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ThyssenKrupp shareholders may vote against Tata Steel JV

Industry Top Trends 2021: Metals and Mining

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


ThyssenKrupp shareholders may vote against Tata Steel JV

TOP NEWS

ThyssenKrupp shareholders mull voting against Tata Steel joint venture

ThyssenKrupp AG's major shareholders plan to vote against the German steelmaker's proposed European steel joint venture with Tata Steel Ltd. amid doubts about the deal, Bloomberg News reported, citing people familiar with the matter. The shareholders, which include Cevian Capital and Alfried Krupp von Bohlen und Halbach-Stiftung, are mounting pressure on ThyssenKrupp management to sweeten the terms of the deal with the Indian steelmaker.

Rio Tinto prioritizes rail capacity debottlenecking, aims to match mine and port capacity by end of 2019

Rio Tinto's Western Australian iron ore operations are aiming to complete the debottlenecking of its rail capacity, in order to match its mine capacity of 360 million tonnes per annum including the ramp-up of its Silvergrass operations and its current port capacity of 360 mtpa, by the end of 2019. The mining giant views its AutoHaul program as a crucial component in the debottlenecking of its rail capacity, which is currently up to 340 mtpa.

South32 to acquire remaining 83% stake in Arizona Mining for US$1.3B

South32 Ltd. struck an all-cash deal to acquire the remaining 83% stake in 17%-owned Arizona Mining Inc. for US$1.3 billion. The diversified miner offered C$6.20 for each Arizona Mining share, representing a 50% premium to the closing price on June 15, which implies a total equity value of US$1.6 billion for the company. Arizona Mining owns the Hermosa silver-zinc-lead project in Arizona and an extensive land package with a potential for polymetallic and copper mineralization.

DIVERSIFIED

* Glencore PLC was deemed the outstanding stock by J.P. Morgan Cazenove in a valuation analysis of the Europe, Middle East and Africa metals and mining sector, ahead of Rio Tinto and Anglo American PLC. Rio Tinto is tagged with a neutral rating by J.P. Morgan Cazenove, while Glencore and Anglo American have an overweight recommendation.

BASE METALS

* Indonesia's Nickel Mines Ltd. hopes to raise A$200 million in an ASX IPO, expecting to start trading Aug. 2 if it succeeds, The Australian Financial Review reported. Bell Potter Securities is acting as the broker and sent out terms to fund managers for the offering, which values Nickel Mines at about A$485.8 million. The company owns an 80% stake in Indonesia's Hengjaya nickel mine.

* A minor leak was detected in the sulfuric acid storage plant at Vedanta Resources PLC's shuttered Tuticorin copper smelter in India's Tamil Nadu state, Reuters reported. The leak was not believed to be problematic, but the authorities decided to evacuate the storage as a safety precaution, said Sandeep Nanduri, the administrative official of the district where the plant is located.

* A pit wall failure at the Kali Kuning open pit of Finders Resources Ltd.'s Wetar copper project in Indonesia resulted in the temporary isolation of approximately 40,000 bank cubic meters of ore and a six-hour suspension of mining operations. The copper miner does not anticipate a disruption in the scheduled ore production, with a recovery plan to rehabilitate the zone and the affected ore underway.

* Arc Minerals Ltd. increased its shareholding in the Zamsort copper-cobalt project in northwest Zambia to 61%, following the acquisition of an additional 6% stake from two shareholders of Zamsort Ltd. for 12 million shares.

* RNC Minerals said it is withdrawing US$12 million of its capital from the Quebec-based Dumont nickel joint venture with Waterton Precious Metals funds in lieu of a US$13 million bridge financing facility announced at the end of May. RNC will keep US$4 million of cash in the Dumont venture, which it said is more than enough to cover its share of expenses on the property.

* Heron Resources Ltd. secured an electricity supply contract for the Woodlawn zinc-copper project in New South Wales, Australia, through to commissioning and up to the start of production in early 2019.

