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US to impose tariffs on European steel, aluminum imports

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Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

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Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

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Essential Metals Mining Insights November 2021

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[Infographic]: 2021 World Exploration Trends


US to impose tariffs on European steel, aluminum imports

TOP NEWS

Report: US to impose tariffs on European steel, aluminum imports

U.S. President Donald Trump's administration will apply import tariffs on European steel and aluminum after failing to reach an agreement with EU officials that would have avoided the levies, according to The Wall Street Journal, which cited sources familiar with the matter. Washington could make the announcement as early as May 31 and allow the extended temporary tariff exemption granted to the bloc to expire on June 1. The Trump administration's plans could still change if the U.S. and EU strike a last-minute deal, one of the sources added.

Seabed mining may 'revolutionize' the sector

A new regulatory framework is due to be in place by 2020 for seabed mining, which Vale SA unit Vale Australia Pty. Ltd.'s former general counsel Robert Milbourne says has the potential to "revolutionize" the sector across various commodities. Barrick Gold Corp. chief innovation officer Michelle Ash said that seabed mining presents a number of challenges, but "they can almost certainly be overcome in the next 30 years or so."

Nemaska completes C$1.1B financing package for Whabouchi development

Nemaska Lithium Inc. completed a C$1.1 billion financing package for the construction and commissioning of its Whabouchi lithium mine in Quebec. Construction at the mine is expected to be completed within 15 months, while the construction of the Shawinigan plant, also in Quebec, is expected to be completed in about two years.

DIVERSIFIED

* PNX Metals Ltd. signed a binding term sheet to acquire a 90% interest in three exploration licenses, forming the polymetallic Kilfoyle project in Australia's Northern Territory.

BASE METALS

* Cia. de Minas Buenaventura SAA CEO Victor Gobitz said Southern Copper Corp. is evaluating the proposal that it put forward for the joint development of the latter's US$2 billion Michiquillay copper project in Peru, Reuters reported.

* Minsur SA expects to secure between US$800 million and US$900 million in financing from a consortium of lenders in August, which will enable the company to begin the US$1.6 billion construction of its Mina Justa copper project in Peru by year-end, Reuters reported.

* Should the Ambatovy nickel-cobalt joint venture require more cash than expected with payments on US$1.6 billion in debt starting in 2019, Sherritt International Corp.'s participation is not guaranteed. "If there's a need for cash we'll look at that on its merits," said Andrew Snowden, Sherritt's senior vice president and CFO. "But we have no appetite to put additional cash into Ambatovy at this point."

* Volcan Compañía Minera SAA suspended mining at the Animón and Islay mines, part of its Chungar zinc-lead-silver operation in Peru, due to "safety concerns," Metal Bulletin reported, citing the company.

* Nyrstar NV refinanced a three-year zinc metal prepay, which was originally inked in December 2015 and had a remaining balance of US$61.7 million, with a new zinc metal prepay for US$125 million. The company will gain a net cash benefit of about US$63 million from the new agreement.

* Xiana Mining Inc. unit Xiana Peru Mining SAC entered a mining assignment agreement with Minera Santa Ines y Morococha SA for the Santa Ines mine in Peru.

* Power Americas Minerals Corp. agreed to buy the past producing Thomas Edison cobalt mine located within the company's Kittson property in Ontario. The terms were not disclosed, with the deal expected to close in 30 days. Howard Milne, vice president of business development for the company, told S&P Global Market Intelligence that the company paid a "very nominal" amount of cash for the property. He added that Power Americas is in negotiations for additional properties in the area, so disclosing the deal value for the Thomas Edison mine could impact the ongoing negotiations.

* Emmerson Resources Ltd. has agreed to sell its mothballed Warrego mill lease in Northern Territory, Australia, to Territory Resources Ltd. in exchange for preference over other third parties when the latter builds a processing facility at the site. Territory Resources will construct a proposed 300,000-tonne-per-annum facility on the Warrego lease, and is targeting first gold production late this year.

* Heron Resources Ltd. has completed over 50% of the construction at the Woodlawn zinc project in New South Wales, Australia, moving from earthworks and foundations to structures and equipment.

* A maiden open pit proved and probable ore reserve estimate for Cradle Arc PLC's Mowana copper project in Botswana outlined 370,800 tonnes of copper contained in 31.8 million tonnes grading 1.17% copper. The mine's life was extended by three years, to 14 years.

* New Century Resources Ltd. is on track to commission the Century zinc mine in July, with first production slated to take place in August.

* Conico Ltd. awarded the contracts for the completion of a prefeasibility study for the Mount Thirsty cobalt-nickel project in Western Australia, a joint venture with Barra Resources Ltd.

PRECIOUS METALS

* Bear Creek Mining Corp. is likely to launch a public offering for its Peruvian unit on the Lima stock exchange to help finance its US$550 million Corani silver project in Peru, Reuters reported, citing CFO Paul Tweddle. The Peru-focused Canadian miner could also consider a stake sale in Corani to help fund the project. Meanwhile, Bear Creek's shares have been listed for trading in Peru's Bolsa de Valores de Lima exchange, under the ticker BCM.

* Empire Resources Ltd.'s board believes that the call by dissident shareholders, representing approximately 5% of the company, to oust its entire board is an "opportunistic" move by Brimstone Resources Ltd. to push its interests. Brimstone, which is Empire's joint venture partner for the Penny's Find gold mine, owes approximately A$1.1 million in unfunded contributions and interest for the development costs of the mine.

