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Oleg Deripaska quits Rusal board amid pressure over US sanctions

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Oleg Deripaska quits Rusal board amid pressure over US sanctions

TOP NEWS

Oleg Deripaska quits Rusal board amid pressure over US sanctions

Oleg Deripaska stood down as nonexecutive director of United Co. Rusal PLC, effective immediately, as part of the company's efforts to protect its interests in light of U.S.-imposed sanctions on the Russian aluminum producer. Shares in the company rallied on the Moscow and Hong Kong stock exchanges May 24 following the resignations of CEO Alexandra Bouriko and half of its board members that day. Additionally, the Ukrainian government mirrored the U.S. by including Deripaska on its expanded sanctions list, Reuters reported.

Indian state seeks permanent closure of Vedanta's Tuticorin smelter, orders power cut

Vedanta Resources PLC unit Vedanta Ltd. said that state environmental officials ordered the disconnection of power supply and the closure of the company's Tuticorin copper smelter in South India's Tamil Nadu state, with immediate effect. Reuters reported in a same-day report that Tamil Nadu is seeking a permanent closure of the Tuticorin operations. The report added that environmental officials had cut the power supply to the smelter, due to the smelter being found preparing to resume production without approval.

First Quantum, Northern Dynasty nix US$1.5B Pebble copper project option

First Quantum Minerals Ltd. and Northern Dynasty Minerals Ltd. terminated a framework agreement for the former company to earn a 50% interest in the Pebble copper project in Alaska. Both parties were unable to reach an agreement on the US$1.5 billion option and partnership transaction.

BASE METALS

* S&P Global Market Intelligence estimated that global production of nickel in the first quarter fell compared with the final quarter of 2017.

* Fitch Ratings affirmed Freeport-McMoRan Inc.'s issuer default rating at BB+, with a negative outlook. The negative outlook reflects the possibility that changes in Indonesian regulations could adversely impact the economics of the company's Grasberg copper operations.

* Separately, an audit by Indonesia's Supreme Audit Agency, or BPK, of Freeport's Grasberg copper mine may derail a potential deal to sell a majority stake in the mine to the state, Reuters reported, citing government and company officials.

* Myanmar Metals Ltd. shares rose nearly 7% in ASX trading today having struck two binding agreements to ensure its A$18.5 million share of the Bawdwin polymetallic project option exercise is fully funded, in what CEO John Lamb called a "new model" of foreign participation in Myanmar. Two local Myanmar entities will each hold 24.5% of the project, with Myanmar Metals taking majority ownership to operate with 51%.

* Beatrice Pierre was named as the new General Manager at Glencore PLC's Altonorte copper smelter in Chile, becoming the first woman to hold the position, magazine Latinominería reported.

PRECIOUS METALS

* Centamin Plc revised its full-year guidance at the Sukari gold mine in Egypt, to between 505,000 ounces and 515,000 ounces of gold at a production cost of between US$625 and US$640 per ounce, on expectation a weaker second quarter output, offset by a stronger production profile in the second half.

* PJSC Polyus expects its production to hit the upper end of its forecast range of between 2.38 million and 2.43 million troy ounces, Reuters reported. The company's full year CapEx is expected to be slightly lower than initially planned US$850 million as it is ramping up its Natalka gold mine ahead of schedule, CEO Pavel Grachev said.

* Responding to a media statement by the Association of Mineworkers and Construction Union, or AMCU, Sibanye Gold Ltd. confirmed a seismic event on May 22 at its Ikamva mine, part of the Kloof operations, that resulted in injuries to three employees. Another seismic event on May 21 occurred at the Manyano mine, also within the Kloof operations, resulted two injuries.

* An independent pre-feasibility study on Paramount Gold Nevada Corp.'s proposed Grassy Mountain gold mine in Oregon defined an after-tax net present value of US$87.8 million, at a 5% discount rate, with a 27.6% internal rate of return.

* Orosur Mining Inc. decided to terminate an option to acquire a 65% stake in Codelco's Anillo gold project in Chile following the lack of positive exploration results in the first phase.

* Birimian Ltd.'s deal to option the Viper and N'tiola areas of its Massigui gold project to Société des Mines de Morila SA, a joint venture between Randgold Resources Ltd., AngloGold Ashanti Ltd. and the Republic of Mali, is nearing completion after the Mali government approved the extension of Morila's mineral exploitation permit to the two areas of interest.

