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TOP NEWS
Norilsk Nickel's H1'19 net profit jumps 81% on forex gains
A devalued Russian ruble helped push PJSC Norilsk Nickel Co.'s first half profit 81% higher to just under US$3.00 billion. The Arctic precious and base metal producer recorded a US$548 million foreign exchange gain, compared to a loss of US$453 million in 2018, as the latest round of U.S. sanctions against Moscow depressed the currency.
Canada to invest C$2.2B to clean up 8 mines in Yukon, Northwest Territories
The Canadian government plans to invest C$2.2 billion over 15 years to clean up eight abandoned mining projects in the Yukon and the Northwest Territories. The active remediation is expected to complete at seven of the eight mine sites at the end of the 15-year program.
Harmony Gold sets sights on AngloGold's Mponeng as FY'19 headline EPS climbs
Harmony Gold Mining Co. Ltd. is considering acquiring AngloGold Ashanti Ltd.'s Mponeng gold mine in South Africa as it looks to replenish depleting reserves, Bloomberg News reported, citing Harmony Gold CEO Peter Steenkamp. The company's headline earnings per share for fiscal 2019 rose 19% to 204 South African cents, from 171 cents per share last year, as new acquisitions Moab Khotsong and Hidden Valley boosted gold output and cash flow. Net loss for the year improved to 2.6 million rand, from 4.5 million rand.
BASE METALS
* Glencore PLC tapped investment bank UBS as an adviser for the CSA copper mine in New South Wales, Australia, fueling speculation that the property will be up for sale again after a US$575 million deal with Aeris Resources Ltd. fell through in April, The Australian reported.
* BHP Group is aiming to boost production at its Olympic Dam copper mine in South Australia to a sustainable 200,000 tonnes per annum this year and will consider a "modest or major" expansion once it stabilizes operations, though this is "probably some years from now," MiningNews.net reported, citing CEO Andrew Mackenzie.
* The competition authority of Botswana approved Sandfire Resources NL's proposal to purchase 100% of MOD Resources Ltd. for an implied value of 45 Australian cents per share, valuing the target at A$167 million. MOD shareholders will vote on the proposal in an Oct. 1 meeting.
* Asiamet Resources Ltd. secured a subsidiary of China Nonferrous Metal Mining (Group) Co. Ltd. for engineering, procurement and construction management services for its BKM copper project in Central Kalimantan, Indonesia.
* OreCorp Ltd. was granted exploration permit 2259 at the Akjoujt South nickel project in Mauritania.
* PolyMet Mining Corp. said the Minnesota State Supreme Court declined to hear an appeal by environmental groups seeking a supplemental review of Poly Met Mining Inc.'s environmental review for its NorthMet copper project.
* The Zambian government denied that President Edgar Lungu will meet Vedanta Resources Ltd. in India over the issues surrounding Konkola Copper Mines PLC, Reuters reported.
PRECIOUS METALS
* Matsa Resources Ltd.'s mining study for the proposed stage two mining operations at its Fortitude gold deposit, part of the Lake Carey project in Western Australia, outlined capital expenditure of A$6.6 million. Total production was estimated at 54,400 ounces of gold at 93% recovery.
* The Earth Resources Department in Victoria, Australia, refused to renew GBM Gold Ltd.'s Bendigo mining licenses forcing the company to stop work on its gold mining operations. The department was not satisfied that GBM unit Kralcopic Pty. Ltd. would be able to finance the proposed work and rehabilitation requirements.
* Rox Resources Ltd. secured an option to secure a 75% interest in Cullen Resources Ltd.'s Mount Eureka gold project in Western Australia.
* St Barbara Ltd.'s ore reserves stand at 5.9 million gold ounces contained in 90.7 million tonnes at 2.0 g/t gold and resources at 12.0 Moz contained in 183.1 Mt at 2.0 g/t gold following the recently completed acquisition of Atlantic Gold Corp.
* Golden Mile Resources Ltd.entered a binding agreement to acquire the Yuinmery gold project in Western Australia from Legend Resources Pty Ltd.
* The Metals and Mining Research team at S&P Global Market Intelligence estimated that six Canadian gold mines and projects could be divested from the mergers of Barrick Gold Corp. and Randgold Resources Ltd., Newmont Goldcorp Corp. and Goldcorp Inc., and Pan American Silver Corp. and Tahoe Resources Inc. Timmins and Red Lake are very likely to be sold, Porcupine and Coffee are likely to be sold, and Eleonore and Hemlo are unlikely to be sold in the short to medium term.
* IAMGOLD Corp. fired 325 contractors from the suspended Rosebel gold mine in Suriname after an illegal miner was killed by police in early August, Reuters reported, citing company spokeswoman Indi Gopinathan. The company is working to improve security at the site as it aims to restart the mine, the report said.
* Alliance Resources Ltd. asked shareholders to take no action on Gandel Metals Pty Ltd's takeover offer of 14 Australian cents per share.
* Monarch Gold Corp. closed its acquisition of the Fayolle gold project in Quebec from Typhoon Exploration Inc. and Hecla Mining Co. affiliate Hecla Quebec Inc.
