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In This List

BHP Billiton named in Panama Papers; Newmont to receive US$2B bid for 80% unit stake; Polymetal to acquire Glencore's Komarovskoye gold deposit

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020


BHP Billiton named in Panama Papers; Newmont to receive US$2B bid for 80% unit stake; Polymetal to acquire Glencore's Komarovskoye gold deposit

TOPNEWS

BHPBilliton named in Panama Papers

Documentsreleased as part of the data leak known as the Panama Papers show that mininggiant BHP BillitonGroup allowed two of its British Virgin Island-based subsidiariesto receive large sums of money, which set off a high risk warning at MossackFonseca, The Guardian reported.According to the report, a BHP spokeswoman said that the company "does notengage in aggressive tax planning." The diversified miner has been linkedto at least 19 British Virgin Island-registered subsidiaries with the aid ofthe Panamanian law firm.

Newmontto receive US$2 billion offer for 80% subsidiary stake

Peoplewith knowledge of the matter said an Indonesian consortium, led by veteraninvestment banker Agus Projosasmito, is preparing to offer about US$2 billion for an 80% stake inNewmont MiningCorp.'s PT NewmontNusa Tenggara unit over the next week — at the earliest. Accordingto Bloomberg News, the group is set to borrow about US$1 billion from banksincluding BNP Paribas SA, Malayan Banking Bhd. and Societe Generale SA, as wellas state-owned lenders.

Polymetalto acquire Glencore's Komarovskoye for US$100M cash, US$80M royalty

enteredinto a binding agreement with Glencore Plc unit Kazzinc Ltd. for the acquisition of Orion Minerals LLP,which holds the Komarovskoye gold deposit in the Republic of Kazakhstan.The company will pay US$100 million in cash and Kazzinc will receive a royalty,capped at US$80 million, linked to future production from Komarovskoye.

DIVERSIFIED

*Documents released as part of the data leak known as the Panama Papers showthat mining giant BHP BillitonGroup allowed two of its British Virgin Island-based subsidiariesto receive large sums of money, which set off a high risk warning at MossackFonseca, The Guardian reported.According to the report, a BHP Billiton spokeswoman said that the company"does not engage in aggressive tax planning." The diversified minerhas been linked to at least 19 British Virgin Island-registered subsidiarieswith the aid of the Panamanian law firm.

BASEMETALS

*People with knowledge of the matter said an Indonesian consortium, led byveteran investment banker Agus Projosasmito, is preparing to offer about US$2 billion for an 80% stake inNewmont MiningCorp.'s PT NewmontNusa Tenggara unit over the next week — at the earliest. Accordingto Bloomberg News, the group is set to borrow about US$1 billion from banksincluding BNP Paribas SA, Malayan Banking Bhd. and Societe Generale SA, as wellas state-owned lenders.

*For more than a year, the Federation of Copper Workers, or FTC, has beenpressing and lobbying with the Lower Chamber of Congress to gather thenecessary political support for state-owned Codelco's attempt to acquire control of the copper mine,controlled by Anglo AmericanPlc, FTC president and Codelco board member Raimundo Espinoza tolddaily La Tercera.

*Chilean President Michelle Bachelet, on April 1, ratified Espinoza as therepresentative of union workers in Codelco's board until 2020, daily Diario Financiero reported.

*Japan's Sumitomo Metal Mining Co.Ltd. expects to produce 445,200 tonnes of electrolytic copper in thecurrent financial year, 6.1% more than that produced in the fiscal year endedMarch 31, when output was affected by a 25-day maintenance at one of thecompany's facilities.

*Meanwhile, Sumitomo Metal Mining agreed to transfer all of its shares in Vale Nouvelle CalédonieSAS, amounting to 7.6%, which it holds through SUMIC Nickel Netherlands BV toVale SA unitVale Canada Ltd.

