TOP NEWS

Glencore, Anglo, South32 coal mines allegedly pollute South African water

A study by nonprofit group Centre for Environmental Rights revealed that South African coal mines owned by companies including Glencore PLC, Anglo American PLC, South32 Ltd. and Exxaro Resources Ltd. are polluting water resources in the Mpumalanga province. The group said the mine operators committed "gross violations" of their water use licenses, including failing to monitor the quality of water leaving their sites during rainfall. It also slammed the Department of Water and Sanitation and independent auditors for their "massive failures" to ensure compliance.

JX Nippon seeks entry into rare metals

JX Nippon Mining & Metals Corp. is keen on diversifying into rare metals such as tantalum and niobium in a bid to make so-called "electronic materials" its most profitable business, amid cost overruns at the Caserones copper mine in Chile, Reuters reported, citing JX Nippon President Seiichi Murayama. Caserones’ project cost has more than doubled to US$4.2 billion due to increasing labor costs and bad weather, among other factors.

Lithium majors to ramp up M&A as they hedge bets on developing demand

Confusion around the future makeup of the global battery supply chain to meet electric vehicle demand and lithium producers' desire for diversification of the resource will prompt companies to seek further acquisitions, experts said. Speaking at the Australasian Institute of Mining and Metallurgy's Lithium 2019 conference in Perth, Australia, Minerals Research Institute of Western Australia CEO Nicole Roocke said uncertainty in the supply chain for critical raw materials, or CRMs, is present across several fronts, including how many, when and which type of CRMs will be needed, when and to what extent mass deployment of electric vehicles will emerge, and how the technologies impacting the type and quantity of CRMs needed per vehicle are evolving.

DIVERSIFIED

* Following a strategic review, Ardiden Ltd. decided to focus on exploring the Pickle Lake gold project and securing a partner or alliance for its Seymour Lake lithium project, both in Ontario.

BASE METALS

* Antofagasta PLC was the third-largest explorer for copper over the 2009-18 period, according to the Metals and Mining Research team at S&P Global Market Intelligence. Its exploration budgets totaling US$1.32 billion were directed entirely to the red metal, resulting in a cost of US$0.09/lb for the 6.8 Mt of exploration-derived reserves added.

* Independence Group NL topped the full-year fiscal 2019 production guidance at its Nova nickel-copper-cobalt mine in Western Australia. Nickel output reached 30,708 tonnes compared to guidance of 27,000 tonnes to 30,000 tonnes, copper output totaled 13,693 tonnes compared to guidance of 11,000 tonnes to 12,500 tonnes, and cobalt output came in at 1,090 tonnes compared to guidance of 850 tonnes to 950 tonnes.

* Aeon Metals Ltd. aims to expand the potential strike extent of its Walford Creek copper project by 130 kilometers by lodging five mineral exploration permits collectively called the Basin Edge project, located to the east of Walford Creek.

* Primary Energy Metals Inc. signed a nonbinding letter of intent to evaluate the potential acquisition of NNZ Consulting Corp., a licensed distributor and producer of medical-grade cannabis in Colombia.

* Caeneus Minerals Ltd. put the analysis of assays for a drilling program conducted at its Pardoo-Highway nickel project in Western Australia on hold due to cash flow constraints.

PRECIOUS METALS

* A wildcat strike forced Guyana Goldfields Inc. to suspend operations at its Aurora mine in Guyana. The stoppage was prompted by a misunderstanding between certain open-pit mining contractors and Guyana subsidiary AGM Inc., which was exploring options to improve mine performance and sustainability.

* Lupaka Gold Corp. defaulted on a US$15.6 million loan under a prepaid gold purchase agreement with PLI Huara Holdings LP amid an illegal blockade at the Invicta gold project in Peru. Shares were down 60% in early-afternoon trading in Toronto following the July 3 announcement.

* To encourage more exports, the Russian central bank has been buying gold from local producers at prices below industry benchmarks, Reuters reported, citing an interview with bank Governor Elvira Nabiullina. "We introduced discounts for the purchase of gold because we saw that vendors were selling gold mainly to the central bank," Nabiullina said.

* Highland Gold Mining Ltd. signed an agreement with Russia's Far East Development Corp. confirming the inclusion of its Kekura and Klen projects in the Chukotka Advanced Special Economic Zone, which is expected to help lower costs at the projects. The inclusion is expected to add about US$100 million to the Kekura project's net present value. The operations within the special economic zone will be subject to zero or reduced income tax, precious metals royalties, land rental, and land and property tax over the first five to 10 years of operations.

* Banro Corp. is aiming to export about 100,000 ounces of gold from its restarted Namoya mine in the Democratic Republic of the Congo after a restructuring, Bloomberg News reported, citing CEO Brett Richards.

* Predictive Discovery Ltd. expanded its footprint in Guinea's Siguiri Basin after it was granted a new reconnaissance authorization covering 100 square kilometers over its Kaninko project in Guinea.

* Raiden Resources Ltd. said the transfer of the Zupa polymetallic project to its Skarnore Resources DOO unit from Balkan Mineral Corporation DOO is complete. The company has commenced preparations for a maiden work program.

* Gold-based financial service Goldmoney Inc. will increase its stake in jeweler Mene Inc. by agreeing to purchase 12,259,002 Class A share warrants from Roy Sebag, CEO of the two companies, for C$1.

