B08 Metal Ore Mining

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

BHP braces for iron ore challengers

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Original article by Matt Bell
The Australian – Page: 13 & 18 : 19-Mar-24

Iron ore futures briefly fell below $US100 per tonne in Singapore trading on Monday; Macquarie Equities in turn downgraded BHP’s shares from ‘outperform’ to ‘neutral’, in response to the uncertain outlook for iron ore in the medium-term. Meanwhile, BHP has used a shareholders’ briefing to warn that the iron ore market will become more competitive by the end of this decade, with production from mines in Africa set to boost global supply. However, CFO Vandita Pant said that BHP will have a competitive edge, given that it is the lowest-cost producer of iron ore. Meanwhile, CEO Mike Henry said a decision on the future of the Nickel West business is likely to be made shortly.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MACQUARIE EQUITIES LIMITED

Cyclone Megan wreaks havoc on South32 manganese port

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Original article by Tom Richardson, Brad Thompson
The Australian Financial Review – Page: 7 : 19-Mar-24

Diversified miner South32 has declined to comment on the damage to export infrastructure associated with its Groote Eylandt manganese mine in the Northern Territory. A bulk carrier struck a loading wharf during strong winds that emanated from Cyclone Megan, causing damage to both the wharf and the vessel. Sources have questioned whether the Groote Eylandt port will become operational again, citing factors such as the cost of repairs and the mine’s remaining life is limited. It is the world’s biggest source of manganese, although South32 has previously indicated that the mine could be exhausted by the end of this decade.

CORPORATES
SOUTH32 LIMITED – ASX S32

More pain for nickel, lithium as deluge bites

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Original article by Cecile Lefort
The Australian Financial Review – Page: 27 : 28-Feb-24

The price of nickel fell by 44 per cent in 2023, and Sam Berridge of Perennial Value Management believes that it may not rebound for some time. He notes that Indonesia is continuing to ramp up its production of low-cost nickel, while the growing use of lithium ferrous phosphate in battery technology will reduce demand for the use of nickel in electric vehicles. Meanwhile, Vivek Dhar from the Commonwealth Bank says economic activity in China will be the key driver of the outlook for nickel, given that the nation accounts for 40-60 per cent of base metal demand. However, Berridge thinks the lithium price may have bottomed, after falling by 85 per cent in 2023.

CORPORATES
PERENNIAL VALUE MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Forrest blames green move for executive exodus

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Original article by Rosie Lewis
The Australian – Page: 13 & 16 : 27-Feb-24

Fortescue’s executive chairman Andrew Forrest has rejected claims that the company has experienced an unusually high number of executive departures. Speaking at the National Press Club on Monday, Forrest conceded that some executives had left it because of its transition from a "fossil fuel-burning company to a green energy company", while he said its turnover was around half when compared to the mining industry as a whole. Forrest said that Fortescue’s senior management team was beginning to settle down now.

CORPORATES
FORTESCUE LIMITED – ASX FMG, NATIONAL PRESS CLUB (AUSTRALIA)

Dam disaster, nickel weigh on BHP

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Original article by Nick Evans
The Australian – Page: 18 : 21-Feb-24

BHP has posted a 2023-24 interim statutory net profit of $US927m ($1.42bn), which is 86 per cent lower than previously. The result was marred by one-off charges relating to its Nickel West division and the Samarco tailings dam disaster in Brazil. However, BHP’s underlying profit of $US6.6bn was in line with the previous corresponding period. Meanwhile, CEO Mike Henry says BHP is the world’s lowest-cost major iron ore producer thanks to its Pilbara operations, which produced and shipped about 142.1 million tonnes in the half-year. Its full-year guidance is for 282 to 294 million tonnes.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, SAMARCO MINERACAO SA

BHP train drivers to get $300,000 plus bonus

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Original article by Ewin Hannan
The Australian – Page: 7 : 16-Feb-24

BHP has averted industrial action after agreeing to a new pay deal with its iron ore train drivers in the Pilbara that will see their base salary rise to more than $300,000 over the next four years. The in-principle agreement with the Mining & Energy Union includes an immediate pay rise of four per cent, followed by four annual increases of four per cent. The train drivers will also receive two retention bonuses of $20,000; the first will be paid immediately, with the second to be paid in 12 months’ time. The protected industrial action that was slated to disrupt iron ore rail shipments to Port Hedland from Friday will no longer proceed.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINING AND ENERGY UNION