TOP NEWS
Sibanye to sell certain West Rand assets for DRDGold stakes worth 1.3B rand
DRDGold Ltd. agreed to purchase portions of Sibanye Gold Ltd.'s West Rand tailings retreatment project assets in South Africa in exchange for about a 38% stake in DRDGold worth approximately 1.3 billion South African rand. The deal also gives Sibanye an option to increase its stake in DRDGold to 50.1% at a discount to the company's trading price within 24 months after the West Rand deal closes, which is expected in the second quarter of next year.
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.
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, is hinged 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 coming weeks, ABC reported.
DIVERSIFIED
* Deutsche Bank reiterated its buy rating on BHP Billiton Group and gave the mining giant's stock a price target of 1,650 pence per share, indicating a potential upside of 20.9% from BHP's 1,365-pence opening price Nov. 21, DirectorsTalk Interviews wrote.
BASE METALS
* According to Reuters, Chilean state copper miner Codelco could get an investment boost regardless of who wins the upcoming presidential election as both candidates pledged to scrap a law that mandates Codelco to hand over 10% of its export sales to the military. However, even if the law is repealed, Congress will decide what the company does with the funds.
* PT Antam (Persero) Tbk. plans to raise its nickel ore sales by 162% to 11 million tonnes in 2018 from an estimated 4.2 million tonnes this year, Antam CEO Arie Prabowo Ariotedjo told Reuters.
* CuDeco Ltd. paid A$650,000 to settle a case in the Supreme Court of Queensland, Australia, filed by former executive chairman and CEO Wayne McCrae for alleged unpaid termination entitlements.
* 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. The Metals and Mining team at Market Intelligence continues to forecast demand outstripping refined production throughout our three-year forecast period, with average annual prices peaking at US$3,208/t in 2018.
* 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 from 2.2x to 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 East Africa, thrown out, Reuters reported.
* Minera La Negra SA de CV plans to mine 1 million tonnes at its silver-copper-lead-zinc operations in Mexico's Querétaro state by the end of the year, 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
* Lawyers representing South African miners who contracted fatal lung diseases such as silicosis and tuberculosis at work said talks over an out-of-court settlement with gold mining companies could result in a deal by December, Reuters wrote.
* Canada's National Contact Point, or NCP, dismissed a complaint regarding the environmental assessment review process for Seabridge Gold Inc.'s KSM gold project in British Columbia.
* Torex Gold Resources Inc. refuted recent media reports that identified the two men gunned down in Mexico's southern Guerrero state to be the striking workers of the company. The company clarified that the incident occurred about 15 kilometers from the El Limon-Guajes gold mine and the two men killed in the course of a dispute were not its employees.
* London-listed Pan African Resources Plc faced significant shareholder opposition to resolutions for the re-election of Keith Spencer to the company's audit committee, endorsement of the company's remuneration policy, authorization of directors to allot equity securities and disapplication of pre-emption rights during the Nov. 21 annual meeting.
* Champion Bear Resources Ltd. unveiled an initial resource estimate for its Plomp Farm gold deposit in Ontario. 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.
* 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.
* Environmental minister Luis Gilberto Murillo said 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
* 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.
* PhosAgro booked a 41% plunge on a yearly basis in net income for the third quarter to 7.34 billion Russian rubles, despite higher fertilizer sales volumes and increased revenues of 46.45 billion rubles due to factors including a stronger ruble. EBITDA in the period also slipped 22% to 13.62 billion rubles from a year ago.
* Ferroglobe PLC plans to acquire a 100% interest in manganese alloys plants in Dunkirk, France, and Mo I Rana, Norway, from a Glencore Plc unit.
* Fertoz Ltd. signed an exclusive marketing agreement to sell organic rock phosphate from Mexico-based Krezco Fosfatos SA de CV in the U.S. and Canada.
* Phosphate fertilizers producer Itafos is undertaking a nonbrokered private placement to raise about C$96 million for acquisitions and working capital.
* 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.
* 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%.
* Mineral Resources Ltd. booked a 41.54% protest vote against its remuneration report as shareholders remain concerned over a 58% salary increase for Managing Director Chris Ellison to A$5.2 million this year and over the calculation of the company's long-term incentives, The West Australian wrote.
* 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.
* Rio Tinto, Canada's Wealth Minerals Ltd. and Chinese private equity firm GSR Capital are considering bidding for a stake in Chile's Sociedad Quimica y Minera de Chile SA, which Potash Corp. of Saskatchewan Inc. needs to divest as part of its merger with Agrium Inc., Reuters wrote citing banking sources. Business News Americas earlier reported that Rio Tinto is said to be working with Credit Suisse and Rothschild for a bid, though the mining giant has previously declined to comment on the matter.
* 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 London Metal Exchange started a consultation with users over a range of waivers and discounts for when it starts to charge fees on off-exchange, over-the-counter contracts. According to Reuters, the consultation will run until January next year, with a view to enacting the new charges in April 2018.
* The lower house of Brazil's Congress approved a bill that raises mining royalties on certain commodities such as iron ore and gold, as part of broader sector reforms proposed by President Michel Temer, Reuters reported. The bill will be passed to the Senate and must be fully approved by Nov. 28 or it will expire.
* 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. ET and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.
