Lead News: Bulgaria's Intertrust Seeks $150m

Lead News: Bulgaria's Intertrust Seeks $150m

Bulgarian lead and zinc producer Intertrust Holdings is seeking $150 million to upgrade its smelters and double output and sales.

The company’s Olovno Tzinkov Komplex AD smelter will be completed by 2013 and will help almost double annual sales to $220 million.

Bulgaria’s Environment Ministry approved a 40 million-euro ($51.7 million) upgrade of the lead smelter a week ago and the company now has to raise the funding said Chairman Valentin Zahariev.

Intertrust is also building an 80 million-euro galvanized steel plant near Sofia on the site of an old pipe factory, with planned output of 600,000 tons of galvanized steel a year.

“We need to raise a total of $150 million to complete our investment projects,” said Mr Zahariev. “We have applied for financing from U.S. funds for part of it. We will also consider other forms including an IPO, corporate bonds or bank loans. It all depends on the cost.”

Intertrust has already borrowed 85 million euros in loans from Swiss banks to upgrade its zinc smelter, he said. Asturiana de Zinc SA, a Spanish zinc producer, designed the project and supplied the equipment.

The modernised zinc smelter will increase output from 24,000 tons in 2009 to 45,000 tons, while the lead smelter will double output to 60,000 tons.

“The modernization of the two units will help cut pollution, reduce greenhouse emissions, improve the quality of all of our products, double output and cut costs,” said Mr Zahariev.

Apart from the Gorubso mines in Madan in southern Bulgaria, Intertrust also runs five metal, tool and engineering plants in Serbia. Eight-five percent of its output is exported, mostly to Italy, Germany, Austria and Turkey.

Vedanta Shows Increased Q4 Iron Output

Zinc Shows Slight Fall in Quarter

London-listed miner, Vedanta Resources, said on Thursday that fourth-quarter zinc production fell 2% to 194,000 tonnes; however full-year production was up 5% to 769,000 tonnes reflecting improved mining performance.

Refined zinc and lead production were in line with the previous quarter at 150,000 tonnes and 20,000 tonnes respectively, though full-year production was up 5% and 11% at 578,000 tonnes and 72,000 tonnes.

Iron ore production rose 59% over the previous quarter to 7.8 million tonnes, with annual production up by 36% to 20.5 million tonnes. The increases were largely due to new production facilities at Vedanta’s Dempo operations and increased throughput at Sesa Goa. The company is on target to increase its production capacity to 50 million tonnes per year by 2013.

Andover Ventures Announces Burgin Drilling Results

Utah Mine May Contain Ecnomically Sginificant Gold Deposits

Canadian miner, Andover Ventures has announced a new set of drilling results from its Burgin mine in Utah.

Andover is reporting grades of up to 365 g/t (grammes per tonne) of silver, 7.43% of lead, 2.39% of zinc and 2.55 g/t of gold from hole C0902 and 295 g/t of silver, 12.18% of lead, 4% of zinc and 1.481 g/t of gold from hole C0904.

“Our current interpretation suggests that the gold-rich horizon may be a consistent and economically significant, but previously unrecognized, zone within the deposit,” the company said in the statement.

Andover also announced a private placement of 1.2 million units with each consisting of a common share in the capital of the company at C$0.25 and one common share purchase warrant, entitling the owner to buy one additional share at C$0.35, exercisable over 24 months.

Hindustan Zinc Commissions Rajasthan Zinc Smelter

HZL Set To Become World's Largest Integrated Zinc-Lead Producer

Hindustan Zinc has commissioned the 210,000 tonne zinc smelter at its Rajasthan plant three months ahead of schedule. The smelter was due to be commissioned in the middle of this year.

“With the commencement of production, the total zinc and lead metal capacity of the company is now 9.64 lakh [964,000] tonne per year,” the company said in a statement.

The company is also to increase its lead production from 85,000 tonne to 185,000 tonnes a year, which will make HZL the world’s largest integrated zinc-lead producer, with total production at 1.06 million tonnes.

