B08 Metal Ore Mining

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

BHP hit in $5.4b nickel wipeout

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Original article by Brad Thompson, Peter Ker, Tom Rabe
The Australian Financial Review – Page: 1 & 17 : 16-Feb-24

BHP’s Nickel West division has made a loss of $US200m ($308m) over the last six month, due to the sharp downturn in the price of the battery metal. BHP has advised that its half-year accounts will include a pre-tax writedown of $5.4bn in the value of the nickel business; the resources group has also warned that it could potentially place the nickel operations – which employ about 3,000 people – in ‘care and maintenance’ mode. Meanwhile, the Western Australian government may provide royalty relief to struggling nickel producers, but Premier Roger Cook says governments at all levels need to step in and assist them to ride out the "significant structural disruption" to the industry.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

BHP’s train drivers to strike

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Original article by Ewin Hannan
The Australian – Page: 4 : 13-Feb-24

BHP’s iron ore shipments from the Pilbara are set to be disrupted after 97 per cent of train drivers who are members of the Mining & Energy Union voted in favour of industrial action. The union has organised a 24-hour strike on Friday as part of negotiations for a new enterprise agreement. The train drivers rejected a proposed agreement in December, and BHP’s Warren Wellbeloved says it was a " fair and generous offer". The strike will be the first since 2008 in the Pilbara’s iron ore industry, which is largely deunionised.

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

WA gold miners Silver Lake, Red 5 in $2.2bn merger deal

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Original article by Giuseppe Tauriello
The Australian – Page: 15 & 18 : 6-Feb-24

Shares in gold miner Red 5 rose by three per cent to $0.34 on Monday, in response to a proposed merger with Silver Lake Resources. Red 5 is offering 3.434 of its shares for every Silver Lake share, and Red 5 shareholders will own 51.7 per cent of the merged entity if the deal is approved. The deal has the support of both groups’ boards, and Red 5 chairman Russell Clark does not expect a bidding war to emerge. The combined company would be the fifth-largest gold miner on the Australian sharemarket, with annual production of about 445,000 ounces.

CORPORATES
RED 5 LIMITED – ASX RED, SILVER LAKE RESOURCES LIMITED – ASX SLR

Citi tips iron ore to reach $US150 on China hopes

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Original article by Alex Gluyas
The Australian Financial Review – Page: 23 : 30-Jan-24

Iron ore futures traded in Singapore rose to $US136 a tonne after the People’s Bank of China announced plans to inject more liquidity into the financial system. There have also been reports that the Chinese government may consider measures to stabilise the nation’s sharemarket. Citigroup has in turn maintained its forecast for the price of iron ore to reach $US150/tonne over the next three months. The firm has also upgraded its copper price forecast to $US8,800 per tonne.

CORPORATES
CITIGROUP INCORPORATED, PEOPLE’S BANK OF CHINA

Forrest wants tax credits, royalty relief to save nickel

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Original article by Brad Thompson, Peter Ker
The Australian Financial Review – Page: 14 : 24-Jan-24

Wyloo Metals CEO Luca Giacovazzi has warned that Australia’s nickel industry is at a crossroads, arguing that action is needed to ensure that the sector remains viable. Amongst other things, the private company of mining magnate Andrew Forrest has called for a 10 per cent production tax credit for downstream nickel processing, royalty relief and greater access to government funding. Wyloo also advocates a price premium on nickel that is produced in accordance with environmental, social and governance standards.

CORPORATES
WYLOO METALS PTY LTD

Rio iron exports up as Mongolia bites

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 17-Jan-24

Rio Tinto’s production report for the December quarter shows that its Pilbara mines shipped 86.25 million tonnes of iron ore in the final three months of 2023, and 338.1 million tonnes in the calendar year. The resources giant is targeting shipments of between 323 million and 338 million tonnes in 2024. Rio Tinto also advised that shipments of its benchmark ‘Pilbara blend’ product fell by five per cent year-on-year, while export volumes for its lower grade SP10 ‘fines’ were 56 per cent higher; the company expects SP10 shipments to remain high until its new mines come into production. Meanwhile, Rio Tinto says it has received a new claim for unpaid taxes by the Mongolian government regarding the Oyu Tolgoi copper mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Nickel miners brace for job losses after Panoramic ends production

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 10-Jan-24

About 300 workers at Panoramic Resources’ Savannah nickel mine in Western Australia are expected to lose their jobs after the company’s administrators moved to suspend production at the site. FTI Consulting was appointed to the role in mid-December, with the aim of keeping Savannah open, but the price of nickel has continued to fall. Panoramic reopened the Savannah mine in the Kimberley region in 2021, but factors such as a sharp fall in the nickel price in 2023 weighed on the company. There are fears of further job losses in Australia’s nickel sector, amid expectations of a global oversupply in 2024; Indonesia in particular intends to ramp up nickel production via Chinese investment in the sector.

CORPORATES
PANORAMIC RESOURCES LIMITED – ASX PAN, FTI CONSULTING PTY LTD

Mining giant charges dropped over harassment documents

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Original article by Aaron Bunch
WAtoday – Page: Online : 19-Dec-23

Fortescue Metals Group has released a statement in which it emphasises that the health and safety of its staff are the highest priority. This follows a decision by WorkSafe Western Australia to drop legal action against the iron ore miner over its failure to supply documents relating to alleged sexual harassment incidents at its Christmas Creek, Solomon and Cloudbreak mines. Fortescue has agreed to provide funding for programs arising from the recommendations of the Enough is Enough report on sexual misconduct in WA’s mining industry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. DEPT OF CONSUMER AND EMPLOYMENT PROTECTION. WORKSAFE