In April, BHP tabled an initial £31.1 billion ($20.4 billion) scrip proposal for Anglo, and after it was rejected, it increased the proposed bid twice, which enticed Anglo to negotiate over a possible binding offer.

On May 29, BHP walked away, citing capital discipline and “South African regulatory risk and cost”.

Under UK takeover laws, BHP has to wait at least six months before it can consider another tilt for Anglo, a period which is due to expire late next month.

Speaking at BHP’s annual general meeting in Brisbane, Australia, this morning, chairman Ken MacKenzie said the company’s approach to Anglo was deliberate rather than opportunistic. 

“We plan these things and keep an eye on market activity and it looked like where their share price was trading sort of came within the window of opportunity that made sense for how we were valuing the company,” he said in response to a shareholder question.

“So we moved and we thought there was an opportunity here to create something unique and special, a sort of ‘one plus one equals three’ opportunity. By putting these companies together, there were a lot of synergies and opportunities, and we had a clear view in our mind around the value that we could create and the value that we were prepared to pay. 

“Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute, and so they moved on. And quite frankly, so have we. 

“It was never a transaction that we had to do. It was a nice to have, not a must do. And so we’ve moved on as well.”

Remain disciplined

In late July, BHP and Lundin Mining (TSX: LUN) announced a joint $3 billion bid for Toronto-listed copper explorer Filo Corp (TSX: FIL), owner of the Filo del Sol copper project on the border of Chile and Argentina.

BHP will also buy 50% of Lundin’s Josemaria project for US$690 million.

Chief executive Mike Henry said once the transactions closed in the March 2025 quarter, the company would “have the opportunity to advance what we consider to be one of the most significant copper discoveries in decades”.

Henry stressed that mergers and acquisitions were only one growth option for the company.

“It’s really, really, really important that we all understand that transactions are about one avenue for growth for the company – they’re actually not the fundamental avenue,” he said.

“Before that, we have growing value through productivity – still the biggest single value growth lever for the company. We have greenfields exploration. We’ve increased our activity in greenfields exploration for copper resources globally. 

“We have getting more out of the resources that we already have, and BHP has the largest endowment of copper resources of any company in the world, and we see the fruits of that coming through now.”

BHP is aiming to increase South Australia copper production from 310,000-340,000 tonnes per annum to 500,000tpa in the early 2030s and 650,000tpa in the mid-2030s, and add 200,000tpa of production at Escondida in Chile.

“So we have lots of attractive growth ahead of us before we start contemplating acquisitions,” Henry said. 

“Now, where we do consider acquisitions, we are very disciplined about it. It has to be for the right assets – large, long-life, low-cost – and there has to be an opportunity for BHP to unlock further value through our ownership, through synergies.”

Facing protests

Hundreds of people rallied outside the meeting in Brisbane this morning, protesting BHP’s opposition to Australia’s new labor laws, as well as the miner’s coal operations.

BHP has been a vocal opponent of the Same Job, Same Pay industrial relations legislation, which have passed through Australia’s Parliament and will become law on Friday.

BHP has argued the legislation would require it to pay inexperienced labor hire workers the same as a worker with decades of experience, impacting costs and productivity.

While the issue was not mentioned during the AGM, almost 500 members of the Mining and Energy Union marched to protest BHP’s opposition to the legislation.

Roughly two hours in, the meeting was paused for several moments after being interrupted by anti-coal protesters.

The meeting received only two questions on coal, around reducing methane emissions and growth.

Henry reiterated that BHP would not be investing in growth in its Queensland coal business.

MacKenzie said BHP was investing “appropriate capital” in the development of green steel initiatives.

“We haven’t identified the right pathway yet on steel decarbonization,” he said. 

“We’re at the front end of the funnel where we’re looking at opportunities, and we’re trying to narrow it down to what we think will be the successful technology going forward. 

“I think the amount of money right now is appropriate, but if commercial opportunities arise going forward, the capital will flow.”

Centamin noted that the necessary majority of its shareholders, equivalent to more than 75% of the voting rights, backed the deal at a court and general meeting held on Monday.

The deal would make the South African gold miner the world’s fourth largest producer of the precious metal as it hands it the key to the Sukari mine in Egypt.

Sukari is the country’s largest and first modern gold operation, as well as one of the world’s largest producing mines.

The addition of the Sukari mine to its portfolio will increase AngloGold’s annual production by around 450,000 ounces, bringing its total output to 3.1 million ounces. 

Since production began in 2009, Sukari has produced more than 5.9 million ounces of gold, and has a projected mine life of 14 years.

The acquisition of Centamin has already received clearance from Egypt’s competition authorities.

There is still one obstacle to overcome, AngloGold said, which is the approval of the scheme by the Jersey Court, withe the hearing scheduled for November 20.

Once the deal goes through, AngloGold shareholders will hold about 83.6% of the combined entity, while Centamin investors will own roughly 16.4% of the enlarged share capital.

The acquisition is the latest in a flurry of gold deals fuelled by record-breaking prices for the precious metal. It is also the latest blow to the London stock market, which has seen an exodus of companies over the past few years. The exchange has faced challenges since Randgold’s delisting after its merger with Barrick Gold in 2018, and the massive departure of Russian gold miners following Moscow’s invasion of Ukraine.

Cadia becomes Newmont’s first site globally to receive these awards after successfully meeting more than 30 criteria needed in critical areas including environment, community, human rights and governance, amongst others.

Cadia is currently host to Australia’s largest underground mine, and now becomes the third copper mine in the country to receive The Copper Mark. It is also the only operating molybdenum mine in Australia, thus becoming the first to achieve The Molybdenum Mark.

The Copper Mark represents the leading assurance framework to promote responsible, sustainable and ethical practices across the copper, molybdenum, nickel and zinc value chains.

“Meeting growing global demand for copper brings an obligation to sustainability and responsible mining which prioritizes environmental stewardship, social responsibility and economic development for the communities in which we operate,” commented Newmont’s chief safety and sustainability officer Suzy Retallack.

In achieving The Copper Mark, she said the company’s global customers can now choose to source copper concentrate from an independently evaluated mine that “meets the highest standards in environmental, social and governance practices, responding to the increasing demand for sustainable supply chains.”

With this, about 35% of Australia’s copper is produced at sites that have obtained The Copper Mark, noted Michèle Brülhart, The Copper Mark’s executive director.

The Cadia operation is located approximately 25 km south-southwest of Orange in New South Wales and 250 km west of Sydney. It comprises the Cadia East underground mine, one of the largest gold and copper deposits in the world, and the Ridgeway underground mine, which is currently in care and maintenance.

In 2020, Cadia entered into a 15-year renewable power purchase agreement (PPA) with Tilt Renewables Limited to buy 55% of the wind farm’s output. Now fully operational, Rye Park is supplying approximately half of Cadia’s power needs.

“Cadia’s commitment to the community supported an investment of almost A$6 million in the 18 months to December 2023 to support community projects, education and infrastructure,” Retallack said.

The facility will be located in Sohar, a port city about 200 km north of the capital, Muscat. It will have the capacity to process 18 million tonnes of low-grade iron ore a year starting in 2027. The aim is to produce 12.6 million tonnes of high-grade concentrate annually.

Vale will invest $227 million to connect the plant to its pelletizing facilities in the region. Jinnan will invest about $400 million to build and operate the plant, which it will own.

“This project brings together Brazil’s capacity to produce high-quality iron ore and Oman’s prime location and infrastructure to enhance integration between the two countries, while also reinforcing our partnership with China through Jinnan,” Vale’s new CEO Gustavo Pimenta said in a release.

The iron ore is to be transformed into a higher-quality concentrate for the production of premium pellets and, in the future, briquettes, with a reduced environmental impact.

This marks Jinnan’s first project in Oman, supporting the country’s industrial ambitions. The company is known for its leading edge in magnetic separation technology.

Vale intends to replicate this investment model across its mega hubs. The miner has announced three mega hubs in the Middle East (Oman, Saudi Arabia, and the United Arab Emirates) and has signed agreements to develop similar projects in Brazil and the United States.

Shares in Vale gained 1.7% to $62.76 apiece by mid-Monday afternoon in New York, valuing the company at $284.8 billion.

The total stock market valuation of the world’s biggest mining companies is up a fairly modest 8% year to end-September and despite the good run is still $240 billion below the peak hit in the second quarter of 2022. And judging by the performance of the top tier in the final quarter (BHP down 8% QTD, Rio Tinto –5%, Vale –3%, Glencore –5%, Newmont –9%, Zijin –5%, Freeport –7%) the gap won’t be closing anytime soon.

In contrast, Nvidia — the maker of chips highly prized for artificial intelligence (AI) computing — is up nearly 200% so far this year (and 2,600% over five). When comparing the graphics card maker’s stock valuation to the mining industry’s collective worth, it’s difficult not to wonder if something is not awry with how global investors appraise the industrial economy.  

Should Nvidia (or Microsoft or Apple for that matter) be worth more than twice the top 50 miners? Outside the top 50 the average market cap quickly shrinks to the low teens so Nvidia is in fact worth more than the entire listed mining industry. 

Even when extending the top 50 into metals and energy –  steel, aluminium and electricity companies often operate their own mines – Nvidia can still throw shade. BHP does not even crack the top 100 most valuable companies in the world and is worth less than Booking.com, and Temu and Zara’s owners, none of which can exactly be called the building blocks of the global economy. 

Nvidia briefly surpassed Apple on Friday to become the world’s most valuable company. Its market capitalization is approximately $3.5 trillion, just below Apple’s, which remains the highest-valued firm globally.

Under a private placement agreement announced on Friday, Agnico will purchase approximately 33.9 million units of ATEX at C$1.63 per unit, representing a 15% premium over ATEX’s stock price from a week ago and 12.4% over its previous day’s closing price.

By 11:10 a.m. ET in Toronto, ATEX Resources traded 11% higher at C$1.61, having touched a 52-week high of C$1.66 a share earlier in the session. The company has a market capitalization of C$336.2 million ($242.3 million)

The Agnico investment will support ATEX’s exploration activities at the Valeriano project. The property covers approximately 61.3 sq. km and is host to a large copper-gold porphyry deposit, below a near-surface oxidized epithermal gold deposit that extends from surface to a depth of 100 metres.

Since 2021, ATEX has completed multiple phases of drilling to test the mineralization at Valeriano, beginning with the gold oxide deposit in the initial phase then extending to the porphyry system.

Last year, it produced a mineral resource estimate totalling 1.44 billion tonnes grading 0.49% copper and 0.21 g/t gold, all in the inferred category. The porphyry deposit makes up most of this resource — 1.41 billion tonnes at 0.50% copper and 0.20 g/t — and contains a higher-grade core totaling 200 million tonnes at 0.62% copper and 0.29 g/t gold.

“This transaction results in ATEX being well capitalized through 2025 to execute on our future drill programs and to continue defining this deposit while also continuing to de-risk and conduct engineering studies,” commented ATEX CEO Ben Pullinger in a news release.

