trending Market Intelligence /marketintelligence/en/news-insights/trending/ZHki9g8JRuV1ZkJNyuRm7Q2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Indonesian group eyes US$2B bid for Newmont unit stake; Tata in talks for ThyssenKrupp unit stake; China fights back with its own steel duties

Blog

Essential Metals & Mining Insights - January 2021

Industry Top Trends 2021: Metals and Mining

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

Essential Metals & Mining Insights - September 2020


Indonesian group eyes US$2B bid for Newmont unit stake; Tata in talks for ThyssenKrupp unit stake; China fights back with its own steel duties

TOP NEWS

Indonesianconsortium may launch US$2B bid for Newmont unit next week

People with knowledge of the matter said an Indonesianconsortium, led by veteran investment banker Agus Projosasmito, is preparingto offer about US$2 billion for an 80% stake in 's unitover the next week — at the earliest. According to Bloomberg News, the group isset to borrow about US$1 billion from banks including BNP Paribas SA, MalayanBanking Bhd. and Societe Generale SA, as well as state-owned lenders.

TataSteel in talks to buy stake in ThyssenKrupp unit

Tata SteelLtd. is looking to takea stake in ThyssenKrupp AG'sEuropean steel unit and the parties are in advanced talks over the deal,Reuters wrote citing German business paper RheinischePost. Citing government sources in Berlin, the Rheinische Post wrote that several scenarios are being considered,including a joint venture, but a representative for ThyssenKrupp declined tocomment on the report.

Chinaslaps anti-dumping duties as high as 46.3% on certain steel imports

China, which is often accused of flooding global marketswith cheap steel, has slappedits own anti-dumping duties of as much as 46.3% on electric steel productsimported from Japan, South Korea and the EU, Reuters wrote citing China'sMinistry of Commerce. The country imports small amounts ofhigh-end steel products.

BASE METALS

* People with knowledge of the matter said an Indonesianconsortium, led by veteran investment banker Agus Projosasmito, is preparingto offer about US$2 billion for an 80% stake in Newmont Mining Corp.'s unit over thenext week — at the earliest. According to Bloomberg News, the group is set toborrow about US$1 billion from banks including BNP Paribas SA, Malayan BankingBhd. and Societe Generale SA, as well as state-owned lenders.

* Japan's SumitomoMetal Mining Co. Ltd. expects to produce 445,200 tonnes ofelectrolytic copper in the current financial year, 6.1% morethan that produced in the fiscal year ended March 31, when output was affectedby a 25-day maintenance at one of the company's facilities, Reuters wrote.

* MitsuiMining & Smelting Co. Ltd. — said to be Japan's biggest zincsmelter — plans to produce12.6% more zinc in April to September than it did in the same period of thepreceding year, pushing its target output for the first half of its fiscal yearto 117,700 tonnes of zinc, Reuters reported.

* AlaraResources Ltd. said a feasibility study supported the financialviability of the AlHadeetha copper-gold project in Oman, as the base case scenariopegged net presentvalue at A$37.8 million, and an internal rate of return of 21%. The projectwill generate revenue of A$586.5 million over 10 years of mine life with anestimated EBITDA of A$191.9 million.

* ShenzhenZhongjin Lingnan Nonfemet Co. Ltd.'s net profit attributable toshareholders for 2015 dropped57.26% year over year to 200.9 million Chinese yuan from the 470.1million yuan recorded a year ago. Operating income declined 31.07% year overyear to 16.94 billion yuan, among which 6.85 billion yuan was from the domesticmarket and the remaining came from overseas markets. The company said thatreduced operational costs partially offset lower prices of commodities andnonferrous metals in the reporting period.

* Fitch Ratings downgradedCompañía Minera Milpo SAA'slong-term foreign and local currency issuer default ratings and US$350 millionunsecured notes to BBB- from BBB, with outlook revised to negative from stable.These actions followed the downgrade to BBB- and negative outlook of Milpo'sultimate parent, Votorantim SA.

* VedantaResources Plc entered into irrevocable arrangements with J.P.Morgan Securities plc to buy back up to US$148.6 million, or up to 20%, of theUS$743 million outstanding principal amount of the 6.75% bonds due 2016 of thecompany, along with up to US$200 million of the US$582 million outstandingprincipal amount of the 5.50% guaranteed convertible bonds due 2016 ofVedanta Resources Jersey Ltd.

