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Nippon Steel eyes ¥200B in divestments; UK government suspends Parliament

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[Infographic]: 2021 World Exploration Trends


Nippon Steel eyes ¥200B in divestments; UK government suspends Parliament

TOP NEWS

Nippon Steel seeks to raise ¥200B for overseas acquisitions, plant upgrades

Nippon Steel Corp. aims to raise ¥200 billion by March 2021 to fund overseas acquisitions and upgrade its domestic plants, Reuters reported, citing Executive Vice President Katsuhiro Miyamoto. The Japanese steelmaker intends to raise the funds through divestments, primarily in cross-held shares in fellow Japanese companies. Nippon Steel also intends to hike product prices and increase productivity by streamlining its manufacturing structure to boost earnings.

Pound sinks as queen agrees to government request to suspend Parliament

Queen Elizabeth has accepted a request from the U.K. government to suspend Parliament, making it harder for members of Parliament to block a no-deal Brexit. The British pound shed almost 1% against the U.S. dollar earlier in the day following reports of the request.

Russian fertilizer producer PhosAgro's Q2'19 earnings soar 4x on forex gains

In the second quarter, PJSC PhosAgro's attributable net profit quadrupled year on year to 11.78 billion Russian rubles from 2.95 billion rubles thanks to a favorable exchange rate. Revenue grew 3% yearly to 58.15 billion rubles due to a 37% increase in domestic sales that was sparked by the early start of the high season.

BASE METALS

* Record-high revenue of A$792.9 million propelled Independence Group NL's fiscal 2019 profit up 44% to A$76.1 million. The company is eyeing new and better offtake deals with Glencore PLC and BHP Billiton Nickel West Pty Ltd. for its Nova nickel mine in Western Australia so as to reap the benefits of increased nickel demand from battery makers, while simultaneously trying to extend its life beyond the current seven years by finding new deposits, The Australian Financial Review wrote.

* Jerry Garry, head of Papua New Guinea's Mineral Resources Authority, said Metallurgical Corp. of China Ltd. could be ordered to close the Ramu nickel-cobalt plant it operates in the country as well as pay compensation following a waste spill into the ocean that turned parts of it red, Reuters reported.

* Chengtun Mining Group Co. Ltd.'s first-half earnings dropped 83.9% year over year to 64 million Chinese yuan, resulting from fluctuations in cobalt prices during the period.

* Metals X Ltd. unit Bluestone Mines Tasmania Pty Ltd. entered an agreement with Citibank NA for a A$35 million secured term loan facility for four years, which will primarily be used to fund development expenditures for its Nifty copper mine in Western Australia, as well as for capital expenditure and working capital purposes.

* Auroch Minerals Ltd. completed the acquisition of the Saints and Leinster nickel projects in Western Australia from Minotaur Exploration Ltd.

* Horizonte Minerals PLC secured US$25 million from Orion Mine Finance in exchange for a 2.25% royalty on the Araguaia nickel project in Brazil.

* Lundin Mining Corp. signed an amended agreement to increase its secured revolving credit facility to US$800 million, with a US$200 million accordion option, as well as reduce the cost of borrowing and extend the term to August 2023 from October 2022.

* Institutional Shareholder Services Inc. recommended Cobalt 27 Capital Corp. shareholders to vote in favor of Pala Investments Ltd.'s takeover bid.

PRECIOUS METALS

* Anglo American Platinum Ltd. is preparing to sell off its interest in the Bokoni platinum mine in South Africa, Miningmx reported. The intention remains to exit AAP's interest in Bokoni... AAP has engaged independent experts to complete a mine, process and infrastructure study in support of a new mine design in support of the commencement of the disposal process," said Jana Marais, a company representative.

* Scotgold Resources Ltd. postponed the first gold production at its Cononish gold-silver project in Scotland to February 2020 from December due to construction delays at the processing plant.

* Prime Mining Corp., formerly ePower Metals Inc., secured the right to acquire Minera Alamos Inc.'s option on the Los Reyes gold project in Mexico.

* Western Copper & Gold Corp. unit Casino Mining Corp. completed the acquisition of the Canadian Creek gold property in Canada's Yukon territory from Cariboo Rose Resources Ltd.

BULK COMMODITIES

* Even though thyssenkrupp AG CEO Guido Kerkhoff would prefer to keep a minority stake in the group's elevator division with a planned IPO in the works, he could be forced to sell the segment off in its entirety in order to save the group's remaining businesses amid mounting financial pressures, as a formal auction would be faster, Reuters wrote citing four sources close to the company.

* BHP Group is close to selling its stake in the Nimba iron ore deposit in Guinea for an insignificant amount as the miner is keen on sealing a deal after years of failing to sell the asset, Reuters reported citing banking sources.

* Britain is going to spend £390 million on low carbon technology, of which £250 million will be allocated towards the steel industry with the aim of cutting emissions, as part of its target to reach net zero greenhouse gas emissions by 2050, Reuters reported. The country earmarked £100 million of the total to build up its hydrogen production industry.

* Citic Ltd.'s first-half attributable profit grew 9% to HK$33.5 billion, or HK$1.15 per share, partly attributed to its first positive profit at the Sino-Iron project in Western Australia. Meanwhile, the company's board proposed an 18 cents-per-share dividend, up from the dividend of 15 cents per share distributed in the prior year.

* Mechel PAO agreed to supply up to 700,000 tonnes of metallurgical coke and pulverized coal injection and anthracites by the end of 2020 to Steel Mont.

