TOP NEWS
Anglo American targets 25% capacity boost at Moranbah, Grosvenor coal mines
Anglo American PLC aims to raise coal production capacity at the
Report: Adaro says Australian approval in place for US$2.25B coal mine buy
Australian authorities approved PT Adaro Energy Tbk.'s planned US$2.25 billion acquisition of Rio Tinto's 80% stake in the Kestrel coal mine in Queensland, Reuters wrote, citing Adaro's chief legal officer and director, Mohammad Syah Indra Aman. Under the deal, Adaro will buy a 48% stake in the mine, while its partner EMR Capital will take the remaining 52%. Adaro expects to finalize financing for the transaction July 1.
Report: US to impose tariffs on European steel, aluminum imports
U.S. President Donald Trump's administration will apply import tariffs on European steel and aluminum after failing to reach an agreement with EU officials that would have avoided the levies, according to The Wall Street Journal, which cited sources familiar with the matter. Washington could make the announcement as early as May 31 and allow the extended temporary tariff exemption granted to the bloc to expire June 1. The Trump administration's plans could still change if the U.S. and EU strike a last-minute deal, one of the sources added.
DIVERSIFIED
* A new regulatory framework is due to be in place by 2020 for seabed mining, which Vale SA unit Vale Australia Pty. Ltd.'s former general counsel Robert Milbourne said has the potential to "revolutionize" the sector across various commodities. Barrick Gold Corp. Chief Innovation Officer Michelle Ash said seabed mining presents a number of challenges, but "they can almost certainly be overcome in the next 30 years or so."
* A consortium that includes a unit of Glencore PLC expressed initial interest in acquiring a majority stake in Greek oil refiner Hellenic Petroleum, Reuters wrote, citing the country's privatizations agency.
* PNX Metals Ltd. signed a binding term sheet to acquire a 90% interest in three exploration licenses that form the polymetallic Kilfoyle project in Australia's Northern Territory.
BASE METALS
* People briefed on the situation told the Financial Times that U.S. sanctions imposed on United Co. Rusal PLC are also casting doubt on dividends from its 27.8% stake in PJSC Norilsk Nickel Co., which amounted to over 48 billion Russian rubles in 2017.
* The closure of the Tuticorin copper smelter in Tamil Nadu, India, will "not materially affect" Vedanta Resources PLC's cash flows, S&P Global Ratings said, noting that its Indian copper smelting operations only yielded marginal contributions to the group, though it provided cash flow diversity.
* Cia. de Minas Buenaventura SAA CEO Victor Gobitz said Southern Copper Corp. is evaluating the proposal it put forward for the joint development of the latter's US$2 billion Michiquillay copper project in Peru, Reuters reported.
* Minsur SA expects to secure between US$800 million and US$900 million in financing from a consortium of lenders in August, which will enable the company to begin the US$1.6 billion construction of its Mina Justa copper project in Peru by year-end, Reuters reported.
* Should the Ambatovy nickel-cobalt joint venture require more cash than expected with payments on US$1.6 billion of debt starting in 2019, Sherritt International Corp.'s participation is not guaranteed. "If there's a need for cash we'll look at that on its merits," Sherritt Senior Vice President and CFO Andrew Snowden said. "But we have no appetite to put additional cash into Ambatovy at this point."
* Volcan Compañía Minera SAA suspended mining at the Animón and Islay mines, part of its Chungar zinc-lead-silver operation in Peru, due to "safety concerns," Metal Bulletin reported, citing the company.
* Nyrstar NV refinanced a three-year zinc metal prepay, which was originally signed in December 2015 and had a remaining balance of US$61.7 million, with a new zinc metal prepay for US$125 million. The company will gain a net cash benefit of about US$63 million from the new agreement.
* Power Americas Minerals Corp. agreed to buy the past-producing Thomas Edison cobalt mine located on the company's Kittson property in Ontario. Howard Milne, vice president of business development for the company, told S&P Global Market Intelligence that Power Americas paid a "very nominal" amount of cash for the property.
