TOP NEWS
European Union targets US products after tariffs
The European Union is considering imposing tariffs of 25% on roughly US$3.5 billion worth of U.S. exports to the 28-member bloc should President Donald Trump push forward on his proposed tariffs on steel and aluminum imports, Reuters reported. Citing sources, Reuters said the tariffs would be used to rebalance the trade relationship.
Australian regulator takes Rio Tinto, former executives to court over Mozambique deal
The Australian Securities and Investments Commission started legal proceedings against Rio Tinto, its former CEO Thomas Albanese and former CFO Guy Elliott, saying the parties made misleading or deceptive statements regarding the US$4 billion Riversdale coal mine acquisition, later named Rio Tinto Coal Mozambique.
Canada to unveil mining plan, eyeing domination in sustainability
Canada aims to become the "undisputed leader in sustainable mineral resource development" and will outline part of a strategy to do so in a report the government plans to release March 6, Kim Rudd, the parliamentary secretary to the minister of natural resources, said at the opening ceremonies of the Prospectors & Developers Association of Canada conference in Toronto. The report is called the Canadian Minerals and Metals Plan.
DIVERSIFIED
* Minsur SA's gold production in the fourth quarter of 2017 jumped 26% year over year to 24,583 ounces, driven by higher feed and higher ore treated at its Pucamarca gold mine in Peru. Tin output, meanwhile, fell 6% to 6,331 tonnes due to lower ore grade fed to the concentration plant at its San Rafael tin mine, also in Peru, and the outsourcing of surplus concentrate treated at its Pitinga joint venture in Brazil.
BASE METALS
* A long-awaited government report compiled by the Geological Survey of Victoria and Geoscience Australia into the under-explored Cambrian Stavely Arc in western Victoria vindicatedvindicated Stavely Minerals Ltd.'s early entry into the volcanic belt and should boost investment in the region. The two agencies will start a deep seismic reflection and gravity survey of eastern Victoria this month, which will be the first time that region's geology has been surveyed at great depth.
* The main union of Antofagasta Plc's Los Pelambres copper mine will vote on the latest collective bargaining proposal from the company, which may lead to a strike should the union not accept the offer, Reuters reported.
* Unionized workers at Nexa Resources SA's Cajamarquilla zinc smelter in Peru plan to launch an indefinite strike, beginning March 5, seeking a larger share of profits and improved working conditions, Metal Bulletin reported.
PRECIOUS METALS
* AngloGold Ashanti Ltd. completed the sale of the Moab Khotsong gold mine in South Africa to Harmony Gold Mining Co. Ltd. and the Kopanang gold mine to Heaven-Sent SA Sunshine Investment Co. Ltd. The company used 3.57 billion rand in proceeds from the disposals to reduce debt.
* Newcrest Mining Ltd.'s success in turning itself from a "quasi-basket case" in 2013 and resurrecting what some have called the "black widow" of gold projects, Lihir, positions the company to undergo what the Australian miner is internally calling "Transformation 2," Citi Vice President of Metals and Mining Research Trent Allen said.
* Construction at Pan African Resources Plc's Elikhulu gold project in South Africa is ahead of schedule, with first gold expected to be produced in August. Ramp-up to full production of about 55,000 ounces per annum is expected to take place within two months.
* Red Eagle Mining Corp. agreed to acquire the Red Eagle Exploration Ltd. shares that it did not own already via a three-cornered amalgamation, to create an exploration, development and operating company with four gold and silver projects in Colombia.
* Australia's gold production may reach a record this year as new projects come online, Reuters reported, citing mining consultancy Surbiton Associates. In 2017, gold output rose by 3 tons on a yearly basis to 301 tons, or about 9.7 million ounces, the report said, adding that another 20 tons of production could be added this year.
BULK COMMODITIES
* Norsk Hydro ASA's Alunorte alumina refinery in Brazil's Para state declared force majeure after the federal and state governments ordered it to cut output by 50%.
* Whitehaven Coal Ltd. is said to be working with Grant Samuel to secure funding as it eyes Rio Tinto's remaining coal mines in Australia, The Australian reported. Final bids for the Queensland-based assets are due March 12. Apollo Global Management LLC, Whitehaven, EMR Capital partnering with China Investment Corp. and Yancoal Australia Ltd., potentially partnering with Glencore Plc, are expected to compete for the mines.
* Fresh off an announcement of planned tariffs on imported steel and aluminum, President Donald Trump threatened to do the same for European cars if the European Union follows through with a promise of retaliatory tariffs.
* The European Commission condemned new U.S. trade tariffs on steel and aluminum imports as "blatant intervention" to protect the U.S. domestic industry, and Germany's steel federation, Wirtschaftsvereinigung Stahl, urged the European Union to act swiftly and systematically to defy the U.S. import barrier. China said the U.S. ignored World Trade Organization rules in its decision and severely impaired the interests of Chinese exporters, while the press secretary to the Russian president, Dmitry Peskov, said the Kremlin would monitor the situation. Brazil's Industry Ministry insisted its steel does not represent a threat to North American national security.
