DoD awarded the financing under the Defense Production Act (DPA) battery grant programme.

The financing will be matched with a $43m investment by South32, to support the activities that will help advance the domestic production of battery-grade manganese.

Hermosa is a polymetallic development with zinc-lead-silver sulfide deposit, a battery-grade manganese deposit, with the potential for further polymetallic and copper mineralisation.

Located in a historic mining district in the Patagonia Mountains of Southern Arizona, Hermosa is the only US project to produce, zinc and manganese, two federally designated critical minerals.

South32 Chief Executive Officer Graham Kerr said, “The Department of Defense funding will help support the development of the Hermosa project’s battery-grade manganese deposit.

“The only advanced project in the United States that has demonstrated through a pilot testing program that it can produce battery-grade manganese from a domestic ore source.”

The DoD funding will help South32 advance battery-grade manganese production at Hermosa, to market in North America, including DoD-designated end-users.

Also, the funding is expected to create a cost-effective domestic option for manganese products within the electric vehicle battery supply chain that is currently dependent on imports.

Hermosa project is adopting sustainability and advanced technology in its underground mine design, through power supply from renewable energy and all-electric underground mining fleet.

The manganese deposit would have a lower carbon footprint than other methods to produce battery-grade manganese such as the Electrolytic Manganese Metal (EMM) production process.

The project, with a surface footprint of 750 acres is expected to use around 75% less water than other mines in the region, minimising environmental impact.

Furthermore, the project is expected to support the local economy, create up to 900 jobs and support investment across surrounding communities for decades.

Hermosa president Pat Risner said: “This project represents an opportunity for the United States to create domestic supply chains for the minerals and metals important to national security.

“The Department of Defense funding will help develop this critical resource on a timeline that matches that urgency.”

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Mothae is an open-cast mine that began commercial operations in 2019, following the commissioning of the 1.1 million ton per annum (mtpa) kimberlite processing plant.

The mine produces large, high-value diamonds with the second-highest dollar per carat price for diamonds.

Its processing plant is equipped with an X-ray transmission (XRT) recovery facility and a treatment facility that currently undergoing upgrades to enhance the throughput capacity.

The announcement follows a review of the asset portfolio by its newly restructured board of directors.

Furthermore, the diamond company is also discussing the options with the Government of the Kingdom of Lesotho, which owns the remaining 30% stake in the diamond mine.

Lucapa chairman Stuart Brown said: “On review, it is clear the Company should streamline the portfolio to focus on our core assets in Africa and Australia.

“The Company’s collaboration with the Lesotho Government on the Mothae Diamond Mine has been rewarding and our management have worked exceptionally well to optimise the plant to recover large diamonds.

“We expect there will be significant interest from those within the diamond industry and on a wider scale.”

In 2021, Lucapa Diamond agreed to acquire the historic Merlin diamond project in Australia from Merlin Operations, a subsidiary of Merlin Diamonds, for AUD8.5m ($6.6m) in cash.

The acquisition includes the Merlin diamond project, which comprises MLN 1154, a 24km2 mining lease and a 283km2 exploration tenement, along with associated equipment and assets.

The diamond project, which was previously mined by Rio Tinto and Ashton Diamonds between 1999 and 2003, represents a near-term development opportunity for Lucapa in Australia.

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Shetland 2 is a 525kV High Voltage Direct Current (HVDC) subsea cable project, planned to connect ScotWind’s offshore wind farms with the main Great Britain (GB) transmission system.

The need for a second HVDC link from Shetland to the main GB transmission system has recently been confirmed by independent electricity system operator National Grid ESO, as part of its ‘Beyond 2030’ plan.

According to the plan, SSEN would invest £5bn in the north of Scotland by 2035 to strengthen the region’s energy infrastructure.

In addition to connecting three ScotWind offshore wind farm sites to Shetland, Shetland 2 will also support decarbonisation and energy security ambitions, said SSEN Transmission.

