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Liberty House to lift UK steel output to 5 million tonnes over 5 years

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Essential Metals Mining Insights November 2021

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Liberty House to lift UK steel output to 5 million tonnes over 5 years

TOP NEWS

Liberty House to lift UK steel output to 5 million tonnes over 5 years

Liberty House plans to increase its U.K. steel output to 5 million tonnes over five years, with the company weighing its options to develop new furnaces in Scotland and the Midlands to help meet the target, Reuters reported, citing Executive Chairman Sanjeev Gupta. Gupta added that due diligence on the £100 million deal for Tata Steel Ltd.'s specialty steel business should be completed by the end of February.

Turquoise Hill resumes shipments from Oyu Tolgoi

Rio Tinto-backed Turquoise Hill Resources Ltd. said concentrate shipments from its Oyu Tolgoi copper-gold mine in Mongolia have resumed. After discussions with Chinese and Mongolian authorities, Oyu Tolgoi will follow a new joint coal and concentrate crossing route at the Chinese-Mongolian border.

AngloGold Ashanti, Independence Group estimate 75% increase in Tropicana gold mine NPV

AngloGold Ashanti Ltd. and Independence Group NL are forecasting improved production outlook for their Tropicana gold mine in Western Australia of between 450,000 ounces and 490,000 ounces per annum from the second half of 2017, and more than a 75% increase in the net present value of the mine. The mine life could also potentially be extended by three years, to 2030.

DIVERSIFIED

* Cambiar Investors LLC increased its stake in BHP Billiton Group, buying an additional 4,002,420 Billiton shares valued at about US$121.6 million, The Cerbat Gem wrote, citing a filing from Cambiar. BHP Billiton accounts for about 1.8% of Cambiar's portfolio. Hedge funds and other institutional investors own 4.08% of the company's stock.

BASE METALS

* Independence Group said it has no plans to split, as the company likes being a diversified miner because it cuts exposure to a single commodity, MiningNews.net reported. "It provides a natural hedge," Managing Director Peter Bradford said.

* LME 3-Month copper prices continued on their upward trajectory through November and into December, averaging US$5,463 per tonne in November — increases of 15% month on month and 14% year over year. The dramatic step higher in prices led SNL Metals & Mining to raise the price forecasts for both 2016 and 2017 to US$4,881 per tonne and US$5,327 per tonne, respectively, up from US$4,729 per tonne and US$4,796 per tonne.

* Hammer Metals Ltd. signed an agreement to acquire Chinalco Yunnan Copper Resources Ltd.'s tenement interests in the Mount Isa district of Queensland, Australia, prospective for copper and gold, for 1.5 million Hammer shares.

* Yunnan Tin Co. Ltd.'s wholly owned subsidiary Yunnan Tin Trading Shanghai Co. Ltd. will apply for bank loans of 400 million Chinese yuan from four commercial banks.

PRECIOUS METALS

* Kingsgate Consolidated Ltd. Chairman Ross Smyth-Kirk told Fairfax Media that the Thai government's decision to close the company's Chatree gold mine sent a "horrendous" message to potential foreign investors in the country and it would take an "ironclad guarantee" that Kingsgate would be allowed to operate without interruption before the company invests in Thailand again.

* Mali's Chamber of Mines said the informal gold miners in the country could soon rival official production as demand from domestic refineries continues to grow. Reuters wrote that artisanal mines contributed a third of the 70.2 tonnes of gold that Mali exported in 2015, and the Chamber of Mines estimates that over a million artisanal miners now work at about 350 sites, producing between 10 tonnes and 15 tonnes of gold a year.

* Scout drilling and regional exploration at Condor Gold Plc's La India gold project in Nicaragua identified a rock chip sample grading 142.4 g/t of gold about 30 meters along strike from a 53.9 g/t of gold rock chip at the project's Los Limones prospect. The company has completed 1,123 meters of its planned 4,000 meters of scout drilling and assay results are expected in 2017.

* A research commissioned by South Africa's Chamber of Mines said findings by a July 2016 report from the United Nations Conference on Trade and Development, or UNCTAD, are invalid and said misinvoicing of gold exports in country during 2000 and 2014 amounted to a loss of US$19.5 billion instead of the US$78.2 billion estimated in the UNCTAD report, fin24 wrote.

* Production at Hochschild Mining Plc's Pallancata silver-gold mine in Peru has temporarily stopped due to a road blockade by members of a local community demanding the renegotiation of existing agreements for land easements. The company said its production and cost guidance for 2016 will not be affected.

* Petropavlovsk PLC cut its gold production forecast for 2016 to between 415,000 ounces and 430,000 ounces at a preliminary total cash cost of about US$700 per ounce, mainly as a result of disruptions at the Andreevskaya deposit of its Pioneer mine in Russia. The flooding had led the company to forecast production at the lower end of its original guidance of about 460,000 ounces to 500,000 ounces.

* Lundin Gold Inc. signed an exploitation agreement for its flagship Fruta del Norte gold project in Ecuador, giving it the right to develop and produce gold from the project for 25 years. The agreement also includes advance royalty payments totaling US$65 million to the government of Ecuador and a royalty of 5% of net smelter revenues from production.

