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Anglo appoints Mkhwanazi to be Kumba chief; Los Bronces wage deal rejected; Grupo México's Q2 earnings drop


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Anglo appoints Mkhwanazi to be Kumba chief; Los Bronces wage deal rejected; Grupo México's Q2 earnings drop


KumbaIron CEO appointed as H1'16profit rises to 2.97B rand

Anglo AmericanPlc has appointedThemba Mkhwanazi CEO of KumbaIron Ore Ltd., following Norman Mbazima's decision to step down.July Ndlovu will replace Mkhwanazi as CEO of Anglo American's Coal business inSouth Africa. Kumba Iron Ore's net profit attributable to shareholders increasedto 2.97 billion South African rand in the first half, compared to 2.51 billionrand a year ago, despite a drop in revenue to 17.57 billion rand, from 19.95billion rand.

LosBronces workers reject Anglo's wage increase proposal

Union workers at Anglo American Plc's flagship copper mine in Chilerejected the formal proposal made by the company as part of the collectivebargaining negotiations. Anglo had offered an end-of-conflict bonus of 8million Chilean pesos in four years, and a rise of 85,000 pesos in wages, dailyEl Mercurio reported.

Grupo MéxicoSAB de CV's second-quarter net profit year over year to US$350.3million due to a decline in metal prices and a 19% depreciation of the Mexicanpeso. Copper production in the three months ended June 30 rose 22.7% to 266,071tons, after starting new projects at the Buenavista mine in Mexico.


* About 200 workers of the Pampa Camarones copper mine in Chile's Arica yParinacota region accused the company of owing three months in wages andseverance pay. The company is undergoing a reorganization process under localbankruptcy laws since May, news radio Bio Bio Chile reported.

* HorizonteMinerals Plc was awardedthree new concessions, totaling 3,142 hectares, adjacent to its recentlyacquired Glencore Araguaia project, part of its Araguaia nickel project in Brazil. The companyfiled applications for three additional licenses totaling 5,998 hectares.

* TNGLtd. is revisiting its previously planned spinoff of its basemetals projects in Australia's Northern Territory, and will soon convene ashareholder meeting to re-approve the demerger.

* Grupo México subsidiary Southern Copper Corp.'s second-quarter net income year over year toUS$221.9 million despite an increase in copper production. The company's coppermine output in the quarter increased by 26.1% to 225,842 tons, on the back of78% increase in production at the Buenavista mine in Mexico.

* DundeePrecious Metals Inc. said a regional power outage has the refractory lining ofthe Ausmelt furnace at the company's Tsumeb copper smelter in Namibia. Repairs are expectedto take about three weeks, which is expected to reduce 2016 concentratethroughput by approximately 20,000 tonnes.

* Alba MineralResources Plc said its base metal and gold prospecting license inCounty Limerick, Ireland, has been renewedfor a further two years.

* Canaccord Genuity analyst Dalton Baretto upgradedTeck Resources hold from sell and while upgrading First Quantum Minerals Ltd. to buy from hold, tellingclients that the long-term demand fundamentals on the Canadian base metalssector remain positive, the Financial Post reported.

* Moody's said Vedanta Ltd.'s revised merger terms with have noimmediate impact on VedantaResources Plc's B2 corporate family rating, Caa1 senior unsecurednotes rating and negative outlook. However, the successful execution of themerger, to the extent that it leads to de-leveraging, will be credit positivefor Vedanta Resources.  

* MMGLtd. will invest A$30 million in a new at its zinc mine in Tasmania,Australia, in a bid to extend the 80-year-old mine's life, Rick Watsford, thecompany's general manager for Australian operations said.

* Regina Lopez, the secretary of the Philippines' Departmentof Environment and Natural Resources, said the suspension of operations at 's unit on Manicaniwas voluntary and not ordered by the government.

* Recently established German firm Metalprodex GmbH plans tostart an online metals-trading platform in September for base metals sales andpurchases for instant physical delivery, Reuters reported, citing Metalprodex Managing Director JankoLinhart.


* is expected toannounce a dividend of 5 Australian cents in August, the company's first sinceFebruary 2013, as its gearing ratio fell to 24%, The Australian Financial Review reported.The company previously said it will only declare a dividend at a gearing ratioof less than 25%.

* AngloAmerican Platinum Ltd. CEO Chris Griffith said the company expectsto progress the sale of its Union platinum mine in South Africa by the endof the year, by which time the sale of three other operations to should beconcluded, Bloomberg News wrote. The company plans to cut 1,000 jobs at theUnion mine.

* NorthernStar Resources Ltd.'s full-year 2016 net profit year over year to A$151.4million on the back of strong gold sales, which totaled 561,153 ounces at anall-in sustaining cost of A$1,041 per ounce. The company, meanwhile, booked611,288 ounces of gold production for the financial year.

