By Ivana Sekularac and Aleksandar Vasovic

KORENITA, Serbia, Aug 26 (Reuters) – Four years from now, fields in the Jadar river valley in western Serbia where Djorjde Kapetanovic grows corn and soy to feed his cattle will be turned into a waste dump for Europe's biggest lithium mine.

Rio Tinto in July committed $2.4 billion to its Jadar project as global miners push into metals needed for the green energy transition, including lithium, which is used to make electric vehicle batteries. The Jadar project, once completed, would help make Rio a top 10 lithium producer, just as demand for EVs booms.

Opposition to the project is growing, however, because of concerns about possible environmental damage and protest rallies have become more frequent. In April, thousands gathered in Belgrade to protest against widespread pollution in the Balkan country and against the lithium mine near Loznica, 142 km (88 miles) southwest of the capital.

Once it reaches full capacity, the mine is expected to produce 58,000 tonnes of refined battery-grade lithium carbonate per year. That would make it Europe's biggest lithium mine in terms of production, Rio said.

In the village of Korenita, dairy farmer Kapetanovic said the mine, if opened, could leave him without income. Part of his land where he grows crop to feed his animals will be turned into a dump for mining waste, known as tailings, with compensation from the company.

Other areas of his land, his house and a cattle shed will be outside the mine, leaving Kapetanovic worried about exposure to possible pollution.

"Who would want to buy products made on the outskirts of the mine?" said Kapetanovic, who produces 10 tonnes (22,000 lb) of meat and 90,000 litres (23,775 gallons) of milk per year, making him one of the bigger producers in the Loznica area.

Rio Tinto Serbia CEO Vesna Prodanovic said the Anglo-Australian miner would meet all European Union and Serbian environmental regulations, including on the treatment of wastewater.

"There's simply no way for the construction to start without securing licences (and) if all those (EU standards) are not adhered to," she said in an interview.

"We take into account precipitation levels, prescribed dust levels. We take into consideration everything there is in the field. We are making all studies and tests to get clear data about what is the current situation in the area."

One study, commissioned by Rio on the mine’s environmental impact, concluded the mine should not be built as it will cause "irredeemable damage to the biosphere", an abstract obtained by Reuters found.

"The implementation of the planned activities, especially the disposal of industrial waste, will significantly impair biodiversity in the entire area of the planned works," the study by Belgrade University’s Faculty of Biology said.

"In … primary zones of (the mine's) influence, there will be complete and direct destruction of habitats with the disappearance of all organisms that inhabit them."

Rio said the biodiversity study was part of a wider feasibility study and it would conduct further research to "support the most advanced and most expensive solutions in nature protection, which would minimise the impact".

ECONOMIC BOOST

Lithium is central to the European Union's plans to secure an entire supply chain of battery minerals and materials as the use of electric vehicles increases.

Serbia, which sits on the world's 11th largest lithium reserves, is working its way through the accession process to join the EU.

For its own economy, the Jadar project is one of Serbia’s biggest foreign investments to date and could help to tackle rising unemployment in the Balkan country.

Rio said the project would create about 2,100 construction jobs and inject approximately 200 million euros ($235.32 million) per year into the domestic supply chain.

Energy minister Zorana Mihajlovic told Reuters that Serbia aimed, like the EU, to secure the entire production chain, including a potential battery plant and an electric vehicle plant.

Rio's Serbia CEO said the company's studies estimated the project would add 1 percentage point to Serbia's $51.4 billion annual GDP. It would also boost Loznica’s municipal budget by 60-70% annually, she said.

In June, Serbian President Aleksandar Vucic, who is under fire for supporting the project, said a referendum would be held to allow people to decide whether it should go ahead.

The absence of further details on the referendum has worried opponents. In July, Loznica municipal assembly, which is dominated by Vucic's Serbian Progressive Party and its allies, formally gave a green light for mine construction by approving a new municipal plan for land allocation.

Contacted by Reuters, the president's office had no immediate comment.

Rio has bought nearly half of the land required for the mine, which will be spread over roughly 387 hectares.

Some $100 million of Rio's investment has been earmarked for environmental protection, but activists say that is insufficient to compensate for potential damage.

One major concern for environmentalists is Rio's plan to put

waste dumps in the Korenita and Jadar rivers valley, an area prone to flash flooding.

In 2014, Korenita river flooding caused a closed mine's tailings dam to overflow, spilling toxic waste onto agricultural land.

Rio Tinto said it planned to convert the liquid waste into "dry cakes" to make it easier and safer to store and is planning for once-in-a-millennium floods in its construction.

($1 = 0.8499 euros) (Editing by Amran Abocar and Barbara Lewis)

BEDFORD, NS/ ACCESSWIRE / August 26, 2021 / Silver Spruce Resources Inc. (TSXV:SSE)(FRA:S6Q1) ("Silver Spruce" or the "Company") is pleased to announce promising gold and multi-element assay results of its Phase 2 ground exploration program on the 1,130-hectare Jackie Au-Ag property ("Jackie" or the "Property"). The program was focused around a pristine exploration target with encouraging Au-Ag assays from our Phase 1 prospecting and rock sampling (see Figures 1, 2 and 3). The work was performed on a 100-hectare section of the Property with grid-controlled detailed geological mapping and rock sampling focused on a 25-hectare central block covering the core of the gold and silver discovery area with additional wider spaced grid mapping of the surrounding area.

"We are excited about the potential for Jackie given the positive results and an original discovery with our early exploration campaigns. The intense silicate and oxide alteration with high-grade precious metal values ranging up to 9.65 g/t Au and 515 g/t Ag during Phase 1, and up to 4.15 g/t Au and 100 g/t Ag in separate samples during Phase 2, verified and extended the target area anomaly," said Greg Davison, Silver Spruce VP Exploration. "Our Hermosillo-based geological team completed tightly-spaced 25-50 metre grid sampling and mapping which successfully increased the target to 200m x 400m. A distinct northwesterly trend of anomalous precious metal and typical heavy metal pathfinder elements runs parallel to several local and regional lineaments which provide new untested targets for follow-up sampling."

Figure 1. Jackie and Diamante 2 Concession Location Map. Access from Tepoca south on Highway #117 and local road to La Quema. Discovery area 3km north of La Quema is indicated by the white arrow.

Assay results for 10 Phase 2 samples and 3 Phase 1 samples sorted by Au content are presented in Table 1. A total of 310 rock samples were collected to date in two programs.

Table 1. Select assay results sorted by Au g/t from Phase 1 and Phase 2 rock sampling – n=310 samples

Figure 2. Ridge located 50 metres above the valley floor, showing intense oxidation and argillic alteration peripheral to and within large polymetallic anomaly as indicated in Figure 1.

The Company, with a six-person team (two senior geologists, two junior geologist and two field assistants) and all necessary logistical support undertook a Phase 2 exploration program, including rock sampling and geological mapping of known areas exhibiting significant alteration or mineralization (see Figures 2 and 3), collection of structural data and alteration zoning to assist with vectoring toward potential Phase 3 drilling targets. The investigation of several known hyperspectral alteration targets identified from satellite imagery was deferred due to rainy season access limitations. All aspects of the exploration program were conducted with strict adherence to COVID-19 protocols for personal safety.

Figure 3. Outcrop sampling north of exposed ridge with high grade Au 9.56 g/t and Ag 515 g/t – sample 221009 showing intense zeolite, clay and jarosite alteration of andesite

Figure 4 illustrates the Phase 1 geochemistry, based on 75^th, 90^th, 95^th and 98^th percentiles using proportional symbols, for gold with the inset map for Au, Ag, Pb, Zn and Cd. Figure 5 illustrates the Phase 1 results for Au with an inset map for Phase 2 Au distribution. Figure 6 illustrates the Phase 1 and 2 results for Cu. The data clearly show a strong multi-element cluster effect (Au, Ag, Bi, Sb, Cd, Zn and Hg) and strong silicate alteration focused over the principal 200m x 400m target area extending for the pathfinder elements on a general northwesterly trend and open along strike.

The preliminary prospecting program identified a distinctive andesite ridge with intense oxidation, silicification and argillic alteration, and a notable paucity of vegetation located 35-50 metres vertical above the valley floor. Similar alteration, verified by preliminary aiSIRIS results of hyperspectral analysis, from the northern area of the ridge which was covered by thick vegetation, where exposed displayed intense replacement by zeolite, kaolinite, alunite, montmorillonite, opaline silica and muscovite and contained the bulk of the anomalous gold and silver values.

Geochemical analyses clearly identified a strong Au-Ag anomaly, commonly though not exclusively, associated with elevated Hg, Pb, Zn, Cd, As, Sb and Cu with spatial distribution and trends similar to the multi-element data recorded for the nearby El Mezquite property.

Figure 4. Phase 2 grid sampling areas on Phase 1 geochemistry (Au ppm only), Jackie property. Inset map with 50 metre grid location map and multi-element anomaly Au (ppm), Ag (ppm), Pb (ppm), Zn (ppm) and Cd (ppm).

Figure 5. Phase 2 grid sampling area (inset) on Phase 1 geochemistry (Au ppm), Jackie property. Inset map with cluster of anomalous Au and Ag assays up to 4.15 g/t Au and 100 g/t Ag in separate samples.

Figure 6. Phase 2 grid sampling area (inset) on Phase 1 geochemistry (Cu ppm), Jackie property. Inset map with cluster of anomalous Cu analyses with distinct northwesterly trend parallel to several local and regional lineaments.

Planning for the Phase 3 exploration program is underway with a view to additional ground work in Q4 2021, including preparation of the environmental report required for a drilling permit and targeting for Q1 2022 reverse circulation drilling. Interpretation of the geological, geochemical, hyperspectral, and property-wide ASTER, LANDSAT 8 and LiDAR imagery is ongoing.

The additional geochemistry and geological maps and images from the field program will be provided on the Silver Spruce website (www.silverspruceresources.com) in due course.

Project Background

The Company recently signed a Definitive Agreement (Press release November 30, 2020) with Colibri Resource Corp. to acquire 50% interest in Jackie, an early-stage precious metal project located 175 km east of Hermosillo, Sonora, Mexico. The large grassroots property is located in a very productive region only one to two kilometres south from our El Mezquite and Diamante properties and adjacent to the west of Minera Alamos' Santana project, and approximately six kilometres northwest of their Nicho deposit currently under development.

The Jackie Project is located within the western portion of the Sierra Madre Occidental Volcanic Complex within the prominent northwest-trending "Sonora Gold Belt" of northern Mexico and parallel to the precious metals-rich Mojave-Sonora Megashear.

Other nearby large operating mines include Alamos Gold's Los Mulatos gold mine and Agnico Eagle's La India gold mine located 50-60 km to the northeast, Agnico Eagle's Pinos Altos Mine, 95 km southeast and Argonaut's La Colorada Mine, 100 km to the west. Exploration is very active with adjacent and nearby properties reported to be held by Minera Alamos, Newmont, Garibaldi, Evrim, Kootenay Silver and Peñoles.

The 1,130-hectare Property is easily accessible from Hermosillo to the Tepoca area and heading south from Mexican Highway #16 or west from Highway #117, or from Ciudad Obregón travelling northeast on Hwy. #117 and west to the pueblo of La Quema with vehicles and then pack teams along dry river beds, dirt roads and trails. High voltage power lines are located on Highway #16.

