trending Market Intelligence /marketintelligence/en/news-insights/trending/kdrajxc5-1h1l9ld1r1qag2 content esgSubNav
In This List

European Union targets US products after tariffs

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


European Union targets US products after tariffs

TOP NEWS

European Union targets US products after tariffs

The European Union is considering imposing tariffs of 25% on roughly US$3.5 billion worth of U.S. exports to the 28-member bloc should President Donald Trump push forward on his proposed tariffs on steel and aluminum imports, Reuters reported. Citing sources, Reuters said the tariffs would be used to rebalance the trade relationship.

Canada to unveil mining plan, eyeing domination in sustainability

Canada aims to become the "undisputed leader in sustainable mineral resource development" and will outline part of a strategy to do so in a report the government plans to release March 6, Kim Rudd, the parliamentary secretary to the minister of natural resources, said at the opening ceremonies of the Prospectors & Developers Association of Canada conference in Toronto. The report is called the Canadian Minerals and Metals Plan.

ArcelorMittal remains committed to US$1B investment in Mexico; appoints new President

Despite the uncertainty surrounding the North American Free Trade Agreement, ArcelorMittal remains committed to investing US$1 billion in a new production line in Mexico, Reuters reported, citing a company spokesperson. The investment will see construction of a new hot strip mill, which will produce 2.5 million tonnes of flat rolled steel per annum. ArcelorMittal has also named CFO and ArcelorMittal Europe unit CEO Aditya Mittal as the group's president.

DIVERSIFIED

* Polymetal International Plc's total ore reserves as of Jan. 1 increased 5% year over year to 20.9 million ounces of gold equivalent in the combined proved and probable categories, on the back of a 25% increase to 81,600 tonnes in copper reserves and the addition of 85,800 tonnes of zinc reserves. Meanwhile, the company's mineral resources increased 10% to 18.2 million ounces of gold equivalent.

* Minsur S.A.'s gold production in the fourth quarter of 2017 jumped 26% year over year to 24,583 ounces, driven by higher feed and higher ore treated at its Pucamarca gold mine in Peru. Tin output, meanwhile, fell 6% to 6,331 tonnes due to lower ore grade fed to the concentration plant at its San Rafael tin mine, also in Peru, and the outsourcing of surplus concentrate treated at its Pitinga joint venture in Brazil.

* BMG Resources Ltd. opted not to proceed with an option to acquire certain polymetallic Bulgarian mineral assets, following the completion of due diligence.

BASE METALS

* Unionized workers at Nexa Resources SA's Cajamarquilla zinc smelter in Peru plan to launch an indefinite strike, beginning March 5, seeking a larger share of profits and improved working conditions, Metal Bulletin reported.

* Serengeti Resources Inc. signed a binding agreement to acquire Finlay Minerals Ltd.'s Atty and Electrum Resource Corp.'s ATG copper properties in British Columbia.

* New Century Resources Ltd. executed an engineering, procurement and construction contract for the refurbishment and commissioning of the Century zinc processing plant and Karumba port facility in Queensland.

* Red River Resources Ltd. will resume full site operations at the Thalanga zinc project in Queensland on March 6. The project was placed on standby as a result of severe weather conditions.

PRECIOUS METALS

* Petropavlovsk Plc's total reserves for underground mining as of Dec. 31, 2017, marked a 16% increase to 430,000 ounces in the proven category, attributed to new resource estimates at the North-East Bakhmut, Andreevskaya and Nikolaevskaya zones of the Pioneer project in Russia. The company also recorded an about 8% increase in reserves to 670,000 ounces of gold and an about 6% increase in resources to 1.17 million ounces of gold across the group's assets.

* Lundin Gold Inc. is eyeing an annual output of up to 1.0 million ounces per year from three or four projects, Reuters reported, citing CEO Ron Hochstein, with future development to focus on the North and Latin American regions after first production is achieved at the Fruta del Norte gold project in Ecuador, expected by the end of 2019.

* AngloGold Ashanti Ltd. completed the sale of the Moab Khotsong gold mine in South Africa to Harmony Gold Mining Co. Ltd. and the Kopanang gold mine to Heaven-Sent SA Sunshine Investment Co. Ltd. The company used 3.57 billion rand in proceeds from the disposals to reduce debt.

* Red Eagle Mining Corp. agreed to acquire the Red Eagle Exploration Ltd. shares that it did not own already via a three-cornered amalgamation, to create an exploration, development and operating company with four gold and silver projects in Colombia.

* Australia's gold production may reach a record this year as new projects come online, Reuters reported, citing mining consultancy Surbiton Associates. In 2017, gold output rose by 3 tons from the previous year to 301 tons, or about 9.7 million ounces, which is the highest since 1999. Another 20 tons of production may be added this year, the report said.

