World Bank expects slow recovery in bulk minerals market
The World Bank said that as the commodity market recovers from the impact of the epidemic, oil demand may be "lastingly affected" by the new crown pneumonia epidemic, while metal prices are expected to rise slightly. After the plunge in April, the recovery of oil prices has stalled, as the second outbreak of the epidemic prompted governments to reconsider opening up plans. According to the report, the epidemic may also have a “lasting impact” on oil demand by changing consumer and employment behavior. Air travel may see a permanent reduction, as business travel is reduced and teleconferences are instead conducted, which reduces the need for fuel. The World Bank predicts that, boosted by China's rapid economic recovery, metal prices will continue to rise slightly by 2% in the coming year. The World Bank pointed out that the main risk of price prediction is the duration of the epidemic, including the risk of the second wave of the epidemic in the northern hemisphere, and the speed of vaccine development and application.
South African cabinet approves export tax on chrome ore
South Africa, the world's largest chromium producer, has approved measures to support the domestic ferrochromium industry, including an export tax on chromium ore. Measures include the proposal to impose an export tax on chrome ore, the use of energy-saving technologies in smelters, and the use of cogeneration and self-generation technologies. South Africa has not announced the specific details of export taxes. Chrome ore is a key component of stainless steel. South Africa supplied 12.5 million tons of chrome ore to China last year, accounting for 83% of China's total chromium imports.
Indonesian President orders reduction of coal exports
Indonesian President Joko Widodo last Friday ordered the cabinet ministers to set targets to reduce the export of unprocessed coal and to accelerate the development of plans for processing coal-derived industries. The President of Indonesia stated that as the world's largest exporter of thermal coal, Indonesia should rapidly develop local industries to upgrade, liquefy and gasify coal, and urged ministers to determine the output that can be used for such processing. To encourage the development of the coal industry, the government recently passed the "Employment Creation Law" stipulating that if companies create more value from coal, they do not need to pay royalties. A mining law passed in May guarantees that if mining companies integrate processing operations, they can extend the mining period. Indonesia has been seeking to process raw materials domestically, aiming to obtain more value from mineral resources.
Philippines promotes settlement of mining litigation
Philippine Finance Minister Carlos Dominguez said on Sunday that the Philippines is forming a government task force to resolve legal cases involving its mining assets in an attempt to promote the sale of these assets. Dominguez pointed out that the lawsuit has hindered the government's efforts to privatize assets, and the new inter-agency team seeking to resolve legal issues will include representatives from the finance and environmental sectors.
Barrick receives new exploration license in Tanzania
Barrick Gold of Canada said on Friday that it has obtained ten new exploration licenses in Tanzania. Previously, the company was caught in a three-year tax and mineral rights dispute in Tanzania. The Toronto-based mining company operates three mines in Tanzania through Twiga Minerals and will spend US$8 million on exploration in Tanzania this year.
Las Bambas copper mine resumes transportation
After the local community ended the road blockade, Minmetals Resources’ Las Bambas copper mine in Peru has resumed transportation, and the company’s copper can be transported from the Las Bambas mine to the port of Matarani in Arequipa, Peru. Previously, because protesters blocked a road in Tuntuma, Minmetals Resources had to temporarily suspend transportation activities for six days. According to local news reports, the community asked Minmetals Resources to pay US$277,446 for some development projects. The company said in a statement that Minera Las Bambas met with representatives from Tuntuma and Collana last Thursday and reached an "agreement that will help the development of both parties."
Anglo American's total output jumped 24% in the third quarter
Anglo American said that in the third quarter of this year, the company's mining business continued to recover from the early effects of the epidemic. Compared with the previous quarter, the company's total output increased by 24% because its mines are currently operating at 95% of normal production capacity. However, the output is still below the record level in the same period last year. In the third quarter of this year, De Beers diamond production fell 4% compared to the third quarter of last year, platinum fell 2%, and palladium production remained flat. Iron ore production in South Africa and Brazil fell by 9% and 18%, respectively. Coal is the worst-performing commodity, with metallurgical coal production falling by 26% and thermal coal production by 11%. Thanks to the strong performance of Chile's Collahuasi copper mine, copper production increased by 4%.
Freeport's copper and gold sales increased in the third quarter
Driven by rising gold prices and cost reductions, Freeport’s third-quarter earnings exceeded analyst expectations. In the third quarter of this year, freeport’s copper sales were 848 million pounds, 7% higher than the estimated 790 million pounds in July 2020, reflecting an increase in sales from North and South American mines. Gold sales were 234,000 ounces, which was 6% higher than the estimated value in July 2020, mainly reflecting the increase in ore grades in Indonesia. In addition, the company's total costs and expenses fell by approximately 7% in the third quarter to $2.97 billion.
Deterra Royalties listed on the ASX
After being divested from ore producer Iluka Resources, Deterra Royalties was listed on the Australian Stock Exchange last Friday, and the company's market value reached A$2.57 billion. Deterra’s main asset is iron ore royalties from BHP Billiton’s operations in southern Western Australia, but the company has stated that it plans to diversify its investment portfolio beyond steelmaking raw materials.
Wheaton precious metals will be listed in London
Canadian Wheaton Precious Metals said it has obtained the approval of the British financial regulator to be listed on the London Stock Exchange. The Vancouver-based company has already traded in Toronto and New York and will be listed on the London Stock Exchange on October 28. This move will make Wheaton the largest metals and mining company that Glencore has listed on the London Stock Exchange since 2011, and it will also increase its exposure to European investors seeking precious metals trading.
