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Indonesia to double nickel ore royalties; Barrick selling Massawa for US$430M


Essential IR Insights Newsletter - April 2023


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According to Market Intelligence, April 2023


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Indonesia to double nickel ore royalties; Barrick selling Massawa for US$430M


Indonesia to double nickel ore royalties to 10%

Major nickel ore exporter Indonesia is set to double royalties on sales of the ore to 10%, while also adjusting the rates for other minerals, Reuters reported. “The (royalty) tariffs on nickel needed readjustment to give more balanced rates between ore miners and those who produce refined products,” said Indonesia’s director of minerals at the mining ministry Yunus Saefulhak. The new regulations, which will take effect starting Dec. 25, also includes a 5% royalty on nickel pig iron sales.

Barrick selling Massawa gold project to Teranga for up to US$430M

As it continues to divest noncore assets, Barrick Gold Corp. and its Senegalese partner are selling their combined 90% stake in the Massawa gold project in Senegal to Teranga Gold Corp. for up to US$430 million. Teranga will pay about US$300 million in cash, US$80 million in shares and up to US$50 million in gold price-linked payments due three years after closing.

Anglo American expects up to 25% growth in annual copper equivalent output by 2023

Global mining company Anglo American PLC expects 2019 copper equivalent output to be 1% to 2% higher on a yearly basis, it said in a presentation to investors. The company expects annual copper equivalent production to grow 20% to 25% by 2023 as it brings a number of projects online during the next three years. The company raised its medium-term production guidance for copper, platinum and palladium, while cutting output targets for diamonds, iron ore and metallurgical coal relative to 2018 figures.


* Nickel-focused Mincor Resources NL received key approvals from the Western Australian government to restart the Cassini nickel project, part of its South Kambalda property. The Department of Mines, Industry Regulation and Safety granted the clearing permit and the mining proposal, including the mine closure plan.

* Horseshoe Metals Ltd. signed definitive agreements to acquire the Mount Gunson copper and Glenloth gold projects in South Australia.


* Resolute Mining Ltd. completed the repairs to the sulfide roaster within the allotted time and budget at the Syama gold mine in Mali and has started reheating the roaster ahead of resuming normal operations.

* Perseus Mining Ltd. expects to pour first gold from its Yaoure project in Cote d'Ivoire in December 2020, a month ahead of the currently contracted completion date. The project's construction will cost a total of US$265 million. The company awarded the mining services contract for the mine to EPSA Internacional SA.

* Goldstar Minerals Inc. secured an option to acquire the early stage Anctil and Nemenjiche gold properties in Quebec from Les Ressources Tectonic Inc., with closing expected Feb. 15, 2020. The company can acquire the properties by paying an aggregate C$570,000, spending C$2.2 million on exploration over three years, and granting a 2% net smelter royalty, which can be bought back for C$5 million.

* Patagonia Gold Corp. terminated its option deal to earn up to 80% interest in the San Jose gold project in Uruguay. The deal was inked with Trilogy Mining Corp., American Mining Holdings Ltd., Ecovent SA and Minerales Cala SA in 2016. Patagonia will instead focus on the development of the Cap Oeste gold project and the advancement of the Calcatreu gold project, both in Argentina.

* GBM Resources Ltd. said that there is an opportunity to extend the mine life of the White Dam gold project, which is part of the company's acquisition of Stibium Mining (Proprietary) Ltd. unit Millstream Resources Pty. Ltd.

* Goldrea Resources Corp. is in negotiations to acquire the ground, known as Dixie Lake Baby, adjacent to the TNT Discovery on BTU Metals Corp.'s Dixie Halo gold project in Ontario.

* New Age Exploration Ltd. said New Zealand Petroleum & Minerals granted it a prospecting permit covering an area of 265.38 square kilometers in the country's Otago region.

* RTG Mining Inc. entered into a binding agreement to acquire 80% of the Mt Kare gold project in Papua New Guinea. RTG will acquire the project when the applications are converted into a new exploration license and will pay about US$18.8 million in cash and shares as part of the transaction.

* Erris Resources PLC secured an option to acquire 80% of Greenore Gold PLC's gold- and base metals-prospective Loch Tay project in central Scotland. Erris must define a minimum inferred resource of 250,000 ounces of gold within four years to own the 80% stake.


* White House National Economic Council director Larry Kudlow said that the reimposing of steel tariffs on Brazil and Argentina has been discussed but there is no decision yet, despite the president's announcement a week ago that it will be "effective immediately," Bloomberg reported. According to a source who refused to be identified, Brazil plans to wait until it has official notice from the U.S. before it makes any decision.