In addition to the private placement, the company also announced that it will repay the entire outstanding balance on its credit facility totaling $15 million through the issuance of equity. A total of 7.9 million units at the same price of the offering (C$1.63) and 5.5 million shares priced at C$1.42 each will be issued to its lenders (Firelight Investments, Beedie Capital and Trinity Capital Partners).

Moreover, ATEX has arranged a private placement with recently appointed board member Rick McCreary, who will purchase C$500,000 worth of units, also at the same price of the private placement.

Upon closing of the above transactions, Agnico would become one of ATEX’s largest shareholders, with a shareholding of 13% on an undiluted basis.

The agreement was signed in Brasília, the capital city, with President Luiz Inácio Lula da Silva in attendance.

In February, a federal judge ruled that the companies must pay up to 47.6 billion reais ($8.4 billion) in damages for the dam collapse, though the decision is still subject to appeal.

The Fundão dam burst occurred on November 5, 2015. Approximately 40 million cubic meters of mining waste destroyed communities and livelihoods, contaminated the Rio Doce and its tributaries, and reached the Atlantic Ocean.

In total, 49 municipalities were affected, either directly or indirectly, and 19 people lost their lives.

According to BHP, the agreement builds on the existing remediation and compensation efforts by the Renova Foundation in Brazil, which have thus far totalled 38 billion reais ($7.9 billion).

In addition to the amount already spent by Renova, the agreement includes 100 billion reais ($18 billion) in installments over 20 years to public authorities, municipalities, Indigenous peoples and traditional communities. Additional performance obligations for Samarco, estimated at 32 billion reais ($5.8 billion), are also included.

Payments to be completed over 15 years

The compensation covers programs for universal water sanitation, health initiatives, economic recovery, infrastructure improvements, and investment funds in education, culture, sports and food security.

The agreement also includes compensation payments of 95,000 reais ($17,000) per person for eligible fishermen and farmers in the affected areas.

“BHP Brasil’s expected outflows under the agreement align with BHP’s FY2024 Samarco dam failure provision of $6.5 billion, and no update is required to the existing provision at this time,” BHP stated.

“The Samarco Fundão dam failure was a terrible tragedy. It should never have happened and must never be forgotten,” said BHP CEO Mike Henry.

Payments are expected to be completed over approximately 15 years, with the first installment of 5 billion reais ($880 million) due within 30 days. The agreement remains subject to approval by the Brazilian Supreme Court.

BHP still faces a potential $47 billion payout in damages in a lawsuit in London’s High Court. The settlement in Brazil will not impact the UK case.

The plaintiffs include over 600,000 Brazilian citizens, 46 municipalities and 2,000 businesses, all challenging BHP’s role in the disaster.

In July, BHP and Vale agreed to equally share the cost of any damages resulting from the UK proceedings.

Shares of BHP rose 0.7% by 12:00 p.m. EDT. Vale stocks were up 3.4%.

Read More: BHP says claim it put profit over safety ‘unjustified’ in Brazilian dam collapse case

The Arkansas Oil and Gas Commission on Nov. 4 is to hear an application filed by those companies and others to potentially set the royalty rate. They have proposed a 1.82% royalty, while landowners are seeking 12.5%, according to BMO Capital Markets mining analyst Greg Jones.

The landowners’ proposal is “a level that would strain project cash flows based on our modelling,” Jones said in a note on Thursday. “We assume a 2.5% royalty in our base case, within the range of royalties applied in other jurisdictions. We anticipate the commission will take a balanced approach to support development of Arkansas’s lithium industry.”

This week, the United States Geological Survey and the Arkansas government said they’d found enough lithium in brine in the Smackover Formation within the state to supply global demand. They estimated the amount in the formation’s porous limestone left from an ancient sea at 5 million tonnes to 19 million tonnes. Scientists used water testing and machine learning to calculate the resource. The formation stretches from Texas to Florida, suggesting there could be even more lithium.

Standard project

The discovery comes as Standard and partner Equinor (NYSE: EQNR), Norway’s state-owned petroleum company, develop their South West Arkansas project in the same geologic structure towards a definitive feasibility study and formal investment decision next year. Equinor paid $30 million in May for 45% of Standard’s lithium projects in southwest Arkansas and East Texas, plus a pledge to invest $130 million more in the projects if they go ahead.

The US Department of Energy said on Sept. 20 it’s considering funding the project with as much as $225 million, one of the largest ever US government grants for critical minerals.

It’s part of the Biden administration’s push to source domestically more of the critical minerals needed for the energy transition. The departments of energy and defence as well as the Export-Import Bank are potentially able to allocate billions of dollars in funding for projects from mining and processing to finished products like vehicles. Even projects in Canada are getting financed. But the industry faces significant challenges as the price of lithium has crashed over the past two years.

Royalty faceoff

The South Arkansas Minerals Association, which represents the landowners, says the companies haven’t provided enough financial information to justify their proposed rate, BMO reports.

An Oct. 11 pre-hearing referenced some of the measures in state law for calculating the rate, such as the brine has to be profitably extracted before a rate can be applied, BMO said. But even the hearing officer noted it was unclear what evidence the commission would require to ensure a fair and equitable rate.

The companies’ proposed 1.82% royalty is based on precedent from a 2007 commission order, BMO said. The ruling determined the additional compensation attributable was 5.65¢ per barrel of brine. That equalled 1.82% of the per-acre value of the bromine extracted.

Other jurisdictions have different rates, according to BMO. California charges per tonne of lithium carbonate-equivalent, from $400 to $800, depending on production totals. Nevada has a 5% tax on net lithium sales.

Western Australia levies a 5% royalty on revenue from sales of spodumene concentrate, which is from hard rock lithium ore, not brine. Argentinian provinces apply a 3% royalty to extracted minerals. Brazil charges a 2% royalty on gross income from lithium sales with deductions allowed for taxes paid on commercial sales.

Direct extraction

The projects in Arkansas, and in some other places where there is underground brine, such as Chile and Alberta, plan to use the emerging technology of direct lithium extraction (DLE). It’s somewhat like pumping crude oil, which would seem to be an opportunity for fossil fuel companies intent on expanding their energy focus. Miners can also benefit from vast petro-coffers. The combination is already tapping some Prairie former oil fields that have brine.

ExxonMobil is evaluating potential production costs after drilling exploratory wells at the 486-sq.-km Mobil Lithium project on the Smackover Formation this year. It plans initial production of the battery metal in 2027. By 2030 it wants to produce enough for 1 million vehicles.

In southern California, Occidental Petroleum and a unit of Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) have begun feasibility testing to produce battery-grade lithium from the brine of 10 geothermal power plants.

In Alberta, E3 Lithium (TSXV: ETL) is advancing its $2.5 billion capex Clearwater project on one of Canada’s largest resources of the battery metal. It’s tapping former oil wells once pumped by ExxonMobil unit Imperial Oil (TSX: IMO), which is also helping fund the prefeasibility-stage project.

DLE advantages

DLE may cost more than using conventional brine evaporation ponds, but it can produce the battery metal in hours instead of months, can recover around double the metal, and occupies a much smaller footprint.

In Chile, where evaporation ponds dominate, heavyweight producer SQM (NYSE: SQM) has been testing various DLE technologies including a collaboration with French chemical company Adionics.

Their trials have shown recovery rates reaching up to 98% from brine at the Salar de Atacama. SQM aims to integrate DLE into its operations as part of Chile’s new public-private model for lithium production​.

In June, McEwen Copper announced a private placement financing of up to $70 million through the issuance of approximately 2.33 million shares at $30 per share. Under the first tranche, the McEwen unit received a $14 million investment its parent company and a $5 million investment from Rob McEwen, its chairman and chief owner.

Nuton’s $35 million investment represents the second tranche of that financing, with the purchase of nearly 1.17 million shares. Two other investors also participated in this tranche for a total of $2 million.

Together with the first tranche, McEwen Copper has now raised a total of $56 million for the Los Azules project.

Los Azules project

Los Azules is an open-pit copper deposit located 80 km northwest of the town of Calingasta and 6 km east of the border with Chile at an elevation of 3,500 metres in the Andes Mountains. The extent of mineralization along strike exceeds 4 km and the distance across strike is approximately 2.2 km.

The copper resource contains 10.9 billion lb. in ore that grades 0.40% copper in the indicated category and 26.7 billion lb. in material averaging 0.31% copper in the inferred category. This resource is expected to support average production of 322 million lb. of copper in cathodes per year over a projected 27-year life.

According to a June 2023 preliminary economic assessment, Los Azules would have an estimated after-tax net present value (at a discount rate of 8%) of $2.7 billion and internal rate of return of 21.2%, based on an assumed copper price of $3.75/lb. Its payback period is 3.2 years.

McEwen Copper is currently working a bankable feasibility study for the project, which is scheduled for publication in the first half of 2025.

Shareholding update

The copper subsidiary was created by McEwen Mining in mid-2021 with a view of maximizing the value of its copper assets. A year later, it received its first investment from Nuton, while also establishing a partnership with the Rio venture to assess the potential application of its heap leach technology at Los Azules.

According to the companies, heap leaching would offer superior economic and environmental benefits over the conventional milling methods. The project is also expected to be powered by 100% renewable energy, with a commitment to reach carbon neutrality by 2038.

Following the latest round of financing, Nuton now owns 17.2% of McEwen Copper on a fully diluted basis, nearly doubling its initial shareholding. Its other notable shareholders are: McEwen Mining (46.4%), Stellantis (18.3%), Rob McEwen (12.7%) and Victor Smorgon Group 3.0%.

With the new share issuances, McEwen Copper now has approximately 32.8 million common shares outstanding, giving it a post-money market value of $984 million.

Other notable names include Anglo American (LON: AAL), Newmont (TSX: NGT, NYSE: NEM), Vale (NYSE: VALE), Agnico Eagle Mines (TSX, NYSE: AEM), Glencore (LON: GLEN), AngloGold Ashanti (NYSE: AU) and Teck Resources (TSX: TECK.A, TECK.B, NYSE: TECK).

To make the list, Forbes teamed up with market research firm Statista and surveyed more than 300,000 employees in over 50 countries who work for multinational corporate groups that meet the following criteria: employ more than 1,000 workers and operate in at least two of the six continental regions (Africa, Asia, Europe, Latin America and the Caribbean, North America and Oceania).

Respondents were asked whether they would recommend their company to family or friends, and to rate it based on such criteria as salary, talent development and remote work options. They could also rate companies they knew through their own industry knowledge and through friends and family who worked there.

Survey responses were then analyzed and tallied — along with data from the previous three years — with a heavier weight placed on the more recent data and evaluations from current employees.

While the number of honorees per country varied based on the population and qualifying companies in each area, a total of 850 companies spanning 48 countries earned a ranking on Forbes’ final list.

BHP topped all mining companies under the raw materials category, with a ranking of 90. After that, Anglo American was the highest ranked company at No. 251, followed by Newmont at No. 474, Vale at No. 502, Agnico at No. 649, Glencore at No. 675, AngloGold at No. 789, Teck at No. 797 and Poland’s KGHM at No. 823.

