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Trump unfazed by prospects of global trade war

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Essential Metals Mining Insights November 2021

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[Infographic]: 2021 World Exploration Trends


Trump unfazed by prospects of global trade war

TOP NEWS

Trump: 'Trade war hurts them, not us'

U.S. President Donald Trump reiterated his commitment to the planned tariffs on steel and aluminum imports as leaders of several other countries expressed concern over the move, Bloomberg News reported. Trump also downplayed the possibility of U.S. tariffs starting a global trade war, saying "when we're behind every single country, trade wars aren't so bad" and "the trade war hurts them, not us." EU Trade Commissioner Cecilia Malmstrom said, "A trade war has no winners," urging the U.S. to reconsider imposing the tariffs. The tariffs are seen impacting EU steel and aluminum exports that were valued at €5.3 billion and €1.1 billion, respectively, in 2017 and the EU plans to impose punitive retaliatory tariffs on U.S. goods. IMF head Christine Lagarde said trade wars generally lead to "losers on both sides," Reuters wrote.

Australian regulator claims Rio Tinto knew of overstated Mozambique resource

The Australian Securities and Investments Commission claimed Rio Tinto knew within months of completing the deal that its coal resource estimate for its Mozambique asset was "materially" overstated, The Australian Financial Review reported. The watchdog, which filed a legal proceeding earlier this month, alleged that the coal resources and reserves Rio Tinto released in March 2012 were 67% lower than what the company had estimated in the due diligence assessments for the acquisition.

Kobe Steel, Toyota facing lawsuit from US consumers over substandard products

Kobe Steel Ltd. and Toyota Motor Corp. are facing a lawsuit from their U.S. consumers for allegedly engaging in fraud by concealing the use of substandard metal components in vehicles and violating consumer protection laws, Reuters reported. The complaint also alleged that the companies violated federal and state consumer protection laws by claiming their products were in compliance with U.S. quality standards.

DIVERSIFIED

* Anglo American Plc CEO Mark Cutifani said the company's outlook on South Africa's future "got a lot more positive" after a recent meeting with the country's new mining minister, Gwede Mantashe, Reuters reported.

* Bloomberg LP Executive Chairman Peter Grauer retired as nonexecutive director of Glencore Plc, effective immediately.

BASE METALS

* Quest Minerals has re-emerged on the ASX as High Grade Metals Ltd., switching its project focus from vanadium in Australia to mainly cobalt and gold in Austria, leveraging off what analysts see as an increasing push within the EU to own battery minerals resources.

* Glencore is negotiating a one-year deal with Chinese company GEM for the sale of about a quarter of its cobalt production, but the price has been a "sticking point" as the company and other major producers now have the ability to exert more influence during negotiations, Reuters reported, citing sources familiar with the matter.

* BHP Billiton Group has not abandoned its plans to sell its Cerro Colorado copper mine in Chile and is talking with potential buyers without a definite deadline, La Tercera reported, citing a Bloomberg News interview with the company President of Operations for Minerals Americas Daniel Malchuk.

* Horizonte Minerals Plc completed the acquisition of the Vermelho nickel-cobalt project in Brazil from Vale SA. Meanwhile, a feasibility study for the Araguaia nickel project, which is targeting production of 14,500 tonnes of nickel per annum, is due for completion by mid-2018.

* Havilah Resources Ltd. estimated an inferred resource for cobalt in its Kalkaroo copper-cobalt-gold deposit in South Australia of 193.3 million tonnes at 120 parts per million cobalt containing about 23,200 tonnes at a 20-ppm lower cutoff grade.

* Aeris Resources Ltd. subsidiary Tritton Resources Pty. Ltd. entered into a copper hedging contract for 12,000 tonnes of copper, to be delivered in monthly installments of 1,000 tonnes up to February 2019 at an average price of A$8,670 per tonne.

PRECIOUS METALS

* Shandong Gold Mining Co. Ltd.'s net profit attributable to shareholders dropped 12% to 1.14 billion Chinese yuan in 2017, while operating revenues edged up 2% to 51.04 billion yuan. The decline was due to lower production volumes at some mines as the company conducted investigations and a facility upgrade program to improve mine safety. Total gold output went up 20% to 35.88 tonnes of gold in 2017. 2018 guidance is set at 39.86 tonnes.

* The Philippines' House of Representatives recently approved a bill that bans all forms of mining in the province of Nueva Vizcaya, home to Metals Exploration Plc's Runruno gold-molybdenum mine, The Philippine Daily Inquirer reported. The bill does not outline how existing mines will be treated, but it is set to be passed on to the Senate for approval.

* Mining Forum SA threatened to block Lonmin Plc's 5.1 billion South African rand takeover by Sibanye Gold Ltd. The lobby group is alleging the platinum producer failed to fulfill its mandatory license obligations, Fin24 reported.

* Semafo Inc.'s fourth-quarter 2017 net income attributable to shareholders swung to a profit of US$1.6 million, from a net loss of US$4.9 million a year ago, with revenue from gold sales decreasing 9% to US$63.0 million. However, for full year 2017, net income attributable to shareholders dropped to US$20.0 million, from US$34.2 million a year ago, while revenue from gold sales declined 14% to US$259.0 million.

* Silver Range Resources Ltd. optioned the expanded South Kitikmeot gold project in Nunavut, Canada, to Amaroq Gold Corp., allowing the latter to purchase the project in exchange for cash and share payments spread over five years. South Kitikmeot covers the Esker Lake, Gold Bugs, Qannituq, Uist, Ujaraq, Hiqiniq and Bling prospects.

