A group of about 100 Nyrstar NV shareholders are seeking damages of €1.48 billion from Trafigura Group Pte. Ltd. after the latter secured a 98% stake in the former's assets as part of restructuring of the Belgian company, Reuters reported. In a lawsuit filed in Belgium, the minority shareholders accused Trafigura of using its influence to sway the zinc refiner's board into making lopsided deals that drained cash from Nyrstar and subsequently led to its collapse.
Ontario court approves C$3B lawsuit against Barrick Gold
The Ontario Superior Court of Justice approved a proposed C$3 billion securities class action against Barrick Gold Corp. by the Local 675 pension's trustees related to the company's Pascua-Lama gold-copper project, located on the border of Chile and Argentina, Mining.com reported. The lawsuit alleges that the company misrepresented its environmental disclosures about the project when it was under construction in an environmentally sensitive area of the Andes mountain range.
S&P Global Ratings: European steelmakers face souring business cycle
European steel producers should not expect a quick rebound in prices to rescue profits, according to a recent S&P Global Ratings overview of the sector. After three years of strong performance, Ratings said the business cycle had soured for European steel producers with prices for steel products along with margins and EBITDA retreating to 2016 levels. The rating agency also pointed to deep-seeded issues for European steelmakers.
* Mark Freeman, the CEO of the Australian Foundation Investment Company, one of Rio Tinto's biggest Australian shareholders, backed the mining company's CEO Jean-Sebastien Jacques in finding a way through its troubles in Mongolia, Australian Financial Review reported. Freeman said that "Mongolia was always going to be a tricky place to invest" after Rio Tinto's Oyu Tolgoi copper mine faced management shortcomings and geological problems causing massive cost and schedule brownouts.
* Magmatic Resources Ltd. will no longer proceed with the proposed demerger of its four East Lachlan projects into Australian Gold and Copper Limited, a decision driven by investors reassessing the region, following the success of Alkane Resources Ltd. at Boda and feedback from Magmatic shareholders. The company intends to develop a new exploration plan to refocus on the East Lachlan projects.
* Navarre Minerals Ltd. is undertaking a review of its Stavely Arc mineral properties in Victoria, Australia, looking to restart exploration following a recent outstanding copper-gold discovery by joint venture partner, Stavely Minerals Ltd. on the adjoining Thursdays Gossan prospect, part of the Stavely project.
* Cobalt 27 Capital Corp.'s shareholders approved Pala Investments Ltd.'s improved offer to acquire all the company's issued and outstanding shares. Each Cobalt 27 shareholder will receive a total consideration of C$5.92 per share, comprised of C$4.00 in cash and 1 share of Nickel 28 Capital Corp. with an implied value of C$1.92 per share.
* Mining Industry Indonesia, formerly PT Inalum, entered an initial deal to purchase a 20% stake in Vale SA's majority-owned nickel producing unit PT Vale Indonesia Tbk., Reuters reported. Mining Industry Indonesia switched its name from PT Inalum in August to differentiate its holding company function from the smelting operations.
* Environmental remediation expert Alex Mojon claimed finding evidence that Metallurgical Corp. of China Ltd. was not managing waste at the Ramu nickel-cobalt plant in Papua New Guinea, adding that lab results from the recent spill were "alarming" as all samples were found to have toxic levels of heavy metals contamination, Reuters wrote, citing a local media report.
* Teck Resources Ltd. will suspend operations at its Carmen de Andacollo copper operations in Chile during a strike starting Oct. 14. The Teck Carmen de Andacollo Workers Union, which represents 473 workers at the operation, gave notice of its plans to commence strike action after it failed to finalize a collective bargaining agreement with the company.
* MMG Ltd. may have to halt operations at its Las Bambas copper mine in Peru within one week due to the ongoing protests, which have blocked access roads to the area, Reuters reported, citing the mine's vice president of finances, Alvaro Ossio.
* Unionized workers at Antofagasta PLC's Antucoya copper mine in Chile will start a strike Oct. 16 after a contract negotiation failed, Reuters reported, citing union President Cesar Garcia.
* Independence Group NL agreed to earn a 75% joint venture interest in Apollo Consolidated Ltd.'s early-stage Louisa nickel project in Western Australia by spending at least A$3.4 million over four years.
* A showdown between Metals X Ltd. and its biggest shareholder APAC Resources Ltd. is looming over the future of the Nifty copper mine in Western Australia as possible buyers circle the asset, The Australian reported. The two companies are at odds over the project's performance and APAC's demand that its nominee, executive director Brett Smith, be given a seat on the Metals X board.
* Clean TeQ Holdings Ltd. terminated its agreement with Metallurgical Corp. of China to develop the former's Sunrise nickel-cobalt project in New South Wales, Australia, due to disagreements on design, procurement, project execution and contracting matters.
* Ongoing civil unrest in Ecuador has started to impact activities on Lundin Gold Inc.'s Fruta del Norte gold project. The company has curtailed some activities in certain areas of the project.
* Catalyst Metals Ltd. finalized joint ventures with Hancock Prospecting Pty. Ltd. unit Gold Exploration Victoria Pty. Ltd. on the Four Eagles gold project in Victoria, Australia, to carry out exploration on the Boort and Macorna exploration licences.
* Omineca Mining & Metals Ltd. started preparing for a dewatering program at its Wingdam gold project in British Columbia, which would decrease the dewatering time from the expected three to four months down to three to four weeks.