* JPMorgan Chase & Co. precious metals trader Christian Trunz pleaded guilty to spoofing, or placing thousands of fake trade offers for gold, platinum and palladium futures contracts, Reuters reported.
BULK COMMODITIES
* Mineral Resources Ltd. agreed with a subsidiary of Cazaly Resources Ltd. to purchase the latter's Parker Range iron ore project in Western Australia for A$20 million and a royalty of 50 Australian cents for every dry tonne of iron ore extracted from the tenements, payable after the first 10 million dry tonnes.
* A subsidiary of Rhino Energy LLC entered into an agreement with Blackjewel LLC to purchase three underground coal mines in Virginia, according to a filing by Rhino Resource Partners LP.
* BHP toppled Rio Tinto as the world's lowest-cost iron ore producer after the former delivered second-half costs of US$11.89 per tonne, The Australian wrote. Separately, BHP CEO Andrew Mackenzie declined to confirm if the company is actively running a process to exit thermal coal, adding that he is "not in a hurry" to off-load the division, The Australian Financial Review reported.
* Up to 20% of Chinese demand for low-grade ore is expected to shift toward high-grade ore and iron ore pellets in coming years as it moves steel mills to coastal regions with tougher environmental requirements, Reuters reported, citing industry sources and an analysis of official import and production statistics by the newswire.
* Edenville Energy PLC received two recently acquired 30-tonne trucks to use in mining load and haul at its Rukwa coal project in southwest Tanzania. The wash plant is also expected to move to a double-shift basis in the coming weeks to boost productivity.
* The Karnataka Government in India canceled the mining lease extension it had granted to National Mineral Development Corp. Ltd. for the Donimalai iron ore mine, Press Trust of India reported.
* The Australian government may cancel Cu-River Mining Australia Pty. Ltd.'s permit to access its Cairn Hill iron ore project in South Australia due to national security concerns as the property is located near a top-secret weapons testing site, The Sydney Morning Herald reported.
* Engineering and consultancy firm Aurecon Australasia Pty. Ltd. cut ties with Adani Enterprises Ltd. and its Carmichael coal project in Queensland, Australia, due to pressure from anti-coal activists, the Australian Financial Review reported.
* Wiggins Island Coal Export Terminal Pty Ltd. filed an appeal to a previous court ruling that declared New Hope Corp. Ltd. did not guarantee the debts of units Northern Energy Corp. Ltd. and Colton Coal Pty. Ltd. over the Colton coal project in Queensland.
* The U.S. is set to impose duties on subsidized steel rack imports from China after the U.S. International Trade Commission determined that they hurt the U.S. industry, Reuters reported.
SPECIALTY
* Technology Metals Australia Ltd.'s definitive feasibility study for its Gabanintha vanadium project in Western Australia outlined a net present value, discounted at 8%, of A$870 million, a 27.3% internal rate of return and a 3.2-year payback period. Total pre-production process plant capex was estimated at A$454 million. Average vanadium oxide production is expected at 27.9 million pounds per annum, targeted to start in 2022.
* Bolivia's state-owned lithium company Yacimientos de Litio Bolivianos and Chinese conglomerate Xinjiang TBEA Group Co. Ltd. agreed to create a joint venture to build and operate a US$1 billion plant, which will produce lithium carbonate from the Pastos Grandes salt flat, news agency EFE reported.
* Alita Resources Ltd. completed a shipment of about 10,500 dry tonnes of lithium concentrate to Jiangxi Bao Jiang Lithium Industrial Ltd. The company is looking to restructure the off-take agreement as part of its refinancing proposals.
* Iluka Resources Ltd. booked an 8.8% yearly increase in first half profit to A$137.2 million from A$126.1 million due to higher prices and increased royalty revenue from the Area C iron ore operation in Western Australia. Capex guidance for the full year was reduced to A$260 million from A$330 million mainly due to a delay beyond the current year for the Sembehun early works at the Sierra Rutile project in Sierra Leone.
* An updated preliminary economic assessment on Texas Mineral Resources Corp.'s Round Top rare earths project in Texas outlined a pretax net present value of US$1.56 billion, at a 10% discount rate, with a 70% internal rate of return and a 1.4-year payback period.
* Largo Resources Ltd. will not renew a 2008 off-take agreement with Glencore International AG on the Maracas Menchen vanadium mine in Brazil. The deal will expire April 30, 2020.
* King River Resources Ltd. highlighted the potential to further cut the projected capital cost for its Speewah Dome vanadium project in Western Australia by US$152 million to US$524 million by reducing the planned start-up mining rate through the installation of a more standard-sized acid plant, The West Australian reported.
INDUSTRY NEWS
* U.S. mine safety officials are not adequately evaluating whether monetary penalties are effective at reducing fatal or permanent accidents across the nation's mines, according to an audit from the U.S. Department of Labor's Office of Inspector General.
* Chile will include costs of fighting climate change in its annual budget starting in 2020, Reuters reported, citing Finance Minister Felipe Larraín.
* Japan has approved the sale of advanced technology resources to South Korea, tempering its prior decisions to impose strict export controls, ahead of scheduled talks to sooth trade tensions, Reuters reported, citing two sources close to the matter.
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