TOP NEWS
Vedanta hikes final dividend after swing to profit in FY'18
Vedanta Resources PLC swung to a profit attributable to shareholders of US$236 million in its fiscal 2018 ended March 31, from a US$23 million loss a year ago. Revenue surged 33% year over year to US$15.36 billion on the back of strong commodity prices and volume ramp-ups. Meanwhile, the reversal of a previously recorded noncash impairment charge of US$1.46 billion at the company's oil and gas business as was partially offset by a US$758 million noncash impairment charge at Iron Ore Goa. Vedanta announced a final dividend of 41 U.S. cents per share. Vedanta ceased construction and all other activities at the proposed second plant at its Tuticorin copper smelter in Tamil Nadu, India, until it secures a renewed environmental clearance for the project. The application is expected to be decided by the authorities by Sept. 23.
Report: Rio Tinto ready to sell Grasberg stake to Indonesia for US$3.5B
Rio Tinto is ready to sell its stake in the Grasberg copper mine to Indonesia for US$3.5 billion, Bloomberg News reported, citing anonymous sources. Responding to media reports, Rio Tinto confirmed that discussions between the parties are ongoing, but no deal has been agreed yet and there is no certainty that binding agreements will be signed. Rio Tinto's exit from the giant mine depends on Freeport-McMoRan Inc. reaching a deal to transfer some of its stake to state-owned PT Indonesia Asahan Aluminium (Persero). Rio Tinto is entitled to 40% of Grasberg's copper production above specific levels until 2021 and 40% of all production after 2023.
US facing US$3.5B in retaliatory tariffs from Russia, EU, others
The World Trade Organization said Japan and Turkey may impose retaliatory tariffs of US$440 million and US$267 million, respectively, on U.S. goods in response to a previously announced tariff on steel and aluminum in March, Reuters reported. This is on top of Russia's threat to implement US$538 million in tariffs, with the European Union, China and India putting their claims at US$1.6 billion, US$612 million and $165 million, respectively, bringing the total bill to about US$3.5 billion per year.
DIVERSIFIED
* Oil major BP PLC has invested US$20 million in "ultra-fast charging" battery developer StoreDot Ltd. in what at least one analyst said is another indicator that oil companies may soon add battery metals miners to their acquisition target list. StoreDot is developing a new type of electric car battery that will aim to achieve a charging experience that is comparable to the time spent to refuel a traditional car.
* According to ABC News, BHP Billiton Group aims to close the gender gap within the group by 2025 and continues to train women for mine jobs through a program at its Mount Arthur coal mine in New South Wales.
BASE METALS
* Arnaud Soirat, Rio Tinto's copper and diamond head, said the market for copper will become under-supplied by 2021, resulting in higher prices for the metal, Bloomberg News reported.
* The price of copper could fluctuate in the next five years between US$2.92 and US$3.06 per pound and reach a long-term value of US$2.95/lb, according to Codelco's new business and development plan for 2018 through 2022, which was accessed by daily La Tercera.
* Cobalt 27 Capital Corp. secured a stream of over 55.0% and 27.5% on Highlands Pacific Ltd.'s attributable share of cobalt and nickel production, respectively, from the Ramu nickel-cobalt mine in Papua New Guinea for US$113 million.
* Jilin Jien Nickel Industry Co. Ltd. received a notice from the Shanghai Stock Exchange that its shares will be delisted as the company has booked consecutive earnings deficits in its annual earnings reports from 2014 to 2017.
* Avanco Resources Ltd. warned that it may have to scale back some operations in Brazil to preserve fuel stocks due to a nationwide truck driver strike. The strike may disrupt the supply of consumables for mining and processing at the Antas copper project and delay the transport of copper concentrate to port.
* Telson Mining Corp. started commercial production at its wholly owned Campo Morado zinc-lead-silver-gold mine in Guerrero, Mexico.
