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China Baowu joins decarbonization alliance; Rio Tinto invests in battery startup

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Major Copper Discoveries

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Japan M&A By the Numbers: Q4 2023

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Infographic: The Big Picture 2024 – Energy Transition Outlook

Case Study

An Oil and Gas Company's Roadmap for Strategic Insights in a Quickly Evolving Regulatory Landscape


China Baowu joins decarbonization alliance; Rio Tinto invests in battery startup

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China's special climate envoy, Xie Zhenhua, speaks during a joint China and U.S. statement on a declaration enhancing climate action in the 2020s on November 10, 2021, in Glasgow, Scotland.
Source: Jeff J Mitchell/Getty Images News via Getty Images

THE BIG STORY

Leading metal producers are striving to ensure sustainability while working on the reduction of greenhouse gas emissions, through partnerships and investments. China Baowu Steel Group Corporation Ltd. and its partners launched the Global Low-Carbon Metallurgical Innovation Alliance that aims to promote decarbonization technologies in the industry.

Baowu aims to slash emissions by 30% by 2035 and achieve carbon neutrality by 2050. To reach its goals, the company will reportedly pursue the use of hydrogen-enriched carbon recycling blast furnaces, green hydrogen-fueled metallurgy, large-scale use of recycled steel, and carbon capture and utilization, among other options.

Meanwhile, Rio Tinto Group outlined plans to invest US$87 million to increase production of low-carbon aluminum at its AP60 smelter in Quebec by 45% to 86,500 tonnes. Rio Tinto will also invest in battery technology and manufacturing company Inobat Auto J.SA to help complete a pilot battery line and a research and development center in Slovakia.

SPOTLIGHT

Glencore's strategy shift opens door for Evolution's acquisition of Ernest Henry

Evolution Mining Ltd. took advantage of a "small window of opportunity" to purchase Glencore PLC's majority stake in the Ernest Henry copper-gold mine in Queensland, Australia, to seize full control of the asset. Under the deal, Evolution purchased Glencore's 70% stake in the Ernest Henry joint venture for A$1 billion. The mining company will utilize existing funds, plus the proceeds from a US$200 million private placement, to finance the acquisition.

Rio Tinto takes full ownership of Diavik diamond mine in Canada

Rio Tinto Group took full ownership of the Diavik diamond mine in Canada's Northwest Territories by acquiring the 40% stake held by Dominion Diamond Mines in a transaction approved by the Court of Queen's Bench of Alberta.

West Australian mining skills shortage to peak in 2023 amid ongoing tightness

A skills shortage in the world's biggest iron ore and lithium producing jurisdiction, Western Australia, is forecast to peak in 2023 and remain high beyond 2025, according to a local labor market analyst.

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RESEARCH

Copper CBS November 2021 – Copper price firms amid tight inventories

IM November 2021 – Fundraising weighed down by low base/other metals financing

IM November 2021 – Exploration index rises as 3 of 4 metrics increase

MARKETS AND FINANCE

Nutrien to redeem US$1.8B in notes, purchase up to US$300M in debt

Newmont to redeem US$492.1M in 3.500% senior notes due 2022

Warrior Met Coal to offer US$350M in 2028 senior secured notes

Thyssenkrupp pursues IPO for €5B hydrogen unit Uhde – Bloomberg

POLICY AND REGULATION

US, Japan to start talks over steel, aluminum tariffs

Western Australia introduces Aboriginal Cultural Heritage Bill 2021

US flags insufficient transformer steel output as threat to national security

PROJECTS AND INFRASTRUCTURE

Nucor to add blast, prime line at US$1.7B steel mill project in Kentucky

BCI Minerals completes A$1.2B funding package for Mardie development

Uralkali to power potash production with solar

OPERATIONS AND STRATEGY

Osisko Mining nearly doubles exploration budget, becomes top 10 explorer in 2021

Ivanhoe lifts FY'21 production guidance at Congo copper operation

Heavy rains disrupt Teck's British Columbia logistics chain