TOP NEWS
Noble Group reaches restructuring agreement with creditors
Noble Group Ltd. entered into a restructuring support agreement with a group of creditors holding 46% of the existing senior claims. Under the restructuring, all of the existing senior claims, totaling about US$3.45 billion, will be exchanged for a combination of new debt and equity in the company. The agreement includes a new three-year committed trade finance and hedging facility of US$700 million.
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.
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 has centered around minor commodities such as lithium, cobalt, vanadium and graphite. However, there are also implications for major commodities, and it seems likely that nickel will play an important part in this story, according to the Metals & Mining Research Team at S&P Global Market Intelligence.
BASE METALS
* The environmental assessment commission of the Atacama region in northern Chile approved the environmental assessment report of Audley Capital Advisors LLP's US$800 million Mantoverde copper project, operated by the Mantos Copper SA joint venture, after a 13-month review period. With the license approved, construction is expected to begin in 2019, daily El Mostrador reported.
* Samsung Group subsidiary Samsung C&T Corp. is looking to secure an up to two-year deal to purchase cobalt from Somika SPRL, sourced from its Kisanfu mine in the Democratic Republic of the Congo, Bloomberg News reported.
* Magmatic Resources Ltd. secured an option to acquire 100% of E38/2961, also known as the Mount Venn copper-nickel-cobalt project in Western Australia, from Montezuma Mining Co. Ltd.
* 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.
* Turquoise Hill Resources Ltd.'s 66%-owned Oyu Tolgoi LLC subsidiary received a request from the Mongolian Anti-Corruption Authority to disclose financial information. Oyu Tolgoi operates the Oyu Tolgoi copper-gold-silver mine. The company noted that there is no indication that the Oyu Tolgoi unit is a subject of the investigation, which is related to a potential abuse of power by 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.
* 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
* Lingbao Gold Group Co. Ltd. expects a net profit attributable to shareholders of about 70.0 million Chinese yuan for 2017, swinging from the year-ago net loss of 77.5 million yuan. The company attributed the increase to operational efficiency and higher sales volumes of copper products.
* Polymetal International Plc entered into a binding agreement to sell its 50% stake in the Dolinnoye gold property to JSC AK Altynalmas. Dolfinflip Co. Ltd., which owns the other 50% interest, will also sell its stake to Altynalmas. The companies will each receive half of the property's US$33.5 million sale price.
* Ghana's minister of lands and natural resources John Peter Amewu will enter a memorandum of understanding with the protesting workers at Gold Fields Ltd.'s Tarkwa gold project, Mining.com reported. The agreement calls for re-engagement of workers affected by the company's plan to operate the mine via a third party contractor for its remaining life.
* 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.
* 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.
* Cora Gold Ltd. commenced a maiden 2,000 meter drilling program at its Tekeledougou project in Mali.
BULK COMMODITIES
* Bolivia's Senate approved a US$396 million loan from China-based Export-Import Bank of China to fund the state-owned Mutun steel and iron processing plant in Santa Cruz region. The investment will finance 85% of the project costs, while the remaining 15% will come from state funding. Chinese firm Sinosteel Equipment & Engineering Co. Ltd. will be in charge of construction of the plant, which is expected to produce 250,000 annual tonnes of sponge iron, daily La Razón reported.
* 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.
* 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.
* 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 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.
* Violent protests in Guinea hit the aluminum mining towns of Boke and Kamsar and disrupted bauxite shipments, Reuters reported, citing officials.
SPECIALTY
* Kenmare Resources Plc achieved record annual production for ilmenite, rutile and zircon. Ilmenite production increased 11% to 998,200 tonnes, and zircon production was up 9% to 74,000 tonnes, on a yearly basis. Total shipments of finished products increased 2% for a record at 1.04 million tonnes. Revenues increased 47% year over year to US$208.3 million.
* Gem Diamonds Ltd. swung to a profit attributable to shareholders of US$5.5 million in 2017, from a year-ago loss of US$158.8 million in 2016. However, the company decided to hold off a dividend for the year. Meanwhile, the company recovered a 169-carat, top white color, type IIa diamond from the Letseng mine in Lesotho, the seventh diamond of over 100 carats recovered this year.
* Alabama Graphite Corp. shareholders voted 97% in favor of its acquisition by Westwater Resources Inc. The company will now seek approval from the Supreme Court of British Columbia, with deal completion expected in the second quarter.
* Renascor Resources Ltd. is considering either a large-scale or staged development over a 30-year mine life as part of its pre-feasibility study for the Siviour deposit, part of the Arno graphite project in South Australia. Under the immediate large-scale production option, the company estimated at posttax net present value, discounted at 10%, of US$500 million, an internal rate of return of 62% and a 1.8-year payback.
* Afarak Group Plc's application for a new order mining right on its Vlakpoort site was granted, and mining is expected to ramp up to a steady state of around 20,000 tonnes in the third quarter. The mine has a minimum proven resource of 6.6 million tonnes of chrome and 330,314 ounces of platinum group metals.
* Lithium concentrate production started at Tawana Resources NL's Bald Hill lithium-tantalum joint venture in Western Australia with Alliance Mineral Assets Ltd.
* Almonty Industries Inc. signed a 10-year off-take deal 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.
INDUSTRY NEWS
* U.S. President Donald Trump is mulling tariffs of up to US$60 billion on imports from China, focused in the technology and telecommunications sectors, Reuters reported, citing "two people who had discussed the issue with the Trump administration." The administration is also looking into controlling investment from Chinese firms.
* The Minerals Council of Australia released a new energy policy saying that "sustained global action" is needed to cut the effects of human activity on the climate, The Australian reported. BHP Billiton Group previously threatened to leave the council if it did not stop promoting cleaner coal-fired power over other energy sources.
* The 25 largest mining companies continue to increase their market capitalization, 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 continued to lead the pack, though its market value decreased 4.3% to US$119.6 billion.
* 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. London time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.
