May Newsletter – 15.05.2023
- Saudi ministry issues 123 new industrial licenses in March 2023
- Oman and Etihad Rail Co. signs deal with Brazilian mining giant
- Chinese Firms Rue Mine Purchases, Discount Unit Share Sales After Lithium Carbonate Prices Tumble
- Meet The Texas Startup That Recycles Rare-Earth Magnets, Bypassing China
- Polymetal plans exile to Kazakhstan as Russia ties cause a London stink
- Copper Mining M&A Activity Continues Amid Green Energy Boom
- Newcrest Mining accepts $19.2 billion Newmont takeover deal
Saudi ministry issues 123 new industrial licenses in March 2023
According to a report from the Ministry’s National Centre for Industrial and Mining Information, MIM has issued 332 industrial licenses from the start of this year and until the end of March
Riyadh: The Ministry of Industry and Mineral Resources (MIM) granted 123 new industrial licenses in March this year. The category that received most licenses was of food products (19), followed by rubber and plastic products, (15), metalworking products (excluding equipment and machinery), (14 licenses), non-metallic mineral products (12) and chemical materials(11) .
According to a report from the Ministry’s National Centre for Industrial and Mining Information, MIM has issued 332 industrial licenses from the start of this year and until the end of March. The Kingdom currently counts 10,825 factories, which are either operational or under construction. These factories represent a total investment volume of SAR1.4 trillion.
Oman and Etihad Rail Co. signs deal with Brazilian mining giant
RIYADH: Oman and Etihad Rail Co., the developer and operator of the UAE-Oman Rail Network, has signed a memorandum of understanding with Vale, one of the world’s largest mining firms, to utilize the rail project in the mining sector.
The MoU seeks to explore utilizing rail to transport iron ore and its derivates between Oman and the UAE connecting Vale’s industrial complex in Sohar Port and Freezone to its planned industrial complex in the UAE.
The MoU was signed by Ahmed Al-Musawa Al-Hashemi, CEO of the Oman and Etihad Rail Co., and Rogerio Nogueira, director of business development at Vale.
“The MoU highlights the interest of potential users in utilizing the UAE-Oman Railway Network and benefiting from its fast, sustainable, reliable, and cost-effective services,” Al-Hashemi said.
The signing ceremony was witnessed by Suhail bin Mohammed Al-Mazrouei, minister of energy and infrastructure and chairman of Oman and Etihad Rail Co., and Elaina Zugaib, Brazilian ambassador to the UAE.
“The agreement is in line with our desire to continue to work on and establish strategic partnerships with major companies in the United Arab Emirates and the Sultanate of Oman, supporting economic growth, continued development, and investment in both countries,” Al-Mazrouei said in a statement.
Chinese Firms Rue Mine Purchases, Discount Unit Share Sales After Lithium Carbonate Prices Tumble
(Yicai Global) May 10 — Listed Chinese companies have come to regret acquiring lithium mines and have cut the asking prices for shares in related subsidiaries after the price of lithium carbonate, used to make battery cathode, plunged 70 percent from November.
Tibet Mineral Development intends to try and sell all of its equity in unit Baiyin Zabuye Lithium on the Shanghai United Assets and Equity Exchange for the third time, cutting the offer price to CNY547 million (USD79 million) from CNY616 million, the Lhasa-based mining and metals firm said on May 8. It initially sought CNY684 million.
Zhite New Materials, a lithium miner backed by power battery giant Contemporary Amperex Technology, won the exploration rights to a lithium mine in China’s Xinjiang Uygur Autonomous Region with a bid of CNY6.1 billion (USD880 million) in February. Zhite’s offer for Washixia South Lithium Mining Zone was nearly 400 times the starting price of CNY15.8 million (USD2.3 million).
On April 23, the region’s natural resources department said Zhite had not signed the exploration rights transfer deal as agreed. According to relevant laws, the firm will be prohibited from participating in exploration rights transactions in China for three years. TBEA, which makes transformers, indirectly holds a stake in TBEA Loulan New Energy, which owns 35 percent of Zhite.
Low lithium salt prices have led to losses for some companies in the industry that bought ores externally, according to China Securities. The continued drop in prices or the reduced production of lithium salt has led to delays in bringing onstream some high-cost mines, it added while noting that the price decline has likely ended.
Meet The Texas Startup That Recycles Rare-Earth Magnets, Bypassing China
At a factory in San Marcos, Texas, workers gather Bird scooters, computer hard drives, MRI machines and motors from hybrid cars in order to separate out the old rare-earth magnets so they can be ground down and shaped into new ones. These strong permanent magnets are everywhere, even if most people know nothing about them. They go into everything from electric vehicles to wind turbines to consumer electronics to missile guidance systems. Yet for years, the U.S. has been largely dependent on China for rare-earth processing. Noveon Magnetics, the startup behind this recycling effort, has a grand plan — and some patented technology — to make a dent in that dependance.
