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Glencore Q1 copper, zinc output down; Samarco faces 155B reais lawsuit; Moody's shifts outlook on Anglo to positive

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

State of the Market: Mining Q2-2020


Glencore Q1 copper, zinc output down; Samarco faces 155B reais lawsuit; Moody's shifts outlook on Anglo to positive

TOP NEWS

Glencore's Q1 copper, zinc, coal output falls on cutbacks

posted a in first quarter productionfor copper, zinc, lead, coal as well as oil as it followed through on previouslyannounced production cuts. Production from own sources dropped 4% for copper to335,000 tonnes, 28% for zinc to 257,100 tonnes, and 6% for lead to 71,000 tonnes,on a yearly basis. Coal production of 29.7 million tonnes was down 17% year overyear. Production of nickel, gold, silver and cobalt improved on a yearly basis.

Brazilian prosecutors slap Samarco, owners with 155 billion reais civillawsuit

Brazilianprosecutors filed a 155 billion Brazilian reais civil lawsuit against Vale SA, BHPBilliton Group and their joint venture Samarco Mineração SA over a dam burst at the iron ore mine in the country'sMinas Gerais state that claimed 19 lives, Bloomberg News reported. The lawsuit demandsan initial payment of 7.8 billion reais to be made within 30 days, challenging thepreviously signed agreement between the Brazilian government and the companies.

Moody's revises Anglo Americanoutlook to positive

Followingthe US$1.5 billion sale of its niobium and phosphates businesses, Moody's changedthe outlook for all ratings of AngloAmerican Plc and its rated subsidiaries to positive from negative. Concurrently,Moody's has affirmed the Ba3 corporate family rating of Anglo American, the Ba3senior unsecured instrument ratings of Anglo American Capital plc, as well as Anglo's(P)NP short-term ratings and the Baa2.za/P-2.za national scale ratings of AngloAmerican SA Finance Ltd.

DIVERSIFIED

* posted year over year production in the firstquarter for copper, zinc, lead, coal as well as oil as it followed through on previouslyannounced production cuts. Production from own sources in the three months, dropped4% for copper to 335,000 tonnes, 28% for zinc to 257,100 tonnes, and 6% for leadto 71,000 tonnes, on a yearly basis. Coal production of 29.7 million tonnes wasdown 17% year over year. Production of nickel, gold, silver and cobalt improvedon a yearly basis.

* Brazilianprosecutors filed a 155 billion Brazilian reais civil lawsuit against Vale SA, BHPBilliton Group and their joint venture Samarco Mineração SA over a dam burst at the iron ore mine in the country'sMinas Gerais state that claimed 19 lives, Bloomberg News reported. The lawsuit demandsan initial payment of 7.8 billion reais to be made within 30 days, challenging thepreviously signed agreement between the Brazilian government and the companies.

* BHPresponded that it hasnot received formal notice of the claim from the federal public prosecution service,adding that it believes the March agreement entered with the Federal Attorney Generalof Brazil, the States of Espirito Santo and Minas Gerais and certain other publicauthorities will provide the "appropriate platform" to address the impactof the Samarco dam failure.

* Followingthe US$1.5 billion sale of its niobium and phosphates businesses, Moody's changedthe outlook for all ratings of AngloAmerican Plc and its rated subsidiaries to positive from negative. Concurrently,Moody's has affirmed the Ba3 corporate family rating of Anglo American Plc, theBa3 senior unsecured instrument ratings of Anglo American Capital plc, as well asAnglo's (P)NP short-term ratings and the Baa2.za/P-2.za national scale ratings ofAnglo American SA Finance Ltd.

BASE METALS

* Threeworkers of Grupo México SAB de CV'sBuenavista coppermine in Mexico's Sonora state died in a labor accident. According to local mediareports, a mining truck with a capacity of 360-tonnes crushed the vehicle they weredriving inside the mine, daily El Universalreported.

* Elementos Ltd.and Chinalco Yunnan Copper ResourcesLtd. have dissolvedtheir Millennium copper joint venture in Queensland, with the parties selling theirinterest in five mining leases to ASX-listed Hammer Metals Ltd.

* 's net losswidened to US$4.4 millionin the first quarter, from US$4.1 million a year ago, while revenue increased toUS$19.3 million from US$17.7 million as lower copper prices offset higher production.

