China to maintain coal price cap in 2023 to avert energy crunch 

China has extended the price limit on thermal coal in 2023 as the country looks to expand the use of the fuel to help stabilise prices and ensure market supply, reported Bloomberg News. 

The expanded long-term thermal coal supply contracts for 2023 cover all coal mining companies, coal-fired power and heating plants, reported the Economic Times via Reuters. 

The latter cited a document issued by the country’s top economic planning body the National Development and Reform Commission (NDRC). With the expanded coverage, the country intends to reduce coal supply in the spot market while ensuring supply to power utilities. 

This move is expected to avoid a coal shortage in the country that resulted in unprecedented power outages last year. The government asked power utilities to source additional feedstock through those long-term contracts. 

For the 2023 term contract, the state planner will maintain the coal benchmark price of $92.8 per tonne for coal with an energy content of 5,500 kilocalories. 

The NDRC document, which was also confirmed by two market participants, is requiring all participants to finalise the 2023 contracts before 25 November 2022. Additionally, the NDRC requires coal mines to sell at least 80% of their overall production capacity and 75% of their thermal coal production capacity under long-term contracts. 

Cannon Resources board accepts takeover bid from Kinterra 

Australian firm Cannon Resources has received an off-market takeover offer worth $29m (A$45m) from a unit of the Kinterra Battery Metals Mining Fund, a critical minerals-focused private equity fund. 

In this regard, Cannon signed a bid implementation agreement with Kedalion Nickel, a fully owned arm of the Kinterra Battery fund. Kinterra Battery’s offer includes the acquisition of all the remaining shares of Cannon Resources for $0.29 (A$0.45) apiece in cash. 

This proposal marks a 43% premium to Cannon Resources’ last closing price of 31.5c per share and a 58% premium to its 30-day volume-weighted average price. Cannon Resources’ board has confirmed its intention to accept the proposal and also recommended its shareholders accept it in the absence of a superior offer. 

Currently, Kinterra has a 19.99% stake in Cannon Resources, having reached pre-bid acceptance agreements with some of the latter’s shareholders, including its largest shareholder Ponderosa Investments, based on several conditions. 

Cannon Resources chairman Alex Passmore said: “Kinterra’s offer creates an excellent opportunity for Cannon shareholders to realise value for their investment whilst moving the asset to Kinterra who can take Fisher East to the next stages of development.” 

Freeport in early discussions to extend copper mine rights in Indonesia 

US-based mining company Freeport-McMoRan is in preliminary talks with the Indonesian Government to extend its rights to the Grasberg copper mine past 2041, reported Mining.com via Reuters, citing the company CEO. 

The move comes as the publicly-traded mining company looks to continue as a dominant global producer of copper, a key mineral in the clean energy transition. 

Located in the province of Papua, Grasberg is claimed to hold one of the world’s largest copper and gold deposits. 

In 2018, Indonesian state-owned enterprise PT Indonesia Asahan Aluminium purchased a 51.2% stake in Freeport McMoRan’s subsidiary PT Freeport Indonesia. Freeport owns the remaining 48.8% interest. 

In the same year, Freeport also signed an agreement with the Indonesian Government whereby the firm was granted a special mining permit to continue ore extraction until 2041. 

Freeport is currently constructing a copper smelter in Indonesia and is expanding the Grasberg mine as part of its $14bn investment plan announced in 2018. 

During the LME Week conference in London, UK, Freeport-McMoRan CEO Richard Adkerson was quoted by Reuters as saying: “We are working with the Indonesian Government about potentially extending our rights to operate Grasberg beyond 2041."

Albemarle concludes $200m deal to acquire China’s Guangxi Tianyuan 

Albemarle subsidiary Albemarle Lithium UK has closed the purchase of China-based Guangxi Tianyuan New Energy Materials in a $200m deal. 