* Gold Fields Ltd. is putting on hold acquisition plans for a year to focus on its existing operations and nearby prospects, Reuters reported, citing CEO Nick Holland. Holland said the company's finances might be "a little bit negative" this year before likely recovering in 2019. "The strategy of the company now is more focused on organic brownfields, near-mine growth, in and around where we are," the executive said during an interview at a symposium in Peru.

* Ariana Resources PLC recorded a 270% increase in contained gold at the Kepez prospect, part of its 50%-owned Red Rabbit joint venture in Turkey, to 23,900 ounces of gold and 164,300 ounces of silver contained in 371,000 tonnes grading 2 g/t of gold and 14 g/t of silver in the combined indicated and inferred categories.

* An initial resource estimate for Viscount Mining Corp.'s Silver Cliff property in Colorado outlined an indicated resource of 2.1 million tonnes grading 84 g/t of silver for 5.6 million ounces of silver, and an inferred resource of 3.2 million tonnes grading 70 g/t of silver for 7.1 million ounces of silver.

* Gold mining majors such as Newmont Mining Corp., Gold Fields and AngloGold Ashanti Ltd. welcomed Ghana's new tests to certify the value of their exports, Reuters reported, citing the Chamber of Mines. The move comes in addition to customs checks and internal company tests in a bid to tighten control of the sector and tax it appropriately.

* Artemis Resources Ltd. completed the sale of 4 million Novo Resources Corp. shares to Kirkland Lake Gold Ltd., priced at C$5 apiece, for a total of C$20 million.

* AuStar Gold Ltd. poured first gold at the Morning Star gold mine in Victoria, Australia, since 2012. The processing plant also successfully proved that it can process hard diorite material from the mine, which had been a concern raised by the previous operators of the mine.

* Pershing Gold Corp. said that a feasibility study on the past-producing Relief Canyon gold-silver property in Nevada defined a net present value of US$133 million, using a 5% discount rate, with an 87% internal rate of return and US$176 million in net cash flow, all after taxes.

BULK COMMODITIES

* Kobe Steel Ltd.'s offices are expected to be searched by Japanese police and prosecutors in the current week, Bloomberg News reported, citing Japanese daily Yomiuri Shimbun. The steel manufacturer's offices in Kobe and Tokyo and its plants will be investigated by the Tokyo Metropolitan Police and the Tokyo District Public Prosecutors Office for allegedly violating the unfair competition prevention law.

* U.S. Commerce Secretary Wilbur Ross said the U.S. and the EU could still talk trade and open markets even if the U.S. government proceeds with imposing import tariffs on EU steel and aluminum, Reuters wrote.

* Metinvest BV's revenue spiked 63% to US$3.02 billion in the first quarter, attributed to higher selling prices and demand for pig iron, slabs, flat products, coke and pellets. Adjusted EBITDA for the period, meanwhile, rose 61% to US$649 million.

* Antitrust authority Fiscalía Nacional Económica approved Gerdau SA's sale of three long-steel industrial units, with a combined annual production capacity of 520,000 tonnes, and a distribution network to Chilean family-owned groups Matco and Ingeniería e Inversiones, Metal Bulletin reported. The transaction is set to conclude in July this year.

* Pig iron production in Brazil has completely halted due to a truck drivers' strike over recent fuel price increases, Metal Bulletin reported, citing sources.

* S&P Global Ratings lowered Westmoreland Coal Co.'s credit rating to SD from CCC-, citing the company's US$110 million bridge loan financing that subordinates the first lien lenders' debt to the new loan.

* Mechel PAO is in negotiations to acquire the JSC Izhevsk Metallurgy and Machine building plant, Vedomosti reported.

* Egyptian Steel Group kicked off commercial production at its fourth steel plant in Egypt's Al Ain Al Sokhna, Metal Bulletin reported. The plant has the capacity to produce 830,000 tonnes of billet and 530,000 tonnes of rebar per annum.

SPECIALTY

* Kimberley Diamonds Ltd.'s Lerala diamond mine in Botswana was sold for US$8.1 million in an online auction, Bloomberg News reported. "I can confirm the winning bid was $8.12 million but beyond that I cannot comment on the identity of the bidder nor any other information, until the liquidator gives me the go ahead," said John Taylor, an associate director at auctioneer GoIndustry DoveBid South Africa.

* New Energy Metals Corp. signed an option agreement to purchase the Atacama lithium project from an undisclosed seller. The project covers approximately 66,000 hectares in northern Chile's Atacama salar district, which hosts much of the world's known lithium reserves and produces about one-third of global lithium output.

* POZ Minerals Ltd. secured an option to sell its Musgraves vanadium project in Western Australia in a bid to focus on the Blina diamond project. The buyer, private Australian company 979 920 01 Pty. Ltd., has a three-month exclusive right to purchase the project for a total of A$120,000 cash and a 1% net smelter royalty on any mineral production, for the period starting May 14, 2017.

INDUSTRY NEWS

* Peru's Energy and Mines Minister Francisco Ismodes said that 12 mining projects in the country, worth US$14.02 billion, will enter the construction phase this year, news agency Andina reported.

* South African Mineral Resources Minister Gwede Mantashe will conclude nationwide consultations on the Mining Charter on May 31, Mining Weekly reported. The charter will be finalized by June.

* The Western Australian government injected a further A$5.2 million into its Exploration Incentive Scheme and announced the round 17 winners of government co-funded drill programs, Mining Weekly wrote.

* H&M Metal Warehousing agreed to pay US$100,000 to settle disciplinary proceedings with the London Metal Exchange in connection with alleged breaches of its warehousing policy, Reuters reported. The warehouse operator did not admit any breaches as part of the settlement.

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This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.