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In This List

BHP sells US onshore assets to BP, Merit for US$10.8B

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020

Report Outlooks of Lithium and Cobalt

Essential Metals & Mining Insights July 2020


BHP sells US onshore assets to BP, Merit for US$10.8B

TOP NEWS

BHP sells US onshore assets to BP, Merit for US$10.8B

BHP Billiton Group will get a total of US$10.8 billion from the sale of its oil and natural gas assets in the U.S. Oil and gas major BP PLC will acquire Petrohawk Energy Corp., the BHP subsidiary that holds the Permian Basin, Eagle Ford and Haynesville assets for US$10.5 billion. BHP's Fayetteville units BHP Billiton Petroleum (Arkansas) Inc. and BHP Billiton Petroleum (Fayetteville) LLC, meanwhile, will go to Merit Energy Co. unit MMGJ Hugoton III LLC in exchange for about US$300 million.

Newmont buying 50% stake in Galore Creek partnership; Q2'18 profit surges YOY

Newmont Mining Corp.'s second-quarter net income attributable to shareholders surged year over year to US$292 million from US$175 million. Additionally, Newmont agreed to acquire a 50% interest in the Galore Creek Partnership in British Columbia from Novagold Resources Inc. in a US$275 million deal. The transaction is expected to close July 27.

Teck closes sale of Waneta Dam interest to BC Hydro for C$1.2B

Teck Resources Ltd. closed the sale of its two-thirds interest in the Waneta Dam in British Columbia to BC Hydro and Power Authority for C$1.2 billion cash. Teck will record an after-tax gain of around C$820 million as a result of the sale, with no cash tax payable on the proceeds.

DIVERSIFIED

* Bankers Cobalt Corp. entered into an option with a private Namibian partner to acquire a 70% interest in the Kamanjab license in Namibia, which is prospective for base metals, precious metals and industrial metals.

BASE METALS

* Chilean mining union association Federación de Trabajadores del Cobre said that Codelco plans to undertake an additional 2,800 layoffs at the Chuquicamata copper mine, on top of the 1,700 dismissals previously announced as part of a plan to transform the open-pit mine into an underground operation, El Mercurio de Calama reported.

* Nevsun Resources Ltd. is on track to meet its full-year guidance, as zinc concentrate production in the second quarter increased to 51.3 million pounds, with copper concentrate output also rising to 8.6 million pounds.

* Minera Frisco SAB de CV's second-quarter copper output increased 42% yearly, while gold, silver, lead and zinc production marked yearly decreases of 35%, 21%, 8%, and 12%, respectively. Net sales also slipped 5% to US$187 million.

* Volcan Compañía Minera S.A.A.'s suspension of mining activity at its Animón and Islay mines, part of its Chungar zinc mine in Peru, since the start of the year on safety concerns resulted in a 14% drop in zinc production to 56,400 fine tonnes, with lead production similarly dropping 13% to 10,800 fine tonnes in the second quarter.

* S&P Global Ratings said its ratings and outlook on Lundin Mining Corp. were not affected by its formal offer to acquire Nevsun for C$4.75 per share.

* Xinjiang Xinxin Mining Industry Co. Ltd. expects to record a net profit of not less than 6 million Chinese yuan for the first six months of the year, from a net loss of 64.5 million yuan previously. Consolidated revenue is targeted at 866 million yuan.

* Round Oak Minerals Pty. Ltd. received approval from the state government of Victoria, Australia, for the reopening of a dormant copper-zinc mine, which is slated to generate more than 500 jobs, The Sydney Morning Herald reported.

* Vedanta Resources PLC's Zambian unit said that work at its Konkola copper mine's underground shaft four was suspended after a miner was killed in an accident, Reuters reported. The company will conduct an investigation into the incident.

PRECIOUS METALS

* Lonmin PLC's platinum production for its third quarter of its fiscal 2018, including its Pandora and bulk tailings retreatment operations, fell yearly to 165,991 ounces, from 169,820 ounces in the prior year, at a production cost of 11,781 South African rand per ounce. The drop was due a planned reduction of mining from generation one shafts as a result of closures.

* Yamana Gold Inc. swung to an attributable net income of US$18 million, or 2 cents per share in the second quarter, from a year-ago net loss of US$39.9 million, or 4 cents per share. Revenue climbed to US$431.5 million, from US$428.1 million previously. On a gold equivalent basis, Yamana raised its second quarter output to 240,271 ounces, due to higher than planned gold production.

* Eldorado Gold Corp. lifted its full-year gold production forecast to between 330,000 and 340,000 ounces from 290,000 to 330,000 ounces previously, mainly due to the improved production forecast for its Kisladag mine in Turkey. The company's gold production in the period surged 56% year over year to 99,105 ounces.

* Royal Bafokeng Platinum Ltd. anticipates a loss per share of between 13.5 cents and 10.5 cents in the first half.

* Regis Resources Ltd.'s group ore reserves as of March 31 increased 86% to 4.06 million ounces, while group mineral resources fell 2% to 7.86 million ounces.

* Detour Gold Corp. investor Paulson & Co. Inc. nominated a slate of eight directors to overhaul the explorer's board, Bloomberg News reported.

