Vale Int Share Discussion Threads

[florenceorbis] 03/10/2018 11:12

BHP Billiton Ltd. (BHP.AU), Vale SA (VALE) and their Brazilian iron-ore mining venture have settled with state prosecutors in Brazil over one of the civil claims filed in the wake of a fatal 2015 dam failure.

The partial settlement of claims moves the legal process forward a step and will allow a foundation set up by the companies and their joint venture, Samarco Mineracao SA, to make payments to some of those affected by the dam's collapse.

The agreement on how a compensation program will be administered in Mariana, Mina Gerais, was reached between the companies and the local prosecutor in Mariana, and was ratified by the State Court of Mariana this week.

The November 2015 disaster in southeast Brazil released at least 32 million cubic meters of mine detritus-enough to fill the Dallas Cowboys' AT&T Stadium 11 times-which destroyed villages and polluted more than 400 miles of rivers before spewing into the Atlantic Ocean.

The prosecutor's office in the state of Minas Gerais filed a claim against BHP, Vale and Samarco in December 2015 for moral and material damages to an unspecified group of affected individuals, including payments for housing and economic assistance, accord to BHP's latest annual report. Payments have been held up by court proceedings including petitions from people in Brazil.

The claim was one of several against the companies and the joint venture in Brazil for billions of dollars. The parties in June entered an agreement to settle an about $5.2 billion public civil claim and established a process to renegotiate to push ahead with settlement of an about $20 billion claim by Brazil's federal public prosecutions office.

The Samarco mining and processing operations have remained suspended since the dam broke.



Write to Robb M. Stewart at [e-mail]



(END) Dow Jones Newswires

October 03, 2018 05:46 ET (09:46 GMT)

[waldron] 26/6/2018 06:06

SAO PAULO--Vale SA and BHP Billiton Ltd., the owners of Brazilian mining company Samarco Mineracao SA, said Monday they agreed with Brazilian authorities to suspend for two years a 155 billion real ($41 billion) civil claim over the catastrophic 2015 collapse of a tailings dam while talks continue, disappointing investors who had been hoping for a final settlement of the suit.

The companies, federal prosecutors and the governments of the states of Minas Gerais and Espirito Santo will also ask to dismiss a separate civil claim, for 20 billion reais. The entire agreement needs to be approved by a federal court and by the federal government, BHP Billiton and Vale said in notes.

The dam, owned by Samarco and located in the Brazilian state of Minas Gerais, collapsed in November 2015, resulting in the deaths of 19 people and polluting more than 400 miles of waterways. Samarco, a joint venture half owned by Vale and half by BHP Billiton, shut down operations following the accident.

Samarco produced high-quality iron-ore pellets before it closed, and steelmakers are now paying miners a big premium for that type of ore. Samarco accounted for roughly one-fifth of the global iron-ore pellet market before its suspension, and financial markets are keenly interested in knowing when it will resume operations.

BHP Billiton declined to say when Samarco might restart.

Investors have also sought clarity on whether there will be changes to the future ownership of the operation, after several media reports over the past year said the companies were discussing whether Vale would take control of Samarco. BHP isn't currently in talks to sell its stake, a person familiar with the matter said on Monday.

The two civil suits, for 20 billion reais and for 155 billion reais, generated uncertainty over the final amount the companies will have to pay as deadlines for resolutions were postponed. With the smaller suit expected to be dismissed and the other talks extended, the agreement is a step in the right direction, but it doesn't clear up some key questions, some analysts said.

"Everyone was hoping for a final number and a little more visibility on the restart" of Samarco operations, said Jeremy Sussman, an analyst at Clarkson Capital Markets in New York.

The agreement brings more stakeholders into the negotiations, which will make the talks slightly more complex but "creates a more favorable environment for ongoing work and future negotiations," said Danny Malchuk, BHP Billiton's President of Operations, Minerals America, during a conference call.



