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In This List

Ex-Peabody execs lob bid for Stanmore coal; Turkish group eyeing British Steel

Mining Exploration Insights December

Mining Exploration Insights: Dip in gold drilling weighs on results

Mining Exploration Insights: Is the exploration sector back on recovery?

State of the Market: Mining Q2-2019


Ex-Peabody execs lob bid for Stanmore coal; Turkish group eyeing British Steel

TOP NEWS

Ex-Peabody executives in up to A$442M indicative bid for Stanmore Coal

Winfield Group Investments Pty. Ltd. lodged a nonbinding, off-market takeover offer to fully acquire Stanmore Coal Ltd. at between A$1.50 and A$1.70 per share, sending the target's shares up almost 16.5% by Australian trading close Aug. 7. Winfield Group counts former Peabody Energy Corp. executives as its owners, including Executive Chairman Rob Hammond. Stanmore said the indicative offer values the company at between A$390 million and A$442 million.

Report: Turkish investment group in talks to acquire insolvent British Steel

An investment group owned by Turkey's military pension fund joined the race to acquire British Steel Corp. Ltd., the Financial Times reported, citing two sources familiar with the matter. Ataer Holding is a unit of state military retirement scheme Oyak, which is the largest shareholder in steelmaker Erdemir.

Report: Italy to restore ArcelorMittal's legal shield over Ilva cleanup

The Italian government will offer ArcelorMittal temporary and limited legal immunity to prevent the closure of its Ilva International SpA plant, Reuters reported, citing a government source. The steelmaking giant had threatened to shut down the plant on Sept. 6 after the government lifted legal protections for managers in case a planned environmental cleanup failed.

DIVERSIFIED

* BHP Group's board approved a US$283 million investment to develop its 68.46%-owned Ruby petroleum project in Trinidad and Tobago.

BASE METALS

* Chile's state copper miner Codelco produced 769,400 tonnes in the first half, representing a 12.1% drop year over year, Reuters reported, citing the country's copper commission, Cochilco.

* Nickel Mines Ltd. is on its way to entering the S&P/ASX 300 thanks to its profitable partnership with Tsingshan Holding Group Co. Ltd., and the Chinese group's battery material plans in Indonesia could see the ASX-listed company realizing further upside in the electric vehicle supply chain, according to an exclusive S&P Global Market Intelligence report.

* Glencore International AG's claim against Ironbark Zinc Ltd. was dismissed following arbitration. The arbitration started after Ironbark denied that it had a contractual obligation to allow Glencore to nominate a new director to its board.

* The Chinese Ministry of Natural Resources accepted the mining license application by Griffin Mining Ltd.'s Chinese subsidiary Hebei HuaAo Mining Industry Co. Ltd. for Zone II at the Caijiaying zinc mine in China's Hebei province. A new license is expected to be issued within 40 days.

* The Public Authority for Mining in Oman advised Savannah Resources PLC that it intends to grant mining licenses over the Mahab 4 and Maqail South high-grade copper deposits, part of the Block 5 exploration license. The licenses will be granted after new licensing fees are set under the new mining law and the fees are paid.

* The Minnesota Department of Natural Resources denied a request made by environmental groups to reconsider the mining and dam safety permits issued for PolyMet Mining Corp.'s NorthMet copper project. Meanwhile, the Minnesota Court of Appeals placed a temporary stay on the company's water quality permit pending a lower court's resolution of a procedural matter between the Minnesota Pollution Control Agency and the U.S. Environmental Protection Agency related to the permit.

* Creditors of Doe Run Peru Srl will meet in September to learn liquidator firm Carrizales Infraestructura & Servicios Públicos SCRL's new plan for liquidation of the company's La Oroya metallurgical complex and the Cobriza copper mining unit in Peru, daily Gestión reported.

* The Lusaka High Court in Zambia threw out Vedanta Resources Ltd.'s appeal to halt the liquidation of its Konkola Copper Mines PLC unit, Bloomberg News reported. A hearing for a winding-up petition was scheduled Aug. 27, with preliminary arguments to be heard Aug. 13, the report said.

* Glencore PLC will try to mitigate the impact of its decision to close the Mutanda copper-cobalt mine in the Democratic Republic of the Congo by retaining the local workforce and funding social responsibility projects near the site, Bloomberg News reported.