* Germany's K+S AG is looking into selling stakes in its Bethune potash mine in Saskatchewan, as an ongoing push for cost-cutting would not generate enough savings to meet the company’s debt reduction target, Reuters reported, citing a spokesman. The stake sale may be done through an initial public offering, the spokesman added. K+S ruled an outright sale of Bethune, which the company values at nearly €5 billion.

* Australian Opposition Leader Anthony Albanese said he would back Adani Enterprises Ltd.'s Carmichael coal mine and any other projects in Queensland that would create jobs locally, The Australian reported. "The fact is that Adani has received its environmental approvals," Albanese said.

* The Western Australia State Solicitors Office asked the High Court to reject Fortescue Metals Group Ltd.'s application for special leave to appeal an unfavorable ruling on a native title case over the company's Solomon Hub iron ore operation, the Australian Financial Review reported. The office said Fortescue's application should be dismissed due to major flaws in the case.

* Thyssenkrupp AG is set to install the first above-ground jaw gyratory crusher in Australia at Hancock Prospecting Pty. Ltd.'s Roy Hill iron mine in Western Australia, International Mining reported.

* Due to not receiving offers for the Janina mining plant within the set deadline, TAURON Wytwarzanie SA decided to end the search for a potential investor, Puls Biznesu reported.

* Emmerson PLC could receive incentives from the Moroccan government that could contribute up to 10% of the total expenditure of its Khemisset potash project. The company said that it could receive up to US$40 million from the government in the form of direct subsidies.

* PT Bukit Asam Tbk still has plans to acquire coal mining land in 2020 amid a downward trend in coal prices, Kontan reported. The plan is still pending a cost and benefit analysis.

* Mastermyne Group Ltd. secured an extension to June 30, 2020, for its outbye services contract to South32 Ltd.'s Illawarra metallurgical coal operations in New South Wales, Australia. The extension is forecast to generate revenue of about A$17 million over seven months.


* Russian diamond monopoly PJSC Alrosa's registered a fourth consecutive month of growth in sales of rough diamonds in November, which reached US$282.1 million, after a nadir of US$164.6 million in July. The majority state-owned miner's sales of rough stones rose 11% from US$253.9 million in October and 5.9% from US$266.6 million in November 2018. The rise in revenue on both a monthly and yearly basis could be a sign of diamond market recovery, according to BCS Global Markets analysts.

* South Africa's Department for Energy and Mining issued an approval to Renascor Resources Ltd. to extract a 60-tonne bulk sample from the company's Siviour graphite project. Ore extracted from the bulk sample will be used in a pilot plant production trial in China.

* The Indonesian government is in talks with Chinese battery companies GEM Co. Ltd. and Contemporary Amperex Technology Co. Ltd. to build lithium battery plants in the Southeast Asian nation, Reuters reported, citing Luhut Pandjaitan, Indonesia's coordinating minister for maritime and investment affairs.

* Lynas Corp. Ltd. is seeking financial and infrastructure support from the Australian government for its proposed A$500 million rare earths processing plant in Kalgoorlie, Western Australia, The West Australian reported.


* House Democrats said that they had reached a deal with the Trump administration to advance a revised version of the United States-Mexico-Canada Agreement after months of contentious closed doors meetings and public rhetoric to get the deal passed. Speaking at a news conference, House Speaker Nancy Pelosi, D-Calif., said a revised USMCA would be put up for a vote in the House, though a date has not yet been specified.

* Exploration budgets for Canada have fallen by 9%, or US$134 million, year over year in 2019 to US$1.31 billion, dropping the country to second place behind Australia from first place in 2018, according to the Metals and Mining Research team of S&P Global Market Intelligence. The decrease exceeds the global average decrease of 3% in 2019, and in dollar terms is second only to Mexico, whose allocations have fallen by US$155 million.

* South African miners have been forced to halt operations due to power outages caused by flash floods, Reuters reported. Harmony Gold Mining Co. Ltd. called off underground shifts, while Impala Platinum Holdings Ltd. stopped production at the Rustenberg and Marula platinum mines. Petra Diamonds Ltd., meanwhile, resumed mining operations, but with a 20% load curtailment, in line with Eskom's requirements, following the downgrade of load shedding status to Stage 4 from Stage 6.

* Madagascar plans to raise its royalties on nickel, cobalt, precious metals and gemstones to 4% from the current 2%, Reuters reported, citing a draft law which was confirmed by the country’s mines minister Fidiniavo Ravokatra.

* Downer Mining's sale is not expected to be closed until next year, The Australian reported, noting that engagement with bidders is still ongoing. The report mentioned that Chilean conglomerate Sigdo Koppers SA has ditched its possible bid after earlier considering an acquisition of the business.

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