* Emmerson Resources Ltd. agreed to sell its mothballed Warrego mill lease in Northern Territory, Australia, to Territory Resources Ltd. in exchange for preference over other third parties when the latter builds a processing facility at the site.
* A maiden, open pit, proved and probable ore reserve estimate for Cradle Arc PLC's Mowana copper project in Botswana outlined 370,800 tonnes of copper contained in 31.8 million tonnes grading 1.17% copper. The mine's life was extended by three years to 14 years.
PRECIOUS METALS
* Sibanye Gold Ltd. issued an update to address concerns over recent mine safety incidents, high balance sheet leverage and its planned acquisition of Lonmin PLC, which the miner believes to have caused the recent plunge in its share price and market value.
* Tharisa PLC is considering an investment in Karo Resources' planned US$4.2 billion platinum project in Zimbabwe, Bloomberg News reported, citing Tharisa CEO Phoevos Pouroulis. Karo was founded by Phoevos' father, Loucas Pouroulis.
* PAR Gold Pty. Ltd. reduced its stake in Pan African Resources PLC to 13.7% after selling 130 million Pan African shares, representing a 5.8% stake in the company, at 1.15 South African rand each.
* Bear Creek Mining Corp. is likely to launch a public offering for its Peruvian unit on the Lima stock exchange to help finance its US$550 million Corani silver project in Peru, Reuters reported, citing CFO Paul Tweddle. The Peru-focused Canadian miner could also consider a stake sale in Corani to help fund the project.
* Empire Resources Ltd.'s board believes that the call by dissident shareholders, representing approximately 5% of the company, to oust its entire board is an "opportunistic" move by Brimstone Resources Ltd. to push its interests. Brimstone, which is Empire's joint venture partner for the Penny's Find gold mine, owes approximately A$1.1 million in unfunded contributions and interest for the mine's development costs.
* Gold Fields Ltd. is putting acquisition plans on hold for a year to focus on its existing operations and nearby prospects, Reuters reported, citing CEO Nick Holland, who said the company's finances might be "a little bit negative" this year before likely recovering in 2019. "The strategy of the company now is more focused on organic brownfields, near-mine growth, in and around where we are," he said during an interview at a symposium in Peru.
* Ariana Resources PLC recorded a 270% increase in contained gold at the Kepez prospect, part of its 50%-owned Red Rabbit joint venture in Turkey, to 23,900 ounces of gold and 164,300 ounces of silver contained in 371,000 tonnes grading 2 g/t of gold and 14 g/t of silver in the combined indicated and inferred categories.
* An initial resource estimate for Viscount Mining Corp.'s Silver Cliff property in Colorado outlined an indicated resource of 2.1 million tonnes grading 84 g/t of silver for 5.6 million ounces of silver and an inferred resource of 3.2 million tonnes grading 70 g/t of silver for 7.1 million ounces of silver.
* Gold mining majors such as Newmont Mining Corp., Gold Fields and AngloGold Ashanti Ltd. welcomed Ghana's new tests to certify the value of their exports, Reuters reported, citing the Chamber of Mines. The move comes in addition to customs checks and internal company tests in a bid to tighten control of the sector and tax it appropriately.
* Artemis Resources Ltd. completed the sale of 4 million Novo Resources Corp. shares to Kirkland Lake Gold Ltd. priced at C$5 apiece for a total of C$20 million.
* AuStar Gold Ltd. poured the first gold at the Morning Star gold mine in Victoria, Australia, since 2012.
* Pershing Gold Corp. said a feasibility study on the past-producing Relief Canyon gold-silver property in Nevada defined a net present value of US$133 million, using a 5% discount rate, with an 87% internal rate of return and US$176 million in net cash flow, all after taxes.
BULK COMMODITIES
* Kobe Steel Ltd.'s offices are expected to be searched by Japanese police and prosecutors this week, Bloomberg News reported, citing Japanese daily Yomiuri Shimbun. The steel manufacturer's offices in Kobe and Tokyo and its plants will be investigated by the Tokyo Metropolitan Police and the Tokyo District Public Prosecutors Office for allegedly violating the unfair competition prevention law.
