TOP NEWS
Merkel: EU preparing countermeasures against Trump's metal tariffs
Europe will implement countermeasures against U.S. tariffs on steel and aluminum just like Canada, German Chancellor Angela Merkel said in an interview after the G7 summit, Reuters reported June 11. Merkel said the European Union is preparing countermeasures in line with World Trade Organization rules, saying that the planned action is to not "let ourselves be ripped off again and again."
South Africa's AMCU seeks higher minimum wage from gold miners
South Africa's Association of Mineworkers and Construction Union, or AMCU, will demand a monthly minimum pay of 12,500 South African rand in upcoming wage negotiations with the country's major gold producers, Bloomberg News reported. AMCU President Joseph Mathunjwa also called for better housing, maternity leave benefits and a five-day work week. AMCU is the second-largest union at AngloGold Ashanti Ltd., Sibanye Gold Ltd. and Harmony Gold Mining Co. Ltd., among others.
Vale reaches US$700M cobalt streaming deal
Vale SA struck a US$700 million deal to sell future cobalt production from its Voisey's Bay nickel-copper-cobalt complex in Newfoundland and Labrador, Bloomberg News reported, citing sources. The move comes amid an increased demand for cobalt, which is a key ingredient in lithium-ion batteries, with prices more than tripling in the past two years.
BASE METALS
* The union at BHP Billiton Group's Escondida copper mine in Chile is hopeful of reaching a deal on a new labor contract with the company, Reuters reported. "A favorable scenario has emerged for developing negotiations to reach a satisfactory agreement," the union said in a statement, noting higher copper prices.
* Pembridge Resources PLC agreed to receive US$30 million in prepayment financing from a leading global Japanese trading house, through an off-take agreement for 125,000 tonnes of copper concentrate to be produced at the Minto mine in the Yukon Territory, Canada.
PRECIOUS METALS
* Just over three months after an earthquake cut power to the Porgera gold mine, putting a damper on production, Zijin Mining Group Co. Ltd. said that in early June, the supply of electricity to the mine had resumed to approximately 50% of pre-earthquake levels. Zijin also said that it expects full power to be restored within six to eight weeks.
* An Ethiopian investment syndicate will acquire a 30% stake in KEFI Minerals PLC unit KEFI Minerals Ethiopia Ltd., which holds the company's interest in Tulu Kapi Gold Mines Share Co. Ltd. Following the syndicate's investment of US$30 million, it will own 23% of the Tulu Kapi gold project, with KEFI owning 54% and the Ethiopian government holding 23%.
* Mountain Lake Minerals Inc. entered a definitive agreement to purchase another medical marijuana company, 1157630 B.C. Ltd., in additional to the previously announced acquisition of 1151024 B.C. Ltd. The company also executed an arrangement agreement to spin out its mining assets to existing shareholders following the acquisitions.
* Harmony Gold said a worker "was fatally injured in a fall of ground incident" at its Bambanani gold mine in South Africa.
* A fifth body was recovered from the Cieneguita gold-silver complex in northern Mexico where a tailings dam collapsed last week, Mining.com reported. Two other miners remain missing.
* Pasu Loharjun, Thailand's permanent secretary for industry, dismissed a rumor that the government was trying to pay Kingsgate Consolidated Ltd. to end the latter's arbitration proceedings against Thailand in connection with the company's subsidiary Akara Resources PCL's Chatree gold mine in the country, Manager Daily reported.
* AM Resources Corp.'s AM Resources SAS unit entered into an option deal to acquire a 60% interest in the Mico gold property in Colombia from Universal Geoaguas Ltda.
* Sothic Capital Management, the second largest investor of Petropavlovsk PLC, said it was strongly against a motion filed by CABS Platform and Slevin that seeks to replace the current board, as the move could lead to the sale of the company at a discount. Sothic holds 10.9% of U.K.-listed Petropavlovsk.
BULK COMMODITIES
* The Australian Securities and Investments Commission said that former Rio Tinto CEO Tom Albanese and former CFO Guy Elliott avoided US$2.4 billion impairment over the Mozambique coal assets by withholding negative information on reserves, valuation and coal transport options from the board's audit committee, The Australian reported. The regulator added that it was taking court action against the miner and the former executives for misleading and deceptive conduct in delaying Mozambique writedowns.
* The Trump administration pushed for the Central Arizona Project, or CAP, to stick with the Navajo coal-fired plant, but the water supplier chose to switch to solar power instead. CAP's board voted to sign a 20-year power purchase agreement with Origis Energy USA Inc. for 30 MW of solar generation capacity and associated energy from the project, as well as a five-year agreement with Salt River Project for 35 MW of capacity and energy from a combination of Salt River Project's solar facilities.
