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Samarco, owners slapped with 155B reais civil lawsuit; Glencore contemplates US$2B Kazakh gold mine sale; New World Resources unit OKD files for bankruptcy

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


Samarco, owners slapped with 155B reais civil lawsuit; Glencore contemplates US$2B Kazakh gold mine sale; New World Resources unit OKD files for bankruptcy

TOP NEWS

Brazilianprosecutors slap Samarco, owners with 155 billion reais civil lawsuit

Brazilian prosecutors filed a 155 billion Brazilian reais civillawsuit against Vale SA,BHP Billiton Group andtheir joint venture Samarco MineraçãoSA over a dam burst at the Samarco iron ore mine in the country's Minas Gerais statethat claimed 19 lives, Bloomberg News reported. The lawsuit demands an initial paymentof 7.8 billion reais to be made within 30 days, challenging the previously signedagreement between the Brazilian government and the companies.

Glencorecontemplates US$2B Kazakh gold mine sale

In an attempt to bring its net debt down to US$18 billion, is mullingover the option to sell its Vasilkovskoyegold mine Kazakhstan, in a deal that may fetch the Swiss miner some US$2 billion,after interested investors approached the company, the Financial Times reported.

New World Resources unit OKD files for bankruptcy

London-listed New World Resources Plc's main coal-mining unit, , filed a in a Czech court, claimingEurope's first major coal-sector scalp amid one of the worst-ever market downturnsfor the fuel and steel-making ingredient. New World Resources said OKD's bankruptcyfiling came after discussions with the Czech government and a group of major creditors"made no meaningful progress."

DIVERSIFIED

* Brazilian prosecutors filed a 155 billion Brazilian reais civillawsuit against Vale SA,BHP Billiton Group andtheir joint venture Samarco MineraçãoSA over a dam burst at the Samarco iron ore mine in the country's Minas Gerais statethat claimed 19 lives, Bloomberg News reported. The lawsuit demands an initial paymentof 7.8 billion reais to be made within 30 days, challenging the previously signedagreement between the Brazilian government and the companies.

* Moody's changed the outlook for all ratings of and its rated subsidiariesto positive from negative. Concurrently, Moody's has affirmed the Ba3 corporatefamily rating of Anglo American Plc, the Ba3 senior unsecured instrument ratingsof Anglo American Capital plc,as well as Anglo's (P)NP short-term ratings and the Baa2.za/P-2.za national scaleratings of Anglo American SA Finance Ltd. The change in the outlook to positivefollows the company's announcement that it has agreed to sell its niobium and phosphatesbusinesses for about US$1.5 billion in cash and expects to close the transactionin the second part of this year after clearing standard regulatory approvals.

* Rising metallurgical coal, copper and zinc prices and a strongperformance in the first quarter have helped Teck Resources Ltd. shares rise nearly threefold in 2016,prompting analysts to boost their earnings estimates for the company's second quarterby over 5x on average, Bloomberg News reported.

BASE METALS

* Following the US$1.5 billion deal to buy Anglo's Brazilianniobium and phosphate assets, ChinaMolybdenum Co. Ltd. is mulling over buying more mining assets from westernrival companies in a bid to expand its international business, the Financial Times reported,citing two senior company executives.

* booked a net profit of656 million Swedish kronor in the first quarter, down from 896 million kronor posted in the year-ago period.Revenues for the first quarter fell to 8.85 billion kronor from 10.41 billion kronor,due to lower metal prices, the company said in an interim report. Operating profitslid to 888 million kronor from 1.21 billion kronor.

* Reservoir MineralsInc. exercised its right of first offer to acquire Freeport-McMoRanInc.'s 55% interest in the Timok project's upper zone, as well as increased its interestto 60.4% in the lower zone, by paying US$135 million. Freeport will retain the remaininginterest in the Lower Zone.