Geochemical Analysis, Quality Assurance and Quality Control

Rock samples were delivered to the ALS sample preparation facility in Hermosillo, Sonora, Mexico. ALS Global in North Vancouver, British Columbia, Canada, is a facility certified as ISO 9001:2008 and accredited to ISO/IEC 17025:2005 from the Standards Council of Canada.

Pulps (50gram split) were submitted for Au analysis by Fire Assay with Atomic Absorption finish (Au-AA24) and Four Acid Digestion with Inductively Coupled Plasma Atomic Emission Spectrometry (ICP-AES) multi-element analyses (ME-ICP61m).

Splits of crushed rejects were sent to ALS in Reno, NV for hyperspectral analysis (HYP-PKG) using the Terraspec 4 and aiSIRIS identification of the principal silicate, sulphate, carbonate and hydrous oxide species, namely the alteration minerals and their relative intensity.

In-house quality control samples (blanks, standards, duplicates, preparation duplicates) were inserted into the sample set. ALS Global conducts its own internal QA/QC program of blanks, standards and duplicates, and the results were provided with the Company sample certificates. The results of the ALS control samples were reviewed by the Company's QP and evaluated for acceptable tolerances. All sample and pulp rejects are stored at ALS Global pending full review of the analytical data, and future selection of pulps for independent third-party check analyses, as requisite.

All of the metal values disclosed herein by Silver Spruce are reported from grab and channel samples which may not be representative of the metal grades. There is no record of historical sampling from previous exploration efforts on the Property.

Qualified Person

Greg Davison, PGeo, Silver Spruce VP Exploration and Director, is the Company's internal Qualified Person for the Jackie Project and is responsible for approval of the technical content of this press release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), under TSX guidelines.

About Silver Spruce Resources Inc.

Silver Spruce Resources Inc. is a Canadian junior exploration company which has signed Definitive Agreements to acquire 100% of the Melchett Lake Zn-Au-Ag project in northern Ontario, and with Colibri Resource Corp. in Sonora, Mexico, to acquire 50% interest in Yaque Minerales S.A de C.V. holding the El Mezquite Au project, a drill-ready precious metal project, and up to 50% interest in each of Colibri's early stage Jackie Au and Diamante Au-Ag projects, with the three properties located from 5 kilometres to 15 kilometres northwest from Minera Alamos' Nicho deposit, respectively. The Company also is acquiring 100% interest in the drill-ready and fully permitted Pino de Plata Ag project, located 15 kilometres west of Coeur Mining's Palmarejo Mine, in western Chihuahua, Mexico. Silver Spruce recently signed an LOI to acquire 100% interest in three exploration properties in the Exploits Subzone Gold Belt, located 15-40 kilometres from recent discoveries by Sokoman Minerals Corp. and New Found Gold Corp., central Newfoundland. Silver Spruce Resources Inc. continues to investigate opportunities that Management has identified or that have been presented to the Company for consideration.

Contact:

Silver Spruce Resources Inc.
Greg Davison, PGeo, Vice-President Exploration and Director
(250) 521-0444
gdavison@silverspruceresources.com

Michael Kinley, CEO
(902) 826-1579
mkinley@silverspruceresources.com
info@silverspruceresources.com
www.silverspruceresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, statements regarding the private placement.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.

SOURCE: Silver Spruce Resources Inc.

View source version on accesswire.com:
https://www.accesswire.com/661500/Silver-Spruce-Phase-2-Exploration-Extends-Gold-Silver-Target-on-its-High-Grade-Discovery-Jackie-Au-Ag-Property-Sonora-Mexico

TORONTO, Aug. 26, 2021 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce that in connection with required permitting for continued exploration at La Victoria, it’s 82%-owned Peruvian subsidiary, Compañia Minera Eloro Peru S.A.C. (“Eloro Peru”), entered into a surface rights agreement (the “Agreement”) with the Pallasca Community in the Pallasca Province, Ancash Department, Peru. The Agreement allows exploration activities, including drilling, to proceed at the San Markito epithermal silver drill target.

The San Markito target is located within the Victoria-APB Concession in the Pallasca District and Province, 430 km NNE of Lima, Peru. Surface mapping and sampling to date has confirmed high silver grades within a silicified breccia structure located at an altitude of 4050m above sea level. Significant silver values from San Markito include 994 g/t Ag with 0.35 g/t Au in a continuous diamond saw channel sample over 4.00m and 390 g/t Ag with 0.53 g/t Au over 1.53m (see December 14, 2016 Eloro Press Release). Induced polarization survey results indicate a steeply dipping low resistivity and higher chargeability anomaly at depth, spatially correlated with the surface mineralization. A 3000m drill program to test the continuity of the breccia mineralization along strike and down-dip is planned.

Since 2016, Eloro Peru has been actively engaged with local stakeholders from the Pallasca community and nearby hamlets in order to provide the necessary information to all concerned members. On July 24 2021, an extraordinary community assembly took place, where a majority of community members voted in favour of Eloro Peru’s land use proposal. Apart from the land rental payment, Eloro has also agreed to help the community avail itself to government infrastructure funds to enhance the community’s agricultural practices and access to water.

With the Agreement in place, Eloro Peru can now proceed with the drill permitting process with the Peruvian Ministry of Energy and Mines and the Water Authority. Geades Consulting S.A.C has been retained for this purpose.

Geological operations will recommence in September, 2021, under the supervision of Chief Geologist (Peru), Marcelo Alvarez, who led Eloro Peru’s 2017-2018 exploration activities. Mr. Alvarez brings 30 years of exploration experience in South American epithermal, mesothermal and porphyry deposit types. He also has extensive knowledge in the modeling and evaluation of mineral resources.

Eloro’s La Victoria joint venture partner, Burgundy Diamond Mines Limited, holds an 18% interest in Eloro Peru and pursuant to an option agreement, can increase their interest from 18% to 25% by expending a further $1,400,000, subject to the receipt of all required permitting.

Qualified Person

Luc Pigeon, B.Sc., M.Sc., P. Geo., General Manager of Compañia Minera Eloro Peru S.A.C. and a Qualified Person in the context of National Instrument 43-101 (“NI 43-101”), has reviewed and approved the technical content of this news release.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

After taking a beating over the past few weeks, oil prices have been surging on rising demand optimism, a major production outage in Mexico, and the first full U.S. regulatory approval of a COVID-19 vaccine. 

October crude and Brent were up 3% to $67.47/bbl and $70.83/bbl, respectively, a day after a 5% surge by both benchmarks snapped a seven-day losing streak after China claimed to have brought its coronavirus cases down to zero and opened up the Ningbo port, one of the busiest in the world, after a two-week shutdown.

About two weeks ago, China—once the epicenter of the virus—took an uncompromising approach by imposing widespread travel restrictions and new lockdowns. Authorities in Beijing curtailed public transport and taxi services in 144 of the worst-hit areas nationwide, including train service and subway usage in Beijing.

That seemed like overkill, with less than 1,000 cases of the delta virus reported nationwide and a good 61% of the population already fully vaccinated. However, Beijing opted to employ its tried-and-tested method of targeted lockdown that has been successful in stopping no less than 30 Covid-19 flare-ups in the past. The capital city of Beijing implemented a two-week quarantine for visitors from high-risk areas, halted the use of community spaces for entertainment, and also limited the number of visitors allowed at parks and scenic areas.

Chinese authorities also urged people to cancel vacations and business trips, especially those from high-risk areas, and also advised college students to delay their return to school for the new semester.

Well, it appears that Beijing has come out on top, once again.

"The developments out of China are reigniting expectations that oil demand would start to rise again," said Phil Flynn, senior market analyst at Price Futures Group Inc. has told Bloomberg.

Meanwhile, a major fire on a Mexican oil platform has wiped out more than 400,000 barrels a day of the nation's output, a development that has calmed nerves with OPEC+ expected to add a similar amount to the market beginning September.

Bullish for commodities

The latest oil price rally also comes with further signals that demand is strengthening.

Over the past two days, the difference between the nearest two December Brent futures contracts jumped by $1 a barrel, while the global benchmark increased its premium to WTI to the widest since April. 

Meanwhile, the American Petroleum Institute (API) has reported a 1.622 million decline in U.S. crude stockpiles, accompanied by a nearly 1 million drop in gasoline stocks. API has also reported a 245,000 barrel dip in distillate stocks last week, which unfortunately marks the smallest drop since January.  

The turnaround in demand sentiment has also helped boost other commodities, with iron ore prices jumping 10%.

Shares of iron miners Vale (NYSE:VALE), Rio Tinto (NYSE:RIO), and BHP (NYSE:BHP) are all trading higher as iron ore prices bounce off a spectacular collapse that saw prices crash ~25% over the past 30 days.

Iron ore futures in Singapore have rebounded as much as 10% to $149.65/metric, thanks in large part to the improved sentiment across all asset classes stemming from China's improved situation as well as a potential boost to the U.S. vaccination drive.

China's central bank has said it will try and stabilize the supply of credit and increase the amount of money supporting smaller businesses. There are expectations for further stimulus targeting the infrastructure sector, manufacturing, and real estate after the July slowdown left the economic situation looking bleak.

All eyes will now turn to the Jackson Hole symposium—being held virtually from Thursday—which is expected to offer important insights into how the Federal Reserve plans to scale back stimulus.

The dollar has lately hit a nine-month high, weighing heavily on dollar-priced commodities, including oil, due to a surge in safe-haven demand. The dollar's multi-faceted strengths have been on display once again following the release of weak U.S. retail sales data that underwhelmed against consensus estimates; Yet, the greenback has been gaining ground against its international peers due to expectations of the Fed to begin its taper program in September.

However, Jeff Gundlach (aka the bond king) says not to worry too much about the taper because the Fed intends to keep rates near zero for years to come.

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:

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Kirkland Lake, Ontario–(Newsfile Corp. – August 25, 2021) – RJK Explorations Ltd. (TSXV: RJX.A) (OTC Pink: RJKAF) Dr. Charles Fipke's lab, CF Mineral Research (CFM) in Kelowna, British Columbia, is analysing 12.2 tons of kimberlite of diamond drill core, surface excavation samples and reverse circulation drilling that Microlithics in Thunder Bay Ontario and CFM of Kelowna BC processed over the past 9 months, from 7 different kimberlites discovered.

Kimberlite indicator minerals (KIMs) were concentrated and tested, returning materially important results. KIM grain determinations were identified that commonly derive from kimberlite sources originating in the "diamond stability field." The diamond stability field is located from depths of about 200 km in the earth at the lower boundary of the continental lithosphere with the convecting mantle. The heavy mineral concentrates were probed and classified into 6 diamond indicator minerals: chromite, high manganese ilmenite, peridotitic pyroxene, clinopyroxene, eclogitic garnet and peridotitic garnet. Of the grains mounted for electron-microprobe analysis: diamond inclusion olivine forsterites, G10-2 peridotitic garnets, diamond inclusion G11 garnets, diamond inclusion clinopyroxenes, and diamond inclusion chromites, all formed in the diamond stability field were found. Further analysis was requested by Dr. Fipke of the picro-ilmenite chemistry to determine the degree of oxidation in the kimberlite magma to determine resorption of microdiamonds. CFM is also performing additional picking of the kimberlite indicator minerals from our largest kimberlite, HSM, requested by Dr. Fipke and once the picking and probing is done, RJK will receive the final report from CFM.

