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UK to help secure sale of Tata Steel assets; ArcelorMittal launches US$3B debt buyback; De Beers 3rd sale fetches US$660M

Industry Top Trends 2021: Metals and Mining

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


UK to help secure sale of Tata Steel assets; ArcelorMittal launches US$3B debt buyback; De Beers 3rd sale fetches US$660M

TOP NEWS

Britaincould offer loan, co-invest to secure sale of Tata Steel assets

A government source told Reuters that the British governmentcouldoffer a state loan on commercial terms to help spark buyers' interest forTata Steel Ltd.'sPort Talbot steelworks, but noted that there is only a remote possibility thatthe state would take an equity share in the asset. However, an earlier reportfrom the newswire cited British business minister Sajid Javid as saying thatthe government would consider co-investingon commercial terms to secure the sale of Tata Steel's steelmaking assets inthe U.K. Javid said the government had appointed Ernst and Young to act as itsfinancial adviser on any deal but noted that he was unableto guarantee that there would be no further job losses in the country'ssteel industry.

ArcelorMittal launched a to purchase all of itsoutstanding US$1.50 billion 6.125% notes, due 2018. Concurrently, the companyinvited offers to sell all bonds in relation to its €1.0 billion 4.625% notes,due Nov. 17, 2017, and €500.0 million 4.50% notes due March 29, 2018.

Anglo AmericanPlc said the value of rough diamond sales for unit 's third cycle of 2016provisionally totaled US$660million as of April 11, compared to US$617 million for the secondcycle. The company attributed the increase to "continued stability inpolished diamond prices and sales of polished diamonds at the wholesale level,"which helped the demand for rough diamonds.

DIVERSIFIED

* ValeSA's US$2.25 billion notes due in 2022 have jumped25% since the start of February amid a recovery in iron prices. Theincrease has beaten gains in the debt of top rivals and , Bloomberg Newsreported.

* West Australian Premier Colin Barnett slammed Rio Tinto'smove to delay payments for suppliers, cautioning that it could push contractorsto collapse, The Australian FinancialReview wrote.Barnett said he hopes the mining giant would reverse the decision and furthernoted that shifting the financial burden to local contractors is not a goodpolicy.

BASE METALS

* According to Reuters, Indonesian businessman GustaafMerukh requested a Jakarta court to haltany deal that would involve a sale of a local company's 17.8% stake inNewmont MiningCorp.'s Indonesian operations. Merukh owns a stake in PT PukuafuIndah and is suing other shareholders of the company for faking his consent touse Pukuafu's 17.8% interest in PT Newmont Nusa Tenggara as collateral to secure aUS$600.0 million loan in 2012.

* ParanapanemaSA will sell its mothballed Capuava copper pipe plant in Brazil,and the area surrounding it totaling about 150,000 square meters, for about 150million Brazilian reais. The company entered the sale and purchase agreementwith Plano Madeira Empreendimentos Imobiliários Ltda., a subsidiary of Plano& Plano Construções e Empreendimentos Ltda.

* GlobalGeoscience Ltd. executed a binding term sheet to a global logistics management softwareplatform, GetSwift, in its bid to transform "into a new company in a newindustry."

* FTI Consulting, the administrator of , said ClivePalmer acted as shadowdirector of the mothballed refinery despite resigning as a director inFebruary 2015 and referred the politician to the ASIC, The Australian Financial Review reported. In its report, FTIConsulting found that Queensland Nickel made a number of"uncommercial" transactions — including A$224 million siphoned offfrom the refinery to Palmer's other interests, including his political party —that could be recovered by a liquidator.

* JinduichengMolybdenum Co. Ltd. produced 42,025 tonnes of molybdenumconcentrates in 2015, up7.19% from a year ago. The company did not propose a dividend for2015, as it needs to "speed up adjustment in product mix and facilityupgrade." This compared to an annual dividend of 40 fen per 10 shares in2014.