SSEN Transmission managing director Rob McDonald said: “Sumitomo’s investment in a new cable manufacturing facility in Nigg will help deliver a homegrown supply chain to help support our energy security and net zero infrastructure requirements.

“This is great news for the Highland economy and will support hundreds of skilled jobs in the region, helping unleash the economic potential the clean energy transition presents for the north of Scotland.”

In a separate development, Sumitomo Electric has started construction on a new, advanced subsea transmission cable factory at the Port of Nigg, Scotland.

The Japanese company plans to commission the new subsea cable factory in 2026.

The new facility, planned to be built with a £350m investment, will supply critical elements for the UK electricity grid and connect renewable energy production facilities to the grid.

It will create more than 150 highly skilled jobs in the Scottish Highlands and use the local supply chain for the production of cables and construction of transmission cable systems.

Furthermore, the new factory would provide critical electricity transmission infrastructure to connect and deliver renewable energy to the UK and help achieve the UK Net Zero Target.

Sumitomo Electric Group president Osamu Inoue said: “I am pleased to announce the commencement of this innovative High-voltage cable factory in Scotland.

“Transmission cables are key essential infrastructures to make the so-called Energy Transition to renewables into reality.

“I believe, this factory will make good contributions towards the establishment of local supply chains and to realise UK and Scottish Governments’ net zero initiatives.”

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Petronas has been awarded the Bobara working area, located offshore of West Papua, Eastern Indonesia, during the third round of Indonesia Petroleum Bid Round 2023.

Under the terms of the PSC, the new acreage will see three geological and geophysical studies in the first three years, including 2,000km² of 3D seismic data acquisition and processing.

Currently, Petronas is the operator for the Ketapang, North Madura II, and North Ketapang PSCs, located offshore East Java.

Also, the company is a joint venture partner in five PSCs, both onshore and offshore Sumatra, Natuna Sea, East Java, as well as East Indonesia.

Petronas upstream CEO and executive vice president Datuk Adif Zulkifli said: “The signing of the Bobara PSC marks a significant milestone in our steadfast commitment to sustainable energy exploration and development in the region.

“This reflects PETRONAS’ long-term dedication to supporting the Republic of Indonesia’s aspiration to achieve the 2030 production targets.

“Petronas appreciates the unwavering support and trust given by the Government of Indonesia to unlock the hydrocarbon potential in this exciting frontier area.”

In a separate development, Petronas’ subsidiary PC Ketapang II (PCK2L) has extended the PSC for the Ketapang Contract Area, located in the Java Sea, until 2048.

The PSC extension follows approval by the Government of Indonesia, through the Ministry of Energy and Mineral Resources on 21st December last year.

Under the extended PSC, PCK2L will continue to hold 77.6% interest, alongside Saka Ketapang Perdana and Petrogas Jatim Sampang Energi, and will be the operator of the contract area.

PCK2L president and country head Yuzaini Yusof said: “Not only will this 20-year PSC extension drive our continuous growth in Indonesia but solidifies our portfolio in East Java where we also operate two other Contract Areas.

“The support from the Government of Indonesia for this extension provides us with even greater confidence, enabling us to play a more effective role in supporting the country’s energy landscape.

“We are profoundly appreciative for this support, as we collaborate with the Government towards achieving Indonesia’s 2030 production targets.”

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Following completion of the asset review initiated during 2023, Anglo American plans to implement a number of major structural changes to accelerate delivery against its strategic priorities of operational excellence, portfolio simplification, and growth:

Undiluted Anglo American shareholder participation in a simpler portfolio of world-class assets with full value transparency

Copper3 of the top 10 producing copper mines in South America, with outstanding resource endowments
Set for multiple decades of competitive production and growth, with a defined pathway to >1mtpa of copper production
Premium iron oreFocused producer of 100% premium product, ideally suited to support steel decarbonisation
Attractive resource endowments in Brazil and South Africa
Crop nutrientsSlow down development to support balance sheet deleveraging, while critical technical studies are completed in 2025, to then support syndication. Capex reduced to $200 million in 2025 and no capex in 2026
Preserving long term value from high quality asset with multi-generational resource scale
Compelling value proposition exclusively for Anglo American’s shareholders

