TOP NEWS
Indian state moves to permanently close Vedanta's Tuticorin copper smelter
India's Tamil Nadu state ordered the permanent closure of Vedanta Ltd.'s Tuticorin copper smelter following violent protests last week that killed 13 people, Reuters reported. "We have taken a decision to permanently shut down the plant and today issued government orders to do the same," said Edappadi Palaniswami, Tamil Nadu's chief minister. Vedanta called the closure an "unfortunate development" and said it will review the order.
Fortescue greenlights US$1.28B Eliwana iron ore project development
Fortescue Metals Group Ltd.'s board gave the go-ahead for the approximately US$1.28 billion development of the Eliwana project, part of the Western Hub iron ore project in Western Australia, which includes the development of a 143-kilometer railway, a new dry ore processing facility and other associated infrastructure. Western Australian Premier Mark McGowan welcomed the final investment decision, saying that the project has the potential to create up to 1,900 construction jobs and provide 500 ongoing jobs once in operation.
BHP, Queensland reach settlement over A$329M coal royalty dispute
BHP Billiton Group and the Queensland Treasury reached an "agreement in principle" over royalty payments of about A$329 million from coal exported from the state, The Sydney Morning Herald reported. A barrister representing BHP said "considerable progress has been made." The Queensland Supreme Court adjourned the trial until May 29.
DIVERSIFIED
* Chinese state-owned copper and aluminum producers Tongling Nonferrous Metals Group Co. Ltd. and Aluminum Corp. of China Ltd. were among the companies that traded around 477 million yuan worth of metal on the Shanghai Futures Exchange's new physical trading platform in its launch, Reuters reported.
BASE METALS
* An employee was killed after a mining-related accident occurred May 25 at Vedanta Zinc International Group's Gamsberg zinc mine in South Africa, Mining Weekly wrote. All work at the mine has been suspended amid ongoing investigations.
* New Century Resources Ltd. awarded a five-year, A$110 million contract to CIMIC Group's Sedgman Pty. Ltd. to operate and maintain its Lawn Hill processing plant, concentrate pipeline and Karumba Port facility, as the company looks to restart its Century mine in Queensland, Australia.
* As part of its any and all US$450 million buyback of its 7.875% senior secured notes due 2022, Lundin Mining Corp. said only US$10.8 million in principal amount of the notes had been validly tendered and accepted for purchase.
* Superior Resources Ltd. resumed control of the Nicholson zinc project tenements in northwest Queensland, Australia, after Teck Australia Pty. Ltd. withdrew from an earn-in agreement.
PRECIOUS METALS
* Global production of gold rose quarter over quarter in the first quarter of 2018. Miners ramped up production 2% compared with the same period last year, supporting our view that global production will rise for a fourth consecutive year in the full year, according to the Metals & Mining Research team at S&P Global Market Intelligence.
* Pan American Silver Corp. said that certain activities at its Dolores silver mine in Mexico will be reduced as a safety measure after recent security incidents along the access roads used to transport personnel and materials to and from the mine. The company noted that the mine site remains secure and that it is working with authorities to provide safe access to the mine.
* Yue Da Group (H.K.) Co., Ltd. agreed to acquire a Yue Da Mining Holdings Ltd. unit for 140 million Chinese yuan. The subsidiary's principal asset is a 70% stake in Tong Ling Guan Hua, which holds gold mining rights in China.
* X-Terra Resources Inc. signed an agreement with Greg Exploration Inc. to acquire a 50% interest in the Storm Lake gold property in Quebec.
* Australia's gold output increased to about 74 tonnes in the first quarter from 71 tonnes in the same period of 2017, Mining Weekly wrote, citing data from mining consultant Surbiton Association.
* Orinoco Gold Ltd. suspended all milling and processing activities in Brazil, where it operates the Cascavel gold mine, in light of a nationwide truck strike in the country, started May 21, which has left the state of Goias, as well as other states, without a supply of diesel oil.
* Reliant Gold Corp. is seeking a change of business from being a junior mineral explorer to an active real property acquisition, management, and rental income firm, operating principally in Ontario.
