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Fortescue sees hydrogen pivot in steel mills; Zhaojin aims to double gold output

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Fortescue sees hydrogen pivot in steel mills; Zhaojin aims to double gold output

TOP NEWS

Fortescue sees hydrogen energy pivot as long-term play in Asian steel mills

Fortescue Metals Group Ltd. CEO Elizabeth Gaines said some leading Asian economies are more than a decade away from using hydrogen in their steelmaking processes to help achieve their aggressive climate goals, which would also help cut the miner's emission levels that are tied to end users of its products. Gaines said Fortescue's conversations with iron ore customers had revealed that while there is "no doubt" Asian steel mills are looking at using hydrogen in their processes, it is unlikely to be adopted until at least 2030.

Zhaojin aims to double gold output through overseas acquisitions

Zhaojin Mining Industry Co. Ltd. is looking at doubling its 650,000-ounce-per-year gold output by as early as 2024 through overseas acquisitions valued at less than US$500 million, Reuters reported, citing Leo Zhao, managing director of company unit Zhaojin International Mining Co.

Northern Star's FY'19 profit down on Pogo investment

Northern Star Resources Ltd.'s fiscal 2019 net profit declined to A$154.7 million, from A$194.1 million, due to its A$50 million investment in the Pogo gold project in Alaska, which it acquired in August 2018 from Sumitomo Corp. and Sumitomo Metal Mining Co. Ltd. for US$260 million. The company declared a final fully franked dividend of 7.5 Australian cents per share, a 50% increase from 5.0 cents per share last year, to take the full-year payout to 13.5 cents per share, in line with its policy of distributing 6% of revenue to shareholders.

BASE METALS

* First Cobalt Corp. and Glencore AG signed a definitive agreement for the planned restart of the First Cobalt refinery in Ontario.

* Superior Lake Resources Ltd. received nonbinding indicative proposals of between US$50 million and US$70 million to fund the development of its Superior Lake zinc project in Ontario.

* Rio Tinto subsidiary Rio Tinto Exploration Canada Inc. secured an option to acquire the Andalusite Peak copper-gold-silver property in British Columbia that was staked by Triumph Gold Corp. in January 2017.

* Chile announced a US$600 million in additional stimulus to boost its economy that has suffered from slumping copper prices, Reuters reported.

* German copper products maker Wieland-Werke AG plans to slash working hours at its plant in Villingen in southern Germany due to the slowing global economy, Reuters reported.

* Blackstone Resources AG entered a strategic alliance for a nickel joint venture in Indonesia. The deal with the unnamed joint venture partner will initially involve exporting ore, concentrates and refined products of nickel, copper and other technology metals before progressing to non-ore products later this year.

* Rafaella Resources Ltd. started work to deliver a feasibility study for the Santa Comba tin-tungsten project in Spain, which it acquired in May.

* Balmoral Resources Ltd. expanded its RUM nickel project in Quebec after acquiring three new targets similar to the intrusion hosting the property's Bluenose zone, which was discovered in July.

* The government of the Northwest Territories in Canada held a groundbreaking ceremony in the Whati community to celebrate the start of construction of the Tlicho all-season road, which is expected to benefit Fortune Minerals Ltd.'s NICO cobalt project.

PRECIOUS METALS

* Centerra Gold Inc. said the remaining legal proceedings related to the Kumtor gold mine in Kyrgyzstan have been terminated to complete a strategic agreement reached in September 2017.

* Argonaut Gold Inc. expects to extend the life of the El Castillo gold mine in Mexico, its highest-cost operation, after signing a series of collar option contracts on a portion of the remaining life-of-mine production.

* IAMGOLD Corp. resumed partial operations at its Rosebel gold mine in Suriname following a suspension in early August due to a clash between police and illegal miners that left one miner dead.

* Australian gold output surged to an all-time record of 321 tonnes or 10.3 million ounces in financial year 2018-2019, from 317 tonnes in the previous year, Australian Mining wrote.

* La Mancha Resources Inc. Chairman Naguib Sawiris plans to invest in gold and copper mining in Egypt after learning the details of the amendments made to his home country's mining law, Reuters reported.