Established in 2017, Tianyuan owns a lithium processing plant located near the Port of Qinzhou in Guangxi. With a conversion capacity of up to 25,000 tonnes per annum (mtpa) of lithium carbonate equivalent, the processing facility is capable of producing battery-grade lithium carbonate and lithium hydroxide. 

The acquisition forms part of Albemarle’s plan to expand its lithium production capabilities. Albemarle recently secured a grant of nearly $150m from the US Department of Energy to fund a part of the estimated cost to build a new lithium concentrator facility at Kings Mountain.

To be funded by the President’s Bipartisan Infrastructure Law, the grant forms part of the country’s efforts to boost domestic manufacturing of batteries.

Albemarle anticipates the concentrator facility to supply up to 350,000mtpa of spodumene concentrate to the company’s planned mega-flex lithium conversion facility, which will have the capacity to produce up to 100,000mtpa of battery-grade lithium. 

Albemarle CEO Kent Masters said: “The addition of Tianyuan’s operations to Albemarle’s high-quality lithium assets strengthens our ability to reliably meet the increasing global demand for battery-grade lithium.” 

Askari and China’s Zhejiang to develop Australian lithium assets 

Askari Metals has collaborated with China-based Zhejiang Kanglongda Special Protection Technology to develop the former’s lithium assets in Australia. 

The non-binding partnership agreement has been signed pertaining to the development of Askari’s Barrow Creek Lithium Project in the Northern Territory, as well as the Eastern Pilbara lithium assets, namely the Yarrie, Talga East and the Myrnas Hill projects. 

Zhejiang will assist Askari with techniques and opportunities in lithium chemical downstream processing. Furthermore, the Chinese firm will be given a preferred offtake position once commercial production begins at the two lithium projects of Askari Metals. 

Askari Metals executive director Gino D’Anna said Zhejiang Kanglongda will provide Askari Metals with access to key markets within China and access to capital for future development. 

Askari expects the alliance to support its aggressive exploration mandate and continue exposure to the lithium sector. Earlier this year, Zhejiang Kanglongda increased its stake in Chinese lithium chemicals producer Jiangxi Tiancheng Lithium Industry to 51%, by purchasing an additional 17.7% interest in the latter. 

D’Anna said: “Zhejiang Kanglongda will also be provided with a preferred offtake position at market prices. We believe that Zhejiang Kanglongda is a tier one partner for our company and we are very pleased to have the opportunity to work alongside them in the development of our Australian lithium assets. 

“In addition, the company is investigating commercialisation strategies for its copper and gold projects within Australia, including a spin-out, which will facilitate the company’s continued concentration on the battery metals sector, and specifically lithium.” 

Rio Tinto and Wright amend joint venture to develop Australian iron ore project 

Diversified miner Rio Tinto has agreed to amend a nearly 50-year-old joint venture agreement with Wright Prospecting to develop the Rhodes Ridge iron ore project in East Pilbara, Western Australia. 

The project has a total resource of 6.7 billion tonnes, making it one of the world’s largest and highest-quality undeveloped iron ore deposits. 

Rio Tinto and Wright Prospecting have now reached a binding joint venture agreement to update an existing agreement signed in 1972.

The amended agreement will see the development of the Rhodes Ridge deposits utilising Rio Tinto’s port, rail, and power infrastructure. 

This project is planned to start production by the end of 2030, with an initial plant capacity estimated at up to 40 million tonnes per annum. The project is estimated to contain 5.8 billion tonnes of high-grade Mineral Resources at an average grade of 62.3% iron. A resource drilling programme is being carried out to support future studies for the iron ore project. 

Rio Tinto iron ore CEO Simon Trott said: “With its significant resource base, the Rhodes Ridge project has the potential to underpin the production of the Pilbara Blend in the decades ahead. 

“We are committed to working closely with the traditional owners, the Nyiyaparli and Ngarlawangga People, to ensure sites of significant cultural, environmental, and biodiversity value are protected as part of any future development at Rhodes Ridge.”