The trial, expected to last up to 12 weeks, will determine whether BHP is legally responsible for the collapse of the Fundão tailings dam in Minas Gerais, Brazil. The structure failure caused a massive flood that claimed 19 lives, destroyed villages and severely polluted water sources for local communities. The dam was owned by Samarco, a joint venture between BHP and Brazilian mining giant Vale (NYSE: VALE).

The case has been winding its way through the English judicial system for six years, with various judges holding conflicting opinions on whether the case can proceed. In 2022, appeal judges cleared the path for a full trial to take place.

The plaintiffs in the case include more than 600,000 Brazilian citizens, 46 municipalities and 2,000 businesses, all challenging BHP’s role in the disaster. Lawyers representing the victims argued on Monday that BHP has been attempting to evade its responsibility.

The world’s largest mining company is disputing liability, arguing that the London lawsuit duplicates legal proceedings and reparation programs in Brazil, and should be dismissed.

It also claims that nearly $8 billion has already been paid to those affected through the Renova Foundation, with around $1.7 billion going to claimants in the English case.

BHP’s lawyers stated in court that no law or contract imposes a duty of safety on the parent company of a non-controlling shareholder or the other parent company in the same group. They also argued the miner did not breach any safety duty, nor did its actions cause the collapse.

BHP further described parts of the lawsuit as “implausible or exaggerated.”

Settlement in Brazil

This trial comes shortly after BHP and Vale announced they were in talks with Brazilian authorities regarding a potential settlement of $31.7 billion to compensate for the damage caused to people, communities, and the environment.

Pogust Goodhead, the law firm representing the plaintiffs in London, said that the settlement talks in Brazil will not affect the UK case. 

“The timing of these negotiations only highlights how the companies responsible for Brazil’s largest environmental disaster are doing everything possible to prevent the victims from obtaining justice. It reflects the same shameful conduct they have displayed over the past nine years,” the firm said in a statement.

The multi-week hearing, the largest group litigation in English legal history, will also examine whether Brazilian municipalities can bring legal action, the effect of any agreements made by English claimants with BHP, and whether the claims were filed too late.

BHP and Vale agreed in July to equally share the cost of any damages related to proceedings in the UK.

The council of Loznica, population around 20,000 about 100 km west of Belgrade, is deciding whether to amend its official plan to allow the 250-hectare development. The hard-rock lithium project has sparked massive protests while see-sawing between official support and rejection for years.

Slated to start in 2028, it would produce 58,000 tonnes a year of battery-grade lithium carbonate, about 17% of European demand and enough for one million electric vehicles. The mine might last 40 years. Rio, the world’s second largest miner by stock market value, and the government faced mass rallies again this week, swollen by an unlikely combination of causes.

“Rio Tinto is the hottest issue in the country right now,” Vuk Vuksanovic, an associate at the London School of Economics’ Ideas foreign policy think tank, said by email on Friday.

“The anti-lithium protests and environmentalism are the only things that at least temporarily unite left and right in Serbia. The left perceives it as a resistance against the arbitrary and illiberal governance of the incumbent coalition. The right perceives it as a struggle against Western dominance.”

Court ruling

Loznica council hasn’t set date for its vote, but local Balkan Insights media said on X it’s due this month. In August, Serbia’s Constitutional Court sided with Rio in overturning a 2022 government decision to block the project. Pundits note Serbian President Aleksandar Vučić might have cancelled the project’s permit in January 2022 in a ploy to win re-election that April.

But analysts view Vučić as pro-mining. He said in June he would revive the project, then signed a partnership with the European Union (it’s not a member) in July to supply critical minerals. His administration defeated an opposition-led motion on Oct. 10 to ban lithium exploration.

Vučić’s critics say he’s tightened control over media and rewarded supporters with government jobs. Whether he would allow a local council-level vote to derail the Jadar Valley project remains to be seen. But miners have at times benefited from authoritarian governments’ willingness to push through projects.

And Rio is no stranger to difficult ventures. It’s advancing the Simandou high-grade iron ore deposit in Guinea where it’s helping build a 600-km rail line and port. It’s considered Africa’s largest mining and related infrastructure project. In Arizona, the company is facing opposition to its Resolution copper project from the Apache Stronghold coalition of tribes.

Big M&A

Rio has little experience in lithium, with most of its production in iron ore, aluminum and copper. However, this month it announced the $6.7 billion acquisition of Arcadium Lithium (ASX: LTM; NYSE: ALTM) to become the third-largest lithium miner. It has also been developing the Rincon lithium brine project in Argentina. It expects first lithium from a pilot plant, and a feasibility study and final investment decision on the wider project this quarter.

At Jadar, Rio plans to apply in December for a permit allowing geotechnical work while prepping an environmental impact assessment that could take two years to complete. In third-quarter production results this week, Rio repeated comments about the project:

“We continue to believe that the Jadar project has the potential to be a world-class lithium-borates asset that could act as a catalyst for the development of other industries and thousands of jobs for current and future generations in Serbia.”

Last month, Rio CEO Jakob Stausholm flew to Serbia to participate in public information meetings that were broadcast on television. He was combatting what the company and Serbia’s mining and energy ministry have called disinformation campaigns. Media have reported the spread of online conspiracy theories like the project will trigger sulphuric acid rain, pollute drinking water or even secretly mine uranium.

Even so, Stausholm said locals have pertinent concerns about air quality and soil contamination that he and the company are working to allay. Rio seeks “to encourage an open, fact-based dialogue” in legally mandated public consultations, it said this week.

Environmental opposition

The project, which began after Rio geologists discovered the hard rock deposit in 2004, has fostered strong opposition throughout its history, said Teresa Kramarz, assistant professor at the University of Toronto’s School of the Environment. Some studies after exploration showed elevated boron, arsenic, and lithium in nearby rivers, she said.

“These protests and environmental costs highlight the need for wider conversations about trade-offs,” Teresa Kramarz, assistant professor at the University of Toronto’s School of the Environment, said by email.

“The idea that there’s only one way to decarbonize, and people will inevitably accept transfers of risk from one population to another or trade one type of risk for another is not going to work – particularly for those who experience disproportionate disadvantages and inequitable outcomes.”

Some analysts cited by The Wall St. Journal say the current opposition since the project’s revival is remarkable for its intensity. The US State Department has said the disinformation resembles Russian campaigns, like those to discourage shale-gas drilling to maintain Russian energy dominance in Europe. Others said it’s an attempt to dissuade Belgrade’s drift to the West and potential EU membership.

Cynical left

Vuksanovic disagreed, while still noting the impact on the West.

“The Russians are not behind it, but they take pleasure in the fact that the nationalist element of this protest is getting stronger,” he told The Northern Miner.

“Moreover, even the left, civic, pro-EU segments of Serbian society are getting increasingly cynical that the West and Europe are willing to engage the incumbent government and tolerate its domestic transgressions for the sake of lithium exploitation, weakening the EU and the US’s prestige in the country even further.”

Mikhail Korostikov, a visiting fellow at the Belgrade Centre for Security Policy, said vast numbers of Serbians oppose the project because they don’t believe the government is capable of enforcing environmental regulations. Even if they could, the rules aren’t strong enough, Korostikov said in a report last month for the centre.

He suggested importing EU environmental structure to oversee the project and trying to create as many jobs linked to the mine as possible in areas of procurement and mineral processing. Defeating the opposition requires making the project’s benefits more significant than any environmental consequences, he said.

“This will require serious courage and strategic vision on the part of all those involved in the political process, but it is essential,” Korostikov said. “There may not be another opportunity like this to integrate into the new economy and gain a bargaining leverage with the EU in the coming decades.”

Vale had already said a deal was expected to be reached in October, but no specific date had been set. Brazilian newspaper O Globo reported the date earlier on Friday.

The collapse of the dam at a Samarco iron ore mine near the city of Mariana nine years ago unleashed a wave of toxic tailings that killed 19 people, left hundreds homeless, flooded forests and polluted the length of the Doce River.

BHP released a statement late Friday, noting the companies are “continuing to negotiate a full and final settlement” of the framework agreement obligations, the federal public prosecution office civil claim and other claims by the public authorities relating to Samarco’s Fundão dam failure.

The Australian miner also stated that the parties are negotiating a settlement proposal that would provide a total financial value of approximately 170 billion reais ($31.7 billion) on a 100% basis to be delivered to the people, communities and environment impacted by the dam failure.

BHP added the negotiations between the parties are ongoing and no final agreement has been reached on the settlement amount or terms.

Vale on Friday forecast that its third quarter earnings will reflect 5.3 billion reais ($930.90 million) in new liabilities related to the Mariana dam collapse.

(With files from Reuters)

The new agreement, Newmont said, reflects the mutual commitment of all parties and is the outcome of open dialogue and safeguards the rights of all workers and provides a solid foundation for continuing operations at Peñasquito.

In 2023, employees at Peñasquito, Mexico’s largest gold mine, downed tools for over four months.

Newmont pegged the financial impact of the dispute at approximately $1 million a day in maintenance costs and $2.7 million a day in lost revenue.

The work stoppage was the third labour dispute at Peñasquito since the company acquired the mine through its merger with Goldcorp Inc. in 2019.

“This is like the early days in Chile, the Escondida discoveries and so on,” he said at the Gold Forum Americas in Colorado Springs, referring to Pakistan’s untapped discovery potential.

Bristow said supply constraints for gold and copper and the strong demand are pushing prices higher, while both suffer from weak development pipelines. The company is expanding its Lumwana copper mine in Zambia and Reko Diq in Pakistan, both of which will add to its copper output while driving local economic development.

“Copper has no substitutes,” Bristow said. “It is as strategic as gold is precious, and we’re bringing new copper projects online just as the supply squeeze hits.”

Bristow also addressed the suspension of operations at Barrick’s Porgera gold mine in Papua New Guinea last month due to local clan violence. He reinforced the company’s commitment to making a positive social and environmental impact, especially in emerging markets.

Watch the final part of Bristow’s three-part interview with The Northern Miner’s western editor, Henry Lazenby.

While all workers and the main infrastructure at the site are reported safe, there has been an “extensive loss” of piping infrastructure. Orders for replacements have already been placed, the South African miner said in a statement on Friday.

Zinc output this quarter is expected to fall short by nearly 9,700 tonnes due to the stoppage, which will likely last until mid-November, according to the statement. Century produced 76,000 tonnes of zinc last year.

“This incident once again highlights the threat posed by climate change, which is leading to significant damage from extreme weather-related events worldwide,” CEO Neal Froneman said.

“This setback is unfortunate, considering the Century operation had recovered well after heavy rains affected Q1 2024,” he added.

The Century zinc mine began production in 1999. Operations were placed on care and maintenance in 2016 after the depletion of the original open-pit reserves, following 16 years of producing and processing an average of 475,000 tonnes of zinc and 50,000 tonnes of lead concentrate per annum.

