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In This List

Alcoa board approves business split

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


Alcoa board approves business split

TOP NEWS

Alcoa board approves business split

Alcoa Inc.'s board approved the company's separation into two independent, publicly traded companies, effective before market opening on Nov. 1. Alcoa Inc. will change its name to Arconic Inc. and hold a 19.9% stake in Alcoa Corp., the new mining and smelting company that will be listed on the NYSE through a tax-free spinoff to its shareholders.

Kirkland, Newmarket to merge into C$2.4B gold miner

Kirkland Lake Gold Inc. and Newmarket Gold Inc. plan to merge to form a new mid-tier gold company with a market capitalization of about C$2.4 billion, with closing anticipated in the fourth quarter. Under the definitive deal, Kirkland Lake Gold common share will be exchanged for 2.1053 Newmarket shares.

S&P lifts Glencore's outlook to positive on strong operating performance

S&P Global Ratings revised the outlook on Glencore Plc to positive from stable and affirmed the long-term and short-term corporate credit ratings at BBB-/A-3. The outlook reflects the Swiss mining giant's strengthening financial position in 2016 and better operating performance ahead of S&P's base case price assumptions.

BASE METALS

* Golden Cross Resources Ltd. sold its wholly owned Coppervale property at Molong in New South Wales, Australia, for A$368,000. The property was acquired by Hellsten SF Pty. Ltd., a company associated with Golden Cross Chairman Ken Hellsten.

* The board of Yunnan Tin Co. Ltd. approved a plan to apply for up to 3.1 billion Chinese yuan in credit lines from commercial banks.

* A massive blackout in South Australia on Sept. 28 forced BHP Billiton Group to suspend production at its Olympic Dam copper-uranium mine and demobilize the site. The company will disclose the potential production impacts in its third-quarter operational review, scheduled for release on Oct. 19.

* Nyrstar NV advised that its metals processing segment EBITDA will be affected by about €3 million to €5 million following a statewide power loss in South Australia that led to an outage at its Port Pirie zinc-lead smelter on Sept. 28.

* Galaxy Resources Ltd. completed its compulsory acquisition of the remaining shares in General Mining Corp. Ltd.

PRECIOUS METALS

* Once Barrick Gold Corp. meets all the requirements determined by the provincial mining authority after the Sept. 8 cyanide spill at the Veladero gold mine in Argentina, both the state and federal governments will assess whether to lift the current suspension of operations, said San Juan Gov. Sergio Uñac, La Nación reported.

* Bolivian state miner Comibol will resume production Oct. 10 at the Amayapampa gold mine in Bolivia, La Razón reported. The government suspended activities at the mine in March after reversing the operational license granted to Minera Nueva Vista SA, a subsidiary of LionGold Corp. Ltd., due to alleged money laundering and illegal mining activities.

* Red Eagle Mining Corp., the owner of the Santa Rosa gold project, plans to invest only in Colombia at the moment, where real investment opportunities are opening up particularly after the peace treaty signed between the government and the FARC guerrillas, which would expand the territory for exploration, CEO Ian Slater told Semana Económica in an interview.

* Protesters are demanding payment for environmental damage, jobs and water for their communities as they are blocking the entrance of Goldcorp Inc.'s Penasquito mining complex in Mexico, Reuters reported, citing Felipe Pinedo, a protest leader.

* Rockcliff Copper Corp. entered an option agreement dated Sept. 20 pursuant to which it can earn up to a 100% interest in the Bur deposit, which forms part of Flin Flon Regional property in Manitoba, and is owned by a HudBay Minerals Inc. subsidiary.

* TomaGold Corp. agreed to acquire Skyharbour Resources Ltd.'s interest in the Baird gold property in Ontario in exchange for 600,000 TomaGold shares.

* Mine Rescue Service dropped its plan to inspect localized geological conditions underground at the Lily gold mine in South Africa after its risk assessment revealed deterioration along a 600-millimeter rescue shaft and the original ventilation shaft, rendering it unsafe for entry, Mining Weekly wrote.

BULK COMMODITIES

* Vale SA's board has approved the new terms related to the sale of its coal assets in Mozambique to Mitsui & Co. Ltd. Under the new terms, Mitsui agreed to pay up to US$450 million for a stake in the Moatize mine, with US$255 million for 15% of the 95% stake of Vale in the project, and up to US$195 million based on conditions such as the operation's performance.

* Separately, Vale is planning to form a strategic partnership in fertilizers, as the company was unsuccessful in finding a partner or selling the segment in recent years, Reuters wrote. In a recent board meeting, no decision was made on the sale of Vale's fertilizer unit.

* South32 Ltd., which is determined to shed its "CrapCo" image, no longer sees itself as a spinoff of BHP Billiton's lower quality assets, but as a unique mining house that is actually outperforming its former parent.

