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Australian regulator claims Rio Tinto knew of overstated Mozambique resource

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Australian regulator claims Rio Tinto knew of overstated Mozambique resource

TOP NEWS

Australian regulator claims Rio Tinto knew of overstated Mozambique resource

The Australian Securities and Investments Commission claimed Rio Tinto knew that its coal resource estimate for its then-Mozambique asset was "materially" overstated within months of completing the deal, The Australian Financial Review reported. The watchdog, which filed a legal proceeding earlier this month, alleged that the coal resources and reserves that Rio Tinto released in March 2012 were 67% lower than what the company had estimated in the due diligence assessments for the acquisition.

Kobe Steel, Toyota facing lawsuit from US consumers over substandard products

Kobe Steel Ltd. and Toyota Motor Corp. are facing a lawsuit from their U.S. consumers for allegedly engaging in fraud by concealing the use of substandard metal components in vehicles and violating consumer protection laws, Reuters reported. The complaint also alleged that the companies violated federal and state consumer protection laws by claiming that their products were in compliance with U.S. quality standards.

Report: Glencore in talks to sell cobalt, but price remains 'sticking point'

Glencore Plc is negotiating a one-year deal with Chinese firm GEM for the sale of about a quarter of its cobalt production, but the price has been a "sticking point" as the company and other major producers now have the ability to exert more influence during negotiations, Reuters reported, citing sources familiar with the matter.

DIVERSIFIED

* Lawyers for Rio Tinto, former CEO Tom Albanese and former CFO Guy Elliott filed a consolidation motion to have recent U.S. SEC fraud charges against them dismissed, London's Financial Times reported. The charges were filed in October 2017, with the commission accusing the parties of violating the reporting, books and records, and internal controls provisions of federal securities laws related to an acquisition of coal assets in Mozambique.

* Quest Minerals has re-emerged on the ASX as High Grade Metals Ltd., switching its project focus from vanadium in Australia to mainly cobalt and gold in Austria, leveraging off what analysts see as an increasing push within the European Union to own battery minerals resources. Blue Ocean Equities' Sydney-based senior resource analyst Steuart McIntyre told S&P Global Market Intelligence that his firm was a "strong believer" in the mainstream adoption of electric vehicles over the next few years and expects to see continued growth in the supporting industries like lithium-ion batteries.

BASE METALS

* An uptick in pricing and investor sentiment drove an increase in Russian miner PJSC Norilsk Nickel Co.'s revenue in 2017, which grew by 11% year over year to US$9.15 billion. However, net profit tumbled 16% to US$2.12 billion, impacted by increased cash costs linked to the appreciation of the Russian ruble against the dollar.

* Finland's Ahtium Oyj, formerly known as Talvivaara Mining Co. Plc, filed for bankruptcy after failing to turn profits from current projects and secure financing to acquire new ones.

* BHP Billiton Group has not abandoned its plans to sell its Cerro Colorado copper mine in Chile and is carrying on conversations with potential buyers without a definite deadline, La Tercera reported, citing a Bloomberg News interview with the company's president of operations for minerals Americas, Daniel Malchuk.

* Horizonte Minerals Plc completed the acquisition of the Vermelho nickel-cobalt project in Brazil from Vale SA. Meanwhile, a feasibility study for the Araguaia nickel project, which is targeting production of 14,500 tonnes of nickel per annum, is due for completion by mid-2018.

* Havilah Resources Ltd. estimated an inferred resource for cobalt in its Kalkaroo copper-cobalt-gold deposit in South Australia of 193.3 million tonnes at 120 parts per million cobalt containing about 23,200 tonnes, at a 20 ppm cobalt lower cut-off grade.

* Aeris Resources Ltd.'s subsidiary Tritton Resources Pty Ltd. entered a copper hedging contract for 12,000 tonnes of copper, to be delivered in monthly installments of 1,000 tonnes up to February 2019 at an average price of A$8,670 per tonne.

* White Rock Minerals Ltd. awarded to Frontier Exploration LLC the contract for a 4,500-meter drilling program at the VMS zinc project in Alaska, aimed to expand the maiden resource estimate and drill testing of more than 30 exploration targets.

PRECIOUS METALS

* Shandong Gold Mining Co. Ltd.'s net profit attributable to shareholders dropped 12% to 1.14 billion Chinese yuan in 2017, while operating revenues edged up 2% to 51.04 billion yuan. The decline in net profit was due to lower production volumes at some of Shandong Gold's mines, as the company carried out investigations and a facility-upgrade program to improve mine safety. Total gold output went up 20% to 35.88 tonnes of gold in 2017, with output guidance for this year set at 39.86 tonnes.

* Mining Forum SA threatened to block Lonmin Plc's 5.1 billion South African rand takeover by Sibanye Gold Ltd., with the lobby group alleging that the platinum producer failed to fulfill its mandatory license obligations, Fin24 reported.

* Semafo Inc.'s fourth-quarter 2017 net income attributable to shareholders swung to a profit of US$1.6 million, from a net loss of US$4.9 million a year ago, with revenue from gold sales decreasing 9% to US$63.0 million. However, for full year 2017, net income attributable to shareholders dropped to US$20.0 million, from US$34.2 million a year ago, while revenue from gold sales declined by 14% to US$259.0 million.

