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Fortescue green-lights US$1.28B Eliwana iron ore project development

TOP NEWS

Fortescue green-lights US$1.28B Eliwana iron ore project development

Fortescue Metals Group Ltd.'s board gave the go-ahead for the approximately US$1.28 billion development of the Eliwana project, part of the Western Hub iron ore project in Western Australia, which includes the development of a 143-kilometer railway, a new dry ore processing facility and other associated infrastructure. Western Australian Premier Mark McGowan welcomed the final investment decision, saying that the project has the potential to create up to 1,900 construction jobs and provide 500 ongoing jobs once in operation.

BHP, Queensland government in settlement talks over coal royalty payments

BHP Billiton Group entered into settlement talks with the government of Queensland, Australia, over royalty payments of nearly A$300 million from coal exported from the state's Bowen Basin, The Australian Financial Review reported.

Codelco's Q1 profit, production up YOY

Chile's state-owned copper producer Codelco booked a pretax profit of US$537 million in the first quarter, up slightly from a US$534 million profit reported in the year-ago period. The company's copper production from its wholly owned mines increased 7% to 416,000 tonnes. The figure climbs to 446,000 tonnes when production from El Abra and Anglo American Sur S.A. is included.

DIVERSIFIED

* Vedanta Resources PLC Chairman Anil Agarwal plans to turn his company into a resources giant through local investments in a bid to limit India's reliance on imports of minerals, Bloomberg News reported. The company plans to invest about US$8 billion in the next 2.5 years to further expand.

BASE METALS

* As part of its any and all US$450 million buyback of its 7.875% senior secured notes due 2022, Lundin Mining Corp. said only US$10.8 million in principal amount of the notes had been validly tendered and accepted for purchase.

* Vedanta Resources plans to restart the Tuticorin copper smelter in South India's Tamil Nadu state and still intends to move forward with its planned expansion to double the plant's capacity despite protests demanding its closure that killed 13 people, Reuters reported.

* Chilean President Sebastian Pinera named Juan Benavides as Codelco's chairman, replacing outgoing Chairman Oscar Landerretche, Reuters reported. The 60-year-old Benavides is serving as chairman at Chilean private pension fund manager AFP Habitat.

* Independence Group NL agreed to sell its Jaguar zinc operation in Western Australia to CopperChem Ltd. for a total of A$73.2 million in cash.

* Superior Resources Ltd. resumed control of the Nicholson zinc project tenements in northwest Queensland, Australia, after Teck Australia Pty Ltd. withdrew from an earn-in agreement.

* Alphamin Resources Corp. aims to raise C$19.2 million to help fund the development of the Bisie tin project in the Democratic Republic of the Congo with the backing of Tremont Master Holdings, a subsidiary of private equity firm Denham Capital, and a controlling shareholder.

* Cruz Cobalt Corp. plans to start operations shortly at its War Eagle and Purcell cobalt prospects in British Columbia.

PRECIOUS METALS

* Orinoco Gold Ltd. has suspended all milling and processing activities in Brazil, where it operates the Cascavel gold mine, in light of a nationwide truck strike in the country, started May 21, which has left the state of Goias, as well as other states, without a supply of diesel oil.

* Resolute Mining Ltd. agreed to subscribe for 32.4 million shares in Orca Gold Inc., representing a 15% interest, in a transaction valued at about A$22.5 million.

* Authorities in Kuantan Singingi regency in Indonesia's Riau province shuttered illegal gold mines following concerns from residents over the environmental damage caused by the operations, The Jakarta Post reported.

* Workers at Pan American Silver Corp.'s Dolores silver-gold mine in Mexico said they were afraid to leave the mine encampment due to threats by armed groups, The Associated Press reported. One of the workers told the news agency that members of an organized crime group set up checkpoints at access points to the mine that has about 400 employees inside.

* A new preliminary economic assessment on McEwen Mining Inc.'s proposed Fenix gold-silver development defined an after-tax net present value of US$60 million with a 25% internal rate of return. The study indicates that Fenix could extend the life of its El Gallo Complex in Mexico by 10 years.

* McEwen Mining plans to issue up to US$50 million in senior secured notes to help fund the construction of its Gold Bar mine in Nevada. The proposed three-year notes will bear interest at a rate of 9.75% per annum.

