Guinea orders halt to Simandou development; Nornickel, Rusal considering merger

THE BIG STORY

The Guinean government ordered Rio Tinto Group and Winning Consortium Simandou to halt development of the long-stalled Simandou iron ore development, Mines Minister Moussa Magassouba told the companies in a letter obtained by Reuters. The two companies missed an extended deadline to formalize a joint venture agreement.

Despite reaching a framework agreement in March to co-develop a railway and port development, the companies were said to have shown a "lack of willingness" to work on a partnership and were accused of stalling over the terms of the government's stake in the venture.

Meanwhile, PJSC MMC Norilsk Nickel received a proposal from UC Rusal IPJSC for a possible merger between the two companies following increasing pressure from sanctions against Russia, according to reports from news wires Bloomberg News and Reuters.

Rusal's management sent the proposal as an alternative to extending a shareholder agreement, the reports said, citing RBC TV's interview with Norilsk Nickel CEO Vladimir Potanin. Potanin told RBC TV that he expects the company's 2022 and 2023 dividends to be lower than usual, according to the Bloomberg News report.

SPOTLIGHT

Battery scrap projection for recycling plummets – Circular Energy Storage exec

Less metal-intensive scrap material will be available to battery recyclers than previously anticipated by consultancy Circular Energy Storage, largely because of improving quality control.

Ganfeng Lithium faces insider trading probe over M&A deal with domestic rival

The insider trading investigation by China's top securities watchdog would affect Ganfeng Lithium Co. Ltd.'s financing activities in the coming months and would likely delay M&A.

Vale's pellet plants to complete switch to natural gas by 2024

Eneva SA and Companhia Maranhense de Gas will supply Vale SA's São Luís iron ore pellet plant in Brazil's Maranhão state with natural gas starting 2024.

RESEARCH

Lithium costs up in 2021, continuing to surge in 2022

MARKETS AND FINANCE

LME studying UK sanctions on Norilsk Nickel CEO

BHP enters commercial agreement with Canadian blockchain platform Minehub

Australia, New Zealand to ban Russian gold imports

POLICY AND REGULATION

California approves tax on Salton Sea lithium production – Reuters

Chile seeks to hike copper mining royalties to fund social programs – Reuters

Coal companies sue Alberta for C$3.44B over policy change

PROJECTS AND INFRASTRUCTURE

South Korea's POSCO to build Mexican plant with $136M investment by 2030

Glencore buys battery-electric equipment from Epiroc for Canadian nickel mine

Administrator orders halt of exports from Tenke Fungurume – Reuters

Barrick files C$120M claim over terminated earn-ins at 2 Canadian gold projects

OPERATIONS AND STRATEGY

Anglo American to combine zero-emissions haulage solution with First Mode

Legal action seeks to cancel approval for Whitehaven Coal's Narrabri expansion

Alcoa in talks to sell stake in Australian aluminum smelter – The Australian

Transnet lifts force majeure on 9 coal exporters

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.