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Trafigura blamed for Nyrstar's fall; Antofagasta, Barrick avert Zaldivar strike

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Trafigura blamed for Nyrstar's fall; Antofagasta, Barrick avert Zaldivar strike

TOP NEWS

Trafigura taken to court on allegations of causing Nyrstar's collapse

Trafigura Group Pte. Ltd. is accused by Nyrstar NV shareholders 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, Bloomberg News reported, citing a lawsuit filed in Belgium. A lawyer who claims to represent about 100 Nyrstar investors said the documents related to the case confirmed the shareholders' main suspicion that Trafigura was "in a position to exploit or make an abuse of its economic control."

Strike averted at Antofagasta, Barrick's Zaldivar copper mine by new labor deal

Compania Minera Zaldivar SA, a 50/50 joint venture between Antofagasta PLC and Barrick Gold Corp. in Chile, averted a strike at the Zaldivar copper operation after unionized workers approved a new three-year labor deal, Mining.com reported. The new deal, which was accepted by 53% of the unionized workers, offers a 1% salary readjustment plus a bonus of about US$11,943 per employee. The remaining 47% sought a bonus of over US$18,000 per worker, which was part of an earlier proposal by the union, according to the report.

First Quantum warns Zambia government tax changes may hit future expansions

First Quantum Minerals Ltd. is continuing to pile the pressure onto Zambia over its contentious new mining duties and increased royalties, linking them to potential expansions at its Kansanshi project and warning other African countries about the need for stability amid the lower grades and margins of copper deposits. The company wants to double the size of the flotation plant at Kansanshi's sulfide deposit at depth, but Director of Exploration Mike Christie warned that it needs a return on investment to do so. "If you change the royalty regimes to the point where the return just isn't there, then basically you'll just keep running that mine down over time."

BASE METALS

* Comet Minerals director Hugh Morgan said one of his companies developed a process to recover 100% of the contained nickel in the mineralization at its Titan project in Nigeria, The Australian reported. Morgan did not share details of the process but said it does not include using toxic chemicals such as cyanide and may not require tailings dams.

* PJSC Norilsk Nickel Co. signed a cooperation agreement with Russia's Krasnoyarsk region and the country's industry and trade ministry for the company's investment and environmental projects, including a US$2.5 billion effort that will reduce sulfur dioxide emissions in the Norilsk industrial area by 75% compared to 2017 levels by 2023.

* Metals X Ltd. said fiscal 2019 tin production at its 50%-owned Renison operation in Tasmania, Australia, increased 5.7%, with a record quarterly production of 2,061 tonnes of tin during the March quarter.

* Some Cobalt 27 Capital Corp. shareholders have raised concerns against Pala Investments Ltd.'s proposed C$501 million takeover due to various issues such as the size of executive compensation in the deal and the timing of the sale, which came as cobalt prices bottomed out, Financial Post wrote.

* THEMAC Resources Group Ltd. said the U.S. Bureau of Land Management approved a mine alternative from the final environmental impact statement for its Copper Flat project in New Mexico, while an appeal on the issuance of a groundwater discharge permit for the property was dismissed.

PRECIOUS METALS

* Josemaria Resources Inc. spinoff NGEx Minerals Ltd. entered into an option to earn a 100% interest in the Valle Ancho, Interceptor and Filo de las Vicunas properties, collectively known as the Valle Ancho gold project in Argentina. The company can acquire a 100% interest in the project by spending C$8.2 million on it over two years.

* Matador Mining Ltd. is planning to execute its Cape Ray gold project in Newfoundland and Labrador in early 2022 and start production the following year. The company said activities by the previous owners allowed it to effectively pick up the environmental assessment work at the project well into the process.

* AEX Gold Inc. was granted the exclusive exploration rights under a new license composed of five sub-areas covering 266 square kilometers within the Nanortalik gold belt in South Greenland. The company is looking into reconnaissance prospecting and geological mapping this year and desktop work to plan larger exploration programs in the 2020 field season.

* Victoria Gold Corp. said commissioning of its Eagle gold project is complete and first gold pour is scheduled for Sept. 17. Construction was completed in July, a month ahead of schedule.

* Orla Mining Ltd. awarded the engineering, procurement and construction management contract for its Camino Rojo oxide gold project Mexico's Zacatecas state to M3 Engineering & Technology Corp.

* Hexagon Resources Ltd. entered into a binding agreement to purchase a 75% interest in a new exploration license contiguous to its Halls Creek gold project in Western Australia for A$20,000. The company said the new tenement will fill a gap in its tenure of permits prospective for gold and gold-copper mineralization.

