TOP NEWS
China to create natural resources, ecological ministries in sweeping revamp
China presented a plan to overhaul its central government structure, involving more than two dozen ministries and organizations, as the Communist Party seeks greater control and reduced red tape, media reports said. The country will create a natural resources ministry to bring together scattered functions across different agencies. It will also set up a ministry of ecological environment to centralize water pollution management and to oversee climate change issues, a function previously managed by the National Development and Reform Commission, the South China Morning Post reported, adding that the country will also establish a new immigration bureau, a special agency for veterans and a health commission that will partly replace the family-planning commission.
Anglo American suspends Minas Rio iron ore ops after duct failure
Anglo American Plc halted iron ore output at its Minas Rio operation in Brazil's Minas Gerais state after a mineral duct ruptured, leaking a mixture of iron ore and water to a local watershed, Metal Bulletin and Reuters reported. Production will remain halted until the company determines the cause of the incident.
Canada 'ready to take action' if US nixes tariff exemption
Canadian Prime Minister Justin Trudeau said he was "ready to take action" if Canada fails to secure a permanent exemption from the new steel and aluminum tariffs put in place by U.S. President Donald Trump. Trudeau, at a press conference at a Rio Tinto aluminum facility in Quebec, offered no specifics about how Canada might react if the U.S. decided to reverse course on the temporary exemption.
DIVERSIFIED
* Vedanta Resources PLC approved an interim dividend of 21.20 Indian rupees per share, or 78.81 billion rupees, for its fiscal year ending March 31. The approved payout is the highest ever by the company in a financial year.
* AusQuest Ltd.'s strategic partnership with South32 Ltd. will continue with additional funding of US$500,000 to cover four new exploration opportunities, taking the alliance's total projects to 10. The partnership dates back to March 2017 and initially covered three nickel projects in Western Australia and two copper projects in Peru.
BASE METALS
* Antofagasta Plc declared a final dividend of 40.6 U.S. cents per share, for a total dividend of 50.9 cents per share for 2017, a 177% increase year over year. Profit for 2017 surged to US$750.6 million in 2017, from US$158.0 million a year ago. The company expects to produce 705,000 to 740,000 tonnes of copper, 190,000 to 210,000 ounces of gold and 11,500 to 12,500 tonnes of molybdenum in 2018.
* Raiden Resources Ltd. signed an agreement with Rio Tinto unit Rio Tinto Mining & Exploration Ltd. for an option to earn up to a 75% joint venture interest in three of the former's exploration licenses in Serbia.
* The Australian Takeovers Panel declined to conduct proceedings on all matters raised by Eastern Field Developments Ltd., which made an unsolicited off-market takeover offer for Finders Resources Ltd. In its application, Eastern Field said Finders did not provide information to shareholders on the current levels of copper cathode production, actual recovery levels of copper cathode and current levels of working capital.
* Zijin Mining Group Co. Ltd. is interested in purchasing Serbian copper miner and smelter RTB Bor, Reuters reported, citing the office of Serbian President Aleksandar Vucic. This follows a meeting between Vucic and Zijin representatives.
* Indonesian state miner PT Indonesia Asahan Aluminium (Persero) completed the valuation of the 40% stake in PT Freeport Indonesia owned by Rio Tinto, a source from the Energy Ministry told Kontan, without disclosing the value.
PRECIOUS METALS
* Endeavour Mining Corp. posted a net loss of US$134 million for the fourth quarter of 2017, widening from a year-ago loss of US$69 million. The company booked an impairment charge of US$130 million on its Tabakoto gold project in Mali and a US$44 million net loss on the sale of the Nzema mine in Ghana.
* Northern Vertex Mining Corp. poured first gold at its Moss mine in Arizona and secured a US$100 million commitment from Sprott Private Resource Lending LP for future acquisitions and development projects.
* Newcrest Mining Ltd. expects the stoppage of its Cadia East gold mine in New South Wales, Australia, to adversely impact its fiscal 2018 guidance. The company ceased operations at the site after a breach in one of the tailings dams.
* Rift Valley Resources Ltd. is selling its Kitongo gold project for US$550,000 as part of its divestment of Tanzanian assets. The company also agreed to sell its Canuck prospecting license for US$250,000. Meanwhile, Rift is evaluating a proposal to option out its Miyabi gold project, also in Tanzania.
* Dateline Resources Ltd. is acquiring the historical Raymond and Carter gold mines near its Gold Links gold-silver property in Colorado, which will boost the company's freehold landholding to 2,000 acres.
* Gold Resource Corp. agreed to purchase the County Line gold project in Nevada from Ely Gold Royalties Inc. unit Nevada Select Royalty Inc. for US$300,000.
* Anglo Asian Mining Plc plans to kick off a three-year exploration program at its Gedabek, Gosha and Ordubad contract areas in Azerbaijan in a bid to replace mined ounces, increase the inventory of resources and extend the mine life to at least 10 years. The program will cost about US$6 million this year and will be funded from internal cash flow.
* Altus Strategies Plc defined a new 2.3-kilometer-long gold prospect within its Sebessounkoto Sud license in western Mali.
* Polymetal International PLC expects to produce 1.55 million ounces of gold equivalent this year, up from 1.43 million ounces in 2017, driven by the ramp-up of operations at the Kyzyl project, CEO Vitaly Nesis said on an earnings call. The company's net profit dropped year over year in 2017 to US$354 million, from US$395 million.
BULK COMMODITIES
* Australian economists are lining up to downplay any significant impact from U.S. President Donald Trump's decision to put heavy tariffs on steel and aluminum imports, with the resources sector set to benefit from the growing list of trade deals in which Australia, China and the U.S. are involved. Westpac senior economist Justin Smirk said all that saber rattling was just "bluster," and the tariffs implemented thus far "in all honesty aren't really that much of a big deal in terms of impact on steel and global production."
