MX Holdings, Century Aluminum Form Joint Venture; TMC Supports Seafloor Legislation And More: Wednesday's Top Mining Stories
Top Stories for March 13, 2024:
1. MX Holdings and Century Aluminum Company (NASDAQ:CENX) are forming a joint venture to create and market low-carbon secondary billet, focusing on advanced alloys with high levels of recycled content.
The venture aims to offer quality billets that help customers meet sustainability goals, with production starting in 2026. The facility location is under consideration in the Ohio Valley region.
The companies are aiming for an annual output of 250 million pounds, making it the largest American-owned secondary billet supplier globally.
Matt Rohm, CEO of MX Holdings, highlighted the complementary partnership and the venture's commitment to environmental goals.
Rohm said, "In addition to the joint venture's offering, we plan to continue to produce billet at our existing, wholly owned Pennex facilities. Each company will produce various alloys to meet specific customer needs."
2. TMC the metals company Inc. (NASDAQ:TMC) praised new U.S. legislation aimed at supporting seafloor nodule collection, processing and refining, along with advancing international rules for seafloor resources.
The Responsible Use of Seafloor Resources Act (RUSRA) seeks U.S. backing for ethical polymetallic nodule collection and federal investment in refining infrastructure for critical minerals, essential for the energy transition and national defense.
This comes as supply challenges for critical battery metals are on the rise due to growing demand from the automotive and battery industries to comply with incentives laid out in the Inflation Reduction Act.
The bill has wide support across offshore energy, marine exploration and global research sectors.
Chairman and CEO of The Metals Company Gerard Barron said, "we eagerly await the forthcoming Pentagon report on nodules as directed by the House Armed Services Committee. The Pentagon's ability and willingness to support a feasibility study for a domestic refinery could help establish mineral independence for the U.S. in nickel, cobalt and manganese."
Also Read: US Lawmakers Mull Bill To Support Deep-Sea Mining Aimed At Challenging China’s Grip On Critical Minerals
3. ArcelorMittal (OTC:AMSYF) agreed to buy a 28.4% stake (65,243,206 shares) in Vallourec from Apollo Global Management for €955 million, paying €14.64 per share.
The deal is expected to close in the second half of the year pending regulatory approval and will boost ArcelorMittal’s presence in the high-value tubular market.
Vallourec is a leader in tubular solutions for the energy sector and more, with a focus on low-carbon production in the U.S. and Brazil.
Vallourec’s 2023 EBITDA was €1.2 billion from €5.1 billion in sales, with energy transition business expected to grow significantly by 2030.
ArcelorMittal will not seek to acquire more Vallourec shares within six months.
4. Ferroglobe PLC (NASDAQ:GSM) appointed Carsten Larsen as chief commercial officer starting April 1, 2024.
Larsen has 30 years of international experience in business growth, sales and team leadership, and comes from Agilyx ApS, a plastic recycling tech company.
His background includes extensive roles at Dow where he covered global markets in Germany, Denmark, Sweden and South Africa.
5. Citigroup analyst Alexander Hacking downgraded Cleveland-Cliffs (NYSE:CLF) from Buy to Neutral and announced a $22 price target.
6. Morgan Stanley analyst Carlos De Alba downgraded MP Materials (NYSE:MP) from Overweight to Equal-Weight and announced a $15.50 price target.
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