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Barrick's Australian gold mine stake draws interest from Kinross, Zijin, others


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Barrick's Australian gold mine stake draws interest from Kinross, Zijin, others


Kinross, Zijin mull bid for Barrick Gold's Kalgoorlie JV stake

The sale of Barrick Gold Corp.'s 50% stake in the Kalgoorlie gold project in Western Australia has attracted interest from Kinross Gold Corp. and Zijin Mining Group Co. Ltd., while ASX-listed Newcrest Mining Ltd., Northern Star Resources Ltd. and Evolution Mining Ltd. are also evaluating data on the mine ahead of possible indicative bids, which are due by October-end, Bloomberg News reported, citing people with the knowledge of the situation. The stake could be valued at about US$1 billion.

Anglo declares force majeure on delivery of coking coal at Australia mine

Anglo American Plc declared force majeure on the delivery of coking coal from the German Creek operation in Queensland, Australia, after longwall mining at Grasstree hit a dyke, several sources told Metal Bulletin. The company now plans to move to the next longwall panel.

Rio Tinto chief says Oyu Tolgoi expansion will take 10 years to generate dividend

Rio Tinto CEO Jean-Sebastien Jacques said it will take 10 years for any of the stakeholders to receive a dividend from the giant Oyu Tolgoi copper-gold mine in Mongolia, saying the planned US$5.3 billion underground expansion at the mine is a long-term project, Bloomberg News reported. Oyu Tolgoi is partly owned by the Mongolian government and Rio Tinto-owned Turquoise Hill Resources Ltd. "It will take us five years to build the infrastructure and seven to nine years to ramp it up."


* Strong winds in South Australia are hindering maintenance workers from fixing transmission towers, with restoration of the first damaged power circuit pushed back a day, The Australian Financial Review reported. The electricity provider, ElectraNet, told BHP Billiton Group that it can expect power back at its Olympic Dam copper mine in about five to six days.

* Chile's Second Environmental Tribunal ratified the fine of 850 million Chilean pesos ordered in August 2015 by Chilean environmental regulator SMA against Antofagasta Plc-owned port operator Antofagasta Terminal Internacional SA over pollution and health-related risks, magazine Minería Chilena reported.

* Copper Mountain Mining Corp. produced 22 million pounds of copper, 8,170 ounces of gold and 81,540 ounces of silver during the third quarter from its namesake Copper Mountain mine in British Columbia.

* Vedomosti and Kommersant reported that UGMK (UMMC) will be the only zinc producer in Russia. It received permission to consolidate 100% of the shares of Chelyabinsk Zinc Plant.

* The British Columbia Supreme Court allowed a lawsuit against Nevsun Resources Ltd. over forced labor at the company's Bisha zinc mine in Eritrea to proceed in British Columbia, but they would have to file separate cases, Reuters reported, citing a Canadian court.

* Unionized workers downed tools at Amerigo Resources Ltd.'s Minera Valle Central copper operation in Chile, after the 216-member union decided to reject the company's final wage offer.

* Boliden AB agreed to sell its Noralf aluminum fluoride operations at the Odda zinc smelter in Norway to Italian firm Fluorsid SpA, for €12.5 million. The divestment is in line with Boliden's strategy of increasing its focus on core zinc operations at Odda and expanding zinc output to 200,000 tonnes per annum from the second quarter of 2017.


* Goldcorp Inc. said negotiations with protesters blockading the Penasquito gold mine continue, while it remains unclear if access — or how much access — to the mine site has been regained.

* The controlled shutdown of Goldcorp's Penasquito gold-silver mine implies a cost of 25% of the project's production, the company's vice president of institutional relations, Brent Bergeron, said in an interview with news agency Notimex. Penasquito has a production capacity of 800,000 ounces of gold per year, daily El Financiero reported.

* Lowell Copper Ltd., Gold Mountain Mining Corp. and Anthem United Inc. completed their previously planned business combination to form JDL Gold Corp., a new company focused on gold and copper.

* South Africa's Association of Mineworkers and Construction Union President Joseph Mathunjwa said the latest wage talks with the country's platinum miners are not as hostile as they were in 2013, when failed negotiations resulted in a five-month strike, Bloomberg News reported. "There's a sense of understanding where the unions are coming from and also there's a realization in terms of the price of platinum," Mathunjwa said.

* Meanwhile, Reuters quoted Mathunjwa as saying that the wage negotiations are at a critical stage between AMCU and Anglo American Platinum Ltd., Impala Platinum Holdings Ltd., and Lonmin Plc. However, Mathunjwa did not say whether the union is backing down from its original demand of a nearly 50% pay increase.

* Coeur Mining Inc.'s third-quarter silver output totaled 3.5 million ounces, while gold production came in at 84,871 ounces. The company also lifted its full-year 2016 production guidance to between 34.4 million and 37.0 million silver equivalent ounces.

* Barrick Gold, IAMGOLD Corp., AurCrest Gold Inc., Goldcorp, TMAC Resources Inc., Newmont Mining Corp. and Gold Fields Ltd. are all investing in renewable energy to provide power to their operations, according to an Energy and Mines analysis.

* Mariana Resources Ltd. entered a binding term sheet to acquire an 80% interest in Awalé Resources SARL, which focuses on gold projects in the Ivory Coast.

