This morning in metals news, Rio Tinto’s Oyu Tolgoi mine plans took an incremental step forward, AK Steel announced a Q4 2019 net loss of $53.9 million and Paris-based Constellium posted a stronger Q4 compared with its Q4 2018.
Rio Tinto submits power plant feasibility plan
Miner Rio Tinto, as it moves forward with its plans for the Oyu Tolgoi copper-gold mine in Mongolia, announced it has submitted a power plant feasibility plan to the country’s government.
“Rio Tinto continues to progress options to secure domestically sourced power for the Oyu Tolgoi copper mine in Mongolia, which it is obliged to do by 30 June 2023 under the 2009 Investment Agreement (IA) between Turquoise Hill, the Government of Mongolia and Rio Tinto and subsequent Power Source Framework Agreement, signed in 2018,” Rio Tinto said.
“In compliance with these agreements, Oyu Tolgoi LLC today submitted to the Government of Mongolia a Feasibility Study for the Tavan Tolgoi Power Plant (TTPP) Project, which involves building a 300 MW coal power plant. In parallel with the TTPP Project, and in consultation with the Government of Mongolia, Rio Tinto is also progressing alternative options to source domestic power, including a renewable power component.”
AK Steel posts Q4 loss, full-year $11.2M net income
Ohio-based AK Steel reported a Q4 net loss of $53.9 million and a full-year 2019 net income of $11.2 million.
“We operated well in the face of very challenging market conditions during the fourth quarter,” CEO Roger K. Newport said. “We successfully completed a major planned maintenance outage at our Dearborn Works in October and made significant investments in the blast furnace and steelmaking operations, which will generate substantial recurring cost savings. Also, during the fourth quarter we entered into a merger agreement with Cleveland-Cliffs Inc. We continue to be excited about the value-creation potential of the transaction, which we anticipate will close on March 13, subject to regulatory review and shareholder approval.”
Constellium reports Q4 net income of €22M after Q4 2018 losses
Paris-based aluminum maker Constellium reported net income of €22 million in Q4 2019, up from the Q4 2018 net loss of €57 million.
For the full year, however, Constellium posted net income of €64 million, down from gains of €190 million in 2018.
“Constellium delivered strong results in 2019,” CEO Jean-Marc Germain said. “Our Adjusted EBITDA of €562 million increased by 13%, driven by excellent performance from our Packaging and Automotive Rolled Products and Aerospace and Transportation segments. Notably, 2019 represented our third consecutive year of double digit Adjusted EBITDA growth. Our Free Cash Flow of €175 million was very strong and delivers on an important financial target that we set in March 2017. We also made substantial progress on our deleveraging objective in 2019, repaying gross debt during the year and reducing leverage to 3.9x at year end. Overall, I am proud of Constellium’s performance in 2019.”