Write to Jeffrey T. Lewis at [e-mail]



(END) Dow Jones Newswires

June 25, 2018 19:13 ET (23:13 GMT)

[sarkasm] 17/6/2018 08:14

Why There Won’t Be An OPEC For Battery Metals
By Vanand Meliksetian - Jun 16, 2018, 6:00 PM CDT Mining

Over the past 58 years, major oil-producing states have aligned their interests in the ‘Organization of Oil Producing Countries’. During those years, OPEC has been able to steer price of ‘black gold’ in a direction more favorable to its members. The goal of this organization has been to “coordinate and unify the petroleum policies of its members”, while at the same time “ensuring the stabilization of oil markets in order to secure an efficient, economic, and regular supply of petroleum”.

In this perspective, the rise in sales of electric vehicles or EVs is more or less a threat to the flow of income of these countries. This process has been seriously accelerated by the sharp decline in battery production costs in recent years. In the long-term, EVs will account for 8 percent of total vehicle sales in 2025, 24 percent by 2030, and 54 percent by 2040. This means that by 2040, 8 million barrels of oil could be displaced.

Obviously, the rise in sales will not only impact oil but also cause an increased demand for metals used in the production of batteries. Currently, the most important elements are lithium, cobalt, and nickel. As with oil, the majority of commercially extractable deposits is located in several countries, which some analysts have dubbed as the ‘new OPEC’. However, this article will argue that such a development will not happen in the foreseeable future due to several reasons.

Related: Oil Markets Unmoved By North Korea Summit

First, the top countries producing lithium (Chile, China, and Argentina), Cobalt (Congo, Russia, and Australia), and Nickel (Indonesia, Philippines, and Canada), are with the exception of Congo stable states and with a high level of control over their territory. These countries possess, with the exception of Congo, relatively well-diversified economies where mining is a welcome boon to the economy but in no way essential. Oil for most of OPEC’s members was and still is an essential part of government income. Mineral producing countries, therefore, have less incentive than oil producing ones in organizing themselves in a comparable organization.

Second, the strategic and financial importance of oil for the national economy led to what is now OPEC but required the participation of public organizations such as national oil champions in order to make it effective. These ‘National Oil Companies’ or NOCs control production either by themselves or in a joint-venture with foreign companies. The mining of metals, in contrast, is in most areas of the world done in an open economic space where private companies participate for exploration rights. For Lithium one Chilean and two American companies vie for domination: Sociedad Quimica y Minera, Albemarle, and FMC corporation.
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The electrification of many major economies is changing the market for commodities quickly. Rapid urbanization and industrialization in China have led to an air pollution problem. The Chinese government has therefore embarked on a serious push for alternatives to improve air quality. Domestic and international firms are eagerly making use of the new policy that can be seen in the rapid rise of China’s share of global EV sales which currently stands at 21%. The Asian giant intends to become the biggest producer of lithium-ion batteries by 2020 with a 62% global market share. The Chinese government is stimulating domestic lithium production in order not to be too reliant on others.

Furthermore, resources used in the manufacturing of batteries are not ‘consumable217; commodities in the way oil is. While refined products are used a single time during combustion, batteries are obviously rechargeable. Furthermore, the rising importance of sustainability in societies worldwide combined with cost savings means that recycling is an important process. Therefore, it is likely that metals producing countries will not be able to exert the same level of influence on prices as OPEC.

Related: Permian Boom Jeopardized By Pipeline Troubles

During the past decades, OPEC has been one of the most important factors in setting the price of oil. Even with the rise of fracking in the US, no other player or organization has been able to influence developments in the energy sector on the same level. The primary reason is that the world remains highly dependent on oil, giving its producers an edge.

The willingness of major lithium, cobalt, and nickel producing countries to organize themselves can be met with relative skepticism due to the above-mentioned arguments. Another factor making accurate predictions difficult are technological developments in the sphere of battery production. High prices tend to stimulate innovation and the search for alternatives. The soaring cost of cobalt, for example, has already spurred some companies to look for alternatives. Even though the current outlook for commodity prices looks stable, the situation could change quickly due to economic, political, and technological developments, making an OPEC for battery metals highly unlikely at this moment in time.