* Alloy Resources Ltd. signed a binding heads of agreement with Jindalee Resources Ltd. for an option to acquire exploration license 53/1962, dubbed the Millrose tenement, adjacent to its Horse Well gold project in Western Australia.

* Adam Travis, who along with his family owns an approximately 5.2% interest in Colorado Resources Ltd., is seeking the reorganization of the company's board. Travis nominated Patrick Soares, Bryan Wilson, Christian Kargl-Simard, Michael Cathro and himself for election as directors.

* St. Barbara Ltd. entered into gold hedging contracts for production of 25,000 ounces from its Simberi project in Papua New Guinea, to be delivered in monthly installments from July 2018 to December 2019 at a forward price of A$1,750 per ounce.

* Russia's gold output in 2018 is expected to increase by 3% year over year to 328 tonnes, Reuters reported, citing the Gold Industrialists' Union.

BULK COMMODITIES

* Gary Cohn is resigning as Trump's top economic adviser amid the administration's planned tariffs on U.S. steel and aluminum imports.

* Australian central bank Governor Philip Lowe criticized Trump's policy, saying that succeeding retaliations by other countries affected by the proposed tariffs on steel and aluminum imports could cause a "very big shock for the global economy," Bloomberg News reported.

* U.S. Senate Majority Leader Mitch McConnell slammed Trump's proposed tariffs on steel and aluminum imports, saying he has "genuine concerns" that it may spark a trade war, CNN Politics reported.

* South African steel and aluminum producers remain uncertain about the impact of trade tariffs by the U.S. on their businesses, but the companies said they will seek to mitigate the risk via export diversification, Mining Weekly reported.

* Norsk Hydro ASA is still unable to set a date to resume full production at its Alunorte alumina refinery in Brazil, and spokesman Oeyvind Breivik said, "[W]e still don't know exactly what we need to do to be allowed to start producing at a 100% again at Alunorte," Reuters reported.

* Mitsubishi Corp. completed the sale of its 28.9% stake in the Warkworth coal mine in New South Wales, Australia, to Yancoal Australia Ltd.

* Rio Tinto will cut up to 200 jobs at the Brockman 4 and Marandoo iron ore mines in Western Australia's Pilbara region by early 2019 as the company's automated truck fleets come online, The West Australian reported. A company spokesperson did not deny the claim.

* Sirius Minerals Plc is seeking US$2 billion in debt guaranteed by the U.K. government to advance its Woodsmith potash project in the country, saying the funds are important to its financial plan, the Financial Times reported.

* Ghana plans to launch a series of infrastructure projects in the country, including constructing alumina refineries and railways, which will be paid off using refined bauxite in barter trade, Bloomberg News reported, citing President Nana Akufo-Addo.

* Moody's upgraded India's JSW Steel Ltd.'s corporate family rating and senior unsecured debt rating to Ba2 and Ba3, respectively, assigning a stable outlook to the ratings. The rating agency attributed the move to the company's improving credit metrics owing to higher steel sales amid rising demand in India.

* Australian Prime Minister Malcolm Turnbull said Labor leader Bill Shorten's stance against Adani Enterprises Ltd.'s Carmichael coal mine may cause a "chilling effect" on the country's jobs and investment climate, the Australian Associated Press reported.

* India's Supreme Court directed Vedanta Ltd. to approach the additional city civil and session judge and special judge for CBI cases at Bangalore for the release of the group's 34,544 tonnes of iron ore, which were seized on claims that Vedanta engaged in illegal mining. This sets aside a previous ruling of the Karnataka high court that allowed the release of iron ore to the company, Mint reported.

* The Thai Supreme Court ordered coal miner Banpu PCL to pay compensation of 1.5 billion Thai baht to Siva Nganthavee and his Thai-Lao Lignite Co. for using information to develop the Hongsa coal-fired power plant in Laos, the Bangkok Post reported.

SPECIALTY

* Russia's PJSC Alrosa increased diamond sales in February to US$541.9 million from US$504.5 million in January, driven by higher sales in China on the eve of Chinese New Year and the diamond-cutting sector replenishing stocks.

* Technology Metals Australia Ltd.'s mineral resource estimate for the Northern Block deposit within the Gabanintha project in Western Australia increased 57% to 98.4 million tonnes at 0.8% vanadium oxide and 9.7% titanium dioxide including 21.6 million tonnes at 0.9% vanadium oxide and 11.2% titanium dioxide in the indicated category.

* Gem Diamonds Ltd. recovered a 152-carat, top white color, Type IIa diamond from its majority-owned Letseng mine in Lesotho. This is the sixth diamond of more than 100 carats recovered from the mine this year.

* Montero Mining & Exploration Ltd. agreed to acquire a 95% interest in the Uis lithium-tin tailings project in Namibia from Namibia Base Minerals CC and Namibia Silica CC for about US$1.4 million in staged payments.

* Frontier Diamonds Ltd. discovered the first diamonds of up to 1.45 carats at the Bellsbank kimberlite pipe project in South Africa.

* AVZ Minerals Ltd. signed a memorandum of understanding with Guangzhou Tinci Materials Technology Co. Ltd. to explore potential investment and off-take opportunities involving the former's Manono lithium project in the Democratic Republic of the Congo.

INDUSTRY NEWS

* The Zimbabwean government is open to reversing certain mining policies under former President Robert Mugabe, including indigenization laws for all commodities except for diamonds and platinum, Bloomberg News reported.

The Daily Dose is updated as of 7 a.m. ET and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.