* Troy Resources Ltd. lowered its gold production guidance for 2016 to between 63,000 ounces and 65,000 ounces and said it expects higher unit costs due to an increase in unstable ground conditions around the southern wall of the Smarts pit at its Karouni gold project in Guyana.

* Kin Mining NL released the results of a pre-feasibility study that estimates the Leonora gold project in Western Australia will have a net present value of A$71 million before tax. The project is expected to have an initial mine life of 6.5 years, producing 309,000 ounces of gold during that time.

* Gladiator Resources Ltd. is selling all of its interest in its Uruguayan subsidiaries to Metamila Ltd. for about A$1.6 million.

* Panoramic Resources Ltd.'s gold spinoff, Horizon Gold Ltd., did not hit the boards of the ASX on Dec. 14 as planned.

* CME Group Inc., Intercontinental Exchange Inc. and the London Metal Exchange are planning new contracts to compete with the London Bullion Market Association as it unveils trade reporting for its members and a new trading platform in the first half of next year, Bloomberg News reported.

* Kingsrose Mining Ltd.'s board appointed Michael Ryan and Ian Francis of FTI Consulting as voluntary administrators.

* Sibanye Gold Ltd. is expected to launch its West Rand Tailings Retreatment project in the next six months, Mining Weekly wrote. The project aims to recover 11 million ounces of gold and 170 million pounds of uranium from 1.3 billion tonnes of tailings and could potentially generate thousands of jobs.

* Precipitate Gold Corp. secured a 100% interest in the Juan de Herrera gold project in the Dominican Republic after making a final option payment totaling C$75,000 and 1.0 million common shares to the vendor, 0945044 BC Ltd.

* An Agnico Eagle Mines Ltd. unit agreed to acquire Sonoro Metals Corp.'s Chipriona gold project in Mexico for C$4 million plus a 1% net smelter return royalty.

BULK COMMODITIES

* BHP Billiton Group and Vale SA joint venture Samarco Mineração SA presented a proposal to local authorities suggesting the use of a previous excavation site known as Cava de Alegria Sul to store iron ore mining tailings as part of its efforts to obtain the necessary licenses to resume operations at the Samarco mine in Brazil, daily Valor Econômico reported.

* Coal India Ltd. said output in November rose by 5.3% year on year, to 50 million tonnes. According to Mint, the increasing power requirement as winter sets in helped boost coal demand as well as coal off-take, which rebounded 6.2%, to 48.1 million tonnes in the same month.

* L&M Coal Holdings Ltd. filed a US$40 million claim against Bathurst Resources Ltd. related to a 2010 sale and purchase agreement. Bathurst said it will defend any legal action brought by L&M Coal.

* Chilean family business group Grupo Errázuriz denied the charges filed by Sociedad Quimica y Minera de Chile SA over alleged illegal extractions of water at the Llamara salt flat in northern Chile. According to SQM, this would affect the operations of its Pampa Hermosa project, daily Pulso reported.

* Strike Resources Ltd. entered into a deal with a subsidiary of Zhongrong Xinda Group Co. Ltd. to sell its Apurimac and Cusco iron ore projects in Peru for US$10 million.

* The International Centre for Settlement of Investment Disputes ordered Venezuela to pay Tenaris SA US$162 million for expropriating its investments in Tubos de Acero de Venezuela SA and Complejo Siderurgico de Guayana, Reuters reported.

* Indonesian coal miner Dian Swastatika Sentosa, a unit of Sinar Mas Group, will spend US$150 million in CapEx in 2017 to expand coal-fired power plants, the Jakarta Globe reported.

* North China's Henan province plans to shut down 158 coal mines within the next two years, cutting 39.63 million tonnes of capacity, Xinhua News Agency reported, citing data from the province's development and reform commission.

SPECIALTY

* Orocobre Ltd. plans to expand the lithium carbonate equivalent production capacity at its Olaroz facility in Argentina to 35,000 tonnes per annum, from the current 17,500 tonnes per annum, at a cost of US$190 million. The commissioning of the additional capacity is targeted for late 2018/early 2019.

* Canada Carbon Inc. reported a 379% increase in the new pit-constrained graphite resources at its flagship Miller graphite project in Quebec. The updated resource estimate includes an indicated resource of 2.65 million tonnes at an average grade of 0.8% graphite, and an inferred resource of 7.6 million tonnes with an average grade of 0.77% graphite.

* Bass Metals Ltd. negotiated a reduction in the price for buying the Graphmada graphite mine in Madagascar from StratMin Global Resources Plc and is now required to pay just A$3.1 million compared to A$13 million previously.

* PJSC ALROSA repaid a US$370 million bank loan to JSC UniCredit Bank received in April 2014, bringing the company's debt down to US$2.3 billion.

INDUSTRY NEWS

* The Philippine government canceled the environmental permits of three mines, two of which are nickel producers, as the new administration continues to review permits granted by previous governments, Reuters reported citing Environment and Natural Resources Secretary Regina Lopez.

* Nathan Chishimba, president of Zambia's Chamber of Mines, said the country needs a more competitive tax scheme to lure investments in Zambia's mining industry, Mining Weekly reported.

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