trending Market Intelligence /marketintelligence/en/news-insights/trending/i-p_fuefdtoc2rosft7dyq2 content esgSubNav
In This List

Miners say DRC may lose US$3B in income, face legal action over new policy

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

Blog

Essential Metals Mining Insights November 2021

Blog

[Infographic]: 2021 World Exploration Trends


Miners say DRC may lose US$3B in income, face legal action over new policy

TOP NEWS

Miners flag US$3B in lost income for DRC over new policy

Mining companies warned the government of the Democratic Republic of the Congo that it could lose more than US$3 billion from existing copper, cobalt and gold projects over a decade and face legal action if it implements a new mining code, Bloomberg News reported. "There can be no ambiguity, from a governmental point of view, as to the intention of the mining companies to protect their rights" if the law is applied, a group representing mining majors including Glencore PLC, Randgold Resources Ltd., Ivanhoe Mines Ltd. and China Molybdenum Co. Ltd. said in a note to the government, which has not been made public yet.

Railway strike in Canada would be bad for business, miners warn

A railway strike stands to disrupt Canada's mining sector, one of its top customers, should it prove prolonged, halting the transport of bulk commodities such as potash and coal and cutting off supply of inputs like fuels and chemicals on which mines may depend. Key unions at Canadian Pacific Railway Ltd. gave notice May 26 they may walk off the job on May 29.

State agency cancels land allocation for Vedanta's Tuticorin copper smelter

Vedanta Ltd.'s land allotment for the expansion of its copper smelter in Tuticorin, India, was canceled by the state industries promotion corporation of Tamil Nadu. The cancellation comes a day after India's Tamil Nadu state ordered the permanent closure of the Tuticorin smelter following violent protests last week that killed 13 people. Bloomberg News reported that about half of the country's copper output will take a hit from the action, leading to higher import demand for the red metal.

DIVERSIFIED

* S&P Global Ratings raised its long-term issuer credit rating on commodities trader Glencore to BBB+ from BBB while keeping the outlook stable.

* Nutrien Ltd. plans to conduct a placement of up to all of its 20,166,319 B shares in Sociedad Quimica y Minera de Chile SA to Chilean investors, certain other non-U.S. persons and qualified institutional buyers. The placement will be conducted through a bookbuild auction on the Santiago Stock Exchange.

* BHP Billiton Group named Laura Tyler as asset president of its Olympic Dam copper-gold-uranium mine in South Australia, succeeding Jacqui McGill, The Australian Financial Review wrote. Tyler has also served as chief of staff to BHP CEO Andrew Mackenzie.

BASE METALS

* Vedanta is preparing to challenge an Indian state's closure of its Tuticorin copper smelter, but it will not proceed until tensions over protest-related deaths have eased, Reuters reported, citing sources.

* Canadian Zinc Corp. will seek shareholders' approval for a proposed restructuring, which will split the company into two separate entities, during the upcoming annual general and special meeting in June. One of the companies will be a publicly listed holding corporation to be named NorZinc Ltd., while the other will be a directly owned operating subsidiary.

* Avanco Resources Ltd. is suspending plant operations and most mining activities at its Antas copper mine as a response to the ongoing truck drivers' strike in Brazil. Additionally, the company's drilling program at the Pantera project is also suspended. According to Reuters, the Brazilian government offered new fuel subsidies in a bid to end the truckers' strike.

* Turquoise Hill Resources Ltd. CEO Jeff Tygesen will retire from the position, effective July 1.

* New Point Exploration Corp. secured an exclusive option to purchase the past-producing Majuba Hill copper project in Nevada for US$4.0 million and a series of minimum payments.

* Metalicity Ltd. agreed to sell the Admiral Bay, Napier Range and Emanuel Range zinc projects to TSX Venture Exchange-hopeful Kimberley Mining Ltd. for C$32.5 million in cash and shares.

* Bezant Resources PLC received approval from the Philippine government for the renewal of the mineral production sharing agreement for the Mankayan copper project in the country's Benguet province that is held through associate Crescent Mining and Development Corp.

* Greenfields Exploration Ltd. launched a crowdsourced equity sale priced at 12 cents apiece, targeting to raise up to A$4.9 million. The Perth-based company is a copper, cobalt and nickel play with a current focus on Greenland.

PRECIOUS METALS

* Newmont Mining Corp. agreed to sell its royalty portfolio to Maverix Metals Inc. in exchange for US$17 million in cash, 60 million common Maverix shares and 10 million warrants. The portfolio comprises 54 precious metals and industrial minerals royalties.

* Russia's largest gold miner, PJSC Polyus, secured a bilateral credit facility of US$70 million with ING bank that is due for repayment in 2023.

* Petropavlovsk PLC asked regulators to verify the identities of dissident shareholders that are calling for an overhaul of the miner's board and to take appropriate action on the matter, sources close to the company told Reuters.

* Capricorn Metals Ltd reported that its Karlawinda gold project in Western Australia marked a 25% increase in ore reserves relative to the maiden estimate, with reserves in the proven and probable categories rising to 28 million tonnes containing 892,000 ounces of gold.

* Gascoyne Resources Ltd.'s Dalgaranga project in Western Australia poured first gold ahead of schedule.

