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In This List

Anglo to soon confirm Sirius bid; Resolute to sell Ravenswood for up to A$300M

Mining Exploration Insights December

Mining Exploration Insights: Dip in gold drilling weighs on results

Mining Exploration Insights: Is the exploration sector back on recovery?

State of the Market: Mining Q2-2019


Anglo to soon confirm Sirius bid; Resolute to sell Ravenswood for up to A$300M

TOP NEWS

Anglo American to confirm bid to buy Sirius prior to February deadline

Anglo American PLC is expected to confirm a deal to acquire fertilizer company Sirius Minerals PLC for more than US$500 million, excluding debt, ahead of the deadline to finalize the offer, Reuters reported, citing three unnamed sources. The diversified mining major has until Feb. 5 to make a firm bid for Sirius. The parties have been in talks for the last nine months, and Anglo American is unlikely to improve its offer, the sources added.

Resolute to sell Ravenswood gold mine to EMR consortium for up to A$300M

Resolute Mining Ltd. signed definitive agreements for the sale of the Ravenswood gold mine in Queensland, Australia, to a consortium composed of EMR Capital Pty. Ltd. and Golden Energy and Resources Ltd. for up to A$300 million. The company plans to use the sale proceeds to reduce debt and strengthen its balance sheet. Completion of the sale is targeted before March 31.

Lithium producers' shares up on expected electric car sales rebound in China

Share prices for lithium producers Ganfeng Lithium Co. Ltd., Tianqi Lithium Corp. and Sociedad Quimica y Minera de Chile SA rose on their respective exchanges on investors' expectations of a rebound in sales for electric cars in China, the Financial Times reported. Miao Wei, China's minister for industry and information technology, recently said subsidies for electric vehicle purchases will not be further reduced this summer, resulting in the positive forecast from investors. JPMorgan analysts cited by the Financial Times forecast that electric vehicle sales in China will reach 2.3 million by 2023 from 1.2 million in 2019.

BASE METALS

* Chile's Codelco filed a lawsuit over an alleged insurance contract scam drawn up by unions for workers at the Chuquicamata and Radomiro Tomic mines, Reuters reported. Inflated premiums for life and personal accident insurance had cost US$22 million between 2005 and 2018. Half of the cost of the scam was borne by the company and the other half by its workers.

* Amur Minerals Corp. received approval for the baseline environmental assessment for its Kun-Manie nickel-copper project in Russia. The approval means the company does not need any extraordinary programs beyond those it already planned to start the operation.

* Congo's state-owned miner, Gécamines SA, opened the US$880 million Deziwa copper-cobalt mine, which it owns in a joint venture with China Nonferrous Metal Mining (Group) Co. Ltd., Reuters reported. The mine is expected to produce 80,000 tonnes of copper and 8,000 tonnes of cobalt per annum, the report said. The Chinese miner will operate the project for nine years, with a possible two-year extension, before transferring it to Gécamines.

* Jinduicheng Molybdenum Co. Ltd.'s net profit attributable to shareholders for full year 2019 rose 47.6% to 562.9 million Chinese yuan, from 381.4 million yuan a year ago, on the back of improved molybdenum production, higher sales volume and increased product prices over the period. The company's total operating revenue in 2019 increased 4.3% to 9.15 billion yuan from 8.78 billion yuan.

* Indiana Resources Ltd. served a notice to Tanzanian President John Magufuli, the Tanzanian solicitor general and the Tanzanian ministry of energy and minerals claiming that Tanzania breached international agreements by canceling the company's retention license over the Ntaka Hill nickel project and transferring the rights to the government. The company may initiate arbitration if a resolution with the government cannot be reached within six months.

* AVZ Minerals Ltd. unit AVZ Power SAU signed a memorandum of understanding with Congo's Ministry of Hydraulic Resources and Energy to investigate refurbishing the Mpiana-Mwanga hydroelectric power station, which can potentially provide 54 MW of electricity to the company's Manono lithium-tin project and the nearby Manono townsite.

PRECIOUS METALS

* Toronto-headquartered Yamana Gold Inc. reported preliminary production of 256,288 ounces of gold equivalent in the fourth quarter of 2019, bringing its full-year 2019 output to 1.02 million ounces, beating annual guidance of 1.01 Moz.

* Canada-based Pan American Silver Corp. produced 6.6 million ounces of silver and 173,900 ounces of gold in the fourth quarter of 2019, increasing from 6.1 million ounces of silver and 37,200 ounces of gold booked in the year-ago period, according to preliminary figures.

* Hochschild Mining PLC's full-year 2019 attributable gold equivalent production declined to 477,400 ounces from 503,640 ounces, but the company achieved record production at its Inmaculada mine in Peru of 260,126 gold equivalent ounces and at its San Jose mine in Argentina of 15.4 million silver equivalent ounces. Hochschild expects to produce 422,000 gold equivalent ounces in 2020 at all-in sustaining costs of US$1,040 to $1,080 per ounce.

* Eldorado Gold Corp. produced 395,331 ounces of gold in 2019, according to preliminary figures, up from 349,147 ounces in 2018. Output in the fourth quarter jumped to 118,955 ounces, from 75,887 ounces a year ago.

