trending Market Intelligence /marketintelligence/en/news-insights/trending/KXy_dj5RKuMOFAdqzPEjLg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

ThyssenKrupp expects lower earnings; JSW bids for Tata UK assets; Eramet moves to save nickel unit

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020


ThyssenKrupp expects lower earnings; JSW bids for Tata UK assets; Eramet moves to save nickel unit

TOP NEWS

ThyssenKruppexpects lower earnings

ThyssenKrupp AGlowered its full-year adjusted EBITforecast to total at least €1.4 billion as difficult materials markets continueto weigh on performance. The company posted a net loss of €9 million in the firsthalf of its fiscal year, with its adjusted EBIT in the period dropping to €560 millionfrom €722 million in the preceding year.

JSWmoves to become world's 3rd largest steel firm with Tata Steel U.K. bid

Indian steel major JSWSteel Ltd. has emergedas one of the seven bidders eyeing TataSteel Ltd.'s embattled U.K. steel operations, the Financial Times reported. Sources with directknowledge of the matter told Reuters that JSW hasbid for the assets, with one of the sources saying the bid is in line with JSW'sgoal to become the third-largest steel company in the world.

Eramet agreesto financing, cost-reduction deals for nickel unit

Eramethas agreedto the proposed financing and cost-reduction measures to help its or SLN unit weather thedownturn in nickel prices. Eramet said it would invest €40 million in the businessto ensure its liquidity until the end of June. Meanwhile, Philippe Gomes, a memberof parliament and an Eramet board member on behalf of the STCPI — the vehicle representingthe New Caledonian provinces — told Reuters that the STCPI decided to request fora €127 million investment in SLN.

DIVERSIFIED

* According to Moody's, the 155 billion Brazilian reais civillawsuit filed against Vale SA,BHP Billiton Group andtheir joint venture Samarco MineraçãoSA, will be credit negativefor the companies as it would require them to almost immediately pay US$2.2 billionand make commitments for the total US$44 billion amount.

* Ruben Fernandes was namedas Anglo American Plc'sCEO in Brazil, apart from his current role as the CEO of the company's nickel, niobiumand phosphates businesses. Effective June 20, Fernandes will lead the company'sIron Ore Brazil business, which includes the Minas Rio mine.

BASE METALS

* Eramethas agreedto the proposed financing and cost-reduction measures to help its or SLN unit weather thedownturn in nickel prices. Eramet said it would invest €40 million in the businessto ensure its liquidity until the end of June. Meanwhile, Philippe Gomes, a memberof parliament and an Eramet board member on behalf of the STCPI — the vehicle representingthe New Caledonian provinces — told Reuters that the STCPI decided to request fora €127 million investment in SLN.

* Freeport-McMoRanInc. CEO Richard Adkerson recognized the company's "currentneed" to resolve the extension of its mining contract over the copper mine in Indonesia,the Financial Times reported citing themine's importance to Freeport, contributing US$3 billion or 20% of the company's2015 revenues.

* Codelco'sEl Teniente copperunit in Chile is developingthree projects to maintain annual production at around 450,000 tonnes of copper,requiring a total investment of US$1 billion. Meanwhile, the mine is also consideringnew initiatives to counteract delays in the US$5.1 billion Nuevo Nivel Mina expansionproject, deterred until 2022 due to security issues, general manager Mauricio Larraíntold Diario Financiero.

* Caravel MineralsLtd. completedthe sale of the Wynbergcopper project in Queensland, Australia, to CopperChemLtd. for A$400,000.

* Rio Tinto'sTurquoise Hill Resources Ltd.is already mulling over potentialexpansions based on nearby deposits that are not part of the current mine planfor Oyu Tolgoi,The Australian reported. "We don'texpect Oyu Tolgoi to stay at current [ore] production for the long term," saidTurquoise Hill chief Jeff Tygesen. Meanwhile, Reuters wrote that the approval forthe Oyu Tolgoi expansion project is raisinghopes for businesses in Mongolia, referring to approval as potentially "game-changing"as it could be a precedent for other stalled projects in the country and eventuallyrestore investor trust in Mongolia.

PRECIOUS METALS

* A loco operator diedin a box hole incident at the Rowland shaft within Lonmin Plc's Marikanaplatinum mine in South Africa. An investigation into the incident has started.

