach 5.5% in fiscal 2017-18, up from 2.5% in the last fiscal year, with strong growth predicted for the rest of the decade, The Australian Financial Review reported. The report, however, added that Adani Enterprises Ltd.'s Carmichael coal mine in Queensland is unlikely to proceed as the company struggles to close financing.

* Australian miners including Evolution Mining Ltd. and Fortescue Metals Group Ltd. saw increases of up to 1.7% on the ASX as a result of better-than-expected Chinese trade data, Financial Times reported.

* The world's top 25 mining companies had a combined worth of US$709 billion at the end of November. One year ago, the same 25 companies were worth less than US$580 billion, according to S&P Global Market Intelligence's Metals and Mining Research. However, eight of the top 10 companies recorded a decline in their market capitalization, and it was a mixed month for many other global mining companies.

* On the back of rising environmental concerns, China's far western Xinjiang region suspended mining in one of its big nature reserves, Reuters reported, citing the official Xinhua News Agency. The move impacts 69 mining projects in the Altun national nature reserve.

The Daily Dose is updated as of 7 a.m. ET and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.