* Toronto-based miner McEwen Mining Inc. produced 46,263 ounces of gold equivalent in the fourth quarter of 2019, increasing from 40,217 ounces year over year. Full-year 2019 output dropped to 174,420 ounces, from 175,561 ounces in 2018, but was still near the top end of its 2019 guidance range of up to 176,000 ounces.

* Canadian miner Ivanhoe Mines Ltd. said its South African unit, Ivanplats, is expediting the completion of a feasibility study on a smaller-scale mine plan using shaft 1 at its Platreef palladium project in South Africa amid surging prices of palladium and rhodium.

* Erris Resources PLC completed its due diligence and decided to start exploration work to acquire 80% of Greenore Gold Plc's gold- and base metals-prospective Loch Tay project in central Scotland. The company can earn the stake by defining an inferred resource of at least 250,000 gold ounces within four years.

* Novo Resources Corp. will hold about an 8.17% stake in Kalamazoo Resources Ltd. after completing a subscription of 10 million units in the latter at 40 Australian cents each. Novo director Eric Sprott subscribed for an identical amount.

* Core Gold Inc. shareholders tendered 54.2% of the company's shares to Titan Minerals Ltd., meeting the minimum tender condition of the improved takeover offer. All conditions of the offer, which expired Jan. 14, are now met, and Titan will own a 56.7% interest in Core Gold following take-up of the tendered shares.

BULK COMMODITIES

* Fortescue Metals Group Ltd. opened a new office in Shanghai to support the company's relationships with its existing and new customers, partners and suppliers in the country. The new office will include activities of the company's wholly owned Chinese sales entity, FMG Trading Shanghai Co. Ltd., which was established in mid-2019. Fortescue CEO Elizabeth Gaines expects modest growth in Chinese steel demand during 2020 on the back of rising urbanization and the country's Belt and Road Initiative projects, Reuters reported. The country produced 904.18 million tonnes of steel in the first 11 months of 2019, according to government data.

* Compañía Minera Autlán SAB de CV's operational halt at its ferroalloys plant in Gomez Palacio, Mexico, has extended into January as difficult domestic steel market conditions continue, Reuters reported, citing the company. Autlan will continue serving its customers through its Teziutlan and Tamos plants.

* Cleveland-Cliffs Inc. started offers to exchange outstanding US$270.2 million of 6.375% senior notes due 2025 and US$391.6 million of 7.00% senior notes due 2027 issued by an AK Steel Holding Corp. unit. The transaction is in connection with Cleveland-Cliffs' planned US$1.1 billion purchase of AK Steel.

* More than 2,600 people signed a petition urging the Palaszczuk government in Queensland, Australia, to block the China First coal project owned by Australian businessman Clive Palmer's Waratah Coal Pty. Ltd., The Sydney Morning Herald reported. The state government was asked to grant a state-protected status to a nature reserve where the project is located, the report said.

* Kaiser Aluminum Corp. declared a quarterly cash dividend of 67 U.S. cents per share, up 12% from the previous quarter's dividend. The dividend is payable Feb. 14.

* U.S. dollar bonds issued by Chinese state-owned aluminum-maker Qinghai Provincial Investment Group plummeted after S&P Global Ratings downgraded the company after it missed a semiannual coupon payment, Reuters wrote. A US$300 million July 2021 bond issued by Qinghai was quoted at 40 cents on the dollar, decreasing by 8 cents from the previous day and the lowest since it was issued in July 2017, the report said.

* Jingxi Tiangui Aluminium started phase-one production at its 800,000-tonne-per-annum alumina project in China's Guangzi region, Fastmarkets MB wrote. The project is part of a larger project with total alumina capacity of 2.5 million tonnes per annum, the report said.

* The Kentucky regulators responsible for enforcing federal mining laws informed a bankruptcy court that Blackjewel LLC and affiliate Revelation Energy LLC account for about 30% of the state's total outstanding noncompliances issued.

* Lawmakers in Richmond, Calif., passed a measure to ban coal, shutting a coal port operated by Levin-Richmond Terminal Corp. that handles about a quarter of exports from the U.S. West Coast, Bloomberg News wrote. The law gives the facility three years to stop coal shipments, the report said. In 2018, the port reportedly shipped about 1 million tonnes of coal to Japan and South Korea.

* The decline in coal production and exports will slow considerably or even reverse course from 2020 to 2021 compared with this year's expected trajectory, according to the U.S. Energy Information Administration.

SPECIALTY

* Australian Vanadium Ltd. signed a letter of intent with Hebei Yanshan Vanadium and Titanium Industry Technology Research Co. Ltd. to negotiate and sign a binding technical services and purchase agreement for the former's vanadium products.

* Montreal-based GeoMega Resources Inc. signed a long-term lease for the site of its rare earth magnets recycling demonstration plant. Construction of the industrial complex in the Saint-Bruno-de-Montarville area was completed in late 2019, and final detail work is ongoing. The company said the location provides enough space for the plant and future expansions.

INDUSTRY NEWS

* Global commodities trader Trafigura Group Pte. Ltd. aims to set an emissions target this year. During 2019, the company said it progressed in reporting emissions intensity.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.

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