TOP NEWS
Sirius shares plummet on Woodsmith project funding troubles
Sirius Minerals PLC's shares lost over half of their value in early afternoon trade in London after the company terminated its proposed US$500 million senior secured notes offering, which was suspended in August, citing ongoing weakness in bond markets. The company is planning a six-month strategic review to reduce the rate of development across its Woodsmith potash project in Yorkshire, U.K., to preserve funding and allow more time to develop alternatives.
China Gold eyes deals up to US$2B to bolster production pipeline
China Gold International Resources Corp. Ltd. is willing to spend US$1 billion to US$2 billion to acquire operating mines that have ramp-up plans or projects nearing production in order to bolster its gold production pipeline, Bloomberg News reported, citing Executive Vice President Jerry Xie. Further, the international unit of Chinese state-owned China National Gold Group Corp. is considering buying properties that Barrick Gold Corp. and Newmont Goldcorp Corp. will divest after recent mergers, on top of potential acquisitions of single-asset companies, the report said.
Eldorado seeks partner for Skouries gold project, in royalty talks with Greece
Eldorado Gold Corp. will look for a partner to fund the remaining US$680 million of development costs at its stalled Skouries gold project in Greece, Reuters reported, citing CEO George Burns. Meanwhile, Greek Energy Minister Kostis Hatzidakis said the country is in discussions with the company to increase royalties at its local mines, with the miner open to discussing the proposals.
DIVERSIFIED
* BHP Group disclosed in its fiscal 2019 economic contribution report that it paid US$9.1 billion in taxes, royalties and other payments to governments. Of the total, the mining giant paid US$7.1 billion to Australia, representing 78.7% of its total payments.
* BHP CEO Andrew Mackenzie's pay for financial year 2019 was slashed by 24% to US$3.5 million in the wake of a fatality at the Saraji coal mine in Queensland, Australia, in December 2018, according to the company's annual report for fiscal 2019.
BASE METALS
* Auroch Minerals Ltd. kicked off a maiden 3,000-meter drilling program at its recently acquired Saints nickel project in Western Australia.
* The government of the Bangsamoro Autonomous Region in Muslim Mindanao in the southern Philippines suspended four nickel miners indefinitely amid an industry audit, Reuters reported, citing the region's environment, natural resources and energy minister, Abdulraof Abdul Macacua.
* Nyrstar NV temporarily resumed operations of the old sinter plant at its Port Pirie smelter in South Australia, Reuters reported. The company secured approval from South Australia's environmental protection authority to restart the old sinter plant to cover the shutdown period during ongoing repairs at the new plant.
* United States Antimony Corp. received a US$510,528 grant to supply antimony trisulfide to the U.S. Defense Department's Defense Logistics Agency, part of the government's plan to establish a domestic supply of the material and reduce its reliance on imports from China.
* Jubilee Metals Group PLC is targeting the first plated copper cathode production at the Kabwe project in Zambia by early in the fourth quarter, after it brought the copper leaching circuit online to process historical tailings and third-party sourced run-of-mine material.
PRECIOUS METALS
* The plan of arrangement for consolidating Barrick Gold Corp.'s interest in Acacia Mining PLC became effective. Acacia's listing on the London Stock Exchange will be canceled, effective Sept. 18.
* A court in Uruguay approved the payment plan agreed in December 2018 between Orosur Mining Inc.'s wholly owned unit Loryser SA and its creditors. The company started a reorganization and credit protection process in June 2018 due to ongoing operational challenges at the San Gregorio gold mine.
* Zhaojin Mining Industry Co. Ltd. will issue up to 1.5 billion Chinese yuan in debt Sept. 19 and use proceeds for general working capital and to repay loans.
* Newmont Goldcorp closed its offering of US$700 million of 2.800% senior notes due 2029, receiving US$690 million in net proceeds after deducting underwriting discounts. It will use the proceeds to repay its outstanding 5.125% senior notes due Oct. 1 and for general corporate purposes.
* A revised feasibility study for Lydian International Ltd.'s Amulsar gold project in Armenia slashed the net present value, discounted at 5%, to US$363 million, from US$386 million outlined in 2017, to reflect the impact of an anti-mining blockade.
* Evolution Mining Ltd. may earn a 75% stake in the Lake Austin area of Musgrave Minerals Ltd.'s Cue gold project in Western Australia by sole funding A$18 million over five years under an earn-in and exploration joint venture agreement. Evolution also entered into an earn-in deal with private company Basin Gold Pty. Ltd. to earn 70% interest in the Crush Creek gold project in Queensland, Australia.
* Pretium Resources Inc. entered into an agreement to repurchase 100% of its gold off-take for about US$80 million from Triple Flag Mining Finance Bermuda Ltd. and Osisko Bermuda Ltd.
* B2Gold Corp. aims to start construction of the Fekola gold expansion project in Mali in October and complete construction by the end of July 2020.
* Maverix Metals Inc. secured commitments to increase its revolving credit facility to US$120 million from US$75 million for future royalty and stream acquisitions and general corporate purposes.
* Osisko Metals Inc. secured an option to earn up to 75% stake in O3 Mining Inc.'s Ashuanipi gold project in Quebec. The company will also start an 8,000-meter drilling program on its Ascension zinc-lead-silver project in Quebec this month.