Portfolio and structure transformation – 100% future-enabling portfolio, including 54% copper production, in products that support the energy transition, improving global living standards and food security
Outstanding organic growth – Proven project delivery and sustainability leadership
High quality financial profile – EBITDA margin increases to 46% from 31% on a 2023 pro forma basis1
Efficiency and accountability – $1.7 billion lower cost of new portfolio configuration. This includes $0.8 billion of additional pre-tax recurring annual run rate cost benefits from the end of 20252
Disciplined capital allocation – less than 1.5x net debt:EBITDA leverage at bottom of the cycle, with 40% dividend payout maintained
Clear pathway for portfolio value delivery – in the right way and for value

Steelmaking Coal – To be divested and currently responding to strong buyer interest
Nickel – Exploring options for care and maintenance and divestment
Anglo American Platinum – To be demerged in a responsible and orderly way to optimise value for both Anglo American’s and Anglo American Platinum’s shareholders
De Beers – To be divested or demerged, to improve strategic flexibility for both De Beers and Anglo American
Duncan Wanblad, Chief Executive of Anglo American, said:

“We set out our clear strategic priorities earlier this year – operational excellence, portfolio simplification, and growth. Our decision to focus Anglo American’s portfolio in our world-class resource asset base in copper and premium iron ore – while retaining our crop nutrients optionality at Woodsmith – marks a major new phase in executing our strategy.

“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction.

“Anglo American’s shareholders will see the full undiluted upside from these extensive changes, with the value of our copper and iron ore assets brought to the fore. This next step in the transformation of Anglo American’s portfolio is set to accelerate the recognition of value that has been inherent in our business for many years and provide Anglo American’s shareholders with undiluted and differentiated participation in the major structural demand trends, while minimising any frictional costs associated with this major portfolio transformation.

“These actions represent the most radical changes to Anglo American in decades. I believe these are the right decisions to position Anglo American to capitalise on the outstanding resource endowment opportunities within our portfolio today. Our proven and differentiated capabilities within Anglo American, our global relationship networks and our longstanding reputation as a responsible mining company will help us unlock numerous of these and other opportunities in the jurisdictions where our experience and track record are most valuable and most valued, namely in South America and Southern Africa.

“Of course, we are conscious of the impacts of making such far-reaching changes, particularly on our employees. We see considerable opportunities for our employees, both in delivering the full potential of Anglo American and in the businesses that we will be divesting or demerging, all of which are high quality businesses in their own right. By implementing these portfolio changes ourselves, we will be able to do so in a manner that is respectful of our employees, host communities and countries, including ensuring that in South Africa in particular Anglo American continues to play its role as a responsible business leader to support the country’s national priorities.

“We are taking clear and decisive action to deliver value – safely, responsibly and reliably – in the long term interests of our shareholders and other stakeholders, and to deliver the products that are so critical to enabling the energy transition and supporting improved global living standards and food security.”

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During May, the Mara Rosa processing plant has operated at an average throughput of approximately 90% of its name-plate capacity of 7,000 tonnes per day and exceeded 80% average recoveries. The ramp-up is on schedule to be completed in H1 and gold production is expected to continue to increase in the third and fourth quarters of 2024, with the mine on track to produce between 83,000 to 93,000 ounces of gold this year.

Mara Rosa is Hochschild’s first Brazilian operation and is located in the state of Goias. Brazil represents a key growth opportunity for Hochschild as the Company continues to execute its strategy of increasing production while reducing costs. Mara Rosa is delivering production at a significantly lower cost, with excellent potential to provide additional resources which we are targeting through the Company’s brownfield exploration programme. Furthermore, the Company recently announced the securing of an option to acquire 100% of Cerrado Gold’s Monte Do Carmo gold project (“MDC”) in the state of Tocantins. This low-cost opportunity will follow the blueprint established at Mara Rosa and, if the option is exercised, MDC will provide the Company with a further source of growth, also with a compelling cost profile.