* Pure Gold Mining Inc. awarded the surface engineering and procurement contract and the underground mine design engineering contract and kicked off construction at its Madsen Red Lake gold mine in Ontario.

* Geopacific Resources Ltd. received an extension to complete construction and commissioning of the processing facility at its Woodlark gold project in Papua New Guinea to July 5, 2022, from the previous deadline of January 2020.

* Big River Gold Ltd. engaged Araújo Fontes as finance advisers and arrangers to assist with securing finance to develop its Borborema gold project in Brazil's Rio Grande do Norte state. A definitive feasibility study for the project is on track for completion in the fourth quarter.

* Great Boulder Resources Ltd. signed an agreement with Mithril Resources Ltd. to acquire up to an 80% stake in the Lignum Dam gold-nickel project near its Whiteheads gold project in Western Australia by spending A$1 million on exploration over four years.

* Bardoc Gold Ltd. is acquiring the Mayday and North Kanowna Star gold projects located east of its flagship Bardoc gold project in Western Australia for 12 million shares and a production royalty of A$15 per ounce.

BULK COMMODITIES

* Alcoa Corp. is implementing a new operating model, effective Nov. 1, under which it will eliminate its business unit structure and consolidate sales, procurement and other commercial capabilities at an enterprise level. The executive team will be streamlined from 12 to seven direct reports to the CEO.

* MacDonald Mines Exploration Ltd. will expand its SPJ iron-oxide-copper-gold property in Ontario by purchasing 151 contiguous claims in the Wanapitei Lake area. The company will pay claim owner Terry Loney C$80,000 cash and issue 750,000 shares and will grant a 2% net smelter return royalty, half of which can be bought back at any time for C$1.0 million.

* Kentucky coal production and employment have significantly declined in recent years, but political experts in the state said the commodity could still play an important role in determining whether Senate Majority Leader Mitch McConnell is able to keep his seat in 2020, according to an exclusive S&P Global Market Intelligence report.

* Rhino Resource Partners LP agreed to sell certain assets relating to its Pennyrile mining complex in Kentucky to Alliance Coal LLC. The transaction is expected to be complete in the fourth quarter. The company said it stopped coal production at the Riveredge mine at Pennyrile and will continue to process the remaining raw coal inventory at the site.

* Australian Potash Ltd. signed a joint cooperation agreement with the Mid West Ports Authority to discuss the possible use of the Geraldton Port for the company's Lake Wells sulfate of potash project in Western Australia.

SPECIALTY

* The Nuclear Energy Institute urged the Trump administration to revive the domestic uranium industry by authorizing funds through the 1950 Defense Production Act, a Cold War-era rule, to procure domestic fuel for defense purposes and boost federal reserves of uranium for nuclear power utilities, Reuters reported, citing a letter by the group.

* Oro Verde Ltd. secured an initial 20% interest in Ugandan company Rwenzori Rare Metals Ltd., which owns the Makuutu rare earths project. The company is earning up to a 60% direct interest in Rwenzori.

* Mkango Resources Ltd. appointed SENET as lead engineer and project manager to complete the feasibility study at its Songwe Hill rare earth project in Malawi. The study is funded by Mkango's strategic partner, Talaxis Ltd., a wholly owned subsidiary of Noble Group Ltd.

* Pensana Metals Ltd. delayed reporting a pre-feasibility study for its Longonjo rare earth project in Angola to mid- to late October, from late September, due to delays in shipping samples for mineralogical studies and metallurgical test work.

* A scoping study for Diatreme Resources Ltd.'s Galalar silica project in Queensland, Australia, outlined a pretax nominal net present value of A$231 million, a 150% internal rate of return and an eight-month payback period.

* Botswanan President Mokgweetsi Masisi told Bloomberg TV at the World Economic Forum on Africa in Cape Town that the government and Anglo American PLC unit De Beers SA are in "cordial" talks to renew a diamond sales agreement that expires in 2020.

* Rainbow Rare Earths Ltd. is looking to increase annual production of rare earth oxides at its Gakara rare earths mine in Burundi to 10,000 tonnes from the current 1,100 tonnes to meet increasing demand, according to CEO George Bennett.

INDUSTRY NEWS

* Canada's new environmental permitting process went into effect at the end August but has yet to attract volunteers as the industry grapples with uncertainty, industry experts and watchdogs said, according to an exclusive S&P Global Market Intelligence report.

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