TOP NEWS
Anglo to spin out unit as it looks to boost platinum demand
Anglo American PLC plans to spin out its internal venture capital unit to raise funds to invest in hydrogen technologies, as the company looks to boost demand for platinum, the Financial Times reported. Anglo American Platinum Ltd. CEO Chris Griffith said the spin-out will allow the company to tap external investors as it seeks to acquire stakes in emerging hydrogen start-ups.
Botswana wants new 10-year sale deal with De Beers to boost employment
Botswana President Mokgweetsi Masisi is looking to land a new long-term diamond sales agreement with De Beers SA, with better terms for more job creation and increased local processing of the gems. According to Bloomberg News, Masisi said preparations for the talks with De Beers are at an advanced stage as the parties' current 10-year agreement expires in 2020.
South African Reserve Bank OKs Sibanye-Lonmin merger; UK competition watchdog to probe deal
The South African Reserve Bank approved Sibanye Gold Ltd.'s proposed £285 million acquisition of Lonmin PLC, moving the transaction a step closer to completion, which is still expected in the second half of this year, Mining Weekly wrote. Separately, Reuters wrote that the British Competition and Markets Authority will assess whether the merger would reduce competition in the sector.
DIVERSIFIED
* BHP Billiton Group CEO Andrew Mackenzie the company intends to return a bigger proportion of free cash flows to shareholders in the near future, The Australian Financial Review reported. Meanwhile, Mackenzie said the sale of the company's U.S. shale assets is attracting greater interest due to higher oil prices and U.S. tax reforms, adding that BHP is making good progress with its exit from the onshore energy business, The Australian wrote. The executive, however, ruled out the sale of conventional oil assets.
* Vedanta Resources PLC appointed South African-born Deshnee Naidoo to lead the company's African operations, the Financial Times reported. Naidoo will oversee the company's copper and zinc mines in Zambia, South Africa, Namibia and Tasmania.
* Rio Tinto CEO Jean-Sébastien Jacques warned the mining industry that it will have to work hard to protect margins and generate cash against amid rising costs and increased political risk, the Financial Times wrote. The executive said that cost inflation driven by near US$80 per barrel oil is affecting the entire sector and all commodities, while resource nationalism is gaining ground. Jacques added that resource companies need to build "the United Nations of the mining industry" to battle rising resource nationalism and cost inflation, Reuters wrote.
BASE METALS
* KGHM Polska Miedz SA's consolidated first-quarter net profit fell 38% year over year to 439 million Polish zloty, on the back of lower output and sales, Reuters reported. The company also shut down its Sierra Gorda copper mine in Chile after a contractor died in an accident during routine maintenance work, according to a separate report from the newswire. The company also notified authorities to initiate an investigation.
* Arc Minerals Ltd. decided to increase its direct interest in the Zamsort copper-cobalt project in northwest Zambia to 49%.
PRECIOUS METALS
* Endeavour Mining Corp. booked an adjusted first-quarter net profit of US$28 million, compared to US$10 million a year earlier, after posting record gold production as all mines met or exceeded guidance. Gold output was up 39% year on year to 185,000 ounces, while all-in sustaining costs per ounce fell to US$774 from US$895 for continuing operations over the period.
* United Arab Emirates-based Sakthi Trading Group is seeking US$246 million in investments as it looks to construct two gold refineries in Africa, Reuters reported, citing company executives. The privately held gold trader plans to build the refineries and related processing centers in Ghana and the Democratic Republic of the Congo.
* The London Bullion Market Association suspended the Renova Group-controlled Ekaterinburg platinum groups metal processing plant from its gold and silver good delivery lists, effective May 14, citing "ownership related issues", Reuters reported. The Russian firm along with its key shareholder Viktor Vekselberg was sanctioned by the U.S. in April.
* Sibanye intends to shut loss-making production at Lonmin following their merger, Reuters reported, citing Justin Froneman, CFO of Sibanye's U.S region. "If we've got ounces that aren't covering their costs they will be taken out ... we have to do that. We can't let our shareholders absorb those kind of expenses."
* Golden Reign Resources Ltd. and Marlin Gold Mining Ltd. entered into a nonbinding letter of intent to combine their businesses and rename the resulting entity. The companies envisage Mako Mining Corp. as the new name.
* Jangada Mines PLC's ore volume at its Pedra Branca platinum group metals project in northeastern Brazil increased 50% to 34.5 million tonnes at 1.3 g/t of PGMs and gold, at a 0.3 g/t gold equivalent cut-off grade.
* Wheaton Precious Metals Corp. President and CEO Randy Smallwood told Mining Weekly that the company reached out to the Canadian Revenue Authority to settle a dispute over the income earned by the company's offshore subsidiaries, before the matter goes to the tax court in 2019, but has not secured a deal yet. Smallwood also said the company continues talks over three streaming deals worth over US$500 million and that management hopes to close the transactions over the next several months.
BULK COMMODITIES
* ThyssenKrupp AG bounced back in the black with an attributable net income of €243 million in the second quarter of fiscal year 2017-18, compared to a year-ago loss of €879 million. The improved income for the period comes despite a 12% year-on-year decline in order intake to €10.50 billion and a 2% fall in net sales to €10.75 billion.