Eduardo Landin, Chief Executive Officer, said:

“Achieving commercial production at Mara Rosa is a significant milestone for Hochschild and has been delivered ahead of our end H1 2024 forecast. This brings a new jurisdiction to the Company and provides a springboard for further low-cost growth in Brazil. We are pleased that Mara Rosa is ramping up quickly and thank our team, contractors and stakeholders for their hard work and support.”

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In addition, New Gold has agreed to sell its 87,300,000 common Shares to a syndicate of underwriters led by CIBC Capital Markets, at $1.72 per share, for a total of $150m.

The offering is expected to be closed by 17 May 2024, subject to customary closing conditions, including the receipt of all necessary approvals by the Toronto Stock Exchange and the NYSE.

The company intends to use the $150m bought deal equity financing to partly fund the transaction, along with cash on hand, and borrowings from its existing revolving credit facility.

Upon closing, Ontario Teachers’ interest in New Afton will be reduced from 46.0% to 19.9% in exchange for an upfront cash payment of $255m from New Gold.

New Gold president and CEO Patrick Godin said: “This is an excellent transaction where we increase our free cash flow exposure in a copper and gold asset which we already own and operate.

“This transaction is expected to allow us to grow accretively with no diligence risk and increase our free cash flow interest at New Afton.

“With key C-Zone milestones set for completion later this year, New Afton is on the verge of attractive production growth and cost improvement that we believe will lead to increased free cash flow generation.

“Our goal is not only to maximize this free cash flow generation at the mine, but to also maximize benefits for our shareholders.”

New Afton mine’s C-Zone is expected to enter commercial production in the second half of this year, with significant free cash flow growth driven by increasing production and improved costs.

With New Gold increasing its stake, New Afton would enter a period of significant growth driven by increasing production and improved costs.

The transaction is expected to deliver a meaningful increase in attributable life-of-mine cash flow while maintaining New Gold’s balance sheet strength and financial liquidity.

New Gold said that the transaction provides growth without needing any additional general and administrative expenses.

Furthermore, its focus on exploration activities will improve the production profile and extend the mine-life of the New Afton mine, said the Canadian mining company.

The post New Gold to increase interest in New Afton mine to 80% appeared first on NS Energy.

Box Canyon is a 300MW utility-scale solar facility located in Pinal County, Arizona, and is owned by BOCA, in which BrightNight and Cordelio are co-members.

The construction of the 300MW solar power project started in December last year and is expected to begin operation in the first half of 2025.

Salt Lake City, Utah-based national bank Zions Bancorporation served as the administrative agent and coordinating lead arranger for the transaction.

The National Bank of Canada, Royal Bank of Canada, Sumitomo Mitsui Trust Bank, and Canadian Imperial Bank of Commerce served as joint lead arrangers.

BrightNight CEO Martin Hermann said: “Along with our recent $375m corporate credit facility with a strong bank group, this successful financing is a significant milestone in funding the buildout of our extensive 37GW renewable power portfolio.

“We deeply value our partnership with SPPA, Pinal County and the state of Arizona. This funding will bring much-needed clean power, hundreds of skilled jobs, economic development and energy security to this strategic and rapidly growing region.”

In December 2022, BOCA signed a 20-year power purchase agreement (PPA) with the Southwest Public Power Agency (SPPA).

SPPA provides power to 25 different smaller electric co-ops and utilities throughout Arizona.

Box Canyon represents the largest renewable energy procurement in SPPA’s history and a major step in Arizona’s clean energy transformation.

BrightNight CFO Brian Boland said: “A critical part of being a next-generation IPP and building out our portfolio is securing the right capital to deliver on our ambitious plans.

“Reaching financial close on a utility-scale project of this magnitude is an extensive undertaking. These transactions are complex and require extensive due diligence and strong partners.

