trending Market Intelligence /marketintelligence/en/news-insights/trending/OyksChYxYW3_uS9gzAcnDQ2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Glencore nears sale of agriculture unit stake; BHP to raise Olympic Dam output; Codelco to cut CapEx

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


Glencore nears sale of agriculture unit stake; BHP to raise Olympic Dam output; Codelco to cut CapEx

TOP NEWS

Glencorenears US$2.4 billion sale of agriculture unit stake

Glencore Plcis set to sell a 40% interest in its agriculture unit to the Canadian Pension PlanInvestment Board for about US$2.4 billion as part of efforts to reduce its debtpile, Bloomberg News reported,citing a person with knowledge of the matter.

BHPBilliton to up copper output at Olympic Dam mine

BHP Billiton Groupbelieves it can increasecopper output at its OlympicDam mine in South Australia to 280,000 tonnes annually at CapEx anticipatedto be below US$500 million, The AustralianFinancial Review reported. The mining giant had previously projected to raiseproduction at the operation to 255,000 tonnes within five years, and without significantCapEx.

Codelco to lose 13% of future copper output

Chilean copper producer Codelcowill reduce CapEx by US$6billion over the next five years as it copes with weak prices for the red metal.As a result, about 13%, or 4 million tonnes, of Codelco's planned production of44 million tonnes over the next 25 years would be lost.

DIVERSIFIED

* Glencore Plcis set to sell a 40% interest in its agriculture unit to the Canadian Pension PlanInvestment Board for about US$2.4 billion as part of efforts to reduce its debtpile, Bloomberg News reported,citing a person with knowledge of the matter.

BASE METALS

* BHP BillitonGroup believes it can increasecopper output at its OlympicDam mine in South Australia to 280,000 tonnes annually at CapEx anticipatedto be below US$500 million, The AustralianFinancial Review reported. The mining giant had previously projected to raiseproduction at the operation to 255,000 tonnes within five years, and without significantCapEx.

* Chilean copper producer Codelco said it will reduceCapEx by US$6 billion over the next five years as it copes with weak prices forthe red metal. As a result, about 13%, or 4 million tonnes, of Codelco's plannedproduction of 44 million tonnes over the next 25 years would be lost.

* Separately, Codelco Chairman Óscar Landerretche tolddaily Pulso the company would be discussingwith new external investors to support the miner's global expansion. The companyis working to exploit synergies with private miners as in the case of its Andinaunit with Los Bronces and between RadomiroTomic division and ElAbra. He also admitted that the company has been assessing the purchaseof assets.

* Freeport-McMoRanInc. announced a major change to the organizational structure for Freeport-McMoRanOil & Gas, resulting in its executive team being laid off. Under the restructuring move, Freeport-McMoRanOil & Gas will become an operating division of the larger company and the financialand administrative roles at Freeport-McMoRan Oil & Gas will be merged with Freeport-McMoRan'scorporate functions. According to the company, the move is expected to cut costs,streamline functions and enhance capital allocation across the company's globalbusiness.

* Bernstein analyst Paul Gait suggests that incoming chief Jean-Sebastien Jacqueshas a "once in a career opportunity" to buy Freeport-McMoRan Inc.'s troubledCerro Verde copperproject in Peru amid low copper prices as "the need for Freeport to sell inorder to fix its own financial difficulties presents a unique opportunity to acquireassets," The Australian Financial Reviewreported."For Jacques … an acquisition of Cerro Verde could be career-defining, andfirmly mark the end of the strategically cautious period that Rio Tinto lived throughunder Sam Walsh," Gait added.

* Antofagasta PlcCEO Diego Hernández is of the opinion that a shortage of major copper assets forsale is a goodsign for copper in the medium to long term, Business News Americas reported."I don't know of any tier-1 asset, a large mine, that is up for sale, totallyor partially," Hernández added.

* Anglo AmericanPlc has no plans to off-load its flagship copper projects amid its assetsale campaign, Bloomberg News reported,citing the company's copper chief, Hennie Faul. "We don't need to sell them.Anglo is not in that position," he added.

* The Chile-based Collahuasicopper mine's output is expected to increaseslightly in the current year from 455,300 tonnes in 2015, Reuters reported,citing CEO Jorge Gomez. Collahuasi is a joint venture between Anglo American andGlencore.

* Votorantim IndustrialSA's profit attributable to company owners for the year ended Dec. 31,2015, plungedto 387 million Brazilian reais from net profit of 1.59 billion reais reported ayear ago.

* produced 23,694tonnes of payable copper and shipped27,985 tonnes of copper in the three months to March 31. Silver and gold production,meanwhile totaled 401,590 ounces and 3,555 ounces, respectively.

* A preliminary economic assessment on Asiamet Resources Ltd.'s Beruang Kanan Main copper deposit in Kalimantan, Indonesia,targets annual production of 25,000 tonnes of 99.99% copper metal. The study an after-tax net presentvalue, discounted at 10%, of US$204.3 million, and an after-tax internal rate ofreturn of 38.7%. Gross revenue is expected at US$1.27 billion.