* Alara ResourcesLtd. said it plans to raise a case with the Saudi Board of Grievancesclaiming wrongful terminationof license as the 60-day period to file an appeal with the Saudi Ministry of Petroleumand Mineral Resources has passed. The Saudi Ministry of Petroleum and Mineral Resourcescanceled the mining licensefor the Khnaiguiyahzinc-copper project in Saudi Arabia in December 2015.

* Amur MineralsCorp. said measured, indicated and inferred resources at its Ikenskoe/Sobolevskynickel-copper deposit, part of the Kun-Manie project in Russia, has increasedto 35.3 million tonnes at 0.51% nickel and 0.13% copper for 180,800 tonnes of containednickel and 47,100 tonnes of contained copper, from a previous 2013 ore tonnage of34.1 million tonnes.

PRECIOUS METALS

* In an attempt to bring its net debt down to US$18 billion,Glencore Plc is mullingover the option to sell its Vasilkovskoyegold mine Kazakhstan, in a deal that may fetch the Swiss miner some US$2 billion,after interested investors approached the company, the Financial Times reported.

* Tahoe ResourcesInc. reportedadjusted net earnings for the first quarter of US$35.5 million, or 16 cents pershare. The company's revenue totaled US$132.1 million at total operating costs ofUS$77.5 million, leading to mine operating earnings of US$54.6 million.

* CentaminPlc posted total comprehensive income attributable to shareholders ofUS$40.9 million in the first quarter, upfrom US$28.6 million a year ago. Revenue for the three months increased to US$148.1million, from US$135.5 million a year ago, as a 2% fall in average realized goldprices was offset by an 11% increase in gold sales.

* Centerra GoldInc. posted net earnings in the first quarter of US$18.1 million, a decline of 56% yearover year, while its revenue for the quarter dropped 66% year over year to US$73.2million. The company's gold production in the quarter totaled 86,444 ounces, downfrom 170,683 ounces produced a year ago, while its gold sales also declined 65%year over year to 61,744 ounces.

* IAMGOLD Corp.'sattributable gold production and sales amountedto 191,000 ounces in the first quarter, compared to 208,000 ounces in the correspondingquarter of 2015. The decrease in production was partly due to lower grades.

* First MiningFinance Corp. signed a definitive share purchase agreement to Chalice Gold Mines Ltd.'s Cameron Gold Operations Ltd. unit, which owns the gold project in Ontario,in a deal valued at C$13 million.

* Gold prices have crossed the US$1,300 mark per ounce on speculationthat the U.S. central bank will not immediately tighten policy, Bloomberg News reported.

* Argonaut GoldInc. reported a year-over-year jump in first-quarter net income to US$4.3million from US$1.5 million even though revenuefell by 31% to US$35.3 million. Net income rose mainly due to a noncashimpairment reversal of US$3.6 million. Argonaut's gold equivalent production fell26% to 32,154 ounces in the three-month period.

* Operations have been suspendedat AngloGold Ashanti Ltd.'sSavuka gold projectin South Africa, following the death of two employees on April 30, Mining Weekly reported. The Department ofMineral Resources will launch a probe May 3.

* Red Eagle MiningCorp. said the development of the San Ramon gold mine and mill project in Colombia is approximately60% complete, with about90% of equipment delivered to the project site, all proceeding on budget and schedule.

* Eastern GoldfieldsLtd. signed abinding agreement to acquire more tenements in Western Australia's Eastern Goldfieldsregion from Orion Gold NL'sGoldstar Resources (WA) Pty. Ltd.unit in exchange for A$125,000 in cash and 2 million unlisted options.

BULK COMMODITIES

* London-listed New World Resources Plc's main coal-mining unit, , filed a in a Czech court, claimingEurope's first major coal-sector scalp amid one of the worst-ever market downturnsfor the fuel and steel-making ingredient. New World Resources said OKD's bankruptcyfiling came after discussions with the Czech government and a group of major creditors"made no meaningful progress."