Sumitomo Metal Mining To Resume Production At Harima Smelter

Japan’s Sumitomo Metal Mining Co Ltd announced on Thursday that production at its Harima zinc and lead smelter will resume from May 6.

The company has been carrying out maintenance at the plant since 18 March, the company said.

The company also announced a number of other closures for some of its smelters and refineries.

The Niihama Nickel Refinery will be shut for four days in May and four days in November for regular maintenance.

The Hyuga ferronickel smelter will be closed for 21 days during May and June for repairs on one production line and for 25 days in November for repairs on a second production line. The renewal of a line of double furnaces, which has been ongoing since February 2010, is scheduled to finish at the end of August. Production will resume then.

Earlier this month, the company said it has no regular maintenance and repair work planned for 2010/11 at its Toyo Smelter & Refinery.

Jianxi Copper To Increase Lead and Zinc Production

Jianxi Copper In Talks To Buy Shandong Copper Smelter

China’s largest copper producer, Jiangxi Copper is to add 100,000 tonnes each of lead and zinc capacity next year, the company’s chairman said.

Speaking to reporters in Hong Kong, Mr Li Yihuang said that this was the first phase in a project that will take lead and zinc capacity to 400,000 tonnes.

However, Mr Li warned that demand growth for the company’s copper is expected to fall as the Chinese government reduces its stimulus spending on the country’s power industry. He also expects price to fall in the second half of this year as governments worldwide also cut back their stimulus spending.Yesterday, the company announceda fourth-quarter net income of 623 million yuan ($91 million), compared with a loss of 1.4 billion yuan a year ago.

Mr Li also announced that the company is still in talks with the local government of Shandong to buy the Yantai Penghui Copper Industry Co., a copper smelter.
Capital expenditure for this year will increase by 13 percent to 3.4 billion yuan this year, from 3 billion yuan in 2009. President assistant Tang Delong, said that the company aims to increase its copper mine output to 240,000 metric tons in 2011, up from 172,000 tons this year.

Jiangxi Copper has a requirement of 464,000 tons of copper ore a year, with its own production accounts for about 35 percent of its needs.

Maghreb Minerals Halves Losses

Maghreb Pursuing Fluorspar Opportunities

AIM-listed Maghreb Minerals has announced that it halved its losses during the six-months ended 31 December 2009. Maghreb made a consolidated loss of £366,000 for the period, compared to a £892,000 the previous year. At 31 December 2009, the company had cash at bank of £207,000.

The company and its funding partner Firebird continue to pursue opportunities in the fluorspar sector, while the base-metals assets in Tunisia remain under care and maintenance.

Maghreb said turmoil in the global financial markets during 2009 meant that it did not receive the necessary funding required to further develop its main projects. However, the company, along with its major shareholder Firebird, continues to pursue opportunities in the fluorspar sector while its base-metals assets in Tunisia remain under care and maintenance.

Maghreb’s assets include zinc, lead, barite and fluorspar exploration projects in Tunisia, the principal of which is the the Bou Jabeur – Gite Est deposit, which has an inferred resource of 4.76 Mt (million tonnes) grading at 5.67% combined Pb/Zn with 39.6% barite, 7.69% fluorite and 7.3 g/t silver.

Peru's Gold Output Up, Silver Down

Peru's Energy and Mines Ministry has reported that the country’s gold production for February was 522,373 ounces, compared to 495,337 ounces in February 2008 – rise of 5.5%.

The increase was attributed to higher output at the Minera Barrick Misquichilca mine, as well as at mines owned by Compañia Minera San Simon, Companña Minera Podersoa, Minera Suyamarca and Minera Laytaruma.

Peru also mined 9,596,228 ounces of silver last month, an 11% decrease compared to February 2009’s 10,819,793 ounces of silver were produced.

Meanwhile lead production declined by 11% over the past year, tungsten dropped by 2% and molybdenum rose 13% during the same period.

CBH Recommends Toho Bid

Australian zinc and lead miner CBH Resources is recommending a revised joint venture deal and bid for part of the company from its largest shareholder Toho Zinc Japan.

The move follows a suspension of the company’s shares after Toho unveiled a rival offer to a $290 million bid from Belgium’s Nyrstar.