* British Prime Minister Theresa May told U.S. President Donald Trump she had "deep concern" about the potential U.S. tariffs on aluminum and steel, noting that multilateral action was the only way to resolve the global overcapacity issue, Reuters wrote, citing May's office.
* U.S. President Donald Trump stoked tensions with trading partners and outraged much of the U.S. energy industry March 1 when he announced plans to impose tariffs on steel and aluminum imports that are stiffer than his own commerce secretary recommended. The new tariffs will likely hurt the renewable energy and oil and gas sectors, industry participants and observers said. Meanwhile, U.S. manufacturers and retailers are bracing for retaliatory duties and a potential increase in production costs on a wide range of consumer products.
* Separately, the tariffs are expected to be a bigger threat to Chinese aluminum producers than for steel mills, according to analysts. Liu Xinwei, an analyst with commodities consultancy SCI International, does not expect to see a strong reaction from China's steel industry to the planned tariffs by the U.S., given the low volumes of steel exports to America.
* Steelmakers in South Korea expect a negative impact on their businesses, saying an increase in global steel prices will lower the competitiveness of U.S. companies that use steel, The Korea Herald reported. Meanwhile, POSCO intends to ask for tax exemptions from state governments. South Korea is the third-largest steel exporter to the U.S. after Canada and Brazil. Additionally, the Federation of Korean Industries wrote to key U.S. officials urging the Trump government to exclude the country from steel tariffs, The Korea Times reported.
* The trade tariffs may cause an oversupply of aluminum and steel in Southeast Asia, with China, Russia, Ukraine and Turkey competing to sell their steel to countries including the Philippines and Vietnam, Reuters reported. Aluminum exporters from China may compete for business with South Korean and Thai producers.
* The U.S. government slapped a 51% tariff on Perth-based silicon metal exporter Simcoa, The Australian Financial Review reported. Australian Trade Minister Steve Ciobo, who said the government may take action against the Trump administration's anti-trade measures, noted that the U.S. findings against Simcoa were "unfair" and "ridiculous" and that he will be exploring options with respect to the company's situation.
* Exxaro Resources Ltd. expects to book a 30% to 40% increase in core headline earnings per share for the year that ended Dec. 31, 2017, Mining Weekly reported. The core HEPS excludes one-off items, including costs relating to the implementation of its replacement black economic empowerment deal, and gains on the partial sale of its stake in Tronox Ltd.
* 55 workers at Mosaic Co.'s K2 potash facility in Saskatchewan who were trapped underground due to a small fire made it safely to surface, Mining.com reported. According to a company spokesperson, damage was minor and the cause of the fire is being probed. Mosaic restarted operations at the underground mine.
* Warrior Met Coal Inc. secured the consent of the holders of US$350.0 million of its 8% senior secured notes due 2024 for an amendment allowing it to make dividend or distribution payments of up to US$350 million to its equity holders that are declared by May 15.
* ArcelorMittal decided to partner with Nippon Steel & Sumitomo Metal Corp. for its previously submitted takeover offer for Essar Steel India Ltd.
* Despite the uncertainty surrounding the North American Free Trade Agreement, ArcelorMittal remains committed to investing US$1 billion in a new production line in Mexico, Reuters reported, citing a company spokesperson. The investment will see construction of a new hot strip mill, which will produce 2.5 million tonnes of flat rolled steel per annum.
* U.S. Steel Corp. extended the maturity of its US$1.5 billion revolving credit facility to February 2023.
* Indonesia produced about 28.1 million tons of coal in the January-February period, Bisnis Indonesia reported, citing the Energy Ministry.
SPECIALTY
* The Czech Republic's trade and industry ministry backed out of a memorandum of understanding signed with European Metals Holdings Ltd. in October 2017 over the Cinovec lithium project in the country. The termination does not affect its exploration rights over Cinovec or its tenure over the project's exploration permits.
* A preliminary feasibility study for Frontier Lithium Inc.'s PAK lithium project in Ontario pegged a posttax net present value of C$301 million, discounted at 8%, and a 38.3% internal rate of return.
INDUSTRY NEWS
* As China's top legislators and political advisers gather for the National People's Congress and the Chinese People's Political Consultative Conference in the week of March 5, analysts expect that reducing capacity for industries such as coal and steel, which has been a focus in previous annual government work reports presented by Chinese premier Li Keqiang during previous years' sessions, will take a backseat this year.
* Democratic Republic of the Congo President Joseph Kabila is set to meet representatives of mining companies this week to discuss a mining code revision that would increase taxes and royalties, Reuters reported, citing Mines Minister Martin Kabwelulu.
* Chile's mining industry is expected to attract about US$60 billion of investment by 2038, Mining.com reported, citing Minister of Mining Aurora Williams.
The Daily Dose is updated as of 7 a.m. Hong Kong time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.