* First Quantum Minerals Ltd. terminated its option to acquire the Orquideas copper-molybdenum property in Ecuador from Luminex Resources Corp. due to unsatisfactory drill results. Luminex said it will evaluate whether to retain or relinquish the concession.

PRECIOUS METALS

* AngloGold Ashanti Ltd.'s attributable net profit in the first half surged to US$114 million, from US$33 million a year ago, meeting expectations. Gold income declined to US$1.79 billion from US$1.92 billion, as sales slipped to 1.58 million ounces, from 1.65 Moz. Half-year production dropped to 1.55 Moz, from 1.63 Moz in the prior-year half.

* Royal Gold Inc. swung to a profit of US$93.8 million, or US$1.43 per share, for its full fiscal 2019 from a loss of US$113.1 million, or US$1.73 per share, a year earlier. Revenue for the year declined 7.8% to US$423.1 million, and operating cash flow sank 6.2% to US$72.3 million.

* Pan American Silver Corp.'s attributable net income in the second quarter dropped to US$18.4 million, or 9 U.S. cents per share, from US$36.2 million, or 24 cents apiece, a year ago. Mine operating earnings slipped to US$36.1 million from US$54.9 million, due to increased production costs and a higher depreciation and amortization charge.

* Franco-Nevada Corp.'s net profit increased 19.4% year over year in the second quarter to US$64.0 million, or 34 cents US per share. Revenues for the quarter increased 5.7% year over year to US$170.5 million. Sales in the quarter stood at 107,774 gold-equivalent ounces, compared to 107,333 gold-equivalent ounces a year ago.

* The government of Kyrgyzstan suspended operations at Chinese miner Zhong Ji Mining's Solton-Sary gold mine in Naryn region for one month after 20 people were injured at violent protests over the site's alleged toxic spillage, Reuters reported, citing the Kyrgyz interior ministry.

* IronRidge Resources Ltd. entered a binding memorandum of understanding with GeoDrill Ltd. for a drilling-for-equity program of up to US$4 million, or 40,000 meters of drilling, across all of the company's gold and lithium portfolios in Africa.

* Metminco Ltd. said its takeover offer for Colombia-focused Andes Resources Ltd. is now unconditional. The company received acceptances for 99.5% of the Andes' issued capital. The offer is expected to close Aug. 15.

* Hecla Mining Co. swung to a net loss of US$46.5 million in the second quarter from a net profit of US$12.1 million in the year-ago period, while revenue fell to US$134.2 million from US$147.3 million. The company increased its full-year silver output guidance to 11.7 million ounces from 10 Moz.

* Coeur Mining Inc. swung to a second-quarter net loss of US$36.8 million, or 18 cents per share, from a year-ago profit of US$2.9 million, or 2 cents per share, following a non-cash write-down of US$11.9 million during the period.

* First Majestic Silver Corp. decided to temporarily suspend mining operations at its La Parrilla silver mine in Mexico towards the end of the year to improve the mine's margins and profitability, which has suffered due to low silver and lead prices. The company lowered its annual silver equivalent production guidance to between 24.4 million ounces and 26.0 Moz from 24.7 Moz to 27.5 Moz previously forecast.

* Argonaut Gold Inc. produced 40,213 ounces of gold equivalent in the second quarter, up 5% year on year from 38,441 ounces of gold equivalent. Net profit surged 1,250% year on year to C$5.4 million from C$400,000.

* The Association of Mineworkers and Construction Union said it has been frustrated by the attitude of large platinum producers who are resisting wage increases despite reporting a rise in profits, according to an exclusive S&P Global Market Intelligence report.

* Centerra Gold Inc. and the government of Kyrgyzstan completed all conditions of a settlement agreement over their dispute on the Kumtor gold project. The two parties will now move to cancel the remaining lawsuits affecting the project.

* Moneta Porcupine Mines Inc. signed an exploration and cooperation agreement with the Wahgoshig First Nation over the Golden Highway gold project in Ontario.

* Deeprock Minerals Inc. secured an option to acquire the Golden Gate gold project in eastern Canada for C$170,000 cash, 200,000 shares and C$220,000 in development work over four years.