The mine is expected to run out of ore in 2027, but its indicated and inferred resources present an opportunity to extend operations beyond 2030, the company has said.

The company’s plan is to replace production from the depleting Sossego open pit mine with output from the new copper operation by 2026.

Bacaba will use Sossego’s infrastructure, guaranteeing its operation for at least another eight years, Vale said.

The miner noted the project involves mining activities and the transportation of ore for crushing and processing at the Sossego Operating Unit, located around 10 km from the Bacaba deposit.

Vale is on track to produce between 320,000 and 355,000 tonnes of copper this year, but it sees the potential to expand production capacity to about 500,000 tonnes of copper by 2028.

The miner said that improvements to its Salobo and Sossego mines in Brazil will help achieve the production goal. Last year, it produced 321,000 tonnes metal last year.

Vale, a top iron ore and nickel producer, has fallen behind when it comes to copper, its new chief executive, Gustavo Pimenta, said earlier this month.

The company owns 90% of Vale Base Metals, which groups together its nickel and copper assets.

The storms, which lashed the region with wind speeds exceeding 130 km/h and over 130,000 lightning strikes within 24 hours, severely impacted power supplies to the mine.

South Australian Energy Minister, Tom Koutsantonis, spoke to Australian Broadcasting Corporation (ABC), confirming that the Olympic Dam had been significantly affected. 

The authority explained that while BHP has managed to maintain essential power through backup systems, mining operations will remain shut down for about seven days. 

The reason for the halt is primarily due to ventilation concerns within the mine, a critical factor for maintaining air quality and preventing the accumulation of harmful gases that could potentially lead to fires or explosions.

BHP is now assessing the full extent of the damage and evaluating the timeframe needed to resume normal production at the mine, which is Australia’s second-largest copper operation. A spokesperson confirmed to MINING.COM that the mine’s surface operations have been switched to minimal maintenance mode, with on-site backup generators providing necessary power.

This disruption comes as a reminder of a similar event in 2016, when a statewide blackout caused by a storm kept the Olympic Dam idled for two weeks, reducing daily copper output by 567 tonnes. 

The giant mine, located 560 kilometres north of Adelaide, is a critical asset for BHP as it generates significant quantities of copper, uranium and gold.

The mining giant’s copper production from Olympic Dam in the 2024 fiscal year was reported at 322,000 metric tons. BHP aims to ramp up production in South Australia to 500,000 tonnes annually by the early 2030s, with a potential future increase to 650,000 tonnes by the mid-2030s.

The company is contemplating an expansion of the mine’s copper smelter and refinery, with a final investment decision expected in 2027.

“The plaintiffs are engaging in a classic case of forum-shopping: deliberately seeking to implicate Barrick in a case in Ontario,” a spokesperson for Barrick at New York public relations firm Gladstone Place Partners told The Northern Miner on Tuesday by email. “The right forum to consider the claims of the plaintiffs is Tanzania.”

Barrick, the second-biggest gold miner by market value, could face a civil trial seeking unspecified damages for 32 Tanzanians living near North Mara in the East African country. They’re backed by Toronto law firm Waddell Phillips, Vancouver’s CFM Lawyers and anti-mining groups such as the Ottawa-based MiningWatch Canada. North Mara, which Barrick took over in 2019, produced about 63,000 oz. in this year’s second quarter.

Killings alleged

“Barrick’s security strategy for the North Mara mine effectively converts the Tanzanian police assigned to operate in and around the mine into a private and heavily armed security force for the mine,” the plaintiffs said in their November 2023 statement of claim.

“This security strategy ‘has led directly to extensive human rights abuses’ and ‘acts of extreme violence committed by the Mine Police’ resulting in deaths, shootings, beatings and torture of local villagers,” MiningWatch said in a release on Tuesday citing the statement of claim.

Barrick has settled two previous cases brought by locals near the mine to court in the United Kingdom since 2013. The most recent settlement, which had confidential terms for 14 villagers, was in March. The current case started in late 2022 with 21 plaintiffs before 11 more joined in February this year.

Tanzanian court

The Ontario Superior Court in Toronto is hearing Barrick’s arguments this week to permanently stay or dismiss the case. Part of the miner’s stance is that Tanzania, like Canada, has a legal system based on UK law. The case also has witnesses who speak Swahili or other local languages but not English.

Barrick faces serious allegations of complicity in human rights violations and should be able to defend itself locally, PR firm Gladstone said.

“Everything related to this case took place in Tanzania,” the spokesperson for Barrick said. “Plaintiffs’ attempts to dismiss the independence, sophistication or ability of the Tanzanian courts to adjudicate fairly and properly over the matters at issue are without merit.”

However, Barrick’s legal team could encounter some precedents from lawsuits against Hudbay Minerals (TSX: HBM; NYSE: HBM). The same Ontario court in 2013 allowed cases brought by indigenous Guatemalans to proceed. They sought damages from the Canadian mining company for alleged human rights abuses including a killing. One of the cases predated Hudbay’s takeover of the Fenix nickel mine in 2008. The were all finally settled this month for undisclosed terms.

Barrick holds 84% of North Mara Gold Mine Ltd. and the Tanzanian government owns the remaining 16%. The subsidiary’s agreements with the Tanzania police are governed by the country’s laws, Gladstone said.

Overseas accountability

Company watchdogs, including the Canadian Network on Corporate Accountability and the Justice and Corporate Accountability Project, want Canada to pass tougher due diligence legislation that might prevent violence and target actions abroad by Canadian operations.

“This lawsuit is a critical step toward properly adjudicating the claims of the Kuria people, Professor Sara Ghebremusse of the Justice and Corporate Accountability Project, said in the MiningWatch release. “We hope this case will significantly advance the law governing access to judicial remedy for communities affected by Canadian mining operations abroad.”

Last week, Barrick reported the Tanzanian Commission on Human Rights and Good Governance had found no evidence of forced evictions around the mine and that fair compensation was paid for land.

“We trust that this independent investigation by the [commission], and their findings into the allegations irresponsibly reported publicly, brings this matter to a close,” Barrick CEO Mark Bristow said in an Oct. 7 release.

“Barrick is focused, as it has been since taking over operations of North Mara Gold mine, on developing strong relationships with our local partners while making significant contributions to the region and Tanzania as a whole.”

Targeting ‘Zillennials’, the microgeneration born between 1993 and 1998, this mined diamond push leans into the themes of modern love and the evolving dynamics of relationships. 

These young adults are believed to be behind the rise of affordable lab-grown diamonds (LGDs), particularly in the North American market.

While companies dealing in man-made stones, like Pandora, are thriving — Pandora even boosted its annual forecast after first-quarter sales of LGDs soared 87% — the world of mined diamonds has seen a sharp decline. Prices have dropped nearly 20% in the past year after a 2022 spike.

Anglo American’s De Beers, the largest diamond producer by value, has consistently cut output over the past two years due to sluggish demand.

Sanctions-ridden Russian miner Alrosa, the world’s largest producer of rough diamonds by volume, stopped publishing sales data in early 2022 and cut its output by 2.8% to 34.6 million carats last year.

The campaign comes as De beers seeks to reposition itself in the market as a top jewellery group. It is also the first major play from the recently announced partnership between Signet and De Beers.

It comes after months of intensive training for Signet’s 20,000 sales associates to equip them with the knowledge to talk about what makes mined diamonds special.

The different elements of the strategy are set to air across all the usual suspects: social media, online platforms, and at Signet’s Jared, KAY, and Zales stores. It’s centred on real-life couples, shining a light on the personal growth and relationship-building that often take precedence before tying the knot. The story of diamonds, journeying from deep within the earth to that final polish, parallels the twists and turns of a modern love story.

Signet’s data-driven insights predict a wave of engagements on the horizon, making this campaign perfectly timed. It taps into the milestones that today’s couples experience — moving in together, merging finances, breaking up, getting back together — and reflects those in their new collections, like KAY’s “Milestones Natural Diamond Collection”, which highlights love’s strengthening moments through rings, pendants, and earrings.

Jared is also getting in on the action with their signature bridal brand, Chosen, offering a curated selection of diamonds, custom centre stones, and personalized settings. Later this month, Jared will unveil “UNSPOKEN”, a collection of diamond jewellery set in high-polish yellow and white gold.

“Like the journey of a diamond formed deep in the earth, true love is forged by fire. A natural diamond, like true love, is always worth the wait,” De Beers Brands’ chief executive officer, Sandrine Conseiller, said.

De Beers is targeting annual core profits of $1.5 billion by 2028. Last year, the business made just $72 million, though traditionally its profits have ranged between $500 million and $1.5 billion as the diamond industry swings from boom to bust.

The diamond miner seems ready to fly alone as it did for 124 of its 136 years of existence. Anglo American is in the process of selling its 85% stake in the diamond miner.

The deal would make the South African gold miner the world’s fourth largest producer of the precious metal as it hands it the key to the Sukari mine in Egypt.

Sukari is the country’s largest and first modern gold operation, as well as one of the world’s largest producing mines.

The addition of the Sukari mine to its portfolio will increase AngloGold’s annual production by around 450,000 ounces, bringing its total output to 3.1 million ounces. 

Since production began in 2009, Sukari has produced more than 5.9 million ounces of gold, and has a projected mine life of 14 years.

There are still conditions to fulfill before the deal is closed, including a sanction of the scheme by the Jersey Court, AngloGold said.

Once and if the deal goes through, AngloGold shareholders will hold about 83.6% of the combined entity, while Centamin investors will own roughly 16.4% of the enlarged share capital.

The transaction is the latest in a flurry of industry deals fuelled by record-breaking prices for the precious metal.

Top player Newmont (NYSE: NEM) bought Australia’s Newcrest Mining for $19 billion last year, cementing its position as the top gold producer.

Agnico Eagle Mines (TSX, NYSE: AEM) has completed two major transactions since 2022, positioning itself among the top five producers of the precious metal by market value.

South Africa’s Gold Fields (JSE, NYSE: GFI) bought in August Canada’s Osisko Mining (TSX: OSK) in a deal valued at C$2.16 billion ($1.6bn).

The deal is also the latest blow to the London stock market, which has seen an exodus of companies over the past few years. The exchange has faced challenges since Randgold’s delisting after its merger with Barrick Gold in 2018, and the massive departure of Russian gold miners following Moscow’s invasion of Ukraine.

The 1-oz Lady of Liberty gold bars will be made exclusively made with Newmont-mined gold, then refined and minted by MKS PAMP in Switzerland. The final product leverages the Provenance solution pioneered by MKS PAMP, which traces metals along the supply chain and guarantees responsible sourcing.

The gold bars will also be sealed within a secured CertiPAMP packaging as a certificate of authenticity and quality excellence. CertiPAMP represents the first packaging for the protection of small bars, and the first available to industry clients for custom design.

This traceable, one-of-a-kind gold bar is the culmination of a decade-long partnership between Newmont and MKS PAMP, who worked collaboratively on the project.