* WesternAreas Ltd. decided to undertake a hefty A$70 million capitalraising at a time most miners would struggle to raise even a measly million.But the Australian nickel producer has proven investor confidence is strongdespite the nickel price sitting at a decade low, closing A$60 millionplacement component of the fundraising substantiallyoversubscribed.

* Workers at Freeport-McMoRanInc.'s CerroVerde copper mine in Peru are going on a two-daystrike on April 8. The workers are claiming that their profit-sharing bonusthis year has nearly disappeared, with each worker to receive an average of 483Peruvian soles this year from the 30,000 soles in 2015, Reuters reported,citing union leader Zenon Mujica.

* ChinaNonferrous Metals Co. Ltd.'s loss attributable to owners in 2015 widenedyear over year to 580.6 million Chinese yuan from 176.1 million yuan, as thecompany booked lower revenue of 91.0 million yuan and higher impairment lossesand inventory writedown of 677.6 million yuan.

* The loss attributable to owners of in 2015 sankdeeper to 976.3 million yuan from 95.6 million yuan. Revenue, meanwhile,slipped year over year to 39.36 billion yuan from 42.81 billion yuan.

* Shares in PJSCMMC Norilsk Nickel plunged by nearly 3% March 31, after mediareports suggested the Russian base metals producer was its generous dividendpolicy in favor of a market-linked approach that could cut payouts in times oflow commodity prices. According to the report, the company was considering amove to a more "market-based" dividend policy as a reaction to thesignificant fall in commodity prices since the policy was agreed in 2013.

* Yamana GoldInc. entered into a copper purchase agreement with concerning theChapada mine inBrazil, pursuant to which Altius willpay Yamana total advanced payments of US$60 million in cashconsideration and 400,000 Altius warrants.

* CodelcoChairman Oscar Landerretche said the Chilean state-owned copper mining majorwill have to face openingup part of the company at some point to the stock exchange, not necessarilythe local bourse, to finance its internationalization, Business News Americasreported.

* An updated preliminary feasibility study on 's zinc-lead-silver project in Canada's Northwest Territories indicated a post-tax net present value, using an 8%discount, of C$302 million, with an internal rate of return of 26%, based onbase case metal price forecasts of US$1.00 per pound for both zinc and lead,and US$19.00 per ounce of silver, for the life-of-mine production.

* Clive Palmer said he does not want a key license requiredto legally operate his embattled nickel refinery in Queensland, Australia,igniting concerns that the plant will remainshut, The Australian reported.

PRECIOUS METALS

* Hunan GoldCorp. Ltd. produced 19,647 kilograms of gold for full-year 2015,up 14.27% from theyear before.

* ClassicMinerals Ltd. entered an agreement to its mining interest at theDoherty's goldproject to Perth-based AcceleratedMining Pty. Ltd. for a total consideration of A$4 million. Bysigning the agreement, Classic Minerals granted Accelerated Mining the right toexplore, mine, process and sell the gold ore from the project, subject to a7.5% net smelter royalty to the seller on ore mined by the buyer.

* Real GoldMining Ltd. swungto a profit attributable to owners of the company in 2015, to 48.4 millionChinese yuan from the 601.9 million yuan loss the previous year. Revenueincreased to 384.6 million yuan from 186.5 million yuan, while cost of salesdecreased to 396.0 million yuan from 451.7 million yuan.

* Giyani GoldCorp. and Crystal Capital Wealth Corp. the previously announcedindicative letter of intent agreement as it has expired. Under the deal, GiyaniGold planned to acquire the Canadian financial services firm by means of areverse takeover.

* Following the announcement by that it isproceeding with the phase one expansion of its Tasiast gold mine in Mauritania, TD Securitiesanalyst Greg Barnes upgradedthe gold major to "buy" from "hold," the Financial Post reported. According to Barnes,the company is managing both project and balance sheet risk via a phasedapproach, while also optimizing Tasiast.

* Greek Environment and Energy Minister Panos Skourletissaid Eldorado Gold Corp.needs to reach a "compromise"with local communities and the government to proceed with its contentious goldproject in the country, Reuters reported.

* Due to strong demand, Silver Wheaton Corp. increased the size of its recently announcedunderwritten public offering and now plans to raise about US$550 million.

* MandalayResources Corp.'s Chilean subsidiary repurchased the 2%net smelter return royalty on silver and gold production from the mine held by asubsidiary of Coeur Mining Inc.As a result of the transaction, the royalty has been canceled.