* Amur MineralsCorp. said the total contained nickel at its Maly Kurumkon/Flangovydeposit has increasedabout 25% to 366,600 tonnes, and the resources suitable for conversion to reservesthat can be used in a mine plan have been increased 126% to 285,200 nickel tonnes.The global nickel equivalent for the entire Kun-Manie project has increased from 831,000 tonnes to 958,000tonnes, the company added.

* After going into atrading halt this morning, PilbaraMinerals Ltd. expects to announce a placement to raise between A$60million to A$80 million, and a share purchase plan of up to A$10 million, The West Australian reported. The companywilluse the raised funds to expand the drilling program at its Pilgangoora lithium-tantalite project to furtherincrease reserves, as well as to complete a definitive feasibility study in thethird quarter.

PRECIOUS METALS

* Following a strong March quarter, Saracen Mineral Holdings Ltd. is well on track to achieve its objective of doubling gold productionto approximately 300,000 ounces of gold per annum while remaining debt-free.

* Indonesian conglomerate Medco Group is set to acquire a controllingstake in U.S. mining giant NewmontMining Corp. unit PT NewmontNusa Tenggara, as part of its move to diversify from oil and gas, the Jakarta Globe reported, citing Medco ownerArifin Panigoro.

* New DimensionResources Ltd. executed an option agreement to acquire a 100% interest in the 8,352-hectare gold property in Ontario'sSavant Lake Greenstone Belt.

* Gold JubileeCapital Corp. signeda nonbinding letter of intent with AppalachianResources Balkan doo to earn a 100% interest in ARB's interest in theDeli Jovan Northgold-copper property in Serbia.

* Medinah MineralsInc. signed a memorandum of understanding to sellits Altos de Lipanguegold mining claims in Chile to AURYN Mining Chile SpA.

* Centerra GoldInc. said its Öksüt MadencilikSanayi ve Ticaret AS unit signeda project financing term loan facility of up to US$150.0 million for the gold project in Turkey.Proceeds from the facility are intended to finance a substantial portion of theconstruction, development and operation of the Öksüt gold mine and its related infrastructurein the Kayseri region of central Turkey.

* SEMAFO Inc.increased the size of its previously announced bought-deal offering to C$100.0 million from C$75.0 million,now offering 23 million shares at C$4.35 apiece, due to strong demand.

* In the quarter ended March 31, Guyana Goldfields Inc. produced 41,281 ounces and sold 40,568ounces from its Auroragold mine at an average realized price of US$1,196 per ounce about US$48.5 million in pretaxrevenue.

* Vast ResourcesPLC has decided notto give consent to the subscription of approximately £1.3 million from CredeCapital, the second tranche of the financing agreed with Crede. The company deniedconsent as the subscription would result in Crede being interested in over 25% ofVast's share capital, it said.

* Pretium ResourcesInc. said drilling at its Brucejackproject in British Columbia continues to confirmthe style and grade distribution of the Valley of the Kings gold mineralizationin the area currently being tested. Reported assays include six intersections gradinggreater than 1,000 g/t of gold. 

BULK COMMODITIES

* Outokumpu Oyjplans to improve the financial performance of the company through up to 600 around the world, and istargeting earnings before interest and tax of €500 million by the end of 2020 atthe latest. The company said it will immediately start talks to cut 140 jobs inFinland and up to 90 jobs in Sweden, while it will outsource certain manufacturingsupport operations in Tornio that will impact another about 100 employees.

* About 21 Civil Australia Group workers at 's Callide coal mine in Queensland, Australia, the site March 22 allegedlyover unpaid wages for more than three weeks' work.

* Police arrested57 striking workers after a three-week-long protest by 160 members of Associationof Mine Workers and Construction Union, or AMCU, at Glencore's Wonderfontein coal mine in South Africa turnedviolent, according to police representative Kwapa Macdonald.

* The founder of commodities trading group Liberty House, SanjeevGupta, said any plan to buy Tata SteelLtd.'s lossmaking steel operations at Port Talbot will be aimed at savingthousands of jobs but will shutter the blast furnace at the operation, London'sFinancial Times wrote.However, Gupta has yet to hold any discussion with the British government or TataSteel.

* The Directorate General of Anti-Dumping and Allied Duties ofIndia servednotices to China, Japan and South Korea proposing to kick off an investigation onthe dumping of hot-rolled coils of alloy and nonalloy steel into the country, Reutersreported, citing a source.

* The Australian Securities and Investments Commission appliedto the Federal Court for the appointment of McGrathNicol's Robert Kirman as a liquidatorfor ASX-listed Continental Coal Ltd.,alleging the coal developer is not being properly managed, has failed to complywith its continuous disclosure obligations and is insolvent.