CBH said it preferred the Toho proposal as Nyrstar's bid was conditional on acquiring all CBH's convertible notes and was also superior in terms of de-leveraging the company. Toho had earlier advised CBH that it would not support the Nyrstar bid as CBH’s major shareholder with a 23 per cent stake. It also holds just over 50 per cent of outstanding loan notes.

The Toho deal also includes a sale of 50 per cent of the Rasp zinc project at Broken Hill for $57.5m, to a joint venture between the two parties for the ownership and development of the mine.

Toho will make a partial takeover offer for up to 49.9 per cent in CBH at 25 cents a share valuing Toho’s offer for the shares it does not already own at $76 million. The offer compares with Nyrstar's revised offer of 19.5c for the whole of the company.

"Toho's revised proposal will provide CBH shareholders with the best of both worlds," CBH managing director Stephen Dennis.

"Shareholders will be able to receive significant near term gains on a portion of their CBH shares, and they will also have the opportunity to participate in the future growth of the company through the development of the Rasp project and the planned increase in production at the Endeavor Mine.

"The de-levering of the company, along with Toho's undertaking to support CBH in financing the Rasp Project, will also ensure that this important new mine is brought quickly into production."

CBH Resources Receives Alternative To Nyrstar Bid

Australian lead and zinc miner CBH Resources halted trades in its shares on Tuesday after receiving an alternative to the takeover offer on the table from Belgium's Nyrstar.

The offer is believed to have come from CBH's largest shareholder, the Japanese company, Toho Zinc, in which Toho will take a maximum 49.9 per cent stake in CBH.

The company has set up a committee of independent directors to weigh up the merits of both the Nyrstar and Toho proposals.

The company expects to make an announcement before the Australian Stock Exchange opens on Thursday.

Nyrstar has offered $0.195 per CBH share and $750 per convertible note in a bid that values all shares and convertible notes at about $290 million. CBH rebuffes a previous Nyrstar bid at the beginning of the year.

Donling Group To Reopen Baoji Smelter

The Dongling Group is to restart its 100,000-tonne-a-year lead and zinc smelter this month. The lead and zinc smelter near Baoji city in China’s Shaanxi province has been shut since August last year following accusations by locals that it was a source of lead poisoning.

Authorities closed the plant in August after local villagers broke into the plant to protest about alleged lead poisoning. Villagers living near the smelter have since been relocated.

The smelter has a capacity of about 33,000 tons lead and 66,000 tons zinc.

Oz, Azure Agree To Mexico Joint Venture

Australian mining firms Azure Minerals and OZ Minerals have signed US$13 million joint-venture agreement on Azure’s 100%-owned San Eduardo property in Sonora Mexico.


Azure’s executive chairman, Mr Tony Rovira, welcomed the interest of one of Australia’s premier mining companies as confirmation of the high quality of Azure’s Mexican projects.

Mr Rovira said, "We are delighted to have attracted OZ Minerals to the Sierra Madre Occidental district of northern Mexico, which is one of the world’s great mining provinces.

“To secure the involvement of OZ Minerals in this exploration project is a strong vote of confidence in Azure’s on-going program of regional exploration, target identification and project staking, confirming the effectiveness of our exploration team in Mexico. This Joint Venture will enable Azure to accelerate our exploration programs and develop our projects.”

To earn an initial 51% participating interest in San Eduardo, OZ Minerals will spend US$3,000,000 over the next 3 years, with a minimum commitment of US$300,000 to be expended within the first year. OZ can earn an additional 19% participating interest in the project by spending a further US$10,000,000, taking its total equity to 70%.

The San Eduardo property is a granted mineral concession covering 201km2. It adjoins Azure’s 100%-owned El Tecolote project and is situated 10 kilometres west of Azure’s La Tortuga property (subject to an earn-in joint venture with JOGMEC).
Historical sampling by the Mexican Geological Survey at Alejandra collected a 40 channel samples of wall-rock, returning an average grade of 25 g/t Ag, 7.34% Pb and 1.89% Zn, with maximum values of 80.9 g/t Ag, 20.04% Pb and 5.45% Zn.
Planning of the San Eduardo work program is at an advanced stage and field work will commence shortly. Phase 1 will comprise geological mapping and surface sampling, an airborne magnetic and radiometric survey, Induced Polarisation (IP) surveying and drilling.
This involves a minimum expenditure commitment of US$300,000, which will be sole-funded by OZ Minerals, and is expected to be completed by the end of 2010.

