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Codelco needs US$1B to maintain El Teniente copper output; Peabody to sell Queensland tenements for A$104M; Incitec Pivot's H1'16 net profit falls 78.5% YOY

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


Codelco needs US$1B to maintain El Teniente copper output; Peabody to sell Queensland tenements for A$104M; Incitec Pivot's H1'16 net profit falls 78.5% YOY

TOP NEWS

Codelconeeds US$1B to maintain El Teniente copper output at 450,000 tonnes

Codelco'sEl Teniente copperunit in Chile is developingthree projects to maintain annual production at around 450,000 tonnes of copper,requiring a total investment of US$1 billion. Meanwhile, the mine is also consideringnew initiatives to counteract delays in the US$5.1 billion Nueva Mina expansionproject, deterred until 2022 due to security issues, general manager Mauricio Larraíntold Diario Financiero.

Peabody to sell Queenslandtenements for A$104M

U.S. coal giant Peabody Energy Corp. agreed to sell to Australia-based Pembroke Resources its interest inundeveloped metallurgical reserve tenements in Queensland's Bowen Basin for A$104million in cash plus royalties. Peabody is offering its Olive Downs South, OliveDowns South Extended, Willunga and Olive Downs North tenements, all of which consistof undeveloped proven and probable reserves totaling about 165 million tons.

Incitec Pivot's H1'16profit falls 78.5% YOY on noncash impairment

IncitecPivot Ltd. posted a net profit after tax of A$31.5 million for the halfyear ended March 31, after recording a A$105.6 million noncash impairment to theasset value of the Gibson Island fertilizer manufacturing plant in Queensland. Thefigure represents a 78.5% dropcompared to the year-ago net profit after tax, which totaled A$146.4 million.

DIVERSIFIED

* Accordingto Moody's, the 155 billion Brazilian reais civil lawsuit filed against , BHP Billiton Group and their joint venture , will be for the companiesas it would require them to almost immediately pay US$2.2 billion and make commitmentsfor the total US$44 billion amount.

*Golden Rim Resources Ltd.is proposing to acquireHerencia Resources Plc'ssubsidiary, Paguanta Resources (Chile)SA, which holds a 70% interest in the Paguanta project in northern Chile, for US$2.3million.

BASE METALS

* Codelco'sEl Teniente copperunit in Chile is developingthree projects to maintain annual production at around 450,000 tonnes of copper,requiring a total investment of US$1 billion. Meanwhile, the mine is also consideringnew initiatives to counteract delays in the US$5.1 billion Nueva Mina expansionproject, deterred until 2022 due to security issues, general manager Mauricio Larraíntold Diario Financiero.

* is its stake in to China Molybdenum Co. Ltd. for US$2.65 billion in cash andcontingent consideration of up to US$120 million. Freeport owns a 70% interest inTF Holdings and thereby an effective 56% stake in the Tenke Fungurume copper mine in the Democratic Republicof the Congo. The company will also negotiate definitive agreements exclusivelywith China Molybdenum to sell its interests in Freeport Cobalt, including the cobalt refinery inFinland for US$100 million and the wholly owned Kisanfu copper-cobalt exploration project in the DemocraticRepublic of Congo for US$50 million.

* Meanwhile,Rio Tinto's isalready mulling over potential expansions based on nearby deposits that are notpart of the current mine plan for Oyu Tolgoi, The Australian reported."We don't expect Oyu Tolgoi to stay at current (ore) production for the longterm," said Turquoise Hill chief Jeff Tygesen.

PRECIOUS METALS

* A preliminaryeconomic assessment for Falco ResourcesLtd.'s Horne 5gold project in Quebec peggedan after-tax net present value, at a 5% discount rate, of C$667 million and an internalrate of return of 16.0%. Production will average 236,000 ounces per annum, or 3.1million ounces of gold over the entire mine life, with an all-in sustaining cashcost of US$427 per ounce net of byproduct credits.

* A locooperator died in a boxhole incident at the Rowland shaft within LonminPlc's Marikanaplatinum mine in South Africa. An investigation into the incident has started.

* from the Secretary of Environment,Water Resources, Infrastructure, Cities and Metropolitan Affairs of the Brazilianstate of Goias the preliminary license for the proposed Posse mine at the project.

* commercial production atthe Thunderbox goldproject in Western Australia, effective April 1. The mine produced 7,026 ouncesof gold at all-in sustaining cost of A$1,107 per ounce in April.

* decided with the joint ventureagreement to earn up toa 90% joint venture interest in the Matalagold project in the Democratic Republic of Congo from Afrimines Resources SPRL subsidiary Regal Sud Kivu SARL.

* the first gold from its gold in South Australiaon May 9, just over 13 months after the start of mining.

* Caravel MineralsLtd. completedthe sale of the Wynberggold resource in Queensland, Australia, to CopperChemLtd. for A$400,000.

* Operations at AureusMining Inc.'s New Liberty gold mine in Liberia was temporarily suspendeddue to problems with the detoxification circuit in the process plant, which togetherwith recent heavy rainfall resulted in a small overflow of effluent into the wetlandsarea within the mining lease.

