US markets rise, June 21-25

The Dow Jones Industrial Average jumped 3.37% to finish the week at 34,433.84 and the S&P 500 climbed 2.74% to 4,280.70. Spot gold increased by US$17.70 per oz., or 1%, to US$1,781.50 per ounce. 

Rio Tinto rose US$3.98 to US$85.02 per share. The company has partnered with French electrical equipment group Schneider Electric to utilise each other’s materials and services, the companies said on June 23. Schneider Electric, which sells products ranging from electric car chargers to industrial robotics, will use materials, such as low-carbon aluminium and copper produced by Rio Tinto with renewable power, iron ore, and borates. In turn, Rio Tinto will utilise low-carbon sourced energy and industrial services from Schneider Electric. The two companies said they are working jointly to develop digital platforms, technologies, and solutions to be deployed across the metals and mining supply chain to drive further decarbonisation.

Shares of Vale increased by US$1.17 to US$22.68. The company announced that it will join forces with China Baowu, the world’s top steelmaker, and Shandong Xinhai Technology, to make stainless steel raw material nickel pig iron (NPI) in Indonesia. Baowu subsidiary Taigang Iron and Steel, China’s second-biggest stainless steel producer, signed a framework agreement with PT Vale Indonesia (PTVI) and NPI maker Xinhai to jointly operate the Bahodopi nickel processing facility in Morowali on the island of Sulawesi. Vale will hold 49% in the project, while China Baowu and Xinhai will split the remaining 51%. The project is expected to produce 73,000 tonnes of NPI per year on a nickel content basis via eight rotary kiln-electric furnaces. The three companies have agreed that all technical and financial requirements needed to make a final investment decision are to be completed within six months, Vale said in a statement.

Kinross Gold fell US4¢ to US$6.38 per share. The company announced that it has resumed mining and construction work at the expansion of its Tasiast mine in Mauritania, but milling activities will remain suspended for now following a June 15 fire at the mine. The Canadian miner said early estimates indicate the SAG mill would only restart by year-end, at a cost of up to US$50 million. Kinross has lowered its company-wide 2021 production guidance to 2.1 million gold-equivalent ounces, from its previous forecast of 2.4 million ounces. The 2022 and 2023 guidance of about 2.7 million to 2.9 million gold-equivalent ounces remain unchanged, the company said, adding that it does not anticipate the fire will affect Tasiast’s life-of-mine production and mineral reserve estimates, or have a material impact on the mine’s overall value.