* PanAustLtd. Managing Director Fred Hess said the miner has "greaterfinancial capacity" after being acquired Guangdong Rising AssetManagement in 2015 and is keen on buying copper assets while prices are low, The Australian Financial Review reported.Hess, however, said they have yet to find one asset that gets the companyexcited.

* Anglo American confirmed that a rescue helicopter fellnear its LosBronces copper project in Chile on route to rescue a company workertrapped inside the mine on the afternoon of April 4. Four people were injuredas a result of the crash.

* Taseko MinesLtd. entered into an agreement to up to 75% of power costs for theGibraltarcopper mine in British Columbia, retroactive to March 1.

* Central AsiaMetals Plc's net profit from continuing operations to US$22.4 million in2015 from US$59.7 million a year ago. The company sold 11,750 tonnes of coppercathode, compared to 10,687 tonnes in the prior year, as part of its off-takearrangements with Traxys at Kounrad in Kazakhstan and a further 290 tonneslocally, compared to 476 tonnes a year ago.

* Orsu MetalsCorp. agreed to sell its 94.75% interest in , which owns the company'sKarchigacopper-gold-zinc project in Kazakhstan, for an initial US$7.8 million, plusdeferred consideration of up to US$2 million.

PRECIOUS METALS

* NewcrestMining Ltd. restartedmining at the Toguraci gold mine, part of the operation on HalmaheraIsland in Indonesia. Mining was suspended at Gosowong following a geotechnicalevent in early February that trapped one worker 300 meters underground in theKencana mine. It took eight days to rescue the worker.

* RichmontMines Inc.'s Island gold mine in Ontario 26,589 ounces of gold in thefirst quarter — a 147% increase over output in the same period in 2015 — pushingthe company's total gold production for the quarter to a record 32,369 goldounces. The company also posted record revenues of C$52.6 million in the firstthree months of the year.

* Torex GoldResources Inc. said arrangements have been made to the illegal blockade at itsEl Limon-Guajesgold mine in Mexico on April 14. Between now and then, operations and contractorpersonnel will be mobilized to site and the operations will be re-started onnight shift of the same day.

* TengriResources plc signed a conditionalagreement to sell its Kami Associates Ltd. and Tatianna Ltd. units toSocagest SA for US$6 million. The Tengri subsidiaries hold the company'smineral exploration and development operations in Talas, Kyrgyz Republic.

* MarianaResources Ltd. withdrewfrom its earn in agreement with Sumin Resources Ltd. for the gold project inSuriname, citing lower than expected results and milestones achieved."Mariana has earned a direct interest of 10.2% in the Nassau gold projectthrough exploration expenditures to date, and will monitor any progress made bySumin on the property and maintain this interest as warranted," saidMariana CEO Glen Parsons.

* GreatThunder Gold Corp. said it will secure of the 2,114-hectareBRX goldproperty in British Columbia by purchasing the 50% interest from its jointventure partner, Levon ResourcesLtd. The company would issue 3.0 million shares and grant a 2.5%net smelter returns royalty, 60% of which can be bought back for US$750,000.

* The syndicate of underwriters for 's bought dealpublic offering to raise about US$550 million their over-allotmentoption in full, increasing the gross proceeds by a further US$82.5 million. Thecompany would now raise total gross proceeds of US$632.5 million with the issueof an additional 4,970,250 common shares at US$16.60 per share.

* Hunan GoldCorp. Ltd. expected to post a net loss attributable to shareholders of between 1million Chinese yuan and 10 million yuan in the first quarter, which is lowerthan its previous estimate of between 20 million yuan and 30 million yuan. Theimprovement was due to better than expected sale prices and volumes of gold andantimony in the first quarter.

* Golden BandResources Inc. said its senior secured lender, , for the payment byApril 18 of all amounts due and owed totaling C$19.6 million, exclusive ofprofessional fees and costs. The company also received from the lender a Noticeof Intention to Enforce Security under Canada's Bankruptcy and Insolvency Act.

* NewCastleGold Ltd. entered into an agreement with under which thecompanies have agreed to create a new 2.65% royalty covering all of NewCastle's goldproject claims in California, in exchange for approximately C$2.2 million.

