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Newmont buying Goldcorp in US$10B deal; Rio Tinto declares force majeure

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020


Newmont buying Goldcorp in US$10B deal; Rio Tinto declares force majeure

TOP NEWS

Newmont to buy Goldcorp in US$10B deal

Newmont Mining Corp. is acquiring Goldcorp Inc. in a US$10 billion all-share deal to create Newmont Goldcorp, with completion expected in the fourth quarter. Newmont offered 0.3280 of its share for each Goldcorp share. The combined company will target US$1.0 billion to US$1.5 billion in divestitures over the next two years to optimize gold production at a sustainable, steady-state level of 6 million to 7 million ounces per year. Newmont CEO Gary Goldberg said the merger is expected to generate up to US$100 million in annual pretax synergies.

Rio Tinto declares force majeure on iron ore shipments after fire at Cape Lambert

Rio Tinto declared force majeure on certain iron ore shipments after a fire broke out during a maintenance shutdown at its Cape Lambert terminal in Pilbara, Western Australia, Reuters reported. "Rio Tinto is assessing the full impact of the damage and will do all it can to try and minimize disruption to our customers," a spokesperson for the mining giant said in a statement to the newswire.

Schumer to force vote on lifting Rusal, En+ sanctions

U.S. Senate Democratic Leader Chuck Schumer plans to force a vote on a resolution that would disapprove plans for the Trump administration to remove sanctions on United Co. Rusal PLC, its parent En+ Group PLC and EuroSibEnergo PLC, Reuters reported. Schumer said the proposal is "flawed" as it failed to limit Oleg Deripaska's control of, and influence on, the companies. The news comes after U.S. Treasury Secretary Steven Mnuchin defended his plan to lift the sanctions.

DIVERSIFIED

* Goldman Sachs flagged economic stability concerns, saying gold will breach the psychologically important US$1,300-per-ounce mark within three months, even as base metals rose for the week ending Jan. 11 amid hopes of a U.S.-China détente and dovish U.S. Federal Reserve comments.

* Valor Resources Ltd. signed a joint venture option agreement with Kennecott Exploration Co., part of the Rio Tinto group, for the Berenguela copper-silver-manganese project in southeastern Peru, allowing it to take up to a 75% stake.

BASE METALS

* The Brazilian Pará State Environmental Agency awarded Horizonte Minerals PLC a construction license to develop its 100%-owned Araguaia ferronickel project in Brazil.

PRECIOUS METALS

* Cia. de Minas Buenaventura SAA reported gold output of 259,783 ounces for the fourth quarter of 2018 and 1,025,873 ounces for full year 2018. Silver production for the quarter was about 5.8 million ounces, while full-year production was approximately 26.2 million ounces.

* Acacia Mining PLC produced 130,581 ounces of gold in the fourth quarter of 2018, a 12% drop from the prior year due to the Buzwagi mine transitioning to a stockpile-processing operation. Full-year 2018 output totaled 521,980 ounces, exceeding its guidance of between 435,000 and 475,000 ounces.

* Goldcorp said gold production for the fourth quarter of 2018 increased 25% from the previous quarter to 630,000 ounces, beating guidance, with full-year production of 2.3 million ounces. Additionally, the company said it achieved commercial production under budget and ahead of schedule at the Penasquito gold project in Mexico in December 2018.

* First Majestic Silver Corp. reported a 37% year-over-year increase in production to a record high of 22.2 million silver equivalent ounces for 2018, falling within the company's annual guidance. The company anticipates 2019 total production at 24.7 million to 27.5 million silver equivalent ounces.

* Yamana Gold Inc. reported that its overall gold, silver and copper production for the fourth quarter of 2018 and the full year exceeded guidance, with total gold-equivalent production of 1,041,300 ounces for the year, compared to 1,013,000 ounces guided. Fourth-quarter 2018 output on a gold-equivalent basis totaled 310,400 ounces.

