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Sibanye Gold to acquire Lonmin in £285M deal

TOP NEWS

Sibanye Gold to acquire Lonmin in £285M deal

Sibanye Gold Ltd. agreed on terms of an all-share offer to wholly acquire Lonmin Plc. Under the offer, each Lonmin share will be exchanged for 0.967 new Sibanye shares, valuing the company at about £285 million. Shares in Lonmin jumped 28%, while those of Sibanye Gold slid 4.4% on the news, BusinessDay reported.

Report: Liberty House sets sights on Rio Tinto's Dunkerque smelter in France

Liberty House is mulling a bid for Rio Tinto's Dunkerque smelter as the company looks to off-load its aluminum assets in France, Reuters reported, citing "three sources with direct knowledge of the matter." The U.K.-based GFG Alliance, which comprises Gupta's Liberty House Group and SIMEC, was previously reported to be looking to expand its aluminum business.

Glencore CEO expects to close Tahmoor coal mine sale 'shortly'

Glencore Plc CEO Ivan Glasenberg expects the sale of the Tahmoor coal operations in New South Wales, Australia, to close "shortly," saying the company is in detailed negotiations over the transaction, The Australian Financial Review reported. The CEO further said the company could also consider divesting its Oaky North and Oaky Creek coking coal mines in Queensland, where workers have been striking for over 150 days.

BASE METALS

* The governments of Argentina and Chile signed an agreement that would facilitate the removal of 40 million tonnes of mineral waste dumped by Antofagasta Plc's Los Pelambres copper project on the Cerro Amarillo tailings deposit, on what is today property of Glencore's El Pachon copper project in Argentina. The deal follows an Argentinean federal judge ruling ordering Los Pelambres to begin relocating the waste to a dump on Chilean soil by Dec. 15, daily El Cronista reported.

* Codelco is set to end the year with a gross debt of US$13.9 billion, below the US$14.1 billion reported in 2016. It is the first time this figure will decline since 2008, Chairman of the Board, Oscar Landerretche said in a master class given to MBA students, daily Pulso reported.

* Peruvian environmental watchdog OEFA ordered Southern Peru Copper Corp. to suspend loading and transport of copper concentrate on trucks to the port terminal of Ilo in the Moquegua region, while it investigates claims that it is affecting the health of nearby residents, daily La República reported.

* Golden Rim Resources Ltd. kicked off a scoping study at its 73%-owned Paguanta zinc-silver-lead project in Chile.

* Evrim Resources Corp. signed an agreement with a subsidiary of Antofagasta allowing the latter to acquire a 70% stake in the former's Axe copper-gold property in British Columbia by completing payment and spending milestones over a 10-year period.

* An independent pre-feasibility study for the planned redevelopment of Ivanhoe Mines Ltd.'s Kipushi zinc-copper-silver mine in the Democratic Republic of the Congo pegged pre-production CapEx at US$337 million with payback in 2.2 years. The mine will have an after-tax net present value of US$683 million, at an 8% discount rate, and an internal rate of return of 35%.

* Hindustan Copper Ltd. restarted its Kendadih copper mine, part of the Indian Copper Complex in India's Jharkhand state, after securing all statutory clearances. The mine has been shut since February 2000 due to economic reasons.

* PolyMet Mining Corp. filed a revised permit to mine application for its NorthMet copper project in Minnesota, which provides for US$75 million in financial assurance for the first two years of construction as well as US$544 million to cover closure and reclamation costs.

PRECIOUS METALS

* Hunan Gold Corp. Ltd.'s parent Hunan Gold Group LLC secured authorities' approval to issue convertible bonds of no more than 1.2 billion Chinese yuan within the next 12 months.

* China Nonferrous Gold Ltd. secured a one-year extension for the repayment of a total US$6.5 million loan facility with CNMC International Capitals Co. Ltd. The first US$1 million repayment was scheduled for Dec. 15.

* Maritime Resources Corp. secured an option to earn a 100% interest in the Strugglers Pond gold property located in the Whisker Valley land package in Newfoundland and Labrador.

* Encounter Resources Ltd. secured over 4,200 square kilometers of new gold tenements in the Tanami region of Western Australia. The tenements are currently being assessed under the project generation alliance with Newcrest Mining Ltd. and will enter a 50/50 joint venture if approved.

* Teranga Gold Corp. and private firm Sodim Ltd. agreed to create a joint venture for the exploration and development of the Afema land package in Ivory Coast, which covers more than 1,400 square kilometers and includes a historical gold resource.

* Canadian Mining Corp. canceled the previously announced purchase of the Ghana gold project from Crust Resources Corp. without giving further details.

* Axe Exploration Inc. is seeking to evaluate new opportunities and eventually redirect its business to cryptocurrency and blockchain, as part of its ongoing efforts to increase shareholder value.