* 's first-quarternet income slumped 17%year over year to US$40.9 million, while cash flow from operations rose 28% to US$114million. Revenues, meanwhile, jumped 44% to US$187.5 million on a 65% increase insilver equivalent sales to 12.8 million ounces, partially offset by a 13% reductionin the average realized prices recorded at US$14.70 per silver equivalent ouncesold.

* will construction work at its gold mine in Greecefollowing approval of its updated technical study by the Ministry of Energy andEnvironment.

* agreed in adefinitive deal to sellits Oro Silver Resources Ltd.unit to Endeavour Silver Corp.for a deemed value of C$10.5 million. The Oro Silver unit holds the gold-silver mine in Mexicoand a five-year renewable lease on the 500-tonne-per-day state-owned La Plata oreprocessing plant.

* signedan agreement with Maritime ResourcesCorp. to evaluate the economic potential of re-opening the Hammerdowngold mine in Newfoundland and Labrador, which stopped production in 2004 due todepletion of reserves.

* said that uponthe repayment of a loan relating to its SIB gold project in British Columbia, the title to the propertyhas been transferredto the company.

BULK COMMODITIES

* U.S. coal giant Peabody Energy Corp. agreed to sell to Australia-based Pembroke Resources its interest inundeveloped metallurgical reserve tenements in Queensland's Bowen Basin for A$104million in cash plus royalties. Peabody is offering its Olive Downs South, OliveDowns South Extended, Willunga and Olive Downs North tenements, all of which consistof undeveloped proven and probable reserves totaling about 165 million tons.

* IncitecPivot Ltd. posted a net profit after tax of A$31.5 million for the halfyear ended March 31, after recording a A$105.6 million noncash impairment to theasset value of the Gibson Island fertilizer manufacturing plant in Queensland. Thefigure represents a 78.5% dropcompared to the year-ago net profit after tax, which totaled A$146.4 million.

* Following the bankruptcy filing by 's main coal-miningunit and only operating and trading subsidiary, OKD as, rating agency Moody's downgraded the probability of default rating of to D-PD fromC-PD, and affirmed its corporate family rating at C. The rating agency also downgradedthe rating on the company's €300 million senior secured notes due in 2020 from Cato C as it expects low recovery rates for secured bondholders.

* BlueScopeSteel Ltd. said that it expectslost production of about 35,000 tonnes and US$5 million in damages following anexplosion and fire at its North Star BlueScope Steel facility in Ohio on May 7.The facility continues steel production via the second South Electronic Arc Furnace.

* AltechChemicals Ltd. agreed to sellexploration license E70/3923 at Meckering, Western Australia, to Dana Shipping andTrading SA for A$2.0 million. The agreement also settles the dispute between theparties over Altech's termination of the kaolin mining rights deed.

* Adriana ResourcesInc. placedthe Lac Otelnukiron ore project in Quebec under care and maintenance amid low prices of the steelmakingingredient.

* Indiansteel major JSW Steel Ltd.has emerged as one of the seven bidders eyeing Tata Steel Ltd.'s embattled U.K. steel operations, the Financial Times reported.

* has decidedto idle operations and place the CarlsbadWest potash project in New Mexico on care and maintenance in July. The company attributed thedecision, which will affect about 300 employees, to reduced profitability in recentmonths as oversupply and foreign competition in the U.S. potash market has pressuredprices.

* Theboard of Australian iron ore junior FlindersMines Ltd. recommended that shareholders accept an improved takeover offer by Todd Corp. Ltd. unit Tio(NZ) Ltd. of 2.5 Australian cents per share — 92% over the New Zealand-basedbidder's initial cash offer.

* has received the from the governmentof British Columbia to start bulk sample mining activities at its flagship anthracite projectin the Canadian province.

SPECIALTY

* said that theinitial public offer of Graphex Mining Ltd. has been cleared to proceed, with the company having addressed allconcerns raised by the Australian Securities and Investments Commission relatedto an April 4 prospectus. The priority offer to IMX shareholders has closed, whilethe general offer is expected to close on May 11 due to demand exceeding the maximumA$7 million raising.

* its 20.3% stake in diamondproducer Trans Hex Group Ltd.for a total cash consideration of 81.8 million South African rand. According toNortham CEO Paul Dunne, the disposal is in line with the company's strategy to rationalizeits asset portfolio.

* Operationsat Rio Tinto's Richards Bayoperation in South Africa's KwaZulu-Natal province have been suspended until furthernotice after the entrance to the mine was blockedby local residents who demanded permanent jobs and equal business opportunities,Business Day reported.

* agreed tobuy all the outstandingshares of a Canadian exploration company that holds options over claims to potentiallithium deposits across 2,882 acres in Esmeralda County, Nev.

* struck adeal to acquire a 60%stake in an unnamed company based in Laos that owns a full capability rare earthrefinery.

INDUSTRY NEWS

* Argentina mining minister Daniel Meilánsaid that the elimination of export taxes on mining companies, a measure adoptedin February, has already attractedChilean, Australian and French investors. He claimed that there are 30 potentialinvestment projects in the country for the next decade, Los Andes reported.

The Daily Dose is updated as of 7 a.m. London time, and scans newssources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish,Thai and Ukrainian. Some external links may require a subscription.