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Glencore tops reserves rankings; Raspadskaya mine stopped after roof collapse

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Glencore tops reserves rankings; Raspadskaya mine stopped after roof collapse

TOP NEWS

Glencore posts largest copper reserves growth over 10 years

Glencore PLC had the largest reserves growth of all the companies in the copper reserves replacement study by S&P Global Market Intelligence's Metals and Mining Research team, adding 45.2 million tonnes of copper to reserves through a mixture of acquisitions and exploration over the past 10 years. It accomplished this while rising to become the world's second-largest copper producer behind Codelco in 2018.

Raspadskaya mine roof collapse halts production, kills one

PJSC Raspadskaya's flagship Raspadskaya coal mine in southern Siberia suspended operations after a roof collapse killed one person, Interfax reported. The mine's tunnels are being assessed, and a commission is looking into the cause of the collapse, according to a representative of the Kemerovo regional government's coal industry department.

Barrick Gold's takeover offer undervalues Acacia Mining, analysts say

Analysts told S&P Global Market Intelligence that Barrick Gold Corp.'s offer to buy the rest of Acacia Mining PLC's shares for US$285 million was not in the best interest of shareholders in the London-listed company and unnecessarily undervalued the shares.

BASE METALS

* Capstone Mining Corp. agreed to sell its wholly owned Minto copper-gold mine in Canada's Yukon territory to Pembridge Resources PLC for up to US$20 million. The company will use the proceeds of the sale to reduce outstanding debt under its credit facility.

* Aurelia Metals Ltd. suspended work on the pre-feasibility study at its Nymagee copper project in New South Wales, Australia, after receiving unsatisfactory results from recent metallurgical test work. Meanwhile, the cost estimate for circuit upgrade at the Peak lead-zinc plant in New South Wales grew to about A$53 million from A$35 million, including contingency, after a review of the capital schedule.

* Aurubis AG secured a contract for the 10-year supply of copper concentrates from the second phase of Teck Resources Ltd.'s Quebrada Blanca joint venture project in Chile.

* Clean TeQ Holdings Ltd. started a process to divest up to a 50% interest in its Clean TeQ Sunrise nickel-cobalt scandium project in New South Wales, Australia.

* United States Antimony Corp. is expanding its antimony smelter in Coahuila, Mexico, to handle production increases from its Wadley and Sierra Guadalupe mines.

* Lundin Mining Corp. took a 14.3% stake in PolarX Ltd. through a A$4.3 million investment, with an option to acquire a 51% stake in the Stellar copper-gold project in Alaska.

PRECIOUS METALS

* Ximen Mining Corp. is acquiring certain crown-granted mineral properties covering the historical Cariboo-Armelia gold mine in southern British Columbia by issuing 212,888 shares.

* Chaarat Gold Holdings Ltd.'s updated bankable feasibility study for its Tulkubash oxide gold project, part of its namesake property in Kyrgyzstan, increased the ore reserve by 39% to 22.2 million tonnes at 0.92 g/t gold over a 5.3-year initial mine life. The posttax net present value, discounted at 5%, stands at US$70 million, with a 20% internal rate of return.

* The construction of Victoria Gold Corp.'s Eagle gold mine, part of the Dublin Gulch property in Canada's Yukon territory, is nearing completion ahead of schedule, and first gold pour is expected in September.

* Barrick Gold President and CEO Mark Bristow and Zijin Mining Group Co. Ltd. Senior Vice President George Fang met with new Papua New Guinea Prime Minister James Marape to discuss the proposed 20-year extension of the special mining lease for the Porgera gold mine.

* Gold-miner Semafo Inc. boosted planned exploration spending on a prospect in Burkina Faso from US$3 million to US$11 million after reporting a gold discovery on its Bantou property, part of the broader Kongolokoro concessions, according to an exclusive S&P Global Market Intelligence report.

* The US$2 billion Yanacocha Sulfuros project — part of the Yanacocha gold joint venture between Newmont Goldcorp Corp., Cia. de Minas Buenaventura SAA and Sumitomo Corp. — reached the feasibility stage. The operation's construction set to begin in 2020, upon securing funding, Gestión reported, citing general manager Isidro Oyola.

* NTM Gold Ltd. expanded the Redcliffe gold project in Western Australia to over 300 square kilometers after securing a 116-square-kilometer tenement, dubbed exploration license E37/1356, which abuts existing tenements to the east.

BULK COMMODITIES

* South32 Ltd. reportedly shortlisted Exxaro Resources Ltd., Seriti Resources Pty. Ltd. and newly formed consortium Sibambene Coal for the sale of its South African coal operations, know as South Africa Energy Coal, miningmx reported. The bidding rules bar other companies from commenting on the sale process.

* Zenith Minerals Ltd. is divesting its fully owned Mount Alexander magnetite iron project in Western Australia to private Australian company Mt Alexander Iron Ore Pty. Ltd. for about A$2.8 million.

