B08 Metal Ore Mining

Mining investment pipeline leaks $68bn a year

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Original article by Joe Kelly
The Australian – Page: 6 : 26-Apr-24

Data from the Minerals Council of Australia shows that the value of completed mining projects totalled $21.3bn in 2023, compared with $84bn in 2013. However, the resources project pipeline increased from just 244 in 2017 to 450 in 2023. The MCA’s analysis also shows that the value of resources projects that reached the construction stage totalled $75bn in 2023, down from $255bn in 2013. MCA CEO Tania Constable says government policy settings are responsible for a significant proportion of possible mining investment that is not going ahead.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA

BHP’s bold Anglo American bid

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 26-Apr-24

BHP says that acquiring Anglo American would increase its exposure to ‘future facing commodities’, given that the latter has significant copper assets. Anglo American has advised that its board is considering the Stg31bn ($60bn) offer, which it has described as "unsolicited, nonbinding and highly conditional". BHP’s offer comprises 0.7097 of its shares for every Anglo American share. The bid values the target at Stg25.08 per share, although BHP is effectively proposing to pay Stg16.82 per share because the offer is conditional on Anglo American selling its stakes in Anglo Platinum and Kumba Iron Ore to its current shareholders. Anglo American has given BHP a deadline of 22 May to make a firm offer or walk away from the proposed deal.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, ANGLO AMERICAN PLATINUM CORPORATION, KUMBA IRON ORE LIMITED

Fortescue confident on export guidance

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Original article by Nick Evans
The Australian – Page: 16 : 25-Apr-24

Pure-play iron ore miner Fortescue has advised that its shipments from the Pilbara totalled 43.3 million tonnes in the March quarter. This was 11 per cent lower than the December quarter and down six per cent year-on-year. The lower export volumes have been attributed to the impact of a haulage train derailment during the quarter. Fortescue has conceded that full-year shipments are likely to be at the lower end of its guidance of 192-197 million tonnes. Fortescue shipped just 138.5 million tonnes in the first half of 2023-24, which will require it to ship 53.5 million tonnes in the final quarter. Meanwhile, Fortescue has further downgraded its forecast for shipments from the Iron Bridge magnetite project.

CORPORATES
FORTESCUE LIMITED – ASX FMG

Liebherr electric excavator reaches million ton milestone, scores more orders

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Original article by Jo Borris
Electrek – Page: Online : 21-Apr-24

The large Liebherr electric excavator that is operating at Fortescue’s Christmas Creek iron ore mine in Western Australia achieved a major milestone earlier in April when it moved its one millionth tonne of dirt. Fortescue has been very impressed with the Liebherr electric excavator, and aims to have two more commissioned by the end of April. Fortescue CEO Dino Otranto says that around 95 million litres of diesel will be removed from its operations every year once its entire fleet is decarbonised, or more than a quarter of a million tonnes of carbon dioxide equivalent.

CORPORATES
FORTESCUE LIMITED – ASX FMG, LIEBHERR AG

Religious freedom challenge for Rio and BHP’s US copper mine

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 17-Apr-24

BHP and Rio Tinto are facing another legal challenge to their joint venture Resolution Copper project in Arizona. The plaintiffs from the San Carlos Apache tribe are seeking to overturn a 2014 deal to transfer federal land to the joint venture; this land includes an area known as Oak Flat, which is regarded as a sacred site by Native Americans. The case will be argued on the basis that disturbing a sacred site would breach the Religious Freedom Restoration Act. Resolution is slated to produce 40 billion pounds of copper concentrate over four decades.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, RESOLUTION COPPER MINING LLC

Big investors steer clear of Fortescue, and miss major rally

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Original article by Joshua Peach
The Australian Financial Review – Page: 29 : 17-Apr-24

Analysis shows that pure-play iron ore miner and ‘green’ hydrogen aspirant Fortescue is now the least-held top-10 ASX-listed stock among institutional investors. Just one portfolio manager at more than 30 actively managed Australian equity funds has disclosed a substantial position in Fortescue so far in 2024. Fund managers have cited a number of reasons for shunning Fortescue, such as lower iron ore grades than its key rivals, the high turnover within Fortecue’s leadership team and its rising expenditure on hydrogen projects. However, Fortescue’s shares significantly outperformed BHP and Rio Tinto between September and February.

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

Two of world’s biggest mining companies join forces to make unprecedented change in steel production: We must find better ways

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Original article by Jeremiah Budin
The Cool Down – Page: Online : 16-Apr-24

Iron ore rivals BHP and Rio Tinto are collaborating on the development of an electric smelting furnace in Australia. They contend that the technology could reduce the carbon dioxide pollution intensity of steel-making by 80 per cent compared with standard blast furnaces. Steel is one of the world’s most widely-used construction materials, but current production methods generate massive amounts of greenhouse gases. The International Energy Agency has warned that the steel industry is currently not on track to meet the net-zero emissions target of 2050.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, INTERNATIONAL ENERGY AGENCY

Brokers go all in on Rio, tipping 20pc share price jump

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Original article by Alex Gluyas
The Australian Financial Review – Page: 27 : 9-Apr-24

The consensus of analysts is that Rio Tio’s shares will significantly outperform those of rival BHP over the next year. Rio Tinto’s stock is tipped to gain 20 per cent, compared with expectations of a six per cent rise in BHP’s share price. Analysts cite factors such as Rio Tinto’s rising copper production via the Oyu Tolgoi mine in Mongolia, as well as its large aluminium business. Meanwhile, BHP is facing a massive lawsuit over the collapse of a tailings dam in Brazil.

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

Big mining dividends to drop on price slump

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Original article by Alex Gluyas
The Australian Financial Review – Page: 27 : 4-Apr-24

The 2023-24 interim dividends of iron ore majors Rio Tinto, BHP and Fortescue exceeded expectations. However, the price of the steel input has shed more than 20 per cent so far in 2024, and Morgan Stanley has warned that payouts from the big miners are likely to fall. The firm notes that BHP’s dividend payout is most at risk, citing factors such as the resources group’s debt position and the potential costs arising from legal action over the Samarco dam disaster in Brazil. Morgan Stanley says Rio Tinto is its top pick in the iron ore sector, while it has an ‘equal weight’ rating on BHP and an ‘underweight’ rating on Fortescue.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE LIMITED – ASX FMG, MORGAN STANLEY AUSTRALIA LIMITED

Rio bows to pressure on green steel spending

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Original article by Brad Thompson
The Australian Financial Review – Page: 16 : 20-Mar-24

Iron ore accounted for nearly 70 per cent of Rio Tinto’s total scope 3 emissions of 578 million tonnes in 2023. The resources group has advised that it will provide increased disclosure of its expenditure on initiatives aimed at reducing scope 3 emissions, including ‘green’ steel projects. Rio Tinto has been under growing pressure from groups such as Fidelity International and the Australian Council of Superannuation Investors to improve its disclosures. Daniela Jaramillo from Fidelity says this has been a priority in talks with Rio in recent years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FIDELITY INTERNATIONAL PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED