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Rio Tinto, China Baowu to explore lower emissions; Sibanye to ax over 5,000 jobs

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Rio Tinto, China Baowu to explore lower emissions; Sibanye to ax over 5,000 jobs

TOP NEWS

Rio Tinto to explore lower emissions in tie-up with top Chinese steelmaker

Mining heavyweight Rio Tinto has signed a memorandum of understanding with China's biggest steel producer, China Baowu Steel Group Corp. Ltd., and Tsinghua University to develop new ways to reduce carbon emissions produced as part of the steel value chain. The aim is to assist Rio Tinto tackle customer, or scope 3, emissions, as government and investor pressure grows on companies to cut back, including pressure from Beijing on companies over environmental violations.

Sibanye Gold to ax over 5,000 jobs at Marikana as part of restructuring

Sibanye Gold Ltd. expects to ax about 5,270 jobs as part of a restructuring aimed at ensuring the sustainability of the Marikana platinum group metals operations in South Africa. CEO Neal Froneman said the operation is "not a going concern as an independent entity." The company said it will initially place certain unprofitable shafts on care and maintenance, noting that the shafts have reached the end of their economic reserve lives. The planned restructuring follows a three-month review.

ArcelorMittal South Africa flags possible closure of some sites

ArcelorMittal South Africa Ltd. flagged the possible closure of some operations following a review, Reuters reported, citing a statement. The ArcelorMittal unit is undertaking a restructuring of its business amid rising costs, with the company planning to dismiss more than 2,000 workers.

DIVERSIFIED

* BHP Group approached Anglo American PLC CEO Mark Cutifani several times this year about going for the top job at the company, Bloomberg News reported, citing people familiar with the matter. Cutifani turned down the offers so far, the report said.

BASE METALS

* Members of the Cancahuani community in Peru's Cusco region launched a partial blockade to prevent trucks from transporting copper produced at MMG Ltd.'s Las Bambas copper mine, El Comercio reported.

* An updated estimate for Ascendant Resources Inc.'s Lagoa Salgada zinc project in Portugal outlined a 71% increase in measured and indicated resources of the property's north zone. A preliminary economic assessment is expected to be completed by year-end.

PRECIOUS METALS

* Focus Minerals Ltd. determined that China Hanking Holdings Ltd.'s offer to acquire the Coolgardie gold project in Western Australia is not a superior proposal against Horizon Minerals Ltd.'s upsized A$55 million bid.

* Okapi Resources Ltd. secured an option to earn an initial 50% stake in the Tendao gold project in the Democratic Republic of Congo.

* Majestic Gold Corp. is awaiting government approval for its application to increase production at the open pit of the Songjiagou gold project in China's Shandong province. The approval is anticipated to be granted in early fiscal 2020 and will result in a significant increase in production capacity.

* Wesdome Gold Mines Ltd. estimated a higher total mineral resource for its Kiena gold project in Quebec at 788,100 gold ounces within 2.8 million tonnes grading 8.67 g/t gold for the measured and indicated categories, than the 582,600 ounces within 3.1 million tonnes grading 5.81 g/t gold estimated in December 2018.

* Premier Gold Mines Ltd. sold a gold royalty package to Franco-Nevada Corp. for gross proceeds of US$6 million.

* EMX Royalty Corp. agreed to sell the Alankoy and Trab-23 gold-copper projects in Turkey to Kar Mineral Madencilik Insaat Turizm Sanayi ve Ticaret A.S. in exchange for gold bullion payments and a 2.5% net smelter royalty on each project.

* Golden Arrow Resources Corp. entered a definitive agreement to acquire the Flecha de Oro gold project in Argentina.

BULK COMMODITIES

* Fortescue Metals Group Ltd. successfully refinanced and repaid its US$1.4 billion syndicated term loan facility due 2022 through the repayment of US$800 million and the extension of the US$600 million balance to 2025.

* Thyssenkrupp AG's top two investors, the Alfried Krupp von Bohlen und Halbach foundation and Swedish fund Cevian Capital, fully support the appointment of Chairwoman Martina Merz as interim CEO to replace CEO Guido Kerkhoff, Reuters reported.

* China Hongqiao Group Ltd. agreed to issue senior unsecured notes worth US$200 million for refinancing debt and for general corporate purposes.

* As part of its planned thermal coal exit, BHP hired Macquarie Capital and JPMorgan to examine the company's options for the Mt Arthur coal mine in New South Wales, Australia, and its 33% stake in the Cerrejon coal mine in Colombia, The Australian reported.

* Prem Watsa's Fairfax Financial Holdings Ltd. lost more than C$160 million in one day after shares in his top Canadian investments tanked, including Stelco Holdings Inc., which recently scrapped a US$300 million debt offering, Bloomberg News reported.

* Alcoa Corp. is using virtual reality to train its workers for high-risk tasks at its alumina refineries in Western Australia, Australian Mining wrote.

* Due to challenging equity markets, Pure Alumina Ltd. will likely be unable to raise A$30 million to help fund the purchase of Polar Sapphire Ltd. before the expiry of the acquisition agreement Sept. 30. The company will review its future direction, should it fail to secure an extension to close the transaction.

* Mining operations at OM Holdings Ltd.'s Bootu Creek manganese mine in Australia's Northern Territory is targeted for a staged restart to in-pit mining operations by the end of October, as operations remain suspended following the death of a worker.

* India's prime minister, Narendra Modi, announced plans to more than double his country's renewable generation target but added that India will not change its plan to use existing coal reserves to help meet its development needs.

* Poland's ruling Law and Justice party plans to file a special legislation that would allow the government to build new coal mines without the consent of local authorities, Reuters reported, citing Energy Minister Krzysztof Tchorzewsk. The bill is expected to help the country advance PGE Polska Grupa Energetyczna SA's Zloczew lignite project, which would be the country's deepest open-pit mine ever, the report said.

* Southeast Asia's strong coal demand will likely continue over the next two decades before solar and wind power takes over in 2040, according to a new report from Wood Mackenzie.

* A federal bankruptcy court approved Cambrian Coal Corp.'s plan to sell off substantially all of its assets.

* Pacific American Holdings Ltd. received a further five-year approval from the Ministry of Energy, Mines and Petroleum Resources in British Columbia to conduct work at the Elko coking coal project.

* A contract worker at Tata Steel Ltd.'s Port Talbot site in South Wales died following an unspecified site incident, Tata Steel Europe Ltd. tweeted.

SPECIALTY

* The supervisory board of Russian diamond producer PJSC Alrosa approved the acquisition of state-owned diamond polisher Smolensk Kristall, with closing anticipated in the first half of October.

* Lithium Americas Corp. has trimmed down its budget for the first phase of the Thacker Pass project in Nevada to US$400 million from the previously forecast US$581 million, and its annual production target to 20,000 tonnes of lithium from the earlier guidance of 30,000 tonnes, Reuters reported. The company made the adjustments to the project, which is expected to open in 2023, amidst growing concern of a global supply glut for lithium.

* Hawkstone Mining Ltd. estimated a maiden mineral resource for the Big Sandy lithium project in Arizona of 60,300 tonnes contained lithium metal and 320,800 tonnes contained lithium carbonate equivalent within 32.5 million tonnes grading 1,850 parts per million above an 800 ppm lithium cutoff at the indicated and inferred categories.

* King Island Scheelite Ltd.'s updated resource estimate for the Bold Head deposit of its Dolphin tungsten project in Tasmania, Australia, added 18% to the operation's total resource estimate.

* IronRidge Resources Ltd. is targeting a maiden resource estimate for the Cape Coast lithium project in Ghana by the first quarter of 2020, which will incorporate results from an ongoing reverse circulation drilling program at the operation.

* China's exports of rare earth magnets to the U.S. in August climbed 6.2% year on year to about 452.5 tonnes, the highest since at least 2016, Reuters reported, citing customs data.

* Members of Chile's House of Representatives voted against a proposed bill that allowed the expropriation of private companies involved in lithium mining in the country, La Tercera reported. The proposal, which was submitted in 2006, was previously declared unconstitutional by the Lower House's constitutional committee in early September.

INDUSTRY NEWS

* Fossil fuel companies should stop apologizing for their carbon dioxide emissions and instead receive congratulations, several speakers told a gathering of state-level U.S. lawmakers in Louisville, Ky.

* Member countries of the EU agreed to delay the release of new standards that will define which financial products are considered as eco-friendly until the end of 2022, Reuters reported. The delay, if confirmed by EU lawmakers, may hamper the growth of the US$200 billion market for green bonds, the report said.

* Global warming due to human-caused emissions has prompted massive changes to the world's oceans and is melting key glaciers at an increasing pace that will only get worse if those emissions continue to climb, the United Nation's Intergovernmental Panel on Climate Change said.

* CIMIC Group Ltd. hired JPMorgan to help the company in exploring strategic options for some of its mining services operations under the Thiess Pty. Ltd. and Sedgman Ltd. brands, the Australian Financial Review reported.

* National Mining Association elected Rich Nolan president and CEO, succeeding Hal Quinn, who will retire from the industry group before the end of 2019.

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