* K+SAktiengesellschaft issued promissory notes with a volume of €600 million,divided in fixed andvariable tranches in maturities from three years to seven years. More than 80 investorsparticipated in the notes, which hold an average interest rate on all tranches ofabout 1.00% per annum. The proceeds from the issue will increase the company's financialflexibility and possibly reduce drawings against its existing credit line.

* Production at CoalIndia Ltd. dropped 3.4% year over year to 40.09 million tonnes in Aprilwhile shipments decreased 2.5% to 42.45 million tonnes as stockpiles rose due toweak demand, Bloomberg News reported,citing a regulatory filing.

* For the quarter ended March 31, Agrium Inc.'s net earnings attributable to its equity holdersslumped to US$2 millionfrom net earnings of US$12 million reported a year ago. The company revised itsfull-year 2016 outlook to annual diluted earnings per share of US$5.25 to US$6.25,compared to the previous estimate of US$5.50 to US$7.00.

* The Federal Court of Australia gave Arrium Ltd.'s administrators, KordaMentha, more time to holdthe second creditors' meeting, now with a deadline of February 2017, while is in advanced talkswith administrators for a potential investment in the troubled steelmaker, The Sydney Morning Herald reported.OZ Minerals is looking to build a copper processing plant in Whyalla with concentrateto be sourced from the Carrapateenacopper project in South Australia. "We're having discussions with a range ofpotential partners including Arrium," an OZ spokesman said.

* Aluminium BahrainBSC reported first-quarter net income of US$11 million, downfrom US$99 million booked a year earlier due to a collapse in aluminum prices. Totalsales dropped 24% on a yearly basis to US$549 million.

* APAC Coal Ltd.entered a heads of agreement to acquirea China-based agriculture and food business, the Goyes group of companies.

* Chongqing Ironand Steel Group reported aloss of 992 million Chinese yuan in the first quarter, while its revenue slumpedby 38% to 1.41 billion Chinese yuan compared to a year ago, Steelcn reported. Thecompany attributed the huge loss to the lower steel price.

* A 42.5 million South African rand claim brought against unitKeaton Mining by contract miner Megacube Mining was dismissedwith costs by the arbitrator. Megacube is also liable to compensate Keaton Miningfor the damages which flow from its failure to mine and deliver 300,000 tonnes ofrun-of-mine coal per month.

* North China's Shanxi province, a major coal producing regionin the country, has issued a document that prohibits approval of any new coal mineduring the 13th five-year period, in an attempt to cut overcapacity, the National Business Daily reported.

SPECIALTY

* ASX-listed SayonaMining Ltd. inked a legally binding term sheet to Glen Eagle Resources Inc.'s Authier lithium project in Quebec for C$4 million.  The project area comprises 19 mineral claims totaling653 hectares.

* Galway MetalsInc. terminatedthe contract for its VictorioMountain molybdenum-tungsten project in New Mexico to preserve cash.

* Anson ResourcesLtd. signed a nonbinding memorandum of understanding with toassess using graphiteand graphene in the latter's steel products.

* Lanka GraphiteLtd. said a breakthroughtechnique has been developed for graphene production under its materialcollaboration agreement with the National Taiwan University of Science and Technology.The Liquid Phase Exfoliation technique has the potential to lead to mass productionof graphene, the company said.

* Rio Tinto'spink diamonds division has unveiledthe largest violet diamond ever recovered from the Argyle mine in Western Australia. The 2.83-caratpolished oval shaped diamond, known as The Argyle Violet, will be showcased at the2016 Argyle Pink Diamonds Tender.

INDUSTRY NEWS

* China's National Bureau of Statistics will not releasefirst-quarter production data for several commodities as the country's corruptionwatchdog, the Central Commission of Discipline Inspection, or CCDI, is of statestatistics by government officials. According to Barclays Capital analyst MiswinMahesh, "It would mean that import data and ship tracking will have to paya larger role, although it would still not be able to give a good estimate for localdemand, given China is now also a net exporter of refined products." The regulatorrecently said hundreds of staff members at the statistics bureau had used data forpersonal gain.

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