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Chinalco kicks off US$1.3B expansion at Toromocho copper mine in Peru

TOP NEWS

Chinalco kicks off US$1.3B expansion at Toromocho copper mine in Peru

Aluminum Corp. of China started the expansion work at its Toromocho mine in central Peru to expand the copper concentrate processing capacity by 45% by 2020, Reuters reported. The US$1.3 billion investment for the project's second phase will increase the processing capacity to 157,000 tonnes per day and annual refined copper output to 300,000 tonnes, Xinhua News Agency reported.

Guandong Rising mulling IPO of gold-copper miner PanAust

Guangdong Rising Assets Management is said to be considering a potential IPO of Australian gold-copper miner PanAust Ltd., which the former purchased a few years ago in a A$1.2 billion listed takeover battle, The Australian reported. The potential listing price may be less than the 2015 acquisition price as both the PanAust-held Phu Kham copper-gold mine and Ban Houayxai gold-silver mines are winding down their respective production lives.

Police raid Kobe Steel's Tokyo headquarters

The headquarters of Kobe Steel Ltd. were raided by the Tokyo District Public Prosecutors Office and the Metropolitan Police Department to collect data related to the data tampering scandal, Reuters reported.

DIVERSIFIED

* Cia. de Minas Buenaventura SAA CEO Victor Gobitz said the company this year will focus its efforts on the expansion of its El Brocal copper mine and Uchucchacua silver project, while it waits for two of its most ambitious projects, the San Gabriel gold and the Trapiche copper to mature. Meanwhile, the company expects to complete the expansion of its Marcapunta mine in the fourth quarter. Gobitz added that Buenaventura is very interested in jointly developing Southern Copper Corp.'s US$2 billion Michiquillay copper project in Peru, however, it will be up to Southern Copper to decide on this proposal, daily El Comercio reported.

* BHP Billiton Group's planned exit from its U.S. shale business could take longer than expected, with no deal expected until late this year or early 2019 due to the involvement of a large number of interested parties, Reuters reported, citing two people familiar with the negotiations.

BASE METALS

* Indonesia's state-owned PT Indonesia Asahan Aluminium (Persero) secured financing commitments for the acquisition of Rio Tinto's stake in the Grasberg copper-gold mine, The Australian Financial Review reported. Rio Tinto is entitled to 40% of Grasberg's copper production above specific levels until 2021 and 40% of all copper production after 2023.

* The No. 1 Workers Union of BHP's Escondida copper mine in Chile is ready to begin a new strike if necessary, spokesman Carlos Allendes said after meeting with Chile's Labor Minister on June 4, Nicolás Monckeberg. The talks take place after a disagreement between the union and the mine led to a 44-day strike in the first-quarter of 2017, daily Diario Financiero reported. The new negotiations center around a contract proposal that includes a one-time bonus of about US$34,000 per worker, and a 5% wage increase.

* Hindustan Copper Ltd.'s net income for the fourth fiscal quarter, ended March 31, dropped to 219.2 million Indian rupees, compared to 407.1 million rupees a year ago. For the full year, net income increased to 796.0 million rupees, from 619.4 million rupees in the prior year.

* Arc Minerals Ltd. further increased its ownership in Zamsort Ltd. to 55% by acquiring a 6% interest from Terra Metals Ltd. Zamsort is developing a copper-cobalt project in north-west Zambia.

* Euro Sun Mining Inc. amended its portion of the joint proposal with Lundin Mining Corp. for the acquisition of Nevsun Resources Ltd. to 50% cash and 50% stock. The proposed offer now comprises C$5 per share for Nevsun's entire stock and includes C$150 million in cash from Euro Sun and C$600 million in cash from Lundin along with C$150 million of Euro Sun stock and C$600 million in Lundin stock.

* Silver Bull Resources Inc. granted a South32 Ltd. unit the option to acquire a 70% stake in the former's Sierra Mojada zinc project in Mexico for US$100 million and form a 70/30 joint venture over the property. The transaction will see the South32 unit subscribing for 70% of the shares of Silver Bull's Minera Metalin S.A. de C.V., which holds the Sierra Mojada claims.

* First Cobalt Corp. completed the acquisition of US Cobalt Inc. The latter will become a First Cobalt unit and will be delisted.

* Two miners were killed in a rockfall incident at an abandoned Moroccan lead mine, Reuters wrote, citing state news agency MAP.

PRECIOUS METALS

* Petropavlovsk PLC asked regulators to decide if a group of dissident shareholders holding over 30% of the miner is acting in a concerted effort to seize control of the company, the Financial Times reported, citing sources familiar with the matter. If the U.K. Takeover Panel decides the investors are in collusion in seeking the ouster of the entire Petropavlovsk board, it would effectively cap the group's ability to acquire additional shares, unless it makes a proposal to take over the miner.