By Vanand Meliksetian for Oilprice.com

[waldron] 12/4/2018 08:24

African Battery extends auger drilling programme on Kisinka property in the DRC
07:39 12 Apr 2018
The Africa-focused exploration company said given positive results from a northern line, the decision was made to extend the auger programme
cobalt
ABM added that whilst its current exploration focus is on Kisinka, it continues to evaluate other copper-cobalt opportunities in the DRC

African Battery Metals PLC (LON:ABM) has extended the auger drilling programme on its Kisinka property in the Democratic Republic of the Congo (DRC) to investigate some additional soil anomalies.

The AIM-listed firm said that two lines of augering have so far been completed on the 70% owned Kisinka licence acquired in December 2017 - one across the southeastern part and the second towards the northwestern part of the licence.
READ: African Battery expects significant cobalt progress in 2018

ABM said the augering penetrates the surface to extract soil samples from closer to the bedrock which is useful in areas of soil cover like Kisinka.

The Africa-focused exploration company said given the positive results from the northern line, the decision was made to extend the auger programme.

The firm said it intends to submit soil samples for laboratory analysis in Johannesburg shortly. It added that given the large size of the iicence, and the distance between the two lines of augering, consideration will also be given to running a soil sampling programme on a grid pattern across the whole licence area.
Continues to evaluate other copper-cobalt opportunities in the DRC

ABM added that whilst its current exploration focus is on Kisinka, it continues to evaluate other copper-cobalt opportunities in the DRC. ABM retains the option over a second licence, Sakania, and expects to investigate that licence in due course.

The group said it has also been approached to look at other licences within the DRC, some of which have had geological work already completed on them and which confirms high-grade copper/cobalt mineralisation.

Roger Murphy, CEO of ABM, said: “The next round of field work on Kisinka, which could involve soil sampling or further augering, will be formulated based on ongoing results. We will update the market with these as they become available.”

He added: "In the meanwhile we are excited by the quality of opportunities we are being offered. We continue to assess these opportunities and will update the market as appropriate."

[la forge] 24/2/2018 12:06

Tech Giants Scramble To Secure Cobalt Supply
By MINING.com - Feb 21, 2018, 2:00 PM CST Cobalt

Tech giant Apple Inc (NASDAQ: AAPL) is said to be in talks to buy long-term supplies of cobalt directly from miners as a way to ensure sufficient supply of the metal, an essential ingredient in the batteries that power its iPhone.

Citing anonymous sources, Bloomberg reports that the company is trying to secure contracts for several thousand tonnes of cobalt for five years or longer.

Electronics and car makers are racing to lock in supply agreements for cobalt amid fears of shortage.

Negotiations are said to be in a preliminary stage, which means Apple may end up deciding not to go ahead with a deal, the article says.

The news underscores concern that rapid growth in batteries demand may lead to a shortage of the raw materials needed to make them, particularly cobalt, lithium ad copper.

It also comes just a week after Samsung SDI, South Korea’s leading battery maker, unveiled plans to recycle cobalt from used mobile phones and develop lithium-ion batteries with minimum content of the metal, or no cobalt at all, as a way to offset soaring prices for the silver-grey commodity.

Cobalt prices went ballistic last year, with the metal quoted on the London Metal Exchange ending 2017 at $75,500 per tonne, a 129 percent annual surge sparked by intensifying supply fears and an expected demand spike from battery markets.

If anything, prices for the metal are expected to rise even further this year, as the Democratic Republic of Congo, responsible for more than half the world’s supply, recently hiked its taxes and royalties on the metal.

(Click to enlarge)

Cobalt prices have risen to $80K per tonne from just above $20K per tonne two years ago.