* Blyvoor Gold (Pty) Ltd. accused the local police of conniving with illegal miners at its Blyvooruitzicht gold mine in South Africa, Mining Weekly wrote, citing a letter written by the company to Gauteng's provincial commissioner of police, Lt. General E Mawela.

BULK COMMODITIES

* Bosnia's Aluminij d.d. Mostar may shut down July 6 if the regional government fails to throw a lifeline to the troubled aluminum smelter, Reuters reported July 3, citing General Manager Drazen Pandza.

* Unconfirmed reports indicate that Exxaro Resources Ltd. will not be bidding for South32 Ltd.'s South African coal operations, Miningmx wrote. The publication noted that Exxaro is thought to have reached the shortlist of bidders for South32's South Africa Energy Coal business.

* Ferrexpo PLC appointed MHA MacIntyre Hudson as its auditor for the current financial year with immediate effect after Deloitte resigned from the post in April over concerns about an investigation into alleged money laundering and tax evasion.

* Peabody Energy Corp. started re-entry of its North Goonyella mine's Zone 1 in Queensland, Australia, in consultation with the Queensland Mine Inspectorate. Peabody will determine the first zone's conditions underground for necessary repairs before proceeding with the re-ventilation of Zone 2.

* The Australian government's Office of the Chief Economist expects iron ore prices to fall back to an average of US$80 per tonne in 2019 and drop to US$57/t in 2021 due to anticipated lower Chinese steel production and an improvement in the ongoing supply crunch. Meanwhile, Australia's iron ore exports are forecast to rise to 869 million tonnes in fiscal year 2020-2021, from an estimated 806 Mt in 2018-2019.

* Gindalbie Metals Ltd. shareholders approved Angang Group Hong Kong (Holdings) Ltd.'s proposed acquisition of shares it does not own in the ASX-listed explorer for 2.6 Australian cents each. The explorer's shareholders also endorsed the proposed demerger of Gindalbie's Coda Minerals Ltd. unit through a capital reduction.

* Shares of Universal Coal PLC slipped about 6% in afternoon trading on the ASX after Afrimat Ltd. withdrew its nonbinding indicative takeover offer due to "the size and complexity of the proposed transaction."

* The Office of Surface Mining Reclamation and Enforcement, or OSMRE, is releasing a record of decision regarding Alton Coal Development LLC's license application at the Coal Hollow mine in Kane County, Utah. The OSMRE, part of the U.S. Interior Department, will adopt the Bureau of Land Management's final environmental impact statement to inform recommendations.

* Over the last 12 months, at least four other coal companies have filed for bankruptcy protection to restructure or sell off assets, but Blackjewel LLC is the only one to shut down its mines so early in its bankruptcy proceedings.

* FYI Resources Ltd. secured a 21-year mining lease for its Cadoux high-purity alumina project in Western Australia. The company is continuing work on a definitive feasibility study.

* Nutrien Ltd. is trying to rescue 34 workers trapped underground at its Cory potash mine in Saskatchewan, Canada, CBC News reported. All of the employees are safe, a company spokesman said in the report.

* Australian rail freight operator Aurizon is expected to receive a one-off "catch-up" payment of about A$60 million in its fiscal 2019 after a recent court victory in a 2016 dispute against coal companies including Glencore, The Sydney Morning Herald reported, citing forecast from Morgans.

* NRW Holdings Ltd.'s Golding Contractors Pty Ltd. unit reached a deal with Stanmore Coal Ltd. to increase the overburden removal capacity at the Isaac Plains coal mine in Queensland, Australia, with the addition of a third truck and excavator fleet.

* Newly elected Ukraine President Volodymyr Zelensky vowed that his government will support and prioritize the development of Black Iron Inc.'s Shymanivske iron ore project in the country.

* Turkey is mulling the imposition of duties on imports of hot-rolled coil from the EU, Fastmarkets MB reported, citing market sources.

SPECIALTY

* U.S. President Donald Trump warned Iran against ramping up uranium enrichment in the latest escalation of tensions over the latter's nuclear program, Bloomberg News reported. "Be careful with the threats, Iran. They can come back to bite you like nobody has been bitten before!" Trump tweeted.

* Russia produced only about 2,600 tonnes of rare earth oxide in both 2017 and 2018, about 2% of global output, despite having the world's fourth-largest reserves of the group of 17 metals with unique electronic and magnetic properties that are vital to most modern electronic products, according to an exclusive S&P Global Market Intelligence report. China produced 120,000 tonnes of rare earth oxide in 2018, accounting for about 70% of the world total, while the U.S. produced 15,000 tonnes in the same period. Australia took second place with output of 20,000 tonnes per annum.

* Macquarie analysts warned investors about worrying trends in the lithium market, including ramp-up delays at Albemarle Corp.'s lithium hydroxide plant in China, despite steady growth in demand, The Australian reported. Macquarie said the possible exit of some producers, and not falling prices, should be investors' concern for now.

* Thor Mining PLC outlined targeted resource drilling focused on the Casper, Coco and RD deposits as well as testing of other prospects for potential economic grades of vanadium and titanium, part of a plan to advance exploration and assess potential development options for the Jervois vanadium property in Australia's Northern Territory.

* SRG Graphite Inc. rebranded as SRG Mining Inc. and retained its SRG ticker on the TSX-V Venture Exchange.

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