TOP NEWS
US senators move to block Trump tariffs
Republican and Democratic U.S. senators plan to block President Donald Trump's move to impose tariffs on national security grounds by introducing legislation that would require him to secure approval from the Congress first, Reuters wrote, citing a senior senator. Republican Senator Bob Corker, who also chairs the Foreign Relations Committee, said the legislation could be unveiled June 6.
Aluminum producer China Hongqiao secures US$4.7B to upgrade manufacturing
Aluminum producer China Hongqiao Group Ltd. secured funding of 30 billion Chinese yuan, or about US$4.7 billion, to upgrade its manufacturing facilities, Reuters reported. The financing agreement with Industrial Bank Co. Ltd. will allow the company to construct facilities for producing lightweight automobile parts and other downstream products.
Glencore, partner looking to bag Chevron's South African oil assets in US$900M deal
Glencore PLC and Off The Shelf Investments Fifty Six (RF) Pty. Ltd. are in the running to purchase Chevron Corp.'s South African assets in a 50/50 joint deal estimated to be worth US$900 million, a source familiar with the matter told S&P Global Market Intelligence.
DIVERSIFIED
* Rio Tinto awarded a contract for waste management services covering 16 mine sites and two ports in Western Australia's Pilbara region to Pilbara Aboriginal business North West Alliance.
BASE METALS
* Adrian Day Asset Management, one of Nevsun Resources Ltd.'s top 10 shareholders, urged the company to enter "good-faith negotiations with any suitor," regarding a proposed takeover, Reuters reported. Nevsun recently attracted a joint bid from Lundin Mining Corp. and Euro Sun Mining Inc., which it rejected. "We would urge the company to use all efforts to maximize value for shareholders... even if it does mean breaking up the company," said Adrian Day, the asset management firm's chairman.
* MinRex Resources Ltd. estimated a JORC 2012-compliant maiden inferred mineral resource at its Pacific Express project in New South Wales, Australia, of 697,000 tonnes at 1,157 parts per million cobalt, 9,043 ppm nickel and 39.5 ppm scandium.
* Clive Palmer said his company QNI Resources Pty. Ltd. should be allowed to reopen the nickel refinery in north Queensland, Australia, and has approved plans for the restart, The Australian reported. The refinery ceased operations after a separate Palmer-owned company went into voluntary administration.
* Greenfields Exploration Ltd. will have its looming crowd-sourced competition results to find targets for its Frontier project in Greenland assessed by a Center for Exploration Targeting doctorate student, which will be a new step for the mining industry, according to an independent geological expert who has placed third in similar competitions run by Integra Gold Corp. and Endomines AB.
PRECIOUS METALS
* Colorado-based Newmont Mining Corp. remained the world's second-largest gold producer in 2017, although its attributable output of almost 5.3 million ounces was just 57,000 ounces shy of first-place Barrick Gold Corp., its peer and partner in several operations. Newmont ended 2017 with US$3.3 billion cash on hand and US$800 million of debt on its books. Its strong financial picture leaves the company well-positioned to complete several brownfields expansions that will offset declining production at maturing operations.
* Harmony Gold Mining Co. Ltd.'s Johannesburg shares were down about 9% in afternoon trading after it raised about US$82 million via a share placement and a subscription by its black economic empowerment partner. It originally sought to raise about US$100 million.
* North American Palladium Ltd. signed a letter of intent with Kiashke Zaaging Anishinaabek, also known as the Gull Bay First Nation, over the Lac des Iles palladium operations in Ontario, outlining certain outstanding matters that will be further negotiated and defined in a more detailed participation agreement in the near future. As a result, the Gull Bay members agreed to end their gathering at the primary access road to the mine.
* Goldcorp Inc. signed an impact benefit agreement with three First Nation communities in northern Ontario related to the development of the gold major's Borden Lake project, which is set to contribute ore to its Porcupine mill starting in 2019. The agreement is with the Brunswick House, Chapleau Cree and Chapleau Ojibwe First Nations and covers issues related to permitting, labor, training and contracting opportunities.