BULK COMMODITIES

* thyssenkrupp AG's attributable net loss in the fiscal third quarter narrowed 29% year over year to €94 million. Net sales in the quarter remained stable year over year at €$10.78 billion. The company lowered its full fiscal year forecast for adjusted EBIT to about €800 million, from the previously forecast €1.1 billion to 1.2 billion, due to weaker than expected economic growth and higher raw material costs for iron ore.

* Evraz PLC's net profit in the first half plummeted 70% year over year to US$344 million. Revenue in the six months slipped 3.2% to US$6.14 billion, and profit from operations dropped 47.3% to US$913 million, on a yearly basis. The results were impacted by higher costs, foreign exchange losses and impairment of non-current financial assets.

* Tata Steel Ltd.'s net profit for its fiscal first quarter plunged to 7.02 billion Indian rupees, or 5.83 rupees per share, from 19.34 billion rupees, or 16.66 rupees per share, booked a year ago. Tata Steel executed a memorandum of understanding to divest a 70% stake in Tata Steel (Thailand) PCL to Synergy Metals and Mining Fund and form a 70/30 partnership for the business. The deal follows the termination of its earlier agreement with HBIS Group Co. Ltd.

* Brazilian steelmaker Gerdau SA reported a 46.5% drop in second-quarter net profit to 372.8 million Brazilian reais as sales volumes were impacted by asset disposals in 2018. The divestments dragged down crude steel production in the June quarter by 14.1% year on year to 3.43 million tonnes. Shipments fell 22.5% to 2.97 Mt, with net sales falling 15.6% to 10.15 billion reais.

* African Export-Import Bank granted credit approval to provide Danakali Ltd.'s preferred power contractor, Inglett & Stubbs International, with a US$42 million guarantee, which will facilitate senior debt funding for the power plant at the Colluli sulfate of potash project in Eritrea.

* Voestalpine AG blamed a slumping auto industry, rising iron ore prices and weaker demand for its steel products for a drop in fiscal first-quarter profit to €90 million from €226 million in the prior year. Revenue fell 3.8% year over year to €3.3 billion, EBIT declined 51.6% to €157 million, and EBITDA sank 27.7% to €371 million.

* Gerald Holdings LLC subsidiary SL Mining will hold off a plan to raise iron ore production to 6 million tonnes per year following an export ban imposed by the government of Sierra Leone in July, Fastmarkets MB reported.

* Peabody Energy unveiled a second-quarter cash dividend of 14.5 cents per share, an increase from the prior quarter's dividend of 14 cents per share. Separately, miners at Peabody Energy's Kayenta coal mine in Arizona are preparing for staff reductions as the operation's sole customer winds down its units.

* Minergy Ltd. produced first salable coal at its Masama mine in Botswana, which has been exported to South Africa and Namibia. CEO Morné du Plessis said the company plans to ramp up production to 100,000 tonnes per month by 2020.

* An electrician working at the Kanawha Eagle Mining LLC's South Hollow Preparation Plant in West Virginia died from injuries sustained after an electric shock, according to a release from the West Virginia Office of Miners' Health, Safety and Training.

* The Commonwealth Bank of Australia withdrew its support of thermal coal mining and consumption, although its coal exposure has been minimal, The Australian Financial Review wrote.

SPECIALTY

* Altura Mining Ltd. agreed to earn a 51% interest in Sayona Mining Ltd.'s 1,806-square-kilometer lithium portfolio in Western Australia's Pilgangoora mining district by spending A$1.5 million on exploration over three years.

* Albemarle Corp. reported net sales rose to US$853.9 million in the 2018 second quarter to US$885.1 million in the recent quarter, an increase of 4%. The rise was attributed to favorable pricing in all of the company's reportable segments and increased volume in sales from its lithium and bromine segments.

* Lucapa Diamond Co. Ltd. raked in A$8.8 million from the latest sale of diamonds from its Lulo alluvial mine in Angola and the Mothae kimberlite mine in Lesotho.

INDUSTRY NEWS

* The Colombian Constitutional Court overturned a previous ruling issued by the country's State Council allowing municipal councils to ban oil and mining projects. The court said that local and regional authorities cannot veto extractive activities unilaterally, daily Portafolio reported.

* Sierra Leone's Minister of Trade and Industry Edward Hinga Sandy said the government's recent crackdown on miners was about improving transparency, as the previous administration allowed mining permits to be resold to third parties without intervening, Bloomberg News reported.

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