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Northern Dynasty shares collapse on termination of Pebble copper deal

TOP NEWS

Northern Dynasty shares collapse on termination of Pebble copper deal

Northern Dynasty Minerals Ltd. shares closed more than 33% down on May 25 after the company and First Quantum Minerals Ltd. decided to terminate a framework agreement for the latter to earn a 50% interest in the Pebble copper project in Alaska. Both parties were unable to reach an agreement on the US$1.5 billion option and partnership transaction.

Oleg Deripaska quits Rusal board amid pressure over US sanctions

Oleg Deripaska stepped down as nonexecutive director of United Co. Rusal PLC, effective immediately, as part of the company's efforts to protect its interests in light of U.S.-imposed sanctions on the Russian aluminum producer.

Brunei selling 37% stake in Jordan Phosphate to 2 Indian firms for US$130M

Brunei agreed to sell a 37% stake in Jordan Phosphate Mines Co. Plc to Indian fertilizer producers Indian Potash Ltd. and Kisan International Trading FZE, in a deal valued at around US$130 million, Reuters reported. According to an industry source, Potash Corp. of Saskatchewan and Mitsubishi Corp. were also in the running for the stake.

DIVERSIFIED

* Vedanta Resources PLC Chairman Anil Agarwal plans to turn his company into a resources giant through local investments in a bid to limit India's reliance on imports of minerals, Bloomberg News reported. Vedanta, which through its local units controls oil fields, zinc mines, iron ore assets and aluminum and copper operations in India, plans to invest about US$8 billion in the next 2.5 years to further expand.

BASE METALS

* Chile's state-owned copper producer Codelco booked a pretax profit of US$537 million in the first quarter, up slightly from a US$534 million profit reported in the year-ago period. The company's copper production from its wholly owned mines increased 7% to 416,000 tonnes. The figure climbs to 446,000 tonnes when production from El Abra and Anglo American Sur SA is included.

* Chilean President Sebastian Pinera named Juan Benavides as Codelco's chairman, Reuters reported. Benavides, who is serving as chairman at Chilean private pension fund manager AFP Habitat, will replace outgoing Chairman Oscar Landerretche.

* Vedanta plans to restart the Tuticorin copper smelter in South India's Tamil Nadu state and still intends to move forward with its planned expansion to double the plant's capacity despite protests demanding its closure that killed 13 people, Reuters reported. "We're confident that we will be able to overcome these issues. It will certainly require a huge effort but I am sure we can hope to restart as quickly as possible," said P. Ramnath, CEO of Vedanta's India copper business.

* Independence Group NL agreed to sell its Jaguar zinc operation in Western Australia to CopperChem Ltd. for a total of A$73.2 million.

* Alphamin Resources Corp. aims to raise C$19.2 million to help fund the development of the Bisie tin project in the Democratic Republic of the Congo with the backing of Tremont Master Holdings, a subsidiary of private equity firm Denham Capital, and a controlling shareholder.

* Indonesian State-Owned Enterprises Minister Rini Soemarno said the government hopes to conclude talks on acquiring Rio Tinto's interest in the Grasberg copper-gold mine in June, The Jakarta Post wrote.

* Myanmar Metals Ltd. shares rose nearly 7% in ASX trading May 25, having struck two binding agreements to ensure its A$18.5 million share of the Bawdwin polymetallic project option exercise is fully funded in what CEO John Lamb called a "new model" of foreign participation in Myanmar. Two local Myanmar entities will each hold 24.5% of the project, with Myanmar Metals taking majority ownership to operate with 51%.

* Cruz Cobalt Corp. plans to start operations shortly at its War Eagle and Purcell cobalt prospects in British Columbia.

* Chinese battery maker Contemporary Amperex Technology Co. Ltd. and battery recycler GEM Co. Ltd. secured approvals to join the Responsible Cobalt Initiative, an industry group formed to tackle risks in the cobalt supply chain, Reuters reported. The 31-member RCI board includes Chinese cobalt producer Zhejiang Huayou Cobalt Co., South Korean battery manufacturer Samsung SDI and automakers Volvo and BMW.

PRECIOUS METALS

* Centamin Plc now expects its Sukari joint venture in Egypt to produce between 505,000 and 515,000 ounces of gold in 2018, decreasing from guidance of 580,000 ounces reiterated in April. The company attributed the decreased outlook to low grades persisting in a transitional zone of the open pit and lower development grades from underground.

* Northern Star Resources Ltd. CEO Stuart Tonkin said the company will not be rushed into spending its capital of about A$439.1 million as it focuses on organic growth, The Australian reported. "We are always looking at opportunities but the returns we are getting from organic growth are superior," Tonkin said.

* Resolute Mining Ltd. agreed to subscribe for 32.4 million shares in Orca Gold Inc., representing a 15% interest, in a transaction valued at around A$22.5 million.