Dr. Fipke has requested more material from the Nicol Kimberlite discovery, specifically due to the unique diamond inclusion forsterites recovered so far, which have similar whole rock chemistry to forsterites from other diamond deposits analysed by CFM. The RC sample RJK recovered from Nicol Lake was only 56 kg. This particular kimberlite is of historical note, as Bernard Baruch's brothers, one of whom was also his business partner, and also his best friend, Richard P. Lydon, staked claims on either side of the lake, in February, 1907, shortly after it was reported that Tiffany and Co were sending a geological team to search for diamonds west of Lake Temiskaming.

RJK's Project Manager, Peter Hubacheck stated, "Based on initial discussions with Dr. Fipke regarding the chemical analysis of RJK's Lorrain Township kimberlite discoveries, it is possible that large diamonds, such as the Nipissing Diamond, could have originated from these kimberlites. The similar textures observed in drill core and consistent kimberlite emplacement geometry above the bedrock, but below the shallow overburden, suggests one eruptive event. However, the indicator mineral analyses discovered are not homogenous comparing the seven kimberlites, suggesting each kimberlite is different geochemically from one and other. We intend to update shareholders on our next steps after the complete report is delivered, and the indicator mineral charts have been created. Dr. Jim Renaud has been contracted to plot the indicator mineral analysis for all seven kimberlites, using the new data. Our intention is to determine the locations with the highest probability for finding large diamonds, and take statistically significant-sized samples to determine the diamond potential of our discoveries within the "Historic Cobalt Mining Camp."

Considering the scale, and number of discoveries that have been made, RJK is finalizing a new, detailed, interactive property map, compiled by Insidexploration to be published for shareholders in the near future.

Mr. Peter Hubacheck, P.Geo., Project Manager for RJK and the Qualified Person as defined by National Instrument 43-101 has approved the technical disclosure in this release.

Contact Information
Glenn Kasner, President
Mobile: (705) 568-7567
info@rjkexplorations.com

Web Site: https://www.rjkexplorations.com/
Company Information: Tel: (705) 568-7445

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This news release includes certain forward-looking statements, which may include, but are not limited to, statements concerning future mineral exploration and property option payments. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "will", "anticipate", "believe", "plan", "estimate", "expect", "intend", "propose" and similar expressions. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, the financial resources of the Corporation being inadequate to carry out its stated plans. RJK assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94362

VANCOUVER, BC, Aug. 25, 2021 /CNW/ – The following issues have been halted by IIROC:

Company: RJK Explorations Ltd.

TSX-Venture Symbol: RJX.A

All Issues: Yes

Reason: At the Request of the Company Pending News

Halt Time (ET): 9:29 AM

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – Halts/Resumptions

View original content: http://www.newswire.ca/en/releases/archive/August2021/25/c7399.html

VANCOUVER, BC, Aug. 25, 2021 /CNW/ – Trading resumes in:

Company: RJK Explorations Ltd.

TSX-Venture Symbol: RJX.A

All Issues: Yes

Resumption (ET): 12:30 PM

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – Halts/Resumptions

View original content: http://www.newswire.ca/en/releases/archive/August2021/25/c4306.html

MELBOURNE, Australia, August 24, 2021–(BUSINESS WIRE)–Rio Tinto and Sumitomo Corporation today announced a partnership to study the construction of a hydrogen pilot plant at Rio Tinto’s Yarwun alumina refinery in Gladstone and explore the potential use of hydrogen at the refinery.

The two global companies have signed a letter of intent that focuses on Yarwun as the location for a Gladstone hydrogen plant that Sumitomo has been studying. If the project proceeds, the pilot plant would produce hydrogen for the recently announced Gladstone Hydrogen Ecosystem.

The study supports the efforts of Australian, Queensland and local governments to establish Gladstone as a clean hydrogen hub of the future.

Rio Tinto Australia Chief Executive Kellie Parker said "Rio Tinto has a long relationship with Sumitomo and we are delighted to partner with them to explore the possibilities of hydrogen, not only for our own refinery, but for Sumitomo to supply industry more broadly in Gladstone.

"Reducing the carbon intensity of our alumina production will be key to meeting our 2030 and 2050 climate targets. There is clearly more work to be done, but partnerships and projects like this are an important part of helping us get there."

Sumitomo Corporation’s Energy Innovation Initiative Director Hajime Mori said "We are excited about working together with Rio Tinto as our long-term partner to develop this hydrogen project in Gladstone and working toward our company’s vision of achieving carbon neutrality by 2050.

"We believe the pilot plant will play a significant role in establishing the Gladstone Hydrogen Ecosystem.

"Sumitomo has commenced the Design Study and Preliminary Master Planning to build the Gladstone hydrogen ecosystem and we will continue to work towards future hydrogen exports from Gladstone.

Deputy Premier and Minister for State Development Steven Miles said Gladstone is an industrial powerhouse and this partnership presents a great opportunity for the region and for Queensland.

"This is only the beginning of a wave of international collaborations that will lead to new industries and new jobs underpinned by the supply of renewable energy," Mr Miles said.

"With the Palaszczuk Government’s strong commitment to creating more jobs in emerging industries, we will work to keep Queensland at the forefront of renewable hydrogen and the opportunities that come with it."

Minister for Energy, Renewables and Hydrogen Mick de Brenni said the Palaszczuk Government was developing Queensland’s Energy Plan to reinforce our platform for international partnerships focused on new technology and a stronger Australia.

"This is a plan to create a renewable energy ecosystem that will power our low-carbon ambitions to transform industry, create thousands of jobs for Queenslanders, and decarbonise not only Queensland but the nation."

Minister for Regional Development and Manufacturing and Minister for Water Glenn Butcher said the partnership would provide important economic opportunities for the entire Central Queensland region.

"Gladstone’s world-class deep water port, water security through Awoonga Dam, and industry attraction via the local State Development Area have set Gladstone up to become the hydrogen capital of Australia, providing massive employment and supply chain opportunities both locally and in the Central Queensland region."

The Sumitomo partnership complements a recently announced feasibility study into using hydrogen to replace natural gas in the alumina refining process at Yarwun and provides the potential for larger-scale implementation if the studies are successful.

About Rio Tinto:

Rio Tinto produces high-quality iron ore, copper, aluminium, and minerals that have an essential role in enabling the low-carbon transition. We have publicly acknowledged the reality of climate change for over two decades and have reduced our emissions footprint by over 30 percent in the decade to 2020. We have set 2030 targets to reduce our absolute emissions by 15% and our emissions intensity by 30% relative to our 2018 baseline. These targets are consistent with a 45% reduction in absolute emissions, relative to 2010 levels, and the Intergovernmental Panel on Climate Change (IPCC) pathways to 1.5°C. They are supported by our commitment to spend approximately $1 billion on emissions reduction initiatives over the first five years of the ten-year target period. In 2020, we set new Scope 3 emissions reduction goals to guide our partnership approach across our value chain. Read more about our approach to climate change: www.riotinto.com/invest/reports/climate-change-report

About Sumitomo Corporation:

Sumitomo Corporation ("SC") is a leading Fortune 500 global trading and business investment company with 135 locations (Japan: 22, Overseas: 113) in 66 countries and regions. The entire SC Group consists of more than 900 companies. SC conducts commodity transactions in all industries utilising worldwide networks, provides customers with financing, serves as an organiser and a coordinator for various projects, and invests in companies to promote greater growth potential. SC’s core business areas include six business units: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics, and one initiative: Energy Innovation.

Sumitomo Corporation established a new business organisation entitled the Energy Innovation Initiative (EII) in April 2021 which will carry this Gladstone project. In order to greatly contribute to the achievement of our long-term goals toward climate change mitigation, "Carbon neutralisation in 2050" and "Realisation of a sustainable energy cycle", we will accelerate our efforts for the materialisation of a hydrogen society by promoting hydrogen related businesses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210823005690/en/

Contacts

Media Relations, United Kingdom
Illtud Harri
M +44 7920 503 600

David Outhwaite
T +44 20 7781 1623
M +44 7787 597 493

Media Relations, Americas
Matthew Klar
T +1 514 608 4429

Media Relations, Australia
Jonathan Rose
T +61 3 9283 3088
M +61 447 028 913

Matt Chambers
T +61 3 9283 3087
M +61 433 525 739s

Jesse Riseborough
T +61 8 6211 6013
M +61 436 653 412

Investor Relations, United Kingdom
Menno Sanderse
T: +44 20 7781 1517
M: +44 7825 195 178

David Ovington
T +44 20 7781 2051
M +44 7920 010 978

Clare Peever
M: +44 7788 967 877

Investor Relations, Australia
Natalie Worley
T +61 3 9283 3063
M +61 409 210 462

Amar Jambaa
T +61 3 9283 3627
M +61 4 7286 5948

Rio Tinto plc
6 St James’s Square
London SW1Y 4AD
United Kingdom
T +44 20 7781 2000
Registered in England
No. 719885

Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia
T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

media.enquiries@riotinto.com
riotinto.com

Follow @RioTinto on Twitter

Category: General

A look at the shareholders of Deep Yellow Limited (ASX:DYL) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of AU$231m, Deep Yellow is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Deep Yellow.

Check out our latest analysis for Deep Yellow

What Does The Institutional Ownership Tell Us About Deep Yellow?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Deep Yellow. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Deep Yellow, (below). Of course, keep in mind that there are other factors to consider, too.

It would appear that 7.6% of Deep Yellow shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Paradice Investment Management Pty Ltd. is currently the largest shareholder, with 9.4% of shares outstanding. Resource Capital Investment Corporation is the second largest shareholder owning 7.6% of common stock, and Collines Investments Ltd holds about 6.8% of the company stock. In addition, we found that John Borshoff, the CEO has 3.7% of the shares allocated to their name.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Deep Yellow

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Deep Yellow Limited. It has a market capitalization of just AU$231m, and insiders have AU$22m worth of shares, in their own names. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public — including retail investors — own 54% of Deep Yellow. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 7.8%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Deep Yellow (at least 2 which make us uncomfortable) , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

LONDON, August 24, 2021–(BUSINESS WIRE)–Rio Tinto has today commenced the process of restarting operations at Richards Bay Minerals (RBM) in South Africa. This follows a stabilisation of the security situation around the mine, supported by the national and provincial government, as well as substantive engagement with host communities and their traditional authorities.

Rio Tinto chief executive Minerals Sinead Kaufman said "The safety and security of our people has been our priority throughout and we recognise the collaboration and constructive dialogue we have had with all stakeholders to get us into a position where we can restart operations and resume contributing to the host communities, KwaZulu-Natal and South Africa. I also acknowledge the resilience and dedication shown by all our people at RBM over the past weeks."

Operations will be ramping up to capacity as soon as possible. The overall impact of the suspension of operations, including the shutdown of furnace number 4 as announced on 21 July 2021, is still to be assessed. At this time, the force majeure declared on customer contracts remains in place.

