TOP NEWS
Fortescue's FY'19 earnings surge driven by strong iron ore prices
Fortescue Metals Group Ltd. posted a record fiscal 2019 net profit of US$3.19 billion, or 1.031 cents per share, surging 263% from US$878 million, or 28.1 cents per share, driven by strong iron ore prices earlier this year. The company declared a fully franked final dividend of 24 Australian cents per share to bring the annual total to A$1.14 per share, up 396% from last year's dividend of 23 cents per share.
China to strike back at US with tariffs on US$75B of imports
China's State Council Tariff Commission will impose 5% to 10% of tariffs on about US$75 billion of U.S. imports in two batches, effective Sept.1 and Dec. 15, paralleling with the dates set by the U.S. to impose latest tariffs on US$300 billion of Chinese imports.
China Shenhua's H1'19 profit slips YOY
China Shenhua Energy Co. Ltd.'s attributable net profit in the first half slipped 1.1% to 24.24 billion Chinese yuan, or 1.22 yuan per share, from last year's 24.52 billion yuan, or 1.23 yuan per share. Revenue dropped 8.6% to 116.37 billion yuan as EBITDA fell 8.9% to 47.62 billion yuan.
BASE METALS
* The price of nickel has shot up over 50% since the beginning of the year and exceeded US$16,000 per tonne in early August, but the industry in Russia remains dominated by Arctic behemoth PJSC Norilsk Nickel Co., with only two other significant projects on the horizon, according to an exclusive S&P Global Market Intelligence report.
* Southern Copper Corp. may consider a review of its US$300 million development budget for the Tia Maria copper project in Peru following the Peruvian government's recent suspension of the company's construction permit, Mining.com reported.
* A South African High Court judge refused Zambian state-owned ZCCM Investments Holdings PLC's leave to appeal a previous ruling that stopped the sale of Vedanta Resources Ltd.'s Konkola Copper Mines PLC unit pending arbitration, Reuters reported.
* Trafigura Investment (China) Co. Ltd. lodged a winning bid of 370.6 million Chinese yuan for 9,331.86 tonnes of refined copper in an auction by the Qingdao Intermediate People's Court in China, Reuters reported, citing JD.com.
* S&P Global Market Intelligence calculates that mined zinc production rose globally by 3.9% to 3.4 million tonnes in the June quarter, from 3.2 Mt in the same period of 2018.
* Mbuyisa Moleele and law firm Leigh Day are preparing a legal class action on behalf of Zambian communities against Anglo American PLC, claiming that the Kabwe lead mine, which closed in 1994, caused lead poisoning to nearby community members, Miningmx reported. The company denied responsibility, saying that the Zambian government operated the mine for over 20 years until its closure and that the mining giant was never a majority owner.
* Chilean copper output gained 0.1% year over year in the June quarter to 1.4 million tonnes, while first half output declined 2.5% year over year to 2.8 Mt, according to the Metals and Mining Research at S&P Global Market Intelligence.
* Hong Kong Exchanges & Clearing Ltd.'s mainland China-based Qianhai Mercantile Exchange started trading in copper rods on top of its existing trade of alumina and aluminum products, Reuters reported.
* Jubilee Metals Group PLC completed the acquisition of the Sable zinc refinery in Zambia.
* Jervois Mining Ltd. started trading on the OTCQB Venture Market in the U.S. under the symbol JRVMF.
PRECIOUS METALS
* Sibanye Gold Ltd. received a favorable ruling from Delaware's Court of Chancery in the U.S. in a dispute with dissenting shareholders of Stillwater Mining Co. over Sibanye's acquisition of Stillwater for US$18 per share.
* Northam Platinum Ltd. swung to a net profit of 60.1 million South African rand in its fiscal 2019 from a year-ago loss of 705 million rand. Sales revenue in the year surged 41.0% to 10.65 billion rand as 4E sales climbed 20.7% to 570,933 ounces and 6E sales increased 19.6% to 657,362 ounces. Operating profit grew 192.7% to a record 2.41 billion rand.
* Chinese gold producer Hunan Gold Corp. Ltd.'s net profit attributable to shareholders in the first half dropped 39.2% year over year to 84.0 million Chinese yuan. Operating revenue rose 27.6% year over year to 8.37 billion yuan.
* Barrick Gold Corp. plans to invest US$34 million to prolong the mine life of its Veladero gold joint venture with Shandong Gold Mining Co. Ltd. in Argentina until 2028, Mining.com reported, citing CEO Mark Bristow.
* Ramelius Resources Ltd.'s fiscal 2019 profit dropped 29.1% to A$21.8 million from A$30.8 million due to higher operating costs driven by lower grades at the Vivien gold mine in Western Australia.
* Duketon Mining Ltd. entered a binding agreement to sell a package of gold tenements from its namesake project in Western Australia to Regis Resources Ltd. for A$25 million.
* Talisman Mining Ltd. secured an option to acquire up to 70% of the Lucknow gold project in New South Wales, Australia, by spending at least A$1.5 million on exploration over four years and issuing A$250,000 in shares to Lucknow Gold Ltd.
* Arrow Minerals Ltd. completed the acquisition of Boromo Gold Ltd. and its six gold exploration projects in Burkina Faso.
* O3 Mining Inc. completed its acquisition of Harricana River Mining Corporation Inc. and its Harricana gold project in Quebec for 773,196 shares.
* Newmont Goldcorp Corp. said holders of US$575.3 million, or 95.89%, of its 5.875% notes due 2035 have consented to amendments to the note's terms, releasing Nevada Gold Mines LLC, as guarantor.