BULK COMMODITIES

* The Chinese government approved the construction of an open pit coal mine in Inner Mongolia owned by state utility China Guodian Corp., Reuters reported. The mine will cost about 4.2 billion Chinese yuan and will have a capacity of 15 million tonnes.

* Ezz Steel Co.'s net loss in the first nine months of the year swelled to 1.39 billion Egyptian pounds, or 2.55 pounds per share, from the year-ago loss of 564 million pounds, or 1.04 pounds apiece. Net sales in the period, however, surged 97% year over year to 29.35 billion pounds. The company said it was unable to meet its working capital requirements due to adverse conditions in the Egyptian financial environment, an extremely high level of interest rates and shortage of liquidity in the banking system.

* Norsk Hydro ASA has decided to upgrade and start up the second production line at the Hydro Husnes smelter in Norway, which will double the production of primary aluminium at the operations to about 190,000 tonnes of aluminum per year.

* Ternium Mexico SA de CV confirmed a temporary "technical halt" of iron ore production at its Aquila mine in Mexico's Michoacán state, which has been affected by a political protest blocking access for vehicles to and from nearby federal highway Mexico 200. The miner's decision affects 650 union workers and around 500 contractor workers, daily Cambio de Michoacan reported.

* Fertoz Ltd. signed a memorandum of understanding to advance the use of its organic rock phosphate blends into Providence Grain Group Inc.'s grain and inputs business. The companies are working on turning the MOU into a definitive distribution and sales agreement centered on the prairie provinces of Canada.

* U.S. thermal coal production and consumption are projected to remain relatively flat in the year ahead, while metallurgical coal will continue to experience price volatility, according to Moody's 2018 outlook. The rating agency estimates thermal coal production will settle at 788 million tons in 2018, a trivial decrease from this year's 790 million tons but a plunge of 27.3% from 1.084 billion tons in 2010.

* Acacia Coal Ltd. decided to unwind its option to acquire 74% of the Riversdale anthracite colliery in South Africa, citing uncertainty for public companies to develop projects in the country.

* As it continues to consider whether to appeal its recent legal loss to Clive Palmer, Citic Ltd. will kick off a campaign aimed at promoting the economic benefits of its A$12 billion Sino-Iron magnetite project in Western Australia, The Australian wrote. The campaign will feature economic modelling showing the mine will spend an additional A$51 billion on goods and services procurement over the next 40 years, as well as A$8.7 billion on wages for workers.

* Indonesia's Gunung Steel Group signed a memorandum of understanding with China's Shenwu Technology Corp. to build a 3 million-tonne-per-annum steel plant in Batulicin, South Kalimantan, with an estimated investment of US$3 billion, the Jakarta Globe reported.

SPECIALTY

* The environmental court of Antofagasta in Chile ordered Sociedad Quimica y Minera de Chile SA to temporarily and partially close the water extraction wells located in the Salar de Llamara. The company expects a negative impact targeted production capacity of 14,000 tonnes per year of iodine that is under construction.

* Black Rock Mining Ltd. tapped CPC Project Design to conduct a definitive feasibility study at its wholly owned Mahenge graphite project in Tanzania. The engineering study will commence in early January 2018.

* Hannans Ltd. secured a new tenure covering about 260 square kilometers prospective for lithium mineralization at its Forrestania project in Western Australia.

* Volt Resources Ltd. will proceed with the issue of US$40 million in structured debt funding for the development of first stage of the Bunyu graphite project in Tanzania.

* Westwater Resources Inc. agreed to acquire Alabama Graphite Corp. in an all-stock deal. The transaction will see Alabama Graphite shareholders receive 0.08 of a Westwater share for each share held. The management and board of both companies unanimously support the proposed merger.

* Pilbara Minerals Ltd. increased the CapEx estimate for the stage-one development of its Pilgangoora lithium property in Western Australia by 17% to A$274 million.

* Aura Energy Ltd. started the process of spinning out its Haggan uranium project in Sweden into a new company and listing the new company on multiple international exchanges to maximize the project's battery metal content.

INDUSTRY NEWS

* The mining companies with the 20 largest exploration budgets this year allocated a total of US$2.48 billion for exploration during the year, accounting for 31% of the US$7.95 billion global exploration budget, according to SNL Metals and Mining Research.

* Former Anglo American Plc executives Sebastian Kreft and Frank Jackel have launched Metalshub, a digital marketplace for platform-based trading of metals and ferroalloys, Metal Bulletin reported. The platform is initially handling chrome, manganese, molybdenum, nickel, niobium and vanadium.

* Saudi Arabia will form an export bank with US$8 billion in capital to back foreign sales by its industrial and mining projects, Reuters reported, citing energy, industry and mineral resources minister Khalid al-Falih.

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