Cobalt demand from the electric vehicles industry is also forecast to grow from to 95,000 tonnes by 2026 from 12,000 tonnes last year, according to consultancy CRU.
Related: Oil Prices Diverge On Mixed Data

BMW, for one, recently said it believes its needs for car-battery raw materials will grow 10-fold by 2025 and that it had been surprised by "just how quickly demand will accelerate".

Apple has increased its engagement with cobalt miners in recent years due to scrutiny from international human rights organizations. According to Amnesty International, about 20 percent of the cobalt mined in Congo is extracted by hand by informal miners including children, often in dangerous conditions.

The London Metal Exchange (LME), the world’s biggest market for industrial metals, has also stepped up efforts to make sure that cobalt mined by child labour doesn’t trade on the exchange, following several reports indicating that minors are being exploited to extract the coveted mineral.

By Mining.com

More Top Reads From Oilprice.com:

[waldron] 25/1/2018 16:46

The Democratic Republic of Congo's new proposed mining code could hurt businesses, says share price Angel analyst John Meyer, but not too badly. The code proposes royalties of 3.5% on base metals and of 5% on strategic metals such as cobalt that will affect Glencore and Randgold but aren't disastrous given the high grades mined in the DRC. "Cost, aggravation [corruption] and security issues relating to working in the DRC are far more damaging to business than any royalty," Mr. Meyer says. Cobalt, a metal integral to electric-vehicle engines, has soared 280% in the 16 months to Jan. 11, according to Bloomberg. ([e-mail]; @davidhodari)



(END) Dow Jones Newswires

January 25, 2018 08:28 ET (13:28 GMT)

[the grumpy old men] 11/1/2018 09:25

Rio Tinto (LSE:RIO)
Intraday Stock Chart

Today : Thursday 11 January 2018
Click Here for more Rio Tinto Charts.

--Rio Tinto has dropped out of the bidding for a stake in Sociedad Quimica y Minera de Chile, one of the world's top lithium producers, as it pursues other ways to capitalize on the electric-car boom, Bloomberg reports, citing unnamed sources.

--Rio decided not to proceed with an offer for Nutrien Ltd.'s 32% stake in Santiago-based SQM--worth about $5 billion at current market prices--after conducting research, according to Bloomberg.

--Rio is studying the development of a Serbian lithium project that could meet 10% of global demand and begin production as soon as 2023, Bloomberg reports.



Full story: hxxps://bloom.bg/2DiZFli



Write to Barcelona editors at [e-mail]



(END) Dow Jones Newswires

January 11, 2018 02:18 ET (07:18 GMT)

[waldron] 08/1/2018 22:39

Is This Lithium Battery Breakthrough Too Good To Be True?
By Irina Slav - Jan 08, 2018, 4:00 PM CST Lithium

It would be a dull month if a new rechargeable battery project didn’t make headlines amid all the excitement surrounding electric cars. This month’s indisputable winner is the lithium-ion battery that replaces cobalt with iron, and—rather surprisingly—works, at least according to the people who came up with the idea.

The potential implications of this invention are huge: Cobalt is enjoying a very strong rally as demand is estimated to skyrocket with the influx of electric cars in the world’s biggest markets, notably China and the United States. So is lithium, but the iron battery is unlikely to have an impact on lithium demand. Also, theoretically, the iron battery could put some battery makers out of business.

The idea of using iron in batteries isn’t new, but so far, attempts to substitute the cheap metal for costlier cobalt and other metals have ended in disaster. Christopher Wolverton, professor of materials science and engineering at Northwestern University, had two problems to solve to make his battery work. First, replace cobalt with iron. Second, trick oxygen into taking part in the reaction that moves the lithium ions from the anode to the cathode and back again as the battery is charged and discharged.

The second challenge was the bigger one. The widespread opinion in science circles is that using oxygen in the reaction taking place in a rechargeable battery makes the concoction inside unstable and oxygen escapes, making the reaction irreversible and the battery non-rechargeable. That’s why Wolverton and his team first made the battery on a computer to see if it would work. Surprisingly for all, it did—and better than the most popular lithium-ion batteries.

