Category: Commodities

AUSTRALIAN miner Rio Tinto is expecting to achieve iron ore production of between 330m and 343mt for the 2020 year after its production for 2019 came in at 327mt, and 3pc lower than the 2018 year. In a statement to the ASX, Rio Tinto said its iron ore production guidance for 2020 is subject to weather and market conditions, and is framed by its expectation of general stability in global economic growth for this year. The mining company achieved an average market price for its Pilbara iron ore of $79/wet metric ton free-on-board basis in 2019, 37pc higher than the average realised price for this product in 2018. Rio Tinto chief executive Jean-Sébastien Jacques said its Pilbara iron ore production…

BLACKROCK is the latest investor firm to call it quits on thermal coal. In a letter to its clients, the world’s biggest fund manager stated that in response to clients’ concerns about the impact that sustainability factors were having on economic growth, asset values and financial markets, it would no longer invest in companies sourcing more than 25pc of revenue from thermal coal. It marks a 180 degree turn on its previous program of aggressively buying Australian coal stocks in 2019. In outlining its reasons for a new approach to sustainability, BlackRock stated “the most significant of these factors today relates to climate change”. “Namely, how the global transition to a low-carbon economy could affect a company’s long-term profitability. “The…

SHARES in lithium have soared, with Galaxy Resources up 24pc, Orocobre Ltd up 34pc and Pilbara Minerals posting a rise of 19pc. Mineral Resources also increased 2.4pc to $17.39. The boost for the lithium market comes as the Chinese government announced yesterday that it would hold back on reducing subsidies to the electric vehicle industry. Industry and Information technology Minister Miao Wei said that the subsidies, which have been cut steadily since 2018, will not be cut this July. This follows a marked drop in sales of electric vehicles since the subsidies, first introduced in 2009, began to be phased out. The surge is also hitched to Tesla’s delivery of its first Chinese made Model 3 cars. Tesla has revealed…

ASX-LISTED lithium company Sayona Mining is to bid for the North American lithium mine in Québec, Canada, after securing $2.75m of funding from a New York-based investor. Sayona Mining said the funding injection reflects increased investor confidence in the lithium sector. In a statement, the company said: “The new investment follows an upturn in the lithium sector since the start of 2020, and as Sayona builds momentum in its bid for the NAL mine, which it aims to make the centrepiece of a lithium hub comprising a concentrator supplied by two or potentially three ore bodies.” Sayona said it will use the funds from Obsidian Global to press ahead with its bid for NAL, and to advance its flagship Authier…

GOLD has peaked at a near seven-year high of US$1579.72 after the US launched a deadly attack against Iranian military leader Major General Qassem Soleimani. The destabilising effect on the international market was swift, and was the latest in a string of contributing factors that has continued to drive investors to gold as a safe-haven metal to protect against market downturn. The price spike has come after a momentary lapse in gold’s momentum in Q4 2019, surging to its highest price since April 2013 at US$1579.72. The assassination of General Soleimani has escalated international fears that tensions between Washington and Tehran could spill over into a new war in the Middle East. The targeted attack was given the go-ahead by…

INDEPENDENCE Group (ASX: IGO) has increased the pressure in its takeover bid for Panoramic Resources (ASX: PAN), after Savanah downgraded its FY20 guidance at the Savannah nickel project in the East Kimberley, WA. Citing ongoing difficulties at the Savanah project, including underperformance of the paste filling system that impacted the stoping sequence, low nickel grade due to hanging wall failure, and continuing equipment availability, IGO has requested expedited and thorough due diligence to be completed. Panoramic had indicated it would need to raise additional capital, potentially through an entitlement offer in the near term, and that there would likely be a breach of several conditions of the off-market takeover offer bid made on November 4. “Given the material change to the…

THE Federal Government has announced new financing measures for the rare earths and critical minerals sector – particularly those strategically important for defence end-use. Projects which boost our ability to extract and process critical minerals in Australia will be eligible for financial support through Export Finance Australia (EFA), including the Defence Export Facility. Projects will also have access dual funding through the EFA and the Northern Australia Infrastructure Facility (NAIF), as well as a dedicated project facilitation office within the Department of Industry. Resources and Northern Australia Minister Matt Canavan said the financing options would secure the future of rare earth and critical mineral projects and would allow Australian companies to maximise access to existing government support to expedite new…

RENASCOR Resources (ASX: RNU) has completed the Definitive Feasibility Study (DFS) at its 100pc owned Siviour graphite project in South Australia. The proposed Siviour mine would be an open pit with an adjacent graphite production plant, which the company said has the potential to be a world-class, low OPEX project. The DFS, completed by Royal IHC and Wave International, has been based on staged development, aiming for an average production of 80ktpa during the first stage, before expansion in year five that would be funded through the expected cash flows, ramping up production to 144ktpa between years five to 10. The projected life of mine operating cost is expected to be about $508/t, which according to the company is amongst…

THE extensive drilling program at Alkane’s (ASX: ALK) Tomingley Gold Project (TPG) has completed the first phase of drilling at the Roswell prospect. The company also continues to drill at San Antonio, and is confident it will release an initial resource by December. Roswell and San Antonio are located to the immediate south of the Tomingley gold operation, where Alkane is conducting an extensive drilling program to define additional resources with the potential for both open pit and underground mining. The additional ore feed would supplement the Tomingley Gold Operation’s 1mtpa processing plant. To date, 18,208m of drilling has been completed, with assays received for a further 8000m of the 60,000m resource definition drilling program at 40m by 40m spacing.…

THE Victorian Liberal National Coalition will block the Andrew’s Government’s planned 2.75pc gold royalty when it is tabled in the state parliament. Introduced at the May budget, the royalty shocked the emerging Victorian gold industry which had seen something of a renaissance since 2015, with Kirkland Lake’s (ASX: KLA) Fosterville gold mine becoming Australia’s most lucrative pure-play gold mine. While a gold royalty applies in all other states, there was concern that it would cripple vital early investment in Victoria. Although the industry has said it was not opposed to a gold royalty, it said proper consultation on its structure was needed, and that it be introduced over three years. But successful opposition of the tax will be hard fought.…

RIO Tinto (ASX: RIO) chief executive J-S Jacques waxed philosophical to investors in London on Monday speaking of his vision of the company’s future. He spoke about the ‘deeper world’ awaiting the mining industry in the 2020s, and the importance of recognising the finite nature of the resources being mined. As Rio Tinto moves into the next decade, the shift from excess to discipline will be emphasised. Mr Jacques said that as the world becomes faster, so it becomes deeper too – meaning AI and big data present an opportunity to transform mining majors’ business models toward circular economies. “The world will not wait for us,” he said. “The time for change is now.” China’s insatiable appetite for resources in…