* Highland Gold Mining Ltd. reported higher reserves and resources at the Mnogovershinnoye gold mine in Russia, increasing the projected mine life to 2029 from 2022. Proven and probable ore reserves at the mine rose to 771,569 ounces of gold contained in 9.0 million tonnes grading 2.7 g/t, while total indicated and inferred resource rose to about 1.5 million ounces of gold contained in 14.1 million tonnes grading 3.2 g/t.

* The contractors' union at Cia. de Minas Buenaventura SAA's Uchucchacua silver mine in Peru launched a strike over "unsuitable working conditions." The union also protested Buenaventura's dismissal of certain contracted workers at the site as the company concluded some contractor-related services.

* Gascoyne Resources Ltd. confirmed that it tapped Macquarie Capital (Australia) Ltd. as its financial adviser amid concerns that the company could face a takeover below its actual value following recent issues at its flagship Dalgaranga gold mine in Western Australia and instability on its board.

* Filo Mining Corp.'s pre-feasibility study on the Filo del Sol gold project in Argentina estimated a posttax net present value, discounted at 8%, of US$1.28 billion and a 23% internal rate of return. The project is expected to annually produce 67,000 tonnes of copper, 159,000 ounces of gold and 8.7 million ounces of silver, based on 12 years of leaching.

* Ariana Resources PLC's 2018 production from its Kiziltepe mine, part of the Red Rabbit joint venture in Turkey, beat full-year guidance by about 36%, producing 27,110 ounces.

* Panthera Resources PLC secured a new exploration license, extending the tenure of its Kalaka license in Mali for an initial three years, with two possible two-year extensions.

* 3D Resources Ltd. said its proposed acquisition of the Grand Bois and Morne Bossa gold projects in Haiti is unlikely to close by March 31 after the vendors disagreed with the process of validating land titles. 3D Resources said it is continuing to work with its Haitian lawyers and the vendors to complete the deal.

* Sanatana Resources Inc. successfully negotiated a surface access agreement with the local landowners for the company's Tirua copper-gold project on the Solomon Islands. The agreement will help Sanatana secure a prospecting license over the 264-square-kilometer project and begin exploration.

* Titan Minerals Ltd. executed a binding agreement to acquire up to an 85% interest in the Las Antas gold project in southern Peru. The company can earn an initial 60% stake by funding US$2 million of exploration within two years and an additional 25% interest after completing certain milestones.

* TomaGold Corp. increased its ownership in the Monster Lake gold property in Quebec to 50% from 45% after agreeing to acquire Quinto Resources Inc.'s 5% stake for C$500,000.

* Orminex Ltd.'s partner, underground mining contractor GBF Mining Pty. Ltd., secured a 12-month lease with an option to acquire a 50% stake over the Burbanks gold processing mill in Western Australia.

BULK COMMODITIES

* Cline Group LLC's Kameron Collieries ULC laid off 18 workers at the underground Donkin coal mine in Nova Scotia after a recent roof collapse at the site during the 2018 holiday break that resulted in the mine's suspension.

* Coal sales from TerraCom Ltd.'s Blair Athol project in Queensland, Australia, reached 605,423 tonnes in the December 2018 quarter. First-half coal sales for the 2019 financial year totaled 1.2 million tonnes at an average realized price of US$92/t. The company said it is on track to achieve its coal sales guidance of 2.5 million tonnes for the fiscal year.

* Japan set a 30-day deadline for South Korea to respond to its request for government talks over forced labor by South Koreans before and during World War II, after a South Korean court granted a request to seize the Nippon Steel & Sumitomo Metal Corp.'s assets in the country, The Korea Herald reported.

* Chinese aluminum exports for 2018 reached a record at 5.8 million tonnes, increasing 20.9% compared to a year ago, Reuters reported, citing Chinese customs data. In a separate report, the newswire said the country's iron ore imports for 2018 dropped 1% from the previous year to 1.06 billion tonnes, marking China's first annual decline since 2010.

* OCJ Investment, the second-largest single shareholder in Flinders Mines Ltd., joined efforts to stop its proposed delisting from the ASX, The West Australian wrote. The Chinese-backed investor holds about a 22% stake in Flinders.

