Mongolia looking to replace Oyu Tolgoi copper mine expansion plan

The Mongolian Government is reportedly considering scrapping the deal with Rio Tinto to expand the Oyu Tolgoi project in the Gobi Desert.

A new agreement with improved terms for the project is planned to be signed by the government with Rio Tinto, Financial Times reported.

As part of the plan, Rio Tinto has been asked by the government if it is ready to mutually cancel its existing deal.

The Mongolian Government, through Erdenes Oyu Tolgoi, has a 34% stake in the Oyu Tolgoi copper-gold mine.

Turquoise Hill Resources holds the remaining 66% in the mine, which is located in the South Gobi region. Rio Tinto owns a roughly 50.8% stake in Turquoise Hill Resources.

As per the publication, the government intends to avoid acting unilaterally, which it considers would risk future foreign investment projects.

The copper-gold mine commenced production in 2013 as an open-pit operation through the Oyu Tolgoi deposit.

Scheduled to begin production in October 2022, the mine’s expansion involves developing the Hugo North (Lift One) as an underground operation.

The underground mine expansion project has faced several delays due to the funding dispute with the Mongolian Government.

Glencore subsidiary Prodeco to hand over mining contracts to Colombia

Glencore subsidiary Prodeco is set to start the process of relinquishing mining contracts in Colombia as its two mines continue to remain suspended.

The mining contracts will be returned to the Republic of Colombia through the National Mining Agency (ANM).

The step comes after ANM rejected Prodeco’s request to keep the Calenturitas and La Jagua mines in care and maintenance.

After ANM refused Prodeco’s request last month, the company carried out another operational review to identify additional cost efficiencies as the mining agency expected the prices of coal to remain low in its target markets.

However, the conclusion remained congruous with earlier reviews that the mines remain uneconomic to recommence activities. The two mines will be in care and maintenance until the formal process of relinquishing the contracts is complete.

In a statement, Prodeco said: “The decision to relinquish the mining contracts was not taken lightly and is a disappointing outcome. Grupo Prodeco has over the last 30 years invested in excess of $3bn and paid almost $3bn in royalties and taxes.

“We are proud that our investment in a multitude of social engagement projects and initiatives has delivered tangible improvements in the quality of life for the surrounding communities, and supported the important Peace Process in Colombia.”

USA Rare Earth mulls public offering of at least $1bn

Mining firm USA Rare Earth is reportedly planning to a stock-market listing this year at a valuation of more than $1bn.

Reuters, citing sources familiar with the matter, reported that USA Rare Earth is considering an initial public offering (IPO) or going public via a special purpose acquisition company (SPAC).

To explore potential listing on the New York Stock Exchange (NYSE), the mining company has hired Goldman Sachs and Bank of Montreal as advisors.

USA Rare Earth is developing the Round Top Mountain mine near Sierra Blanca, in Hudspeth County, Texas.

The Round Top Mountain mine said to hold one of the biggest deposits of heavy rare-earth elements (REE) in the US.

USA Rare Earth expects the potential offering to fetch between $300m to $500m. The proceeds will be used by the firm to partially finance the Round Top mine and processing facility, which is planned to commence operations by 2023.

The latest move by USA Rare Earth comes as the US and other countries are seeking to reduce their reliance on China’s rare earths minerals.

China is considered to be the world’s largest rare earths producer.

Freeport-McMoRan close in on $2.8bn copper smelter deal with Tsingshan

American copper major Freeport-McMoRan is reportedly on the verge of finalising a $2.8bn deal with China’s Tsingshan to build a copper smelter in Weda Bay, Indonesia.

Indonesian Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan told IDX Channel: “The smelter will produce copper pipes and wires of which output can be worth $10bn or more.”

The copper smelter will be equipped to produce copper products, which can be used as lithium battery components. It is also expected to support the country’s aim to build an electric vehicle (EV) supply chain.

Indonesia, which has is said to hold rich nickel ore resources, is seeking investments from the battery and car companies. Nickel is an important component in batteries that are used in EVs.

Luhut added: “If this goes according to plan, because the nickel plant would already have been running, by 2023 we would be able to produce lithium batteries.”

Freeport’s Indonesian unit spokesman was cited by the news agency as saying that the company remains committed to building another smelter.

Last year, Luhut said that the Indonesian Government requested that Freeport build a copper smelter in Weda Bay, North Maluku.

Landslides trap ten workers underground at Indonesian coal mine

Landslides at a coal mine in Indonesia’s South Kalimantan province have reportedly trapped ten workers.

Provincial Disaster Management Agency emergency unit head Abdul Rahim was reported by the Xinhua news agency as saying that the landslides occurred outside the underground area from the evening of 24 January to the afternoon of 25 January. This resulted in a mud flow, submerging the coal mine site.

Rahim noted: “The mud has fully submerged the underground area located in lower spots. Ten miners were working in the lower spots. We expect them to have moved to the higher places before the sites were inundated, so they can survive.”

12 of the 22 people working at the site escaped but sustained injuries, an official said.

Following the accident, search efforts are being carried out focusing on removing the mud with pumps to make entry to the underground site possible.

“Still, the strength of the pumps that we have is still weak. We need more pumps with higher power,” Rahim added.

The official noted that the trapped miners have food supplies but these could last for only three days.

China rescues 11 trapped workers from Hushan underground gold mine

Rescue teams have reportedly pulled 11 gold miners to safety on 24 January 2021, after 14 days trapped underground at the Hushan underground gold mine in Shandong province.

A total of 22 workers were trapped in the gold mine following an explosion on 10 January.

The miners were working at a depth of more than 600m when the explosion occurred, blasting the exit ladder from the Shandong Wucailong Investment-owned mine.

Although most of the rescued workers are in good condition, one of the miners was in extremely weak condition, reported Xinhua news agency.

The Ministry of Emergency Management mine rescue centre chief engineer Xiao Wenru was quoted by the news agency as saying: “We made a breakthrough this morning.

“After clearing these broken, powdery pieces, we found that there were cavities underneath … our progress accelerated.”

A day after 11 of the miners were rescued, nine were found dead.

According to the National Mine Safety Administration, mines in China are among the world’s deadliest and recorded mine-related deaths of 573 in 2020.

A similar accident was reported in September 2020 at the Songzao coal mine in south-west China that killed 16 of the 17 workers trapped in it. The incident was due to excessive levels of carbon monoxide.