* Silver Range Resources Ltd. optioned the expanded South Kitikmeot gold project in Nunavut, Canada, to Amaroq Gold Corp., allowing the latter to purchase the project in exchange for cash and share payments spread over five years. South Kitikmeot covers the Esker Lake, Gold Bugs, Qannituq, Uist, Ujaraq, Hiqiniq and Bling prospects.

* Alloy Resources Ltd. signed a binding heads of agreement with Jindalee Resources Ltd. for an option to acquire exploration license 53/1962, dubbed as the Millrose tenement, located adjacent to its Horse Well gold project in Western Australia.

* Adam Travis, who along with his family owns an approximately 5.2% interest in Colorado Resources Ltd., is seeking the reorganization of the company's board. Travis nominated Patrick Soares, Bryan Wilson, Christian Kargl-Simard, Michael Cathro and himself for election as directors.

* St Barbara Ltd. entered gold hedging contracts for production of 25,000 ounces from its Simberi project in Papua New Guinea, to be delivered in monthly installments from July 2018 to December 2019 at a forward price of A$1,750 per ounce.

* Russia's gold output in 2018 is expected to increase 3% year over year to 328 tonnes, Reuters reported, citing the Gold Industrialists' Union.

BULK COMMODITIES

* Gary Cohn is resigning as President Donald Trump's top economic adviser, amid the administration's planned implementation of hefty tariffs on U.S. steel and aluminum imports.

* Australian central bank Governor Philip Lowe criticized Trump's policy, saying that succeeding retaliations by other countries affected by the proposed tariffs on steel and aluminum imports could cause a "very big shock for the global economy," Bloomberg News reported.

* U.S. Senate majority leader Mitch McConnell slammed Trump's proposed tariffs on steel and aluminum imports, saying that he has "genuine concerns" that it may spark a trade war, CNN Politics reported.

* South African steel and aluminum producers remain uncertain about the impact of trade tariffs by the U.S. on their businesses, but the companies said they will seek to mitigate the risk via export diversification, Mining Weekly reported.

* Rio Tinto will cut up to 200 jobs at the Brockman 4 and Marandoo iron ore mines in Western Australia's Pilbara region by early 2019 as the company's automated truck fleets come online, The West Australian reported. A company spokesperson did not deny the claim.

* Sirius Minerals Plc is seeking US$2 billion in debt guaranteed by the U.K. government to advance its Woodsmith potash project in the country, saying the funds are important to its financial plan, the Financial Times reported.

* Ghana plans to launch a series of infrastructure projects in the country, including the construction of alumina refineries and railways, which will be paid off using refined bauxite in barter trade, Bloomberg News reported, citing President Nana Akufo-Addo.

* Moody's upgraded India's JSW Steel Ltd.'s corporate family rating and senior unsecured debt rating to Ba2 and Ba3, respectively, assigning a stable outlook to the ratings. The rating agency attributed the move to the company's improving credit metrics owing to higher steel sales amid rising demand in India.

* Australian Prime Minister Malcolm Turnbull said that Labor leader Bill Shorten's stance against Adani Enterprises Ltd.'s Carmichael coal mine may cause a "chilling effect" on the country's jobs and investment climate, the Australian Associated Press reported.

* Itochu Corp. signed a deal with Vitrinite to develop a new coking coal mine in Queensland's Bowen Basin, The Australian Financial Review reported. Vitrinite said the deal will allow the company to develop a feasibility study and business case for the mine in preparation for starting construction.

* India's Supreme Court directed Vedanta Ltd. to approach the additional city civil and session judge and special judge for CBI cases at Bangalore for the release of the group's 34,544 tonnes of iron ore, which were seized on claims that Vedanta engaged in illegal mining. This sets aside a previous ruling of the Karnataka high court that allowed the release of iron ore to the company, Mint reported.

* The Thai Supreme Court ordered coal miner Banpu PCL to pay compensation of 1.5 billion Thai baht to Siva Nganthavee and his Thai-Lao Lignite Co. for using information to develop the Hongsa coal-fired power plant in Laos, the Bangkok Post reported.

SPECIALTY

* Gem Diamonds Ltd. recovered a 152-carat, top white color Type IIa from its majority-owned Letseng mine in Lesotho. This is the sixth diamond of over 100 carats recovered from the mine this year.

* Montero Mining & Exploration Ltd. agreed to acquire a 95% interest in the Uis lithium-tin tailings project in Namibia from Namibia Base Minerals CC and Namibia Silica CC for about US$1.4 million in staged payments.

* Frontier Diamonds Ltd. discovered the first diamonds of up to 1.45 carats in size at the Bellsbank kimberlite pipe project in South Africa.

* AVZ Minerals Ltd. inked a memorandum of understanding with Guangzhou Tinci Materials Technology Co. Ltd. to explore potential investment and off-take opportunities involving the former's Manono lithium project in the Democratic Republic of the Congo.

INDUSTRY NEWS

* The Zimbabwe government is open to reversing certain mining policies under former President Robert Mugabe, including indigenization laws for all commodities except for diamonds and platinum, Bloomberg News reported.

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