B08 Metal Ore Mining

Ellison’s delayed exit will harm undervalued MinRes share price

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Original article by Mark Wembridge, Tom Rabe, Peter Ker
The Australian Financial Review – Page: 13 & 17 : 6-Nov-24

Sources close to Mineral Resources have suggested that MD Chris Ellison may continue to be either directly or indirectly involved with the company after he steps down within the next 18 months. Bradley Watson from Bell Potter notes that Ellison is the largest shareholder in MinRes, and there could be speculation about the future of his stake in the company when he leaves. Other market observers believe that the relatively long leadership transition could weigh on the company’s share price.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, BELL POTTER SECURITIES LIMITED

Fortescue execs face bonus backlash

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Original article by Brad Thompson
The Australian – Page: 16 : 6-Nov-24

Fortescue shareholders will be given a vote on a proposal to grant performance rights to mining division CEO Dino Otranto and clean energy arm CEO Mark Hutchinson. However, Fortescue notes that granting performance rights does not require shareholder approval under the Corporations Act or ASX listing rules; the company has indicated that it will issue the performance rights even if investors vote against the resolution at its AGM on Wednesday. Three large US pension funds will oppose the resolution, with SBA Florida contending that there has been insufficient disclosure of performance targets.

CORPORATES
FORTESCUE LIMITED – ASX FMG, SBA FLORIDA

MinRes aware of claims for two years

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Original article by Elouise Fowler, Mark Wembridge, Alex Gluyas
The Australian Financial Review – Page: 13 : 30-Oct-24

Mineral Resources has advised that it had hired external lawyers in June 2022 to investigate the tax evasion allegations against MD Chris Ellison. The company also disclosed that it received more detailed allegations regarding Ellison in June and November 2023; the board also discussed the issue in June 2024. However, MinRes has stated that it did not inform shareholders of the investigation because it did not think it would have a material effect on the company’s share price. MinRes has emphasised that the sales contracts in question were struck prior to its IPO in 2006, and were made by entities that became part of MinRes when the company listed on the sharemarket.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN

$70bn class action case against BHP opens in London

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Original article by Hans van Leeuwen
The Australian Financial Review – Page: 19 : 23-Oct-24

Britain’s High Court has commenced hearing a massive class action lawsuit against BHP over the Samarco iron ore tailings dam collapse in 2015. Law firm Pogust Goodhead is representing about 62,000 Brazilians in the class action. BHP and Vale jointly owned Samarco, which operated the Germano iron ore mine; a key issue that will be addressed during the first days of the hearing is whether Samarco was an independent and autonomous company, or whether BHP was effectively in control of the iron ore project and is therefore responsible for the tragedy that resulted in 19 deaths and an environmental disaster.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, POGUST GOODHEAD, HIGH COURT OF ENGLAND AND WALES

Rio Tinto’s red alert on green laws killing mining

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Original article by Brad Thompson
The Australian – Page: 2 : 16-Oct-24

Rio Tinto contends that the federal government must find a balance between protecting the environment and supporting the resources sector. Rio Tinto’s Australian CEO Kellie Parker has stressed the need to take into account different perspectives and practical thinking in the nation’s approach to environmental protection, as well as a regulatory system that supports and enhances the contribution that the resources sector makes to the economy and society. Parker adds that Rio Tinto is committed to meeting rigorous environmental standards.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Bat with bite puts end to ore plan

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Original article by Paul Garvey
The Australian – Page: 6 : 15-Oct-24

Rio Tinto has advised that it will not proceed with the Giles Mini iron ore mine, which was to be part of the broader Rhodes Ridge project in the Pilbara. Rio Tinto and its partners in Giles Mini have withdrawn their application to develop the deposit due to concerns about its impact on the habitat of the ghost bat, which is classified as a vulnerable species. However, the Rhodes Ridge project will still go ahead, despite also being home to a sub-population of the carnivorous ghost bat.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Green issues curb Hancock project target

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 9-Oct-24

Documents filed with the Western Australian government show that Gina Rinehart has significantly scaled back the size of her proposed Mulga Downs iron ore project. The Mulga Downs mine was initially slated to produce 20 million tonnes of iron ore each year, but this has been reduced to 12 million tonnes. The amount of vegetation to be cleared at site has also been reduced from 8,422 hectares to just 4,339 hectares. Rinehart’s Hancock Prospecting has a 95 per cent stake in the subsidiary that is developing Mulga Downs.

CORPORATES
HANCOCK PROSPECTING PTY LTD

Fortescue eyes $50m carbon free kick

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 8-Oct-24

The federal government has indicated that companies will be able to start trading its Safety Mechanism Credits from early 2025. The new carbon credit scheme will reward companies with one SMC for every extra tonne of carbon they cease emitting beyond their designated target. Given that Fortescue has a goal of achieving ‘real zero’ emissions across its iron ore mines by the end of this decade, it could be in line to earn about 1.4 million SMCs in 2030. Analysts suggest that Fortescue could gain additional revenue of between $50m and $150m by selling these credits to other emitters. However, chairman Andrew Forrest has been a vocal critic of carbon offsets in the past.

CORPORATES
FORTESCUE LIMITED – ASX FMG

Green transition tailwind at our backs: Rio and BHP

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Original article by Cameron England
The Australian – Page: 20 : 2-Oct-24

Rio Tinto Jakob Stausholm says the energy transition is at the heart of the resources group’s strategy. He has used a London Metals Exchange speech to argue that while the transition to net zero emissions is underway, it is not occurring quickly enough; he adds that the energy transition will significantly boost demand for the minerals that Rio Tinto produces, including copper, aluminium, lithium and high-grade iron ore for ‘green’ steel. Meanwhile, BHP has forecast that the energy transition will boost global demand for copper.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, LONDON METAL EXCHANGE LIMITED

Diversification key to BHP’s future success

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Original article by Cameron England
The Australian – Page: 16 : 25-Sep-24

BHP CEO Mike Henry says the resources group is now o much better placed compared with a few years ago, due to a diversified portfolio of assets than includes iron ore, copper and potash. He notes that demand for all three commodities is expected to be strong in coming years. Henry has also told investors that he is "really optimistic" about BHP’s growth outlook, and notes that there is competition for capital among the group’s various growth options. Meanwhile, CFO Vandita Pant says BHP’s balance sheet is in "fantastic shape".

CORPORATES
BHP GROUP LIMITED – ASX BHP