* Chilewould reach its maximum production of fine copper of 9.54 million tonnes in thenext 10 years, up 60% compared to projections for this year of 5.77 million tonnes,according to a study of mining development scenarios in Chile by 2035 from UniversidadCatólica, business daily Diario Pyme reported.

* Ofthe 15 larger mining operations in Chile, 10 recorded losses in 2015, six of whichwent from profits in 2014 into lossmaking territory in 2015, including , , , Mantos Copper, and . Despite recordinga poorer performance in 2015, Escondida,Collahuasi, , , and continue to make a profit,daily Diario Financiero reported.

* Followingthe US$1.5 billion deal to buy Anglo's Brazilian niobium and phosphate assets, is mullingover buying more mining assetsfrom western rival companies in a bid to expand its international business, theFinancial Times reported, citing two seniorcompany executives.

* said the temporarytailings disposal suspension at its Proyectode Rio Tinto copper project in Spain has now been liftedand the company can continue to use the tailings facilities, effective immediately.The company added that the commissioning of the expansion project has started andwill offset any lost production resulting from the temporary suspension.

PRECIOUS METALS

* In an attempt to bring its net debt down to US$18 billion,Glencore is mulling overthe option to sell its Vasilkovskojegold mine Kazakhstan, in a deal that may fetch the Swiss miner some US$2 billion,after interested investors approached the company, the Financial Times reported.

* posted profitattributable to equity shareholders of US$54.4 million, up from US$48.2 million a year ago reflecting the increasein profit from mining, lower exploration expenditure during the quarter, partiallyoffset by increased taxes during the current quarter. Production increased to 291,912ounces from 279,531 ounces, and sales increased to 291,385 ounces, from 283,624ounces.

* Primero MiningCorp. posted a net lossof US$13.2 million for the first quarter of 2016, swinging from a year-ago profitof US$3.6 million. The loss included the impact of foreign exchange rate changeson deferred tax balances and an adjustment to remove the normalization of inventorycosts at San Dimas mine, after taxes. Revenue fell to US$50.5 million, comparedto US$73.3 million a year earlier.

* recorded of US$35.5million in the first quarter, compared to net earnings of US$31.9 million in theyear ago quarter. During the three-month period, the company paid out US$13.7 millionto shareholders through its monthly dividend. Quarterly sales reached 4.6 millionounces of silver, 50,598 ounces of gold, 2,386 tonnes of lead and 3,336 tonnes ofzinc. This year, Tahoe expects to produce 18 million ounces to 21 million ouncesof silver, and 370,000 ounces to 430,000 ounces of gold.

* 's attributable in the first quarterfell to 191,000 ounces from 208,000 ounces in the year-ago period. The company'snet earnings from continuing operations attributable to equity holders was US$53.1million, reversing the US$16.5 million net loss the previous year, primarily dueto the gain on the sale of gold bullion.

* posted net earningsin the first quarter of US$18.1 million, representing a decline of 56% year over year, while its revenue for thequarter dropped 66% year over year to US$73.2 million. The company's gold productionin the quarter totaled 86,444 ounces, down from 170,683 ounces produced a year ago,while its gold sales also declined 65% year over year to 61,744 ounces.

* Gold Road ResourcesLtd. signed a native title agreement with the Yika People and the CosmoNewberry Aboriginal Corp. over its Gruyere and Central Bore gold projects, partof the Yamarna projectin Western Australia. The company will now submit the State Deed for the grant ofa mining lease for its Gruyere and Central Bore projects. The company is aimingto complete feasibility studies on the Gruyere project by year-end, which will enableit to make a final investment decision.

* Mariana ResourcesLtd. closed a private placement of 330 million shares to raise £6 million,to be used mainly for the advancement of the Hot Maden gold-copper project in Turkey. TSX-listed has become asignificant shareholder in Mariana with this private placement, holding 7.56% ofthe company shares.

* Central RandGold Ltd. said it engaged legal advisers to defend a wind-up application made by Puno Gold InvestmentsPty. Ltd. to wind up Central Rand Gold South Africa, the company's principal operatingsubsidiary and the holder of all of the mining and prospecting rights. The companysaid the application has no merit.

* Atlantic GoldCorp. entered into a goldprice hedging contracts covering 100,000 ounces of production from itsMoose River Consolidatedgold project in Nova Scotia. The contracts were executed on a spot price basis ofC$1,619 per ounce, and will be scheduled out for delivery over the term of the company'sproject loan facility.

