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Oleg Deripaska remains on Rusal's board

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Oleg Deripaska remains on Rusal's board

TOP NEWS

Oleg Deripaska remains on Rusal's board

United Co. Rusal PLC said Oleg Deripaska has not formally resigned from its board, even after he stepped down as a director of En+ Group PLC, Rusal's controlling shareholder. Rusal also warned that the U.S. sanctions against the company "may be materially adverse to the business and prospects of the group." En+ Group's board endorsed independent Chairman Gregory Barker's proposal and strategy, dubbed the Barker plan, in a bid to lift U.S. sanctions imposed against the company in April. The Barker plan will see Deripaska ceding control over En+ Group, with his stakes to be reduced below 50%, and influence over the company's board through the appointment of a majority of independent directors.

Indonesian coal miners adapting to tighter import curbs in China

With China slashing coal imports in a bid to lower air pollution and to boost the domestic industry, miners in Indonesia are carving out different strategies to adapt to the changing dynamics of the marketplace. Chen Guangzhi, a Singapore-based investment analyst with Phillip Securities Research, said both miners and traders have to adapt to policy changes in China. "If China capped the imports [of low-grade coal] from Indonesia, trading houses would have no choice but to defer the procurement from domestic coal mines," Chen told S&P Global Market Intelligence.

UK fraud office preparing formal probe into Glencore, Gertler dealings in DRC

The U.K.'s Serious Fraud Office is preparing a formal bribery probe into Glencore PLC's dealings with Israeli billionaire Dan Gertler and the Democratic Republic of the Congo President Joseph Kabila, Bloomberg News reported, citing anonymous sources.

DIVERSIFIED

* Glencore CEO Ivan Glasenberg is set to receive US$120 million in dividend payments this week, given his 8% stake in the mining giant. According to the Daily Mail, the payout is one of the CEO's largest since Glencore's London float in 2011.

* The Queensland Treasury included BHP Billiton Group's partner in Australia, Mitsubishi Corp., in a royalty assessment for 2005 to 2015, which could result in tax claims around the miner's offshore trading hub growing beyond A$1.4 billion, The Australian reported. The Queensland Office of State Revenue is already chasing A$329 million over a royalty review, which is being contested by BHP in the Queensland Supreme Court. Mitsubishi's involvement could add over A$300 million in extra royalties.

* Vale SA CEO Fabio Schvartsman said the company is expected to achieve its US$10 billion debt target later in the year, following which the mining major will focus on giving more cash to shareholders, Bloomberg News reported.

BASE METALS

* Vedanta Ltd. said the closure of the Tuticorin copper smelter in India's Tamil Nadu state is causing a copper deficit and increased prices in the country, given the facility contributes about 35% in India's primary copper market, Reuters reported.

* US Cobalt Inc. security holders approved the company's acquisition by First Cobalt Corp. The transaction is scheduled to be completed May 31.

* The conditional approval from Zambia's Ministry of Mines and Minerals Development lapsed for a subsidiary of Weatherly International PLC to purchase Intrepid Mines Ltd.'s Zambian assets.

* Emmerson Resources Ltd.'s proposed restructure of the Tennant Creek Mineral Field copper joint venture agreement with Evolution Mining Ltd. has been completed, following shareholder approval.

* Patagonia Gold PLC made the final US$10 million payment for the purchase of the Calcatreu gold deposit in Argentina from Pan American Silver Corp.

PRECIOUS METALS

* The liquidation of Vantage Goldfields SA, which owns the Lily and Barbrook gold mines in South Africa, was delayed for two more months, Fin24 wrote, noting that the delay would give the company's new owners time to convince creditors that Vantage could reopen the two mines.

* The World Gold Council SAID success in Western Australia's Pilbara region could dictate the course of production over the next three decades at least, amid warnings that global mine supply looks set to enter a period of "secular," or long-term, decline. The WGC's latest report said that as gold exploration has been concentrated only in a handful of countries, the sector faces secular decline beyond the short-term, during which time current record levels of production can only be sustained for "the next few years."

* According to the South China Morning Post, China started mining operations on its side of the disputed border with India in the Himalayas, which people familiar with the project said is part of the Chinese government's plan to reclaim the disputed territory of South Tibet. According to the news brief, Chinese geologists estimated that the deposit hosts gold, silver and other precious metals worth over US$60 billion.

* Sibanye Gold Ltd. CEO Neal Froneman told Reuters that he remains confident in closing the acquisition of Lonmin PLC, which remains conditional upon Lonmin maintaining its net cash position and achieving certain production targets. Froneman also urged South Africa's Competition Commission to approve 890 merger-related layoffs and noted that Sibanye is not seeking further assets for acquisition in the short term.

* Almadex Minerals Ltd. completed the spinout of its early stage exploration projects, royalty interests and other noncore assets into a new company. The spinoff company will be named Almadex Minerals Ltd., and the entity previously named Almadex will rebrand as Azucar Minerals Ltd.