* MBAC FertilizerCorp. said it strucka support agreement with Zaff LLC that has been approved by its board. Zaff willacquire all outstanding secured and guaranteed funded debt of the company and itsBrazilian units, as well as certain unsecured debts. Upon completion of all transactions,Zaff will own nearly 78% of the company.

* According to Serbia's Economy Ministry, China's has offered €46 millionfor the loss-making, state-run Zelezara Smederevo steel mill in Serbia. The US$300million represents a "minimum investment over the next two years," saidBojan Bojkovic, CEO of the Serbian firm. There are no plans to lay off any of theplant's 5,050 workers, the ministry added.

* Ferrexpo Plc'stotal pellet production in the first quarter remained steady year over year at 2.9 million tonnes. Productionof 65% pellets increased 12.7% year over year to 2.8 million tonnes, while productionof 62% pellets dropped 71.4% year over year to 123,800 tonnes.

* Stanmore CoalLtd. more than doubledthe JORC-compliant resource estimate for its Isaac Plains coking coal complex in Queensland, Australia,to 76.9 million tonnes from 30.1 million tonnes with a significant portion as measuredand indicated resources.

* Iron ore exports from Port Hedland in Western Australia increasedto a record39.53 million tonnes in March, from 36.63 million tonnes a year ago, The Australian Financial Review.

* The Russian government may revise the rules of coal miningin the country, Kommersant reported. Prime Minister Dmitry Medvedevagreed to the proposal of the governor of Kuzbass, Aman Tuleyev, to conduct a large-scaledegassing of ultra-hazardous mines which extract the main amounts of coking coalfor the steel industry and to prohibit production until the end of degassing. Themining industry believes that the substitution of coal by imports can cost up toUS$1 billion a year.

* Russian lender Sberbank's first deputy chairman, Maxim Poletayev,said the bank is likely to reach a debt restructuring dealfor Mechel OAO with fellowcreditor Gazprombank this month, Reuters reported.

* Angang Iron & Steel Group reported a loss of 7.7 billionChinese yuan in 2015, narrowingfrom a loss of 10.4 billion yuan reported a year ago.

* Dongbei Special Steel Group Co. failedto make the 1.01 billion yuan payment on 6% notes due April 5, Bloomberg News wrote,citing a statement posted on Chinamoney's website. This was the second default onbonds by the company in two weeks. Chinacoal Group Shanxi Huayu Energy Co. alsoflagged it may miss a 637.7 million yuan payment on debt due April 6.

* Japan's crude steel production is expected to drop2.4% year over year 25.24 million tonnes for the three-month period ending June30, the lowest output for the period in seven years, Reuters reported, citing estimatesfrom the country's Ministry of Economy, Trade and Industry.

* China's steel output is expected to increase by 20% in the current year,according to an official of the country's largest listed steel mill, Wallstreet.cnreported. The domestic steel price has staged a rebound of over 30% in last threemonths, which has prompted many steelmakers to resume production again.

SPECIALTY

* Rio Tinto'splan to consolidate the management of on-site subcontractors to reduce costs atits Rossing uraniummine in Namibia may lead to 300 workers losingtheir jobs, New Era reported.

* The final approval for Oaktree Capital Management's acquisitionof bankrupt U.S. rare earth miner MolycorpInc. is being deferredas the investment fund may have too many partners in the transaction, BloombergNews reported.

* Fission 3.0 Corp.and joint venture partner Canex EnergyCorp. revised the terms of the optionagreement covering the ClearwaterWest property in Saskatchewan's Athabasca Basin. Under the revised terms,the expenditure required for Canex to earn a 50% interest remains the same, butthe staging has been adjusted to reflect market conditions.

* The first deputy chairman of Russian bank Sberbank's board,Maxim Poletayev, said no foreign banks are involved in the proposed privatizationof state-run oil company Bashneft and diamond miner PJSC ALROSA, Reuters reported. 

* Pioneer ResourcesLtd. fully acquired the Phillips River lithium project in Western Australiathrough pegging.The project comprises three exploration license applications covering approximately340 square kilometers.

* DiamondCorp Plcsolda total of 8,648 carats of diamonds during the March quarter, comprising 6,247 caratsof kimberlite diamonds greater than 1.25 millimeter in diameter and 2,401 caratsof tailings diamonds and fine diamonds less than 1.25 millimeter in diameter recoveredduring bulk testing when the plant was configured with finer bottom screens. Thekimberlite diamonds sold for US$1.1 million, representing an average of US$175 percarat, and the tailings and fine diamonds sold for US$46,000, representing an averageof US$19 per carat. The company marked the first sales of diamonds from the mine in South Africa since1931.

* The largest-everblue diamond will go up for auction in Geneva, Switzerland, Australian Mining reported. The 14.62-caratstone is expected to fetch between US$38 million and US$45 million.

INDUSTRY NEWS

* China has bannedthe import of gold and rare earth metals from North Korea to reflect new UnitedNations sanctions imposed on the latter. Coal will also be banned from import fromPyongyang, making exceptions in line with the sanctions to allow coal to be shippedfor "the people's well-being."

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