PRECIOUSMETALS

*Polymetal InternationalPlc enteredinto a binding agreement with Glencore Plc unit Kazzinc Ltd. for the acquisition of Orion Minerals LLP,which holds the Komarovskoye gold deposit in the Republic of Kazakhstan.The company will pay US$100 million in cash and Kazzinc will receive a royalty,capped at US$80 million, linked to future production from Komarovskoye.

* Kommersant reported that ,controlled by Suleyman Kerimov's son, is preparing to hold a secondary offeringon the Moscow stock exchange. At the same time, the company is in talks withAsian investors for the sale of part of its treasury package. At the end oflast year, the head structure of Polyus Gold Group held delisting from theLondon Stock Exchange, and the market now speculates on why the company onceagain is to expand its shareholder base.

* TorianResources Ltd. acquired the Bardoc gold project in Kalgoorlie, WesternAustralia, which is its eighth acquisition in the past 12 months. The projectcovers about 38.6 square kilometers and is owned by Torian and its majorshareholder and joint venture partner Cascade Resources Ltd.

*Latin American MineralsInc. signed a nonbinding term sheet with for a gold streamingpurchase agreementfor its PasoYobai gold project in Paraguay. SilverStream will provide LatinAmerican Minerals with US$1 million in three tranches.

*Dynasty Metals & MiningInc. said an unexpected walkout by workers at its gold mine in Ecuadorresulted in the temporarysuspension of all activities at the site. The company is indiscussions with worker's representatives, in cooperation of labor authorities,to resolve the situation.

BULKCOMMODITIES

*Anglo American Plcwill sellits 70% interest in the Foxleigh metallurgical coal mine in Queensland,Australia, to a consortium led by Taurus Fund Management. The transaction willbe effected via a sale of shares in the subsidiary companies holding AngloAmerican's interest in Foxleigh.

*BHP Billiton increased its staff to up to 30 in Brazil, including two topexecutives, as the mining giant looks to resume operations at its Samarco iron ore joint venture with Vale inthe country, Bloomberg News reported. Offices have also been opened in BeloHorizonte, which is about 70 miles from BHP's Samarco interest.

*Vale drafted a plan to sell its 26.87% stake in a steel slab plant, the mostexpensive foreign investment in Brazil that cost nearly US$10 billion to build,for US$1 plus the assumption of some debt to venture partner , Reuters reported,citing a source "close to the deal." , meanwhile, is lookingto take a stake in ThyssenKrupp's European steel unit and the parties are inadvanced talks over the deal.

*Fitch Ratings downgraded Tata Steel Ltd. and its Tata Steel UK Holdings Ltd. unit's long-term foreigncurrency issuer default rating to BB from BB+/Stable and placed it on ratingwatch evolving. The downgrade reflects the decline in Tata Steel'sprofitability and jump in leverage during the financial year 2016, followingchallenging market conditions for its operations in India and overseas,specifically in the U.K.

*Separately,The Wall Street Journal reported that the U.K. government pledged toassist Tata Steel secure a suitor for its embattled steel plants in the countryby providing help to any perspective buyer about the company'sincreasing pension deficit and hefty energy burden.

*ArcelorMittal shut down a hot strip mill at its northwestern Indianacomplex as part of a restructuring of its U.S. operations, the Associated Pressreported. ArcelorMittal spokeswoman Mary Beth Holdford said the company doesnot plan any layoffs under its restructuring program.

*Fitch Ratings downgraded SteelAuthority of India Ltd.'s long-term foreign currency issuer ratingto BB from BBB-, with a negative outlook. The downgrade follows thedeterioration in the company's financial profile after a prolonged weakening ininternational steel prices as well as its debt-funded CapEx program, whichmagnified the impact of weak prices.

*Adani EnterprisesLtd. secured key approvals for three separate mining leases from the Queensland state government for itsCarmichael coalproject in the Australian state, bringing the company closer to starting workat the site, Mint reported.

*Mining services group RCR Ltd. decided to exitthe coal market, citing low profitability in the Australian coal industryduring the last five years, AustralianMining reported. The company also "intends to discontinue twelveunprofitable businesses highly exposed to this type of mining services" aspart of its business strategy review.

