Barrick and Shandong announce $300m cross investment

Date Sep 26 2018 14:14:55 Source:Mining weekly

Gold major Barrick Gold, which on Monday announced an $18.5-billion merger with Randgold Resources, has reached a cross investment agreement with China’s Shandong Gold, which executive chairperson John Thornton said further deepened the partnership between the two companies.


Under the agreement, Shandong will purchase up to $300-million of Barrick shares, and Barrick will invest an equivalent amount in shares of Shandong Gold Mining Co, a publicly listed company controlled by Shandong Gold.


Shares will be purchased in the open market.


Barrick and Shandong Gold are 50:50 joint venture partners at the Veladero mine, in Argentina, the first step in the partnership between the two companies. As a second step, Shandong Gold is currently carrying out an independent evaluation of Barrick’s Lama project, including an analysis of potential synergies between Lama and the nearby Veladero operation. Barrick and Shandong Gold have also created internal working groups that are sharing technical expertise and best practices focused on best-in-class mining practices and innovation.


“Barrick and Shandong both believe that by working in partnership, we can leverage our collective strengths to unlock long-term value for our respective shareholders, just as we are at Veladero today, with the potential to expand to Lama and other El Indio Belt projects in the future,” Thornton said.


The agreement builds on the enhanced strategic cooperation agreement entered into on July 9.

Wold Gold Council Predicts 25% Surge to India's H2 Gold Demand

Date Sep 26 2018 14:14:01 Source:Scrap Monster

The latest report published by the World Gold Council (WGC) in association with ASSOCHAM forecasts 25% surge in Indian gold demand during the second half of the current year. This is mainly on account anticipated higher purchasing power among farmers, due to higher minimum support price (MSP) for crops announced by the Indian government. Incidentally, rural population accounts for nearly two-thirds of the country’s total gold demand.


According to the report, Indian gold consumption remained tepid in the first half of the year. However, higher MSP should boost gold trade in the country in H2 2018, as it would ensure more cash in the hands of farmers, which in turn may lead to increased gold purchases. Traditionally, higher rural incomes lead to higher gold purchases, the report said. It predicts 25% jump in gold demand, upon comparison with the second half of 2017.


The report mentions that the rich Indians purchase more gold when compared with the poor. The average spending on gold by households belonging to the top decile in the country was roughly eight times as that of the bottom decile.


However, even the poor people buy gold in India. The rural population considers gold as a store of wealth and also a tool for economic security. A recent survey had indicated that nearly 50% of Indian households had purchased gold within the past five years. Approximately 87% of Indian households are believed to hold some amount of gold holding.

China Baowu Steel Group denies report about takeover of Magang – media

Date Sep 26 2018 09:00:47 Source:Foreign media

China Baowu Steel Group said a media report that it is in talks to take over Magang group was not true, state media Shanghai Securities News reported on Tuesday.


Top Chinese steelmaker China Baowu Steel Group is in talks to take over rival Magang Group, three sources familiar with the discussions told Reuters earlier, a deal that would help entrench the nation's position as a serious competitor in global steel markets.

China's Q4 copper TC/RC floor set at $90 per tonne/9 cents per lb – sources

Date Sep 25 2018 15:09:56 Source:Foreign media

China's top copper smelters have set their floor treatment and refining charges (TC/RCs) for the fourth quarter at $90 per tonne and 9 cents per pound, respectively, two sources with direct knowledge of the matter said on Tuesday.


    The floor charges, the minimum fees miners should pay Chinese smelters to process their copper concentrate into refined metal, were agreed at a meeting of the China Smelters

Purchase Team on Friday. The group had set no floor for the third quarter.

Rare earth miner Lynas to face review in Malaysia – media

Date Sep 25 2018 15:08:42 Source:Foreign media

Australia-listed rare earths miner Lynas Corp Ltd LYC.AX said on Monday that reports an opponent of its refinery in Malaysia will head a government review of the plant "raise concerns", as its shares lost nearly a quarter of their value.


Lynas is the only major miner outside China of the metallic elements, crucial in the production of magnets. It mines raw material in Western Australia which is sent to a plant in Malaysia for processing.


Malaysia's government, elected in an unexpected landslide in May, had previously flagged a review of concerns surrounding the refinery, which activists say is envionmentally hazardous.


On Friday the Star newspaper, citing a ministerial letter of appointment, reported that Fuziah Salleh, a government politician and a long-time critic of the plant, will chair a committee reviewing the plant. She will lead it for three months, beginning Monday, the newspaper said. 


Fuziah had no immediate response.


Lynas Corp said on Monday its operations had already been extensively scrutinised and that it will advocate for a "transparent, impartial and scientific" review.


"The media has speculated that the chair of the proposed committee may be a long time anti-Lynas campaigner. If that appointment is confirmed, then that will raise concerns," the company said in a statement, without specifying what they were.


Lynas shares fell 23 percent to A$1.61, their lowest since last September, in a slightly weaker broader market .AXJO.


The strategic significance of rare earth metals was highlighted last week when the United States excluded them from a round of import tariffs.      


Lynas' main products, neodymium and praseodymium, are used in magnets for motors that drive automated seats and windows in cars, motors for hybrid vehicles and as magnets in electronic products, like DVDs and hard disk drives.


    Its $800 million plant, which produces low-level radioactive waste, began operations in 2012 after long delays caused by legal challenges and environmental disputes.