The iron battery uses four lithium ions instead of just one like current batteries do. For now, it can only utilize one of these, but there’s potential for making use of all four, considerably increasing the battery’s efficiency.


That’s really exciting, but the official news release is shy on the experimental aspect of the team’s work. There’s mention that there was an author in charge of the experimental work, but all the details about the composition of the battery and the reaction are about the computations the team made. These computations were used to make the physical battery, but the experimental stage of the project is likely at an early stage.

Should further experiments confirm the initial results, this battery has the potential to transform many markets—all that deal in rechargeable devices—from cars to smartphones and wearables. Iron is among the cheapest metals in the world, with a metric ton currently trading for less than $77. To compare, the three-month futures on cobalt on the London Metal Exchange is $75,000 per metric ton. Even that would be enough to make the new battery a hit if its viability is confirmed. The greater durability would also be a welcome bonus.

With a battery like that, the EV revolution could truly take off.

By Irina Slav for Oilprice.com

[the grumpy old men] 04/1/2018 22:24

January 04, 2018 16:58 ET | Source: Lithium Exploration Group, Inc.

PHOENIX, Jan. 04, 2018 (GLOBE NEWSWIRE) -- Lithium Exploration Group (USOTC:LEXGD) announced today that the financing of the White Top project in Louisiana continues to progress nicely. The initial data scrubbing on the seismic data is complete, with the time depth migration expected by the end of January. The independent consultant will be meeting with the whole team again in Houston on January 17 to get a final update of the seismic results and update the report and findings.

Crude oil prices have risen more than $10 per barrel over the past few months, and continue to climb higher which has substantially increased the overall value of the royalty LEXG controls. Once the seismic data is fully processed, the company intends to have another independent reserve report completed to place a value on the future cash flows, with the goal of adding that asset to its balance sheet.

"The team in Houston continues to work on the closing documents with their lead investor. Their hope is to begin the development drilling in February," commented CEO Alex Walsh. "The price of oil is up over 20% since we made the investment last spring, and the steady increase in the price of oil over the past few months has been a true blessing that we hope to see turn into substantial cash distributions this year."

Independent Analysis of White Top Seismic Data

About Lithium Exploration Group

Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused testing the Sonic Cavitation Ltd. technology and the acquisition of oil and gas related assets in the US and Canada. Lithium Exploration Group is traded on the OTC Markets under the symbol LEXG.

Website: www.lithiumexplorationgroup.com.

Safe Harbor Statement

This news release contains "forward-looking statements". Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Info
Shanon Chilson

480-641-4790

[e-mail]

[la forge] 03/1/2018 11:44

Electric Cars Charge Up Cobalt -- WSJ
03/01/2018 8:02am
Dow Jones News

Vale Pref (EU:VALE5)
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Today : Wednesday 3 January 2018
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Labor strife, rights issues in Congo spur Canadian mining firms to seek other sources

By David George-Cosh

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (January 3, 2018).

TORONTO -- A handful of Canadian miners are ramping up operations to mine cobalt, betting on demand for a socially responsible source of the metal that is in high demand as a key component of electric cars.

Most cobalt currently comes from the Democratic Republic of Congo, where supply is threatened by political, legal and labor issues. That means car makers and battery suppliers are increasingly looking elsewhere for the mineral.

Miners in Canada such as Vale SA, which has a cobalt-producing mine in Sudbury, Ontario, Sherritt International Corp., and smaller firms such as Royal Nickel Corp., First Cobalt Corp. and Fortune Minerals Ltd. are raising funds and engaging in exploratory drilling.

Mainly through operations led by Vale, Canada is the world's third-biggest producer of cobalt, after the Congo and China, accounting for about 6% of the world's supply, according to the U.S. Geological Survey.

The metal is a crucial component of lithium-ion batteries, which are used to power electric vehicles as well as portable electronic devices due to its ability to conduct electricity when stacked with other metals such as lithium and nickel.