* An indefinite strike forced Coal India Ltd. unit Mahanadi Coalfields Ltd. to stop operations at its Talcher unit, part of the larger Mahanadi Coalfields operations in India's Odisha state, Odisha Sun Times wrote. Citing a company spokesperson, the report said daily losses are estimated at about 200 million Indian rupees.

* All 21 miners trapped underground after a roof collapse at Baiji Mining Co. Ltd.'s Lijiagou coal mine in China's Shaanxi province were killed, Xinhua News Agency reported.

* Over 23,400 MW of coal-fired power plants were shut in U.S. President Donald Trump's first two years in office, compared to 14,900 MW shut during President Barack Obama's entire first term from 2009 to 2012, Reuters wrote, citing its own data and figures from the U.S. Energy Information Administration.

* Fertoz Ltd. received a trenching and bulk sample permit for its Fernie phosphate mining claims in Alberta, part of the 7,100-hectare Fernie project that extends from British Columbia into Alberta.

* Nan Nan Resources Enterprise Ltd. resumed operations at its Kaiyuan coal mine in China after renewing its mining permit, which is valid from Nov. 3, 2018, to Nov. 3, 2019.

* Jameson Resources Ltd. expanded its Crown Mountain coking coal joint venture in British Columbia by 2,067 hectares after it received four new coal exploration licenses.

SPECIALTY

* PJSC Alrosa's total diamond sales in 2018 grew 6% year on year to US$4.51 billion, from US$4.27 billion in 2017, driven by high demand for rough diamonds and positive price dynamics in the first half of the year. Rough diamond sales totaled US$4.41 billion, while polished diamond sales stood at US$95.3 million, according to preliminary figures.

* Tri-Star Resources PLC's share price fell almost 39% in early afternoon trades on the London Stock Exchange after the company said its 40%-owned Strategic & Precious Metals Processing LLC affiliate in Oman outlined a need for US$10.5 million in funding.

* Former Dominion Diamond Mines CEO Patrick Evans is launching a company producing lab-grown diamonds, selling gem-quality stones larger than 1 carat for the bridal market, the Financial Times reported. Evans said his company, which aims to list on the TSX in 2020, plans to offer prices of about 15% to 20% cheaper than the natural diamonds.

* Peninsula Energy Ltd. produced 20,364 pounds of uranium at its Lance project in the December 2018 quarter, missing its guidance range of between 22,500 and 27,500 pounds.

* Syrah Resources Ltd. declared commercial production at its Balama graphite operations in Mozambique. The company's natural graphite production in the fourth quarter of 2018 totaled 33,000 tonnes, while full-year 2018 production stood at 104,000 tonnes, in line with updated guidance.

* Sheffield Resources Ltd. tapped UBS AG to act as its corporate adviser to search for a strategic partner for funding and developing its Thunderbird mineral sands project in Western Australia.

* Sociedade Mineira Do Lulo, the partnership between Lucapa Diamond Co. Ltd., state-owned mining company Endiama and local partner Rosas & Petalas, will offer seven exceptional diamonds from its Lulo mine in the inaugural competitive sale under the country's new diamond marketing policy.

* Noram Ventures Inc. settled its legal claim against Centrestone Resources LLC related to the latter trespassing on the former's Zeus lithium property in Clayton Valley, Nev.

* Lithium Energy Products Inc. completed its acquisition of the Jackpot Lake lithium property in Nevada. The company agreed with the seller on an immediate transfer for a payment of 759,259 Lithium Energy shares at the Jan. 10 closing price of 13.5 cents apiece for a total of about C$102,500. The company will make the remaining payment of C$102,500 within six months of the project transfer.

INDUSTRY NEWS

* The possibility of an El Niño phenomenon in 2019 poses cost risks among miners in Brazil, Colombia and Ecuador who heavily rely on hydroelectric power, Mining.com wrote, citing Fitch Solutions.

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