The launch underpins the companies’ common values and unwavering sustainability commitments. Newmont is the only gold producer listed in the S&P 500 Index, and is widely recognized for its principled environmental, social and governance practices.

“The opportunity for Newmont gold to be accessible, direct to consumers, is a testament to our commitment to promoting gold as a prized commodity worth pursuing and owning,” Newmont chief development officer Peter Toth said in the statement. “Our commitment to sustainable mining practices and sourcing transparency makes purchasing gold attainable for consumers – even while shopping for household goods.”

“Our joint collaboration on this project is a crucial steppingstone towards a more unified gold industry where we collectively work together to further strengthen consumer trust and uphold the integrity that drives the demand for responsibly sourced gold,” added Chris Carkner, global head of minting at MKS PAMP.

The Takeovers Panel’s decision ends a long-running dispute over whether Rio Tinto or its majority owned uranium producer Energy Resources of Australia (ASX: ERA) would assume the site restoration’s costs.

It also clears the way for Rio to assume full control of the uranium producer via the company’s capital raising, announced in August.

ERA halted activities at Ranger in 2021, after 40 years of operations. The initial goal was to finish the site cleanup by 2026. Rehabilitation costs for the site have surged to A$2.2bn ($1.4bn) and ERA warned in August it would run out of money by December. It said at the time it would launch a capital rising, with Rio as the most likely buyer of shares.

Willy Packer’s Packer&Co and Richard Magides’ Zentree, who collectively own around 12% of ERA, filed an objection with the Takeovers Panel, saying the move would unfairly allow Rio to increase its stake in the company from 86.3% to 99.2%, clearing the way for the mining giant to buy out ERA.

The Takeovers Panel upheld on Tuesday its previous decision to reject the objections from the two minority ERA shareholders.

“ERA now intends to proceed with the [A$880 million] entitlement offer as soon as possible,” the company said on Tuesday.

Jabiluka

ERA still seeks to have its mining permit for Jabiluka, a vast uranium deposit surrounded by the Kakadu National Park, restored. The licence, which has been under the same company’s control since 1991, expired in August.

The Australian government, led by prime Minister Anthony Albanese, has pledged that Jabiluka will “never be mined” and instead will be integrated into the adjacent Kakadu National Park.

ERA filed the petition to have the mining licence back, despite Rio Tinto’s stating that it had no plans to develop the mine site and that it was pleased to see the traditional owners’ wishes respected. 

The Mirarr people have long opposed to mining activities in the region, organizing protests in the late 1990s and early 2000s. Rio Tinto has backed the traditional owners’ position in recent years as it works to repair its ties with indigenous groups after destroying sacred rock shelters at Juukan Gorge in Western Australia in 2020 for an iron ore mine expansion.

Australia is home to almost one-third of the world’s identified uranium reserves, yet the mining of this resource is permitted in only two of its six states and two territories — South Australia and the Northern Territory. 

The country’s only operating uranium mines are BHP’s Olympic Dam, which generates uranium as a secondary product of its copper mining activities and Boss Energy’s Honeywell mine. Together, they account for around 9% of the global reported production.

An Appian spokesperson told MINING.COM on Monday that the company will seek $522 million, plus additional interest and legal costs accrued from the liability trial in July 2024 until the upcoming trial to determine the exact amount Sibanye will have to pay, in November 2025. “The total claim by the time of the quantum trial will be in excess of $600 million,” the person said.

Sibanye-Stillwater spokesperson James Wellsted told Reuters on Monday that Sibanye’s case is that Appian “is entitled to either no or significantly reduced damages.” 

Appian took Sibanye-Stillwater to court in 2022, after the South African precious metals miner scrapped a transaction to buy shares in Atlantic Nickel and Mineração Vale Verde, owners of the Santa Rita nickel and Serrote copper mines in Brazil, respectively.

The acquisition of the two operations was meant to boost Sibanye’s critical metals portfolio as it sought to diversify away from platinum and gold.

Sibanye cited a geotechnical event at Santa Rita as the reason for terminating the deals. Appian claimed the miner’s decision was based on an “incorrect assertion”.

In the ruling, handed down following a five-week trial, Justice Butcher said the geotechnical event used by Sibanye as reason for withdrawing from the deal was neither expected to be material nor reasonably anticipated to become so.

Butcher noted there was “no other basis on which Sibanye was entitled to terminate the sale and purchase agreements (SPAs).”

Appian said it plans to recover the full extent of its losses, including all interest accumulated since January 2022, when Sibanye walked away from the deal.

Should Sibanye fail to pay the full amount awarded in the November 2025 trial, Appian said it would pursue all available enforcement measures.

In a separate statement, Sibanye noted the company was successful in having Appian’s claim of willful misconduct dismissed.

“The judge ruled that Sibanye-Stillwater management genuinely believed that it was entitled to terminate the SPAs in what they perceived as the best interests of Sibanye-Stillwater,” it said.

The company argues that Appian could have sold the Santa Rita and Serrote mines to another buyer for a similar price, which in Sibanye’s view means that Appian cannot claim all losses to be covered by Sibanye-Stillwater.

“The judgment notes that Appian received multiple offers for the mines after Sibanye-Stillwater terminated the SPAs. Accordingly, Sibanye-Stillwater will continue to defend the claim vigorously at the trial in November 2025,” it said.

Atlantic Nickel’s Santa Rita open pit mine in the Brazilian state of Bahia is one of the few long-life nickel sulphide mines currently in production. It also yields copper, cobalt, and platinum group metals as by-products.

The company is advancing the mine’s underground extension as it transitions from open-pit to underground operations. This shift to higher-grade nickel is expected to boost production rates and extend the mine’s operational life to over 20 years.

At the end of the third quarter of 2024, the MINING.COM TOP 50* ranking of the world’s most valuable miners had a combined market capitalization of $1.51 trillion, up just under $76 billion from end-June, largely on the back of gold and royalty stocks.

The total stock market valuation of the world’s biggest mining companies is up a fairly modest 8% year to end-September and despite the good run is still $240 billion below the peak hit in the second quarter of 2022.  

Ranks, value of gold stocks swell

The value of precious metals and royalty companies climbed by a combined $42 billion, or 16% during the quarter and gold counters dominate the best performing ranks. 

Were it not for the limited tradability of stock in Russia’s Polyus, which lost some ground over the last three months despite gold’s stellar performance, bullion’s effect on the Top 50 would have been even more pronounced. 

Canada’s Alamos Gold joins the top 50 for the first time with a more than 31% jump in value, lifting it six places to number 48 with a valuation of $8.2 billion at the end of the quarter while the second quarter’s newcomer Pan American Silver (following its absorption of Yamana Gold) hangs on at no 50.

Alamos Gold last month raised its production guidance by over 20% for 2025-2026 with the inclusion of the Magino mine and its integration with its Island Gold operation in Ontario. The Toronto- based miner has long term ambitions to grow its production base to 900,000 ounces per year.

Uzbekistan is readying an IPO for Navoi Mining and Metallurgy Combinat – the world’s fourth largest gold mining company and significant uranium producer in 2025. NMMC debuted a $1 billion bond offering last week, marking the first global debt market issuance from a gold mining company since June 2023.

Navoi should easily join the ranks of gold producers in the top 50 thanks to ownership of the world’s largest gold mine, Muruntau, and annual production of 2.9 million ounces at grades and per ounce extraction costs the envy of the sector.  

The Muruntau open pit mine southwest of the Kyzylkum desert, originally developed during the Soviet era as a source of uranium, has estimated reserves of around 130 million ounces of gold. 

Goldilocks copper

Copper specialists, and those with fat gold credits, have gained a combined 36% year to date as the copper price continues to flirt with the $10,000 a tonne level, but momentum slowed dramatically during Q3 with the group contributing only $7.2 billion in added market worth during the quarter. 

Amman Mineral’s fierce rally also came to an abrupt halt during the quarter with the counter losing 18% over the three months and coming close to falling out of the top 10.

Investors who bought Amman, owner of the world’s third largest mine worldwide in terms of copper equivalent, at the IPO price in Jakarta a year ago, are still enjoying 400% gains since then, however. 

Southern Copper’s position as the world’s third most valuable mining stock seems entrenched after a double digit percentage gain in Q3 compared to a much more sedate performance by Freeport-McMoRan, which now has to gain a full $20 billion in market cap to haul in its Mexico City-based rival.

Light on lithium 

Rio Tinto’s vote of confidence in the long term future of the lithium sector (and its own ability to make M&A work) dominated the news at the start of the December-quarter but it’s worth noting that Arcadium’s more than 90% surge since the all-cash offer was first announced is not enough for the stock to enter the rankings.

Three lithium counters exited the rankings this year, Australia’s Pilbara Minerals and Mineral Resources and China’s Tianqi Lithium as the deep slump in prices for the battery metal continues to take its toll.  

Last quarter’s no 50, Ganfeng Lithium jumps six places after being swept up in the stimulus-induced rally on Chinese stock markets at the end of the quarter, while Tianqi’s performance so far in October should see it reenter the Top 50 in due course. 

Ganfeng was barely holding on at position 50 at end-June and with gold price momentum continuing and two gold mining companies waiting in the winds – Yintai and Alamos – only three lithium counters in the top 50 may be a reality for some time to come. 

After peaking in the second quarter of 2022 with a combined value of nearly $120 billion, the remaining lithium stocks’ market value has now shrunk to $34 billion.  

Iron ore ground down

Despite a modest improvement during the quarter, the mining industry’s traditional big 5 – BHP, Rio Tinto, Glencore, Vale and Anglo American – remain in the red for 2024, losing $24 billion since the start of the year. 

The big 5 diversifieds now make up 29% of the total index, down from a height of 38% at the end of 2022.  

Iron ore’s less than rosy outlook – the late boost China’s recent stimulus package notwithstanding – saw Fortescue once again feature on the biggest losers list and Cleveland Cliffs exit the ranking with the US iron ore miner’s 37% decline this year exacerbated by its inability to capitalize on the blocking of the Nippon-US Steel tie up. 

Iron ore’s representation in the top 50 have diminished in the last couple of years – Brazil’s CSN Mineração dropped out during Q1 this year while Anglo-controlled and separately-listed Kumba Iron Ore has lost touch with the top tier after a 40% fall year to date.

Click on image for full size table.

NOTES:

Source: MINING.COM, stock exchange data, company reports. Share data from primary-listed exchange at close Oct 4, 2024 close of trading converted to US$ where applicable. Percentage change based on US$ market cap difference, not share price change in local currency.  

As with any ranking, criteria for inclusion are contentious. We decided to exclude unlisted and state-owned enterprises at the outset due to a lack of information. That, of course, excludes giants like Chile’s Codelco, Uzbekistan’s Navoi Mining (the gold and uranium giant may list later this year), Eurochem, a major potash firm, and a number of entities in China and developing countries around the world.

Another central criterion was the depth of involvement in the industry before an enterprise can rightfully be called a mining company.

For instance, should smelter companies or commodity traders that own minority stakes in mining assets be included, especially if these investments have no operational component or warrant a seat on the board?