Breakwater Shows Q4 Profit

Canadian miner Breakwater Resources posted profits of C$5.4-million in the fourth quarter of 2009. This compared to a net loss of C$53.5-million a year earlier, when it wrote down the value of its mining assets. The full-year result was a profit of C$0.8 million against a loss of C$88.3 million in 2008.

Breakwater produces zinc, copper, lead and gold from mines in Canada, Chile and Honduras.

Lower zinc prices in late 2008 and early 2009 hit profits, however CEO David Petroff said that the company curtailed its spending and has since benefited from stronger metals prices..

“By mid-2009 any concern that Breakwater would not survive had been put to rest,” he told analysts and investors on Friday.

The company ended 2009 with C$41.1-million in the bank, working capital of C$70.7-million and a portion of future earnings protected by the purchase of zinc put options, giving shareholders the benefit of higher zinc prices.

Fourth quarter concentrate production fell 6% year-on-year to 61,757 tonnes after the company suspended production at its Langlois mine in Quebec in November 2008. However, the suspension also meant that operating costs fell by C$58.8 million or 77%, while there was also a saving of C$12 million in depreciation and depletion charges.

Gross sales revenue declined 50%, to C$50.4-million for the quarter, as a result of a 63% decrease in concentrate sold and a stronger Canadian dollar, partly offset by higher realised prices.

While zinc metal stocking and destocking at various levels in the supply chain, as well as fund activity, makes supply and demand fundamentals difficult to gauge in the short term, the company remains confident that the outlook for zinc is positive in the medium and long term, Petroff said.

There are several mine closures looming around the world, and recent production problems or uncertainty at large operations in Canada and Australia are also a reminder that “mine supply cannot be taken for granted,” he added.

China Non-Ferrous Metals Output Up 4 Per Cent In 2009

China’s non-ferrous metal output rose by 4 per cent in 2009 to hit 26.05 million tonnes, according to figures from the China Nonferrous Metals Industry Association.

Refined copper output was 4.11 million tons while virgin aluminium production stood at 12.85 million tons; in addition there was output of 3.71 million tons for lead, 4.36 million tons of zinc, 164,800 tons of nickel, 134,500 tons of tin, 165,800 tons of antimony, 500,800 tons of magnesium and 61,500 tons of titanium sponge.

However, the trade in non-ferrous metals fell in 2009 as a result of the crash in global commodities prices. Trade stood at US$83.2 billion, down 11.27% year on year.

Between them, ten regions of China, including Henan Province, Inner Mongolia Autonomous Region and Anhui Province, each produced more than one million tonnes of non-ferrous metals. Total output for these ten regions amounted to 18.78 million tonnes, 72.1% of the national total. Zhejiang Province plans to have five nonferrous metal producers with annual sales revenue exceeding RMB 10 billion each in the next three years.

Arehada Mining Sells Chinese Operating Subsidiary To Shanjin Mining

Toronto-quoted Chinese mining company is being bought by the Shandong-based mining company, Shanjin Mining Corporation. Under the terms of the agreement the Barbados-based subsidiary of the TSX-quoted company is to sell its shares in the Chinese operating subsidiary to Shanjin Mining.

The agreement will take effect upon the regulatory approval of authorities in the Inner Mongolia Autonomous Region and Shandong Province of China.

Arehada is engaged in the exploration, development, extraction and refining of base metals, primarily lead, zinc and silver in Inner Mongolia.

Xstrata Delays Closure Of New Brunswick Lead-Zinc Mine

Xstrata is expected to defer closure of its lead-zinc mine near Bathurst in northern New Brunswick. The mine was to close this month but Xstrata Zinc now says that it will stay open until 2011.

