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1) US based mining giant Newmont Corp. has raised its record bid for Australian company Newcrest Mining Ltd. to bring the two gold miners together under Newmont. The revised offer is worth about $19.5 billion and comes 2 months after it rejected the initial $17 billion all-stock deal. “It’s clear that this is an improvement,” said Simon Mawhinney, chief investment officer of Allan Gray Australia Pty Ltd., the second-biggest shareholder in Newcrest behind BlackRock Inc., according to data compiled by Bloomberg. “Even though I feel the market, and possibly Newmont, underappreciates Newcrest’s assets, I don’t feel anywhere near aggrieved enough to try and scupper a transaction like this.” The merger would push Newmont even further ahead of its rival Barrick Gold and expose it to copper, a key material in the coming green transition. “Together as the clear gold-mining leader, we would be well-positioned to generate strong, stable and lasting returns with best-in-class sustainability performance for decades to come,” Newmont Chief Executive Tom Palmer said.
2) Indonesia is going to propose a free trade agreement for some minerals that are shipped to the United States so that its companies involved in the electric vehicle supply chain can benefit from the US tax credits according to a senior minister. With the new guidance issued under the Inflation Reduction Act, a certain value of battery components need to be assembled or produced in North America or be a free trade partner, a way for the United States to wean off the dependence on China for the minerals needed. Indonesia is rich in mineral resources, including nickel, but it does not have a free trade agreement with the US. Indonesia is using its nickel resource as a negotiating tool to try and woo Tesla and Ford into building plants in the country. Indonesia also banned the exports of nickel ore in 2020, forcing many Chinese companies to invest in refining facilities in the country.