This is a common structure in Asia and excluding these types of companies removed well-known names like Japan’s Marubeni and Mitsui, Korea Zinc and Chile’s Copec. 

Levels of operational or strategic involvement and size of shareholding were other central considerations. Do streaming and royalty companies that receive metals from mining operations without shareholding qualify or are they just specialised financing vehicles? We included Franco Nevada, Royal Gold and Wheaton Precious Metals on the basis of their deep involvement in the industry.

Vertically integrated concerns like Alcoa and energy companies such as Shenhua Energy or Bayan Resources where power, ports and railways make up a large portion of revenues pose a problem. The revenue mix also tends to change alongside volatile coal prices. Same goes for battery makers like China’s CATL which is increasingly moving upstream, but where mining will continue to represent a small portion of its valuation.  

Another consideration is diversified companies such as Anglo American with separately listed majority-owned subsidiaries. We’ve included Angloplat in the ranking but excluded Kumba Iron Ore in which Anglo has a 70% stake to avoid double counting. Similarly we excluded Hindustan Zinc which is listed separately but majority owned by Vedanta.

Many steelmakers own and often operate iron ore and other metal mines, but in the interest of balance and diversity we excluded the steel industry, and with that many companies that have substantial mining assets including giants like ArcelorMittal, Magnitogorsk, Ternium, Baosteel and many others.

Head office refers to operational headquarters wherever applicable, for example BHP and Rio Tinto are shown as Melbourne, Australia, but Antofagasta is the exception that proves the rule. We consider the company’s HQ to be in London, where it has been listed since the late 1800s.

Please let us know of any errors, omissions, deletions or additions to the ranking or suggest a different methodology.

Indian steel producers are collectively the world’s second largest, and therefore will likely have a critical role in achieving the country’s target of net zero by 2070. With the increasing commissioning of blast furnaces in India with decades of life ahead of them, supporting longer-term decarbonization routes is essential.

Under a joint study agreement agreement, JSW and BHP will assess the feasibility of Carbon Clean’s CycloneCC modular technology to capture up to 100,000 tonnes per year of CO2 emissions – the largest scale CycloneCC deployment to date in steelmaking.

Carbon capture, utilization and storage (CCUS) technologies like CycloneCC are anticipated to be a critical abatement to support a near zero CO2 emissions intensity for this process route, as well as potentially for other hard-to-abate industrial sectors.

However, there are several challenges with the adoption of carbon capture technology in the steel industry, including capital expenditure and ongoing operating costs, as well as the integration of new equipment into an existing site.

The CycloneCC rotating packed bed (RPB) technology, in combination with Carbon Clean’s proprietary APBS-CDRMax solvent, aims to address these challenges through reducing total installed cost and the unit footprint by up to 50%, and equipment that is ten times smaller in size than conventional carbon capture technologies.

This project, says BHP, is an important step towards supporting the scale-up of carbon capture, including understanding the potential performance, costs and carbon abatement outcomes. It is anticipated that the joint studies will be completed during 2026, at which time the parties will consider installing CycloneCC at JSW’s Vijayanagar site in Karnataka, India.

Utilization – the ‘U’ in CCUS – is a key component of the project. If the project is successful, JSW Steel intends to liquefy captured CO2 so that it can be sold locally, it adds.

“We are actively studying multiple pathways for steel decarbonization, including through use of hydrogen and renewable power, but we recognize that the blast furnace route will likely remain a pathway for the production of steel, particularly within India,” BHP’s chief commercial officer Rag Udd said in a statement.

“We believe CCUS could be a financially viable decarbonization lever which would be crucial to achieve near zero emissions in the steel sector and this collaboration for a scale-up application would help pave the way forward,” said Jayant Acharya, joint managing director and CEO of JSW Steel.

Acharya also noted that JSW, as India’s leading private sector steel company, has already achieved a reduction of carbon emissions intensity by 30% against its 2005 baseline, and is aiming to further reduce its steelmaking intensity to 1.95 tonnes of CO2 per tonne of steel by 2030 and achieving net neutral carbon emissions by 2050.

“We’ve relied on rising commodity prices to carry us,” Bristow said last month at the Gold Forum Americas in Colorado Springs. “Mining is a consumptive industry; we mine away our assets daily. To remain sustainable, we must reinvest in our future, not just rely on M&A.”

Bristow said consolidation must add value, not just react to market pressures. He points to the US$6.5 billion Randgold-Barrick merger announced in late 2018 as an example of building lasting, profitable mining businesses rather than seeking “instant gratification.”

At the same time, he addressed speculation that Nevada Gold Mining, Barrick’s 61.5%-owned joint venture with Newmont (TSX: NGT; NYSE: NEM) in the United States, could go public.

“Not while I’m running this organization,” he said, explaining there are too many assets in the industry and not enough competent managers to run them.

Watch the second part below of the interview with The Northern Miner’s western editor, Henry Lazenby.

Rio Tinto will acquire the United States-based lithium producer for $5.85 per share, it said. The deal represents a premium of 90% to Arcadium’s closing price of $3.08 per share on October 4 and is expected to close mid-2025.

The move would position Rio Tinto as one of the world’s largest lithium miners, behind only US-based Albemarle (NYSE: ALB) and Chile’s SQM (NYSE: SQM).

The acquisition would hand Rio lithium mines in Argentina and Australia, as well as processing facilities in the US, China, Japan and the UK. Its customer base would include major names, such as Tesla, BMW and General Motors.

The falling market prompted Rio to act, chief executive officer Jakob Stausholm told Reuters, seeing the downturn as an opportunity to pick up top quality assets at the right price.

“We really want battery-grade lithium, i.e. the processing as well. And then, of course, we like to be an operator, and if you take those criteria, you very quickly come to Arcadium,” he said.

“The way you should think about it is kind of a reverse takeover. This is not a case about cutting costs. This is a case about building faster and better,” Stausholm told Reuters.

Price slump

The spot price for lithium carbonate in China is down more than 85% from a peak in 2022 as supply overwhelmed demand from the electric vehicle sector where growth has cooled at the same time.

Arcadium Chairman Peter Coleman said Rio would be able to bring its expertise in execution and a strong balance sheet to help develop Arcadium’s assets. 

“They are not capital constrained … For us, we know that growth plans still relied on an improvement in price over the next two to three years, which is quite a significant improvement over where we are now,” he told Reuters.

Bolt-on

“The reality is that Rio really hasn’t grown in a decade, but now we’re back,” Stausholm told Bloomberg in a phone interview.

The miner began more seriously considering options at the start of the year, looking at “basically all of the lithium projects around the world,” Stausholm said.

For Rio, with a market capitalization of $112 billion, Arcadium is seen as a bolt-on deal. It’s still a test of the miner’s deal-making mettle in a new era of constrained spending, as the biggest acquisition since Rio’s $38 billion all-cash acquisition of Alcan Inc. in 2007. That purchase, after a bidding war, ultimately left Rio with $29 billion in charges.

“Alcan, in hindsight, was bought at the top of the cycle,” Stausholm said. “We feel quite comfortable that we have not bought a lithium company at the top of the cycle right now. We had to pay a fair price, and that’s what we’re paying.”

DLE

“It was a huge piece of work, but what became very clear to us was we would like to have exposure to brines,” Stausholm told Bloomberg, adding Arcadium produces battery-grade lithium from direct extraction.

Vulcan Energy’s (ASX: VUL) founder and executive chair, Francis Wedin, said the company views the development as a favourable one for the broader lithium market, particularly because it shines a spotlight on adsorption-type direct lithium extraction (A-DLE) production, used by Arcadium since 1996 next door to Rio’s own A-DLE project in Rincon. 

“The fact that Rio is joining Exxon and Equinor by focusing on A-DLE is a further indication of how the third wave of lithium’s growth is developing,” he said in an emailed statement. 

Rumours swirled

Arcadium was created in January from the merger of Philadelphia-based Livent and Australia’s Allkem. Its shares have fallen since, dragged by declining lithium prices, which in turn are a result of weaker demand from electric vehicle (EV) makers and Chinese oversupply.

BMO Capital Markets said in a note the transaction provides Rio a producing foothold at a price that it can easily afford.

“However, our initial take suggests a premium multiple paid, unless Rio Tinto can demonstrate meaningful synergies and/or expectations of significantly higher future lithium prices.”

Ahead of the confirmation of the deal BMO Capital Markets noted a potential takeover has been part of market rumours for years.

“Many investors believe that Arcadium (i.e., the Allkem/Livent merger) was completed to shake out interest from suitors like Rio.”

Battery ambitions

Over the past six years, Rio has been expanding its footprint in the battery market. In 2018, it attempted to buy a $5bn stake in Chile’s SQM, the world’s second largest lithium producer. 

In April 2021, the world’s second largest miner kicked off lithium production from waste rock at a demonstration plant located at a borates mine it controls in California. 

Rio took another key step into the lithium market in 2022, completing the acquisition of the Rincon lithium project in Argentina, which has reserves of almost two million tonnes of contained lithium carbonate equivalent, sufficient for a 40-year mine life. 

The company plans to develop a battery-grade lithium carbonate plant at Rincon with an annual capacity of 3,000 tonnes and has earmarked $350 million to invest in the project, with first production expected later this year.

It is also trying to revive one of its biggest lithium projects, the proposed $2.4 billion Jadar mine in Serbia. Rio had its mining licence revoked in 2022, following widespread protests against the proposed mine on environmental concerns.

The mining giant won a small, but key battle in July, as Serbia reinstated Rio Tinto’s licence to develop it, but the company will have to secure approvals to move towards production at the site. On Monday, however, the country’s parliament began debating a proposal to ban lithium and borate mining and exploration. If passed into a law, this would effectively put an end to the contested Jadar project.

With projected production of 58,000 tonnes of refined battery-grade lithium carbonate per year, Jadar would be Europe’s biggest lithium mine.

(With files from Reuters and Bloomberg)

RELATED: Timeline: Owners of Arcadium’s lithium assets through the years

Rio Tinto (ASX, LON, NYSE: RIO) will acquire Arcadium Lithium (ASX: LTM)(NYSE: ALTM), in an all-cash transaction, valuing the latter at $6.7 billion, the Anglo-Australian giant confirmed on Wednesday.  

The second largest miner is paying the United States-based lithium producer $5.85 per share, it said. The deal represents a premium of 90% to Arcadium’s closing price of $3.08 per share on October 4. 

The move would position Rio Tinto as one of the world’s largest lithium miners, behind only US-based Albemarle (NYSE: ALB) and Chile’s SQM (NYSE: SQM).

The acquisition would hand Rio lithium mines in Argentina and Australia, as well as processing facilities in the US, China, Japan and the UK. Its customer base would include major names, such as Tesla, BMW and General Motors.

Arcadium was created in January from the merger of Philadelphia-based Livent and Australia’s Allkem. Its shares have fallen since, dragged by declining lithium prices, which in turn is a result of weaker demand from electric vehicle (EV) makers and Chinese oversupply.