This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210824005423/en/

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

Media Relations, UK
Illtud Harri
M +44 7920 503 600

David Outhwaite
M +44 7787 597 493

Media Relations, Americas
Matthew Klar
T +1 514 608 4429

Investor Relations, UK
Menno Sanderse
M: +44 7825 195 178

David Ovington
M +44 7920 010 978

Clare Peever
M +44 7788 967 877

Rio Tinto plc
6 St James’s Square
London SW1Y 4AD
United Kingdom

T +44 20 7781 2000
Registered in England
No. 719885

Media Relations, Australia
Jonathan Rose
M +61 447 028 913

Matt Chambers
M +61 433 525 739

Jesse Riseborough
M +61 436 653 412

Investor Relations, Australia
Natalie Worley
M +61 409 210 462

Amar Jambaa
M +61 472 865 948

Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia

T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

riotinto.com

Category: RBM

Vancouver, British Columbia–(Newsfile Corp. – August 24, 2021) – Quaterra Resources Inc. (TSXV: QTA) ("Quaterra" or the "Company") is pleased to announce the appointment of Mr. Nicholas Lewallen, P.E. as Director of Projects for the Company. Mr. Lewallen is a projects and construction professional with extensive experience advancing mining projects through to production in both domestic and international jurisdictions. Mr. Lewallen is a licensed Professional Engineer and holds a civil engineering degree from the University of Wyoming.

"I welcome Mr. Lewallen to the Company as the project leader for the advancement of the MacArthur oxide copper mine through our ongoing PFS efforts," stated Mr. Travis Naugle, CEO of Quaterra. "His track record in efficiently developing mining projects while maintaining high environmental standards will allow the Company to focus on delivering value to shareholders by advancing the project towards the domestic production of copper at the MacArthur mine. We look forward to continuing to demonstrate our commitment to developing our MacArthur oxide copper project, and other strategic copper assets, in the State of Nevada."

Quaterra Resources further announces the completion of the metallurgical sampling program for the MacArthur oxide copper project. Approximately 4,445 ft (1,355 m) of PQ-sized core were drilled, generating 12 tons (11 tonnes) of representative sample, thereby achieving a key intermediate step to the Pre-Feasibility Study (PFS). In addition to the completion of the metallurgical sampling program, assays from the 5,147 ft (1,569 m) of MacArthur oxide and sulfide resource drilling are expected in the near future.

Additionally, the Company announces that on August 20, 2021 it filed a Petition for Judicial Review of the Declaration of Forfeiture of certain water use permits and certificates long-held by the Company's wholly-owned subsidiary, Singatse Peak Services. This Petition is in response to the Declaration of Forfeiture the Company received from the Division of Water Resources of the State of Nevada on July 23, 2021.

About Quaterra Resources Inc.

Quaterra Resources Inc. is a copper-gold development and exploration company focused on projects with the potential to host large-scale mineral deposits attractive to major mining companies. It is advancing its MacArthur oxide copper project in the historic Yerington Copper District, Nevada. It continues to investigate opportunities to acquire prospects in North America on reasonable terms and the partnerships with which to advance them.

On behalf of the Board of Directors,

Stephen Goodman,
President, Quaterra Resources Inc.

For more information please contact:

Karen Robertson
Corporate Communications
778-898-0057

Email: info@quaterra.com
Website: www.quaterra.com

Disclosure note:

Some statements in this news release are forward-looking statements under applicable United States and Canadian laws. These statements are subject to risks and uncertainties which may cause results to differ materially from those expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Company does not undertake to update any forward-looking statement that may be made from time to time except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94175

Crude prices recovered for the second day in a row, fueled by optimism about falling COVID-19 infections in China and by a major production outage in the Gulf of Mexico

Source: Baker Hughes.

Chart of the Week

Indian Crude Imports Drop to 1-Year Low in July

– Indian demand seems to have bottomed out in July, hitting a 1-year low in crude oil imports at 3.4 million b/d.

– The weak readings come from a double whammy of refinery maintenance in at least six major refineries across the country and still-high product stocks that were slow to clear during the April-May lockdowns.

– With the monsoon season largely over and refineries coming back from seasonal maintenance, forthcoming months should see tangible improvements, boosted by a narrowing Brent-Dubai EFS (ie more arbitrage barrels coming in).
– August imports so far seem to be indicating a gradual rebound in Indian demand, with arrivals between August 01-23 averaging 3.8 million b/d, up by 400,000 b/d month-on-month.

Market Movers

– S&P warned that it might downgrade the credit rating of Australian energy firm BHP (NYSE:BHP) after it sold its oil business to Woodside in a nil-premium merger. The potential downgrade to BBB+ would see BHP’s rating drop to its lowest level since it was first rated in 1995.

– Brazil’s NOC Petrobras (NYSE:PBR) launched operations at its 180 kbpd Carioca FPSO in the Sepia field, some 200km off the coast in water depth of 2200 meters. Petrobras’ stocks failed to react so far.

– Royal Dutch Shell (NYSE:RDS.A) lost its OML 11 block in Nigeria after a court decision ruled the Anglo-Dutch major wasn’t entitled to renew it, coming only several weeks after Shell paid a $111 million fine for a decades-old oil spill. Shell’s leaving Nigeria seems imminent now.

Tuesday, August 24, 2021

Crude prices recovered somewhat from last week’s freefall, boosted by improving signals coming out of East Asia (China reporting no locally transmitted infections) as well as the Ku-Maloob-Zaap platform seeing a major supply disruption in offshore Mexico. ICE Brent quotes swung back above the $70 per barrel mark, whilst WTI futures trended around $67.5 per barrel, further extending the widening Brent-WTI spread.

Hedge Funds Keep on Selling Crude. Hedge funds and money managers have sold petroleum for the seventh time in nine weeks, Reuters reports, as demand concerns have bitten into the summer season’s bullish sentiment. The sales were equivalent to 40 MMbbls in the six most important futures in the week to 17 August.

Ku-Maloob-Zaap Fire Debilitates Mexico Offshore Output. A fire on a PEMEX-operated offshore oil platform connected to the Ku-Maloob-Zaap complex (40% of Mexico’s crude output) killed at least 5 people, forcing the Mexican NOC to decrease output as the platform ran out of natural gas for reinjection.

Guyana to Pick Crude Marketer from 15 Companies. Fifteen companies have bid to become Guyana’s crude oil marketer, with China’s Sinochem (SH:600500) bidding the lowest price at $0.02 per barrel. The lowest bid might not guarantee the deal as Guyana was seeking for an experienced trading company with solid monthly crude marketing volumes.

ExxonMobil Negotiates PNG Deal Again. The government of Papua New Guinea relaunched talks with US major ExxonMobil (NYSE:XOM) on the P’nyang gas project following a 2-year hiatus. The negotiations were broken off after the two sides failed to agree if P’nyang should be channeled into a separate train of PNG LNG.

Baltic Freight Index Rises to Highest Since 2010. The Baltic Exchange’s sea freight Baltic Index continues to soar, now standing at 4,147 points, with capesize rates increasing for 11 straight sessions already. Shipping constraints in China coupled with robust commodity demand remain the main drivers of the ongoing freight rate surge.

GM Recalls Every Chevy Bolt EV. General Motors (NYSE:GM) indefinitely halt the sales of all Chevy Bolt EVs and recalled all models produced in 2019-2022 due to fire risks from the car’s high-voltage battery pack, dealing a $1 trillion blow to the US carmaker.

Panama Canal Maintenance to Sap Transit Capacity. The Panama Canal will go into scheduled maintenance between 29 August – 10 September, pushing up freight prices in the Western Hemisphere and severely impacting the transiting capacity for non-booked ships which will be forced to wait 14-15 days to pass.

Chinese Merger to Create Third-Largest Steelmaker. The long-mooted merger of Chinese steelmakers Ansteel Group and Ben Gang has started last week, propelling the new firm to become the third globally after Baowu Group and ArcelorMittal (AMS:MT) amid a wide-ranging consolidation drive within China’s bloated steel sector.

Gazprom Ups 2021 Price Forecast. Russian gas giant Gazprom (MCX:GAZP) has revised its 2021 average European sales price for the third time this year already, hiking it to $270 per Mcm, sending its stock to an all-time high.

Afghanistan Runs Risk of Product Dearth. Following Taliban’s takeover of Afghanistan, product exports to Afghanistan (which doesn’t have a conventional refinery) stopped altogether. Before August most of the 20-25kbpd of products supplied to the country was railed in from the Turkmenbashi Refinery in Turkmenistan, currently only Iran supplies fuel across the border.

Chinese Coking Coal Futures Soar. Coke and coking coal futures on the Dalian Commodity Exchange surged this week amidst rumours of an impending two-week suspension in coal imports from Mongolia, with the latter trading at an all-time high of 3050 yuan per tonne ($470 per tonne).

BP Drills First Exploration Well in Azerbaijan’s SWAP Block. Operating the Shallow Water Absheron Peninsula (SWAP) block offshore Azerbaijan, UK-based major BP (NYSE:BP) spudded the first wildcat in the acreage at the North Khali area in water depths of some 40 meters.

Gold Steady Above the $1,800/oz Mark. Following a surge late last week, gold prices remained above the $1,800 per ounce threshold, back to where they were a month ago, as investors continue to speculate whether the US Federal Reserve would delay tapering or not.

By Tom Kool for Oilprice.com

More Top Reads From Oilprice.com:

• Europe Faces LNG Supply Crunch
  

• Brent Climbs Back Above $70 On Major Production Outage
  

• ‘Skimming Stones’ Pattern Shows Wall Street Is Wrong About Oil

Read this article on OilPrice.com

(Bloomberg) — BHP Group and Mitsubishi Corp. will deploy electric pickup trucks and fast-charging units at an Australian coal mine to test technology that could aid the challenging task of cutting the sector’s greenhouse gas emissions.

The BHP Mitsubishi Alliance joint venture, Australia’s top coal producer, will initially use two of Canadian firm Miller Technology Inc.’s Relay trucks to transport workers at the Broadmeadow mine in Queensland. The vehicles — which can be juiced up in about 20 minutes for a 10-hour shift — will be backed by Tritium Pty Ltd. chargers that are adapted for use in harsh mining environments.

Miners are beginning to test out options to replace their vast diesel-powered fleets, including pickups and excavators, with zero-emissions alternatives, a step that could assist in curbing the industry’s sprawling climate footprint. Fortescue Metals Group Ltd. is adding hydrogen fuel-cell buses, while BHP, Vale SA and Rio Tinto Group have challenged suppliers to speed up development of large electric haul trucks.

Eliminating all combustion-engine vehicles at mines would require major investment and only tackle a portion of their pollution. Use of diesel, including by mining equipment, accounts for about 40% of BHP’s so-called scope 1 and 2 greenhouse gas emissions, the company said in its most recent annual climate report.

“The new electric transporters are a major step toward safer and more sustainable underground mining,” BMA President James Palmer said in a statement. The Relay trucks will replace diesel vehicles at the mine, and BMA plans a broader fleet replacement program that will eventually retire its entire diesel fleet.

Brisbane-based charger manufacturer Tritium, which in May reached an agreement to go public via a merger with a special purpose acquisition company, sees further opportunities to supply charging equipment to miners.

Read: Fastest Electric Car Chargers Waiting for Batteries to Catch Up

The industry will need “charging technology that is sealed to protect against sediment, dust and moisture, and rated to operate in harsh conditions,” Jane Hunter, Tritium’s chief executive officer, said in a statement.

BHP is seeking to lower greenhouse gas emissions from its own operations — a small fraction of the total — by almost a third by 2030 and to zero by 2050. The company last week agreed to split off its oil and gas unit to accelerate a retreat from fossil fuels, and is working with customers to reduce emissions.

(Updates with details in third paragraph.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

VANCOUVER, BC, Aug. 24, 2021 /CNW/ – Capella Minerals Ltd. (TSXV: CMIL) (FRA: N7D2) (the "Company" or "Capella") is pleased to announce that it has signed a binding Letter of Intent ("LOI") with Cullen Resources Limited (ASX: CUL)("Cullen") through which Capella may earn-in to Cullen's Katajavaara and Aakenus gold(-copper) projects in the highly-prospective Central Lapland Greenstone Belt ("CLGB") of northern Finland (Figure 1). The Katajavaara and Aakenus projects lie immediately adjacent to the productive Sirkka Thrust Zone, a regional structural corridor within the CLGB which is associated with numerous occurrences of both gold and base metals.

Highlights

• Cullen's Katajavaara and Aakenus gold(-copper) projects lie along the highly-mineralized Sirkka Thrust Zone in the CLGB. The Cullen projects surround Outokumpu Oy's former gold-copper mining operation at Sattopora and the S2Resources/Kinross Gold Joint Venture ("JV") at Home, in addition to lying along strike from major recent exploration discoveries at Ikkari (Rupert Resources Ltd) and Aamurusko (Risti-Launi; Aurion Resources Ltd)¹.

• Scandinavia's largest operating gold mine – Agnico Eagle Mines Ltd's Kittila Gold Mine (2020 production – 208,125 oz Au; Reserves 30.4 MT @ 4.1 grams per tonne Au for 4Moz Au; Agnico Eagle Mineral Reserves and Resources Statement December 31, 2020; https://agnicoeagle.com/)¹ – lies directly to the NE of the Cullen projects.

• The binding LOI provides Capella with the opportunity to acquire an initial 70% in Cullen Finland Oy (Cullen's 100%-owned Finnish subsidiary; "Cullen Oy", and registered owner of the Katajavaara Exploration Permit Licence Application ("EPLA") and the Aakenus Reservation) through an initial cash payment to Cullen of AUD 50,000. Subsequently, a total USD 250,000 investment in exploration over a two-year period and staged cash payments to Cullen totalling USD 225,000 over a three-year period are required. Capella may increase its interest in Cullen Oy by an additional 10% (for a total 80% interest) by investing an additional USD 750,000 in exploration over a further two-and-a-half years.

• The Katajavaara EPLA and Aakenus Reservation cover approximately 200 square kilometres of highly-prospective terrain for the discovery of new gold and copper deposits.

• Compilations of historical data from both the project areas and broader district are well underway, with initial targets having already been identified from historical auger till sampling.

• Finland continues to lie within the top 10 mining destinations globally as determined by the independent Fraser Institute's annual survey of mining jurisdictions.

Eric Roth, Capella's President and CEO, commented today: "I am very pleased to be announcing the signing of this LOI with Cullen for the Katajavaara and Aakenus gold(-copper) projects in northern Finland. Despite hosting several world-class gold and base metals deposits, the Central Lapland Greenstone Belt remains relatively underexplored and clearly possesses significant potential for new discoveries. The Katajavaara and Aakenus projects represent logical "bolt-on" acquisitions to our existing portfolio of high-grade copper and gold projects in Norway and Sweden, respectively, and consolidates Capella as one of the premier explorers/developers with a focus on Scandinavia".

Terms of the LOI

• Capella will acquire an initial 70% interest in Cullen Oy (Cullen's 100%-owned Finnish subsidiary and registered owner of the Katajavaara and Aakenus gold-copper projects) in return for paying Cullen AUD 50,000 upon the transaction receiving TSX.V Exchange and regulatory approval (the "Closing Date").

• Capella will be required to invest a total of USD 250,000 in exploration expenditures on the two projects over a 24 month period from the Closing Date.

• Capella may then acquire a further 10% interest in Cullen Oy (for a total 80% interest) in return for a further USD 750,000 investment in the two projects over a 4.5 year period from the Closing Date.

• Cullen will then be free carried until the completion of a Pre-Feasibility Study ("PFS") on either of the two projects. Thereafter, a standard dilution formula will apply and should either party's direct interest fall to below 10% then they will revert to a 2% Net Smelter Royalty (with 1% being purchasable for USD 1 million).

In addition, the following cash payments are required to be made to Cullen:

• USD 50,000 upon the first anniversary of the Closing Date

• USD 75,000 upon the second anniversary of the Closing Date

• USD 100,000 on the third anniversary of the Closing Date

The binding LOI with Cullen remains subject to acceptance by the TSX Venture Exchange.

Qualified Persons and Disclosure Statement

The technical information in this news release relating to the Southern Gold Line project has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101, and approved by Eric Roth, the Company's President & CEO, a Director, and a Qualified Person under NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and is a Fellow of the Society of Economic Geologists (SEG). Mr. Roth has 30 years of experience in international minerals exploration and mining project evaluation.

On Behalf of the Board of Capella Minerals Ltd.

"Eric Roth"
___________________________
Eric Roth, Ph.D., FAusIMM
President & CEO

About Capella Minerals Ltd

Capella is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on high-grade gold and copper deposits. The Company's copper focus is currently on the discovery of high-grade VMS-type deposits within 100%-owned, district-scale land positions around the past-producing Løkken and Kjøli copper mines in central Norway. The Company's precious metals focus is on the discovery of high-grade gold deposits on its 100%-owned Southern Gold Line Project in Sweden, in addition to its active Canadian Joint Ventures with Ethos Gold Corp. at Savant Lake (Ontario) and Yamana Gold Inc. at Domain (Manitoba). The Company also retains a residual interest (subject to an option to purchase agreement with Austral Gold Ltd) in the Sierra Blanca gold-silver project in Santa Cruz, Argentina.

Field activities are ongoing on all projects, with the primary focus being to advance priority targets through the permitting process and onwards to drilling and discovery.

The Company also holds marketable securities in Cerrado Gold Inc. (TSXV:CERT; 833,334 common shares) and Ethos Gold Corp. (TSXV:ECC; 2 million common shares), providing Capella shareholders with indirect exposure to both exploration and operational success by these Companies.

Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of Capella, including the timing, completion of and results from the exploration and drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by Capella in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and Uncertainties" in Capella's most recently filed MD&A. Capella does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

¹ References made to nearby mines and analogous deposits provide context for the Katajavaara and Aakenus projects, but are not necessarily indicative that these projects hosts similar tonnages or grades of mineralization.

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SOURCE Capella Minerals Limited

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Vancouver, British Columbia–(Newsfile Corp. – August 23, 2021) – MAX RESOURCE CORP. (TSXV: MXR) (OTC Pink: MXROF) (FSE: M1D2) ("Max" or the "Company") is pleased to report the Company has received proceeds of $1,359,522 as a result of the exercise of 9,711,089 common share purchase warrants.

The warrants were issued in connection with a private placement closed August 19, 2020 and were set to expire August 19, 2021. The Company intends to use the proceeds of the warrant exercise for mineral exploration and general working capital purposes.

"We would like to thank our long-term shareholders, for supporting the Company through the process of exercising these warrants. The exercise of these warrants provides additional funds for Max's well-financed exploration programs in both Colombia and Peru," commented Max CEO, Brett Matich.

ABOUT MAX RESOURCE CORP.

Max Resource Corp. is a copper and precious metals exploration company, engaged in advancing both newly discovered global scale CESAR copper-silver project (100% owned) in Colombia and the newly acquired RT Gold project (100% earn-in) in Peru. Both projects have potential for the discovery of large-scale mineral deposits; both stratabound-type copper-silver in Colombia and high-grade gold porphyry and massive sulfide in Peru.

Max Resource was awarded a Top 10 Ranked Company in the Mining Sector on the TSX Venture 50™ for 2021, achieving a market cap increase of 1,992% and a share price increase of 282% in 2020.

For more information visit: https://www.maxresource.com/
For more information visit: www.tsx.com/venture50
TSX Venture 50™ for 2021 video: MAX Resource Corp. (TSXV: MXR) – 2021 TSX Venture 50 – YouTube

For additional information contact:

Max Resource Corp.
Tim McNulty
E: info@maxresource.com
T: (604) 290-8100

*The Venture 50 ranking is provided by TSX Venture Exchange Inc. ("TSXV") for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of this information and are not responsible for any errors or omissions in or any use of, or reliance on, this information. The Venture 50 program is not an invitation to purchase securities listed on TSX Venture Exchange. TSXV and its affiliates do not endorse or recommend any of the referenced securities or issuers, and this information should not be construed as providing any trading, legal, accounting, tax, investment, business, financial or other advice and should not be relied on for such purposes"

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the TSXV. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the commercialization plans for Max Resources Corp. described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's filings with Canadian securities regulators, which filings are available at www.sedar.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94043

Toronto, Ontario–(Newsfile Corp. – August 23, 2021) – Eric Sprott announces that on August 21, 2021, 6,666,667 common share purchase warrants (Warrants) of Aben Resources Ltd., (held by 2176423 Ontario Ltd., a corporation he beneficially owns) expired unexercised representing a decrease in holdings of approximately 4.8% of the outstanding common shares (Shares) on a partially diluted basis since the date of the last early warning report. Prior to the expiry of these Warrants, Mr. Sprott beneficially owned and controlled 6,866,667 Shares and 6,666,667 Warrants representing approximately 5.3% of the outstanding Shares on a non-diluted basis and approximately 10.0% on a partially diluted basis assuming the exercise of such Warrants.

As a result of the Warrant expiry, Mr. Sprott now owns and controls 6,866,667 Shares representing approximately 5.3% of the outstanding Shares on a non-diluted basis. The Warrants expiry resulted in an ownership change of greater than 2% (to below 10%) and, therefore, the filing of an update to the early warning report.

The Shares are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Aben Resources is located at 1610 – 777 Dunsmuir Street, PO Box 10427, Vancouver, BC V7Y 1K4. A copy of the early warning report with respect to the foregoing will appear on the company's profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94062

Vancouver, British Columbia–(Newsfile Corp. – August 20, 2021) – Investmentpitch Media video features Globex Mining Enterprises (TSX: GMX) (OTCQX: GLBXF) ( FSE: G1MN), an exploration and holding company with a large portfolio of assets. With an extensive portfolio of more than 200 exploration property assets and royalties covering precious, base and specialty metals, Globex gives investors diversification by investing in just one company.

For more information, please view the InvestmentPitch Media "video" which provides additional information about this news and the company. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Globex" in the search box.

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Projects range from advanced exploration to pre-feasibility, with royalties attached to more than 50 early to advanced stage properties for gold, base metals and industrial minerals. The advanced stage projects include more than 40 former mines with more than 50 properties having historic or NI 43-101 resources.

By having a diversified portfolio covering various commodities, Globex can capitalize on current interest in the market for a specific commodity, and given the company's transaction activity, investors can be assured of a steady flow of news.

