Tianqi tests investor demand for US$1B IPO; Vale, BHP will not sell Samarco JV

TOP NEWS IN METALS & MINING

* Tianqi Lithium Corp. began marketing what is expected to be Hong Kong's largest initial public offering so far this year, braving recent market volatility to test global investor appetite for shares of new energy companies, The Wall Street Journal reported. The Chinese lithium producer is aiming to raise more than US$1 billion, and is expected to price its IPO on July 6 and start trading July 13, according to people familiar with the deal.

* Vale SA and BHP Group Ltd. said that their 50/50 joint venture Samarco Mineração SA is not for sale, after it was reported that Brazilian steelmaker Cia. Siderúrgica Nacional is drafting an offer to acquire the debt-laden company, Reuters reported.

➤ China's tin smelters slash output, but metal's downward trend will continue

Chinese tin producers, which account for more than 70% of the country's refined tin production capacity, have announced production cuts, but these may not be enough to support falling tin prices, analysts said.

➤ Most metal prices hammered as S&P 500 enters bear market amid recession fears

Most metal prices fell during the week ended June 17, particularly tin, amid increasing concern about a pending recession after the U.S. Federal Reserve increased its benchmark federal funds rate by 75 basis points.

➤ US$186M uranium deal leads metals, mining M&A for week ended June 17

Uranium Energy Corp. agreed to acquire UEX Corp. in an all-share deal valued at US$186.4 million, leading the metals and mining transactions for the week ended June 17.

DIVERSIFIED

* An updated independent mineral resource estimate for Future Metals NL's Panton platinum group metals-nickel project in Western Australia outlined a total resource of 129 million tonnes grading 1.66 g/t palladium equivalent for 6.9 million ounces of palladium equivalent.

BASE METALS

* Vedanta Ltd. will sell its shuttered Tuticorin copper smelter in India's Tamil Nadu state, Reuters reported, citing a newspaper advertisement.

* IGO Ltd. completed its acquisition of nickel miner Western Areas Ltd. at A$3.87 per share.

* Trevali Mining Corp. found the bodies of the remaining two missing miners at the flooded Perkoa zinc mine in Burkina Faso, following dewatering.

PRECIOUS METALS

* Impala Platinum Holdings Ltd. expects limited impact from striking workers at its Rustenburg platinum operations in South Africa, Reuters reported. The strike involves less than 8% of the workforce at the site, and was limited to two out of nine shafts.

* Alamos Gold Inc. produced 991 ounces of gold from the initial pour at its La Yaqui Grande mine in Mexico, following the completion of construction this month, ahead of schedule.

BULK COMMODITIES

* A decision on how — and if — the U.K.'s steel import safeguards regime will continue from July 1 will be announced "shortly," a spokesperson from the department of trade said, without specifying an exact date, S&P Global Platts reported.

* India's Tata Steel Ltd. bought about 75,000 tonnes of Russian coal in the second half of May despite committing to stop doing business with the country amid its invasion of Ukraine, Reuters reported, citing two trade sources and one government source.

* Nippon Steel Corp. is studying if it has to invest more in coal mines amid surging prices of the commodity, Bloomberg News reported, quoting Kiichi Yamada, the general manager of the company's raw materials division.

SPECIALTY

* The European Commission is looking to strengthen the EU's industrial value chains and will be preparing a legislative proposal to increase domestic production of magnesium and other critical raw materials as indicated in the REPowerEU Action Plan, an EC official told S&P Global Commodity Insights.

* Gemfields Group Ltd.'s recent ruby auction held in Bangkok generated US$95.6 million of revenue, "an all-time high for any Gemfields auction," Dow Jones Newswires reported.

INDUSTRY NEWS

* The Philippines' President-elect Ferdinand Marcos Jr. is considering imposing value-added tax on exports of partially processed ore instead of increasing mining taxes, GMA News Online reported.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our Issue in Focus.

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