* Sunvest Minerals Corp. inked a letter of intent with IDM Mining Ltd., under which the latter will assist the company with technical and geological expertise, as well as logistical and community guidance for the Clone gold property in British Columbia.

* Once the undisputed world's largest gold producer, Toronto-based Barrick Gold Corp. barely managed to hold on to the title in 2017; its attributable output of 5.3 million ounces for the year was a mere 57,000 ounces over that of second-place Newmont Mining Corp. and a far cry from the more than 8 Moz of gold Barrick produced in 2007, the Metals and Mining Research team at S&P Global Market Intelligence reported.

* The reported all-in sustaining costs of the largest gold producers remained largely the same, at a weighted average of US$899/oz in the first quarter, a small increase compared with the same companies' weighted average in the previous quarter, the Metals and Mining Research team at S&P Global Market Intelligence reported.

* Pan American Silver Corp. said that the security situation on the access roads to its Dolores silver mine in Mexico improved following increased patrol and enforcement by the country's authorities. As a result, road transport of diesel fuel, cement and other supplies to the mine resumed.

* Diatreme Resources Ltd. and Superior Resources Ltd. agreed to vend their respective interests in the Tick Hill gold joint venture in Queensland, Australia, into an upcoming IPO by Carnaby Resources Ltd. on the ASX.

* Metminco Ltd. has started a 1,500-meter diamond drilling at its Tesorito gold prospect in Colombia's Quinchia district. The program is designed to confirm and expand the gold mineral system previously intersected by a previous operator.

* Five illegal miners in Indonesia were killed in a gold mine collapse, Reuters wrote, citing the country's Disaster Mitigation Agency. A sixth miner remains unaccounted for.

BULK COMMODITIES

* Puls Biznesu reported that imports of steel to Poland are growing rapidly and may accelerate as more goods are diverted from America to Poland and Europe.

* Kommersant reported that United Co. Rusal PLC sold in May almost all its accumulated aluminum in warehouses. According to Russian Railways, Rusal's exports, which collapsed by 70% in April, almost returned to the usual level of 197,000 tonnes in May.

* Aleris Corp.'s Aleris International Inc. unit launched a private offering of US$400 million senior secured junior priority notes due 2023, subject to market and other conditions.

* Outokumpu Oyj is offering €250 million senior secured notes due 2024 to fund the voluntary redemption of the company's fixed rate notes due 2021 announced May 9.

* China plans to cancel the anti-dumping duties on South Korean steel maker POSCO's electrical steel after the company agreed to price remedies, Reuters reported.

* Altona Energy PLC signed a nonbinding memorandum of understanding with GCAT Energy Group Inc., which owns the license to use a patented pyrolysis technology. The pyrolysis technology converts carbon matter into a variety of outputs including syngas, which can be used to generate electricity, carbon black, naptha and diesel. Altona plans to use the technology in other specific projects including its Australian coal project.

* Vedanta Resources PLC unit Vedanta Ltd. executed an approved resolution plan for the acquisition of a 90% stake in debt-laden steelmaker Electrosteel Steels Ltd. The company deposited an upfront 53.20 billion Indian rupees in escrow in connection with the transaction.

* Institutional investors with US$28 trillion in assets under management urged leaders of the world's major industrial nations to "phase out thermal coal power worldwide by set deadlines." "The global shift to clean energy is underway, but much more needs to be done by governments," a group of more than 300 investors wrote in advance of the G-7 summit in Canada on June 8-9.

* The U.S. Treasury Department further extended the deadline for investors to divest stakes in sanctioned Russian company En+ Group and its unit EuroSibEnergo to Oct. 23, Reuters reported.

* EU Trade Commissioner Cecilia Malmstrom said the bloc could move to impose preliminary measures to safeguard its steel and aluminum sectors by July, although a full investigation will take about nine months, Reuters reported.

* Mexico said it would take the U.S. to the World Trade Organization to settle a dispute over steel and aluminum tariffs, joining the EU in seeking the trade body's involvement against the measures, Reuters reported.

SPECIALTY

* Vietnamese Prime Minister Nguyen Xuan Phuc said he hopes the country can use its about 20 million tonnes of rare earth reserves, which he said are the world's third-largest, in building new energy technologies, Reuters reported.

* Northern Graphite Corp. inked a memorandum of understanding with a European commodity trader to sell 100% of the projected output from the Ontario-based Bissett Creek graphite project in China.

INDUSTRY NEWS

* The Australian Bureau of Statistics' latest Business Indicators data showed that the country's resources sector recorded gross operating profits of A$30.31 billion in the March quarter, up from A$28.65 billion in the previous quarter and topped a record A$28.92 billion set in March last year, The Australian reported.

* China warned the U.S. that any trade deals between the two countries will be invalid if the U.S. implements tariffs and other trade measures, Xinhua News Agency reported.

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