TOP NEWS
Norilsk Nickel's H1'19 net profit jumps 81% on forex gains
A devalued Russian ruble helped push PJSC Norilsk Nickel Co.'s first half profit 81% higher to just under US$3.00 billion. The Arctic precious and base metal producer recorded a US$548 million foreign exchange gain, compared to a loss of US$453 million in 2018, as the latest round of U.S. sanctions against Moscow depressed the currency.
BHP CEO confident miner will thrive amid trade war and rising nationalism
BHP Group CEO Andrew Mackenzie believes that the miner will "survive and prosper" through the U.S.-China trade war, which will eventually affect its products, and amid what he sees as a rising tide of nationalism and governments interfering in global trade flows. Mackenzie said that while the mining giant continues to enjoy strong sales to China, there is "no doubt" that the U.S.-China relationship continues to put a dampener on the prospects for world economic growth, and "ultimately will impact the demand for our products."
Harmony Gold eyeing AngloGold's Mponeng mine
Harmony Gold Mining Co. Ltd. is considering acquiring new assets, including AngloGold Ashanti Ltd.'s Mponeng underground gold mine in South Africa, to boost growth and replace diminishing reserves, Bloomberg News wrote, citing CEO Peter Steenkamp. The company's net loss for fiscal 2019 improved to 2.61 billion South African rand, from a loss of 4.47 billion rand a year ago, as revenue jumped 32% to 26.91 billion rand. Headline earnings for the year ended June 30 jumped 40% from the previous year to 1.07 billion rand.
BASE METALS
* Glencore PLC tapped investment bank UBS as an adviser for the CSA copper mine in New South Wales, Australia, fueling speculation that the property will be up for sale again after a deal with Aeris Resources Ltd. fell through in April, The Australian reported.
* BHP is aiming to boost production at its Olympic Dam copper mine in South Australia to a sustainable 200,000 tonnes per annum this year and will consider a "modest or major" expansion once it stabilizes operations, though this is "probably some years from now," MiningNews.net reported, citing CEO Andrew Mackenzie.
* PolyMet Mining Corp. said the Minnesota State Supreme Court declined to hear an appeal by environmental groups seeking supplemental review of Poly Met Mining Inc.'s environmental review for its NorthMet copper project.
* The Zambian government denied that President Edgar Lungu will meet Vedanta Resources Ltd. in India over the issues surrounding Konkola Copper Mines PLC, Reuters reported.
* A maiden JORC-compliant estimate for Talga Resources Ltd.'s Kiskama copper-cobalt deposit in Sweden outlined 7.7 million tonnes of inferred resources grading 0.36% copper equivalent for 27,000 tonnes of copper equivalent.
* Western Areas Ltd. invited 19 parties to tender for new nickel off-take agreements as previous agreements with BHP unit BHP Nickel West Pty Ltd. and China's largest stainless-steel maker Tsingshan Holding Group Co. Ltd. are set to expire in early 2020, The Australian Financial Review reported. The company is favoring short-term deals as it expects nickel prices to continue climbing due to demand fueled by producers of batteries for electric vehicles.
* Power Metal Resources PLC completed its strategic and operational review and all key restructuring activities. The company plans to remain focused on large-scale metal discoveries, particularly on nickel, copper and cobalt. The company will continue exploration in Botswana, Cameroon, Tanzania and the Democratic Republic of Congo.
* Josemaria Resources Inc. spinoff NGEx Minerals Ltd. secured approval to list on the TSX Venture Exchange under the symbol NGEX.
PRECIOUS METALS
* Avesoro Resources Inc. shares surged over 25% in London morning trade Aug. 20 after it reported receiving a nonbinding expression of interest for a full takeover from 72.9% shareholder Avesoro Jersey Ltd. at a price of £1 per share. It also suspended its gold output guidance amid operational issues at its projects and widened an expected funding gap for the second half of this year by another US$10 million.
* The Metals and Mining Research team at S&P Global Market Intelligence estimated that six Canadian gold mines and projects could be divested from the mergers of Barrick Gold Corp. and Randgold Resources Ltd., Newmont Goldcorp Corp. and Goldcorp Inc., and Pan American Silver Corp. and Tahoe Resources Inc. Timmins and Red Lake are very likely to be sold, Porcupine and Coffee are likely to be sold, and Eleonore and Hemlo are unlikely to be sold in the short to medium term.
* IAMGOLD Corp. fired 325 contractors from the suspended Rosebel gold mine in Suriname after an illegal miner was killed by police in early August, Reuters reported, citing company spokeswoman Indi Gopinathan. The company is working to improve security at the site as it aims to restart the mine, the report said.
* Alliance Resources Ltd. asked shareholders to take no action on Gandel Metals Pty Ltd's takeover offer of 14 Australian cents per share.
* Monarch Gold Corp. closed its acquisition of the Fayolle gold project in Quebec from Typhoon Exploration Inc. and Hecla Mining Co. affiliate Hecla Quebec Inc.
* JPMorgan Chase & Co. precious metals trader Christian Trunz pleaded guilty to spoofing, or placing thousands of fake trade offers for gold, platinum and palladium futures contracts, Reuters reported.
