Vale Int Share Discussion Threads

[waldron] 22/1/2019 06:42

SYDNEY--BHP Group Ltd. (BHP.AU) recorded weaker quarterly production of commodities including iron ore and petroleum and forecast a first-half productivity hit totaling US$600 million because of disruptions to operations that included a train derailment in a remote part of Australia.

The company also raised its full-year forecast for copper production after it called off the sale of its Cerro Colorado copper mine in Chile.

BHP, the world's biggest miner by market value, on Tuesday said it produced 58 million metric tons of iron ore in the three months through December, down 6% on the same period a year earlier.

In November, BHP was forced to derail a runaway train consisting of four locomotives and 268 loaded wagons that ran loose for more than 50 miles without a driver. The train rolled away after its operator disembarked to inspect one of the wagons and didn't secure a brake.

BHP temporarily suspended all of its rail operations in the Pilbara to investigate the incident and recover the rogue train.

The derailment helped to prop up iron-ore prices, which have been trading above analyst expectations as China continues to produce massive amounts of steel. China's steel-product output rose 8.5% last year.

BHP's Australian iron-ore shipments account for almost one-fifth of seaborne trade in the commodity. It is the world's third-largest iron-ore exporter, behind Vale SA (VALE) and Rio Tinto PLC (RIO.LN).

BHP said its productivity drive, aimed at working its mines and infrastructure network harder, had also been set back in the half by a plant outage at its Olympic Dam copper mine in Australia and a plant fire at its Spence mine in Chile.

BHP meantime raised its full-year copper production forecast to between 1.645 million tons and 1.740 million tons to reflect the retention of Cerro Colorado. It reported a 2% rise in second-quarter copper output, to 416,000 tons.

The company also recorded a sharp fall in quarterly petroleum production tied to lower gas sales. It said second-quarter output of petroleum products fell by 8% to 30 million barrels of oil equivalent.



Write to Rhiannon Hoyle at [e-mail]



(END) Dow Jones Newswires

January 21, 2019 17:19 ET (22:19 GMT)

[la forge] 05/12/2018 17:44

Home
Local News

Vale and Glencore sign joint study for Sudbury project
Mining companies announce agreement to look into resource accessibility from Nickel Rim South Mine
6
42 m by: Northern Ontario Business Staff
Nickel Rim MineVale and Glencore have announced a joint feasibility study into accessing deposits bordering both companies' properties using infrastructure in Glencore's Nickel Rim South Mine.

Sudbury's two major mining companies are jointly studying if they can access nearby resources from an active mine, northeast of the city, to extend its operating life.

Vale and Glencore announced on Dec. 4 they have initiated a feasibility study to explore the possibility of mining resources from the existing workings of Glencore’s Nickel Rim South Mine.

The study will examine the economic and technical aspects of using the existing shaft and infrastructure at the mine, as well as additional underground infrastructure, to potentially jointly develop and mine deposits in close proximity to each other.

This includes Vale’s Victor property and a shared deposit which exists adjacent to the boundary between each company’s properties.

“A joint approach could allow for resources to be unlocked that would likely not otherwise be productive,” said Ricus Grimbeek, chief operating officer for Vale’s North Atlantic Operations and Asian Refineries, in a news release.

Among the other benefits is job creation, Grimbeek added.

This feasibility study comes at a time when the economic outlook for nickel and copper looks promising.

Currently, Nickel Rim South is slated to close in 2022.

Peter Xavier, vice-president of Glencore’s Sudbury Integrated Nickel Operations, said this study has multiple benefits to the potential of coming together to mine deposits using existing infrastructure.

“The potential opportunity not only preserves significant capital for other future mining opportunities at Glencore, but also would create shareholder and economic value in the Sudbury Basin,” he said.

A joint approach to the study is an extension of the parties’ past collaboration in the Sudbury Basin.

It is expected that the feasibility study will take approximately a year to complete.

[grupo guitarlumber] 04/12/2018 20:14

Vale, Glencore to jointly explore for nickel in Canada
By Frederico Barbosa
Tuesday, December 4, 2018

[grupo guitarlumber] 25/10/2018 07:40

SÃO PAULO--Brazilian iron ore giant Vale SA said its net income declined in the third quarter from a year earlier because of the effect of the weaker Brazilian real on dollar-denominated debt.

The company reported a net income of $1.37 billion in the third quarter, compared with net income of $2.24 billion in the same quarter a year ago. Net operating revenue increased to $9.54 billion in the quarter, from $9.05 billion a year earlier. Operating income rose in the quarter, to $3.27 billion, from $3.02 billion in the same period a year earlier.

Vale's sales are benefiting from an increase in demand for higher quality, and higher priced, products, which are cleaner to process. The company is increasing output of them just as the Chinese government is pushing steel plants to cut pollution.

Vale is "a clear beneficiary of high-grade demand, and their position in the market is in the sweet spot," said Christopher LaFemina, an analyst at Jefferies.

The company has been boosting output of pellets, which have a high concentration of iron, and the restart of its São Luis pellet plant helped push pellet production to a new record. Vale also is ramping up output at its giant S11D mine, which produces high-quality iron ore.

Underlying earnings, which Vale says is a better measure of its performance than net income because it excludes exchange rate effects, was little changed at $2.06 billion in the third quarter versus $2.09 billion a year ago.

Adjusted earnings before interest, depreciation and amortization from continuing operations increased to $4.37 billion in the third quarter from $4.19 billion in the same period a year earlier.



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



(END) Dow Jones Newswires

October 24, 2018 18:38 ET (22:38 GMT)

[florenceorbis] 03/10/2018 10:12

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 05:06

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 07:14

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 07:24

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)