* McEwenMining Inc. produced 39,555 gold equivalent ounces in the secondquarter and is on track to produce 144,000 gold equivalent ounces in 2016.

* AlicantoMinerals Ltd. is acquiring from Sheik R Minerals Inc. the Ianna gold project, which is located less than25 kilometers from the company's flagship Arakaka gold project in northwest Guyana.

* Hecla MiningCo. withdrew its takeover bid for after thesecurities commissions of British Columbia and Ontario deemed that Hecla'sunsolicited bid was an insider bid, meaning it should obtain and disseminate anindependent formalvaluation. The commissions also denied Hecla's request to preventDolly Varden from finalizing a previously announced private placement.


* ChinaShenhua Energy Co. Ltd. produced 139.7 million tonnes of coal in the first half,compared to 139.4 million tonnes posted a year ago. Coal sales rose 4.8% yearover year to 186.3 million tonnes, from 177.8 million tonnes.

* Wuhan Iron& Steel (Group) Corp. posted to a profit of 703 million Chinese yuan in the firsthalf of this year. In comparison, listed unit bookeda loss of 7.5 billion yuan for full year 2015, The Beijing News reported.The steelmaker has laid off 3,100 workers in the first half, and intends to cutanother 6,000 to 7,000 jobs by next year. The move is believed to pave the wayfor its merger with Baoshan Iron& Steel Co. Ltd., which already has announced capacityelimination of 9.2 million tonnes.

* Despite record salt segment operating earnings, 's net earnings in the second quarter to US$6.3 million from US$13.2million posted a year ago, as a result of continued mild winter weather andagricultural market weakness. Revenue in the second quarter totaled US$169.5 million,down 8% from the same quarter of 2015.

* AluminiumBahrain BSC's second-quarter net income fell by 45% to 16.3 million Bahraini dinars from29.8 million dinars in the same period of 2015, while first-half net incomedropped to 20.5 million dinars from 67 million dinars a year ago.  Total sales revenues in the first half alsofell by 21% year on year to 322.2 million dinars from 405.9 million dinars.

* HarvestMinerals Ltd. completedan independent JORC compliant resource estimate for the Maximus target at theArapuafertilizer project in Brazil, of 883,000 tonnes at 4.21% K2O and 3.53% P2O5, ata 3.5% K2O cut-off.

* According to the Press Trust of India, the Indiangovernment said it generated about 22.37 billion Indian rupees in revenue by the end of May from the allocation of 74 coalmines.

* China has phased out more than 13 million tonnes of steel capacity inthe first half of this year, completing 30% of the annual target of 45 milliontonnes this year, the 21st CenturyBusiness Herald wrote, citing a senior official of Ministry of Industry andInformation Technology. The nation plans to eliminate 140 million tonnes ofsteel capacity within five years.

* China's environment ministry said the government hasordered special teams to start inspecting steel mills' compliance with the country's newpollution regulations, Reuters reported.


* The Environment Secretary of Mendoza province in Argentinasaid production at the Sierra Pintada uranium project would not resume becauseit infringes on legislation which bans the use of cyanide in exploration,prospecting, development and industrialization of metals in open-pit operationsin the province, daily Diario Once reported.

* Chilean state minerals company has signedat least four confidentiality contracts with potential partners to developlithium deposits, said Executive Vice President Jaime Pérez de Arce, daily Pulso reported.


* The Argentinean government of President Mauricio Macriplans to unlock more than 40 medium- and large-scale mining projects before theend of his four-year term. The projects for gold, silver, copper, potassium andlithium that are either delayed or suspended amount to US$20 billion, accordingto mining ministry figures. These include Glencore Plc's El Pachon copper mine in San Juan province andVale SA's potashproject in Mendoza province, daily LaNación reported.

* The Russian metals sector defied a sinking Russian economyby paying out 72% ofnet earnings as dividends in 2015, more than twice the average fornon-financial companies, as a weaker ruble made steelmakers' and miners'products more competitive, and more cash was available due to CapEx cuts andcompleted capital projects. The Analytical Credit Ratings Agency in Moscow saidthe average ratio for non-financial companies was 31% in 2015, with higherpayouts in the mining and steelmaking sector indicative of higher free cashflow levels.   

* Philippine President Rodrigo Duterte said DENR SecretaryRegina Lopez can proceed with her planned crackdown on mining operations thatviolate environmental safety, ABS-CBN news reported.

* The Philippines' newly elected house speaker, PantaleonAlvarez, wants new mining firms to get legislative licenses before beingallowed to operate in the country. According to Reuters, Alvarez also said hewill revive talks regarding the proposal to require miners toprocess ores locally before they are shipped overseas to help create local jobs.

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