TOP NEWS
2 law firms investigating potential securities claims against Glencore's Katanga unit
Rosen Law Firm and Strosberg Sasso Sutts LLP are separately investigating potential securities claims against Glencore Plc unit Katanga Mining Ltd., resulting from allegations that the company may have issued materially misleading business information to investors. Rosen is also preparing a class-action lawsuit to recover losses suffered by Katanga investors.
Glencore estimates 170,000-tonne global nickel market deficit this year
Glencore estimates a 170,000-tonne global nickel supply deficit this year on the back of a 9% increase in demand from the steel sector, Bloomberg News reported, citing Owen Gibbs, a senior nickel trader at the commodities giant. Bloomberg said the forecast comes ahead of the expected demand boost from electric cars and the figures are among the biggest in years and are higher than most deficit forecasts.
Adani's Carmichael coal mine development hinged on Queensland vote
The development of supporting infrastructure for Adani Enterprises Ltd.'s A$16.5 billion Carmichael coal mine in Queensland, Australia, hinges on the state's elections this weekend, where incumbent State Premier Annastacia Palaszczuk is seeking a second term, Bloomberg News reported. Meanwhile, the company is close to securing financing from Chinese state-owned enterprises for the mine and railway project, with an announcement expected in the coming weeks, ABC reported.
BASE METALS
* S&P Global Market Intelligence has upgraded its nickel price forecasts. Near-term market supply/demand has not altered significantly, but investor sentiment, momentum and a shift higher in the trading range prompted this revision. The average forecast three-month price for this year has been raised 2.5% to US$10,431/t. Projections for 2018 and 2019 are US$11,206/t and US$11,696/t, respectively, higher by 9.1% and 12.8%.
* S&P Global Market Intelligence's underlying supply/demand balance for zinc this year and beyond remains essentially unchanged. We continue to forecast demand outstripping refined production throughout our three-year forecast period, with average annual prices peaking at US$3,208/t in 2018, according to the metals and mining team at S&P Global Market Intelligence.
* PJSC Norilsk Nickel Co. may revise the formula for dividend calculation, as President Vladimir Potanin offered to lower the upper threshold of the net-debt-to-EBITDA ratio to 2x from 2.2x, with 30% of EBITDA to go to dividend payments should it exceed the ratio, Vedomosti reported.
* A British Columbia Appeals court dismissed Nevsun Resources Ltd.'s bid to have a lawsuit by Eritreans workers, who claim they were forced to work at its mine in Eritrea, thrown out, Reuters reported.
* Minera La Negra SA de CV plans to mine a total of 1 million tonnes at its silver-copper-lead-zinc operations in Mexico's Querétaro state by year-end, in line with past annual production levels, El Financiero reported, citing operations director Luis Enrique Ramírez.
* Ferrum Crescent Ltd. received a three-year exploration license extension for its Toral lead-zinc project in Spain, valid up to November 2020.
* Ivanhoe Mines Ltd. started developing two declines at the high-grade Kakula discovery, part of its Kamoa-Kakula copper joint venture in the Democratic Republic of the Congo.
* Nevada Sunrise Gold Corp. agreed to acquire the Lovelock cobalt mine in Nevada.
PRECIOUS METALS
* Torex Gold Resources Inc. refuted recent reports that the two men shot in Mexico's southern Guerrero state were striking workers of the company. The company said the incident occurred about 15 kilometers from the El Limon-Guajes gold mine and the two men killed were not its employees.
* Champion Bear Resources Ltd. unveiled an initial resource estimate for its Plomp Farm gold deposit in Ontario, Canada. The deposit is estimated to host total inferred resources of 5.7 million tonnes grading 0.58 g/t gold and 0.21 g/t silver for 107,100 ounces of gold and 38,400 ounces of silver, using a cutoff grade of 0.30 g/t of gold.
* Fresnillo Plc targets to end the year with investments of US$700 million, silver production of between 52 million ounces and 53 million ounces and an output of 65 million ounces of silver at its Sonora and Zacatecas operations in Mexico, Milenio reported, citing CEO Octavio Alvídrez.
* Orosur Mining Inc. expects the deferral of approximately 2,000 ounces of gold from its second-quarter production at the San Gregorio mine in Uruguay due to an extended downtime of two long hole drill rigs.
* Starcore International Mines Ltd. entered into a letter of intent to acquire a land package of about 21,000 hectares known as the Santa Fe silver-gold project in Sinaloa, Mexico.