* China's Iron and Steel Association expects steel demand in the second half to be weak and said mills need to be rational when increasing production, Reuters reported. "A big risk embedded in China's steel industry is the increase of potential enormous production capacity ... thus we urge steel makers to rationally increase output," said the association's deputy director, Wu Jingjing.

* Adani Enterprises Ltd.'s proposed Carmichael coal mine in Australia may hire as few as 800 workers once it is operational, raising questions of whether the environmental cost of its approval is worth the employment benefits, The Australian reported.

* S&P Global Ratings assigned a BBB- rating to iron ore transshipping terminal Mineral Logistics' proposed US$483 million in senior secured notes due August 2037, which incorporates a loan provided by Corporacion Navios SA. The rating agency put a negative outlook on the notes, reflecting a chance of a downgrade due to key customer Vale International SA's deteriorating credit quality in the next 24 months, which will depend on the credit quality of parent Vale SA.

* Incitec Pivot Ltd. reached agreements with multiple parties to allow manufacturing operations at its Gibson Island plant to continue through Dec. 31, 2022.

* Brazilian antitrust regulator Cade approved Vale's US$550 million acquisition of a 77% interest in Ferrous Resources Ltd. from Icahn Enterprises LP, despite the deal facing antitrust complaints, Valor Economico reported. The regulator greenlit a proposed joint venture between ArcelorMittal unit ArcelorMittal Brasil SA and engineering and construction company Piacentini, according to a separate report by the daily.

* Brazil's iron ore export volumes in May dropped 20% year over year to 29.02 million tonnes from 34.62 Mt in the year-ago period as Vale was forced to close some operations this year in the wake of the fatal Feijao dam disaster, Fastmarkets MB reported, citing the country's economic ministry.

* Ferroglobe PLC reached a definitive agreement with TPG Sixth Street Partners for the €170 million sale of its FerroAtlantica SAU subsidiary, which owns 10 hydroelectric power plants and the Cee-Dumbría ferroalloys plant in Spain.

* A joint venture between Nucor Corp. and Duferco Participations Holding SA plans to build a €150 million steel-beam rolling mill in Italy that will have an annual capacity of 1 million tonnes, Fastmarkets MB reported.

* The Federal Court of Australia approved a previously announced acquisition by CD Capital Natural Resources Fund III LP of a 67% stake in Verdant Minerals Ltd. for about A$40.5 million, with the scheme of arrangement now in effect.

* ArcelorMittal South Africa Ltd. may be fined by up to 15 million South African rand over alleged breaches of its emissions license at its Vanderbijlpark steelworks site. The company is facing two charges for conducting unlicensed activities and one charge for exceeding minimum emission standards.

* A proposal for a board spill of Aguia Resources Ltd., which was requested by a group of shareholders representing 5.3% of the explorer, was rejected.

SPECIALTY

* Western Australian Minister for Mines Bill Johnston will meet Malaysian Energy Minister Hon Yeo Bee Yin on June 20, and they are expected to discuss the rare earths waste-storage plan for Lynas Corp. Ltd., Reuters reported, citing a state mining spokesperson. Malaysian Prime Minister Mahathir Mohamad recently said he plans to allow the company's Gebeng processing plant to keep operating in the country.

* Tronox Holdings PLC will repurchase up to US$100 million of its shares.

* Rio Tinto must delay the development of its Jadar lithium project in Serbia as it may exacerbate a slump in prices due to a projected oversupply in 2025, a year after the project is scheduled for first production, the Australian Financial Review reported, citing investment advisory firm Ord Minnett. The project could also threaten the mining major's cash flows from boric acids, a byproduct of Jadar, as Rio Tinto is already a big player in that market.

* A scoping study for Neometals Ltd.'s lithium-ion battery recycling plant in Western Australia outlined a pretax net present value, discounted at 12%, of US$220 million and a 72% internal rate of return over a 10-year plant life. Initial capital expenditure is pegged at US$66 million, with payback in under two years.

* Anson Resources Ltd.'s share price surged 47% after the company announced that it produced about 1 kilogram of battery-quality lithium carbonate from brine sourced from its Paradox project in Utah.

* Kenmare Resources PLC approved the relocation of the wet concentrator plant to the Pilivili ore zone of the Moma titanium mine in Mozambique following a positive definitive feasibility study, which estimated a capital cost of US$106 million.

INDUSTRY NEWS

* Minerals exploration expenditure in Australia for the March quarter increased 13% year over year to A$497.5 million, Mining Weekly reported.

* Zimbabwe's mineral-backed loans may complicate the country's future negotiations with foreign creditors to restructure its US$8.8 billion debt, Reuters reported, citing Gene Leon, International Monetary Fund's mission chief to Zimbabwe.

* U.S. Department of Labor auditors called on Congress to review the Mine Safety and Health Act of 1977 to ensure the federal agency that oversees mine safety has clear authority to take actions to protect miners' lives.

* Zambia started rationing electricity to businesses except for miners, which signed separate agreements with state power utility Zesco, Reuters reported.

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This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.

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