The mine has an annual capacity of 3.6 million tonnes of ore containing zinc, lead, copper, and silver.

Griffin Mining Reports Higher Gold Output At Caijiaying

UK-based miner, Griffin Mining Limited, has reported increased production at its Caijiaying Zinc Gold Mine in Hebei province, China, in the quarter to 31st December 2009.

Gold output in the quarter was up 33.7 per cent at 1673 ounces, while zinc output was up 5.3 per cent at 7141 tonnes. Output of silver fell by 21.9 per cent to 29,695 ounces while that of lead fell 36.7 per cent to 138 tonnes. Total ore processed was up 9.8 per cent at 125,379 tonnes.

Following the grant of a new mining licence permitting the extraction of ore below the 1300 level, mine development and stope preparation below the 1300 level is now underway with the expectation of ore being extracted from the lower levels later this quarter. Work is also continuing on the upgrade of the processing plant and tailings dams to increase processing capacity to 750,000 tonnes of ore per annum by the autumn of 2010.

Chairman Mladen Ninkov said: “The operating performance of the Caijiaying mine continues to improve and we look forward to even better results as the next levels of the mine are accessed and the plant upgrade is completed.”

Oriental Minerals Exercises Option On Korean Lead-Zinc Properties

Canadian-based Oriental Minerals, the only western metals exploration company active in South Korea, announced on Wednesday that it has given notice of intent to exercise options on the Yeonwha and Taebaek lead-zinc properties in South Korea in return for cash and shares worth $2.1 million. Oriental was granted the options under a 2006 agreement with the Se Woo Mining Company.


Oriental is currently progressing its three core mineral deposits in South Korea: Sangdong tungsten-molybdenum, Sangdong molybdenum and Muguk gold but regards the Taebaek and Yeonwha properties as longer-term additions to its portfolio.

Sichuan To Sell Stake In Hui-Dong Lead and Zinc Mine

China’s Sichuan Province is reportedly offering to sell an 80% stake in the Hui-Dong Lead & Zinc Mine for a lump sum of RMB 2.04 billion to any state-owned or state-controlled enterprise with a registered capital exceeding RMB 1 billion and net assets exceeding RMB 2 billion.

Prospective buyers must not have gone into debt at any time over the past three years.

Local government sources suggested that the Western Mining Company Ltd will probably buy the mine. Western signed an agreement last year with the local government to develop a lead-zinc ore mine at Huidong.

The Hui-Dong Lead & Zinc Mine was established in 1958 and had 11.56 million tons of ore as of Jan. 30, 2009, including 1.14 million tons of zinc and 88,000 tons of lead.

Xstrata, Minco To Spend $10million In Irish Zinc JV

Xstrata has joined forces with Irish company Minco to spend €7 million this year on a zinc exploration project in Ireland.
Minco has announced that it has agreed to spend €7 million to extend the existing exploration programme at the companies’ zinc and lead project at Tobermalug, Pallas Green, Co Limerick. The project has already been established as holding over 11 million tonnes of zinc and lead will be aimed at increasing proved reserves in the deposit to 15 million tonnes. The partners spent over €2 million on the project last year in what is one of the biggest onshore exploration programmes undertaken in Ireland in the last 50 years.

“This planned 2010 programme will include about 70,000 tonnes of diamond drilling in about 150 drill holes allocated within and adjacent to the Tobermalug zinc-lead deposit, and on further exploration drilling in the general Caherconlish area within a 3.5km radius of Tobermalug,” the company said in a statement.

The drilling programme is aimed at increasing the tonnage and grade of the existing deposit, to explore for lateral extensions of the deposit and to explore additional ore deposits in the Caherconlish area. In the latter regard zinc and lead deposits have already been identified at nearby Caherconlish South and Srahane west and Minco says that the three deposits could potentially contain more and higher grades of zinc and lead.

Xstrata estimates that only around 30 per cent of the potential resource has been explored.

Minco holds 23.6 per cent of the licence while Xstrata owns 76.4 per cent. The entire deposit covers an 11sq km area spanning northeast Limerick and southwest Tipperary.