* Hummingbird Resources PLC said that at least three people were killed following a security incident at the Komana West deposit within the company's 80%-owned Yanfolila gold mine in Mali. The company said several individuals were trying to prevent the company from carrying out initial site preparation work at Komana West when the incident occurred.

* Rizal Resources Corp. said that an employee at its T'Boli gold mine in the Philippines was killed the day before in a rockfall that occurred at the mine during access rehabilitation works.

BULK COMMODITIES

* State-owned Coal India Ltd.'s attributable profit in the fourth quarter of its fiscal 2018 more than halved to 12.95 billion Indian rupees from 27.19 billion rupees a year ago, despite higher revenues in the period. The drop came amid a surge in total expenses to 277.57 billion rupees from 223.53 billion rupees as employee benefits expenses nearly doubled year over year to 166.54 billion rupees.

* A nine-week strike at Iron Ore Co. of Canada Inc.'s IOC mining operations in Labrador is coming to an end as unionized workers voted 79% in favor of a third offer. United Steelworkers representative Euclide Hache confirmed that USW Local 5795 and Local 6731 voted in favor of the offer. Rio Tinto, which is the majority owner of Iron Ore Co. of Canada, said the deal was "competitive," with better pension and medical benefits, and would boost local hiring. At the same time, Rio Tinto said there was "flexibility to be a sustainable and competitive business."

* Nippon Steel & Sumitomo Metal Corp., which purchased over A$2.5 billion worth of Australian coal in 2016, warned it would consider buying coal from other regions due to the looming shortfall of the commodity amid a dispute between Queensland and Aurizon, The Australian reported. Queensland Premier Annastacia Palaszczuk said she would "reassure the Japanese government their coal exports are secure" in her scheduled meeting with the country's steelmakers and Foreign Minister Taro Kono. Queensland exports around A$5 billion of coal to Japan each year.

* Yancoal Australia Ltd. made an early repayment of US$450 million in loans to Bank of China and China Construction Bank under its syndicated facility agreement, reducing its existing debt liabilities.

* China is mulling over a plan to purchase more coal from the U.S. in a bid to slash its US$375 billion merchandise trade deficit and ease the ongoing trade war between the two nations, Bloomberg News reported, citing people with knowledge of the matter.

* Britain's Royal Bank of Scotland joined a growing number of financial institutions that are moving away from coal after it announced that it will no longer directly finance new coal-fired power stations or thermal coal mines.

* Vale SA CEO Fabio Schvartsman said the ongoing strike by Brazilian truck drivers has had a minor impact on the company's operations in the country, Reuters and Metal Bulletin reported. Schvartsman added that the impact could worsen if the strike continues, and the company will have to reduce its production pace.

* A global aluminum producer raised premiums for metal deliveries to Japan for July to September and will charge US$159/tonne, 23% more than the current premium, Reuters wrote, citing four sources directly involved in pricing talks.

* South32 Ltd. agreed to purchase a 50% interest in, and operate, the Eagle Downs metallurgical coal project in Queensland, Australia's Bowen Basin from a subsidiary of China Baowu Steel Group Corp. Ltd for up to US$213 million.

* India's environment ministry said that state-controlled Rashtriya Ispat Nigam Ltd. expanded a steel plant without prior approvals, Reuters reported. In January, the company sought permission from the ministry to expand the plant's capacity to 6.3 million tonnes per annum from 4 million tonnes, but went ahead with the expansion without receiving clearance.

* Russian steelmaker PAO Severstal expects to deliver an additional 10% to 15% to its annual EBITDA over the next five years, resulting from operational improvements, customer care initiatives and an innovational transformation of the business.

* New Hope Corp. Ltd. booked a decline in its coal sales to 1,901 tonnes in three months to April, from 2,172 tonnes in the previous corresponding period, despite a rise in its coal production to 2,102 tonnes from 2,019 tonnes, Mining Weekly reported. The company attributed the drop in its coal sales to scheduled rail maintenance and rail outages in Queensland, Australia.

* European Trade Commissioner Cecilia Malmstrom said the U.S. is expected to put a cap on steel and aluminum imports from Europe even if it decides not to impose import duties, Reuters reported.

* The Canadian International Trade Tribunal launched a preliminary dumping inquiry into steel imports from China, South Korea and Vietnam to see whether the alleged dumping and subsidizing of certain steel products from the countries have harmed the local sector, Reuters wrote. The results of the probe are due July 24.

* AusQuest Ltd. and South32 Ltd. added a fourth exploration project in Peru to their strategic alliance, the former's Parcoy iron oxide-copper-gold project.

SPECIALTY

* AMG Advanced Metallurgical Group NV has temporarily shut down certain tantalum mining and processing operations in Brazil due to the ongoing national truckers' strike. The company does not expect a material financial impact from the strike at this stage.

* De Beers SA launched a new company, Lightbox Jewellery, that will market laboratory-grown diamond jewelry designs, Mining Weekly reported.

* Pilbara Minerals Ltd. posted a 36% increase from its January 2017 estimate in the total measured, indicated and inferred resource for its Pilgangoora tantalum-lithium project in Western Australia.

INDUSTRY NEWS

* Indian Trade Minister Suresh Prabhu told Reuters that the country is looking to secure gold and diamond mining rights in Russia's Far East region as it seeks to import gold and diamonds for value addition prior to export.

The Daily Dose has an editorial deadline of 7 a.m. Hong Kong 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.