* A worker was fatally injured in a fall of ground accident atHarmony Gold Mining Co.Ltd.'s Kusasalethu gold project in South Africa. The companyhas suspended activities on the level where the incident occurred andinvestigations are ongoing.

BULK COMMODITIES

* A government source told Reuters that the Britishgovernment couldoffer a state loan on commercial terms to help spark buyers' interest forTata Steel Ltd.'sPort Talbot steelworks, but noted that there is only a remote possibility thatthe state would take an equity share in the asset. However, an earlier reportfrom the newswire cited British business minister Sajid Javid as saying thatthe government would consider co-investingon commercial terms to secure the sale of Tata Steel's steelmaking assets inthe U.K. Javid said the government had appointed Ernst and Young to act as itsfinancial adviser on any deal but noted that he is unableto guarantee that there would be no further job losses in the country'ssteel industry.

* ArcelorMittal launched a to purchase all of its outstandingUS$1.50 billion 6.125% notes, due 2018. Concurrently, the company invitedoffers to sell all bonds in relation to its €1.0 billion 4.625% notes, due Nov.17, 2017, and €500.0 million 4.50% notes due March 29, 2018.

* U.S. steelmakers, including ArcelorMittal USA and twoother American companies, lodgedantidumping and countervailing duty petitions against cut-to-length carbon-qualitysteel plate makers from South Korea, Austria, China, Brazil and eight othercountries with the U.S. International Trade commission and the Department ofCommerce, The Korea Herald wrote. Thecompanies sought antidumping duties of up to 244.1% on imported South Koreansteel plates of the type.

* More than 40,000 steelworkers in Germany took part in a protestagainst Chinese steel dumping, EU climate regulations and industryconsolidation, fearing the issues will cost them their jobs, Reuters wrote. Thedemonstration was organized by trade union IG Metall and was supported byGerman Economy Minister Sigmar Gabriel.

* Meanwhile, German metals sector companies are set to tablea wageoffer to unions, Reuters wrote citing Arndt Kirchhoff, who is leadingnegotiations on behalf of the companies in the state of North Rhine-Westphalia.Kirchhoff declined to provide details of the offer but the report said union IGMetall has demanded a 5% wage increase for 3.8 million metals and electricssector workers.

* The French economy minister urged the European Commissionto raiseimport tariffs to similar levels as that of the U.S. to support Europe'sstruggling steel industry. According to Reuters, the EU has set tariffs at anaverage of 20%, compared to the U.S., where tariffs are around 300%.

* According to the FinancialTimes, Tomas Gutierrez at Kallanish Commodities said China's efforts to restrictsupplies of steel has helped buoy prices but will not stop overall steeldemand from falling.

* PJSCUralkali returned toprofit in 2015, buoyed by a higher EBITDA margin and drop in cashcosts, but weaker demand for potash fertilizers and a drop in output weighed onthe company's bottom line. Net profit amounted to US$184 million for the fullyear, compared to a loss of US$631 million for 2014.

* PAOSeverstal posted a 2%year-over-year decrease in crude steel production to 2.9 milliontonnes in the first quarter, while hot metal production inched up 2% to 2.4million tonnes. Consolidated steel products sales slipped 4% to 2.4 milliontonnes, with sales for Russian Steel products also decreasing by 4% to 2.5million tonnes.

* AlcoaInc.'s net income during the first quarter to US$16 million, compared withthe net income of US$195 million in the same period in 2015. Revenue slid 15%year over year to US$4.95 billion largely as a result of continued low aluminaand aluminum prices, foreign exchange impacts and divested, curtailed or closedoperations. First-quarter net income was also impacted by US$92 million worthof special items including restructure-related costs of US$63 million, of whichabout 75% was noncash.

* New WorldResources Plc produced 1.87 million tonnes of coking and thermal coalin the first quarter. It sold 1.12 million tonnes of coking coal and 805,000tonnes of thermal coal priced at €76 per tonne and €47 per tonne, respectively.