* The gold market could be using bitcoin-style technology to track a nearly US$200 billion supply chain by 2019, Bloomberg News wrote. Most of the 25 respondents invited by the London Bullion Market Association to submit ideas for how to track the precious metal incorporated distributed-ledger technology in their plans.
* Zimplats Holdings Ltd. agreed to release 23,903 hectares of land to the government of Zimbabwe to settle an ongoing dispute, which arose in 2013 after the government announced its intention to seize 27,948 hectares within the miner's special mining lease area.
* Ramelius Resources Ltd. said ore reserve for the Greenfinch deposit, part of the Edna May gold mine in Western Australia, increased by 88% to 62,000 ounces of gold contained in 1.7 million tonnes grading 1.2 g/t gold.
* Orinoco Gold Ltd. expects to lift force majeure and resume normal activities at its Cascavel gold mine in Brazil on June 9, following the conclusion of the truck drivers' strike in the country as well as the completion of plant maintenance and repairs at the site.
BULK COMMODITIES
* The European Union plans to hit U.S. imports with retaliatory tariffs from July, in response to the tariffs imposed on incoming EU steel and aluminum by Washington, Reuters reported. EU members are supporting a European Commission plan to establish 25% duties on up to €2.8 billion of U.S. exports.
* North China's Hebei province intends to close 22 coal mines this year, phasing out more than 12 million tonnes of coal production capacity, the state-run Xinhua news agency reported.
* Germany's government appointed a 24-member group to plan out the country's exit from coal-fired power generation in an effort to meet ambitious climate goals by 2030, Reuters reported.
* Pacific Bauxite Ltd. suspended exploration at its Nendo bauxite project in the Solomon Islands after the minister of mines, energy and rural electrification canceled the prospecting license hosting the project in late May. The company said the cancellation of PL 01/16, held by its 50%-owned joint venture subsidiary Eight South Investments Pty. Ltd., was "completely unexpected", adding that it will appeal the minister's decision in the country's High Court.
* Seriti Resources Pty. Ltd. would be interested in buying the assets and quotas of the Gupta family-owned Optimum Coal Holdings Ltd. in South Africa as it looks to move into exporting coal, Reuters reported, citing CEO Mike Teke.
* Labor representatives at Germany's ThyssenKrupp AG reiterated their concern over the company's planned merger with Tata Steel Ltd.'s European business following a recent drop in profits at the Indian firm's European operations, Bloomberg News reported. "We are still concerned that the JV is a sensible solution given the circumstances," said Wilhelm Segerath, a senior official at the IG Metall labor union who sits on Thyssenkrupp's supervisory board.
* Tension between the Queensland coal industry and Aurizon Holdings Ltd. escalated, with the miners now resisting direct engagement with the rail network operator until it stops planned changes to its maintenance practice of the network, The Australian Financial Review reported.
* Thiess was awarded a A$160 million contract extension at Coronado Coal Group's Curragh coal mine in Queensland, Australia, Mining Weekly reported. As part of the contract, Thiess is required to mine about 45 million cubic meters of waste and coal at Curragh's North Pit until June 2019.
* Authorities rescued nearly two dozen people who were trapped after a blast at an iron ore mining project in China's Liaoning province, Reuters reported, citing local media reports. The explosion at the site killed 11 people, while two people were still missing.
* Australia's Federal Environment and Energy Minister Josh Frydenberg approved the development of Forward Mining Ltd.'s Rogetta iron ore mine in Tasmania, Mining Weekly reported. The project will comprise an open-cut operation producing at a rate of 1 million tonnes per year over a proposed seven-year mine life.
* A shuttle car operator died from head injuries incurred at an underground coal mine in West Virginia. The worker was riding on a mantrip that struck a steel object in the roadway at the Morgan Camp mine, operated by Carter Roag Coal Co. This death was the fifth U.S. coal mining fatality of 2018.
* Voestalpine AG proposed a dividend of €1.40 per share after booking a 43% increase in full-year operating profit. According to Reuters, the Austrian steelmaker's revenues in the period stood at €12.9 billion. In a separate report, Reuters said Wolfgang Eder will resign as Voestalpine's CEO in 2019 after 15 years in the post.
