Glencore, Evolution in A$1B mine deal; rains disrupt Teck's logistics chain

TOP NEWS IN METALS & MINING

* Glencore PLC agreed to sell its Ernest Henry copper-gold mine in Queensland, Australia, to Evolution Mining Ltd. for A$1 billion, Dow Jones Newswires reported. To partly fund the acquisition, Evolution priced a US$200 million U.S. private placement at a fixed coupon of 3.06% maturing in 2031.

* Teck Resources Ltd. said the logistics chain between West Coast terminals and its British Columbia operations was temporarily disrupted due to heavy rain, flooding and mudslides. Teck said production at its operations has not yet been affected but flagged that any potential effect on fourth-quarter sales will be dependent on the duration of the disruption.

➤ COP26 pledge to zero out vehicle emissions will be a bumpy road

Phasing out fossil-fuel-powered car and van sales by 2040, as pledged by dozens of nations at the COP26 climate summit, will require a steep increase in lithium-ion battery production and mining of battery metals.

➤ Strandline eyes agreement by end-2021 as Tanzania moves on from Barrick dispute

Strandline Resources Ltd. hopes a framework agreement for its mineral sands projects will build momentum for its peers as Tanzania's government looks to rebuild trust following its now-resolved dispute with Barrick Gold Corp.

➤ Western US coal production surged in Q3 to meet increased demand

U.S. coal producers have seen demand and prices lift off of the pandemic-driven lows of 2020, and some Western U.S. producers sharply increased volumes in the third quarter to meet demand.

BASE METALS

* KAZ Minerals Ltd. produced 73,600 tonnes of copper in the third quarter, declining from 76,200 tonnes a year ago. Sales were below production levels at 62,400 tonnes, compared with 81,400 tonnes in 2020, due to border restrictions.

* Copper miner KGHM Polska Miedz SA's third-quarter attributable profit climbed year over year to 1.04 billion Polish zlotys from 472 million zlotys as revenues from customer contracts increased to 7.23 billion zlotys from 5.63 billion zlotys.

* KGHM flagged additional costs of 4 billion zlotys from 2021 through 2030 related to the implementation of the EU's climate goals. KGHM's management board adopted a climate policy outlining the company's goal to cut Scope 1 and Scope 2 emissions by 30% by 2030 and achieve carbon neutrality by 2050.

* The cobalt price has had strong momentum since the beginning of 2021, with the London Metal Exchange cash price increasing 52% by Aug. 31. S&P Global Market Intelligence's Metals and Mining Research team forecasts a cobalt price rise to US$21.96 per pound by 2025, a profitable price for most cobalt miners, although there are downside risks.

* The world will need four times the nickel and double the copper in the next 30 years to support the clean energy transition, Reuters reported, citing BHP Group's Chief Commercial Officer Vandita Pant, who spoke at the FT Commodities Asia Summit.

* An updated pre-feasibility study for ScoZinc Mining Ltd.'s Scotia project in Nova Scotia generated a posttax net present value, discounted at 8%, of C$128 million, with a 65% internal rate of return and a 1.3-year payback period.

PRECIOUS METALS

* Colombia is set to open the first bidding round for gold exploration contracts in early 2022 in an effort to diversify its mineral production, Reuters reported, quoting the national mining agency head Juan Miguel Duran.

* Aura Minerals Inc. trimmed its full-year 2022 gold equivalent production guidance to the range of 265,000 to 300,000 ounces, from the previous target of 285,000 to 330,000 ounces, due to the delay in the development of the Almas gold project in Brazil and the company's decision to stop investing in its Gold Road mine in Arizona.

* Kintavar Exploration Inc. said Iamgold Corp. started drilling on the Anik gold project in Quebec. Iamgold holds an option to acquire up to 80% of the project.

BULK COMMODITIES

* PJSC Uralkali launched a pilot project through its partnership with Fortum Oyj's Russian unit PJSC Fortum to power its industrial facilities with the latter's solar power plants in Bashkortostan Republic and the Orenburg region.

* Nutrien Ltd. outlined plans to redeem US$1.8 billion in debt and launched an offer to purchase up to US$300 million in debt.

* Monthly coal exports from the Hampton Roads port facilities in Virginia increased 40.7% year over year to 2.7 million tons in October, according to data from the Virginia Maritime Association.

SPECIALTY

* Euronext Dublin restored the listing of Petra Diamonds Ltd.'s US$336.7 million notes due 2026 following the publication of Petra Diamonds US$ Treasury PLC's audited financial statements.

* The first tender of rough diamonds from Petra Diamond's Williamson mine in Tanzania will take place in Antwerp, Belgium, from Nov. 19 to Nov. 26. The company will auction 26,000 carats of diamonds, including a 32.32-carat pink stone.

INDUSTRY NEWS

* The EU is backing seven large-scale industrial decarbonization projects through its Innovation Fund, with over €1.1 billion to support breakthrough technologies in energy-intensive industries; hydrogen; carbon capture, use and storage; and renewables, S&P Global Platts reported, citing the European Commission.

* The government of Western Australia introduced the Aboriginal Cultural Heritage Bill 2021, which seeks to replace the Aboriginal Heritage Act 1972 and give Aboriginal people stronger influence on managing their cultural heritage.

S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.

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