* Workers Union No. 1 at BHP Billiton Group's Escondida copper mine in Chile must submit a new list of petitions between June 1 and June 16 to kick off a new collective negotiations process with the company, daily El Mercurio de Antofagasta reported.
* Xiana Mining Inc. signed a definitive agreement with subsidiaries of Glencore PLC to acquire Chilean copper-gold operation Minera Altos De Punitaqui.
* Minotaur Exploration Ltd. is purchasing nine copper-gold exploration permits, known as the Highlands project, from Syndicated Metals Ltd.
PRECIOUS METALS
* A higher realized gold price drove a 2% year-over-year increase in Nord Gold SE's first-quarter revenues to US$300 million, yielding a net profit of US$42.4 million. EBITDA, meanwhile, fell to US$126 million both on a quarterly and annual basis, mainly due to higher costs.
* The Greek government hopes to resolve a dispute with Eldorado Gold Corp. over the miner's development plans in the country in the coming weeks, Reuters reported. Greek Energy Minister George Stathakis did not specify details of any potential deal but said Greece is mandated by a ruling to ensure Eldorado will produce pure gold, silver and zinc in the country.
* For most precious metals companies, higher oil prices are a pain in the bottom line, but not so for Franco-Nevada Corp. A royalty company largely focused on the precious metals sector is showing increasing revenue-generating muscle on the back of rising oil and gas prices and a fossil fuel portfolio it expanded over the past couple of years. Its revenue from oil and gas rose from US$28 million in 2015 to US$47 million in 2017.
* Kairos Minerals Ltd. more than doubled the total mineral resource estimate at its Mount York project in Western Australia to an indicated and inferred resource of 643,000 ounces of gold contained in 14.4 million tonnes grading 1.3 g/t gold.
* Northern Shield Resources Inc. entered into an option agreement to acquire up to an 80% interest in the Five Island property in Nova Scotia.
* Chimata Gold Corp. signed a letter of intent with Emgold Mining Corp. that allows the latter to acquire up to a 100% interest in the Troilus North property in Quebec.
* Galantas Gold Corp. expects production of flotation concentrate from development ore at its Omagh gold mine in Northern Ireland to restart early in the third quarter. The permit for underground operations is under a judicial review appeal, and the company is waiting for a court decision.
* Goldcorp Inc. CEO David Garofalo said that ideally, the company should have an asset in Nevada's Carlin Trend, adding that he would also like to acquire something in Peru, Bloomberg News reported.
* Algold Resources Ltd.'s preliminary economic assessment for the Tijirit gold project in Mauritania pegged a posttax net present value, discounted at 8%, of US$69.0 million, a 23.5% internal rate of return and a 1.8-year payback period.
BULK COMMODITIES
* Israel Chemicals Ltd. accepted for purchase US$600.1 million of 4.500% senior notes due 2024 following the close of the previously announced tender offer.
* Adani Enterprises Ltd. enlisted Rothschild to help sell a stake in its Abbot Point port operations in Queensland, a move that sources familiar with the matter said could help the company raise funds for the
* Vedomosti reported that PJSC Novolipetsk Steel will increase production, despite U.S. duties, as experts believe that while demand for slabs is limited in Russia, it still exists overseas.
* Anglo American PLC unit Kumba Iron Ore Ltd. may be able to extend the current 13-year life of its Sishen iron ore mine in South Africa by investing in technology, Miningmx reported. Kumba CEO Themba Mkhwanazi said exploration is ongoing between the company's Sishen and Kolomela mines, and it is undertaking a bankable feasibility study to install a large-scale, ultra-high dense media separation plant at Sishen, which will treat 260 million tonnes of stockpiled material.
* Pan Asia Corp. Ltd. takeover target New Emerald Coal Pty. Ltd. was placed into voluntary administration, and a receiver was appointed by a secured creditor, which intends to proceed to a deed of company arrangement.
* Vale SA denied Brazilian media reports that suggested the company was in talks with BHP or has reached an agreement to acquire the latter's stake in their Samarco Mineração SA joint venture in Brazil.