The company's experienced management, and professional board, has an impressive track record of conserving capital and limiting dilution by finding partners to fund the high-risk, more expensive exploration and development of projects, while building shareholder value through the receipt of short-term payments and long-term royalties.

The shares are currently trading at $1.15, and based on approximately 55.3 million shares outstanding, the company is capitalized at approximately $63.6 million. The company's portfolio of more than $30 million in cash and shares of other companies alone is valued at approximately $0.54 per share, with no debt.

Furthermore, Globex has a normal course issuer bid in place to repurchase up to 1 million shares.

Except for one significant silver project in Germany, which is under option to Excellon Resources, the company is focused on North America, a region with low political risk.

Let's look at a couple of the company's significant recent activities. The company just closed the sale of its Mid-Tennessee Zinc Mine royalty to an assignee of Electric Royalties for $13,750,000, 8,752,860 shares of Electric Royalties, and 5,348,970 warrants of Electric Royalties, making Globex the largest shareholder of Electric Royalties.

In June, Globex sold some projects in Quebec to Yamana Gold, for $15 million, retaining a 2% gross metal royalty. Globex received an initial payment of $4 million which Globex elected to take in shares, with the balance of $11 million, which Globex may also elect to receive in shares, to be received over 4 years.

For more information, please visit the company's website www.GlobexMining.com, contact Jack Stoch, P.Geo., President and CEO, at 819-979-5242 or email info@GlobexMining.com.

About InvestmentPitch Media

InvestmentPitch Media leverages the power of video, which together with its extensive distribution, positions a company's story ahead of the 1,000's of companies seeking awareness and funding from the financial community. The company specializes in producing short videos based on significant news releases, research reports and other content of interest to investors.

CONTACT:
InvestmentPitch Media
Barry Morgan, CFO
bmorgan@investmentpitch.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/93843

(Bloomberg) — Women still face a threat to their safety at remote mine sites across the globe.

It’s a challenge the industry is grappling with after BHP Group, the world’s biggest miner, lifted the lid on a male-dominated culture in which sexual harassment is rife.

The company has fired 48 workers at its sites in Western Australia since July 2019 after verifying allegations of harassment, BHP said in a submission to a state inquiry. The Melbourne-based company said it had also received two substantiated allegations of rape, with further cases still under investigation. Rio Tinto Group, in its submission, said it had received 29 confirmed reports of harassment at its Pilbara iron ore operations since Jan. 2020 and one case of sexual assault.

While harassment is a problem in workplaces around the world, isolated mines can be especially risky for women. They remain largely male-dominated, with fly-in, fly-out (FIFO) workers living in camp-style accommodation that blurs the line between work and social life. Add excessive alcohol consumption into the mix, and inappropriate behavior often follows.

“Mining was made by and for men,” Fiona Vines, BHP’s head of diversity and inclusion, said in a phone interview earlier this month. “Now we’re introducing women into that setting and we have to fundamentally change it to make it safe in the first instance, and then comfortable and appealing.”

Western Australia’s parliament in July announced an inquiry into sexual harassment in the FIFO mining industry following a spate of allegations. Miners including BHP and Rio say the increase in reports shows their efforts to make women more confident about speaking out is paying off. Still, other submissions to the inquiry suggest the problem is an endemic one.

Nearly 23% of women in the industry have experienced physical acts of sexual assault, according to a survey by union body Western Mineworkers Alliance. Just four in 10 women FIFO workers said staff are encouraged to report sexual harassment and half said workers are not supported through the reporting process, WMWA noted in its submission to the inquiry.

To be sure, toxic male attitudes are not just a problem in Australia. In Chile, where BHP has major copper operations, the company has had to work hard to overcome traditional perceptions of women’s role in society, Vines said. Hiring more women in the South American country was a challenge in itself, although gains were being made including the first female general manager of a mine.

BHP is taking a wide range of steps to combat harassment at its global operations, including tighter security, limits on alcohol consumption, and education programs for its workers. Vines stressed the importance of changing the attitudes that underpin bad behavior, in part by improving the diversity of its workforce. The company has increased the percentage of women employees to nearly 30%, from 17.6% in 2016, and is targeting gender parity by 2025.

“Male-dominated environments are not normal, they’re not natural, they’re not healthy,” said Vines. “Let’s get to gender balance, because when you’ve got 50% women and 50% men this stuff just doesn’t happen as much.”

(Adds detail from Rio Tinto in paragraph three, Chile in paragraph eight)

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(Bloomberg) — The race to supply automakers with nickel to power their batteries is pitting two of the biggest names in mining against each other.

A company owned by Australian iron ore billionaire Andrew Forrest signaled its refusal to back down after a proposal to buy Canadian nickel developer Noront Resources Ltd. was trumped by the world’s biggest miner, BHP Group. And Forrest has been busy back home too: Australian nickel producer Western Areas Ltd. — which announced this week it’s in takeover talks with a local rival — revealed Friday the tycoon has become a substantial shareholder.

Nickel, traditionally used to make stainless steel, is taking center stage in the mining industry’s push into the booming battery metal space. A key component in lithium-ion batteries, it’s a favorite talking point of Elon Musk, who appealed to producers last year to “please mine more nickel.” The metal packs more energy into batteries and allows producers to reduce use of cobalt, which is more expensive and has a less transparent supply chain.

The fight over nickel mines comes at a pivotal time for the industry. Plans by China’s Tsingshan Holding Group to make battery-grade metal from materials previously reserved only for stainless steel have sparked fears of a market flood. Yet some analysts and investors have questioned whether the process will be accepted by increasingly eco-conscious automakers.

For BHP, the focus on nickel represents a sharp turnaround from less than a decade ago. The company had planned to exit the nickel business to focus on other commodities, and put its Nickel West unit in Australia up for sale in 2014. Today, BHP has identified the metal as one of its priority “future facing” commodities as the company shifts away from fossil fuels.

Last month, it announced that it’s signed a nickel-supply deal with Tesla Inc. to sell metal from Nickel West. And a week later, it announced a $260 million offer to gain control of Noront’s rich nickel and copper deposit, with the backing of the smaller company’s board.

Forrest’s Wyloo Metals Pty Ltd., which has amassed a stake of about 25% of Noront and holds a convertible loan, said Thursday it will refuse to sell its shares to BHP, setting the businessman up as a future — and potentially difficult — partner. He also suggested he could return with an increased competing offer if Noront were prepared to open its books for due diligence. (Noront retorted Friday it’s already offered to do so if Wyloo signs a confidentiality pact.)

It’s not clear what Forrest’s plans are for the Western Areas investment. But he’s got a track record of getting under the feet of established players — he made his fortune taking on BHP in Western Australia, when his Fortescue Metal Group burst on to the scene during the height of the last commodity super cycle. Since then, he’s created an iron ore giant to challenge the traditional Australian duopoly of BHP and Rio Tinto Group.

Forrest has long signaled he’s interested in battery metals and has expressed ambitions to get into the business for at least half a decade. In fact, he got his start in mining in nickel, working at Anaconda Nickel where he was developing the Murrin Murrin mine in Australia before being ousted in 2001.

“While Fortescue Metals is an iron ore miner, the very name tells us that he always had bigger plans,” said Tom Price, head of commodities strategy at Liberum Capital.

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The board of Altius Minerals Corporation (TSE:ALS) has announced that it will be increasing its dividend on the 15th of September to CA$0.07. Even though the dividend went up, the yield is still quite low at only 1.3%.

View our latest analysis for Altius Minerals

Altius Minerals Might Find It Hard To Continue The Dividend

If it is predictable over a long period, even low dividend yields can be attractive. Altius Minerals is not generating a profit, but its free cash flows easily cover the dividend, leaving plenty for reinvestment in the business. We generally think that cash flow is more important than accounting measures of profit, so we are fairly comfortable with the dividend at this level.

Over the next year, EPS could expand by 41.2% if recent trends continue. It's nice to see things moving in the right direction, but this probably won't be enough for the company to turn a profit. The positive free cash flows give us some comfort, however, that the dividend could continue to be sustained.

Altius Minerals Is Still Building Its Track Record

The dividend's track record has been pretty solid, but with only 6 years of history we want to see a few more years of history before making any solid conclusions. Since 2015, the first annual payment was CA$0.08, compared to the most recent full-year payment of CA$0.28. This means that it has been growing its distributions at 23% per annum over that time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.

The Company Could Face Some Challenges Growing The Dividend

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see Altius Minerals has been growing its earnings per share at 41% a year over the past five years. Even though the company is not profitable, it is growing at a solid clip. If the company can turn a profit relatively soon, we can see this becoming a reliable income stock.

Our Thoughts On Altius Minerals' Dividend

Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. We would probably look elsewhere for an income investment.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Just as an example, we've come across 2 warning signs for Altius Minerals you should be aware of, and 1 of them is significant. Looking for more high-yielding dividend ideas? Try our curated list of strong dividend payers.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

(Bloomberg) — A small Canadian nickel miner reiterated support for takeover by BHP Group after its largest shareholder, Australian mining magnate Andrew Forrest, tried snubbing the deal.

Noront Resources Ltd. said Friday in a statement that its board continues to recommend that shareholders accept BHP’s cash offer that values the company at C$325 million ($254 million), a day after Forrest’s Wyloo Metals Pty Ltd. said it wouldn’t sell its shares to the world’s largest miner. Wyloo Metals, which owns about 25% of Noront and holds a convertible loan that could lift its control to 37%, said it would consider making a superior offer.

The wrangle over the Toronto-based minerals explorer highlights a race among mining heavyweights to control supplies of raw materials that are key to a clean energy future. Noront has been developing one of Canada’s largest potential mineral reserves, in a largely untapped northern Ontario region dubbed the Ring of Fire. The high-grade nickel deposit also has chromite, copper and zinc. Nickel is one of the key metals used in batteries for electric vehicles.

Noront, whose main asset is the Eagle’s Nest nickel-and-copper deposit in the Ontario region, said success of BHP’s offer doesn’t require Wyloo’s support, according to the statement. Noront shares fell 4.8% to 50 Canadian cents at 10:56 a.m. trading in Toronto, below BHP’s 55-cent-a-share offer made July 27.

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(Adds details on Rio Tinto, Fortescue, union submissions)

MELBOURNE, Aug 20 (Reuters) – Sexual harassment is rife at mining camps in Western Australia, with firms across the industry reporting multiple complaints that have led to 48 staff being fired by the world's biggest, BHP, since 2019, submissions to a government inquiry showed.

The inquiry was initiated after high-profile cases of sexual assault by miners in the mineral-rich state emerged this year, and as the sector struggles with a dire skills shortage and a low proportion of female staff.

Submissions to the investigation were made public this week, including a survey by The Western Mine Workers' Alliance, a union representing hundreds of workers in Pilbara, a region rich in the iron ore that is Australia's most valuable export.

The survey of 425 workers showed two-thirds of female respondents had experienced verbal sexual harassment while working in the FIFO mining industry, and 36% of women and 10% of men some form of harassment in the last 12 months.

"We have heard detailed reports from members about supervisors and managers pressuring female workers into sexual activity in order to access training and job opportunities and there is a widespread perception that such activity takes place," said the union, which is calling for an independent body to investigate complaints.