BULK COMMODITIES
* BHP toppled Rio Tinto as the world's lowest-cost iron ore producer after the former delivered second-half costs of US$11.89 per tonne, The Australian wrote. Separately, BHP CEO Andrew Mackenzie declined to confirm if the company is actively running a process to exit thermal coal, adding that he is "not in a hurry" to off-load the division, The Australian Financial Review reported.
* Up to 20% of Chinese demand for low-grade ore is expected to shift toward high-grade ore and iron ore pellets in coming years as it moves steel mills to coastal regions with tougher environmental requirements, Reuters reported, citing industry sources and an analysis of official import and production statistics by the newswire.
* The Karnataka Government in India canceled the mining lease extension it had granted to National Mineral Development Corp. Ltd. for the Donimalai iron ore mine, Press Trust of India reported.
* The Australian government may cancel Cu-River Mining Australia Pty Limited's permit to access its Cairn Hill iron ore project in South Australia due to national security concerns as the property is located near a top-secret weapons testing site, The Sydney Morning Herald reported.
* Mount Gibson Iron Ltd.'s net profit for fiscal 2019 increased to A$133.4 million, from A$99.1 million last year, following the recognition of deferred tax assets worth A$62.9 million.
* Engineering and consultancy firm Aurecon Australasia Pty. Ltd. cut ties with Adani Enterprises Ltd. and its Carmichael coal project in Queensland, Australia, due to pressure from anti-coal activists, the Australian Financial Review reported.
* Wiggins Island Coal Export Terminal Pty Ltd. filed an appeal to a previous court ruling that declared New Hope Corp. Ltd. did not guarantee the debts of units Northern Energy Corp. Ltd. and Colton Coal Pty. Ltd. over the Colton coal project in Queensland.
* Fortescue Metals Group Ltd. agreed to sign the ParityPledge, a pact that aims to close the gender gap in companies by considering at least one qualified woman for executive-level positions, Australian Mining reported.
* Hindalco Industries Ltd. unit Novelis Inc. pledged US$2.5 million to establish an innovation and research hub at the Georgia Institute of Technology.
* The U.S. is set to impose duties on subsidized steel rack imports from China after the U.S. International Trade Commission determined that they hurt the U.S. industry, Reuters reported.
SPECIALTY
* Iluka Resources Ltd. booked an 8.8% yearly increase in first half profit to A$137.2 million from A$126.1 million due to higher prices and increased royalty revenue from the Area C iron ore operation in Western Australia.
* An updated preliminary economic assessment on Texas Mineral Resources Corp.'s Round Top rare earths project in Texas outlined a pretax net present value of US$1.56 billion, at a 10% discount rate, with a 70% internal rate of return and a 1.4-year payback period.
* Kenmare Resources PLC declared a maiden dividend of 2.66 U.S. cents per share as profit attributable to shareholders for the first half slid to US$21.9 million from US$26.4 million a year ago. Revenue in the six months declined to US$122.7 million from US$140.1 million.
* Hastings Technology Metals Ltd. obtained the environmental permit for the Yangibana rare earths project in Western Australia.
* Largo Resources Ltd. will not renew a 2008 off-take agreement with Glencore International AG on the Maracas Menchen vanadium mine in Brazil. The deal will expire April 30, 2020.
* Deep Yellow Ltd.'s exploration prospecting licenses comprising its Reptile uranium project in Namibia are set to be renewed for two years to Aug. 4, 2021.
* Marenica Energy Ltd. reached an agreement to acquire a 95% stake in exclusive prospecting license 6746 in Namibia if it is granted to the applicant, a local citizen.
* Altura Mining Ltd. expects to produce about 45,000 wet tonnes in the September quarter from its namesake lithium project in Western Australia, compared to 42,402 wet tonnes produced in the June quarter.
* King River Resources Ltd. highlighted the potential to further cut the projected capital cost for its Speewah Dome vanadium project in Western Australia by US$152 million to US$524 million by reducing the planned start-up mining rate through the installation of a more standard-sized acid plant, The West Australian reported.
* Nouveau Monde Graphite Inc. received a C$4.3 million grant from the Sustainable Development Technology Canada program to build a graphite purification processing facility in Quebec.
INDUSTRY NEWS
* The Canadian government will invest C$2.2 billion over the next 15 years for the cleanup of eight abandoned mines in the Yukon and Northwest Territories, Canadian Mining Journal reported.
* U.S. mine safety officials are not adequately evaluating whether monetary penalties are effective at reducing fatal or permanent accidents across the nation's mines, according to an audit from the U.S. Department of Labor's Office of Inspector General.
* Western Australian Mines and Petroleum Minister Bill Johnston announced new guidance for rehabilitating Western Australian mine sites, which outlines environmental criteria mine operators can use to demonstrate they have successfully and sustainably rehabilitated their site after mining.
* Mining services company Ausdrill Ltd. will adopt a new brand and identity, Perenti, and will list under the trading name of Perenti Global.
* Chile will include costs of fighting climate change in its annual budget starting in 2020, Reuters reported, citing Finance Minister Felipe Larraín.
* Japan has approved the sale of advanced technology resources to South Korea, tempering its prior decisions to impose strict export controls, ahead of scheduled talks to sooth trade tensions, Reuters reported, citing two sources close to the matter.
* Brazilian jewelry chain Vivara Participações filed for regulatory approval for an IPO, Reuters reported, citing a securities filing.
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