* RNC Minerals Corp. started mining at its Baloo Stage I open pit that will supply the processing plant at its Higginsville gold operation in Western Australia with about 30,000 tonnes per month of material.
* Fraser Range Metals Group Ltd. signed a conditional agreement to acquire Wildcat Resources Ltd., which holds the 200-square-kilometer Mount Adrah gold project in south-central New South Wales, Australia.
* Platinex Inc. cancelled its plan to exit mining and acquire cannabis firm InLove Corp. due to market conditions. The company now wants to focus advancing its mining assets, including the Shining Tree gold property in Ontario.
BULK COMMODITIES
* Aluminum giant China Hongqiao Group Ltd. reported a 37.3% year-over-year jump in net profit to 2.48 billion Chinese yuan for the first half, with the prior-year results including a loss of 648.8 million yuan on disposals of subsidiaries. As a result of a recent typhoon, some of the company's workshops were damaged by rain, with preliminary estimates indicating a hit to full year output of 200,000 to 300,000 tonnes.
* China Zhongwang Holdings Ltd. posted a first half net profit of 1.47 billion Chinese yuan, climbing 15.7% yearly from 1.27 billion yuan on higher sales for its aluminum products.
* En+ Group IPJSC made adjustments to its previously announced first half earnings after recognizing the positive impact of subsidiary Norilsk Nickel's own financial results. For the first half, En+ recorded a yearly decrease in first half net profit to US$863 million, or 91.5 cents per share, from US$1.04 billion, or 93.3 cents per share.
* A group owned by Russian telecommunications magnate Albert Avdolyan is looking to acquire a 49% stake in the Elga coal project in Russia from Gazprombank OJSC, Reuters reported.
* Whitehaven Coal Ltd. will increase its stake at the Narrabri coal mine in New South Wales, Australia, to 77.5% from the current 70%, by acquiring EDF Trading Australia Pty Ltd., which owns a 7.5% stake in the mine.
* About 150 jobs are at risk once U.S. Steel Corp. proceeds with its planned shutdown of a plant in Indiana by mid-November, part of its move to consolidate till mill operations in the U.S., Reuters reported.
* Coal demand from China is expected to peak around 2025 on the back of demand from its utilities and other industrial sectors, Reuters reported, citing state-owned think tank CNPC Economics and Technology Research Institute. Compared to 2018, coal consumption in China is expected to drop 18% by 2035 and 39% by 2050.
* Ferroglobe PLC welcomed the Canadian International Trade Tribunal's decision to retain anti-dumping and countervailing duties on silicon metal imports from China for another five years.
* Kommersant reported that, according to estimates by the Ministry of Energy, the Russian Federation will produce 550 million tonnes to 670 Mt of coal by 2035, a 25% to 52% increase over the record level of production in 2018. Most of the production is planned to be exported by rail to Asia-Pacific countries.
* Rescuers are trying to find a worker who was buried alive following a wall collapse at OM Holdings Ltd.'s Bootu Creek manganese mine in Australia's Northern Territory, The Guardian reported.
* Canada will implement measures to prevent the transshipment of aluminum into the U.S. following the U.S.'s removal of tariffs on imports of aluminum and steel from Canada, Fastmarkets MB wrote.
* Glencore PLC and Trafigura bought a total of 70,479 tonnes of aluminum from an auction by the Qingdao court in China over the last week, Reuters reported, citing the e-commerce platform that hosted the sales.
SPECIALTY
* Lynas Corp. Ltd. may have to build its own chemicals plant in Western Australia or engage former suitor Wesfarmers Ltd. to supply sulfuric acid and other chemicals to be used for its planned cracking and leaching plant in the state, one of the conditions under its renewed operating license for the Gebeng rare earths processing plant in Malaysia, The Australian Financial Review reported.
* MP Materials is moving to revive its mothballed refining equipment at its Mountain Pass rare earths mine in California after China raised its tariffs on U.S. rare earths imports for refining, Reuters reported.
* Orocobre Ltd. finalized a 9.5-year, US$180 million finance facility, which will fund the stage two expansion of the Olaroz lithium facility in Argentina.
* Koppar Resources Ltd. commenced a scoping study for its Vulcan lithium project in Germany, with completion expected after 12 months.
* Gemfields Group Ltd. raked in US$18.6 million from its latest auction of rough emeralds mined from its Kagem mine in Zambia.
* In September, PJSC Alrosa will host its second annual True Colors auction in Hong Kong where more than 200 polished diamonds will be up for sale.
* China's exports of rare earth magnets to the U.S. totaled 447 tonnes in July, rebounding 8% from June and up about 26% year on year, Reuters reported, citing customs data.
* Argosy Minerals Ltd. executed a nonbinding heads of agreement with Mitsubishi Corp. unit Mitsubishi Corporation RtM Japan Ltd. to supply 2,000 tonnes per annum of lithium carbonate product from its Rincon lithium project in Argentina.
INDUSTRY NEWS
* Tesla Inc. agreed to buy batteries from LG Chem Ltd. for electric vehicles made in China, Bloomberg News reported, citing people familiar with the matter.
* China will increase its tariffs on imports of copper and aluminum scraps from the U.S. by 5%, Reuters reported, citing a list by the Chinese finance ministry.
* Thirty-four companies have pledged to join Business for Inclusive Growth, an initiative launched at the G-7 Leaders' Summit that aims to take concrete actions to address inequality and promote diversity in their workplaces and supply chains.
* A federal appeals court handed environmental groups a victory by ordering the U.S. Environmental Protection Agency to reconsider its secondary 2015 ozone standard aimed at preventing damage to plants and animals.
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