* EU Trade Commissioner Cecilia Malmstrom said Washington appears unsatisfied with the bloc's proposal for greater market access to U.S. industrial products in exchange for a permanent exemption from tariffs on metal imports from Europe, Reuters reported. Meanwhile, the U.S. is said to be considering measures to cut imports of steel and aluminum from the EU by about 10%, The Wall Street Journal reported.
* Activist investor Elliott Management is nearing the acquisition of a stake in Germany's ThyssenKrupp AG, Reuters reported, citing a source. The move could result in increased pressure on management to restructure the group as the activist fund steps up its activities in Europe.
* Itafos signed a definitive agreement with a syndicate of lenders to provide a US$165 million secured term loan facility. The funds are earmarked for working capital, to cover other cash requirements of the Arraias phosphate operations in Brazil and the Conda phosphate operations in the U.S., and to develop other phosphate projects, including Paris Hills in the U.S. and Farim in Guinea-Bissau.
SPECIALTY
* National Atomic Co. Kazatomprom JSC expanded its global sales network after winning the bid to supply natural uranium concentrates to Brazilian state-owned nuclear fuel company Indústrias Nucleares do Brasil, Mining Weekly wrote.
* Infinity Lithium Corp. Ltd. said indicated resources at the San Jose lithium-tin project in Spain increased by approximately 1.7 million tonnes from the previous estimate in December 2017.
* Core Exploration Ltd. estimated a maiden resource for the BP33 deposit, part of the Finniss lithium project in Australia's Northern Territory, comprising an inferred resource of 1.4 million tonnes at 1.4% lithium oxide, or Li2O, for 20,000 contained tonnes, which increased the project's total resource by 70% to 3.5 million tonnes at 1.4% Li2O for 50,000 contained tonnes.
* Nemaska Lithium Inc. intends to raise C$360 million to complete the C$1.10 billion funding package for construction, commissioning, working capital and reserves of the Whabouchi lithium project in Quebec.
* Chalice Gold Mines Ltd. applied for a suite of exploration licenses that form the Flinders River vanadium project in Queensland and the Julimar nickel-vanadium project in Western Australia.
* Aura Energy Ltd. said an orebody modeling study defined a high-grade vanadium zone close to surface at the Haggan battery metals project in Sweden of 90 million tonnes at 0.42% V2O5 at a cutoff of 4,000 parts per million.
* Juniors remain hopeful of Tanzania's "openness" even as uncertainty over the country's new mining laws and the likelihood of high-grade, low-cost projects being delayed has put at risk CRU Group's forecast of natural graphite market balance by 2023.
INDUSTRY NEWS
* The Minerals Council of Australia welcomed the start of talks between Australia and the EU over a free trade agreement, saying the deal would allow for better trade, investment and economic relationship between the regions, Mining Weekly wrote. Formal negotiations will begin in June, and MCA interim CEO David Byers said coal, gold and lead are among Australia's largest goods exports to the bloc, worth about A$8.8 billion in 2017.
* The South African government will remove a clause from its mining charter related to including naturalized citizens in the group of people who should benefit from efforts to balance the distribution of the country's mineral wealth, Fin24 wrote, citing Mineral Resources Minister Gwede Mantashe.
* According to a report by international nongovernmental organization Global Witness, Taliban militants are earning between US$2.5 million and US$10 million per annum from mining and selling talc from eastern Afghanistan, Bloomberg reported. In the first quarter, about 500,000 tonnes of talc was exported from Afghanistan, and nearly all of it went to Pakistan, Reuters added. Pakistan accounts for almost a third of U.S. talc imports.
* S&P Global Market Intelligence's Pipeline Activity Index was up slightly in April to 77, from 76 in March, as increases in drilling activity and significant financings were offset by decreases in initial resources and project milestones. By target, the gold PAI was down to 93 from 116, while the base metals PAI rose to 62 from 46.
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