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Trump plans higher tariffs on steel, aluminum

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Trump plans higher tariffs on steel, aluminum

TOP NEWS

Trump plans higher tariffs on steel, aluminum

The U.S. will impose stiff tariffs on steel and aluminum, a prospect that sent stocks lower and raised the specter of a trade war with other major economies. Speaking to executives from major U.S. aluminum and steel processors, President Donald Trump said the U.S. will tax imports of steel at 25% and aluminum imports at 10%, according to a report from the White House press pool.

Implats shuts 4 shafts, cuts 1,400 jobs at Rustenburg

Impala Platinum Holdings Ltd., or Implats, suspended four shafts at Rustenburg operations in South Africa from January, and the labor restructuring announced in September 2017 led to 1,400 job cuts at the operations as of Dec. 31, 2017, translating to annual savings of 350 million South African rand for the group. Implats swung to a gross profit of 733 million rand in the fiscal first half from a gross loss of 139 million rand a year ago, and its net loss narrowed to 164 million rand from 328 million rand a year ago. The miner attributed this loss to its Zimplats Holdings Ltd. unit's higher additional profits tax provision.

Lundin shopping for up to US$3B base metals asset

Lundin Mining Corp. intends to invest up to US$3 billion to purchase a long-life zinc, nickel or copper project in the wake of Newcrest Mining Ltd.'s acquisition of a 27% stake in the company, Bloomberg News reported, citing Chairman Lukas Lundin. The chairman plans to search for a new gold project afterward.

DIVERSIFIED

* Eurasian Resources Group Sàrl is investing US$5 billion in an expansion project to more than double its output by 2021, Reuters reported, citing senior company executives. The group is registered in Luxembourg and has ferrochrome, aluminum and iron ore assets in Kazakhstan, copper and cobalt assets in Africa, and iron ore mines in Brazil.

* S&P Global Ratings revised its outlook on Anglo American Plc from stable to positive, while affirming its long- and short-term issuer credit ratings and its long-term South Africa national scale rating at BBB-/A-3 and zaAAA/zaA-1+, respectively, as a result of the mining giant's robust results for 2017 and rising iron ore, copper and hard coking coal prices.

* Anglo American Platinum Ltd. CEO Chris Griffith said that in order to encourage mining investment, Zimbabwe should offer foreign miners a consistent legal framework, a right to keep a controlling stake in operations and a greater share of profits, Reuters reported. Griffith said the company is considering investing in debottlenecking.

BASE METALS

* Cobalt 27 Capital Corp. will undertake a strategic placement to raise up to C$130 million to fund the acquisition of cobalt-related streams and royalties and general corporate purposes.

* Major Minfocus Exploration Corp. shareholder GreenBank Capital Inc. requisitioned a shareholder meeting to restructure the company's board. The shareholder claims the existing directors engaged in actions that do not serve the interests of the company's shareholders, including issuing a significant number of stock options to themselves and not complying with basic corporate governance requirements.

* Aurubis AG, one of Europe's largest copper smelters, is still on the hunt for more assets after upping its stake in German copper wire and rod maker Deutsche Giessdraht in January to 100%, Reuters reported, citing Aurubis CEO Juergen Schachler.

* Taruga Gold Ltd. agreed to earn a 60% interest in the Mwilu and Kamilombe cobalt-copper projects in the Democratic Republic of the Congo.

* The Democratic Republic of the Congo will launch new monitoring and tracing mechanisms this month in a bid to combat child labor in cobalt and copper production, Reuters reported, citing Alexis Mikandji, the director general of the Ministry of Mines' certification agency, CEEC.

PRECIOUS METALS

* Cartier Resources Inc. acquired a 50% interest in SOQUEM Inc.'s Fenton gold property in Quebec after completing its work commitments. SOQUEM and Cartier will now enter a joint venture to continue exploration on the property.

* With Australia's senior gold stocks widely held to be fully priced, analysts said companies are faced with the decision of whether to engage in more M&A activity or shower investors with more dividends.

BULK COMMODITIES

* In response to U.S. trade tariffs, the European Union would propose countermeasures within days, calling the move a "blatant intervention" to protect U.S. industry, Reuters reported. European Commission President Jean-Claude Juncker said the EU will "react firmly and commensurately to defend our interests."

* Canadian steel and aluminum producers are hoping that the country will be able to secure an exemption from U.S. import tariffs, but warned that the move could spark a trade war, The Australian Financial Review reported. Meanwhile, Canadian Foreign Affairs Minister Chrystia Freeland said the country will take "responsive measures" to defend its trade interests if any tariffs are applied.

* Century Aluminum Co. CEO Michael Bless said the steel and aluminum tariffs will enable the company to move ahead with a US$100 million investment in a Kentucky plant that is currently operating at 40% of its capacity and rehire just under 300 workers, the Financial Times reported.