* Sulliden Mining Capital Inc. raised C$23.0 million through the placement of 14,030,000 subscription receipts at C$1.64 each in connection with Pitchblack Resources Ltd.'s acquisition of the Troilus gold project in Quebec.
* Newcrest Mining Ltd. signed an option and farm-in agreement to acquire up to an 80% stake in Mirasol Resources Ltd.'s Altazor gold project in Chile.
* Lupaka Gold Corp. completed the sale of its Crucero gold project in Peru to GoldMining Inc. for C$5.7 million in cash and shares.
* Environmental minister Luis Gilberto Murillo said that the Colombian government will not authorize mining in the wetland regions, in a bid to quell local communities' concerns over the development of the Soto Norte gold project, owned by Abu Dhabi sovereign investment fund Mubadala, news agency EFE reported. The project, pending approval by Colombian regulators, would border the Santurban wetland area.
BULK COMMODITIES
* S&P Global Ratings affirmed China Hongqiao Group Ltd's B long-term corporate credit rating and its B long-term issue rating due to favorable aluminum prices and the company's lower capital spending. In addition, the rating agency removed the CreditWatch negative rating, with a stable outlook.
* PJSC PhosAgro plans to raise CapEx to 25 billion Russian rubles in 2018 and 2019 as it pushes ahead with expansion projects aimed at boosting overall capacity. At a board meeting, CEO Andrey Guryev outlined the company's priority investment projects, including constructing new sulfuric and nitric acid production facilities.
* Nucor Corp. plans to build a rebar micro mill in Missouri, which represents at least US$250 million in new investments and is expected to start up in 2019 pending the final approval and award of state and local incentives as well as required permits and regulatory approvals.
* Iron ore exploration budgets are down again this year as volatile Fe 62% prices continue to unnerve mining investors and perpetuate a mood of caution among explorers. Using data compiled as part of the Corporate Exploration Strategies series, S&P Global Market Intelligence has identified 80 companies that have budgeted a total of US$433 million for iron ore exploration this year, compared with 131 companies budgeting about US$492 million in 2016, representing a year-over-year fall of 12%.
* Yara International ASA is set to spend tens of millions testing a new "renewable ammonia" pilot plant in Western Australia's Pilbara, The Australian reported. The plant aims to use solar energy to help convert nitrogen in the air into ammonia and would sit near the company's existing gas-fed Burrup fertilizer plants.
* Labor representatives are increasing pressure on ThyssenKrupp AG in talks over the group's planned steel joint venture with Tata Steel Ltd.'s European operations, saying they remained concerned over jobs and plants, Reuters reported.
* An updated preliminary economic assessment for Black Iron Inc.'s Shymanivske iron ore project in Ukraine outlined a phased development plan to significantly reduce upfront construction costs.
SPECIALTY
* Namibia and De Beers SA joint venture Debmarine Namibia plans to construct the world's largest custom-built diamond mining vessel. The vessel, expected to cost around US$142 million, is anticipated to commence operations in 2021, International Mining reported.
* Alexander Mining Plc's joint venture partner Multicom lodged its mining lease application for the Saint Elmo vanadium project in Queensland, Australia. The company expects to begin work at the project in early 2018.
* Canadian Metals Inc. acquired the Chesnaye and Chisholm Brook silica properties in New Brunswick by issuing 5 million shares to an arm's length vendor.
* Triton Minerals Ltd. submitted a 25-year mining concession application to Mozambique's Instituto Nacional de Minas for the Ancuabe graphite project.
INDUSTRY NEWS
* The South African government will be unable to implement by its December target amendments to mineral resource laws that will benefit mining investors in the country, Reuters reported, citing a senior parliamentary official.
* Philippine President Rodrigo Duterte threatened to close any mine that supports Maoist rebels waging a guerrilla war to topple the government, Reuters reported. Duterte said some mines were paying "revolutionary taxes" to the rebels in exchange for allowing their operations in remote areas to continue.
* Separately, Philippine President Rodrigo Duterte upheld a ban on new open pit mining projects, despite a government panel recommending to reverse the order, Reuters reported, citing Department of Environment and Natural Resources Secretary Roy Cimatu.
* Zimbabwean President Robert Mugabe has stepped down amid military pressure and after the country's parliament started an impeachment process against him, the Associated Press reported.
* Zambian mining firms called for the streamlining of small-scale mining operations in the country in order for the government to reap financial benefits from the sub-sector, Xinhua News reported.
S&P Global Ratings and S&P Global Market Intelligence are both owned by S&P Global Inc.
The Daily Dose is updated as of 7 a.m. London time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.
