trending Market Intelligence /marketintelligence/en/news-insights/trending/lxl6emx2nydhlv6vv3tgxq2 content esgSubNav
In This List

Chile seeks to block SQM stake sale to Chinese company

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


Chile seeks to block SQM stake sale to Chinese company

TOP NEWS

Chile seeks to block SQM stake sale to Chinese company

Chilean development agency Corfo filed a complaint with antitrust regulators to block the sale of a 32% stake in lithium producer Sociedad Quimica y Minera de Chile SA to Tianqi Lithium Industries Inc., on the grounds that the transaction would give China an unfavorable advantage in the race to secure resources for the development of electric vehicles and would "gravely distort market competition," Reuters reported. Nutrien Ltd. is required to off-load the SQM stake as part of its merger between Agrium Inc. and Potash Corp. of Saskatchewan.

Newcrest halts Cadia ops following tailings dam breach

Newcrest Mining Ltd. halted operations at its Cadia gold mine in New South Wales, Australia, due to a discovered breach at its northern tailings dam. The company is assessing the impact on operations, which will remain suspended pending further investigation. Newcrest added that it has secured the area around the dam, and that it has contained the release within the southern tailings dam.

Rio Tinto's remaining 2 coal mines to draw bids of up to US$2.5B

The last two coal mines in Rio Tinto's portfolio are set to draw at least three bids, Reuters reported, citing anonymous sources due to confidentiality agreements. Whitehaven Coal Ltd., a tie-up between EMR Capital and PT Adaro Energy Tbk., and a consortium led by Apollo Global Management are said to be vying for Rio Tinto's stakes in the Hail Creek and Kestrel mines, which could fetch up to US$2.5 billion. Meanwhile, EMR teamed up with Adaro after collaboration talks with China Investment Corp. failed.

BASE METALS

* Unionized workers at Antofagasta Plc's Los Pelambres copper mine in Chile voted in favor of a strike after rejecting the company's latest offer for a collective labor deal, Mining.com reported.

* Botswana's minerals minister, Sadique Kebonang, confirmed the government paid PJSC Norilsk Nickel Co. US$45 million to settle a dispute over a botched asset sale, Reuters reported. State-owned BCL Mine in October 2016 backed out of a deal to acquire Norilsk Nickel's 50% stake in the Nkomati nickel mine in South Africa due to lack of funds, which prompted the company to proceed with a lawsuit.

* Indonesian state miner PT Timah Tbk. aims to increase its CapEx by 240% this year to 2.65 trillion rupiah, in order to boost tin production and diversify business, The Jakarta Post reported. The miner is aiming to lift its 2018 tin ore output by 13.9% year over year to 35,500 tons.

* Indonesia's nickel output is expected to increase by 20% year over year to 480 kilotonnes in 2018, according to a report by BMI Research. The country's average nickel production is expected to grow 8.1% in the 2018 to 2027 period, and is expected to outperform all other global nickel producers, The Jakarta Post wrote.

* Codelco struck a deal with Ecuador for the joint development of the Llurimagua copper project in the country, Reuters reported. The Chilean copper miner will hold a 49% stake in the joint venture, while Ecuador will hold 51% of the project through Enami EP.

* Cobalt 27 Capital Corp. raised about C$200.1 million to fund the acquisition of cobalt-related streams and royalties, and for general corporate purposes.

PRECIOUS METALS

* Peel Mining Ltd. spinout Saturn Metals Ltd. started trading on the ASX on March 9, after completing a A$7 million IPO in February.

* South African gold producers will likely reach a settlement with mine workers over the silicosis lawsuit within six weeks, Reuters reported.

BULK COMMODITIES

* Prime Minister Malcolm Turnbull confirmed that Australia secured exemption from the recently announced steel and aluminum tariffs by the U.S., ABC reported.

* The European Union and Japan are working to secure an exemption from the Trump Administration's steel and aluminum tariffs, but trade representatives from the U.S., Europe and Japan emerged from meetings in Brussels on March 10 without a deal on the issue.

* Meanwhile, the EU warned that it would approach the World Trade Organization in 90 days "to protect our industry with rebalancing measures, safeguards" if its products are not exempted, EU Commissioner Cecilia Malmstrom said.

* South Korea is considering filing a complaint with the World Trade Organization against the U.S. if it is not exempted from the tariffs imposed by the Trump administration, The Korea Herald reported. The Chinese Commerce Ministry joined the chorus of critics against the tariffs, calling it the "destruction of the multilateral trade system" backed by the WTO that would have a "serious impact" on global trade, The Associated Press reported.