Ahead of the confirmation of the deal BMO Capital Markets analyst, Joel Jackson, noted a potential takeover has been part of market rumours for years. “Many investors believe that Arcadium (i.e., the Allkem/Livent merger) was completed to shake out interest from suitors like Rio,” he wrote.

The transaction value is ahead of market expectations which was pegged in the $4 billion to $6 billion range. “In our view, this [range] would value Arcadium more like a mining company than a specialty chemicals firm, assuming a mid-cycle price range of $18,000–$19,000 per tonne of lithium carbonate equivalent (LCE), average selling price (ASP),” noted Jackson

Before the official announcement industry participants were supportive of the deal. Vulcan Energy’s (ASX: VUL) founder and executive chair, Francis Wedin, said the company views the development as a favourable one for the broader lithium market, particularly because it shines a spotlight on Adsorption-type DLE (A-DLE) production, used by Arcadium since 1996 next door to Rio’s own A-DLE project in Rincon. 

“The fact that Rio is joining Exxon and Equinor by focusing on A-DLE is a further indication of how the third wave of lithium’s growth is developing,” he said in an emailed statement. 

Battery ambitions

Over the past six years, Rio has been expanding its footprint in the battery market. In 2018, it reportedly attempted to buy a $5bn stake in Chile’s SQM, the world’s second largest lithium producer. 

In April 2021, the world’s second largest miner kicked off lithium production from waste rock at a demonstration plant located at a borates mine it controls in California. 

Rio took another key step into the lithium market in 2022, completing the acquisition of the Rincon lithium project in Argentina, which has reserves of almost two million tonnes of contained lithium carbonate equivalent, sufficient for a 40-year mine life. 

The company plans to develop a battery-grade lithium carbonate plant at Rincon with an annual capacity of 3,000 tonnes and has earmarked $350 million to invest in the project, with first production expected later this year.

It is also trying to revive one of its biggest lithium projects, the proposed $2.4 billion Jadar mine in Serbia. Rio had its mining licence revoked in 2022, following widespread protests against the proposed mine on environmental concerns.

The mining giant won a small, but key battle in July, as Serbia reinstated Rio Tinto’s licence to develop it, but the company will have to secure approvals to move towards production at the site. On Monday, however, the country’s parliament began debating a proposal to ban lithium and borate mining and exploration. If passed into a law, this would effectively put an end to the contested Jadar project.

With projected production of 58,000 tonnes of refined battery-grade lithium carbonate per year, Jadar would be Europe’s biggest lithium mine.

The operation could supply enough lithium to power one million electric vehicles and meet 90% of Europe’s current lithium needs.

RELATED: Timeline: Owners of Arcadium’s lithium assets through the years

Under Bristow’s leadership, Barrick has prioritized growth investments with shareholder returns and loan retirements, distributing $5 billion and cutting debt by $3.5 billion.

“We’ve invested over $9 billion in our business and created real value for shareholders,” Bristow said last month during the Gold Forum Americas in Colorado Springs.

Barrick continues growing its copper exposure. Bristow says the company’s Reko Diq copper-gold project in Pakistan is a bright spot in its growth pipeline. The company aims to grow copper output in the long term, planning to lift its Lumwana mine in Zambia into the top 25 global copper producers.

Watch below the first part (of three) of the interview with The Northern Miner’s western editor, Henry Lazenby.

Authorities in Mali briefly detained four Malian staff members working for Barrick last month. On Sept. 30, Barrick stated it had agreed with the government to resolve existing claims and disputes.

The demands on Barrick follow an audit of mining contracts last year and a subsequent push by Mali to renegotiate agreements with mining firms, including B2Gold (TSX: BTO), Resolute Mining (ASX, LON: RSG) and Allied Gold (TSX: AAUC), to channel a greater share of revenues into state coffers under a new mining code.

Under the new code, the percentage of Malian state and private interest in projects could rise from 20% to 35%. The law also aims to reduce tax breaks and increase the number of Malians in management roles.

Three sources told Reuters that Barrick, which runs the Loulo-Gounkoto mines in western Mali with an 80% stake, had been presented a bill for at least 300 billion CFA.

One of the sources, a consultant working with mining companies in Mali, said the bill was primarily for retroactive tax adjustments and unpaid dividends. Another source, who works with mining companies and the Malian government, confirmed the figure, stating that the bill would cover taxes owed from 2020, 2021 and 2022.

A third source, a senior official with another mining company in the country, said Mali believes Barrick owes as much as 500 billion CFA. The claim is also related to the non-repatriation of funds.

When asked to comment, a spokesperson for Barrick said, “We are still in the process of negotiation and will let you know once the agreement is settled.”

In Barrick’s 2023 annual report, the firm noted it had received tax collection notices at the end of November 2023 for approximately $417 million relating to VAT credit balances that had offset taxes and royalties but were subsequently disallowed by Malian authorities.

Barrick argued that the tax bills were “without merit” but confirmed it had paid $17 million as part of a six-month stay on enforcement.

A fourth source, also a senior official with another mining company, said they had heard Barrick was preparing to make a payment of $300-$350 million to the government. The source did not provide further details. Barrick declined to comment.

Barrick CEO Mark Bristow recently said the company is aiming to grow its presence in the West African country to ensure the long-term sustainability of its Loulo-Gounkoto operation.

The Loulo-Gounkoto complex currently holds gold reserves estimated at 6.7 million ounces, included within a measured and indicated resource totalling 9.1 million ounces. It produced 683,000 ounces of gold in 2023 and is on track to meet its production guidance for the current quarter and the year.

Barrick shares fell 2% by 12:10 p.m. EDT Tuesday. The miner has a market capitalization of $34.6 billion.

(With files from Reuters)

In a media briefing on Tuesday, president and CEO Mark Bristow said the fresh discoveries are at the ARK target, located just four kilometres from Kibali’s processing plant. He noted they could potentially yield a high-grade, multi-million-ounce orebody. 

These near-mine discoveries, alongside ongoing exploration of KCD downdip extensions, could ensure the mine’s ability to continually replenish its reserves, Barrick said. They would also boost Kibali’s reputation as one of Africa’s most cost-efficient gold producers, it noted.

Kibali, which produced first gold in September 2013, plays a crucial role in the local economy of the DRC’s North East region. Over the past decade, it has helped develop a thriving regional economy, supported by partnerships with local businesses and communities.

To date, Barrick has invested $2.87 billion in Kibali, including deals with local contractors and suppliers, and is working with the DRC government on initiatives to support over 500 local companies.

Kibali is also advancing its social responsibility initiatives, with 41 of 44 projects under its community development fund already completed. Nine out of 14 projects backed by the mine’s Cahier des Charges initiative are nearing completion, Barrick said.

On the environmental front, Kibali is expanding its biodiversity efforts, with plans to add 64 white rhinos to Garamba National Park. Last year, the mine successfully relocated 16 rhinos to the park as part of its commitment to conservation.

Kibali has become a key contributor to Barrick’s emissions reduction goals. The mine’s renewable energy penetration will increase from 79% to 85% when its new 16-megawatt solar plant and battery energy storage system are operational, with the mine running entirely on renewable energy for half the year.

The gold mine is owned 45% by Barrick, 45% by AngloGold Ashanti and 10% by Société Miniére de KiloMoto (SOKIMO).

The lawsuits were filed more than a decade ago by members of a remote Indigenous Mayan community, who claimed that security personnel from the Fenix nickel mine, alongside police and military, were involved in violent expulsion of its people from their homes.

In one lawsuit, it is alleged that the community leader was assaulted with a machete, shot and killed by those acting on behalf of the mine operation, which belonged to Hudbay at the time, while another alleged that another community member was shot and left paralyzed.

The third lawsuit was brought 11 female plaintiffs alleging that they were sexually assaulted during the clash. However, according to Hudbay, this suit predates its ownership of the mine, which it took over in 2008 and inherited the previous owner’s liabilities.

The settlement, for which the terms remain undisclosed, brings an end to over a decade of legal uncertainty surrounding Hudbay’s former mine. In 2013, an Ontario Superior Court judge ruled that the cases can be heard in Canada rather than Guatemala, paving the way for the plaintiffs to pursue legal action against the Toronto-based company.

However, the Canadian miner stated that the terms agreed with the plaintiffs confirm the settlement is without admission of liability, and the parties continue to have “fundamentally differing views” on the facts underlying the allegations, including the allegations of misconduct by its subsidiaries.

Hudbay’s CEO Peter Kukielski said in a press release Monday the settlement represents a recognition of “the difficult economic and social circumstances of the plaintiffs,” and his company is thankful for a “constructive resolution with the plaintiffs and their counsel.”

In a statement to the Financial Post, Murray Klippenstein, one of the lawyers for the plaintiffs, said his clients hope that their “tenacity and ordeal” will help protect other similarly situated people. He said the case, which was heard in Ontario, will be of interest to both company executives and investors.

In 2011, Hudbay divested itself of its mine operations in Guatemala at a loss to Solway Group, and has had no operations there since that time.

Shares in Hudbay Minerals closed Monday’s session 1.0% higher at C$12.88 apiece, with a market capitalization of C$5.1 billion.

The revision, according to the miner, is due to impacts of intermittent grid power prior to the installation of additional on-site generator capacity and agreements in place to import power to support consumption from the DRC grid.

Following the installation of an additional 72 MW of generators, the on-site backup power capacity of 135 MW is now sufficient to power Kamoa-Kakula’s Phase 1 and 2 concentrators at full capacity, Ivanhoe said, adding that the project team remains on schedule to have 201 MW of installed on-site backup power generation capacity by year-end.

New copper guidance

For the year, Ivanhoe now expects its copper concentrate production to sit between 425,000-450,000 tonnes instead of 440,000-490,000 tonnes. Through the first three quarters, Kamoa-Kakula has produced 303,328 tonnes of copper in concentrate, including 40,025 tonnes at a record daily production rate of 1,334 tonnes during the month of September.

During the third quarter, the Phase 1 and 2 concentrators milled approximately 2.2 million tonnes of ore at an average feed grade of 4.9% copper. Quarterly copper production from the concentrators totalled 94,214 tonnes, at an average recovery rate of 86.6%.

The Phase 3 concentrator, which achieved commercial production during the third quarter, milled approximately 1.1 million tonnes of ore predominantly from historical surface stockpiles at an average feed grade of 2.6% copper. The concentrator added 22,099 tonnes of quarterly production at a recovery rate of 79.9%, reflecting the ongoing ramp-up.

Ivanhoe noted the Phase 3 concentrator sustained improvements in processing throughput and recovery rates following the commissioning of the fine-grinding mills in early September. During the last week of the month, the concentrator milled 117,484 tonnes, which is equivalent to an annualized processing rate of over 5.5 million tonnes per annum.

Kamoa’s operations team now expects to reach the nameplate recovery rate of 86% during the fourth quarter, thereby achieving steady-state production. In addition, the team is also targeting to increase the feed grade to the Phase 3 concentrator up to approximately 3% by the first quarter of 2025, while ore reserves continue to be developed towards the higher-grade zones in the Kamoa 1 and Kamoa 2 underground mines.

