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Barrick Gold's Q3'17 gold output down at 1.24 Moz vs. 1.38 Moz a year earlier

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


Barrick Gold's Q3'17 gold output down at 1.24 Moz vs. 1.38 Moz a year earlier

TOP NEWS

Barrick Gold reports year-over-year drop in Q3 gold output

Barrick Gold Corp. reported that gold output fell to 1.24 million ounces in the third quarter from 1.38 million ounces in the same period in 2016, while copper production rose to 115 million pounds from 100 million pounds. Gold sales volume dropped to 1.23 million ounces from 1.39 million ounces a year ago, but copper sales increased to 107 million pounds from 102 million pounds.

Latest US sanctions could harm investment in Russian metals and mining sector

Fresh U.S. sanctions announced in August could damage foreign investment in the Russian metals and mining sector, Christopher Weafer, senior partner at Macro-Advisory Ltd., told S&P Global Market Intelligence on the sidelines of the MINEX Russia conference in Moscow. Weafer said the latest move by the U.S. government has "raised a red flag" for industry players and there is the potential for escalation.

Harmony Gold expects up to 14% QOQ rise in underground fiscal Q1'18 output

Harmony Gold Mining Co. Ltd. expects production from its underground South African operations to increase by 12% to 14% quarter on quarter in the three-month period that ended Sept. 30, bolstered by higher volumes and grade. Gold production is estimated to be 6% to 8% higher in the first fiscal quarter from year-ago figures.

BASE METALS

* Yunnan Tin Co. Ltd. expects its net profit attributable to shareholders for the third quarter to surge to between 170 million Chinese yuan and 200 million yuan from the 50.3 million yuan recorded a year ago. The company attributed the surge in net profit to reduced costs and a rebound in prices of base metals.

* MMG Ltd. CEO Jerry Jiao said MMG is now the Chinese government's "preferred vehicle for foreign direct investment into international resource investment in 'China short' commodities" after being selected for a trial, Reuters reported. Jiao also said the company continues to look at acquisitions beyond its primary commodities, copper and zinc.

* The Democratic Republic of the Congo's government lifted the order banning Sinohydro Corp. and China Railway Group Ltd.'s Sicomines joint venture from exporting raw copper and cobalt, Reuters reported, citing the country's mines ministry and a company official.

* Codelco is considering reducing the planned investment for its Chuquicamata copper underground project from US$4.2 billion to US$3 billion, El Mercurio reported, citing company sources. The Chilean state miner is expected to submit changes to the project's design for environmental review in order to optimize construction, the sources said.

* Metalicity Ltd. exercised an option to acquire Ridgecape Holdings Pty. Ltd., which holds an option to acquire the Napier Range and Emanuel Range zinc projects in Western Australia from Northwest Nonferrous International Investment Co. Ltd. unit Meridian Minerals Ltd. by making staged cash payments totaling about A$2 million.

* Data from the International Lead and Zinc Study Group showed that global zinc deficit rose to 287,000 tonnes in the first eight months of the year from 221,000 tonnes in the same period of 2016, Mining Weekly reported.

* Chile's copper exports reached a three-year high of US$3.18 billion in September, Reuters reported, citing the country's Central Bank.

* Orsu Metals Corp. completed the sale of a 94.75% interest in GRK MLD LLP, which owns the Karchiga copper-gold-zinc project in Kazakhstan, for US$6 million to CMSS Global Supply and Trading FZC.

PRECIOUS METALS

* Hecla Mining Co.'s third-quarter production totaled 3.3 million ounces of silver and 63,046 ounces of gold, the highest level since 2003. The silver output for the period, however, represents a 23% year-over-year decline, while gold output increased by 21%.

* Alamos Gold Inc. reported record third-quarter gold production of 107,000 ounces, putting the company on track to achieve its full-year output guidance of 400,000 to 430,000 ounces of gold.

* Pan African Resources Plc CEO Cobus Loots told Reuters that the construction of the company's Elikhulu tailings retreatment project in South Africa has been halted for the past two days due to protests and assaults on workers by a local group demanding jobs and business opportunities.

* Kirkland Lake Gold Ltd. is on track to achieve an improved 2017 production guidance of 570,000 to 590,000 ounces of gold following a 4% year-over-year increase in consolidated gold production for the third quarter to 139,100 ounces. The company previously expected full-year production to be between 530,000 and 570,000 ounces of gold.

* Regis Resources Ltd. achieved record gold production for the second consecutive quarter at its Duketon gold project in Western Australia, booking 91,921 ounces in the September quarter.

* Acacia Mining plc produced 191,203 ounces of gold and sold 132,787 ounces of gold during the third quarter. The Buzwagi project exceeded expectations, with the mine producing 69,097 ounces of gold due to strong grades. Production at the North Mara and Bulyanhulu projects, however, were impacted by work permit issues and a move to reduced operations, respectively. Gold concentrate sales were below production due to the ongoing export ban of gold and copper concentrate in Tanzania.

* Southern Hemisphere Mining Ltd. applied for exploration licenses E52/3579 and E52/3580, covering 782 square kilometers in Western Australia, to expand the company's tenement holding in the area to 1,504 square kilometers.

* A preliminary economic assessment for Eros Resources Corp.'s Bell Mountain gold project in Nevada pegged a posttax net present value of US$9.3 million at a discount rate of 5%, a 24.7% internal rate of return and a 2.7-year payback period. The project is expected to produce 60,056 ounces of gold and 408,498 ounces of silver over a four-year mine life, with cash costs of US$759 per ounce.

* Atlantic Gold Corp. officially opened the Moose River Consolidated gold mine in Nova Scotia and achieved first gold pour at the site.

* Durango Resources Inc. agreed to acquire the 520-hectare Baby-Baby property in Ontario from two arm's length vendors in exchange for C$60,000, 3 million shares and a 1% gross revenue royalty.

* The suspension of Mandalay Resources Corp.'s Cerro Bayo silver mine in southern Chile, caused by the death of two workers in June, led to the dismissal of 235 workers, company officials told news radio Bio Bio. The mine will remain under care and maintenance for the rest of the year.

* Polymetal International Plc plans to build an autoclave in Russia's Khabarovsk region with a processing capacity of 300,000 tonnes of gold concentrate, Kommersant reported.

BULK COMMODITIES

* Vale SA, Rio Tinto, BHP Billiton Group and Fortescue Metals Group Ltd., the "Big 4" iron ore miners, have recently executed large-scale expansion investments in response to increases in iron ore demand from China. Vale is increasing its nameplate capacity to between 400 million tonnes per year and 450 Mt/y by 2020, with Rio Tinto targeting 360 Mt/y, BHP targeting 290 Mt/y, and Fortescue targeting 160 Mt/y to 170 Mt/y. The latter three capacities are this year's targets, although the expansions for Rio Tinto and BHP were delayed in 2017. The findings are from a report by the Metals and Mining Research group at S&P Global Market Intelligence.

* The local government of Tangshan, China, a major steelmaking city in the country, ordered steel enterprises to cut output by 50% from Oct. 12 to meet air quality targets for the year, Reuters wrote, citing a government statement.

* Whitehaven Coal Ltd.'s salable coal production in the first quarter of fiscal 2018 increased 14% year over year to 5.9 million tonnes as the Maules Creek mine had another record quarter. Run-of-mine coal production improved 5% to 5.7 million tonnes in the three months.

* As China steps into what would presumably be the second five-year term of President Xi Jinping, analysts told S&P Global Market Intelligence that they are expecting authorities to strengthen regulations around environmental protection as well as continue or even accelerate capacity reduction programs for the coal and steel industries that were launched in 2016.

* Bowen Coking Coal Ltd.'s shares continued to go up following its debut on the ASX, spurred by a tightening in seaborne coking coal supply. "In the afternoon session, we saw significant buyer interest as the news on Bowen Coking Coal started to spread, which also transpired into a 10% gain in early [Oct. 12] trade," CEO and Managing Director Gerhard Redelinghuys told S&P Global Market Intelligence.

* Ironveld Plc is continuing negotiations with multiple parties to secure funding for necessary upgrades and refurbishment to allow for the processing of magnetite ore at the Middelburg smelter in South Africa. The company said two parties have completed due diligence proceedings and are in the process of concluding internal approval processes.

* As part of China's campaign against air pollution, Shanxi Coking Coal Group Co. Ltd. will slash 900,000 tonnes of coke and 360,000 tonnes of chemicals from production for the six months between Oct. 1, 2017, and March 31, 2018, Reuters reported. The move is anticipated to decrease the miner's total sales over the fourth quarter of 2017 and the first quarter of 2018 by 2.8 billion Chinese yuan.

* Adani Enterprises Ltd.'s Abbot Point coal terminal is set to launch a prospectus for a US$500 million bond issue to help refinance the port's debt, The Australian Financial Review's Street Talk reported. Local banks have been reluctant to get involved in the bond issue due to the backlash against the company's giant Carmichael coal mine, and sources said several U.S. banks, including JPMorgan, Citigroup and Bank of America Merrill Lynch, have also passed on the mandate.

SPECIALTY

* On the back of falling uranium prices, France's Areva NewCo announced job cuts and output reduction at its Somair and Cominak uranium mines in Niger, Reuters reported. About 190 jobs will be eliminated at Somair, and a freeze will be placed on contracts for 500 contractors, while severe restrictions would be placed at Cominak, a union head said. Areva NewCo split off from state-owned integrated nuclear group Areva SA earlier this year.

* RBC Capital Markets downgraded Stornoway Diamond Corp. to underperform from sector perform, citing Stornoway's breakage problem. The issue has affected the company's realized prices and RBC said it could also impact Stornoway's balance sheet.

* RBC also downgraded Firestone Diamonds Plc to sector perform from outperform on the back of uncertainty around the company's realized price and new mine plan.

* Peak Resources Ltd. adjusted the bankable feasibility study for the Ngualla rare earths project in Tanzania based on a lower price deck for neodymium and praseodymium, lanthanum oxide and cerium oxide, as seen in the market. The company estimated a posttax net present value, discounted at 8%, of US$612 million, an internal rate of return of 22%, and preproduction CapEx of US$365 million for the Ngualla and Tees Valley refineries combined.

* Russian Technologies State Corp. and Russia's State Atomic Energy Corp., ROSATOM, can restart the production of beryllium in Russia by extracting concentrate from the ore and dumps of the Malyshevsky emerald deposit, Kommersant reported. The production of beryllium has been curtailed since the late 1980s, but ROSATOM is trying to revive it.

* Ventnor Resources Ltd. secured a new silica sand project at Arrowsmith, which is 270 kilometers north of Perth, Western Australia.

INDUSTRY NEWS

* Macquarie Group is scaling back loans against physical metals inventories as the bank continues to shift its focus toward the energy sector, Reuters reported, citing three sources familiar with the matter.

* According to Tanzanian Royalty Exploration Corp., Hassan Abbasi, a spokesman for the Tanzanian government, refuted speculation that new laws in the country are a move toward nationalizing mines, saying President John Magufuli demands fair and equal treatment.

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.