* ArcelorMittal and Chicago-based LanzaTech Inc. kicked off a €150 million project to revolutionize blast furnace carbon emissions capture. ArcelorMittal started construction in Ghent, Belgium, to house a new installation that will convert carbon-containing gas from its blast furnaces into bioethanol.
* The Chinese government told several large steel mills to increase their year-over-year import volumes of U.S. met coals, as part of the country's attempts to narrow its significant trade deficit with the U.S., sources told S&P Global Platts. Ministry of Commerce officials have approached at least two steelmakers that have previously procured U.S. met coal and instructed them to procure more U.S. exports, sources close to the matter said.
* European Commission President Jean-Claude Juncker offered U.S. President Donald Trump a joint assessment of EU-U.S. trade to help resolve a dispute over the steel and aluminum import tariffs the EU believes is based on a misreading of trade data, Reuters reported.
* Turkish Economy Minister Nihat Zeybekci said the country will launch an anti-dumping probe into U.S. companies in response to U.S. tariffs on steel and aluminum imports, Reuters reported, citing the Dogan news agency. "However the USA looks at our products, we will look at their products in the same way. We will launch important processes within a few days," Zeybekci was quoted as saying.
* An Aluminum Corp. of China Ltd. unit and the Guinean government agreed to create a mining company that will hold licenses to the Boffa Nord and Boffa Sord bauxite projects in the African country. The project development cost is estimated at around US$706 million.
* PJSC Uralkali closed a 15 billion Russian ruble exchange bond issue, which is set to mature in five years at a rate of 7.70% per year.
* According to the Financial Times, United Co. Rusal PLC will have difficulties maintaining its stake in PJSC Norilsk Nickel Co. as U.S. sanctions threaten Rusal's debt deal with Sberbank, for which it used a 25% Norilsk Nickel stake as collateral. Rusal holds about a 27.8% shareholding in Norilsk Nickel.
* China's aluminum exports increased to 485,000 tonnes in May, the highest in more than three years and the second-highest on record, despite U.S. tariffs, Reuters wrote, citing customs data. Chinese steel product exports in the month, meanwhile, fell 1.4% year on year to 6.88 million tonnes.
* Ncondezi Energy Ltd. said its potential partners for the joint development of its 300-MW power and coal mine project in Mozambique accepted the proposed integrated financial model, for submission to Electricidade de Moçambique EP and the Ministry of Mineral Resources and Energy.
* Harvest Minerals Ltd. signed a sales contract for an initial order of 50,000 tonnes of its multi-nutrient natural fertilizer and remineralizer, KPfértil, produced at its Arapua fertilizer project in Minas Gerais, Brazil. The company is also looking to raise about £9 million through a common share placement, to fund the expansion of the production capabilities of Arapua.
SPECIALTY
* De Beers SA awarded a transportation contract for its Venetia diamond mine in South Africa, valued at between 600 million South African rand and 700 million rand, to six local black economic empowerment partners, Mining Weekly reported. De Beers is investing US$2 billion in an underground project to extend the life of the mine to 2045.
* PJSC Alrosa's diamond sales reached US$288.0 million in May, down significantly from US$405.3 million in April. Yuri Okoyomov, Alrosa's deputy CEO, said there was a planned sales decline in May driven by the sale of accumulated inventories and a seasonal drop in current output.
* Between 3,000 and 5,000 protesters hailing from Spain, Portugal and France rallied on the weekend against the construction of Berkeley Energia Ltd.'s Salamanca uranium mine in Spain, Mining.com reported, citing local news sources. The protesters said uranium exploitation in Salamanca would have serious environmental effects.
* A key Mineral Deposits Ltd. shareholder is not too impressed with an A$291 million offer made by Eramet in April, Reuters reported. "At this stage we are not inclined to accept Eramet's current bid of A$1.46 per share," Simon Mawhinney, chief investment officer at Allan Gray Australia, told the newswire. Allan Gray Australia holds a 13.4% stake in Mineral Deposits.
INDUSTRY NEWS
* U.S. President Donald Trump said the trade partners "have no choice" but to agree to the country's terms and confirmed that he pushed for a tariff-free G-7 as he left the summit early. "No tariffs, no barriers and no subsidies. That's the way it should be," he said.
* Democratic Republic of the Congo Prime Minister Bruno Tshibala signed a regulation to implement the country's new mining code into law with no changes, Reuters reported, citing advisers to the prime minister. "The decree fully implements the mining code promulgated by the President of the Republic in March," said the premier's legal counsel Anita Lwambwa, confirming that none of the recommendations by the mining industry were included.
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