“I want to thank the BrightNight team, our participating banks, and project partners in supporting us on this project that will benefit SPPA, Arizona, and our investors.”

BrightNight is leading the development of the Box Canyon, as part of its joint venture with Cordelio Power.

The project, a part of BrightNight’s 37GW renewable power portfolio, is expected to produce adequate electricity to power 77,000 homes and businesses in Arizona each year.

It is designed to deliver maximum performance and high value at the lowest cost using BrightNight’s advanced artificial Intelligence (AI) platform, dubbed PowerAlpha.

In addition to providing clean, reliable, and affordable energy, the renewable energy project will also offset nearly 600 metric tons of CO2 emissions every hour, said BrightNight.

The post BrightNight secures $414m financing for 300MW Box Canyon solar project appeared first on NS Energy.

The acquisition includes around 450 miles (724km) of pipelines that carry natural gas liquids (NGL) and hydrocarbons throughout the Texas and Louisiana Gulf Coast midstream corridors.

The Houston, Texas-based midstream company will retain and continue to operate its NGL and olefins storage business in Markham, Texas.

The transaction is expected to be completed mid-year 2024, subject to customary conditions including termination of the waiting periods under the Hart-Scott-Rodino Act.

ONEOK intends to connect the acquired pipelines to its Mont Belvieu, Texas NGL infrastructure and Houston refined products and crude oil infrastructure, to advance commercial synergies.

ONEOK president and CEO Pierce Norton II said: “This strategic acquisition provides the quickest pipeline connectivity to and within the critical supply and demand centres for our NGLs, refined products and crude oil assets in the Gulf Coast.

“We expect that this acquisition will accelerate the ability to capture commercial synergies related to our recent Magellan acquisition and future earnings growth.”

Easton is a portfolio company of Cresta Fund Management (Cresta), a Dallas-based private equity fund that manages over $1.6bn of capital.

The company owns salt dome storage infrastructure, located between major NGL and petrochemical markets in Mont Belvieu and Corpus Christi, Texas.

The infrastructure includes brine handling facilities and multiple salt dome wells with around 40 million barrels of NGL and olefins storage capacity.

Cresta managing partner Chris Rozzell said: “This transaction confirms the potential Cresta saw in these pipelines when we acquired them in 2018.

“We are enthusiastic about Easton’s sharpened focus on its storage business and are excited about its ability to provide services to a variety of different NGL customers.”

Easton CEO Jerry Cardillo said: “These pipelines are a critical piece of the U.S. Gulf Coast NGL and hydrocarbon value chain. This transaction recognizes value for our customers, shareholders, and our business partners. We will now pivot our focus to our remaining business, our NGL and olefins storage business.”

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Mark Goodman, Chairman of Copper Road stated, “on behalf of the board of directors of Copper Road, we are excited about our future prospects and the continued exposure to the Copper Road Project by both the Company and its shareholders through collective ownership interest in common shares of Sterling.” Following the completion of the sale of the Copper Road Project, the Company’s focus has shifted to its Mount Jamie North Property located in Red Lake, Ontario. The property consists of 30 mineral claims totaling 445 hectares located in Todd Township in the Red Lake Mining Division. Copper Road may also acquire other exploration projects of merit.

Pursuant to the requirements of the TSX Venture Exchange (“TSXV”), the common shares of Copper Road (the “Copper Road Shares”) will continue to remain halted until the completion of the Distribution to both registered and beneficial shareholders of the Company, which is expected to occur on or about May 20, 2024. Beneficial shareholders, being those holding their Copper Road Shares through brokerage accounts where their Copper Road Shares are held via CDS or other depositories should contact their brokers for further information regarding payment of the Distribution. Registered holders of Copper Road Shares entitled to the Distribution, being those holding Copper Road Shares in certified form or under the direct registration system (DRS), will receive Consideration Shares by way of DRS statements evidencing the Consideration Shares to which they are entitled under the Distribution.

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