* Shareholder advisory groups ISS and Glass Lewis recommended that investors in Petropavlovsk PLC should not support a motion to oust the board in favor of two former executives. Glass Lewis based its recommendation on poor performance under the previous board, which included the two former executives, relative to the current board's performance. Petropavlovsk's second-largest investor Sothic Capital has already pledged to support the current board at the next shareholder meeting.

* South African Mineral Resources Minister Gwede Mantashe said 20 out of 45 mining deaths since the start of this year have been reported at Sibanye Gold Ltd.'s mining operations, adding that the Mine Health and Safety Inspectorate is probing and preparing a report on the miner, and would look to take action against it, Mining.com reported.

* Centerra Gold Inc. chose not to earn-in at Erris Resources Plc's Klippen gold project in Sweden as recent drill results were not encouraging. Erris also elected not to renew the Klippen license areas.

* Truck drivers lifted the blockade on the access road to Goldcorp Inc.'s Penasquito gold mine in Mexico after agreeing to negotiate on their demands with the Canadian miner, Reuters reported.

* A preliminary economic assessment for Jangada Mines PLC's Pedra Branca platinum project in northeastern Brazil outlined a net present value, discounted at 7%, of US$192 million, an internal rate of return of 67% and a 1.6-year payback period, with a potential life of mine of 13 years.

* Four people were killed and five others were injured in a landslide at an artisanal gold mine in Honduras, Reuters reported, citing the fire department.

BULK COMMODITIES

* Gina Rinehart's Hancock Prospecting Pty Ltd. lodged an off-market takeover bid to acquire Atlas Iron Ltd., in which it owns a 19.6% stake, in an all-cash deal where Atlas shareholders will receive 4.2 Australian cents per share held. Atlas Iron, which reached an agreement to merge with Mineral Resources Ltd. in April, advised its shareholders to take no action to the takeover offer. Rinehart's offer values Atlas at A$390 million, according to The Australian Financial Review.

* An fire at a cargo ship in Port Kembla in New South Wales closed the facility for several hours, disrupting shipping operations, Reuters wrote. The fire aboard the ship started while it was unloading dolomite bound for BlueScope Steel Ltd.'s blast furnace in the Australian state. The company does not expect any impact on its steelmaking operations and reported no damage to its equipment.

* Noble Group Ltd. requested a trading halt prior to the Singapore Exchange's market open, after its share prices tanked to 5.4 Singapore cents at market close June 14, the Financial Times reported. The commodities trader is working towards a controversial restructuring, which third-largest shareholder Goldilocks Investment Co. Ltd. has opposed.

* BHP Billiton Group awarded a A$260 million mining infrastructure works contract for the South Flank iron ore project to CIMIC Group Ltd., shortly after approving a US$2.9 billion development of the Western Australian project.

* Tyler Mitchelson, head of Anglo American's metallurgical coal business, plans to aggressively expand the miner's Australian operations, The Australian reported.

* An Australian railroad issue watched closely by international metallurgical coal buyers and sellers could soon be resolved, taking the air out of recent high prices, an analyst said. A dispute over regulated returns between Australian regulators and Aurizon Holdings Ltd. that threatened to curtail at least 20 million tonnes of coal from the export market per year may be close to a resolution, Seaport Global Securities analyst Mark Levin wrote. Supply uncertainty around the dispute was one of several major factors causing metallurgical coal prices to rise to over US$200/tonne on the spot market, Levin said.

* Jupiter Mines Ltd. plans to distribute a higher-than-expected dividend 1.5 billion South African rand to its shareholders this year due to operations at its Tshipi iron ore mine in the country continuing to exceed production and sales targets during the first quarter of the 2019 financial year.

* Australian coal miner Bounty Mining Ltd. was admitted on the ASX after raising A$18 million in an IPO. The company's shares will start trading under MNG on June 19.