* Noble Group Ltd. decided not to pay the coupon due March 9 with respect to the US$750 million notes due March 9, 2022, and availed a 30-day grace period for the coupon. The company said it made the decision in consultation with an ad hoc group of senior creditors and is close to agreeing to a proposed restructuring of its unsecured liabilities with the ad hoc group. Meanwhile, Noble Group subsidiary agreed to sell its Kamsarmax dry bulk carrier vessel for US$24 million to Bianca Corp. and Primerose Shipping Co. Ltd.
* Separately, sources told Bloomberg that the troubled commodities trader is racing to reach a restructuring deal before a US$379 million bond maturity March 20. Two sources told Bloomberg that the company may continue trading even after a default on the 2018 bond, as its deal with most creditors would lower the chances of enforcement proceedings.
* India's National Aluminium Co. Ltd. declared its highest-ever dividend of 4.70 Indian rupees per share, for a total of 9.08 billion rupees, for the fiscal year 2017-18.
* Jastrzebska Spólka Weglowa SA's 2017 net profit jumped to 2.54 billion Polish zlotys, compared to 4.4 million zlotys a year earlier, driven by a 65% rise in the average coking coal price. The miner produced 14.8 million tons of coal, comprising 10.7 million tons of coking coal and 4.1 million tons of steam coal. Revenue surged 38% on a yearly basis to 4.9 billion zlotys
* ArcelorMittal intends to repurchase 7.0 million of its shares for an aggregate maximum amount of US$280.0 million. The offer will be open from March 13, 2018, to May 5, 2020.
* Rail freight operator Aurizon Holdings Ltd. said a preliminary decision from the competition authority in Queensland, Australia, over the pricing of access to its rail network will limit its revenue to a maximum of A$3.89 billion from the Queensland coal network, A$1 billion lower than the company's proposal, The Australian reported. The company said "the proposed rate of return of 5.41% does not promote the economically efficient operation of, use of and investment in" the coal network.
* Vedomosti reported that EuroChem Mineral Chemical Co. OJSC's Usolskiy potash plant in Russia received first potassium chloride, while marketable products are scheduled for the second quarter. The plant is estimated to produce about 600,000 tonnes of commercial products this year and 2.3 million tonnes at full capacity in 2021. The project is expected to cost US$3 billion, of which US$1.8 billion has already been invested. PJSC Uralkali was the only potassium producer in Russia until production at Usolskiy started. Meanwhile, PJSC Acron is also planning to produce potash.
* Kommersant reported that Turkish company Gemont plans to build a factory in Tatarstan for the production of cold-rolled products of up to 770,000 tonnes with the prospects of expanding to 1.25 million tonnes. The Russian subsidiary of Gemont has already obtained its status as a resident of the Alabuga special economic zone, and the head of Tatarstan, Rustam Minnikhanov, promised the project "maximum support."
* U.S. Steel Corp. expects its full-year EBITDA to come in at about US$1.7 billion, compared to US$1.5 billion in previous guidance, driven by increased shipments from its Granite City Works property in Illinois and the potential benefits from the recently announced steel and aluminum tariffs by the U.S. government. The company expects incremental shipments of about 100,000 tonnes per month from Granite City Works once the restart process for some of its facilities is completed.
* Nucor Corp. will invest US$240 million to build a rebar micromill in Florida to take advantage of an abundant supply of scrap metal. Construction will take two years, subject to approvals, and the mill is expected to have an annual capacity of 350,000 tonnes.
* An application to certify a class-action lawsuit against two Israel Chemicals Ltd. subsidiaries over alleged water pollution was filed in an Israeli court. The subsidiaries are Periclase Dead Sea Ltd. and Rotem Amfert Negev Ltd.
SPECIALTY
* Chilean nuclear commission CCheN authorized an increase of the extraction quota for the Maricunga lithium brine project in northern Chile to 88,885 tonnes of lithium metal equivalent over 30 years. Maricunga is a joint venture between Lithium Power International Ltd., Minera Salar Blanco SpA and Bearing Lithium Corp., daily Pulso reported.
* RBC Daily and Vedomosti reported that the Chinese National Nuclear Corp., or CNNC, will finance the construction of a uranium mine in the Trans-Baikal Territory, which state-owned Rosatom was unable to finance. A term sheet was signed March 12 by Rosatom representatives and the Russian-Chinese Investment Fund for Regional Development, acting in the interests of CNNC.
* Gem Diamonds Ltd. sold its exceptional-quality, 910-carat, D-color, Type IIa diamond for US$40 million on tender in Antwerp, Belgium. The diamond, recovered from the Letseng mine in Lesotho, was named The Lesotho Legend.
* PJSC Alrosa made an early loan repayment of US$450 million, slashing its debt by over 27% to US$1.17 billion. The Russian diamond miner used the proceeds from the auction of its gas assets for the repayments.
* NextView New Energy Lion HongKong Ltd. completed its C$265 million acquisition of Lithium X Energy Corp.
INDUSTRY NEWS
* China's plans to set up three ministries to oversee the mining sector as part of sweeping government reforms are expected to strengthen the country's ongoing crackdown on pollution by resource producers, according to Li Zhiqing, deputy director of Fudan University's research center for environmental economics.
* Zimbabwe Electricity Transmission and Distribution Co. gave miners and large-scale farms six months to clear their dues or risk being cut off and facing litigation, Reuters reported. The state-owned electricity distributor is owed over US$1 billion by users, including domestic households, farmers, industries and mining companies.
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.
