Nippon Steel plans low-carbon raw materials production for green steel

Japanese steelmaker Nippon Steel is looking to produce more low-carbon raw materials, including “reduced iron” made using hydrogen, for green steel, reported Reuters.

Reduced iron is produced by removing oxygen from the iron ore, making metallic iron without melting it. Currently, natural gas is used to produce reduced iron.

However, global steelmakers are considering the use of hydrogen for reduced iron manufacturing to make the steelmaking process carbon dioxide-free. The aim is to meet with the surging demand for green steel.

The Japanese firm would also consider investing in projects to produce hydrogen-reduced iron with potential partners, according to Nippon Steel president Eiji Hashimoto.

Hashimoto also noted that Nippon Steel would mull joining an iron ore project, which has its own hydrogen plant capable of producing hydrogen from green electricity.

Nippon Steel holds stakes in multiple iron ore mines and coking mines.

Earlier this year, ArcelorMittal Nippon Steel India, a joint venture between ArcelorMittal and Nippon Steel, commenced the $7.2bn (Rs600bn) expansion of the Hazira flat steel plant in the Indian state of Gujarat. 

This will boost the plant’s crude steel capacity from nine million tonnes per annum (Mtpa) to 15Mtpa.

Hashimoto was quoted by Reuters as saying in a news conference: “We will be involved in raw materials as our own business, instead of simply procuring raw materials, such as iron ore and coking coal."

BHP signs scheme deed to buy OZ Minerals for $6.4bn 

Mining giant BHP has signed a scheme implementation deed (SID) to acquire all of the shares in Australia-based copper miner OZ Minerals Limited (OZL), by way of a scheme of arrangement, for $6.4bn (A$9.6bn) at $19.5 (A$28.3) apiece.

This indicates a 49.3% premium to OZL’s closing price of $13.1 (A$18.92) a share on 5 August 2022. 

The SID, which confirms the terms of scheme of arrangement, follows a non-binding indicative proposal made by BHP in November 2022. 

On 18 November 2022, BHP made a cash offer of $19.5 (A$28.3) per share to OZL, 13% higher than its previous bid of $17.3 (A$25) per share that was dismissed by OZL in August. The signing of the SID follows the completion of a four-week exclusive due diligence period.

The OZL board has unanimously recommended the shareholders to vote in favour of the offer if there is no superior bid.

The SID implementation is subject to conditions including clearance from regulators in Brazil and Vietnam, OZL shareholders and Australian courts. It also awaits the go-ahead from an independent expert conceding that the proposal is in the shareholders’ best interest.

BHP CEO Mike Henry said: “The combination of BHP and OZL’s assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development.” 

Rio Tinto concludes $3.1bn Turquoise Hill buyout

Anglo-Australian mining firm Rio Tinto has closed the takeover of Canadian miner Turquoise Hill Resources for a consideration of approximately $3.1bn.

The miner finally paid $32.1 (C$43) a share for the remaining 49% stake in Turquoise Hill it does not already own after a drawn-out bidding war.

This deal to take Turquoise Hill private simplifies Rio Tinto’s ownership of the Oyu Tolgoi mine located in the South Gobi region of Mongolia, while significantly strengthening its copper portfolio.

With the transaction now concluded, Rio Tinto holds a greater control in the Oyu Tolgoi project with a 66% direct stake. The remaining 34% interest is held by the Mongolian Government via Erdenes Oyu Tolgoi.

The deal completion follows clearance from the Yukon court in Canada and support from the majority of Turquoise Hill minority shareholders.

Thought to be one of the largest known copper and gold deposits in the world, the Oyu Tolgoi underground development is expected to have production of 500,000 tonnes per annum of copper.

Rio Tinto CEO Jakob Stausholm said: “Oyu Tolgoi is an outstanding asset with incredible people that will deliver significant long-term value for Rio Tinto and Mongolia."

Harmony Gold acquires Copper Mountain’s Eva copper project in Australia

Harmony Gold Mining has completed the acquisition of the Eva copper project in north-west Queensland, Australia, from Copper Mountain Mining for a total consideration of up to $230m.

The deal consideration includes a contingent payment of $60m. With the acquisition, Harmony will add 1.72 billion pounds of copper and 260,000oz of gold to its mineral reserves and extend its diversification into copper.

Currently, Harmony is carrying out a detailed review of the existing feasibility study of the Eva copper project.

Over a period of up to 12 months, Harmony plans to complete the project review process to determine the most effective way to execute and finance the project development.

The Eva Iron Oxide Copper gold deposit and its related tenements cover an area of 2,295km² within the North West Minerals Province in Queensland.

Harmony CEO Peter Steenkamp said: “The conclusion of this acquisition marks the beginning of our strategic diversification into copper, a future-facing metal.

"Eva Copper will further de-risk the business as it provides entry into a tier one jurisdiction, counter-cyclical diversification of revenue and meets Harmony’s investment criteria.

“In addition, Eva Copper is a fully permitted project and meets all environmental, social and governance requirements, demonstrating responsible stewardship.”

Thiess secures $230m contract extension for Indonesian coal mine

Thiess, the mining arm of the Cimic Group, has received a $230.6m (A$345m) contract extension from the Bayan Group to continue providing services at the Melak coal mine in East Kalimantan, Indonesia. 

Under the contract, which is effective from May 2023, Thiess will provide full mining services including load and haul, drill and blast, coal hauling and road maintenance and rehabilitation at the mine. 

Thiess Indonesia secured a contract in October 2008 for the development and operation of the Bayan Group-owned Melak coal mine located near Melak in East Kalimantan, for a period of eight years.

The Melak mine comprises two different mine concessions including Teguh Sinar Abadi and Firman Ketaun Perkasa.

Earlier this year, Thiess made an all-cash buyout proposal of $243.1m (A$350m) for Australian mining services company MACA. Under the bid implementation deed, Thiess offered $0.71 (A$1) in cash to MACA’s shareholders for each share held in the company. 

Thiess executive chair and CEO Michael Wright said: “Thiess has been delivering excellent outcomes for Bayan Resources at Melak since 2008. We strive to continue providing sustainable mining solutions for Bayan, building on our long, successful partnership. 

"This extension is a testament to our ability to deliver long-term safe and sustainable operations in Indonesia, while we continue to work on expanding our operations in other areas.” 

St Barbara to acquire Australia’s Genesis Minerals for $367m

Gold miner St Barbara has agreed to acquire rival Genesis Minerals for $367.1m (A$541.3m), which will result in the consolidation of their gold assets in Leonora, Western Australia.

The deal will result in the creation of a mid-tier gold producer, named Hoover House, which will exclusively focus on the Leonora District in Western Australia.

Under the agreement, shareholders of Genesis Minerals will receive 2.0338 new fully paid St Barbara ordinary shares for each share held in the company.

Genesis Minerals looks to raise $190.2m (A$275m) at $0.8 (A$1.20) a share, to fund the combined business and support the transaction.

St Barbara will also demerge its Atlantic gold operations in Canada, the Simberi gold mine in Papua New Guinea and other non-Leonora assets to St Barbara shareholders to form another new entity, Phoenician Metals.

Following scheme implementation, St Barbara shareholders will hold a 38% stake in Hoover House and Genesis Minerals’ shareholders will have a 41% stake.

In a press statement, the two firms said: “The resetting of the combined entity’s corporate support model, a write-up of Genesis’ depreciable tax cost base, and deferment of capital in relation to the Gwalia mill is expected to result in synergies with a net present value of approximately $138.3m (A$200m)."