* Magmatic Resources Ltd. signed a 50/50 partnership and framework agreement with Blue Cap Mining Pty. Ltd. to develop the North Iron Cap gold project in Western Australia. The two companies also plan to enter into mining services and related funding agreements to bring the operation into production over the next six to 12 months.

* Great Southern Mining Ltd. completed a transaction to purchase the historical Cox's Find gold mine and surrounding tenure in Western Australia from Raymon Kowal.

* Nevada Gold Mines LLC, a joint venture of Barrick Gold Corp. and Newmont Goldcorp Corp., will provide support for the victims of a crash between a truck hauling ore and a bus carrying the company's employees on State Route 766 that left two dead and several injured, Elko Daily Free Press reported.

* Golden Predator Mining Corp. secured approval from the Yukon Government in Canada to begin work for the restart of the Brewery Creek gold mine.

* China's net gold imports via Hong Kong in July dropped 42% to 8.085 tonnes in July from 14.043 tonnes in June, Reuters reported, citing data from the Hong Kong Census and Statistics Department.

BULK COMMODITIES

* Mine investor Anglo Pacific plans to spend £100 million to back struggling mining projects, The Telegraph reported, citing CEO Julian Treger.

* The Gomeroi Traditional Custodians are suing Australia's Environment Minister Sussan Ley for favoring the development of China Shenhua Energy Co. Ltd.'s Watermark coal project in New South Wales over the protection of sacred sites, ABC News wrote.

* OM Holdings Ltd. unit OM (Manganese) Ltd. will form a 70/30 joint venture with Bryah Resources Ltd. over the manganese rights at the latter's Bryah Basin project in Western Australia.

* Kalium Lakes Ltd. received a credit-approved offer from Westpac Banking Corp. for a A$15 million working capital facility and a hedging facility for the Beyondie sulfate of potash project in Western Australia. A final investment decision is on target in the current quarter.

SPECIALTY

* After vanadium prices fell by 75% this year due to the partial substitutions with alternatives, Evraz PLC said steelmakers are increasing the use of the metal again, Bloomberg reported. Companies use the metal to strengthen steel and had started using niobium and titanium while prices were high toward the end of 2018.

* Pilbara Minerals Ltd. executed a binding terms sheet with POSCO to build a 40,000-tonne-per-annum lithium hydroxide and carbonate chemical conversion facility in South Korea.

* Argosy Minerals Ltd. exercised its option to acquire the Tonopah lithium project in Nevada.

* Ceylon Graphite Corp.'s Sarcon Development (Pvt) Ltd. unit received a category A industrial mining license for its K1 graphite project in Sri Lanka after recently obtaining an environmental approval.

* Stans Energy Corp. is disappointed by the US$24 million arbitration award it received over Kyrgyzstan's seizure of the Kutessay II rare earths mine as it was small compared to the US$219 million claim it had filed in January 2016. Stans is working with its legal team for its next move.

* American Battery Metals Corp. opened an office in Tonopah, Nevada, located 55 miles south of its 1,300 lithium claims in Railroad Valley. The new site will serve as a venue for research and analysis, storage, and as an auxiliary testing facility.

INDUSTRY NEWS

* ASX-listed explorers and producers in Mali said the country's new mining code, which will reduce the "stability period" under which investments are protected from changes in the country's fiscal or customs regimes, will not materially impact companies that already have mining or even exploration permits granted under the prior 2012 code, according to an exclusive S&P Global Market Intelligence report.

* Chinese lawmakers passed a new law allowing local governments to tax as many as 164 different resources, including minerals, fossil fuels and eventually water, Reuters reported, citing the Chinese finance ministry.

* Leading Argentinian presidential candidate Alberto Fernandez met with mining companies, including Glencore PLC, Newmont Goldcorp and POSCO, to discuss his team's plan to create a legal framework that provides certainty for investments in the mining sector, Reuters reported.

* Macmahon Holdings Ltd. delayed the release of its full-year financial results as it is still finishing negotiations with Newcrest Mining Ltd. over its contract at the Telfer gold mine in Western Australia, The Australian reported.

* Almost 100 companies impacted by Brexit have chosen to operate from the Netherlands while about 325 other firms have shown interest in doing the same amid the ongoing uncertainty surrounding the U.K.'s exit from the EU, the Netherlands Foreign Investment Agency said.

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