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Kobe Steel to pay clients' costs for mislabeled products

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Kobe Steel to pay clients' costs for mislabeled products

TOP NEWS

Kobe Steel plans to pay clients' costs relating to mislabeled products

Kobe Steel Ltd. plans to pay customers' costs related to Kobe Steel's mislabeled products, Reuters reported, citing CEO Hiroya Kawasaki. The company extended the list of products compromised by falsified data, including aluminum, copper, iron powder products and metal materials used in optical discs. It is thought that Kobe Steel has not yet received any demand for compensation, but its shares have dropped by as much as 9.1% in the wake of the scandal.

PotashCorp completes US$3B expansion of Rocanville ops

Potash Corp. of Saskatchewan Inc. completed the US$3 billion expansion of its Rocanville operation in Saskatchewan. The company increased the mine's nameplate capacity to 6.5 million tonnes from 3 million tonnes previously, while the workforce was doubled to more than 750. According to PotashCorp, Rocanville is now the largest potash mine in the world.

Investor group sets sights on Rio Tinto's Queensland coal assets

Apollo Global Management and Canada Pension Plan have teamed up with Xcoal Energy & Resources and a former Glencore Plc executive to make a play for Rio Tinto's Hail Creek and Kestrel coal mines in Queensland, Australia, which could fetch the miner about US$2 billion, Reuters reported, citing sources. Anglo American Plc had expressed interest, but the waning outlook for metallurgical coal might discourage it from taking part in the sale. One of the sources added that Whitehaven Coal Ltd. is also likely to make an offer.

DIVERSIFIED

* S&P Global Ratings upgraded its long-term corporate credit rating on Teck Resources Ltd. to BB+ from BB. The outlook for the company is stable. Teck's credit metrics are expected to materially exceed its previous forecast due to improving cash flow from stronger metallurgical coal and base metal prices as well as debt repayment.

BASE METALS

* Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.'s net profit attributable to shareholders for the first three quarters may surge by between 388.20% and 449.22% from the 163.9 million Chinese yuan recorded a year ago, due to higher prices of lead and zinc products and strengthened cost controls.

* Queensland Mining Corp. Ltd. is selling its White Range copper project in Queensland, Australia, to Moly Mines Ltd. in a A$53 million binding deal.

* Atalaya Mining plc adjusted its full-year copper production guidance to between 36,000 and 39,000 tonnes from the previous guidance of between 34,000 and 40,000 tonnes, as output from the company's Proyecto de Rio Tinto mine rose 18% to a record 10,679 tonnes of copper in concentrate in the September quarter.

* Workers at Codelco's Chuquicamata temporarily blocked access to the copper mine in northern Chile to protest unpaid bonuses pledged by the company, among other claims, El Mercurio reported. The blockade had no impact on production, the company said.

* Mitsui & Co. Ltd. and Técnicas de Desalinazación de Aguas SA's 50/50 joint venture, Caitan SpA, has been tapped to build a desalination plant for BHP Billiton Group's Spence copper mine in Chile as part of a US$2.5 billion mine expansion approved earlier this year, Mining.com reported.

* Chilean copper production totaled 3.4 million tonnes between January and August, down 5% compared with the same period in 2016, marking the commodity's lowest level in five years, Pulso reported, citing official government figures.

PRECIOUS METALS

* Global Credit Ratings, an emerging markets-focused rating agency, upgraded Northam Platinum Ltd.'s long-term credit rating to A-(ZA) from BBB+(ZA) and retained the miner's short-term credit rating at A1-(ZA), with a stable outlook.

* Altius Resources Inc. terminated an option agreement with Mountain Lake Minerals Inc. over the latter's Moosehead gold project in Newfoundland and Labrador.

* Production from Anglo Asian Mining Plc's majority-owned Gedabek gold mine in Azerbaijan rose by 19% to 14,468 ounces of gold, bolstered by additional output from the Ugur open pit, from 12,140 ounces produced in the preceding quarter.

* The government of China's Binzhou city, home to aluminum major China Hongqiao Group Ltd, has ordered the closure of 2.57 million tonnes of annual smelting capacity this winter, Reuters reported, citing a government document.

* Cia. de Minas Buenaventura SAA's gold production from its mines in the third quarter climbed 44.1% to 399,997 ounces, while silver output was up 16.1% at about 6.7 million ounces compared to the same quarter of 2016. Zinc and copper production, meanwhile, slid 4.4% to 17,713 tonnes and 6.2% to 11,531 tonnes, respectively.

* Armenia has great potential for exploration and the discovery of new deposits, but government reforms are needed before metals and mining companies would be able to exploit the country's mineral wealth, the head of the investment projects directorate at Polymetal International Plc, Tamara Golovina, told S&P Global Market Intelligence during an interview at the Moscow MINEX conference.

* Over the last 20 years, there has been very little gold exploration in Russia, and as a result, Russian companies are overly reliant on Soviet-era deposits, Polymetal CEO Vitaly Nesis said at the MINEX Russia conference in Moscow. Only 15% of the gold produced in Russia comes from deposits that were discovered in the last 20 years, he said, adding that the Soviet system for exploration was abandoned in 1996.