* Cleveland-Cliffs Inc. President and CEO Lourenco Goncalves applauded President Donald Trump's decision to impose tariffs on the steel imports, saying that the move will "support our ability to continue to produce iron ore pellets and steel in our country enhancing a vibrant manufacturing economy and our national security."

* Australian Trade Minister Steven Ciobo said the country remains hopeful that it will be exempted from U.S. tariffs on steel and aluminum imports, The Australian reported. The move threatens more than A$170 million of Australian steel and aluminum exports. Meanwhile, Brazil also said it will seek exemption from the U.S. measures and expressed deep concern regarding the move, Metal Bulletin reported.

* Fortescue Metals Group Ltd. priced an offering of US$500 million of 5.125% senior unsecured notes due 2023, with the offering expected to be settled by March 15.

* International Monetary Fund Managing Director Christine Lagarde urged China to cut excess capacity in its steel and coal industries "faster and more efficiently," Reuters reported.

* Brazilian environmental agency Ibama fined a Norsk Hydro ASA unit 20 million Brazilian reais and ordered the company to stop operations at the DRS2 bauxite residue disposal within its Alunorte alumina refinery in the country, Reuters reported, citing Ibama. The company confirmed the order to halt using DRS2, but did not mention the fine.

* Anglo American completed the sale of its Eskom-tied thermal coal operations in South Africa to Seriti Resources Pty. Ltd. for 2.3 billion South African rand.

* Australian businessman Clive Palmer plans to proceed with the A$6.5 billion Waratah coal mine in Queensland later in the year regardless of whether Adani Enterprises Ltd. secures funding for the Carmichael coal mine, The Australian Financial Review reported. Palmer added that the recent hike in coal prices has made the project more economically viable.

* Yancoal Australia Ltd. swung to a net profit of A$229 million in full year 2017, from a loss of A$227 million in 2016, as a result of its acquisition of Coal & Allied Industries Ltd. from Rio Tinto. The Yanzhou Coal Mining Co. Ltd. unit's revenue more than doubled on a yearly basis to A$2.51 billion.

* Yancoal CEO Reinhold Schmidt said the company's US$4.5 billion net debt will not deter it from investing in the right opportunity, as it is generating significant cashflow since it acquired Rio Tinto's Hunter Valley coal assets, The Australian Financial Review reported.

* Evraz Plc recorded a profit of US$759 million for full year 2017, swinging from a net loss of US$188 million in 2016. Consolidated revenue rose 40.4% to US$10.83 billion. The company also said subsidiary Fegilton Ltd. agreed to divest its entire share in Evraz DMZ's holding company Drampisco Ltd. to DCH Group unit Senalior Investments Ltd., for US$106 million.

* North China's Shanxi province recently granted a mining license for Jineng Group's Dongda coal mine, which marks the first new coal project in the province since 2005.

SPECIALTY

* Sociedad Quimica y Minera de Chile SA's net income in the fourth quarter of 2017 jumped to US$110.5 million, compared to US$80.9 million a year ago. For full year 2017, SQM's net profit surged to US$427.7 million from US$278.3 million in 2016, as strong lithium demand led to higher prices.

* SQM expects global demand for lithium will continue to grow at rate of roughly 80% per annum in the next five years, Mining.com reported.

* Vimy Resources Ltd. agreed to acquire the Alligator River uranium project in Northern Territory, Australia, from Cameco Australia Pty. Ltd. for total cash payments of A$6.5 million.

* BlueRock Diamonds Plc expects to treat over 275,000 tonnes of diamonds this year, higher than 153,147 tonnes treated in 2017. Total production is pegged between 9,500 carats and 12,500 carats for the full year.

* Wolf Minerals Ltd. increased an existing £55 million fully secured bridge loan facility for a third time, to £65 million, maturing in 2020, to support short-term working capital and complete work toward commercial production at the Drakelands tungsten mine in the U.K.

* Marenica Energy Ltd. said Paladin Energy Ltd. expects that using the former's patented U-pgrade technology to process uranium could increase uranium production from the Langer Heinrich mine in Namibia by about 40%.

* Minister of State for Provincial Affairs for Zimbabwe's Masvingo province Josaya Hungwe said rich diamond deposits have been found in the province's Chivi district, Xinhua News reported.

INDUSTRY NEWS

* Effective June 1, the London Metal Exchange plans to introduce a fee for off-exchange, over-the-counter contracts that reference its prices to boost revenue after it slashed other fees in 2017, Reuters reported.

* Ivory Coast President Alassane Ouattara appointed Trade Minister Souleymane Diarrassouba as interim industry and mines minister, replacing Jean-Claude Brou, Reuters wrote.

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