* Australian Mines Ltd. increased its interest in the Marymia gold-copper project in Western Australia to 80% by completing the second-stage earn-in from Riedel Resources Ltd.

* Kommersant reported that Petropavlovsk PLC may again change management after the largest shareholder, Kenes Rakishev, which owns a 22.4% stake, agreed with the proposal of minority shareholders to return to the company co-founder Pavel Maslovsky and two other members of the board of directors. Sources in the industry said the gold miner may return to the idea of merging with Musa Bazhayev's Amur Gold.

BULK COMMODITIES

* The Mongolian government will seek proposals for public-private partnerships targeting about US$15.95 billion in investments, Reuters reported, citing a government official. The investment program will involve 113 projects, including transportation infrastructure near the Tavan Tolgoi coal mine.

* Tokyo Steel Manufacturing Co. Ltd. will maintain product prices for the fourth straight month in June to ensure the market absorbs earlier price increases, Reuters wrote.

* EN+ Group's net profit in the first quarter soared 152% year over year to US$667 million, while revenue climbed 17% to US$3.44 billion, on the back of a higher aluminum price on the London Metal Exchange.

* Verdant Minerals Ltd. signed a nonbinding memorandum of understanding with Ameropa Australia Pty. Ltd. for the future supply of up to 100,000 tonnes per annum of phosphate rock concentrate or other phosphate products produced at the Ammaroo project in Australia's Northern Territory.

* Bowen Coking Coal Ltd. decided to sell its Comet Ridge coal project in Queensland, Australia, to Springsure Creek Coal Pty. Ltd. for A$100,000 cash and a royalty stream of 1.25% of free on rail revenue from the first 2.8 million tonnes of coal produced.

* An alleged "bog down" of a portion of the Molave pit within Semirara Mining & Power Corp.'s namesake coal mine in the Philippines killed one worker, The Inquirer wrote.

* Tata Steel Ltd. completed the previously announced acquisition of a majority interest in Bhushan Steel Ltd. The state-owned Bank of India would be able to realize about 19.93 billion rupees as a result of the transaction, Press Trust of India reported.

* India's JSW Steel Ltd. acquired Italy-based steel producer Acciaierie e Ferriere di Piombino for about 6 billion Indian rupees, Metal Bulletin reported.

* Viktor Vekselberg's Renova Group said it settled its debts to western banks before the U.S. sanctions against it take effect in June, the Financial Times reported. Meanwhile, Vekselberg reduced his stake in steelmaker Schmolz + Bickenbach to 12.6% from 42%.

* India and the EU have drawn up lists of U.S. products that could be subject to tariffs in response to President Donald Trump's levies on steel and aluminum, Reuters reported, citing WTO filings. India would target U.S. exports of cashews, palmolein and soya oil. The U.S. tariffs on aluminum and steel could cost India an additional US$31 million and US$134 million, respectively, the report added.

* The Russian Economy Ministry said the U.S. refused to discuss its steel and aluminum tariffs within the framework of the WTO, Reuters reported, citing news agency Interfax. Russia also seeks to inform the WTO that it may introduce measures in response to Washington's trade tariffs.

* BHP is said to be reviewing long-term coal haulage contracts for up to 10 million tonnes of coal annually as it has objections to a revised June maintenance schedule for Aurizon Holdings Ltd.'s Goonyella railway track in Queensland, The Australian Financial Review reported.

* Nippon Steel & Sumitomo Metal Corp. said strong global demand for steel has offset the impact of the recent U.S. import duties on the metal, Reuters reported. The company, whose U.S.-bound steel shipments comprise about 4% of its total exports, saw more than 90% of its customers continuing to purchase products following the imposition of the tariffs.

* China will shut down more outdated steel plants and bring its total capacity to less than 1 billion tonnes by 2025, Reuters reported, citing Yu Yong, president of the China Iron and Steel Association. The country is targeting closing another 30 million tonnes of capacity this year.

* Kibo Mining PLC awarded Sepco III, the company's Chinese development partner, the second and final lot of the engineering, procurement and construction contract for the power line that will move power from the Mbeya coal-to-power project's power plant in the Songwe district of Tanzania to the TANESCO Mbeya substation.

SPECIALTY

* Prospect Resources Ltd.'s newly appointed earth-moving contractor for the Arcadia lithium project in Zimbabwe is expected to start mobilizing plant and equipment immediately and to break ground in the coming weeks. Meanwhile, the company expects to secure over US$55 million in funding for the first phase of the project to start lithium concentrates production for export by June 30, 2019.

INDUSTRY NEWS

* The London Metal Exchange is considering the launch of Chinese yuan-denominated metal products as the currency's use in global finance continues to expand, the South China Morning Post wrote, citing LME CEO Matthew Chamberlain.

* The U.S. Department of the Interior published a final list of 35 metals and minerals in the Federal Register that it considers "critical" as part of a push by the Trump administration to consider ways to reduce U.S. dependence on foreign supplies. The list is the same as a draft version proposed in February, with the report expected to come out in August.

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