* Argonaut Gold Inc. temporarily suspended operations at its La Colorada gold mine in Mexico after two workers died as a result of a high voltage accident while performing maintenance on a haul truck. Operations have since resumed.
* Barrian Mining Corp. staked an additional 40 contiguous claims at its Troy Canyon gold and silver project in Nevada, tripling the size of the project to 59 contiguous claims totaling 493.30 hectares from 19 claims covering 158.56 hectares.
* Over the past year, seven U.S. coal producers have filed for chapter 11 bankruptcy, including Westmoreland Coal Co., Cloud Peak Energy Inc., Blackhawk Mining LLC and Blackjewel LLC, as coal faces competition from natural gas as well as renewable sources of energy, The Wall Street Journal reported.
* Guinea and Liberia entered an agreement allowing several Guinean mines, including the Nimba iron ore project, to export through Liberia, Reuters reported. "The mining projects in question are near the border with Liberia and cannot be profitable if they export through Guinea's coast," Guinea's mines Minister Abdoulaye Magassouba said.
* China Vanadium Titano-Magnetite Mining Co. Ltd. progressively resumed operations at the Maoling-Yanglongshan iron ore mine in Sichuan, China, as access to Wenchuan County has been substantially restored.
* Sirius Minerals PLC entered into an exclusive 10-year agreement with Qatar Chemical and Petrochemical Marketing and Distribution Co. (Muntajat) Q, to sell and distribute POLY4, the trademarked name for Sirius' flagship polyhalite fertilizer product. The agreement takes Sirius' aggregate peak sales volumes to 13.8 million tonnes per annum and peak contracted production in any one year to 12.2 mtpa, excluding options.
* Two gunmen attacked Ricardo Rojas, the vice president of the union that operates at Drummond Co. Inc.'s El Descanso open-pit coal mine in Colombia, Mining.com reported. Rojas survived the attack unharmed.
* Metro Mining Ltd.'s definitive feasibility study for the stage 2 expansion of the Bauxite Hills project in Queensland, Australia, confirmed the benefits of expanding to an annual rate of 6.0 million wet tonnes. The capital cost is estimated at A$51.4 million, with project payback in less than 18 months.
* The Indonesian government is considering a proposal by its West Kalimantan provincial government for a change in bauxite royalty rules following a 204% jump in production in the 18 months ended June, Reuters reported, citing a statement issued by the coordinating ministry for maritime affairs. Authorities currently charge miners 3.75% of revenue from bauxite sales.
* Latitude Consolidated Ltd. received a notice from the Ministry of Mines & Mining Development in Gwanda, Zimbabwe, that it intends to cancel the certificates of registration issued for the claims over its Mbeta lithium project, saying the mine was registered on ground not open to prospecting and pegging. The company said it does not operate a mine on the claims and considers the proposed cancellation to be illegal.
* Two federal lawmakers from Arizona disagreed on whether current mining practices on uranium pose a health threat. U.S. Rep. Raul Grijalva, the Democratic chairman of the House Natural Resources Committee, told S&P Global Market Intelligence that the effects of uranium contamination have a "long shelf life" and that the federal government should be thinking about investing in the people suffering as a result rather than planning the next spot to "sink a new mine." Republican U.S. Rep. Paul Gosar, chairman of the Congressional Western Caucus and member of the Natural Resources Committee, said in a statement that today's uranium mining meets new Occupational Safety and Health Administration and mine safety laws and "does not present health risks."
* Paladin Energy Ltd. estimated an initial capital of US$80 million to restart its flagship Langer Heinrich uranium project in Namibia to production levels of about 5.2 million pounds per annum.
* Vast Resources PLC will sign a joint venture agreement with Zimbabwe Consolidated Diamond Co. for diamond exploration and mining in eastern Zimbabwe, Reuters reported, citing Mines Minister Winston Chitando.
* Bacanora Lithium PLC received about £22 million in funds from Ganfeng Lithium Co. Ltd. in exchange for a 29.99% equity interest in the company and a 22.5% joint venture investment directly in the Sonora lithium project in Mexico. Ganfeng plans to proactively advance the Sonora project during the second half this year.
* Australian Vanadium Ltd. is confident that the federal government's recognition of its Gabanintha mine has set up the project for success, The Sydney Morning Herald reported, quoting the company's managing director Vincent Algar.
* Sagon Resources Ltd. executed a native title heritage protection and mineral exploration agreement with the Kimberley Land Council over the Jaru Lands in East Kimberley, where the Cummins Range rare earths project is located.
* WestStar Industrial Ltd.'s engineering contractor business SIMPEC was awarded a new contract amounting to about A$5 million for Tianqi Lithium Corp.'s LHPP1 process plant in Kwinana, Western Australia.
* Queensland will employ more mine inspectors and another chief mines inspector, The Sydney Morning Herald reported, citing Mines and Natural Resources minister Anthony Lynham. The statement came as Lynham talked about progress in Queensland's mine safety reset, following six deaths in 12 months at mines and quarries in the state.
* The Philippines' Mines and Geosciences Bureau wants to transform its anti-illegal mining task force into a separate bureau, as the agency bats for more resources, manpower and leverage to fight illegal mining activities, BusinessMirror reported.
The Daily Dose has an editorial deadline of 7 a.m. London time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.