* Rift Valley Resources Corp. inked a new letter of intent for a business combination with Metrolink Solutions Inc. in a merger of equals.

* Jaxon Mining Inc.'s share price jumped over 31% on July 26 after the company announced the discovery of five major copper-gold mineralized trends within the Red Spring project area, part of the Hazelton silver-gold-copper project in British Columbia.

BULK COMMODITIES

* Analysts from major banks say BHP selling its U.S. unconventional oil and gas assets to BP for US$10.5 billion allows it to move on from an episode best left in the past, but one independent analyst who has compared the prices achieved per acre to the going rate when the Australian miner bought them says it has come off much worse.

* Noble Group Ltd. is projecting an overall net loss of approximately US$115 million to US$140 million in the second quarter, resulting from restructuring expenses and net finance costs. Meanwhile, the High Court of Singapore ruled in favor of Noble over a US$48 million case over the termination of former CEO Ricardo Leiman.

* Noble also said it will not make payments on July 30 over its US$1.18 billion in 6.75% fixed rate senior notes due 2020.

* Atlas Iron Ltd. declared that Hancock Prospecting Pty Ltd.'s all-cash takeover offer of 4.2 Australian cents per share became unconditional.

* Fortescue Metals Group CEO Elizabeth Gaines insisted that its acquisition of a 19.9% stake in Atlas Iron was a strategic investment, saying it took a position in the junior miner to ensure it had a "seat at the table," The West Australian reported.

* Vale SA CEO Fabio Schvartsman said a scarcity of the company's trademark top quality ore will shield it for the foreseeable future from the impact of a global trade war, which has hurt other minerals, Reuters reported. Separately, the mining major is considering the sale of noncore joint ventures as part of a plan to simplify its structure, Metal Bulletin reported.

* TimkenSteel Corp. booked a net income of US$8.4 million in the second quarter, increasing from US$1.3 million reported a year earlier. The company's net sales reached US$413.5 million against US$339.3 million last year.

* NV Bekaert SA's consolidated revenue increased 3% yearly to €2.15 billion in the first half, resulting from increased volumes, aggregate effect of passed-on wire rod price increases and price-mix boosting organic sales growth.

* Mexico's Compañía Minera Autlán S.A.B. de C.V. reported an EBITDA of US$25.9 million in the second quarter, marking a yearly decrease of 5.8%. The drop was attributed to increases in operating costs such as energy, and higher prices for importing manganese ore and coke. Sales, meanwhile, increased 12% US$101.1 million.

* IRC Ltd.'s second-quarter iron ore concentrate production increased 53% yearly to 580,933 tonnes, with iron ore sales increasing 47% to 555,677 tonnes, due to record monthly and production and sales volumes at the K&S mine in Russia.

* Mineral Resources Ltd. inked an option to earn up to a 50% joint venture interest in Brockman Mining Ltd.'s Marillana iron ore project in Western Australia.

* New Hope Group Co. Ltd. is exploring options to extend existing activities at its New Acland coal mine in Queensland, Australia, to save several hundred jobs at the site, The Australian reported.

* Brazilian authorities are studying the possibility of signing a social and environmental deal with Norsk Hydro ASA, Reuters reported. Prosecutors for the country's Para state said a deal being considered would include social and environmental obligations from them and from the company. The statement clarified that any such deal would not include a resumption of Alunorte's halted production.

SPECIALTY

* Hastings Technology Metals Ltd. inked an exclusive mandate with German bank KfW IPEX-Bank GmbH for the provision of up to A$250 million in senior debt facilities to finance the Yangibana rare earths project in Western Australia.

* Anglo American PLC unit De Beers SA expects to close its acquisition of Peregrine Diamonds Ltd. in a month to six weeks' time, Reuters reported. Peregrine owns the Chidliak diamond project in Nunavut, Canada.

* PepinNini Lithium Ltd. outlined an initial resource estimate for the Pular lithium brine project in Argentina's Salta province. The estimate includes 366,000 tonnes of lithium carbonate equivalent and 6.9 million tonnes of potash equivalent in the measured category and 113,000 tonnes of lithium carbonate equivalent and 2.2 million tonnes of potash equivalent in the inferred category.

* Northern Minerals Ltd. officially opened the pilot plant of the Browns Range heavy rare earths project in Western Australia's East Kimberley region. In a statement, the state government said that the project will be a "major job-creator" for the Kimberley region and Western Australia.

* Tungsten Mining NL signed a formal deal to acquire Vital Metals Ltd.'s Watershed tungsten project in Queensland, Australia, for A$15 million.

* Tando Resources Ltd. was granted the mining rights for the SPD vanadium project in South Africa. The company now plans to commence drilling there in August.

* Gem Diamonds Ltd. recovered a 100.5-carat, top white color Type IIa diamond from its Letseng mine in Lesotho, the 11th diamond of over 100 carats this year.

INDUSTRY NEWS

* Rio Tinto launched a partnership with the Regional Chambers of Commerce & Industry Western Australia, aimed at supporting and enhancing the capabilities of local businesses in the Karratha and the Pilbara inland regions.

* Tanzania plans to set up a minerals exchange by the end of the year as the East African looks to reap the benefits from its resources, Bloomberg News reported, citing Minerals Minister Angellah Kairuki.

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

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