The demand for socially responsible sources of cobalt comes as the price of the metal has soared to $75,000 a metric ton on the London Metal Exchange, more than double the price from the start of 2017.

BMO Capital Markets expects current cobalt prices to double in the next two years as demand for electric-vehicle batteries continues to outstrip existing supply of the metal, the bank said in a report released in December.

The Congo produces roughly two-thirds of the world's cobalt, or about 66,000 metric tons a year, but mines there have been criticized over reports of child labor and unsafe conditions.

Amnesty International released a report in 2016 that found thousands of children, some as young as 7 years old, and adults, mine cobalt in the country and work in perilous conditions without basic protective equipment. The organization was able to trace the sale of that cobalt to Chinese refiners, which then resold the mineral to battery component manufacturers.

In addition, a major mine there that is jointly owned by state mining firm Gécamines, and Belgian-based Groupe Forrest International SA, has been caught up in a labor-contract dispute. And an analysis by the Carter Center, a human-rights nonprofit, found nearly $750 million in royalties, bonuses and proceeds from asset sales that are estimated to go to the Congolese government are missing from Gécamines's accounts. Gécamines has disputed the report and declined to comment.

Volkswagen AG and nine other leading car makers, including Ford Motor Co. and Daimler AG, whose supply chains include cobalt buyers, in November set up a "raw materials observatory" that aims to address ethical and labor-rights issues in sourcing raw materials, including cobalt.

A Volkswagen spokesman said the company remains in "intensive discussions" with its suppliers to determine how to improve the sustainability of its supply chain, especially for raw materials used in electric vehicles.

Electrovaya Inc., a battery maker based in Toronto, is in discussions with Canadian cobalt miners, including Fortune, to lock down supply contracts for the coming years, said Chief Executive Sankar Das Gupta. "All our customers want ethical sourcing," Mr. Gupta said.

A Fortune spokesman said the company has signed numerous confidentiality agreements with partners they are in discussions with, and declined to provide further comment on Electrovaya.

For Robin Goad, chief executive of Fortune, which is developing a mine in Canada's Northwest Territories, that may be an opportunity.

Mr. Goad said that early next year he plans to announce project financing for the mine, which is expected to produce 2,000 metric tons of cobalt annually, as well as a refinery it plans to build in Saskatchewan estimated at a total cost of 650 million Canadian dollars ($516 million). He declined to give further details about the financing.

"You can draw a straight line from our mine in the Northwest Territories to the refinery in Saskatchewan and know that is being produced here," Mr. Goad said. "When you get [refined] cobalt from China, you don't know where it's being sourced from."

Miners outside of Canada are looking to cash in on demand for cobalt. Toronto-based Sherritt International has nickel-cobalt mines in Cuba and Madagascar that produce about 7,000 metric tons of cobalt, roughly 6% of the world's total production.

"Market dynamics are right now in our favor with respect to cobalt," said David Pathe, Sherritt's chief executive, adding that the company is in a good position to source cobalt from mines free of conflict and labor violations.

First Cobalt sees potential in abandoned open-pit silver mines just outside Cobalt, Ontario, which is located approximately 300 miles north of Toronto and is named for its historic links with the metal. More than 50 million pounds of cobalt and 600 million ounces of silver were mined in the region before miners abandoned the area shortly following the World War II after exhausting the region's silver mines.

Now, there is enough pink-hued oxidized cobalt shown in discarded rock piles in the 25,000 acres of land claimed by First Cobalt to conduct exploration drilling, said Trent Mell, president and chief executive of First Cobalt. Initial drilling activity shows enough potential for a high-grade cobalt-silver vein system in some mines, he said.

"Next year, we gotta drill the hell out of this thing," Mr. Mell said.

Write to David George-Cosh at [e-mail]



(END) Dow Jones Newswires

January 03, 2018 02:47 ET (07:47 GMT)

[la forge] 03/1/2018 11:44

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