* S&P Global Market Intelligence has learned that several entities from Japan, Germany and China have approached Australian Potash Ltd. unsolicited over the company's Lake Wells sulfate of potash project in Western Australia in the past two months, and that the junior is discussing with them not only off-take but options for strategic investment and project development capital.

* Stainless steel producer Tsingshan Holding Group Co. Ltd. signed a deal with chemical firm Huafon Group Co. Ltd. to set up a US$3 billion coking coal joint venture in Indonesia, China Metallurgical News reported.

* PJSC Raspadskaya's first half net profit dropped 6% year on year to US$211 million, or 30.1 cents per share, from US$225 million, or 32.0 cents per share, amid lower prices. Coal output increased 31% yearly to 7.1 million tonnes due to operational successes at the Raspadskaya mine in Russia.

* Shumba Energy Ltd signed an agreement with PowerChina International Group Ltd. and Wison Group Holding Ltd. to form a joint venture, Coal Petroleum, which will work towards developing a US$1 billion coal-to-liquid plant using coal from Kibo Energy PLC's Mabesekwa project in Botswana, Miningmx reported. Shumba will have an 80% stake in the JV.

* Rio Tinto awarded NRW Holdings Ltd. a mining pre-strip contract for the Koodaideri iron ore operation in Western Australia.

* The Indian government relaxed foreign direct investment rules on four sectors, including coal mining, in which 100% foreign ownership is now allowed, Reuters reported, noting that the new policy may attract BHP Group, Glencore PLC and Peabody Energy Corp.

* The Mineral Resources and Petroleum Authority of Mongolia terminated three mining licenses for SouthGobi Resources Ltd.'s Soumber coal deposit, effective Aug. 21, due to SouthGobi Sands LLC's violations on its environmental reclamation obligations.

* Hancock Prospecting Pty. Ltd.'s Atlas Iron Ltd. extended its contract with BGC Contracting Pty Ltd. over the Mount Webber iron ore mine in Western Australia until the end of the site's operations in June 2022.

* Tata Steel Ltd. plans to float a separate company for its planned foray into merchant mining in India, Mining Weekly reported.

* The U.S. Department of the Interior signed a record of decision that allows Crystal Peak Minerals Inc. to start construction of its Sevier Lake sulfate of potash project in Utah.

* Avidian Gold Corp.'s 73%-owned High Tide Resources Corp. agreed to acquire the Goethite Bay iron ore project in Newfoundland, Canada, from Altius Minerals Corp. subsidiary Altius Resources Inc.

* Platte River Equity, also known as PRV Management LP, agreed to sell its PRV Metals LLC unit to Tinicum LP Deal terms were not disclosed.

* Improved aluminum prices have prompted Chinese smelters to restart idled capacity at their operations, Fastmarkets MB wrote, citing unnamed sources.

* The U.S. Department of Commerce extended antidumping duties on imports of lightwalled rectangular pipe and tube from China, Mexico, South Korea and Turkey, Fastmarkets MB wrote.

* Demand for steel building beams is projected to grow to almost 1.5 million tonnes by 2025, more than double against demand in 2018, Vedomosti reported, citing Evraz PLC senior vice president Alexey Ivanov.

SPECIALTY

* Ganfeng Lithium Co. Ltd. posted first half attributable net earnings of 297.2 million Chinese yuan, or 23 fen per share, dropping 59.3% from 730.2 million yuan, or 66 fen per share, a year ago.

* Administrators were appointed to Alita Resources Ltd., in a bid to restructure and subsequently recapitalize the lithium miner, which owns the Bald Hill lithium-tantalum mine in Western Australia.

* W Resources PLC began commissioning the concentrator plant at the La Parrilla tungsten-tin project in Spain, following the completion of the plant's construction.

* The Competition Commission of South Africa approved Bushveld Minerals Ltd.'s acquisition of Vanchem Vanadium Products (Pty) Ltd. without conditions.

* Lynas Corp. Ltd. achieved record fiscal 2019 production of rare earth oxides at 19,737 tonnes and record output of neodymium and praseodymium at 5,898 tonnes, while net earnings increased to A$80 million from A$53.1 million a year ago. The company said two Malaysian companies are interested in building a chemicals plant in Western Australia to support processing facilities at its planned cracking and leaching plant, The Australian Financial Review reported.

* Sheffield Resources Ltd. amended an existing 4,000-tonne-per-year zircon supply deal with CFM Minerales SA to add a further 1,000 tonnes per year of premium zircon produced from the Thunderbird mineral sands project in Western Australia.

INDUSTRY NEWS

* Federal mine safety officials are looking for information on economically and technologically feasible means to protect workers from exposure to respirable quartz, a material linked to lung disease among miners.

* The suspension orders on some miners in the Philippines that passed an audit following a 2017 crackdown on the industry have yet to be lifted, BusinessMirror's Businesswise wrote, citing an unnamed representative of one of the firms.

* Brazil national mining agency ANM will begin looking into tax information submitted by miners operating in the country to the Federal Revenue Service Agency, Valor Econômico reported. The review aims to pinpoint discrepancies that may lead to lower royalties collected by the tax agency.

* Mining ministers from Africa will gather in Perth, Western Australia, the week of Sept. 2 for the Africa Down Under conference in an effort to attract more Australian mining investment, Africa News Agency reported.

* The governments of Rwanda and Zimbabwe signed a memorandum of understanding to boost private investments in their respective mining sectors, The New Times reported.

* Ausdrill Ltd., trading as Perenti Global, booked a rise in fiscal 2019 net profit to A$181.3 million from A$59.3 million, while revenue increased to A$1.97 billion from A$1.72 billion.

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