* Amarillo GoldCorp. received from the Secretary of Environment, Water Resources, Infrastructure,Cities and Metropolitan Affairs of the Brazilian state of Goias the for the proposed Possemine at the Mara Rosaproject.

* Saracen MineralHoldings Ltd. declared commercialproduction at the Thunderboxgold project in Western Australia, effective April 1. The mine produced 7,026 ouncesof gold at all-in sustaining cost of A$1,107 per ounce in April.

* Mantle MiningCorp. Ltd. completedthe acquisition of a 95% stake in MorningStar Gold NL. The company now plans to restart work at the gold project in Queensland,and Morning Stargold project in Victoria, Australia.

* According to The DenverPost, Atna Resources Ltd.has auctionedoff some of its mining and mineral rights and is currently expecting a cease-tradeoffer for the shares of Atna Canada, its indirect parent. "…The company hasno present expectation that it will ever be in a position to remedy its failureto make its annual continuous disclosure filings," officials said.

* Monument MiningLtd. decided not to proceedwith the joint venture agreement to earn up to a 90% joint venture interest in theMatala gold projectin the Democratic Republic of Congo from AfriminesResources SPRL subsidiary Regal Sud Kivu SARL.

* Golden Rim ResourcesLtd. is proposing to acquireHerencia Resources Plc'ssubsidiary, Paguanta Resources (Chile)SA, which holds a 70% interest in the Paguanta project in northern Chile, for US$2.3million.

* Havilah ResourcesLtd. poured the firstgold from its Portiagold mine in South Australia on May 9, just over 13 months after the start of mining.

* Operations at AureusMining Inc.'s New Liberty gold mine in Liberia was temporarilysuspended due to problems with the detoxification circuit in the process plant,which together with recent heavy rainfall resulted in a small overflow of effluentinto the wetlands area within the mining lease.

* Rambler Metals& Mining Plc signed an agreement with Maritime Resources Corp. to evaluate the economic potential of re-opening the gold mine in Newfoundlandand Labrador, which stopped production in 2004 due to depletion of reserves.

* Eskay MiningCorp. said that upon the repayment of a loan relating to its gold project in BritishColumbia, the title to the property has been transferred to the company.

BULK COMMODITIES

* ThyssenKruppAG loweredits full-year adjusted EBIT forecast to total at least €1.4 billion as difficultmaterials markets continue to weigh on performance. The company posted a net lossof €9 million in the first half of its fiscal year, with its adjusted EBIT in theperiod dropping to €560 million from €722 million in the preceding year.

* Indian steel major JSWSteel Ltd. has emergedas one of the seven bidders eyeing TataSteel Ltd.'s embattled U.K. steel operations, the Financial Times reported. Sources with directknowledge of the matter have confirmed to Reuters that JSW hasbid for the Tata assets, with one of the sources saying the bid is in line withJSW's goal to become third-largest steel company in the world.

* Mitsubishi Corp.and Mitsui & Co. Ltd.— Japan's two biggest trading firms — postedcombined losses of ¥232.8 billion in the year ended March 31, marking theirfirst ever annual losses. Bloomberg News wrote that the Japanese firms are now lookingto diversify its businesses, shifting away from energy and mining projects. Mitsuiplans to raise¥350 billion through a hybrid loan. The syndicated loan will mature in 60 yearsand is expected to be executed by the end of June with Sumitomo Mitsui Banking Corp.as the arranger.

* Norsk Hydro ASAand Vale SA have ended talksover Norsk Hydro's acquisition of Vale's 40% stake in Brazilian bauxite producerMineração Rio do Norteafter failing to agree on the deal's commercial terms. The companies signed a letterof intent for the deal in October last year. Norsk Hydro will continue buying bauxitefrom Vale under 2011 agreements.

* U.S. coal giant PeabodyEnergy Corp. agreed to sellto Australia-based Pembroke Resources its interest in undeveloped metallurgicalreserve tenements in Queensland's Bowen Basin for A$104 million in cash plus royalties.Peabody is offering its Olive Downs South, Olive Downs South Extended, Willungaand Olive Downs North tenements, all of which consist of undeveloped proven andprobable reserves totaling about 165 million tons.

