CVRD likes China’s coke

Over the period ended July 13, Brazil’s CVRD announced its first-ever direct investment in China in the form of a joint venture to produce coke fuel with China’s Yankuang Group and Japan’s Itochu Corp.

CVRD will invest US$27 million for a 25% stake in a US$275-million plant in China’s Shandong province. The plant is due to begin commercial production in 2006 the annual rate of 2 million tonnes of coke and 200,000 tonnes of byproduct methanol. The main supplier of coal to the plant will be Yankuang subsidiary Yanzhou Coal, China’s biggest coal exporter. CVRD and Yankuang signed a separate agreement to develop the feasibility-stage Zhaolou coking-coal mining project in Shandong, with its forecasted annual production capacity of 3 million tonnes. CVRD ended the period up US$1.70, to US$49, while Yanzhou dropped US$4.29, to US$54.91, taking top spot among greatest-value losers.

Stillwater Mining rose US23, to US$15.49, even as unionized workers at the Stillwater platinum-palladium mine and Columbus processing facilities in Montana went on strike after a proposed labour contract supported by union negotiators was rejected by members. The contract tussle does not include workers at Stillwater’s nearby East Boulder mine, which continues to operate as normal.

Toronto-based junior Osprey Gold was notable as a high-volume percentage gainer, rising 31% to US17 on 4.8 million shares. Last month, the company sold 2.3 million shares at US30 to a Swiss-based investor, with proceeds earmarked for drilling at Osprey’s Jerome and Lingman Lake gold properties in Ontario.