* Magnitude 7 Metals LLC plans to resume operations at its shuttered aluminum smelter in southeastern Missouri following the U.S. government's move to slap tariffs on aluminum and steel, Reuters reported. The work is underway to prepare the first production potline to restart in the second quarter, with the second potline to resume in the third quarter. The company is expected to recall about 400 workers, according to state representative Don Rone.

* Norsk Hydro ASA admitted that it released excess rainwater from its Alunorte bauxite facility in Brazil using a canal which was not covered by the company's license in February, but maintained that there were no leaks or overflow at the site. The company added that there was no indication that the controlled release resulted in any negative environmental impact. Norsk was directed by authorities to cut Alunorte operations by half after speculation about a leak at the site.

* ArcelorMittal and Numetal, a Mauritius-based investment vehicle backed by Russia's VTB Group, indicated that they will pursue legal actions if their bids for debt-laden Essar Steel India Ltd. are disqualified, Mint reported. A committee of Essar Steel lenders will decide the eligibility of the offers.

* Teck Resources Ltd. cut its sales guidance on steelmaking coal for the first quarter to approximately 6 million tonnes from the previous range of between 6.3 million and 6.5 million tonnes. The revised guidance stems from issues at its Elkview operations in British Columbia and logistical problems at the Westshore Terminals, which are hitting sales.

* Adani Enterprises Ltd. will proceed with its Carmichael coal mine in Queensland, vowed Adani Australia CEO Jeyakumar Janakaraj, adding that Australia's investment reputation will be damaged if a new government moves to scrap projects that had already secured state and federal approvals, The Australian Financial Review reported. Janakaraj said the "flood of misinformation" from the opponents would not stop the project from moving ahead.

* China's Tangshan city will extend restrictions on steel mills' output to Nov. 14 after current limits expire next week as the city government continues to work toward curbing air pollution, Reuters wrote, citing the Tangshan Iron and Steel Association.

* GCM Resources Plc's share price jumped nearly 19% in noon trade in London after it announced a joint development agreement for the Phulbari coal and power project in Bangladesh with China Gezhouba Group International Engineering Co. Ltd.

* Under recently issued regulations, the Indonesian government capped domestic coal prices for power stations at US$70 per ton for two years, Reuters reported, citing energy ministry spokesman Agung Pribadi.

* The standard operating procedure for bauxite mining activities in Pahang, Malaysia, is expected to be completed by June, as the moratorium on bauxite mining in the area is set to expire June 30, Malay Mail Online reported, citing Natural Resources and Environment Minister Datuk Seri Wan Junaidi Tuanku Jaafar.

SPECIALTY

* U.S. miner Albemarle Corp. secured approval from Chile to increase its production quota to about 145,000 tonnes of lithium carbonate equivalent per year, through 2043.

* Chile approved investments of about US$754 million in the lithium industry by Chinese, South Korean and Chilean companies, Reuters reported, citing the country's development agency, Corfo. Chile's Molymet and Sichuan Fulin Industrial Group, a joint venture between Samsung SDI Co. Ltd. and POSCO, were selected in a bidding process to develop technology focused on the lithium market, which will see the companies ready to produce about 58,000 tonnes of cathode annually in two years.

* Two industry groups in the U.S. filed petitions in the Supreme Court seeking a reversal of the 20-year ban against new uranium mining claims on more than 1 million acres of public land adjacent to the Grand Canyon National Park in Arizona, Reuters reported. The ban was instituted by the Obama administration in 2012.

* FMC Corp. named executives that will lead its lithium business spinoff, which is due in the second half. CFO Paul Graves was appointed the new company's CEO, while FMC President, CEO and Chairman Pierre Brondeau will serve as the new company's chairman. Andrew Sandifer, vice president and treasurer, was appointed FMC's new CFO to replace Graves.

* Magnis Resources Ltd. restructured its Nachu graphite project on the back of changes to Tanzania's mining legislation in 2017 and amended its special economic zone license with the government.

INDUSTRY NEWS

* Democratic Republic of the Congo President Joseph Kabila signed the new mining code into law, which will raise mining royalties, Reuters reported, citing a government statement. Mining executives from Ivanhoe Mines Ltd., Glencore Plc, Randgold Resources Ltd. and China Molybdenum Co. Ltd. in a March 7 meeting failed to convince Kabila to restart negotiations on the new policies. However, the two sides will start talks over measures to implement the code, said Mines Minister Martin Kabwelulu, adding that miners' concerns will be heard.

S&P Global Market Intelligence is owned by S&P Global Inc.

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