* South32, however, conceded that it needs to improve its safety record following four fatalities in the last financial year. "The one area I feel that we didn't perform well at all as an organization was on safety," said Ricus Grimbeek, president and COO, Australia.

* Grimbeek also said the surge in coal prices driven by increased Chinese demand would be at risk if the country moves to reverse working-day restrictions, which would boost domestic production, Bloomberg wrote.

* Miners who struck deals when coal prices were at a slump — such as Stanmore Coal Ltd., who bought the Isaac Plains metallurgical coal mine in Queensland, Australia, for A$1 in July 2015 — are well placed to enjoy the current rally, in which coking coal prices have surged almost 170% this year, Bloomberg News reported.

* United Co. RUSAL Plc is in a contradictory position; while its credit covenants allow it to pay dividends, the company needs the approval of its creditors to do so, Kommersant reported. RUSAL is forced to give banks all the available funds of more than US$300 million on the balance sheet, but the bankers have yet to approve the payments.

* Rio de Janeiro environmental agencies in Brazil granted an operation license to Companhia Siderurgica do Atlântico's slab mill to operate together with a thermal power plant, Reuters reported. The grant came six years after the ThyssenKrupp AG unit started activities and after numerous judicial disputes.

* Despite sanctions due to North Korea's nuclear and missile tests, the country's coal exports to China reached a record high in August at 2.5 million tonnes, The Korea Herald reported. The coal shipments, the biggest since 1998 when the compilation of related data began, rose as North Korea slashed prices to boost its exports to its strongest ally.

* The Indian Government is urging National Aluminium Co. Ltd. to reconsider its expansion plans abroad, including plans to build a US$2 billion aluminum smelter in Iran, Reuters reported, citing Mines Secretary Balvinder Kumar. The official asked the state-owned aluminum producer to "expand their domestic capacity" instead.

* As part of China's drive to curb industrial overcapacity, the National Development and Reform Commission canceled the licenses of 28 coal operations and halted production at 286, following a safety review of 4,624 coal mines, Bloomberg News wrote, citing a statement from the regulator.

* Western Australia's government approved the development of iron ore deposits at Rio Tinto's Western Turner Syncline mine in the Pilbara region. State Development Minister Bill Marmion said CapEx on the project is expected to be A$18 million, with 40 construction jobs to be created.

* Wescoal Holdings Ltd. entered into a subscription agreement with a consortium of existing company shareholders, pursuant to which it will raise its black ownership to about 59%. The company's long-term coal supply deal with the state-owned Eskom requires it to increase its black ownership to more than 51% by year end.

* According to officials in India's Coal Ministry and at Coal India Ltd., excess coal is likely to delay the auction of more coal blocks and offset the government's target of reaching 1 billion tonnes of annual output by 2020, as there will be a crunch in the number of investors willing to invest in new projects, but valuations at auctions won't meet government expectations, Mining Weekly reported.

* British Steel, a spinoff of Tata Steel Ltd., has returned to profit in its first 100 days of trading, Reuters reported. Greybull Capital bought the steelworks for £1 and revived the historic British Steel brand, saving some 4,000 jobs in the U.K.'s troubled steel sector.

* Tata Steel's managing director for India and Southeast Asia, T.V. Narendran, said the company's board would review a proposal for the expansion of its Kalinganagar steel plant within six months, Reuters reported. Narendran also expects the company to produce 11.3 million tonnes of crude steel this financial year, 1 million tonnes more than the previous fiscal year's output, The Economic Times of India wrote.

* Goh Kian Guan, chief investment officer of Chinese scrap metal recycler Chiho-Tiande Group Ltd., has said the growing scrap business will become a threat for mining companies, Bloomberg News reported. The Chinese firm is acquiring German counterpart Scholz Holding GmbH, one of the biggest names in Europe's scrap business.

SPECIALTY

* Gemfields Plc's emerald auction sold 3.3 million carats out of the 4.1 million carats offered for total sales of US$10.7 million, averaging US$3.28 per carat. Meanwhile, the amethyst auction posted revenues of US$400,000, selling 11.6 million carats out of the 13.6 million offered for an average of 3.73 cents per carat.

* The board of Bacanora Minerals Ltd. rejected the offer of Rare Earth Minerals Plc to acquire the former for between 135 and 145 Rare Earth shares for each Bacanora share held. Rare Earth holds a 19.8% stake in Bacanora.

* According to Swakop Uranium CEO Zheng Keping, the company's US$2 billion Husab mine in Namibia is slated to start production in October, with targeted output of up to 15 million tonnes of uranium per annum, The Namibian reported.

INDUSTRY NEWS

* Chinese newspaper reports have flagged a slate of debt defaults among state-owned mining companies this year — comprised of two steel producers, a coal miner and a nonferrous metals company — as an indicator that the government is becoming less willing to offer bailouts and may allow debt-laden mining companies to restructure their financial liabilities instead.

S&P Global Ratings and SNL Metals and Mining, an offering of 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.