* Alumina Ltd. is forecasting a shortage of bauxite in China within three years and is looking to acquire new assets and expand its existing mines to take advantage of the expected supply gap, The Australian Financial Review reported.
* The preliminary economic assessment on Great Panther Silver Ltd.'s Coricancha gold project in Peru pegged a net present value of US$16.6 million, using a 7.5% discount, and an 81% internal rate of return. Initial CapEx is estimated at US$8.8 million, while life-of-mine sustaining capital is forecast to reach US$23.6 million.
* The Indian government is reviving a proposal to establish a coal sector regulator as the country is set to start auctioning coal blocks for commercial mining in June, Mining Weekly reported.
* Metinvest BV's revenue spiked 63% to US$3.02 billion in the first quarter, attributed to higher selling prices and demand for pig iron, slabs, flat products, coke and pellets. Adjusted EBITDA for the period rose 61% to US$649 million.
* Antitrust authority Fiscalía Nacional Económica approved Gerdau SA's sale of three long-steel industrial units, with a combined annual production capacity of 520,000 tonnes, and a distribution network to Chilean family-owned groups Matco and Ingeniería e Inversiones, Metal Bulletin reported. The transaction is set to conclude in July.
* Pig iron production in Brazil has completely halted due to a truck drivers' strike over recent fuel price increases, Metal Bulletin reported, citing sources.
* S&P Global Ratings lowered Westmoreland Coal Co.'s credit rating to SD from CCC-, citing the company's US$110 million bridge loan financing that subordinates the first-lien lenders' debt to the new loan.
* Mechel PAO is in negotiations to acquire the JSC Izhevsk Metallurgy and Machine building plant, Vedomosti reported.
* Egyptian Steel Group kicked off commercial production at its fourth steel plant in Egypt's Al Ain Al Sokhna, Metal Bulletin reported. The plant has the capacity to produce 830,000 tonnes of billet and 530,000 tonnes of rebar per annum.
SPECIALTY
* Largo Resources Ltd.'s Maracás Menchen vanadium mine in Brazil was "minimally impacted" by the national truckers' strike in the country, and production at the mine is expected to resume as early as May 31.
* Nemaska Lithium Inc. completed a C$1.1 billion financing package for the construction and commissioning of its Whabouchi lithium mine in Quebec. Construction at the mine is expected to be completed within 15 months, while the construction of the Shawinigan plant in Quebec is expected to be completed in about two years.
* Kimberley Diamonds Ltd.'s Lerala diamond mine in Botswana was sold for US$8.1 million in an online auction, Bloomberg News reported. "I can confirm the winning bid was $8.12 million but beyond that I cannot comment on the identity of the bidder nor any other information, until the liquidator gives me the go ahead," said John Taylor, an associate director at auctioneer GoIndustry DoveBid South Africa.
* New Energy Metals Corp. signed an option agreement to purchase the Atacama lithium project from an undisclosed seller.
* POZ Minerals Ltd. secured an option to sell its Musgraves vanadium project in Western Australia, in a bid to focus on the Blina diamond project.
INDUSTRY NEWS
* The Mining Association of Canada said the one-day strike held by Canadian Pacific Railway engineers and conductors is not expected to significantly impact mining operations in the country, Mining Weekly wrote.
* Mining companies operating in the Democratic Republic of the Congo threatened to launch legal action against the government if their concerns over the new mining code continue to be ignored, Reuters reported, citing a letter sent by the companies to the mines minister.
* Peruvian Energy and Mines Minister Francisco Ismodes said 12 mining projects in the country, worth US$14.02 billion, will enter the construction phase this year, news agency Andina reported.
* South African Mineral Resources Minister Gwede Mantashe will conclude nationwide consultations on the Mining Charter on May 31, Mining Weekly reported. The charter will be finalized by June.
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