*China leviedanti-dumping duties of as much as 46.3% on electric steel from the EU, Japanand South Korea. Tariffs will be applicable on the imports from overseassuppliers including JFE SteelCorp., Nippon Steel& Sumitomo Metal Corp. and POSCO. However, the Chinese Ministry of Commerce did notname any European suppliers affected by the levy.

*India's coal secretary Anil Swarup said Coal India Ltd. produced a record 536 million tonnes ofcoal in the year ended March 31, representing an year over year from thepreceding year but short of the 550 million-tonne annual output target.

*China's Hebei Iron & SteelGroup Co. Ltd. emerged as the only bidder for the Serbianstate-owned Zelezara Smederevo steel plant that Serbia offered for sale. Thegovernment announced the sale of the plant in an attempt to divest loss-makingbusinesses, in line with its €1.2 billion loan deal signed with theInternational Monetary Fund, Reuters reported.

*CONSOL Energy Inc.closed the $420 million sale of one of the most productive Central Appalachiacoal mines to Coronado IV LLC, a unit of Coronado Coal LLC. The sale of the mine in southwestVirginia is intended to help CONSOL pay down debt.

* Theboard of the Bratsk Aluminum Plant, part of United Co. RUSAL Plc, approved an open-ended program ofbonds worth up to 70 billion Russian rubles, Vedomosti reported.

*British Prime Minister David Cameron hopes for cooperation between the U.K. andChina in battling overcapacity in the steel industry, Reutersreported, citing Cameron's spokesperson.

SPECIALTY

*Gemfields Plc earnedrevenues of about US$33.1 million from the auction of predominantly higherquality rough emerald extracted by 75% subsidiary and higher qualityamethyst from 50% subsidiary Kariba Minerals Ltd. in Zambia.

*Bushveld MineralsLtd. signed a memorandum of understanding between its 84% ownedenergy subsidiary, Bushveld Energy Ltd., and UniEnergy Technologies, forcooperation in the developmentof market opportunities for vanadium-redox flow batteries.

*Alligator Energy Ltd.has decided to terminate its farm-in and joint venture agreement withCameco Australia Pty.Ltd. over the Mamadawerreuranium project in Northern Territory, Australia. The company will now focus onits Beatriceand Tin CampCreek uranium projects, it said.

* Vedomosti reportedthat PJSC ALROSA canreduce diamond production this year by 4% to 37 million carats. The company hassoftened its plan to reduce production due to increased demand for diamonds inthe first quarter.

*De Beers SAuncovered the firstdiamond-bearing ore as part of its US$2.2 billion expansion plan for theJwaneng diamondproject in Botswana. According to operation's General Manager Albert Milton,the Anglo American unit plans to access the kimberlite through an area calledCut 8, which is expected to become the mine's main output source by 2018. Ittook the company seven years to reach gem-bearing ore at the body, which isestimated to host 110 million carats.

*Ukraine and Australia signed offon a nuclear cooperation agreement April 1, in a deal that opens the path forUkraine to import Australian uranium concentrate and reduce its currentreliance on Russian-supplied fuel for its 15 operational reactors.

* Abankruptcy court in the U.S. has confirmed the fourth joint amended plan of reorganizationfiled by MolycorpInc., taking the bankrupt rare earths producer a step closer beforeit will be able to emerge from Chapter 11 protection as a newly reorganizedentity, Mining Weekly wrote.

*MZI Resources Ltd.officially opened itsflagship Keysbrook mineral sands project in Western Australia.

INDUSTRYNEWS

* RBC Daily reportedthat the fate of Russian mines with high methane content and the risk ofemission will be discussed on April 4 at a meeting with Prime Minister DmitryMedvedev.

TheDaily Dose is updated as of 7 a.m. London time, and scans news sourcespublished in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish,Thai and Ukrainian. Some external links may require a subscription.