* Focus Minerals Ltd.'s pre-feasibility study confirmed the financial and technical viability for underground mining at the Bonnie Vale deposit and open pit mining at the Greenfields and Brilliant deposits, part of its Coolgardie gold property in Western Australia, estimating a pretax net present value, discounted at 7.5%, of A$37 million and a 28% internal rate of return, based on a gold price of A$1,580 per ounce.

* Third-quarter gold production from SSR Mining Inc.'s Seabee mine in Saskatchewan has been impacted by nearby forest fires, driving total gold output down about 25.6% compared to the prior quarter to 56,757 ounces. Meanwhile, a decline in grade and recoveries at the Puna operations in Argentina saw silver production drop 20.9% to 1.5 million ounces compared to the prior quarter.

* Royal Bafokeng Platinum Ltd.'s platinum production in the third quarter rose 6.9% year-over-year to 57,700 ounces. The company delivered 793,000 tonnes to its concentrators, an increase of 7.2% from the year-ago quarter, while it milled 825,000 tonnes in the three-month period, up 8.1%.

* Eastern Goldfields Ltd. is in talks with a New York-based corporate adviser to manage capital raising initiatives in order to avoid insolvency and resume trading on the ASX, Mining News reported.

* Russian Platinum postponed the launch of its Jerooy deposit in Kyrgyzstan for two years due to problems with the infrastructure that did not allow the property to meet the terms of the license received in 2015, Vedomosti reported.

* Osisko Gold Royalties Ltd. agreed to acquire a 1% net smelter royalty over Osisko Metals Inc.'s projects within Quebec and the Bathurst Mining Camp in New Brunswick for C$5 million.

* Transition Metals Corp. unit Canadian Gold Miner Corp. entered an agreement to secure interest in two exploration-stage gold properties from Osisko Mining Inc. Osisko will own about a 19.9% stake in Canadian Gold following the transaction.

BULK COMMODITIES

* South32 Ltd. restarted production at the Longwall 707 of its Appin coal mine in New South Wales, Australia, after completing a review of its Illawarra metallurgical coal operations. The company plans to operate a single longwall at the Appin mine in line with prescribed ramp-up conditions throughout fiscal 2018 and return to a two-longwall operation in the December 2018 quarter.

* Alcoa Inc.'s Portland aluminum smelter in Victoria, Australia, has returned to full production capacity after suffering power issues in December 2016, Mining Weekly reported.

* ArcelorMittal increased the size of its debt buyback offer to US$1.41 billion, from up to US$1.25 billion previously, and accepted for repurchase about US$1.19 billion in 2022, 2039, and 2041 notes by the early tender date of Oct. 12.

* Hesteel Co. Ltd. expects its net profit attributable to shareholders for the third quarter to range between 899.2 million Chinese yuan and 1.18 billion yuan, compared to the net profit of 534.3 million yuan recorded a year ago, attributing the expected improved profitability to price hikes of steel products and strengthened cost controls.

* Prairie Mining Ltd. is in advanced talks with Chinese banks to secure funding for its Jan Karski coking coal mine in Poland, Reuters reported, citing company CEO Ben Stoikovich. Upfront capital costs for the mine development are pegged at US$630 million, with Chinese lenders expected to finance 85% of the total.

* The Western Australian Supreme Court ruled that Gina Rinehart's Hancock Prospecting Pty. Ltd. must pay millions in legal costs to Peter Wright's heirs, after the failed fight to take control of half of the Rhodes Ridge iron ore deposit, The West Australian reported.

SPECIALTY

* Electricite de France SA terminated its long-term supply agreement with Paladin Energy Ltd. after the latter failed to repay about US$277 million to EDF by the Oct. 9 due date. EDF remains a creditor in Paladin's administration.

* Bluejay Mining plc started the feasibility study for its Dundas ilmenite project in Greenland, formerly the Pituffik project and appointed a group of advisors to help complete the study and advance the project into production in 2018.

* Prices of rare earth minerals, including praseodymium neodymium metal and neodymium praseodymium oxides, are set to decrease in the next few months as oversupply and lower prices for other commodities hurt off-take, China Daily reported, citing industry analysts.

INDUSTRY NEWS

* The Peruvian government will promote the development of five mining projects that will account for US$10 billion in investments in 2018, América Economía reported, citing the Council of Ministers President Mercedes Aráoz. The projects cited were Anglo American's Quellaveco and Michiquillay, Minsur SA's Mina Justa and Chinalco Mining Corp. International's Toromocho copper projects, and Bear Creek Mining Corp.'s Corani silver mine.

* South Africa's mining production in August increased 6.9% year on year, with iron ore, diamonds and gold as biggest contributors to the jump, new data from Statistics South Africa showed.

* Wally Schumann, the minister of industry, tourism and investment for Canada's Northwest Territories, dismissed suggestions of a government-issued discussion paper that the region had fallen behind in attracting investment for exploration. Speaking with S&P Global Market Intelligence, the minister threw cold water on a proposal to create special mining zones as a means to increase investment.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

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