BULK COMMODITIES
* South Africa's Smada Group is partnering with Nehawu Investment Holdings and DSA Investments unit Orchid Mining to submit a joint bid for Tegeta Exploration and Resources Pty. Ltd., which owns the Optimum and Koornfontein collieries and a stake in the Richards Bay coal terminal, Bloomberg News reported. Orchid Mining holds 49% of the joint venture, while the South African partners hold the remaining 51%.
* ArcelorMittal signed a framework collaboration agreement commissioning Midrex Technologies to design a demonstration plant for steel production with hydrogen at its Hamburg site in Germany, which is expected to produce about 100,000 tonnes of direct reduced iron per year.
* Exxaro Resources Ltd. purchased The Tata Power Co. Ltd.'s half of Cennergi (Pty.) Ltd., a clean energy joint venture, in a 1.55 billion South African rand deal as the company looks to restructure its business amid rising carbon emission costs, Bloomberg News reported.
* Metinvest BV offered to purchase up to US$440 million of its outstanding US$944.5 million of senior notes due 2023. The offer is scheduled to expire Oct. 15.
* Parkway Minerals NL completed the acquisition of Consolidated Potash Corp. with the issue of 98.83% consideration shares. The company said it is in the process of acquiring the remaining 1.17%.
* Nucor Corp. expects its third quarter EPS to range between 75 U.S. cents and 80 cents, falling from the US$2.13 posted for the same period of 2018. Results for the comparable year-ago period included a noncash impairment of US$110.0 million, or 26 cents per share, related to Nucor's natural gas well assets, and a gain of US$24.8 million, or 6 cents per share, related to insurance recoveries.
* PAO Severstal's Steel Capital SA issued US$800 million of 3.15% loan participation notes due 2024 under its US$4.5 billion loan participation note program for financing a loan to Severstal, which the parent plans to mainly use for general corporate purposes.
* New Hope Corp. Ltd. reported a fiscal 2019 net profit of A$210.7 million, rising from restated year-ago earnings of A$149.5 million thanks to improved profits driven by the acquisition of an additional stake in the Bengalla coal mine in New South Wales, Australia.
* A fire razed the Optimum coal mine in South Africa, which was placed under administration in 2018, News24.com reported, citing the Middleburg Observer. Damages are estimated at between 15 million South African rand and 20 million rand, the report said, citing business rescue practitioner Louis Klopper.
* VRX Silica Ltd.'s bankable feasibility study for its Arrowsmith Central silica sand project, part of the Arrowsmith project area in Western Australia, outlined a posttax net present value, discounted at 10%, of A$147.6 million, a 60% internal rate of return and a 2.8-year payback period.
* Stelco Holdings Inc. unit Stelco Inc. plans to offer about US$300 million in senior secured notes due 2024 through a private placement to fund capital expenditure requirements and potential acquisitions.
* China Coal Energy Co. Ltd.'s August coal production climbed 37.2% year over year to 9.0 million tonnes, while sales rose 14.6% to 19.5 Mt.
* Already hurt by U.S. and EU tariffs, the Turkish steel sector may face further losses when the EU applies new restrictions on steel imports, Reuters reported, citing Adnan Aslan, chairman of Turkey's Steel Exporters' Association.
SPECIALTY
* Bluejay Mining PLC formally lodged its exploitation license application for the Dundas ilmenite project with Greenland's mineral license and safety authority. The exploitation license covers the onshore portion of Dundas and will allow the company to produce 440,000 tonnes per annum.
* Walkabout Resources Ltd. said its inquiry about the general graphite market in China concluded that there has not been a material decrease in spot prices for all graphite flake sizes in China. Earlier this month, Syrah Resources Ltd. announced plans to drastically reduce graphite production in the fourth quarter, citing a downturn in the spot prices for natural flake graphite in China.
* China Molybdenum Co. Ltd. won an auction of ammonium paratungstate inventory, formerly held by the Fanya Metal Exchange, for 3.27 billion Chinese yuan, Reuters reported.
* Sayona Mining Ltd. intends to bid for North American Lithium Inc.'s shuttered lithium operation in Quebec following a court ruling starting the sale process.
* Peninsula Energy Ltd. expects to recognize an impairment expense of between US$20 million and US$30 million in fiscal 2019 resulting from its market capitalization over the past 18 months being below the carrying value of its Lance uranium project in Wyoming.
INDUSTRY NEWS
* Results from a survey of 800 senior respondents across 399 mining companies, conducted by Australian management consultancy VCI, revealed that environmental concerns will be the top driver of innovation out to 2035 more than commodity prices, while operating costs were the main source of value from innovation followed by risk reduction and throughput.
* The U.S. Department of Justice charged one former and two current JPMorgan Chase & Co. employees with manipulating the markets for precious metals futures contracts.
* Investors and economists in Egypt expect the country's reduced mining taxes to boost investment, Al-Monitor reported. In August, Egyptian lawmakers passed a law lowering miners' fees to between 5% and 15%, from 20%.
* Total mining investment in Peru in 2019 is expected to be the same or lower than 2018's US$4.95 billion, Peruvian mining association Sociedad Nacional de Minería, Petróleo y Energía's president, Manuel Fumagalli, told daily El Comercio on the sidelines of the Perumini mining convention.
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