* SilverStandard Resources Inc. signed an option agreement to the gold project inCalifornia.

BULK COMMODITIES

* Tata SteelLtd. is looking to takea stake in ThyssenKrupp AG'sEuropean steel unit and the parties are in advanced talks over the deal,Reuters wrote citing German business paper RheinischePost. Citing government sources in Berlin, the Rheinische Post wrote that several scenarios are being considered,including a joint venture, but a representative for ThyssenKrupp declined tocomment on the report.

* China, which is often accused of flooding global marketswith cheap steel, has slappedits own anti-dumping duties of as much as 46.3% on electric steel productsimported from Japan, South Korea and the EU, Reuters wrote citing China'sMinistry of Commerce. The country imports small amounts ofhigh-end steel products.

* The New South Wales Planning Assessment Commission'sreview panel rejected theapplication for a five-year extension of the operations of the colliery onthe back of concerns over an endangered giant dragonfly species, among others, The Sydney Morning Herald wrote. TheRussel Vale mine has been closed since last year and has been seeking theextension to mine a further 4.7 million tonnes of coal.

* Adding to the global oversupply, produced a record 536million tonnes of coal in the year ended March 31 — an 8.5% increase fromits output in the preceding year, Bloomberg News wrote citing India's coalsecretary, Anil Swarup.

* Angang SteelCo. Ltd. warned that a new "ice age" has set in for theglobal steel industry, triggered by the slowdown in Chinese economic growth andits excess steel capacity in 2015, Bloomberg News wrote.Angang — which posted a 2015 net loss of 4.59 billion Chinese yuan — said theindustry is now facing severe challenges, fierce competition and difficultsurvival conditions.

* Mechel OAOagreed to renew a dealto supply nearly 1 million tonnes of coking coal over the next year to China'sBaosteel Resources, a subsidiary of BaosteelGroup Corp. Under the deal, Mechel will supply 960,000 tonnes ofpremium-grade coking coal from its Neryungrinsky mine in southern Yakutia, inRussia's Far East between April 2016 and March 2017.

* YancoalAustralia Ltd. said it has closed a financing agreement to secure up to US$950million in new debt through the issuance of nine-year secure debt bonds by anewly established Yancoal subsidiary — WataganMining Co. Pty. Ltd. — to Industrial Bank Co. Ltd., BOCI AsiaFinancial Products Ltd. and United NSW Energy Ltd.

* Japan's aluminum premiums for April to June shipments wereset at US$115 to US$117 per tonne — upby about 5% to 6% from premiums in the preceding quarter due to lower localinventories, Reuters wrote citing five sources directly involved in the talks.

* Two anti-mining activists chainedthemselves to conveyors at WhitehavenCoal Ltd.'s Narrabricoal mine in New South Wales, Australian Mining reported. A spokesperson forthe coal miner said that the protestors' action has "no effect" onthe company's operations.

* Standard Bank commodities analyst, Melinda Moore, saidthat the resumption of SamarcoMineração SA's operations would be decisivein determining iron ore price projections, ValorEconômico reported. The kickoff of ValeSA's S11Diron ore project would also be important, the analyst added.

* The Australian FinancialReview wrote that Samarco Mineração, citing data from 84 monitoring points,claims that the condition of the Doce River was "verysimilar" to that before the bursting of the Fundão dam in November2015.

* FlindersMines Ltd. Chairman Robert Kennedy urged shareholders notto accept Todd Corp. Ltd.'sA$38 million offer, saying that the offer undervalues the company by at leastA$26 million, The Australian FinancialReview reported.

* MMXMineração e Metálicos SA recorded a netincome of 113.7 million Brazilian reais in the fourth quarter of 2015,compared with the net loss of 171.9 million reais reported in the same periodthe previous year, mainly due to adjustments made to its liabilities as part ofits bankruptcy protection plan, ValorEconômico reported.

* Kiu HungInternational Holdings Ltd. saw its loss attributable to equityholders in 2015 improveto HK$89.7 million, or 2.95 Hong Kong cents per share, from the HK$509.6million, or 31.58 Hong Kong cents per share, loss recorded a year ago. Nodividend was declared for the year.

* Refuting recent media reports, Vale said its partnerMitsui & Co. Ltd.is not consideringrevising terms of a coal joint venture in Mozambique.