* LeaGold Mining Corp. completed its C$314 million acquisition of Brio Gold Inc. after securing regulatory and shareholders approvals.

* Manas Resources Ltd. elected to withdraw from an option to acquire the Victoria gold project in Tanzania, following the lack of progress in effecting the license transfers required to complete the transaction.

* PanTerra Gold Ltd. will seek up to US$25 million in damages from the Dominican Republic government, claiming the latter failed to meet its contractual obligations relating to the company's Las Lagunas gold-silver tailings project.

* Five people were killed in a militia attack at Banro Corp.'s Namoya gold mine in the Democratic Republic of the Congo, Reuters reported.

BULK COMMODITIES

* Oleg Deripaska has reportedly asked the Russian government to purchase Rusal's aluminum, Reuters reported, citing a senior Russian government source. Deripaska is also seeking support for car manufacturer GAZ and has applied to secure a loan from Promsvyazbank. A separate Reuters report said that Deripaska is mulling the sale of his shares in En+ Group to the company to bring his interest below the controlling level.

* Vale SA expects output at its S11D iron ore mine to reach 58 million tonnes this year, exceeding its guidance of 50 million tonnes to 55 million tonnes, Reuters reported, citing sources.

* Samir Cairae, CEO of Vedanta's metals business in India, warned that the company may reduce its aluminum output if limits on coal supplies to the country's nonpower sectors continue for another week, Bloomberg News reported. The limited coal supply is a result of a government directive to prioritize coal deliveries to power stations as India's private and public thermal power plants face severe coal shortages amid rising electricity demand, Mining Weekly reported the same day.

* Fortescue Metals Group Ltd. intends to redeem US$160 million in 9.75% senior secured notes, due 2022, to be funded by operating cash flows.

* Chinese iron ore producer Hainan Mining Co. Ltd. plans to raise up to US$300 million through a debt issuance in an overseas capital market to improve liquidity and to repay debt.

* Evraz PLC declared an interim dividend of US$187.6 million, or 13 U.S. cents per share, following the approval of its board. Meanwhile, Moody's upgraded subsidiary Evraz Group SA's corporate family rating to Ba2 from Ba3, its probability of default rating to Ba2-PD from Ba3-PD and the ratings assigned to its senior unsecured notes to Ba3 from B1. The outlook is stable.

* Yara International ASA priced a US$1 billion 4.75% bond offering, with a 10-year maturity, which will fund general corporate purposes.

* After a nearly 10-week strike at the IOC iron ore mine, Iron Ore Co. of Canada Inc. and striking workers are three days into a fresh round of talks after two previous offers were rejected.

* The European Commission launched a probe into hot-rolled steel sheet piles imported from China to determine whether the products are being dumped in Europe. According to Reuters, the probe follows complaints from EU steelmaker group Eurofer.

* Bahrain's United Stainless Steel Co. BSC said that it does not plan to declare force majeure after a recent factory fire at its stainless steel re-rolling mill, and planned deliveries of the material will not be disrupted, Metal Bulletin reported.

SPECIALTY

* PJSC Alrosa expects its first-half sales of rough diamonds to be significantly higher than it originally expected on the back of a stronger market, Reuters reported. CEO Sergey Ivanov said to the newswire at the sidelines of the St. Petersburg economic forum that the diamond miner's full-year production, meanwhile, is forecast to reach 36.6 million carats.

* Chile's Constitutional Tribunal reduced a fine meted by Chile’s securities regulator SVS in 2014 to former Sociedad Quimica y Minera de Chile SA chairman Julio Ponce Lerou of nearly US$74 million to approximately US$3.3 million, Diario Financiero reported. The fine for Ponce Lerou, an indirect controlling shareholder, resulted from an investigation into market manipulation linked to trading in the company and its holding firms.

* Mountain Province Diamonds Inc. sold 350,000 carats of diamonds at US$81 per carat for US$28.3 million in proceeds in its fourth diamond sale this year. The proceeds are the highest total for any of the company's tender results to date.

INDUSTRY NEWS

* The Philippines' Mineral Industry Coordinating Council completed reviewing mining companies' appeals against suspensions and closures ordered by Regina Paz Lopez, who formerly led the country's environment department, the Manila Bulletin wrote.

* South African Minister of Mineral Resources Gwede Mantashe said the government intends to finalize the revamped mining charter by June-end, the African News Agency reported.

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