* Responding to a query, Thyssenkrupp CFO Guido Kerkhoff said the company does not see any potential risks that a planned merger with Tata Steel Ltd.'s European operations can fall through, even though a crucial agreement between the Indian group and workers in the Netherlands has yet to be reached, Reuters reported.
* Tata Steel secured final court approval for the acquisition of debt-laden Bhushan Steel Ltd., Bloomberg News reported. The tribunal rejected objections to Tata's bid from Bhushan creditor Larsen & Toubro Ltd. and the steel company's workers. Tata offered 352 billion Indian rupees for the asset, and will also pay another 12 billion rupees to creditors and convert the remaining debt owed to banks to equity.
* Striking workers and Iron Ore Co. of Canada Inc. are mired in disagreement as the strike enters its eighth week. "There has been no contact with the company," said Brian Keough, the treasurer of the United Steelworkers Local 5795, which is the main union on strike. A spokesperson for the company did not respond to multiple requests for comment.
* Yara International ASA completed the US$255 million acquisition of Vale SA's Cubatão Fertilizantes complex in Brazil.
* China's Tianqi Lithium Corp.
* UBS has been reaching out to coal companies to convince them to acquire Wesfarmers Ltd.'s 40% stake in the Bengalla coal project in New South Wales, The Australian Financial Review's Street Talk reported. UBS was tasked with creating some competitive tension in a bidding process as Wesfarmers looks to exit coal, the report added.
* China Shenhua Energy Co. Ltd.'s commercial coal production in April declined 2.0% year over year to 24.0 million tonnes, while sales volume grew 21.6% to 42.8 million tonnes.
* Brazil's Cia. Siderúrgica Nacional is considering the sale of its Lusosider Projectos Siderúrgicos SA flat steel subsidiary in Portugal in an effort to cut debt, Metal Bulletin reported, citing CEO Benjamin Steinbruch. The decision is also motivated by the European Union's establishment of anti-dumping duties against hot-rolled coil from Brazil. Meanwhile, CSN plans to lift its flat steel prices by 7.5% to 10% by June due to the devaluation of Brazilian reais and higher international prices, Metal Bulletin reported.
* Outokumpu Oyj agreed to acquire the remaining 50% stake in the Fagersta steel wire rod mill in Sweden from joint venture partner Sandvik AB for 184 million Swedish kronor.
* PJSC Magnitogorsk Iron & Steel Works may delay a restart of the melt shop at its MMK Metalurji Sanayi Ve Liman Isletmeciligi AS unit in Turkey amid uncertainty due to the recent tariffs on the imports of steel and aluminum by the U.S. and the start of a safeguard investigation in the EU, Metal Bulletin reported.
* T2 Resources Fund Pty. Ltd. increased its takeover offer for all of the issued Realm Resources Ltd. shares to A$1.00 per share, valuing the company at over A$253 million. The previous off-market offer for each Realm share stood at 90 Australian cents apiece and the offer period is now also extended to June 11.
* MACA Ltd. executed a framework agreement to provide crushing and screening services for BHP Billiton's Area C iron ore project in Western Australia, beginning around October. The contract term is for three years plus two one-year options to extend, with the combined value of the works expected to generate revenues up to A$27.5 million per annum.
* Karnalyte Resources Inc., after a comprehensive review of its business, operations and strategy in the first quarter, updated its strategic plan and intends to diversify its business into two fertilizer products — potash and nitrogen.
* Whitehaven Coal Ltd. completed the acquisition of Idemitsu Kosan Co. Ltd.'s 30% joint venture interest in the Tarrawonga mine after it received ministerial consent and approval for the transfer.
* Australia's Northern Territory extended a moratorium on seabed mining to until 2021, ABC reported. The ban, first enacted for three years in 2012 and extended for another three years in 2015, aims to deter growing interest in deposits of manganese along the coast of Arnhem Land and the Gulf of Carpentaria.
SPECIALTY
* Argosy Minerals Ltd. plans to use the production from the pilot plant at its Rincon lithium carbonate mine in Argentina to attract financing for its commercial operations at the site, Reuters reported, citing Managing Director Jerko Zuvela. The project will start producing 500 tonnes per year of lithium carbonate equivalent in June.
* AMG Advanced Metallurgical Group NV announced the startup and commissioning of its first lithium concentrate processing plant at the Mibra mine in Brazil. The plant will supply 90,000 tonnes of lithium concentrate per annum.
* Galaxy Resources Ltd.'s updated definitive feasibility study for its Sal de Vida lithium project in northwest Argentina pegged a net present value of US$1.48 billion, discounted at 8%, a 26.9% internal rate of return and a payback period of three years.
* Lynas Corp. Ltd. said the fluctuations in its share prices may have been influenced by the recent change in the Malaysian government and not media articles, particularly a report that its rare earth refinery will undergo a review. The company reiterated that its operations are compliant with government standards.
INDUSTRY NEWS
* Gwede Mantashe, South Africa's mines minister, said the government aims to finalize and gazette the third version of the country's mining charter in June, later than his initial May target, Reuters reported.
* BMI Research said that the recent reimposition of U.S. sanctions on Iran is anticipated to have a limited impact on the country's mining and metals industry in the short term and is expected to do "little additional damage to an industry already crippled by a myriad of domestic operational challenges", Mining Weekly reported.
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