"I have seen a man watch porn on bus and plane. I have found a porn magazine in a truck. I have had underwear stolen. I have had a male try get into my room… I reported harassment on numerous occasions and nothing was done," the union quoted an unnamed woman who works at Rio Tinto as saying.

A Rio spokesperson pointed Reuters to its submissions for examples of steps it is taking as part of an industry-wide response that includes improving safety and reporting procedures and mining camp infrastructure and tightening policies around alcohol.

In more detailed accounts to the panel, which will make recommendations to West Australia's parliament in April 2022, BHP said it had fired 48 workers in two years for incidents related to sexual harassment.

It said it received four rape allegations, one of attempted rape, other reports of unwanted sexual touching, and 73 substantiated reports of sexual harassment from June 2019 to June 2021.

It said it was spending $300 million to increase camp security, improving workforce training, vetting practices and making reporting of incidents easier.

Rio said that since January 2020 it had received one reported case of sexual assault and 29 of sexual harassment that were substantiated, and another report of sexual assault and 14 of sexual harassment that could not be.

Fortescue, Woodside Petroleum and Chevron Corp, also made submissions.

Fortescue said it had 20 harassment matters reported this year, added to 11 last year, across a total workforce of more than 15,000.

(Reporting by Melanie Burton. Editing by Gerry Doyle and John Stonestreet)

MELBOURNE, Aug 20 (Reuters) – BHP Group fired 48 staff in the two years to the end of June for sexual harassment, it told a Western Australian government inquiry investigating such incidents at mining camps in the mineral-rich state.

The government probe comes as the sector struggles with a dire skills shortage and low female representation.

BHP received four rape allegations, one allegation of attempted rape and other reports of unwanted sexual touching, in addition to 73 substantiated reports of sexual harassment from June 2019 to June 2021, it said in a submission.

Two rape allegations were substantiated, investigation for one was continuing and one was not substantiated, it said in the report, which outlined sweeping measures to reduce such incidents.

That includes $300 million to increase camp security by improving its training and workforce vetting practices, making reporting of incidents easier, and ensuring its contractors abide by those rules.

Other major miners including Rio Tinto Fortescue , unions and interest groups have also made submissions to the enquiry, which will make recommendations to West Australia's parliament in April 2022. (Reporting by Melanie Burton. Editing by Gerry Doyle)

By Carolina Mandl and Marta Nogueira

SAO PAULO/RIO DE JANEIRO (Reuters) – Brazilian prosecutors asked a bankruptcy court on Wednesday to compel miners Vale SA and BHP Group Ltd to fully pay off their Samarco joint venture's 50.7 billion reais ($9.47 billion) debt, according to a court document reviewed by Reuters.

Samarco filed for bankruptcy protection in April as it struggled to restructure its debt, which it stopped servicing after a dam burst at a mine in 2015, killing 19 people, releasing a giant torrent of sludge and halting production.

Prosecutors consider Samarco's co-owners to be responsible for the disaster and are seeking a restraining order that would oblige them to cover its debt, according to the document.

The prosecutors said both controlling shareholders used Samarco to obtain immediate gains amid an iron-ore price boom, which they say precipitated the dam's collapse.

"They chose to put at risk the lives of people who lived and worked there, as well as the environment, causing tragic consequences and incalculable damages," they wrote.

Vale said in a securities filing it was surprised by the prosecutors' request.

"The request attacks the clear letter of the agreements signed between the parties, to which the MPMG (prosecutors from Minas Gerais state) is a signatory, in addition to threatening the ongoing discussions and efforts to renegotiate the reparation measures for damage resulting from the Fundão dam collapse," the company said.

BHP said in a statement the bankruptcy protection request was the best solution it found to allow Samarco to recover financially.

($1 = 5.3543 reais)

(Reporting by Carolina Mandl in Sao Paulo and Marta Nogueira in Rio de Janeiro; Editing by Christian Plumb and Peter Cooney)

MELBOURNE, Australia, August 19, 2021–(BUSINESS WIRE)–Rio Tinto is partnering with the Western Australian Government to launch a COVID-19 vaccination blitz targeting communities in the Pilbara and the fly-in fly-out workforce.

Following positive discussions between Rio Tinto and the WA Department of Health, vaccination hubs will be established in the Pilbara and at a trial clinic at Perth Airport to make vaccinations more accessible.

Starting with Tom Price, planning is underway for hubs at several locations in the Pilbara, with vaccines available to members of the local community, Indigenous communities, Rio Tinto employees, contractors and their families.

Rio Tinto is working with the Department of Health and the Shire of Ashburton and is close to finalising a location for the proposed Tom Price hub. The facility could potentially offer vaccines to the entire adult population of Tom Price and surrounding communities.

Rio Tinto’s COVID-19 screening facilities at Perth Airport (T2 and T3) will also be modified to include ‘pop-up’ vaccination hubs to target workers returning to Perth. The hubs will initially be available to Rio Tinto’s FIFO workforce, who regularly travel to and from the Pilbara, with the option to expand the vaccination service to the wider FIFO community.

The initial vaccination blitz is expected to commence in September, subject to availability of vaccines. Rio Tinto will work with the WA Government to finalise details in the coming weeks.

Rio Tinto Iron Ore chief executive Simon Trott said the company stood ready to support the WA Government’s vaccination rollout in any way it can.

"We are pleased to work in partnership with the WA Government on this industry-first vaccination blitz, which we expect will help boost vaccination rates in the Pilbara.

"This is an important development in our state’s effort to combat COVID-19. We know vaccinations are our best way out of this pandemic and we are very happy to convert our existing screening facilities, which have helped keep COVID-19 out of our operations and vulnerable communities for almost 18 months, to include vaccination hubs.

"Given Rio Tinto’s large operational footprint in the Pilbara, we are well positioned to support the WA Government’s vaccination rollout in the region, ensuring the vaccine is more accessible to remote and vulnerable communities.

"Plans are being developed to establish additional hubs in places like Paraburdoo, Pannawonica and Dampier, following the Tom Price vaccine blitz.

"While the initial vaccine blitz at Perth Airport will target Rio Tinto’s FIFO workforce, we will work with the WA Government to make our facilities available to others in the industry and community.

"Throughout the COVID-19 pandemic, the resources sector has worked hard to continue to operate in a COVID-safe way. The next step in is to play our part in making the vaccine accessible to as many Western Australians as possible."

View source version on businesswire.com: https://www.businesswire.com/news/home/20210818005863/en/

Contacts

Please direct all enquiries to
Media.enquiries@riotinto.com

Media Relations, Australia
Jonathan Rose
M +61 447 028 913

Matt Chambers
M +61 433 525 739

Jesse Riseborough
M +61 436 653 412

Jamie Macdonald
M +61 467 725 517

Rio Tinto plc
6 St James’s Square
London SW1Y 4AD
United Kingdom

T +44 20 7781 2000
Registered in England
No. 719885

Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia

T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

riotinto.com

Category: General

ST. JOHN’S, Newfoundland and Labrador, August 19, 2021–(BUSINESS WIRE)–Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) ("Altius" or the "Corporation") is pleased to announce that it has renewed its Normal Course Issuer Bid ("NCIB") and may purchase at market price up to 1,642,612 common shares ("Shares"), being approximately 3.96% of the 41,504,497 common shares issued and outstanding as of August 18, 2021, by way of an NCIB through the facilities of the Toronto Stock Exchange ("TSX") or a Canadian alternative trading system. The NCIB is subject to regulatory approval. The NCIB will commence August 22, 2021 and will end no later than August 21, 2022. Any Shares purchased pursuant to the NCIB will be cancelled and returned to treasury.

The TSX rules permit Altius to purchase daily, through TSX facilities or approved alternative trading systems, a maximum of 30,870 Shares under the NCIB. From August 22, 2020 to August 21, 2021 Altius purchased a total of 477,400 Shares through market purchases on the TSX and alternative trading systems at a weighted average price of $15.55 per Share, while its approval allowed for it to purchase a maximum number of 1,622,920 Shares. The reason for the NCIB is that, in the opinion of the board of directors, the value of Altius Shares, based on anticipated cash flows and underlying asset values, is from time to time greater than the market price of the Shares and accordingly the acquisition of Shares under the NCIB represents an appropriate use of funds. Altius has had an active NCIB program every year since 2010.

About Altius

Altius’s strategy is to create per share growth through a diversified portfolio of royalty assets that relate to long life, high margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These macro-trends each hold the potential to cause increased demand for many of Altius’s commodity exposures including copper, renewable based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore, and potash. In addition, Altius runs a successful Project Generation business that originates mineral projects for sale to developers in exchange for equity positions and royalties. Altius has 41,504,497 common shares issued and outstanding that are listed on Canada’s Toronto Stock Exchange. It is a member of both the S&P/TSX Small Cap and S&P/TSX Global Mining Indices.

Forward-looking information

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Altius provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Altius believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. Altius does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210819005068/en/

Contacts

Flora Wood
Email: Fwood@altiusminerals.com
Tel: 1.877.576.2209
Direct: +1(416)346.9020

Ben Lewis
Email: Blewis@altiusminerals.com
Tel: 1.877.576.2209

(Bloomberg) — Iron ore extended its rout as BHP Group warned it sees an increasing likelihood of “stern cuts” to China’s steel output this year.

The prospect of much lower steel production in the second-half is “testing the bullish resolve of the futures markets,” BHP wrote in a commodities outlook report on its website. Iron ore in Singapore has plunged by a third since spiking to an all-time high in May.

China’s steel industry is under pressure after pledging to reduce output this year, a goal that requires huge second-half curbs to offset booming output earlier in 2021. Production in July was more than 8% lower year-on-year, data on Monday showed.

Futures in Singapore fell 6.5% to $147.95 a ton by 6:49 p.m. local time, and were heading for a fifth weekly loss. In China, futures dropped 2.5% to close at the lowest level since November.

While investor attention is very focused on China’s output curbs in the second half, the nation’s demand trends will also be critical. Beijing is pushing a range of measures to control the property sector, which accounts for big chunk of steel usage and has traditionally helped drive surges in iron ore prices.

“Policymakers are clearly concerned about over-investment and concentrated credit risk in the property sector,” Commonwealth Bank of Australia wrote in an emailed note. And even if China swings to more pro-growth policies to battle recent weakness, “there’s a good chance that the property sector is left out”.

Shanghai steel futures also dropped, with hot-rolled coil down 3.3% and rebar down 3.8%.

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BHP Group BHP reported underlying attributable profit of $17.1 billion in the fiscal 2021 (ended Jun 30, 2021), which was up 88% year over year, reflecting higher commodity prices and strong operational performance. Earnings per American Depositary Share (ADS) was $6.75 in fiscal 2021, up from $3.58 in fiscal 2020 but missed the Zacks Consensus Estimate of $6.93. Underlying earnings per share was $3.38, compared with $1.79 in fiscal 2020. The company’s each American Depositary Shares represents two fully-paid ordinary shares. It also made a flurry of announcements — to exit its oil and gas operations as it strikes a merger deal with Woodside Petroleum Ltd, approval of $5.7 billion in capital expenditure in Jansen Potash Mine in Canada and its decision to unify its dual-listed structure.