BULK COMMODITIES
* ArcelorMittal's ArcelorMittal South Africa Ltd. unit entered into a memorandum of understanding to sell its 50% stake in steel trading and shipping company Macsteel International Holdings BV, or MIHBV, to joint venture partner Macsteel Holdings Luxembourg SARL for US$220 million.
* National Mineral Development Corp. Ltd. recorded a stand-alone profit of 11.06 billion Indian rupees for the fourth quarter of its fiscal 2018, representing a 116% increase on a yearly basis, while revenue rose 35% to 38.83 billion rupees, The Hindu reported. Iron ore output reached 11.4 million tonnes, up 9% on a yearly basis, while sales climbed 8% to 10.5 million tonnes.
* Alcoa Corp. is assessing the impact of a temporary power outage to the timeline and overall process of restarting its Warrick aluminum smelter in Indiana. The power outage led the company to shut down one of the three potlines that are part of the restart process for safety reasons and to protect the assets.
* China's National Development and Reform Commission approved the Zhongyu coal mine project in Shanxi province's Huodong region to swap outdated capacity, China Securities Journal reported. The 7.7 billion Chinese yuan project will have an annual production capacity of 5 million tonnes, Reuters wrote.
* German Economy Minister Peter Altmaier said Germany is eager to end the dispute between the U.S. and the European Union over the former's tariffs on steel and aluminum imports, and that he is set to discuss the matter with European Trade Commissioner Cecilia Malmstrom and U.S. Commerce Secretary Wilbur Ross at an upcoming meeting of the Organization for Economic Cooperation and Development, or OECD, Reuters reported.
* Fortescue, which in 2017 vowed to increase its average iron grade to above 60% on the back of China's growing demand for the high-grade raw material, would start selling its premium product before July 2019, The Australian Financial Review reported, citing CEO Elizabeth Gaines.
* AltaSteel Ltd. and the United Steelworkers Local 5220 reached a tentative agreement, averting a strike that was scheduled to start May 28 at the company's operations in Edmonton, Alberta. The workers have been working without a contract since the previous agreement expired July 31, 2017.
* Stanmore Coal Ltd. declared a maiden JORC probable reserve of 12.9 million tonnes at its Isaac Plains underground mine in Queensland, Australia.
* Aluminum Corp. of China Ltd. inked a deal to expand its strategic cooperation with China's Yunnan province.
SPECIALTY
* Galaxy Resources Ltd. signed a nonbinding agreement to sell a package of tenements located on the northern area of the Salar del Hombre Muerto in Argentina to POSCO for US$280 million. The tenement package is situated to the north of Galaxy's Sal de Vida lithium project.
* Final bids for Kimberley Diamonds Ltd.'s Lerala diamond mine in Botswana will close May 30, Mining Weekly reported. GoIndustry DoveBid South Africa will be facilitating the sale of the asset via an online auction.
* Argosy Minerals Ltd. will incorporate the Salonix, Mina Reina, and Mina Tincal properties, into the larger Rincon project in Argentina held by 77.5%-owned joint venture company Puna Mining S.A., following the outright acquisition of the properties previously secured via option deals for about US$2.6 million.
* Birimian Ltd. reduced C1 costs for the Goulamina lithium project in southern Mali by around 5% to between US$280 per tonne and US$285 per tonne.
* Mineral Resources Ltd. estimated the construction for the 2x 28,000 tonnes lithium hydroxide modules at its Wodgina mine will cost approximately US$300 million per module, confirming media reports and subject to a feasibility study.
* Altura Mining Ltd. extended the mine life of its Pilgangoora lithium project in Western Australia's Pilbara region by at least two years following the completion of a revised ore reserve and resource estimate.
* Lithium Power International Ltd. said Chile's Constitutional Court has referred legal proceedings over the validity of Codelco's overlapping claims held by its Minera Salar Blanco SpA within the Salar de Maricunga area back to an appeals court, after ruling that an article being used by Codelco was not a constitutional matter.
INDUSTRY NEWS
* Macquarie Group is poised to sell its mining services business MST Global to Sydney-based Odyssey Private Equity for about A$100 million, The Australian Financial Review's Street Talk blog reported.
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