BULK COMMODITIES

* Fresh off an announcement of planned tariffs on imported steel and aluminum, President Donald Trump threatened to do the same for European cars if the European Union follows through with a promise of retaliatory tariffs.

* British Prime Minister Theresa May told U.S. President Donald Trump she had "deep concern" about the potential U.S. tariffs on aluminum and steel, noting that multilateral action was the only way to resolve the global overcapacity issue, Reuters wrote, citing May's office.

* POSCO intends to ask for tax exemptions from state governments once Trump's order comes into effect. Additionally, the Federation of Korean Industries wrote to key U.S. officials urging the Trump administration to exclude the country from steel tariffs, The Korea Times reported. South Korea is the third-largest steel exporter to the U.S. after Canada and Brazil.

* The trade tariffs may cause an oversupply of aluminum and steel in Southeast Asia, with China, Russia, Ukraine and Turkey competing to sell their steel to countries including the Philippines and Vietnam, Reuters reported. Aluminum exporters from China may compete for business with South Korean and Thai producers. Separately, the Economic Times of India reported that Indian steel producers may face an export supply surplus, should the country not be able to overcome the proposed tariffs imposed by the U.S.

* The U.S. government slapped a 51% tariff on Perth-based silicon metal exporter Simcoa, The Australian Financial Review reported. Australian Trade Minister Steve Ciobo, who said the government may take action against the Trump administration's anti-trade measures, noted that the U.S. findings against Simcoa were "unfair" and "ridiculous" and that he will be exploring options with respect to the company's situation.

* Global coal prices are expected to remain robust through 2018 as a result of higher consumption in India and a steady demand in China, despite its measures to curb emissions and dependence on the commodity, The Jakarta Post reported, citing World Coal Association CEO Benjamin Sporton.

* India's Goa state stands to lose 35 billion Indian rupees in annual revenue and about 200,000 jobs after the Supreme Court order to no longer renew iron ore mining leases granted to 88 companies in 2015, the Economic Times of India reported.

* Norsk Hydro ASA's Alunorte alumina refinery in Brazil's Para state declared force majeure after the federal and state governments ordered it to cut output by 50%.

* Whitehaven Coal Ltd. is said to be working with Grant Samuel to secure funding as it eyes Rio Tinto's remaining coal mines in Australia, The Australian reported. Final bids for the Queensland-based assets are due March 12. Apollo Global Management LLC, Whitehaven, EMR Capital partnering with China Investment Corp. and Yancoal Australia Ltd., potentially partnering with Glencore Plc, are expected to compete for the mines.

* Cia. Siderúrgica Nacional's CSN Resources S.A. unit accepted for purchase US$147.1 million of its 6.50% senior unsecured guaranteed notes due 2020 following the expiration of tender offers.

* China is looking to reduce coal capacity by 150 million tonnes and iron and steel capacity by 30 million tonnes this year, Premier Li Keqiang said at the opening of the National People's Congress on March 5, according to Xinhua News Agency. Beijing will continue to close inefficient capacity and tighten regulations over environment, quality control and safety, according to Li.

* Exxaro Resources Ltd. expects to book a 30% to 40% increase in core headline earnings per share for the year ended Dec. 31, 2017, Mining Weekly reported. The core HEPS excludes one-off items, including costs relating to the implementation of its replacement black economic empowerment deal, and gains on the partial sale of its stake in Tronox Ltd.

* Fifty-five workers at Mosaic Co.'s K2 potash facility in Saskatchewan who were trapped underground due to a small fire made it safely to surface, Mining.com reported. According to a company spokesperson, damage was minor and the cause of the fire is being probed. Mosaic has restarted operations at the underground mine.

* Stanmore Coal Ltd. was granted the Isaac Plains East coal mining leases and Commonwealth EPBC approvals, extending the mine life of the Isaac Plains Complex in Queensland, Australia, by about 7 years. Output from Isaac Plains East is now expected to start by early first quarter of 2019, compared to the previous estimate of 2018's fourth quarter.

SPECIALTY

* A preliminary feasibility study for Frontier Lithium Inc.'s PAK lithium project in Ontario pegged a posttax net present value of C$301 million, discounted at 8%, and a 38.3% internal rate of return. Initial CapEx is estimated at C$147 million, including a 10% contingency, covering the entire two-year preproduction period. Sustaining capital is C$37 million.

* Lucapa Diamond Co. Ltd. fetched US$1.7 million from the second sale this year of alluvial diamonds from the Lulo project in Angola. The company sold 2,072 carats at an average price per carat of US$804.

* Magnis Resources Ltd. will team up with automation company Siemens AG to enhance its lithium-ion manufacturing technology through digitization and automation.

* Image Resources NL is finalizing the contract to BMD Constructions for the site road entry intersection at the Boonanarring mineral sands project in Western Australia. This will be the first project construction-related contract for Boonanarring, signaling the impending start of site activities.

The Daily Dose is updated as of 7 a.m. London time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.