* MetallurgicalCorp. of China Ltd. Vice President Xiao Xuewen said the companywill restrain investmentsin mining operations and plans to retreat from its iron ore business.

* The Bolivian government has inked a 30-month, US$451million contract to buildthe El Mutuniron and steel project in the country with Sinosteel Equipment, Business NewsAmericas reported.

* PeabodyEnergy Corp. said it extendedthe closing deadline for its proposed sale of assets in New Mexico and Coloradoto Bowie Resource Partners LLCto allow more time to explore alternative payment options.

* Continuing a contraction at the country's largest coalmines, Arch Coal Inc.announced that it is reducingstaff at its BlackThunder mine in Wyoming by about 15%, citing "persistentweakness in the thermal coal" market.

* Russia imposedduties on Ukrainian rods as OJSCNovolipetsk Steel Chairman Vladimir Lisin was unhappy aboutcompetition, Vedomosti reported. TheEurasian Economic Commission decided to impose anti-dumping duties on Ukrainianrods at a rate of 10.11% for five years. The decision will come into force in45 days. For ArcelorMittalunit ArcelorMittal Kryviy Rih, it will be 9.32% only.

SPECIALTY

* Seven years after the program started, 's multibillion dollarproject to expand the Jwanengdiamond mine in Botswana finally encounteredits first gem-bearing ore, Bloomberg News wrote citing general manager AlbertMilton. According to Milton, the expansion will eventually tap an estimated 110million carats through an area called Cut 8, which will become the mine's mainsource of gems in 2018.

* The Australian government signed a nuclear cooperationagreement with Ukraine, enabling Australia to export uranium to Ukraine, Mining Weekly wrote.

* StratMinGlobal Resources Plc entered into heads of terms with , in which thelatter will acquirethe 93.75% stake of GraphmadaMauritius that it does not already own for a staged cash, equityand royalty consideration of up to A$15.3 million.

* Ding HeMining Holdings Ltd.'s loss attributable to owners of the companyin 2015 improvedto HK$111.0 million from the HK$279.8 million loss recorded the previous yearas the company trimmed its other operating expenses to HK$13.9 million fromHK$243.8 million.

* Lithium concentrate production at the project, a jointventure between Galaxy ResourcesLtd. and GeneralMining Corp. Ltd., in Western Australia. The Mount Cattlinprocessing facility is ramping up to a throughput rate of 800,000 tonnes perannum by the end of June.

* LithiumAustralia NL withdrewfrom the nonbinding memorandum of understanding with over theCinoveclithium-tin project in the Czech Republic.

INDUSTRY NEWS

* Reuters wrote that theZambian government introduced equipment, which will enable any government agencyto independently verify the quality of mineral exports, easing the country'sdependence on exporters' self-declaration. The new equipment will also be usedto assess the quality and quantity of minerals being used from one mine toanother.

* Charles Zulu, Zambia's deputy energy minister, said mostmining companies in the country are disputing an increase in electricity pricesand have not paid the tariffs that were imposed in January, Bloomberg News reported.According to Zulu, the government is in talks with miner operators over thetariff.

* Despite the continued decline of commodity pricesglobally, top executives still appear to be taking home .Although the industry is seeing a decline in executive salaries, many stillquestion whether these numbers are acceptable in the current market.

* The public security bureau in Kunming in China's Yunnanprovince determined that the Fanya Metals Exchange, which closed in 2015 amidinvestor claims that it was running a Ponzi scheme involving billions ofdollars, illegallyused the savings held by members of the public, Reuters reported.

* An exclusive report by SNL Metals & Mining Researchshowed that in 2015, only four of the top 10 mining companies by marketcapitalization beattheir S&P Capital IQ calendar-year earnings estimates.

* Hacking now qualifies as a for international resourcecompanies, Ernst & Young concluded in its report detailing business risksfor resource companies in 2015-2016.

* The respective governments of Burkina Faso and Guinea saidmining permits in the African countries awarded in recent years that are notbeing used for exploration or production should be made available to othercompanies via re-auctioning, Reuters reported.

* Goa Chief Minister Laxmikant Parsekar said the governmentof the Indian state has decidedto auction mining sites in Goa in the future instead of leasing them out, thePress Trust of India reported.

The Daily Dose isupdated as of 7 a.m. New York time, and scans news sources published inChinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai andUkrainian. Some external links may require a subscription.