* The Papua New Guinea Mineral Resources Authority rejected PNG Gold Corp.'s renewal application for two exploration licenses covering its Sehulea and Normanby gold projects in the country. The miner said it was surprised by the government's decision, as it has previously renewed the licenses without issues.

* Orinoco Gold Ltd. said the first gold is on its way for refining and sale from its Cascavel gold mine in central Brazil.

* Spitfire Materials Ltd. executed a conditional agreement to acquire the granted Western Australian gold exploration license E38/2869, known as the England gold project.

* Since the 50% devaluation of the ruble after 2014, Russian gold miners have been the most profitable and lowest cost in the world, but market valuations have not reflected this yet, according to Boris Yatsenko, head of metals and mining in Russia at EY.


* Fertilizer producers Agrium Inc. and Potash Corp. of Saskatchewan Inc. plan to hold separate shareholder meetings Nov. 3 to vote on their proposed merger. The deal requires two-thirds approval by shareholders of each company to proceed.

* BHP Billiton expects to complete the repair work on the tailings dam at the Samarco iron ore project in Brazil by the end of the year.

* France-based Alliance Miniere Responsable is seeking approval for a 15-year mining license to develop a US$200 million bauxite mine project in northern Guinea, Bloomberg News reported, citing the president of the explorer, Romain Girbal. The bauxite explorer is looking to complete the development of the mine, and ramp up annual production 5 million tonnes by 2019.

* The European Commission set provisional import duties on two grades of steel coming into the bloc from China, the Financial Times reported. The commission said the hot-rolled coil and heavy plate imported from China was being sold in the EU on heavily dumped prices.

* The International Finance Corp., part of the World Bank, is looking to complete a US$2.7 billion debt refinancing for the Nacala Corridor railway project in Mozambique in the first quarter of 2017, which is expected to help ease balance sheet pressure on Vale SA, Reuters reported, citing an IFC official. Vale is developing infrastructure for the Moatize coal mine in the African country.

* Union workers at Metallurgical Corp. of China Ltd.'s Sierra Grande iron ore mine have ended their strike, which started Sept. 19 after the company rejected their demand for a 22% wage increase. Workers accepted the addition of 1,500 Argentine pesos to their current salaries, which is part of the proposed 22% increase. The agreement will remain in force for the next six months, local daily ADN Rio Negro reported.

* Four people have died as a result of police opening fire in the Indian state of Jharkhand, where local villagers were protesting against NTPC Ltd.'s plans to open a new coal mine, reported. The locals claim that the state-run power generator infringed on forestry rights and failed to offer jobs and satisfactory compensation for their lands.

* Israel Chemicals Ltd. terminated its potash investment project in Ethiopia due to the country's failure to provide the infrastructure and regulatory framework required for the project. The net value of the project was about US$170 million as of June 30.

* Increased demand from Chinese steelmakers for iron ore and coal has prompted Australia to improve its price forecasts for the commodities by 10% for iron ore, to US$48.50 per tonne, and 16% for coking coal, to US$99.40 per tonne, CNBC reported.

* Tata Steel Ltd.'s hot metal and crude steel output rose 17% and 13% year over year, respectively, to 3.12 million tonnes and 2.82 million tonnes in its fiscal second quarter of 2017. The Indian steelmaker's salable steel output for the quarter increased by 11% to 2.73 million tonnes, while sales were slightly up on a yearly basis, to 2.62 million tonnes from 2.33 million tonnes. Separately, the steel major raised 10 billion Indian rupees through a private placement of 8.15% unsecured, nonconvertible debentures.

* Japanese aluminum buyers will be required to pay a premium of US$75 per tonne over the London Metal Exchange cash price for their shipments in the fourth quarter, a Reuters columnist wrote. The new settlement will set the benchmark for Asian physical aluminum markets and represents a 20% decrease from the previous quarterly, per-tonne premium of between US$90 and US$93.


* Rio Tinto is displaying in London the rarest pink, red and violet diamonds recovered from the Argyle mine at this time as part of a global showcase. The tender comprises 57 pink diamonds, two violet diamonds and four red diamonds and weighs 58.24 carats. The bids for the diamonds are set to close Oct. 12.

* ALX Uranium Corp. set up a special committee to deal with litigation started by Galena International Resources Inc. in which the latter claims the right to buy ALX's Mikwam gold property in Ontario.

* According to a report by BMI Research, the Chinese government is expected to ramp up rare earth element exports in an effort to regain control over pricing policy, reversing its previous export-restrictive strategy, Mining Weekly reported.


* Market caps for the top 25 companies rose by an aggregate 10% on a quarterly basis, as of the September quarter-end, and the same group saw their value improve 32% year on year, according to an SNL Metals & Mining research report. Debt reduction initiatives have played a central role in companies improving their standing among investors.

* According to Reuters, Brazil's Ministry of Mines and Energy signed a cooperation agreement with the National Department of Mineral Production and the Geological Survey of Brazil to improve the environment for mining investment and related administrative procedures. The plan is to accelerate investment in 20,000 areas available for concession by the National Department, daily DCI Diário Comércio Indústria & Serviços reported, citing the secretary of Geology, Mining and Mineral Transformation, Vicente Lôbo.

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