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In This List

Steel shortage seen in 2018 on Chinese industry changes; AMCU accepts new deal from Sibanye; Tata selling UK steel business to Greybull

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020

Report Outlooks of Lithium and Cobalt

Essential Metals & Mining Insights July 2020


Steel shortage seen in 2018 on Chinese industry changes; AMCU accepts new deal from Sibanye; Tata selling UK steel business to Greybull

TOP NEWS

Chinesesteel sector restructuring to lead to "spike, steel shortage" in 2018

Peter Marcus, managing partner of consultancy World Steel Dynamics,said in an industry conference in Shanghai that the restructuring of China's steelindustry will reduceproduction by 18% from last year to 705 million tonnes by 2018. According toBloomberg News, Marcus expects a "spike and a steel shortage in 2018"and referred to the low prices reached in late-2015 as a "one-time event."

AMCU accepts new deal from Sibanye, calls off strike

South Africa's Association of Mineworkers and Construction Unionaccepted a new offer fromSibanye Gold Ltd. andcalled off a strike, Reuters wrote. The union was planning to protest the three-yearwage agreement that the company reached with smaller unions in October 2015.

TataSteel selling UK business to Greybull

Tata Steel Ltd.has agreed to sell its Scunthorpe site, housing its long products business in theU.K., to investment group Greybull Capital for a "nominal" fee — a movethat would save 4,400 jobs in the U.K., TheGuardian reported.According to The Daily Telegraph, thenominalsum paid for the business will be supported by a £400 million investment package.

DIVERSIFIED

* California-based Khang & Khang LLP filed a against as the company allegedlyissued misleading statements covering its implementation of safety precautions despiteknowing the dangerous condition of the Samarco iron ore mine in Brazil.

BASE METALS

* BHP Billiton doesnot plan to slow down investments in Chile despite the fall in copper prices,and will decide in 2017 on the expansion of its Spence copper mine, DiarioFinanciero reported, citing the company's president of operations for MineralsAmericas, Daniel Malchuk.

* Vedanta ResourcesPlc's Indian operations produced 759,000 tonnes of refined zinc in fiscal2016, up3% from the previous year. Refined lead and total silver output likewise improvedyear over year by 14% and 30%, respectively, to 145,000 tonnes and 13.65 millionounces.

* Bambang Gatot, director general of coal and minerals at theIndonesian energy ministry, said the government hasto approve a local consortium's plan to acquire a majority stake in 's Indonesianunit and that the government had not received a formal report about the plan untilApril 11, Reuters wrote.

* CuDeco Ltd.will be proceeding withits nonrenounceable rights issue to raise gross proceeds of about A$63.1 millionafter the Australian Securities and Investments Commission agreed to lift the stoporder on the offer on April 8. Funds will be used to complete the construction andcommissioning of the Rocklands Group copper project in Queensland, Australia, repayexisting short-term shareholder loans, and for working capital.

* Aus Tin MiningLtd. subsidiary, Ten StarMining Pty Ltd, executed a two-year off-take agreement with Traxys Europe for all of the tinconcentrate from the company's Granvilletin project in Tasmania, Australia.

* Production at Freeport-McMoRanInc.'s 53.6%-owned CerroVerde copper mine in Peru was "partially affected"due to the 48-hour strike by the workers as they protested a reduced profit-sharingbonus, Reuters reported, citing a labor union representative.

* Codelcodecided that resources from the Rajo Inca copper deposit will no longer be extractedseparately, but through the current open-pit exploitation of its mine, daily Diario Financiero reported. The change wouldrequire a lower-than-estimated investment of approximately US$600 million ratherthan the US$3 billion originally planned.

* Members of the Antauta community in Peru's Puno region, whohave been protesting in the area since March 31, lifteda roadblock to Minsur SA'sSan Rafael tin minein the country, Business News America reported.

PRECIOUS METALS

* South Africa's Association of Mineworkers and ConstructionUnion accepted a new offerfrom Sibanye Gold Ltd.and called off a strike, Reuters wrote. The strike would have been in protest ofthe three-year wage agreement that the company reached with smaller unions in October2015.

* Yamana Gold Inc.said it produced 308,000 ounces of gold, 1.93 million ounces of silver and 26.0million pounds of copper in the first quarter of 2016, according to . It upped its consolidatedgold production guidance by 30,000 ounces, 85,000 ounces and 104,000 ounces in 2016,2017 and 2018, respectively, as a result of its RDM acquisition.

* Central RandGold Ltd. said the High Court of South Africa upheld its appeal related to the Supreme Court's February2015 judgment in a dispute with Puno Gold Investment (Pty.) Ltd. The High Courtawarded a cost order in favor of the company, and the matter will now be referredback to the Supreme Court to fully consider the facts of the funding dispute.

* Citigold Corp.Ltd. signed a memorandum of understanding to partner with a consortiumto acquire the assetsof Bharat Gold Mines Ltd.The assets principally comprise mining leases, land and a plant in the heart ofthe Kolar goldfield of India.

* Athabasca NuclearCorp. acquiredthe Hat Au-Cu East property in the Sheslay region of British Columbia by staking.The company initially plans to identify gold-copper porphyry targets at the property.

* Euromax ResourcesLtd. entered into a term sheet with CC Mining SA under which the latterwill provide fundingof US$30 million to Euromax for the development of Ilovica gold project in Macedonia.

* Oban Mining Corp.completed the acquisitionof the mining claims comprising part of the DeSantis gold property in Ontario, from by issuing 620,400common shares. Oban expects to issue a further 229,600 common shares upon completionof the transfer of the mining leases.

* Avala ResourcesLtd. and its controlling shareholder Dundee Precious Metals Inc. completed a plan of arrangementunder which Dundee, through a wholly owned subsidiary, acquired all of Avala shares that it does not already own.

BULK COMMODITIES

* Tata Steel Ltd.has agreed to sell its Scunthorpe site, housing its long products business in theU.K., to investment group Greybull Capital for a "nominal" fee — a movethat would save 4,400 jobs in the U.K., TheGuardian reported.According to The Daily Telegraph, thenominalsum paid for the business will be supported by a £400 million investment package.

* Meanwhile, trade association U.K. Steel said Sanjeev Gupta'sproposalto save Tata Steel's Port Talbot steelworks will only leave the operations twiceas exposed to high electricity prices in Britain. The Financial Times wrote that the scenario increases the pressure on thegovernment to offer more energy subsidies to potential buyers of the business.

* U.S. Steel Corp.CEO Mario Longhi said that the European Union and the U.K. were negligenton China's dumping of cheap steel on world markets, Financial Times reported. The CEO cited their willingness to grant marketeconomy status to China, a move that would complicate the filing of antidumpingcases against the country.

* Meanwhile, industry executives said that China's steel sectorwillcontinue to suffer from significant overcapacity despite restructuring, Financial Times reported.

* However, Peter Marcus, managing partner of consultancy WorldSteel Dynamics, said in an industry conference in Shanghai that the restructuringof China's steel industry will reduceproduction by 18% from last year to 705 million tonnes by 2018. According toBloomberg News, Marcus expects a "spike and a steel shortage in 2018"and referred to the low prices reached in 2015 as a "one-time event."

* Reuters also wrote that China's foreign ministry said the countrywants to work with the rest of the world to addressovercapacity in the steel sector as Britain's Foreign Secretary Philip Hammondurged China — the world's top steel producer — to tackle the pressing issue.

* According to Mining weekly,India is likelyto end its potash "import holiday" earlier on the back of an expectedrise in agricultural sowing. Government officials said potash import negotiationswould need to start earlier than June as India expects to see favorable monsoonrains, ending two consecutive droughts.

* Chinese private steel mill Haixin Iron and Steel Group couldreopen this month or in early May under a new owner, private company JianlongGroup, The Australian Financial Reviewwrote. The mill started bankruptcy proceedings in November 2014 and its reopeningis expected to add to concerns over China's commitment to restructure its steelsector.

* Korea Western Power Co. Ltd. boughta total of 550,000 tonnes of steaming coal from South Africa and Australia for loadingbetween June and November through two spot tenders closed on April 7, Reuters wroteciting a source from the utility, who did not disclose price information.

* According to ABC, the government of New South Wales approvedIluka Resources Ltd.'sA$680 million minerals sands project in the state — the second multimillion-dollarmineral sand mine approved in the Balranald region within the last two years. Theproject is still subject to Commonwealth approval and is slated to produce 500,000tonnes of heavy mineral concentrate and 600,000 tonnes of ilmenite every year for15 years.

* Yancoal AustraliaLtd. disputedWest Australian treasurer Mike Nahan's calls for the company to merge with , whose operations arelocated near Yancoal's Premier mine, The AustralianFinancial Review reported. "There's something to be said for throwing unsupportedbusiness ideas into the public without consulting either party, I'm just not willingto say it," said Yancoal Australia spokesman James Rickards.

* CAP SAis planning to optimizeprofitability before production this year in order for iron ore mining to reach16 million tonnes, up 4% compared with 2015, said general manager Fernando Reitich.Meanwhile, CAP's steel unit Cap Acero expects to ship about 760,000 tonnes, up 6%compared with last year, while its steel processing unit Cintac estimates salesof around 300,000 tonnes this year, La Tercerareported.

* The creditors of NewWorld Resources Plc said that the Czech coal miner needed by next weeka state aiddeal to avoid bankruptcy of its main operating subsidiary OKD a.s., Reuters reported.

* Amid consolidation talks between Tata Steel and , the IG Metall engineeringunion is seekingjob protection for workers, Reuters reported. "Guarantees for jobs, locationsand co decision-making rights are at the top of our list; they are prerequisitesfor any type of partnership," IG Metall's regional head in the German stateof North Rhine-Westphalia, Knut Giesler, told the Rheinische Post newspaper.

* POSCOtold a green court in India that it would be unableto set up a US$12 billion steel plant in the country's Odisha state by July2017 due to regulatory hurdles, Reuters reported.

* Fitch Ratings affirmed the long-termissuer default rating of MetinvestBV at Restricted Default, as well as the company's outstanding notesat C/recovery rating RR6, pending the outcome of the company's ongoing talks withcreditors regarding a comprehensive debt restructuring plan, Interfax-Ukraine wrote.According to Fitch, the current scheme of arrangement between Metinvest and itscreditors provides for a moratorium on creditors taking enforcement action beforeMay 27.

* Arrium Ltd.administrator Grant Thornton said the company's priority is to work with the SouthAustralian government's steel taskforce to review the restructuringoptions for Whyalla and its related mining operations, The Australian reported.

* Russia mayproceed with closing the most dangerous coal mines and sites, although thiswill affect consumption of material, Vedomostireported, citing Russian Deputy Prime Minister Arkady Dvorkovich.

* Trade unions in Poland protestedagainst the liquidation of the KatowickiHolding Weglowy SA's Wujekcoal mine in the country, Puls Biznesureported, while Katowicki Holding said no such decision has been taken.

SPECIALTY

* According to the Australian Associated Press, 's Energy Resources of Australia Ltd. produced 21%more in the March quarter of the year, with 593 tonnes of U3O8.

* A feasibility study on AlturaMining Ltd.'s Pilgangooralithium project in Western Australia indicateda net present value of A$382 million, using a 10% discount rate, and an internalrate of return of 59.5%. CapEx is at A$129 million, with payback in 1.7 years.

* Boss ResourcesLtd. increasedthe uranium resource at its Honeymoonproject in South Australia to 53 million pounds with the definition of a maidenresource for the Gould's Dam prospect. Gould's Dam now hosts 22.1 million tonnesat 510 parts per million for 25 million pounds of contained U3O8.

* Kimberley DiamondsLtd. said that open pit mining has started at its Leraladiamond mine in Botswana. First production and recovery of diamonds is anticipatedwithin this month, with first sales expected in June.

* Uranium ResourcesInc. signed a definitive agreement to sell subsidiary HydroResources Inc. to LaramideResources Ltd. Hydro Resources holds Uranium Resources' and Crownpoint uraniumproperties in New Mexico.

* Press Trust of India, citing Indian Mines Secretary BalvinderKumar, reported that the government plans to invite tenders for the first-everauction of a diamond mine in the Panna district of Madhya Pradesh state.

INDUSTRY NEWS

* Civil Australia Holdings — a coal contractor to mining giantsBHP Billiton and Anglo American Plc— is set to be wound up, with a court hearing into the process scheduled for April22, The Sydney Morning Herald wrote.The contractor is the latest casualty in the struggling resources services sector,with a union official referring to the situation as an indication of the "wafer-thin"profit margins in the Australian coal sector.

The Daily Dose is updatedas of 7 a.m. New York time, and scans news sources published in Chinese, English,Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some externallinks may require a subscription.