* United Co. RUSALPlc deputy CEO Oleg Mukhamedshin said Chinese aluminum producers shouldmaintain discipline on production to "ensure gradual improvement in pricesand profitability," warning that restarting plants will underminethe rally in metal prices over the past month, Reuters wrote.

* According to Mining Weekly,the Indian government has straightenedup the payment system for the auction of 16 coal blocks in the country in June.A government official said the upcoming auction will be the first time in 40 yearsthat non-captive commercial coal mining will be opened to firms other than state-ownedminers.

* Incitec PivotLtd. posted a net profit after tax of A$31.5 million for the half yearended March 31, after recording a A$105.6 million noncash impairment to the assetvalue of the Gibson Island fertilizer manufacturing plant in Queensland. The figurerepresents a 78.5% dropcompared to the year-ago net profit after tax, which totaled A$146.4 million.

* Following the bankruptcy filing by New World Resources Plc's main coal-mining unit and onlyoperating and trading subsidiary, OKDa.s., rating agency Moody's downgradedthe probability of default rating of NewWorld Resources N.V. to D-PD from C-PD, and affirmed its corporate familyrating at C. The rating agency also downgraded the rating on the company's €300million senior secured notes due in 2020 from Ca to C as it expects low recoveryrates for secured bondholders.

* Altech ChemicalsLtd. agreed to sellexploration license E70/3923 at Meckering, Western Australia, to Dana Shipping andTrading SA for A$2.0 million. The agreement also settles the dispute between theparties over Altech's termination of the kaolin mining rights deed.

* Adriana ResourcesInc. placed the LacOtelnuk iron ore project in Quebec under care and maintenance amid low prices of the steelmaking ingredient.

* The board of Australian iron ore junior Flinders Mines Ltd. recommended that shareholders an improved takeover offerby Todd Corp. Ltd. unitTio (NZ) Ltd. of 2.5 Australiancents per share — 92% over the New Zealand-based bidder's initial cash offer.

* Atrum Coal NLhas received the required permitsfrom the government of British Columbia to start bulk sample mining activities atits flagship Groundhoganthracite project in the Canadian province.

SPECIALTY

* IMX ResourcesLtd. said that the initial public offer of Graphex Mining Ltd. has beencleared to proceed, withthe company having addressed all concerns raised by the Australian Securities andInvestments Commission related to an April 4 prospectus. The priority offer to IMXshareholders has closed, while the general offer is expected to close on May 11due to demand exceeding the maximum A$7 million raising.

* Northam PlatinumLtd. offloadedits 20.3% stake in diamond producer TransHex Group Ltd. for a total cash consideration of 81.8 million SouthAfrican rand. According to Northam CEO Paul Dunne, the disposal is in line withthe company's strategy to rationalize its asset portfolio.

* Operations at Rio Tinto's Richards Bay operation in South Africa's KwaZulu-Natal provincehave been suspendeduntil further notice after the entrance to the mine was blocked by local residentswho demanded permanent jobs and equal business opportunities, Business Day reported.

* American LithiumCorp. agreed to buyall the outstanding shares of a Canadian exploration company that holds optionsover claims to potential lithium deposits across 2,882 acres in Esmeralda County,Nev.

* Canada Rare EarthCorp. struck a deal to acquirea 60% stake in an unnamed company based in Laos that owns a full capability rareearth refinery.

INDUSTRY NEWS

* According to Reuters, Zimbabwe's central bank governor saidthe African country was able to secure up to US$250 million in credit linesfrom Belarus and Africa's Preferential Trade Area Bank in the last year to increaseits gold and diamond production.

* AngloGold AshantiLtd. CEO Srinivasan Venkatakrishnan hopes that the South African governmentwill resolvethe dispute with the country's mining sector relating to black economic empowermentlaws, Bloomberg News wrote.

* Argentine mining minister Daniel Meilán said that the eliminationof export taxes on mining companies, a measure adopted in February, has alreadyattractedChilean, Australian and French investors. He claimed that there are 30 potentialinvestment projects in the country for the next decade, Los Andes reported.

The Daily Dose is updatedas of 7 a.m. New York time, and scans news sources published in Chinese, English,Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some externallinks may require a subscription.