* Chalice GoldMines Ltd. agreed to sell its Cameron gold project in Ontario, to First Mining Finance Corp. in a deal valued at C$13 million. First Mining will issue 32,260,836common shares to Chalice and grant it a 1% net smelter royalty on certain miningclaims within the project that are not subject to existing royalties. Chalice willhold approximately 8.1% of First Mining's capital following the deal.

* China is planningto change procedures for cross-border trade of gold and gold products by allowingcompanies to apply for a single permit that can be used for up to 12 shipments,Bloomberg News wrote, citing the People's Bank of China.

* Middle IslandResources Ltd. is looking toacquire Black Oak MineralsLtd.'s Sandstonegold project in Western Australia, for A$2.5 million. The project includes a 600,000tonne-per-annum carbon-in-pulp processing plant, associated infrastructure and aconsiderable inventory of spares. The plant's recommissioning costs will come inbetween A$5 million and A$8 million.

* Anexclusive report by Colombian news radio W said AngloGold Ashanti Ltd. is being investigatedby the Office of the Attorney General in three separate investigations concerningillegal mining activities. The first enquiry relates to the miner's operations inindigenous reserves in Chocó region, the second involves illegal exploitation ofmineral deposits in Santander de Quilichao, Veredas del Palmar, San Vicente, andSanta Rita regions, and the third relates to alleged business deals between thecompany and paramilitary groups, drug traffickers and land usurpers through itsGramalote project.

* Thecrack in a pipeline of the ElChanate mine of Minera Santa Rita S de RL de CV, a subsidiary companyof the Canadian miner Alamos GoldInc., led to a spill of 400 cubic meters of cyanide-rich solution innorthern Mexico. Sources toldregional daily Zócalo that the spill wasthe result of poor safety measures and lack of maintenance on site.

* securedthe exclusive right to evaluate Tierra Nuevo Mining Ltd.'s Noche Buena gold-silvertailings project in Mexico for a further 120 days for consideration of US$25,000,which will enable further metallurgical test work to be undertaken to define theprocess required to produce a salable gold and silver concentrate.

* 's high-gradegold mine and mill at El Limonin Colombia has completed recommissioningafter a US$2.5 million refurbishment. The full circuit from crushing to gold productionwill be operational by May 6, at an initial rate of about 40 tonnes per day.

* installedand commissioned its newcustom-made gold processing plant at its High Grade Zone mine at in Papua New Guinea.

* Chile'sgold projects portfolio totals US$1.28 billion this year, down 93% compared with2011, mainly consisting of ExeterResource Corp.'s Caspiche,Kingsgate Consolidated Ltd.'sNueva EsperanzaAtacama Pacific Gold Corp.'sCerro Maricungaand Kinross Gold Corp.'sLa Coipa project,according to data from Chilean copper commission Cochilco. The lower amount of investmentin gold is mostly due to the absence of large projects, given the suspension ofBarrick Gold Corp.'s and the restructuringof Barrick's Cerro Casaleand Teck Resources Ltd.'sEl Morro projects,daily Pulso reported.

BULK COMMODITIES

* Mosaic Co.reported first-quarter 2016 net earnings of US$256.8 million, from US$294.8 million booked a yearearlier. Net sales also fell to US$1.67 billion, from US$2.14 billion last year,reflecting lower prices, as well as lower potash sales volumes. Company CEO JocO'Rourke expects profitability to improve in the second half of the year.

* Kibo Mining Plcis proceeding to bring to a financial close at its Mbeya coal-to-power project in Tanzania after receivinga definitive feasibility study for the power station. The study recommendeda two-unit, circulating fluidized bed boiler design as the optimal solution to generate300 MW. This will use 1.5 million tonnes of run-of mine coal per annum from themine site, with capacity to increase electricity output to 600 MW. Costs have alsocome in well below the original pre-feasibility estimate, the company said. "ThePDFS and parallel work streams referred to above represent the significant workwe have done, and continue to do, in de-risking the project and in improving confidencelevels," company CEO Louis Coetzee said.

* London-listedNew World Resources Plc'smain coal-mining unit, OKD a.s.,filed a bankruptcy petitionin a Czech court, claiming Europe's first major coal-sector scalp amid one of theworst-ever market downturns for the fuel and steel-making ingredient. New WorldResources said OKD's bankruptcy filing came after discussions with the Czech governmentand a group of major creditors "made no meaningful progress."