* Brazil slapped anti-dumping duties of up to US$888.27 per tonne on imports of welded austenitic stainless steel pipes imported from Malaysia, Thailand and Vietnam, Metal Bulletin reported, citing a statement by the country's Ministry of Industry and Foreign Trade and Services.

* Demand for steel in Russia is expected to grow by up to 4% in 2018 and 8% by 2021 due to activity in the construction sector, Vedomosti reported.

* The construction of stadiums in Russia for the 2018 FIFA World Cup required 200,000 tonnes of steel, of which about 25% was supplied by PJSC Novolipetsk Steel, Vedomosti reported.

* Italian steelmaker Ori Martin purchased a majority stake in Brescia, Italy-based steelmaker Ferrosider, Metal Bulletin reported.

* China's National Energy Administration approved a 3.25 billion Chinese yuan coal project, with an annual capacity of 2.4 million tonnes, in the country's southwestern Guizhou province, ifeng.com reported.

SPECIALTY

* Chilean antitrust regulator FNE will launch a probe into the market impact of Tianqi Lithium Corp.'s purchase of a 24% stake in Sociedad Quimica y Minera de Chile SA for US$4.1 billion, Reuters reported. "In our investigation, the FNE will seek to verify, or dismiss, whether anti-competitive risks in Chile ... are plausible, and of a magnitude that makes them relevant," the FNE said in a statement.

* Lithium Power International Ltd. said the Centenario lithium project in Argentina is now a joint venture with Centenario Lithium Ltd. on a 70/30 basis, after the latter failed to complete the acquisition of the project. The explorer, meanwhile, is evaluating options to dispose of its 70% interest in Centenario, as well as its Pilbara and Greenbushes assets in Western Australia.

* Syrah Resources Ltd. now expects its Balama graphite project in Mozambique to produce between 32,000 and 34,000 tonnes of concentrate in the first half, compared to 40,000 tonnes of graphite concentrate expected previously. It attributed the reduction to the inconsistent performance of the flotation level sensors. Syrah expects to significantly improve flotation level sensor performance by the early part of the third quarter, forecasting full-year 2018 production of 160,000 tonnes of concentrate.

* Red 5 Ltd. sold its royalty entitlement from Galaxy Resources Ltd.'s Mt Cattlin lithium mine in Western Australia to Lithium Royalty Corp. for A$11 million.

* Atlas Iron made the first shipment of direct shipping ore sourced from Pilbara Minerals Ltd.'s Pilgangoora lithium project in Western Australia to Sinosteel Australia Pty Ltd.

* Lucapa Diamond Co. Ltd. fetched US$2 million from the sale of 1,782 carats of diamonds from its Lulo project in Angola, representing an average price per carat of US$1,150.

INDUSTRY NEWS

* Mining equipment maker Epiroc's CEO, Per Lindberg, told the Financial Times that the company is eyeing acquisitions to bolster its services arm and potentially the consumables division as it aims to enhance its digital expertise. The company is said to be the world's largest mining equipment manufacturer and is being spun out of Sweden's Atlas Copco. Epiroc has started trading on Nasdaq Stockholm's main market.

* The U.S. Treasury Department hit 14 companies with fresh sanctions due to ties to controversial mining-entrepreneur Dan Gertler and business in the Democratic Republic of the Congo. "Gertler has used his close friendship with DRC President Joseph Kabila to act as a middleman for mining asset sales in the DRC, requiring some multinational companies to go through Gertler to do business with the Congolese state," the department said.

* The Argentine government named Dante Sica production minister, replacing Francisco Cabrera, while placing the national mining agency under the same ministry, Reuters reported, citing a government statement. The mining agency was previously part of the energy ministry.

* The Minerals Council South Africa said it does not support some elements in the latest draft of the mining industry charter, including a stipulation that 1% of core profit is paid to communities and employees. The latest draft by the South African government also outlines plans to lift black ownership at permit-holding mining companies to 30% from 26% within five years.

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