* WollongongCoal Ltd.'s A$150 million short-term drawdown facility with itsmajor shareholder Jindal Steel& Power (Mauritius) Ltd. has been to A$175 million and renewedtill March 31, 2017, from March 31, 2016. To date, the company has drawn aroundA$153.3 million under the facility to meet its operational and developmentalcosts.

* AustralianBauxite Ltd. completed the maiden sale of 5,000 tonnes of cement-grade bauxite fromits Bald Hill mine, part of its Tasmania operations in Australia, and shipping willstart from April 18.

* ChampionIron Ltd. completed the acquisition of the Bloom Lake iron ore mine and relatedassets, and the Quinto Mining Corp. mineral claims in Quebec. The acquisitionwas funded via a private placement of up to C$30 million, including the issueof 187.50 million ordinary shares at 16 Canadian cents per share.

* A Brazilian Federal Court judge dismisseda class action that challenged the ownership of several properties ofCompanhia SiderúrgicaNacional in Volta Redonda, Rio de Janeiro, Valor Econômico reported. The action aimed at returning theseproperties to the federal government, said the company in a statement.

* Vale aims at overtakingits Australian competitors and become the largest supplier of iron ore fromChina, Valor Econômico reported,citing a statement by CEO Murilo Ferreira to Chinese news agency Caixin.Currently, the company is the third largest supplier after Rio Tinto and BHPBilliton Group. By reaching agreements with Chinese ship owners and setting upa distribution center in China, Vale aims to reach 250 million tonnes of annualsupply, an increase of 38.9%.

* The Indian government said it willonly allow the merger of Cairn India Ltd. with Vedanta Ltd. once Cairn's tax liability of 102.5 millionIndian rupees is settled, the Press Trust of India reported.

* ArriumLtd.'s recently appointed administrator Grant Thornton is set to beoustedfrom the position in a court hearing in Sydney and would be replaced byKordaMentha, The Australian FinancialReview reported.

* The total mineral resource at 's coal project in Tanzaniaincreased 10.42% overthe previous estimate to 120.8 million tonnes. The coal resource wasreclassified into measured resources of 20.9 million tonnes, indicatedresources of 88.6 million tonnes and inferred resources of 11.28 million tonnes.

SPECIALTY

* AngloAmerican Plc said the value of rough diamond sales for unitDe Beers SA's thirdcycle of 2016 provisionally totaled US$660 million as of April 11, compared toUS$617 million for the second cycle. The company attributed the increase to"continued stability in polished diamond prices and sales of polisheddiamonds at the wholesale level," which helped the demand for roughdiamonds.

* CazalyResources Ltd. recently acquired a 100% interest in lithium prospectivetenements in the Goldfields of Western Australia. Reconnaissance field workidentified several pegmatites to be mostly under cover and would require moredetailed work to define their extent.

* SayonaMining Ltd. continued to advance its lithium exploration portfoliowith a newapplication of 140 square kilometers at Cooglegong, covering thenorthern part of the Shaw River tin field in Western Australia's Pilbaradistrict. The company's Pilbara lithium project now covers six tenementscovering 764 square kilometers.

* LucapaDiamond Co. Ltd. recoveredmore large special and fancy-colored diamonds from trial mining of the E46alluvial terraces at the Lulo project in Angola.

* South Africa's Department of Water and Sanitation hasapproved 's water uselicense application to support long-term diamond mining operations at thecompany's Krone-Endora atVenetia project in the country's Limpopo province.

INDUSTRY NEWS

* Australian Prime Minister Malcolm Turnbull acknowledged theneed for the government to provide a secure and attractive investmentenvironment for global resources firms and said work is ongoing to reduceregulation and speed up the processing of environmental approvals, Mining Weekly wrote.

* Geoscience BC launched a samplingprogram of coniferous tree tops to assess the geology and mineral potentialof a 24,000-square-kilometer swath of central British Columbia, Mining Weekly reported.

The Daily Dose isupdated as of 7 a.m. New York time, and scans news sources published inChinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai andUkrainian. Some external links may require a subscription.