* Workers at Pan American Silver Corp.'s Dolores silver-gold mine in Mexico said they were afraid to leave the mine encampment due to threats by armed groups, The Associated Press reported. One of the workers told the news agency that members of an organized crime group set up checkpoints at access points to the mine that has about 400 employees inside. The state government in Chihuahua said it could guarantee security at the mine, while the prosecutor's office said it did not receive any complaint from the miner.

* A new preliminary economic assessment on McEwen Mining Inc.'s proposed Fenix gold-silver development defined an after-tax net present value of US$60 million with a 25% internal rate of return. After-tax cash flow is expected to average US$12 million per year of operation. The study indicates that Fenix could extend the life of its El Gallo Complex in Mexico by 10 years.

* McEwen Mining plans to issue up to US$50 million in senior secured notes to help fund the construction of its Gold Bar mine in Nevada. The proposed three-year notes will bear interest at a rate of 9.75% per annum.

* Alio Gold Inc. completed its previously agreed acquisition of Rye Patch Gold Corp. under a deal valued at C$128 million.

* Manas Resources Ltd. is pulling out of a deal to acquire the Victoria gold project in Tanzania, citing a lack of progress in the transfer of the licenses and the ongoing challenges facing miners in the country as the main reasons for its decision.

* Central Iron Ore Ltd. agreed to sell the South Darlot gold project in Western Australia to Kingwest Resources Ltd., an ASX hopeful, for A$580,000.

* Orosur Mining Inc. decided to terminate an option to acquire a 65% stake in Codelco's Anillo gold project in Chile following the lack of positive exploration results in the first phase.

BULK COMMODITIES

* Russian fertilizer producer PJSC PhosAgro halted product sales and shipments to Ukraine following the country's decision to impose sanctions on company affiliates OJSC Apatit and LLC PhosAgro-Ukraine. PhosAgro CEO Andrey Guryev called the measures discriminatory but noted that these will not have a meaningful negative impact on the company.

* EMR Capital is said to be marketing its hard coking asset West Cumbria Mining Ltd. in the U.K. to prospective investors, The Australian Financial Review's Street Talk wrote. The private equity firm would consider equity and debt funding options to advance the asset into production in the near term, the report added.

* Russian lender VTB raised its stake in En+ Group PLC to 9.6% after a margin call with Singapore's AnAn Group, a minority shareholder of En+, Reuters wrote, citing Yuri Soloviev, VTB's first deputy CEO. VTB financed AnAn Group's acquisition of a 6.5% interest in En+, and Soloviev confirmed that the lender now owns these stakes.

* Aurizon Holdings Ltd. warned customers of more changes to the way it will repair its rail tracks, which could cut system capacity by more than the 20 million tonnes of coal per annum it had initially flagged in relation to a dispute about regulated returns, The Australian Financial Review reported.

* The government of China's Hebei province fired and reprimanded over a dozen officials for failing to manage air pollution in 2017, Reuters wrote. According to the report, Hebei produces almost a quarter of China's steel output.

* Vale SA expects output at its S11D iron ore mine to reach 58 million tonnes this year, exceeding its guidance of 50 million to 55 million tonnes, Reuters reported, citing sources.

* Chinese iron ore producer Hainan Mining Co. Ltd. plans to raise up to US$300 million through a debt issuance in an overseas capital market to improve liquidity and repay debt.

* India's JSW Steel Ltd. plans to restart operations at newly acquired steelmaker Acciaierie e Ferriere di Piombino, or Aferpi, in the first half of June, Metal Bulletin reported. The company presented an industrial plan for Aferpi's Piombino site, which includes the restart of the rolling mills for rail, steel bars and wire rod this year.

* North China's Hebei province plans to phase out 17 coal mines with a total capacity of 10.2 million tonnes this year, gov.cn reported. The province originally planned to shutter 14 coal mines with the same capacity.

SPECIALTY

* U.K.-based Cadence Minerals Plc forecast lithium demand to reach 800,000 tonnes per year by 2025, however, it added that it is unlikely that there will be enough supply to keep up with demand as lithium producers face financing constraints, Mining Weekly reported.

* Paladin Energy Ltd. confirmed that its 75%-owned Langer Heinrich uranium mine in Namibia is being placed on care and maintenance, and it has stopped presenting ore to the plant after securing the approval of relevant stakeholders.

* Singapore-based D1 Mint Ltd., creator of a new diamond backed crypto coin, inked a deal with diamond cutting and polishing firm KGK Diamonds to start its diamond reserve with 1,500 investment-grade diamonds, to be delivered by Russian firm PJSC Alrosa, valued at nearly US$20 million, Mining Weekly reported.

INDUSTRY NEWS

* India's National Stock Exchange and Multi Commodity Exchange are in talks over a potential merger and aim to approach market regulator Securities and Exchange Board of India over the matter as early as this month, Business Standard wrote. According to a source, the merger will help the exchanges reinforce their leadership in the equities and commodity derivatives sectors.

* Sierra Leone President Julius Maada Bio will push for a review of mining contracts and the country's mining law to ensure the West African nation benefits from its natural resources, Reuters reported, citing Yusuf Keketoma Sandi, the president's press secretary.

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