Andrew Forrest’s $500m payday as iron ore rallies

Original article by Julie-anne Sprague
The Australian Financial Review – Page: 29 : 12-Dec-19

Shares in Fortescue Metals Group closed $0.14 higher at $10.38 on 11 December, after peaking at a record $10.45. The pure-play iron ore miner’s shares have gained nearly 150 per cent in the year to date; the rally has seen the stake of founder Andrew Forrest rise to around $11.3bn, with the iron ore price trading at around $US93 per tonne. BHP’s share price is currently trading at its highest level since August, while Rio Tinto is trading at a four-month high.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Forrest locks horns with WA government over native title court fight

Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 11-Dec-19

Fortescue Metals Group is seeking special leave to appeal against a Federal Court ruling with regard to its Solomon iron ore mining hub in the Pilbara. Western Australia’s State Solicitors Office wants the High Court to dismiss Fortescue’s application, arguing that there are major flaws in its case. The Federal Court dismissed Fortescue’s appeal against a 2017 ruling in early October, effectively stating that it had constructed the mining hub without the consent of traditional land owners.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, YINDJIBARNDI ABORIGINAL CORPORATION, FEDERAL COURT OF AUSTRALIA, HIGH COURT OF AUSTRALIA

Rio Tinto’s hold on Oyu Tolgoi deal firms with Mongolian court win

Original article by Peter Ker
The Australian Financial Review – Page: 21 : 9-Dec-19

Rio Tinto and the Mongolian government entered into an agreement in 2015 regarding a $US5.3 billion expansion of the Oyu Tolgoi mine. The Mongolian First Administrative Court upheld a claim in November that proper parliamentary process may not have been followed when striking the agreement. However, a statement issued on the Court’s official website on 5 December indicated that the ruling is not likely to impact on the 2015 agreement.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Rio wears cash drain to bet on copper

Original article by Peter Ker
The Australian Financial Review – Page: 19 : 5-Dec-19

Rio Tinto will extend the life of its Kennecott copper mine in the US until at least 2032 after unveiling plans to spend $US1.5bn on a new pit wall cutback. Rio Tinto is also widely tipped to spend some $US1.5bn on the expansion of its Oyu Tolgoi copper mine in Mongolia in 2020. The capital investment programs have raised doubts as to whether Rio Tinto’s copper and diamonds division will generate free cash flow in 2020. Copper and diamonds have accounted for the bulk of its expenditure on exploration in 2019.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP

Vale pact could deliver more deals for OZ

Original article by Peter Ker
The Australian Financial Review – Page: 22 : 29-Nov-19

OZ Minerals has exercised an option to acquire the Pantera copper exploration project in Brazil’s Carajas region from Vale. OZ has also acquired an option to buy another two copper projects from Vale, which will in turn transport and market OZ’s copper concentrate in the region. OZ MD Andrew Cole has flagged the possibility of expanding the partnership with Vale. Meanwhile, OZ has advised that construction work at the Pedra Branca copper and gold project in the Carajas region will commence in December.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLDCORP CORPORATION

Australia’s cashed-up gold miners embrace high-risk deals

Original article by Peter Ker
The Australian Financial Review – Page: 17 & 22 : 29-Nov-19

Evolution Mining is optimistic that all-in sustaining production costs at the Red Lake gold mine in Canada will fall to less than $US1,000 an ounce in three years’ time. Production costs at the mine currently exceed $1,600 an ounce, while gold is trading at $US1,452 an ounce. Evolution’s deal to acquire the mine from Newmont for $US375m ($555m) is part of a growing trend for Australian miners to buy underperforming gold assets with hopes of turning them around.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLD COMPANY, NEWCREST MINING LIMITED – ASX NCM, ST BARBARA LIMITED – ASX SBM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, NORTHERN STAR RESOURCES LIMITED – ASX NST, OCEANAGOLD CORPORATION – ASX OGC, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, IMPERIAL METALS CORPORATION, BARRICK GOLD CORPORATION, ATLANTIC GOLD CORPORATION

Rio to open $1bn Pilbara mine

Original article by Nick Evans
The Australian – Page: 27 : 28-Nov-19

Rio Tinto has advised that it will invest $US749m ($1bn) on the Western Turner Syncline 2 expansion at its Tom Price iron ore hub in the Pilbara. Exports are slated to commence in 2021, and the output will replace existing production at other Pilbara mines rather than adding new capacity. Rio Tinto also intends to deploy autonomous haulage trucks at the Western Turner Syncline 2 project.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Henry signals faster use of new tech at BHP

Original article by Nick Evans
The Australian – Page: 27 : 28-Nov-19

BHP’s incoming CEO Mike Henry has told a resources technology conference that the mining giant’s priorities will remain unchanged under his leadership. However, Henry has indicated that the deployment of new technologies will be a focus for BHP, which has been slower to roll out technology such as driverless trucks than iron ore rivals Rio Tinto and Fortescue Metals Group.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP seeks delay in Brazil class action case

Original article by Liz Main
The Australian Financial Review – Page: 21 : 27-Nov-19

BHP has asked the Federal Court to postpone a shareholder class action until criminal charges against past and present executives are resolved. Brazilian prosecutors charged eight BHP executives with a range of offences – including intentional homicide – in the wake of the Samarco iron ore tailings dam disaster in 2015. Shareholders subsequently launched a class action against BHP to recover the loss in value of their shares following the disaster. The outcome of the criminal charges is unlikely to be known for at least two years.

CORPORATES
BHP GROUP LIMITED – ASX BHP, SAMARCO MINERACAO SA, FEDERAL COURT OF AUSTRALIA, VALE SA

Rinehart prepares for Roy Hill ore boost

Original article by Nick Evans
The Australian – Page: Online : 27-Nov-19

A wet-high intensity magnetic separation plant at Gina Rinehart’s Roy Hill iron ore mine in the Pilbara will increase its production by 4-5 million tonnes a year. This will put the project on track to lift its annual export capacity to 60 million tonnes. The plant is slated to be fully operational by mid-2020 and will extend the life of the Roy Hill project by allowing more iron ore to be recovered from wet tailings and blended with lower-grade ore.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MARUBENI CORPORATION, POSCO, CHINA STEEL CORPORATION