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Simandou may fall into Chinese control; Kyrgyz state gold miner opposes Centerra Gold, Thompson Creek tie-up; Fitch bumps up Alcoa outlook to stable

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Simandou may fall into Chinese control; Kyrgyz state gold miner opposes Centerra Gold, Thompson Creek tie-up; Fitch bumps up Alcoa outlook to stable

TOP NEWS

Simandoumay fall into Chinese hands after Rio Tinto's decision to shelve development

Morningstaranalysts speculated that RioTinto's shelving of its plans to develop the US$20 billionSimandou ironore project in Guinea could potentiallyresult in an "aggressive" investor allied with , which alreadyowns 41%, taking over the project, the Australian Associated Press reported.

major shareholder, , the company'splanned US$1.1 billion takeover of Thompson Creek Metals Co. Inc., arguing the move woulddilute its 33% holdings in Centerra.

FitchRatings upgradedAlcoa Inc. to StableOutlook and removed its BB+ credit rating from Rating Watch Evolving onexpectations the New York-based aluminum heavyweight will have the sameinstrument ratings whether it goes ahead with its planned split into twocompanies or not.

BASE METALS

*Codelco is lookingat possibly forming joint ventures with the private sector or even downsizingas it tries to cope with low copper prices, FinancialTimes reported.

*Experts criticizedthe limited capitalization granted by the Chilean state to Codelco in the pastseven years, arguing that it is eroding the state miner's fragile finances andhindering its development, El Mercurioreported. Between 2009 and 2015, Codelco contributed US$25.06 billion to theChilean treasury, but was only granted US$4.8 billion in capitalization.

*The Philippine government ordered the suspension of two nickel mines in Zambalesprovince operated by BenguetcorpNickel Mines Inc. and ZambalesDiversified Metals Corp. due to complaints of environmentaldegradation. The country also plans to impose a one-month ban on newexploration projects as authorities conduct their review of all existing mines,mining minister Regina Lopez said.

* SandfireResources NL achieved record annual copper production for the yearended June 30, at 68,202 tonnes of contained copper, above the company'sguidance range of 65,000 tonnes to 68,000 tonnes. Contained gold output, at37,612 ounces, was within guidance of 35,000 ounces to 40,000 ounces.

*France's Eramet isseeking newpartners for the WedaBay nickel project in Indonesia as its two Japanese partners left,Reuters reported.

*Trevali Mining Corp.achieved commercialproduction at its Caribou zinc mine in the Bathurst Mining Camp in NewBrunswick, Canada, effective July 1.

*Tiger Resources Ltd.is looking into theeconomic viability of producing cobalt at its Kipoi project in the Democratic Republic ofCongo.

PRECIOUS METALS

*Coeur Mining Inc.increased itssecond-quarter gold output by 14.7%, but witnessed a roughly 7% decline in itssilver output compared to the same quarter of 2015. Gold production was higherdue to an increase in grades at the Guadalupe mine in Mexico and higher grades and timing ofrecoveries at the Wharfmine in South Dakota. Meanwhile, silver output was largely impacted by thedecline of production from Coeur's silver stream on the Endeavor mine in NewSouth Wales, Australia.

*Pilot Gold Inc.signed an option agreement allowing Logan Resources Ltd. to in up to four ofthe former's nine Great Basin portfolio properties.

*Montego Resources Inc. is acquiring Northern Empire Resources Corp.'s gold property inNunavut Territory, Canada, for 19.9% of Montego's issued and outstandingshares.

*Echo Resources Ltd.secured anexploration license, EL53/1900, which is contiguous to its flagship gold deposit inWestern Australia. With the 128-square-kilometer license, the company'slandholding in the Yandal greenstone belt was expanded to over 850 squarekilometers.

*Southern Gold Ltd.acquired fromAsiatic Gold Ltd. several gold projects across southern Korea in exchange for6.29 million of its shares, A$116,000 cash and assumption of A$70,000 debt. Theacquisition is valued at about A$2 million.

*Great Atlantic ResourcesCorp. is acquiring the Golden Promise gold property from WilliamMercer by making cash payments totaling C$520,000, issuing C$500,000 in shares,and making work expenditures on the property of C$500,000.

*Almadex Minerals Ltd.disposed of a 29.0%interest in Gold Mountain MiningCorp. for gross proceeds of C$2.0 million. Following the sharesale, Almadex holds a 9.8% interest in Gold Mountain.

*GBM Resources Ltd.remodeled theresource estimate of the Koala gold mine in Queensland, resulting in a 135%increase to 1.4 million tonnes at 2.6 g/t of gold for 118,700 ounces of gold.

