TOP NEWS
UK fraud office preparing formal probe into Glencore, Gertler dealings in DRC
The U.K.'s Serious Fraud Office is preparing a formal bribery probe into Glencore PLC's dealings with Israeli billionaire Dan Gertler and Democratic Republic of the Congo President Joseph Kabila, Bloomberg News reported, citing anonymous sources.
Oleg Deripaska to cede majority control over En+ Group to address US sanctions
En+ Group PLC's board endorsed Independent Chairman Gregory Barker's proposal and strategy, dubbed the Barker plan, in a bid to lift U.S. sanctions imposed against the company in April. The U.S. Office of Foreign Assets Control outlined terms for the relief of sanctions, and in line with these terms, the Barker plan will see Oleg Deripaska ceding control over En+ Group, with his stakes to be reduced below 50%, and influence over the company's board through the appointment of a majority of independent directors. Barker accepted Deripaska's resignation as a nonexecutive director, with immediate effect.
Indonesian coal miners adapting to tighter import curbs in China
With China slashing coal imports in a bid to lower air pollution and to boost the domestic industry, miners in Indonesia are carving out different strategies to adapt to the changing dynamics of the marketplace. Chen Guangzhi, a Singapore-based investment analyst with Phillip Securities Research, said both miners and traders have to adapt to policy changes in China. "If China capped the imports [of low grade coal] from Indonesia, trading houses would have no choice but to defer the procurement from domestic coal mines," Chen told S&P Global Market Intelligence.
DIVERSIFIED
* The U.S. Department of the Interior published a final list of 35 metals and minerals in the Federal Register that it considers "critical" as part of a push by the Trump administration to consider ways to lessen U.S. dependence on foreign supplies. The list is the same as a draft version proposed in February, with the report expected to come out in August.
* The Queensland Treasury included BHP Billiton Group's partner in Australia, Mitsubishi Corp., in a royalty assessment for 2005 to 2015, which could result in tax claims around the miner's offshore trading hub growing beyond A$1.4 billion, The Australian reported. The Queensland Office of State Revenue is already chasing A$329 million over a royalty review, which is being contested by BHP in the Queensland Supreme Court. Mitsubishi's involvement, meanwhile, could add over A$300 million in extra royalties.
* Vale SA CEO Fabio Schvartsman said the company is expected to achieve its US$10 billion debt target later in the year, following which the mining major will focus on giving out more cash to shareholders, Bloomberg News reported.
BASE METALS
* Vedanta Ltd. said the closure of the Tuticorin copper smelter in India's Tamil Nadu state is causing a copper deficit and increased prices in the country, given that the facility contributes about 35% in India's primary copper market, Reuters reported.
* US Cobalt Inc. securityholders approved the company's acquisition by First Cobalt Corp. The transaction is scheduled to be completed on May 31.
* The conditional approval from Zambia's Ministry of Mines and Minerals Development for a subsidiary of Weatherly International Plc to purchase Intrepid Mines Ltd.'s Zambian assets lapsed.
* Emmerson Resources Ltd.'s proposed restructure of the Tennant Creek Mineral Field copper joint venture agreement with Evolution Mining Ltd. has been completed, following shareholder approval.
* Patagonia Gold PLC made the final US$10 million payment for the purchase of the Calcatreu gold deposit in Argentina from Pan American Silver Corp.
* SolGold Plc discovered two new copper targets on the western side of its La Hueca project, which is along Ecuador's Southern Jurassic porphyry corridor. Channel chip sampling returned 17.3 meters at 3.87% copper and 0.46 g/t of gold, including 6 meters at 9.39% copper and 0.98 g/t of gold.
PRECIOUS METALS
* Almadex Minerals Ltd. completed the spinout of its early stage exploration projects, royalty interests and other noncore assets into a new company. The spinoff company will be named Almadex Minerals Ltd., and the entity previously named Almadex will rebrand as Azucar Minerals Ltd.
* Australian Mines Ltd. increased its interest in the Marymia gold-copper project in Western Australia to 80% by completing the second stage earn-in from Riedel Resources Ltd.
* Kommersant reported that Petropavlovsk PLC may again change management, after largest shareholder Kenes Rakishev, which owns a 22.4% stake, agreed with the proposal of minority shareholders to return to the company its co-founder Pavel Maslovsky and two other members of the board of directors. Sources in the industry said that the gold miner may return to the idea of merging with Musa Bazhayev's Amur Gold.
BULK COMMODITIES
* EN+ Group's net profit in the first quarter soared 152% year over year to US$667 million, while revenue climbed 17% to US$3.44 billion, on the back of a higher aluminum price on the London Metal Exchange. The Russian group's aluminum production rose 2.3% to 931,000 tonnes, while alumina output was flat at about 1.9 million tonnes.