* Ezz Steel Co.'s net loss in the first quarter shrunk year over year to 67 million Egyptian pounds, compared to 521 million pounds in the year-ago quarter. Long steel production increased 10% year over year to 857,000 tonnes in the quarter.
* The U.S. government's tariffs on steel and aluminum are not expected to directly affect the Polish economy, Puls Biznesu reported, citing Minister of Entrepreneurship and Technology Jadwiga Emilewicz.
* Chinese customs authority nabbed 245 suspects involved in smuggling scrap and waste steel valued at about 4.8 billion Chinese yuan out of the country, Reuters reported.
SPECIALTY
* Mason Graphite Inc. cleared a critical permitting hurdle that sets the stage for possible construction of the Lac Gueret graphite project in Quebec, and may also remove a damper on the company's shares, one analyst said. The Quebec government gave authorization for the project through a decree that serves as the main permit needed before construction of the project can begin.
* Following days of discussions, only one major shareholder of mineral sands play Mineral Deposits Ltd. has fully embraced Eramet's takeover offer of A$1.46 per share, The Australian Financial Review's Street Talk reported. Eramet is likely to table an improved offer, with the current offer set to expire June 21.
* Angola plans to revise the policies for its diamond industry in a bid to attract more investment, boost production and obtain higher revenues, Reuters wrote, citing President Joao Lourenco. Lourenco added that he plans to double Angola's diamond output to 14 million carats in the next four years and also wants to increase the flow of the country's diamonds to Antwerp for increased transparency.
* Western Australia's government said the state's eastern goldfields will be put at the forefront of the lithium processing industry with Neometals Ltd.'s signing of an option agreement with the city of Kalgoorlie-Boulder for a proposed 10,000 tonne-per-year lithium hydroxide plant.
* Botswana Diamonds PLC was awarded the 2.5-hectare Mooikloof kimberlite pipe concession in South Africa. Meanwhile, the technical economic evaluation report for the Thorny River project estimated a deposit of 1.2 million to 2 million tonnes, a grade of 46 to 74 carats per hundred tonnes, and values of US$120 to US$220 per carat.
* Western Uranium Corp. signed a deal with a Nevada-incorporated Battery Mineral Resources Ltd. subsidiary to form a joint venture for vanadium development at the Sage Mine project, composed of 94 unpatented claims in Utah and Colorado.
* SRG Graphite Inc. posted an initial estimate of resources hosted by its Gogota nickel-cobalt deposit, which forms part of its Lola property in Guinea. Gogota hosts inferred resources containing 573,040 tonnes of nickel, 59,560 tonnes of cobalt and 1.2 million kilograms of scandium within 44.9 million tonnes of ore grading 1.28% nickel, 0.13% cobalt and 29.4 g/t of scandium.
* An updated estimate of probable reserves hosted by Tawana Resources NL's and Alliance Mineral Assets Ltd.'s 50/50 Bald Hill lithium-tantalum joint venture in Western Australia increased contained lithium by 105% as compared to a July 2017 estimate, representing a nine-year mine life.
INDUSTRY NEWS
* Canada's Bank of Nova Scotia is reducing lending by its ScotiaMocatta metals unit as it moves toward radical restructuring, which is likely to halve the size of its metals business, Reuters reported, citing sources. Industry sources placed the value of ScotiaMocatta's leases, credit lines and consignment lending of precious metal at about US$8 billion.
* Brazil President Michel Temer next week plans to issue a decree to overhaul the rules for mining permits, bypassing Congress after it failed to approve similar changes in 2017, Reuters reported, citing sources. The decree aims to cut red tape and attract international investment into the country's mining sector.
* South Africa nixed plans to force mining firms to contribute 1% of their annual turnover to a new community development agency, fearing that the funds could be abused, Bloomberg News reported, citing Mining Minister Gwede Mantashe.
* Data from the Democratic Republic of the Congo's finance ministry showed that the country's revenues from the mining sector tripled year on year to US$397.9 million in the first quarter, Reuters reported.
* The London Metal Exchange is planning to launch around 15 new contracts in January 2019, including cash-settled cobalt and hot-rolled coil steel contracts, Reuters reported, citing Robin Martin, head of market development.
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