Natural Resources Newsletter - 23 January 2015



UK Trade and Investment publishes 'Opportunities for British
oil and gas companies in Myanmar

In January 2015 UK Trade and Investment (UKTI) published "Opportunities for British companies in Burma's oil and gas sector" (UKTI Report). The report provides an overview of Myanmar's oil and gas industry, information on recent licence awards, investment opportunities and Myanmar's production sharing contracts (PSCs). The British Government opened a UKTI office in Myanmar in July 2012 to support responsible British investment and trade. 

Myanmar is estimated to possess 3.2 billion barrels of oil and 18 trillion cubic feet of natural gas reserves. Its unproven resources may be vastly greater. Currently Myanmar is the 10th largest producer of natural gas globally – the bulk of which is exported to China and Thailand.



Natural Resources Newsletter - 9 January 2015

Charltons Natural-Resources-Newsletter China-scraps-decade-old-rare-earths-exports-quotas-2015.01.09-16-1



On 31 December 2014 the Chinese Ministry of Commerce announced details of its plan to replace the controversial quota system regulating the export of rare earths with a new resources tax. In August 2014, the World Trade Organisation (WTO) found the quota system to be inconsistent with China’s WTO obligations. 

Read more: Natural Resources Newsletter - 9 January 2015


Natural Resources Newsletter - 28 October 2014

Charltons Natural-Resources-Newsletter HKEx-Group-and-China-Merchants-Group-signed-MOU-20141028-15-1


HKEx Group and China Merchangts Group signed MOU

On 22 October 2014, Hong Kong Exchanges and Clearing Ltd (HKEx), the London Metal Exchange (LME), LME Clear Ltd, China Merchants Group Ltd (CMG) and China Merchants Securities Co. Ltd (CMS) signed a memorandum of understanding (MOU) in relation to a strategic alliance concerning product development and services for market users. 

Read more: Natural Resources Newsletter - 28 October 2014

Natural Resources Newsletter - 4 July 2014

Charltons Natural-Resources-Newsletter 014 LME Ring to remain open beyond 2015    

LME "Ring" to remain open beyond 2015

On 23 June 2014, following a six month review and consultation period, the London Metal Exchange (LME) announced it plans to maintain and further invest in its 137 year old open-outcry trading “Ring”. The Ring is a physical price formation venue that provides a transparent price discovery process and supports a unique prompt date structure.

Read more: Natural Resources Newsletter - 4 July 2014


Natural Resources Newsletter - 18 June 2014



Baosteel Resources Australia Ltd (Baosteel) has announced they will not improve their US$1.3 billion takeover bid for Australian explorer Aquila Resources Ltd (Aquila) after Australian miner Mineral Resources Ltd acquired 49 million additional shares in Aquila to take its stake to 12%. Baosteel and its Australian partner Aurizon Holdings Ltd have been seeking to acquire a 50% stake in Aquila’s stalled AUS$7 billion West Pilbara Iron Ore (WPIO) rail and port project and a coal mine in Queensland. The WPIO resource is estimated to be approximately 2 billion metric tons. The offer was made on 5 May 2014 and is set to close on 11 July 2014. (Source: www.mining.com11 June 2014 and The Australian 13 June 2014)

Read more: Natural Resources Newsletter - 18 June 2014


Natural Resources Newsletter - 2 May 2014



Hong Kong Exchanges and Clearing Limited (HKEx) have announced that it plans to launch its commodities business with four futures contracts that will be traded in its derivatives market. The four futures contracts are:

• London Aluminium Mini Futures;

• London Zinc Mini Futures;

• London Copper Mini Futures; and

• API 8 Thermal Coal Futures

HKEx aims to introduce the contracts later this year, pending regulatory approval and market readiness.

Read more: Natural Resources Newsletter - 2 May 2014


Natural Resources Newsletter - 15 April 2014



Rio Tinto (Rio) has announced that it is pulling out of the Pebble Mine copper and gold project in the Bristol Bay region of Alaska. The project is wholly owned by Toronto and New York listed Northern Dynasty Minerals Ltd. (Northern Dynasty). Rio currently owns 19.1% of Northern Dynasty.

Read more: Natural Resources Newsletter - 15 April 2014

Natural Resources Newsletter - 11 March 2014


Glencore in Talks on Russneft Debt-for-Equity Deal

Glencore Xstrata PLC (Glencore) is in talks to convert US$900m of debt in Russian oil producer RussNeft OAO NK (RussNeft) into an equity stake of approximately 20%. If the proposed conversion proceeds it will make Glencore one of the largest foreign shareholders in the Russian oil industry. The deal which is subject to the finalisation of due diligence and valuation could complete by the end of 2014. RussNeft, which is owned by Mikhail Gutseriyev, is one of Russia's largest oil producers. Glencore is RussNeft's largest customer purchasing oil under a 20-year off-take agreement. (Source: www.ft.com4 March 2014)

Read more: Natural Resources Newsletter - 11 March 2014



Natural Resources Newsletter - 30 January 2014



Hong Kong listed SouthGobi Resources Ltd(SouthGobi) more than doubled its coal production in 2013 after the resumption of its Mongolian operations. Mining at SouthGobi's Ovoot Tolgoi mine was halted in June 2012 following a failed takeover bid by Aluminium Corp. of China Ltd, deteriorating market conditions and a corruption investigation. On restarting production in March 2013 SouthGobi announced it had produced 3.06 million tonnes of the 3.2 million tonnes of semi-soft coking coal it had planned to produce by the end of the 2013 and that it expects sales volumes to decrease in the first quarter of 2014 compared to the fourth quarter of 2013 citing national holidays as the reason for the slowdown. SouthGobi is 56% owned by Turquoise Hill Resources Ltd., which is majority owned by the Rio Tinto Group. (Source: Bloomberg News 16 January 2014) 

Read more: Natural Resources Newsletter - 30 January 2014

Natural Resources Newsletter - 4 December 2013


Hess to sell Indonesian assets for US$1.3 billion

Hess Corp.(Hess) has entered into two separate agreements with a joint venture formed by Indonesian state-owned PT Pertamina and Thailand's national petroleum operator PTT Exploration & Production Co. Ltd. to sell its interests in the Pangkah and Natuna A assets (Assets) offshore Indonesia for US$1.3 billion. The agreements are expected to close before the end of first-quarter 2014.

Read more: Natural Resources Newsletter - 4 December 2013