* Verdant Minerals Ltd. signed a nonbinding memorandum of understanding with Ameropa Australia Pty. Ltd. for the future supply of up to 100,000 tonnes per annum of phosphate rock concentrate, or other phosphate products, to be produced at the Ammaroo project in Australia's Northern Territory.
* Bowen Coking Coal Ltd. decided to sell its Comet Ridge coal project in Queensland, Australia, to Springsure Creek Coal Pty. Ltd. for A$100,000 cash and a royalty stream of 1.25% of free on rail revenue from the first 2.8 million tonnes of coal produced.
* Tata Steel Ltd. completed the previously announced acquisition of a majority interest in Bhushan Steel Ltd. The state-owned Bank of India would be able to realize around 19.93 billion rupees as a result of the transaction, Press Trust of India reported.
* ThyssenKrupp AG's anticipated deal signing over a 50/50 European steel joint venture with Tata Steel by the end of June could be pushed back as Tata Steel's Dutch works council takes its time to assess the venture, Reuters reported. Dutch works council President Frits van Wieringen told Reuters that the assessment would take up to three months from its May 1 start date.
* India's JSW Steel Ltd. acquired Italy-based steel producer Acciaierie e Ferriere di Piombino, or Aferpi, for about 6 billion Indian rupees, Metal Bulletin reported.
* Viktor Vekselberg's Renova Group said it settled its debts to western banks before the U.S. sanctions against it take effect in June, the Financial Times reported. Meanwhile, Vekselberg reduced his stake in steelmaker Schmolz + Bickenbach to 12.6% from 42% previously.
* India and the European Union have drawn up lists of U.S. products that could be subject to tariffs in response to President Donald Trump's levies on steel and aluminum, Reuters reported, citing WTO filings. India would target U.S. exports of cashews, palmolein and soya oil. The U.S. tariffs on aluminum and steel could cost India an additional US$31 million and US$134 million, respectively, the report added.
* The Russian Economy Ministry said the U.S. refused to discuss its steel and aluminum tariffs within the framework of the WTO, Reuters reported, citing the Interfax news agency. Russia also seeks to inform the WTO that it may introduce measures in response to Washington's trade tariffs.
* BHP is said to be reviewing long-term coal haulage contracts for up to 10 million tonnes of coal annually as it has objections to a revised June maintenance schedule for Aurizon Holdings Ltd.'s Goonyella railway track in Queensland, The Australian Financial Review reported.
* Nippon Steel & Sumitomo Metal Corp. said that strong global demand of steel has offset the impact of the recent U.S. import duties on the metal, Reuters reported. The company, whose U.S.-bound steel shipments comprise about 4% of its total exports, saw more than 90% of its customers continuing to purchase products following the imposition of the tariffs.
* Chinese steel mills are investing in shredding equipment to turn cars and other junk metal into raw materials for steel production as the government toughens pollution rules, Reuters reported, noting the mills' increased liquidity after bumper profit margins in 2017.
* China will shut down more outdated steel plants and bring its total capacity to less than 1 billion tonnes by 2025, Reuters reported, citing Yu Yong, president of the China Iron and Steel Association. The country is targeting closing another 30 million tonnes of capacity this year.
* Kibo Mining Plc awarded Sepco III, the company's Chinese development partner, the second and final lot of the engineering, procurement, and construction contract for the power line that will evacuate power from the Mbeya coal-to-power project's power plant in the Songwe district of Tanzania to the TANESCO Mbeya sub-station.
SPECIALTY
* Prospect Resources Ltd.'s newly appointed earth-moving contractor for the Arcadia lithium project in Zimbabwe is expected to start mobilization of plant and equipment immediately and to break ground in the coming weeks. Meanwhile, the company expects to secure over US$55 million in funding for the first phase of the project to start lithium concentrates production for export by June 30, 2019.
INDUSTRY NEWS
* Zimbabwean Mines Minister Winston Chitando confirmed the removal of a clause requiring mining companies to list on the local exchange as part of the country's proposed mining bill, Reuters reported. "For the record, Zimbabwe will not compel companies to list on the stock exchange. This does not fit into the new economic dispensation," said Chitando. Meanwhile, Chitando said Zimbabwe's new ownership policies for platinum and diamond mining will be released by the end of June, Bloomberg News reported.
* Batirai Manhando, head of Zimbabwe's Chamber of Mines, said the country needs up to US$11 billion to modernize mining operations and push production to maximum capacity over the next five years, Reuters reported. According to Manhando, all mines in the country are operating below capacity, with the exception of platinum mines.
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