* RameliusResources Ltd. produced 110,839 ounces in its fiscal 2016, exceedingguidance of 110,000 ounces for the year ended June 30. Production in the Junequarter was also over the 28,000-ounce to 32,000-ounce guidance as output fromits Western Australian operations hit 32,752 ounces.

* NewmontMining Corp. will consider hikingits dividends amid the gold price rally and as its asset sales put it ahead ofschedule on its debt-reduction target, Bloomberg News reported.

* International Goldfields Ltd. the deal for acquisition of an85% interest in Uruguay-based WinterGarden Bioscience to lapse as keyconditions failed to be satisfied before the May 31 due date.

*According to Business Day, South Africa's Association of Mineworkers andConstruction Union is demandinga basic salary of 12,500 South African rand ahead of wage talks with platinumproducers after the pay deal between the union and mining companies , andImpala Platinum HoldingsLtd. expired at the end of June.

BULK COMMODITIES

* A draftbill to ban the construction of upstream tailings dams in Brazil could driveup costs at iron ore major Vale SA and threaten jobs, Bloomberg News reported,citing the company's general counsel Clovis Torres. The proposal, which alsoaims to tighten supervision at existing waste storage sites in Minas Geraisstate, cleared one commission and is on its way to the state assembly.

*Duro Felguera claims that Samsung, the lead contractor for the 's A$10billion RoyHill iron ore mine in Western Australia, owesit A$100 million for subcontractor work, TheAustralian reported.

*BlueScope Steel Ltd.is suingfor A$2.4 million the Australian Workers Union in Wollongong in New South Walesover an unsanctioned 24-hour strike at Spring Hill on May 26, ABC reported.

*China Hanking HoldingsLtd. subsidiary Aoniu Mining soldits full interest in Benxi Mining for 1 Chinese yuan in cash. China Hankingwaived the 43.3 million yuan debt owed by Benxi Mining.

*The coming two years will see China's state-run steel and coal firms cuttingcapacity by around 10%, and by 15% by 2020, to tackle excess supply, Reutersreported, citing the state asset regulator.

*Australia's Department of Industry, Innovation and Science cutits forecast for iron ore prices by nearly 2% to an average of US$44.20 a tonnein 2016 and by 20% to US$44 per tonne in 2017, Reuters wrote.

*Alpha Natural ResourcesInc. has reached a deal on its reorganization plan that will likely carry it out ofbankruptcy court protection. The plan includes deals with various federal andstate agencies as well as funds controlled by the United Mine Workers ofAmerica and will become effective as Alpha emerges from Chapter 11 bankruptcyin late July.

*After a two-year break, the Zaporizhzhya Production Aluminium Plant in Ukraineseeks to resumeoutput of aluminum rods in August, delo.ua reported.

SPECIALTY

*Investors participating in the special public offering of the Russiangovernment's 10.9% stake in diamond miner PJSC ALROSA have bid between 62.5 Russian rubles and 65 rubles per share,but the final bid could be higher than this once international bids arrive,Interfax reported, citing several sources close to the deal.

* PetraDiamonds Ltd. and Ekapa Mining (Pty) Ltd enteredinto a deal, effective July 1, combining their respective operations into anunincorporated joint venture named the Kimberley Ekapa Mining Joint Venture.Petra and its Black Economic Empowerment partners hold a 75.9% interest in thejoint venture, while Ekapa Mining holds the remaining 24.1%.

*Houston Lake MiningInc. changed its name to Frontier Lithium Inc., reflectingits evolution since the discovery drill-hole of the PAK lithium deposit inOntario in 2013 and the disposition of unrelated assets.

*92 Resources Corp.added, through staking, two contiguous claims totaling 57 hectares tothe Hidden Lake lithium property located near Yellowknife, NorthwestTerritories.

*Bass Metals Ltd.signed a formal sale agreement with StratMin Global Resources Plc for the of the large flake graphitemine in eastern Madagascar for A$15.3 million and is launching a rights issuefor up to A$7 million to be used for expanding the asset.

*Peregrine DiamondsLtd.'s preliminary economic assessment study for developing theCH-6 and CH-7 kimberlite pipes on the Chidliak diamond project in Nunavut it as a "high margin,ten-year, open-pit mining project with very attractive economics."

*Sayona Mining Ltd. isnegotiating itsoption-to-purchase agreement with Brasil Graphite SA over the latter'sItabelagraphite project in Brazil. The companies' deal has expired and Sayona is nowlooking to extend and restructure the option agreement.

INDUSTRY NEWS

*Following a police investigation that resulted in the seizing of A$50,000 ofillegally mined gold near Kalgoorlie, Western Australia's Department of Minesand Petroleum warnedprospectors to only work in areas for which they have a right.

The Daily Dose is updated asof 7 a.m. London time, and scans news sources published in Chinese, English,Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Someexternal links may require a subscription.