TOP NEWS
Rio Tinto to keep mining at Oyu Tolgoi's open pit
Rio Tinto does not plan to stop mining at the Oyu Tolgoi copper-gold open pit despite declining grades, as well as delays and cost blow outs on an underground expansion of the Mongolian project, The Australian Financial Review wrote. This may result in a negative cash flow for the mine in 2020, according to sources.
Investors object to Pala's Cobalt 27 takeover offer
Cobalt 27 Capital Corp. investors object to Pala Investments Ltd.'s takeover offer, which recently increased the cash consideration to C$4.00 per share from C$3.57 per share, the Financial Post reported. Investors said that the cobalt assets are being taken away from them just as the price of the metal has started to improve recently. Cobalt 27 said that advisory firms ISS and Glass Lewis recommended shareholders to vote in favor of the transaction.
Resolute Mining's Q3 gold production improves QOQ
Resolute Mining Ltd. produced 103,201 ounces of gold in the September quarter, 25,069 ounces higher than the company's output in the June quarter. The company said it is on track for its full-year 2019 guidance of 400,000 ounces of gold production at an all-in sustaining cost of US$960 per ounce.
BASE METALS
* Five judges of the Appellate Court of Seville unanimously ruled in favor of Emerita Resources Corp.'s appeal of the lower court's decision to dismiss a criminal case against the Andalusian government panel responsible for awarding the Aznalcollar zinc project, and the former Director of Mines of the government of Andalusia. The Appellate Court concluded that the project was wrongfully awarded to Minorbis-Grupo Mexico.
* Sumitomo Corp. agreed to farm-in terms to earn up to a 20% stake in Bowen Coking Coal Ltd.'s Hillalong coal project in Queensland, Australia.
* Pelican Resources Ltd. executed the revised share sale and assignment of debt agreement for its Sibuyan Nickel Properties Development Corp., the beneficial owner of the Romblon nickel project in the Philippines. The subsidiary was sold to Dynamo Atlantic Limited and Dynamo Atlantic Holdings Philippines for a total consideration of A$270,000, with no royalties.
* MacDonald Mines Exploration Ltd. purchased 38 claims in Ontario to add to its Semple-Hulbert-Powerline-Jovan property package. The new claims cover prospective extensions of the potential iron-oxide-copper-gold system identified at the Scadding mine.
* Heron Resources Ltd. secured a A$91 million funding package that will allow commissioning of its Woodlawn zinc-copper project in New South Wales, Australia, to completion and to see it through to positive cash flow operations.
* The Northern Territory environment protection authority in Australia recommended that the state government approve KGL Resources Ltd.'s Jervois copper project. The company is targeting the start of mine construction in the second quarter of 2020.
* Japanese smelter Pan Pacific Copper Co. Ltd. plans to increase its refined copper output by 1.9% year over year to 302,000 tonnes between October 2019 and March 2020, its fiscal second half, Reuters reported.
* Search and rescue personnel of the Semirara Mining & Power Corp. found the decomposing body of a buried worker at a mining pit, two days after he went missing after a landslide, Inquirer reported.
* The transfer of five exploration permits by Ivanhoe Mines Ltd. to Regal Exploration DRC SASU was completed. The transfer is one of the conditions to fulfill the proposed acquisition of Nzuri Copper Ltd. by Chengtun Mining Group Co. Ltd. unit Xuchen International Limited.
* The government of Odisha, India, has identified 10 mineral blocks composed of seven iron ore blocks, and three iron ore and manganese blocks, for electronic auction for the purpose of granting a mining lease, The New Indian Express reported.
PRECIOUS METALS
* Analysts are positive on Platinum Group Metals Ltd.'s claim that its new flagship Waterberg platinum project in South Africa will be able to recover the value lost from its disastrous Maseve project. The company is aiming for first production from Waterberg in 2023.
* Auditing firm Ernst & Young, LLP expressed doubts on Vango Mining Ltd.'s ability to continue operations due to the company's financial position reported last June, Simply Wall St reported.
* St Barbara Ltd.'s consolidated gold production in the first quarter of its fiscal 2020 slumped to 87,569 ounces, from a revised 109,145 ounces — taking into account its C$722 million acquisition of Atlantic Gold, which closed in July — in the fourth quarter of its fiscal 2019.