* Alio Gold Inc. completed its previously agreed acquisition of Rye Patch Gold Corp. under a deal valued at C$128 million.

* Central Iron Ore Ltd. agreed to sell the South Darlot gold project in Western Australia to Kingwest Resources Ltd., an ASX hopeful, for A$580,000.

BULK COMMODITIES

* Brunei agreed to sell a 37% stake in Jordan Phosphate Mines Co. PLC to Indian fertilizer producers Indian Potash Ltd. and Kisan International Trading FZE, in a deal valued at around US$130 million, Reuters reported. According to an industry source, Potash Corp. of Saskatchewan and Mitsubishi Corp. were also in the running for the stake.

* Russian fertilizer producer PJSC PhosAgro halted product sales and shipments to Ukraine following the country's decision to impose sanctions on company affiliates OJSC Apatit and LLC PhosAgro-Ukraine. PhosAgro CEO Andrey Guryev called the measures discriminatory but noted that these will not have a meaningful negative impact on the company.

* EMR Capital is said to be marketing its hard coking asset West Cumbria Mining Ltd. in the U.K. to prospective investors, The Australian Financial Review's Street Talk wrote. The private equity firm would consider equity and debt funding options to advance the asset into production in the near term. EMR holds a 70% stake in West Cumbria.

* Stanmore Coal Ltd. declared a maiden JORC probable reserve of 12.9 million tonnes at its Isaac Plains underground mine in Queensland, Australia.

* Altura Mining Ltd. increased the ore reserve at its namesake lithium project in Western Australia by 20%.

* Aluminum Corp. of China Ltd. signed a deal to expand its strategic cooperation with China's Yunnan province.

* Aurizon Holdings Ltd. warned customers of more changes to the way it will repair its rail tracks, which could cut system capacity by more than the 20 million tonnes of coal per annum it had initially flagged in relation to a dispute about regulated returns, The Australian Financial Review reported.

* India's JSW Steel Ltd. plans to restart operations at newly acquired steelmaker Acciaierie e Ferriere di Piombino, or Aferpi, in the first half of June, Metal Bulletin reported. The company presented an industrial plan for Aferpi's Piombino site, which includes the restart of the rolling mills for rail, steel bars and wire rod this year.

* North China's Hebei province plans to phase out 17 coal mines with a total capacity of 10.2 million tonnes this year, Heibei Daily reported. The province originally planned to shutter 14 coal mines with the same capacity.

SPECIALTY

* Argosy Minerals Ltd. will incorporate the Salonix, Mina Reina, and Mina Tincal properties, into the larger Rincon project in Argentina held by 77.5%-owned joint venture company Puna Mining S.A., following the outright acquisition of the properties previously secured via option deals for about US$2.6 million.

* U.K.-based Cadence Minerals Plc forecast lithium demand to reach 800,000 tonnes per year by 2025, however, it added that it is unlikely that there will be enough supply to keep up with demand as lithium producers face financing constraints, Mining Weekly reported.

* Mineral Resources Ltd. estimated the construction for the 2x 28,000 tonnes lithium hydroxide modules at its Wodgina mine will cost approximately US$300 million per module, confirming media reports and subject to a feasibility study.

* Lithium Power International Ltd. said that Chile's Constitutional Court has referred legal proceedings over the validity of Codelco's overlapping claims held by its Minera Salar Blanco SpA within the Salar de Maricunga area back to the an appeals court, after ruling that an article being used by Codelco was not a constitutional matter.

* Singapore-based D1 Mint Ltd., creator of a new diamond backed crypto coin, struck a deal with diamond cutting and polishing firm KGK Diamonds to start its diamond reserve with 1,500 investment-grade diamonds, to be delivered by Russian firm PJSC Alrosa, valued at nearly US$20 million, Mining Weekly reported.

INDUSTRY NEWS

* India's National Stock Exchange and Multi Commodity Exchange are in talks over a potential merger and aim to approach market regulator Securities and Exchange Board of India over the matter as early as this month, Business Standard wrote. According to a source, the merger will help the exchanges reinforce their leadership in the equities and commodity derivatives sectors.

* Sierra Leone President Julius Maada Bio will push for a review of mining contracts and the country's mining law to ensure the West African nation benefits from its natural resources, Reuters reported, citing Yusuf Keketoma Sandi, the president's press secretary.

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