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Key investors exit X2 Resources; Zijin's H1 earnings slump; Philippines suspends another nickel mine


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Key investors exit X2 Resources; Zijin's H1 earnings slump; Philippines suspends another nickel mine


MickDavis' X2 ResourcesLtd. is restructuring after two key investors of the US$5.6 billion privateequity fund, The Australian reported,citing "people familiar with the matter." The sources told thepublication that commodities trading house Noble Group Ltd. has reneged on its US$500 millioncommitment, and U.S. private equity firm TPG will not renew its US$500 millioncommitment when it expires in the first quarter of 2017.

'snet profit attributable to owners of the parent year over year to 530million Chinese yuan in the first six months of 2016, according to preliminaryfigures. The steep fall in the Chinese group's profit was attributed to theimpact of hedging as certain products did not benefit from rising commodityprices.

3rdnickel mine suspended under new Philippine government

ThePhilippine government issueda suspension order on unlisted firm Berong Nickel Corp.'s in Palawan becauseof a spill that affected corals, Reuters reported, citing Department ofEnvironment and Natural Resources Secretary Gina Lopez. This is the thirdnickel mine to be suspended in less than two weeks.


*UBS analysts suggest that RioTinto's new CEO Jean-Sebastien Jacques is expectedto speed up the mining giant's asset divestment program in the next threeyears, The Australian reported. Theinvestment bank anticipates the company will make noncore asset sales totalingabout US$4 billion in the next three years.


*Rising electricity costs and outages in South Australia are becoming asignificant concern for the sustainability of 's copper operationsdespite the company having reduced energy consumption with minimal impact toproduction, The Australian FinancialReview reported.

*Hong Kong investor APAC ResourcesLtd. divested 21.5 million shares in , The West Australian reported.In June, APAC announced plans to sell its entire 99.4 million shares in theASX-listed company, but the larger disposal needs shareholder approval.

*Codelco plans tobuild the second-largest seawater desalination plant in Chile after BHPBilliton's Escondida in the Antofagasta region. The US$1.5 billionproject is part of the Radomiro Tomic expansion project, RT Sulfuros, andincludes a 160-kilometer pipeline and pumping stations that will draw waterfrom the Pacific Ocean at 1,600 liters per second to an altitude of 3,000meters, daily El Mercurio reported.


*Metals ExplorationPlc isnegotiating a US$5 million capital raise with its majorshareholders to fund the company's immediate working capital needs. The companyhas been struggling after the recent suspension of milling activities at its Runrunogold project in the Philippines delayed expected income.

*ACH Minerals Pty Ltdexercised its option toacquire the Great Southern gold project in Western Australia fromSilver Lake Resources Ltd.

* GreatPanther Silver Ltd. said the processing plant at its silver mine inMexico has resumedfull operation.


*Kumba Iron Ore Ltd.expects its basicearnings to range between 2.84 billion South African rand and 3.06 billion randfor the six months ended June 30, compared to 2.51 billion rand in the sameperiod of 2015.

*Fortescue Metals GroupLtd. is likely to be the onlyone of the big three iron ore players to top its production target whenJune quarterly results are released this week, The Australian Financial Review reported. The company has alreadysurpassed its 165million-tonne shipping guidance for the fiscal year ended June 30, withshipments totaling 169.4 million tonnes.

*Sanjeev Gupta's Liberty House is settingits sights on struggling Ontario steel producers and U.S. SteelCanada, after his bid to take over Tata Steel Ltd.'s U.K. business appeared thwarted thismonth, The Financial Times reported,citing a source familiar with the matter.

*Coal of Africa Ltd.'sextended takeoveroffer for Universal Coal Plc has been called off due to unfulfilled conditions, including thefailure to finalize a coal sales contract with South African power utility Eskom.The sales contract would have seen the company start mining at the project inSouth Africa, and generate cash flow to provide the combined entity sufficientworking capital for at least 12 months.

*Coal production in China dropped9.7% on a yearly basis to 1.63 billion tonnes in the first half of 2016,Bloomberg News wrote, citing data from China's National Bureau of Statistics.

*Shenhua Group Corp.Ltd., Baosteel GroupCorp., Wuhan Iron& Steel (Group) Corp. and China Minmetals Corp. have been selected under a list ofseven state-owned enterprises to lead a reform to establish "state-owned capitalinvestment companies," ChinaSecurities Journal reported, citing the State-owned Assets Supervision andAdministration Commission.

*Indian consortium International Coal Ventures Ltd. is looking to build athermal power plant at its Benga coal mine in Mozambique, The Economic Times of India reported,citing P.K. Singh, chairman of Steel Authority of India Ltd.

* Vedomosti reportedthat OAO TMK's management initiated a meeting of its board of directors todetermine the offering price of additional shares. The steel pipe manufacturerproposed to set the price at 71 Russian rubles per share, which will value thecompany at 70 billion rubles. The company plans to place 4.25% of its increasedcapital for 3.12 billion rubles.

* Kommersant reported that construction of thePrimorskaya, or Maritime, coal power plant in Russia's Kaliningrad region willstart by year end and will finish in mid-2019. The plant will process coal fromthe Kuznetsk Basin, which will be transported to Kaliningrad by rail; however,a backup option with the sea port terminal may be needed.


*CNNC InternationalLtd. expects to narrow its loss in the first half of the year comparedto the loss posted in the corresponding 2015 period. In the first half of 2015,CNNC shared the loss of its associate Société des Mines d'Azelik SA, and had made fullprovision of about HK$119.9 million for its investment equity of and loanreceivables from the latter. As the carrying amountof interest in Somina was nil by 2015-end, the group is no longer required toshare any further losses this year if any, until it becomes a positive netasset position.

*Sierra Rutile Ltd.'srutile production in the second quarter increased 16% year over year to 34,629 tonnes, whilehalf-year production increased 15% year over year to 61,408 tonnes.

* Incoming weeks, Australia's Environmental Protection Authority is set torecommend approval for ToroEnergy Ltd.'s Wiluna uranium mine and 's uranium project inWestern Australia, The West Australianreported.


*According to the Prospectors and Developers Association of Canada, the 10listed Canadian miners operating in the Philippines are notconcerned about the potential impact the government of President RodrigoDuterte might have on their operations, TheVancouver Sun wrote. Duterte previously said he prefers mining assets to beowned by locals rather than foreign entities, and that miners need to"shape up."

The Daily Dose is updated asof 7 a.m. Hong Kong time, and scans news sources published in Chinese, English,Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Someexternal links may require a subscription.