“We didn’t realize till the last decade how big the potential shortfalls were,” says Scott Dunn, Noveon’s cofounder and chief executive. “You don’t just get to turn on the spigot and produce these. They’re not a commodity.”
Polymetal plans exile to Kazakhstan as Russia ties cause a London stink
Polymetal’s Dukat Gold Hub in Russia
Top-ten gold producer Polymetal (LSE: POLY) on May 10 proposed a plan to shareholders to delist from the London Stock Exchange (LSE) and to redomicile to the Astana International Financial Centre (AIFC) in Kazakhstan as international sanctions against Russia mount.
The Anglo-Russian miner, headquartered in Jersey, says Russia has listed the tax haven as an “unfriendly country” because of the Russia-led conflict in Ukraine that started in February last year. The US, the UK and the EU, Canada, Switzerland, Australia and Japan have each progressively imposed sanctions on certain Russian persons, entities and sectors, prompting Russia to adopt its counter-sanction measures.
Such measures include sanctioning persons and entities within jurisdictions on the “unfriendly countries list” under Russian law.
“The board is of the view that the re-domiciliation is a necessary and critical step to preserve shareholder value,” Polymetal said in a statement. “In determining that the re-domiciliation to the AIFC is the preferred alternative, the principal focus of the board has been on the removal of as many Russian counter-sanction restrictions as possible, in a legal forum that offers shareholders as much similarity to the status quo as possible.”
Polymetal says it considered the Dubai International Financial Centre, the Abu Dhabi Global Market, and Hong Kong as alternatives to the AIFC.
Copper Mining M&A Activity Continues Amid Green Energy Boom
Mergers and acquisitions (M&A) activity is heating up in the Copper Mining sector, as companies race to secure reliable sources of copper to meet the soaring demand from the renewable energy industry. With copper being a crucial component in electric vehicles (EVs), wind turbines, solar panels, and power networks, it is an essential part of the transition to a green economy.
The growing demand for copper is also driven by the increasing adoption of EVs, which require more copper than conventional vehicles due to their electric motors and batteries. In addition, the use of copper in wind turbines and solar panels is expected to increase as these technologies become more widespread. With the shift to renewable energy sources accelerating, the demand for copper is likely to remain strong in the years to come.
According to the International Energy Agency (IEA), copper consumption could surge by up to 40% by 2040, as various governments pursue their Net Zero objectives to reduce greenhouse gas emissions. This has prompted mining companies to ramp up their production and expand their operations through acquisitions and mergers.
Teck Resources announced in February 2023 that it would divide its steelmaking coal segment into Teck Metals and Elk Valley Resources. Teck Metals will run and develop its base metals operations, including copper mines in Chile and British Columbia, zinc mines in Alaska and Chile, lead-zinc smelters in Trail, British Columbia, and copper possibilities in Chile and Peru.
Newcrest Mining accepts $19.2 billion Newmont takeover deal
Newcrest’s Cadia operations, one of Australia’s largest gold mines
Newcrest Mining Ltd. has agreed to a takeover deal with Newmont Corp. worth about A$28.8 billion ($19.2 billion) to create the world’s biggest gold producer.
Newcrest shareholders will get 0.4 shares in Newmont for every Newcrest share they own, giving them 31% ownership of the combined group, the Melbourne-based company said Monday, confirming a Bloomberg News report Sunday.
The deal gives Newcrest an implied enterprise value of A$28.8 billion, which includes net debt.
Newcrest will also pay a franked special pre-completion dividend of up to $1.10 per share. Newcrest had earlier agreed to extend Newmont’s due-diligence rights to May 18 after an earlier deadline lapsed, it said Thursday.
“This transaction will combine two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline,” Newcrest’s chairman, Peter Tomsett, said in the statement.
The enlarged Newmont will have gold assets in North and South America, Africa, Australia and Papua New Guinea. It will also expand its exposure to copper, a key metal in the clean energy transition.
A deal would likely mark the apogee of a furious five-year consolidation among the world’s largest gold miners that began with Barrick Gold Corp.’s $18 billion pursuit of Randgold Resources Ltd. and includes a $5.2 billion takeover of Yamana Gold Inc. that was completed in March. Newmont’s proposal comes just weeks after the spot trading price of bullion approached an all-time record amid a global stagflation watch.