The company’s attributable profit amounted to $11.3 billion in fiscal 2021, including an exceptional loss of $5.8 billion. The exceptional loss was related to the impairments of potash and energy coal assets as well as the current year impact of the Samarco dam failure. Attributable profit in fiscal 2020 was $7.9 billion, which included an exceptional loss of $1.1 billion.

Revenues & Margin Performance

Revenues for fiscal 2021 totaled $60.8 billion, which beat the Zacks Consensus Estimate of $60.2 billion. It marked an improvement of 42%from revenues of $42.9 billion in the prior fiscal. The Iron ore segment’s revenues surged 66% year over year to $34 billion on higher prices and record production achieved at WAIO. Revenues in the Copper segment rose 47% to $15.7 billion, reflecting higher prices. Revenues in the Petroleum fell 3% year over year to $3.9 billion. The Coal segment’s revenues slumped 17% to $5 billion.

Adjusted profit from operations in fiscal 2021 soared 91% year over year to $30.3 billion owing to higher commodity prices and strong underlying operational performance, lower deferred stripping depletion at Escondida, lessened fuel and energy costs, and savings from the company’s cost reduction initiatives. Unfavorable impacts of exchange rate movements, copper grade decline, natural field decline in Petroleum, inflation, adverse weather and planned maintenance somewhat mitigated these impacts. Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) were $37.4 billion for fiscal 2021, up 69% year over year.

Balance Sheet & Cash Flow

Net operating cash flow for fiscal 2021 was $27.2 billion compared with $15.7 billion in fiscal 2020. This marked 15th consecutive year of generating net operating cash flow above the $15 billion mark. The company reported record free cash flow of $19.4 billion, courtesy of higher iron ore and copper prices, and a strong operational performance.

Cash and cash equivalents as of Jun 30, 2021 amounted to $15.2 billion, up from $13.4 billion at the end of fiscal 2020. Capital and exploration expenditure totaled $7.1 billion, down 7% from the prior fiscal. The company provided capital and exploration guidance at $7.1 billion for fiscal 2022. As of the end of fiscal 2021, net debt was $4 billion, substantially lower than $12 billion reported as of fiscal 2020. Backed by strong fiscal 2021 results, BHP Group’s board announced a record final dividend of $2.00 per share.

Other Updates

In fiscal 2021, the company successfully achieved first production at four major development projects — on or ahead of schedule and on budget. It acquired an additional 28% working interest in Shenzi in November 2020. The Shenzi North development, a two-well subsea tie-in to the Shenzi platform, was approved in August 2021. At the end of fiscal 2021, BHP Group had two major projects under development — Mad Dog Phase 2 in petroleum and Jansen mine shafts in potash.

Significant Announcements

BHP Group approved $5.7 billion in capital expenditure for the Jansen Stage 1 potash project. First ore is expected in 2027. Once operational, Jansen S1 is expected to produce approximately 4.35 million ton of potash per year. This will provide the company exposure to a commodity with a strong demand outlook and immense growth potential.

The company has agreed to pursue a merger of its Petroleum business with Woodside Petroleum Ltd, which will create a global top 10 independent energy company by production. The combined business will have a high margin oil portfolio and long life LNG assets. Woodside would issue new shares to be distributed to BHP Group’s shareholders. Woodside shareholders will own 52% of the merged group, while BHP Group’s shareholders owning the remaining 48%. Woodside and BHP Group have estimated annual synergies in excess of $400 million per year. The Petroleum segment generated 6% of BHP Group’s fiscal 2021 revenues.

BHP Group intends to unify its corporate structure under its existing Australian parent company to realize simplification and enhanced strategic flexibility benefits.

Fiscal 2022 Production & Cost Guidance

In fiscal 2022, the company expects to produce between 249 Mt and 259 Mt of iron ore compared with 254 Mt produced in fiscal 2021 as WAIO continues to focus on incremental volume growth through productivity improvements. The petroleum production guidance is 99-106 MMboe. BHP Group anticipates copper production between 1,590 kt and 1,760 kt. Production guidance of Metallurgical coal for fiscal 2022 is at 39-44 Mt, while the same for energy coal is at 13-15 Mt. Nickel production is expected between 85 kt and 95 kt.

Conventional Petroleum unit cost is projected at $11-$12 per barrels of oil equivalent (boe) for fiscal 2022. Escondida unit cost is anticipated at $1.20-$1.40 per pound. Queensland Coal unit cost for the fiscal is expected at $80-$90 per ton. WAIO unit cost guidance is projected to be $17.50-$18.50 per ton.

The company expects demand for energy, metals and fertilizers to remain strong in the years to come, fueled by global economic growth, population growth and rising living standards. The near-term outlook, however, remains cloudy due to the uncertainties associated with the COVID-19 pandemic.

Price Performance

Image Source: Zacks Investment Research

BHP Group’s shares have gained 22.7% over the past year compared with the industry’s growth of 21%.

Zacks Rank & Other Key Picks

BHP Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the basic materials space include Avient Corporation AVNT, Veritiv Corporation VRTV and Commercial Metals Company CMC. While Avient and Veritiv flaunt a Zacks Rank #1, Commercial Metals carries a Zacks Rank #2.

Avient has a projected earnings growth rate of 75% for 2021. The company’s shares have soared 92% in the past year.

Veritiv has an estimated earnings growth rate of 215% for the current year. Over the past year, the company’s shares have soared 340%.

Commercial Metals has an expected earnings growth rate of 32.8% for the current fiscal year. The company’s shares have gained 54% in a year’s time.

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Zacks Investment Research

By Sonali Paul and Melanie Burton

MELBOURNE (Reuters) -Shares in BHP Group and Woodside Petroleum fell on Wednesday as investors on both sides raised questions about the value of the Perth-based oil and gas group's proposed $29 billion merger with BHP's petroleum arm.

While a 6% fall in BHP's share price was linked to a decision to end its UK dual listing, where its shares have traditionally traded at a large discount, a fall of up to 4% in Woodside reflected concerns about the expansion, they said.

"Woodside is one of the worst-performing companies within the energy sector globally post-COVID; the company doesn't yet have a strong mandate to enter a deal of such questionable value and this could further drag on Woodside's shares," said Jamie Hannah, deputy head of investments at Van Eck Australia, a shareholder in both companies.

BHP agreed to hive off its petroleum business to Woodside in a nil-premium merger, in return for new Woodside shares which will go to BHP shareholders, who will own 48% of the enlarged group.

The deal will make Woodside a top 10 global independent oil and gas producer, giving it oil assets in the Gulf of Mexico, gas in Trinidad and Tobago and ageing assets in Australia's Bass Strait, while doubling its stake in North West Shelf LNG.

However, it raised concerns about the strategic sense of expanding in oil and taking on ageing gas assets with big decommissioning costs.

Investors said the fall in Woodside shares was also partly due to worries about an overhang of stock as BHP investors who want to get out of fossil fuels would look to dump the shares.

The stock was down 1.2% in afternoon trade, underperforming a 1% rise in local rivals Santos and Oil Search.

Woodside's new chief executive, Meg O'Neill, said while investors were very familiar with BHP's Australian oil and gas assets, they did not appreciate the value of its Gulf of Mexico oil stakes – Mad Dog, Atlantis and Shenzi.

​ "Those are just first-class top-tier assets that will be very cash accretive to the merged company," O'Neill told Reuters.

Analysts and two BHP investors said Woodside got the BHP assets relatively cheaply.

"I'd much rather have just hung on to them and harvested the capital because demonstrably the returns from the growth parts of those projects are much higher than Jansen," said a Sydney-based fund manager, referring to the $5.7 billion Jansen potash project BHP approved on Tuesday.

Tribeca Investment Partners CEO Ben Cleary, a BHP shareholder, said what BHP lost with the discount on its petroleum assets would be offset by a higher valuation multiple for no longer holding oil and gas.

"Long term the deal makes sense. I think BHP looks more attractive for a wider audience," said Matt Haupt, portfolio manager at Wilson Asset Management, a BHP shareholder.

Analysts were upbeat about the long term for Woodside, saying the deal would give it more growth options, beyond its $12 billion Scarborough gas project and Pluto LNG expansion, funded by strong cash generation at BHP's debt-free assets.

"It's a logical deal between the parties," said Argo Investments portfolio manager Andy Forster. "I do think ultimately shareholders will vote for it."

Woodside aims to put the deal to a vote in the second quarter of 2022.

Credit Suisse analyst Saul Kavonic said Woodside shareholders may be painted into a corner, noting that, as part of the deal, Woodside gave BHP an option to hand over its stake in the Scarborough project for $1 billion if Woodside makes a final investment decision on the project by Dec. 15.

Woodside would then be the sole owner of Scarborough and have to fund the project by itself, which it cannot afford.

"Shareholders may have little choice but to vote the merger through because otherwise it would pose a serious balance sheet overhang," Kavonic said.

($1 = 1.3770 Australian dollars)

(Reporting by Sonali Paul; editing by Richard Pullin)

(Bloomberg) — The U.K.’s blue-chip FTSE 100 Index will lose its second-biggest stock by market value and the world’s largest mining company, after BHP Group announced plans to simplify its listing structure.

BHP will move to a primary listing in Australia after collapsing a dual arrangement that dates back to the company’s creation 20 years ago when Australia’s BHP Ltd. merged with rival Billiton. The change, one of several announced Tuesday that also included a plan to exit the oil and gas business, means BHP can be more nimble in pursuing deals, Chief Executive Officer Mike Henry told reporters.

However, the deletion from the FTSE 100 will also prompt asset managers and exchange-traded funds which track the benchmark to sell their holdings in BHP. And the loss will be a blow to the index — the London Stock Exchange is seeking to attract new listings as the U.K. maps its future outside the European Union. It still includes several of the world’s other huge mining companies though, including No. 2 Rio Tinto Group, another dual-listed stock.

“Clearly it’s a big blow losing such a heavyweight,” Neil Wilson, chief market analyst at Markets.com, said in an email. “But it will help balance the FTSE 100 a bit more with less leaning on basic resources. Bit less mining, bit more room for up-and-coming tech is surely not a terrible thing,” he said, adding that ultimately BHP is an Australian company at heart and should be listed there.

While BHP is the second-largest company in the FTSE 100, behind AstraZeneca Plc, it only ranks 10th by weighting because of the dual listing, representing 2.6% of the index. The proposal — which is subject to approvals including by the company’s board — would leave BHP with secondary listings in London, Johannesburg and New York. Shareholders of the London-listed vehicle will get shares of the Sydney-listed entity on a one-for-one basis.

The miner has been reviewing its listing structure for years after Elliott Management Corp. pushed BHP to reorganize as a single company. Elliott — which also advocated for the company to get out of oil and gas — argued that removing the dual listing would eliminate a discount between its shares in London and Sydney, reduce costs and bolster transparency.

“Could there be some shareholders who are forced sellers? Yes, clearly,” BHP’s Henry said in a Bloomberg TV interview. “We continue to see shareholders in the Plc as very important and I want to see as many of those as possible continue to hold BHP.”

Under the current arrangement, BHP has two headquarters and two main stock market listings, but is run as a single entity under the same management and board. The company announced the change to its structure as part of its annual earnings results Tuesday, confirming an earlier Bloomberg News report.

(Updates with CEO comments in penultimate paragraph.)

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