* Meanwhile,the company said as OKD is its only trading subsidiary, the likely impact of OKDis that the remainder of the group would be "wound up or broken up in an orderly manner." Sharesof the London-listed company have been suspended from trading on the London StockExchange, effective immediately while New World Resources' requests to suspend shareson the Prague Stock Exchange and Warsaw Stock Exchange are currently being processed.

* its US$980 million aggregate principalamount of 8.375% senior secured notes due 2021. The notes will be issued at a priceequal to 100% of their face value. The notes will pay interest semi-annually inarrears on Jan. 1 and July 1 of each year, beginning Jan. 1, 2017.

* 's net earnings attributableto equity holders for the first quarter droppedto US$2 million, from US$12 million booked in the same period in 2015, due to weakerselling prices across all nutrients. Total sales slipped to US$2.73 billion fromUS$2.87 billion. For the year, the company expects to book diluted earnings pershare between US$5.25 to US$6.25, lower than the previous estimate of US$5.50 toUS$7.00.

* issueda US$650 million repayment noticefor the company's 2019 senior secured term loan, which will be made at par fromFortescue's accumulated cash and will generate interest savings of US$28 millionper year. According to Fortescue CFO Stephen Pearce, the debt repayment of US$650million, in addition to the US$577 million that the company recently paid for 2019senior unsecured notes, brings total debt repayments for fiscal year 2016 to US$2.3billion, generating annual interest savings of US$164 million.

* 'snet loss attributable to shareholders widenedto 332.9 million Chinese yuan in the first quarter, from a net loss of 190.0 millionyuan posted a year ago. The company produced 490,300 tonnes of steel bars, 347,900tonnes of plates and strips, and 1.0 million tonnes of other steel products in thefirst quarter.

* Kommersant reported that the European Commissionin May will introduce permissive mechanism whereby importers of steel will haveto ask Brussels for licenses to import rolled products and pipes, in a move whichis expected impact most metallurgical companies in Russia.

* issued promissorynotes with a volume of €600 million, divided in fixed and variable tranches in maturitiesfrom three years to seven years. More than 80 investors participated in the notes,which hold an average interest rate on all tranches of about 1.00% per annum. Theproceeds from the issue will increase the company's financial flexibility and againstits existing credit line.

* NorthChina's Shanxi province, a major coal producing region in the country, has issueda document that prohibitsapproval of any new coal mine during the 13th five-year period, in an attemptto cut overcapacity, the National BusinessDaily reported.

SPECIALTY

* 's Areva Mines Niger unitcriticized the 72-hour worker strike at its Cominak uranium mine, saying the strike violated an earlieragreement, Reuters reported. The company added that the company has already increasedthe bonus payouts by 50% year over year after negotiations.

* Thestrategic review for Rio Tintounit Energy Resources of AustraliaLtd. determined three near-term strategic prioritiesfor the company including continuation of the progressive rehabilitation ofthe Ranger projectarea, maximize the generation of cash flow from the processing of stockpiled ore,which can potentially be sustained until late 2020, and preserve the option forthe future development of Ranger 3 Deeps via ongoing care and maintenance.

* 's 75%-owned in Zambia achievedproduction of 7.1 million carats of emerald and beryl, compared to 9.9 millioncarats in the year-ago quarter. Production from the 75%-owned Montepuez Ruby Mining Limitada operations in Mozambique increasedto 2.0 million carats of ruby and corundum, from 1.4 million carats a year ago.

INDUSTRY NEWS

* GrahamShort, the National Policy Manager for Australia's Association of Mining and ExplorationCompanies Inc. said a A$100 million allocation to Geoscience Australia to furtherinnovation in mining is "excellentnews" and the reduction in corporate tax for Australian resident companiesto 25% by 2026/27 is "a significant step in the right direction."

* Revenuesobtained through the Brazilian mining royalty scheme, Financial Compensation forthe Exploration of Mineral Resources, totaled 158.2 million Brazilian reais in April,up 43.6% compared to the same month in 2015, according to National Department ofMineral Production figures, Notícias de Mineraçãoreported.

* Miningproduction in Mexico fell 6.5% in February, the largest drop since November 2013,and down 4.5% compared with February last year, according to national statisticsinstitute INEGI figures, daily Vanguardiareported.

The Daily Dose is updated as of7 a.m. New York time, and scans news sources published in Chinese, English, Indonesian,Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links mayrequire a subscription.