* Twenty people were killed in a suspected attack by jihadists on a gold mining site in northern Burkina Faso, Reuters reported, citing unnamed sources. Gunmen came to the Dolmande site in Soum province and fired on people working there.
* Golden Rim Resources Ltd.'s 21,000-meter reverse circulation drilling and diamond drilling program has recommenced at the Kouri gold project in Burkina Faso after being suspended due to the rainy season.
* Breaker Resources NL decided to undertake a strategic review of options available to advance its Lake Roe gold project in Western Australia. The review process will consider potential partnering, funding and other asset initiatives, and will look into increasing the current 1.0-million-ounce resource.
* India's gold imports plunged 68% year on year in September to 26 tonnes from 81.71 tonnes, the lowest in more than three years as record domestic gold prices curbed retail buying, Reuters reported, citing an unnamed government source.
* The Department of Mines, Industry Regulation and Safety has granted the application for a revised clearing permit to Ramelius Resources Ltd.'s Greenfinch open pit project, adjacent to the company's Edna May gold operation in Western Australia.
* Ecuagoldmining South America's Rio Blanco gold-silver project in Ecuador was set on fire, deemed by the company as a terrorist attack, Mining.com reported.
BULK COMMODITIES
* Centennial Coal Co. Ltd. was able to massively increase its greenhouse gas emissions from its Myuna colliery and Mandalong mines on three occasions since 2016 to 2017 without penalty as these were approved by the government, The Guardian reported.
* Vale SA is looking into making hot briquetted iron, which removes the need to use coking coal for lower carbon emissions, if the price of natural gas needed for production will fall about 60% to US$4 per million British thermal units, Reuters reported, citing three company sources.
* Post-budget measures announced by the Indian government, the Reserve Bank's slashing of key rates for the fifth time in a row, and the ongoing festive season renewed the hopes of JSW Steel Ltd. for the second half amid a steel demand slump, The Economic Times reported.
* Pakistan's exports of base metals and articles grew by 35.62% during the first two months of the current financial year to US$115 million, from US$84.8 million in the comparative period in 2018, The Nation reported, citing data from the State Bank of Pakistan.
* TerraCom Ltd. executed a binding term sheet to set up a US$72 million rehabilitation bond facility for its flagship Blair Athol coal mine in Queensland, Australia.
* Iron ore exports from Iran rose 43% to 7.9 million tons in the fist five months covering March 21 to Aug. 22 of the current Iranian year, Financial Tribune reported.
* Navajo Transitional Energy Co. LLC is now the third-largest coal producer in U.S. after purchasing all of Cloud Peak Energy Inc.'s assets, Mining.com reported.
* Kalium Lakes Ltd. has awarded the contract to design, supply, install and commission the 7.5-megawatt gas-fired power station for its Beyondie sulfate of potash project to Clarke Energy.
SPECIALTY
* An unusual diamond, which has another gem inside it and resembles a traditional Russian Matryoshka doll, was mined in Yakutia, within PJSC Alrosa's Nyurba mining and processing division. Experts said that this is the first such diamond mined in the industry's history.
* Latin Resources Ltd. has taken a strategic decision to continue its operations in South America only on the basis of a part sale or joint venture on its projects. The company said it will continue to source suitable joint venture partners in Argentina and Brazil on its lithium projects.
* Gem Diamonds Ltd.'s mining lease for its Letseng diamond mine in Lesotho was renewed for 10 years, with an exclusive right to renew it a further 10 years. Meanwhile, the royalty payable over diamonds sold by Letseng increased to 10% from 8%, effective Oct. 3.
INDUSTRY NEWS
* Moody's lowered its 12- to 18-month outlook on the U.S. steel industry to negative from stable, citing weakening economic indicators, falling steel prices and downward revisions in outlooks for the global manufacturing and chemicals sectors.
* The International Monetary Fund will consider renewing its financial support to Democratic Republic of Congo within the next six months, Reuters reported, citing the government in Kinshasa. The IMF suspended its last financial aid worth more than US$500 million to Congo in 2012 after the government has failed to provide sufficient details on the sale of state mining assets to an offshore company. Congo is a leading miner of cobalt, copper, gold, tin and diamonds.
* The global supply of metals will not meet demand without innovations in the mining industry, due to materialized environmental, social and governance risk, a study from The University of Queensland showed.
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