Zinc target revised

In addition to copper, Ivanhoe has readjusted its 2024 zinc guidance due to operational disruptions that have inhibited the nameplate throughput from being sustained on a daily basis at the Kipushi mine, also located in the DRC.

Since its first concentrate production this June, the Kipushi’s concentrator has continued to ramp up, with approximately 88,000 tonnes of stockpile ore milled during the third quarter at an average feed grade of 27.1% zinc. Quarterly zinc production from the concentrator was 17,817 tonnes, at an average flotation recovery rate of 72%. Exports of zinc concentrate also commenced towards the end of the quarter.

However, the ramp-up of Kipushi’s concentrator to its annual steady-state production rate of over 250,000 tonnes has been slower than anticipated. The company attributes this to three factors: higher iron content of the Big Zinc orebody, which was negatively impacting concentrator recoveries; ore feed into the dense media separation (DMS) circuit containing more fine material, which limited throughput; and the increase in power requirement, from 5 MW used during construction to 18 MW for operations.

As a result of these disruptions, the full-year production guidance range for Kipushi has been halved, from 100,000-140,000 tonnes of zinc in concentrate to 50,000-70,000 tonnes. Work is underway is to improve the recoveries and upgrade the mine infrastructure.

Meanwhile, Ivanhoe is implementing a debottlenecking program that is targeting a 20% increase in concentrator processing capacity to 960,000 tonnes of ore per annum. The program is expected to be completed in mid-2025.

Ivanhoe Mines’ shares fell 3.5% to C$19.79 apiece by 3 p.m. in Toronto on the Q3 results news release. The company has a market capitalization of C$26.8 billion.

At the end of the third quarter of 2024, the MINING.COM TOP 50* ranking of the world’s most valuable miners had a combined market capitalization of $1.51 trillion, up just under $76 billion from end-June, largely on the back of gold and royalty stocks.

The total stock market valuation of the world’s biggest mining companies is up a fairly modest 8% year to end-September and despite the good run is still $240 billion below the peak hit in the second quarter of 2022.  

Ranks, value of gold stocks swell

The value of precious metals and royalty companies climbed by a combined $42 billion or 16% during the quarter and gold counters dominate the best performing ranks. 

Were it not for the limited tradability of stock in Russia’s Polyus, which lost some ground over the three months despite gold’s stellar performance, bullion’s effect on the Top 50 would have been even more pronounced. 

Canada’s Alamos Gold joins the top 50 for the first time with a  more than 31% jump in value lifting it six places to number 48 with a valuation of $8.2 billion at the end of the quarter while the second quarter’s newcomer Pan American Silver (following its absorption of Yamana Gold) hangs on at no 50.

Alamos Gold last month raised its production guidance by over 20% for 2025-2026 with the inclusion of the Magino mine and its integration with its Island Gold operation in Ontario. The Toronto based miner has long term ambitions to grow its production base to 900,000 ounces per year.

Uzbekistan is readying an IPO for Navoi Mining and Metallurgy Combinat – the world’s fourth largest gold mining company and significant uranium producer in 2025. NMMC debuted a $1 billion bond offering last week, marking the first global debt market issuance from a gold mining company since June 2023.

Navoi should easily join the ranks of gold producers in the top 50 thanks to ownership of the world’s largest gold mine, Muruntau, and annual production of 2.9 million ounces at grades and per ounce extraction costs the envy of the sector.  

The Muruntau open pit mine southwest of the Kyzylkum desert, originally developed during the Soviet era as a source of uranium, has estimated reserves of around 130 million ounces of gold. 

Goldilocks copper

Copper specialists, and those with fat gold credits, have gained a combined 36% year to date as the copper price continues to flirt with the $10,000 a tonne level but momentum slowed dramatically during Q3 with the group contributing only $7.2 billion in added market worth during the quarter. 

Amman Mineral’s fierce rally also came to an abrupt halt during the quarter with the counter losing 18% over the three months and coming close to falling out of the top 10.

Investors who bought Amman, owner of the world’s third largest mine worldwide in terms of copper equivalent, at the IPO price in Jakarta a year ago, are still enjoying 400% gains since then however. 

Southern Copper’s position as the world’s third most valuable mining stock seems entrenched after a double digit percentage gain in Q3 compared to a much more sedate performance by Freeport-McMoRan which now has to gain a full $20 billion in market cap to haul in its Mexico City-based rival.

Light on lithium 

Rio Tinto’s vote of confidence in the long term future of the lithium sector (and its own ability to make M&A work) dominated the news at the start of the December-quarter but it’s worth noting that Arcadium’s more than 90% surge since the all-cash offer was first announced are not enough for the stock to enter the rankings.

Three lithium counters exited the rankings this year, Australia’s  Pilbara Minerals and Mineral Resources and China’s Tianqi Lithium as the deep slump in prices for the battery metal continues to take its toll.  

Last quarter’s no 50, Ganfeng Lithium jumps six places after being swept up in the stimulus-induced rally on Chinese stock markets at the end of the quarter while Tianqi’s performance so far in October should see it reenter the Top 50 in due course. 

Ganfeng was barely holding on at position 50 at end-June and with gold price momentum continuing and two gold mining companies waiting in the winds – Yintai and Alamos – only three lithium counters in the top 50 may be a reality for some time to come. 

After peaking in the second quarter of 2022 with a combined value of nearly $120 billion, the remaining lithium stocks’ market value has now shrunk to $34 billion.  

Iron ore ground down

Despite a modest improvement during the quarter, the mining industry’s traditional big 5 – BHP, Rio Tinto, Glencore, Vale and Anglo American – remain in the red for 2024, losing $24 billion since the start of the year. 

The big 5 diversifieds now make up 29% of the total index, down from a height of 38% at the end of 2022.  

Iron ore’s less than rosy outlook – the late boost China’s recent stimulus package notwithstanding – saw Fortescue once again feature on the biggest losers list and Cleveland Cliffs exit the ranking with the US iron ore miner’s 37% decline this year exacerbated by its inability to capitalize on the blocking of the Nippon-US Steel tie up. 

Iron ore’s representation in the top 50 have diminished in the last couple of years – Brazil’s CSN Mineração dropped out during Q1 this year while Anglo-controlled and separately-listed Kumba Iron Ore has lost touch with the top tier after a 40% fall year to date.

Click on image for full size table.

NOTES:

Source: MINING.COM, stock exchange data, company reports. Share data from primary-listed exchange at close Oct 4, 2024 close of trading converted to US$ where applicable. Percentage change based on US$ market cap difference, not share price change in local currency.  

As with any ranking, criteria for inclusion are contentious. We decided to exclude unlisted and state-owned enterprises at the outset due to a lack of information. That, of course, excludes giants like Chile’s Codelco, Uzbekistan’s Navoi Mining (the gold and uranium giant may list later this year), Eurochem, a major potash firm, and a number of entities in China and developing countries around the world.

Another central criterion was the depth of involvement in the industry before an enterprise can rightfully be called a mining company.

For instance, should smelter companies or commodity traders that own minority stakes in mining assets be included, especially if these investments have no operational component or warrant a seat on the board?

This is a common structure in Asia and excluding these types of companies removed well-known names like Japan’s Marubeni and Mitsui, Korea Zinc and Chile’s Copec. 

Levels of operational or strategic involvement and size of shareholding were other central considerations. Do streaming and royalty companies that receive metals from mining operations without shareholding qualify or are they just specialised financing vehicles? We included Franco Nevada, Royal Gold and Wheaton Precious Metals on the basis of their deep involvement in the industry.

Vertically integrated concerns like Alcoa and energy companies such as Shenhua Energy or Bayan Resources where power, ports and railways make up a large portion of revenues pose a problem. The revenue mix also tends to change alongside volatile coal prices. Same goes for battery makers like China’s CATL which is increasingly moving upstream, but where mining will continue to represent a small portion of its valuation.  

Another consideration is diversified companies such as Anglo American with separately listed majority-owned subsidiaries. We’ve included Angloplat in the ranking but excluded Kumba Iron Ore in which Anglo has a 70% stake to avoid double counting. Similarly we excluded Hindustan Zinc which is listed separately but majority owned by Vedanta.

Many steelmakers own and often operate iron ore and other metal mines, but in the interest of balance and diversity we excluded the steel industry, and with that many companies that have substantial mining assets including giants like ArcelorMittal, Magnitogorsk, Ternium, Baosteel and many others.

Head office refers to operational headquarters wherever applicable, for example BHP and Rio Tinto are shown as Melbourne, Australia, but Antofagasta is the exception that proves the rule. We consider the company’s HQ to be in London, where it has been listed since the late 1800s.

Please let us know of any errors, omissions, deletions or additions to the ranking or suggest a different methodology.

Albemarle, the world’s largest lithium producer, gained 5.9% to $99.95 each, for a market capitalization of $11.7 billion. Arcadium, one of the world’s largest producers of the battery metal, rose 9.2% to $3.07, valuing the company at $3.3 billion.

Shares in other lithium companies also gained. SQM (NYSE: SQM) went up 2.3% to $41.40 apiece, giving it an $11.3 billion market cap; Lithium Americas (TSX: LAC) was up 6.7% to C$3.64, for a C$793.5 million market value; and Standard Lithium (TSXV: SLI, NYSE: SLI) gained 5.6% to C$2.24 apiece, for a market capitalization of C$386.9 million.

Albemarle said in an email to The Northern Miner that it wasn’t going to comment. The other lithium companies didn’t immediately respond to requests for comment.

The acquisition talk comes as Rio faces challenges in developing its Jadar lithium project in Serbia that has been halted since 2022 out of concerns about environmental damage. But the project could become Europe’s biggest mine of the battery metal.

The buyout speculation also comes amid the ongoing slump in lithium prices, which have dropped 88% over the past two years. Battery-grade lithium hydroxide has fallen to $9,925 per tonne on Friday from $22,275 a year ago and around $85,000 a tonne in late 2022, according to The Wall St. Journal.

Lithium pitfalls, promise

Albemarle in January laid off more than 300 employees amid the price decline, and said it would reduce investment to $1.6 billion to $1.8 billion this year, down from about $2.1 billion it invested last year.

Arcadium, formed through the merger of Livent and Allkem last January, said in August it was pausing its Galaxy project in Quebec due to the current economics of building lithium projects. And last month, it announced plans to put its Mt. Cattlin spodumene mine in Western Australia into care and maintenance.

Meanwhile, Rio Tinto has over the last six years shown increasing interest in the lithium space. In 2018, it reportedly tried to buy a $5 billion stake in SQM and in 2021, it started lithium production from waste rock at a demonstration plant located at a borates mine it controls in California.

In 2022, it acquired the Rincon project in Argentina, where it plans to develop a battery-grade lithium carbonate plant with an annual capacity of 3,000 tonnes. It has earmarked $350 million for the project.