B08 Metal Ore Mining

BHP to sit out battle for miner Teck

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 17-May-23

BHP CEO Mike Henry addressed the annual Bank of America Merrill Lynch conference in Barcelona on Tuesday. He said the resources group will maintain a "disciplined" approach to mergers and acquisitions, and its focus will be on internal growth options such as nickel, copper and the Jansen potash project in Canada. Sources have indicated that BHP is unlikely to enter any bidding war for Teck Resources, given that its copper mines are the only assets that would be of real interest. BHP would not want to increase its exposure to coking coal via the acquisition of Teck, given that it is already trying to sell some existing mines.

CORPORATES
BHP GROUP LIMITED – ASX BHP, TECK RESOURCES LIMITED

Push for BHP boss to give evidence in Brazil dam disaster

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Original article by Simon Johanson
The Age – Page: Online : 17-May-23

The class action against BHP over the Samarco tailings dam collapse in 2015 is slated to be heard by the UK’s High Court in October 2024. The class action is being led by British law firm Pogust Goodhead; global managing partner Tom Goodhead says the firm wants senior BHP executives to give evidence if the case proceeds to trial, potentially including current CEO Mike Henry. He adds that the firm wants BHP to "do the right thing" and attempt to reach a settlement in the case, more than seven years after the disaster that claimed 19 lives and caused an environmental catastrophe.

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

The bears are out again for iron ore

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Original article by Sean Smith
The West Australian – Page: Online : 21-Apr-23

The iron ore price has averaged $US109 per tonne in Singapore trading so far in the 2022-23 financial year, having peaked at around $US130 a tonne in March. The price of the steel input remains well above the Western Australian government’s revised full-year forecast of $US87.40 per tonne, which was issued in December. However, some analysts are bearish about the outlook for the iron price over the medium-term, citing factors such as rising output from major producers and a slower than expected rebound in demand for steel in China’s construction industry. Iron ore is WA’s biggest export earner.

CORPORATES

Rio beats weather, tops iron ore export record

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Apr-23

Rio Tinto has advised that its flagship Pilbara operations produced 79.2 million tonnes of iron ore during the March quarter, which is 11 per cent higher than the same period in 2022. The resources group drew upon its stockpiled iron ore to increase its shipments by 16 per cent year-on-year to 82.54 million tonnes; this eclipsed Rio Tinto’s previous first-quarter record of 80.31 million tonnes, which was set in 2018. Rio Tinto will be on track to meet its full-year export guidance of 320-335 million tonnes if this rate of shipments is sustained for the rest of the year. The first quarter of a calendar year tends to be the weakest for Australian miners, as export volumes are often disrupted by adverse weather events.

CORPORATES
RIO TINTO LIMITED – ASX RIO

OZ Minerals boss Andrew Cole won’t follow his mines to BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 19-Apr-23

OZ Minerals CEO Andrew Cole intends to "take a break" after more than eight years at the helm of the copper and nickel miner, and he will not join BHP when the $9.6bn takeover is completed. BHP is paying $28.25 per share for OZ; the company’s shares were trading at around $3 when Cole was appointed CEO in late 2014. Cole is highly regarded within the resources sector, and some Newcrest Mining shareholders had called for him to be recruited to succeed Sandeep Biswas following the latter’s departure in December.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM

Mincor board backs Forrest’s $760m takeover bid

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 5-Apr-23

Mincor Resources’ directors have recommended that shareholders accept the $1.40-per-share takeover offer from Wyloo Metals in the absence of a rival bid. The Andrew Forrest-backed Wyloo has increased its stake in nickel producer Mincor to 23.2 per cent, enabling it to prevent any rival bidder to move to the compulsory acquisition stage. There had been speculation that Wyloo’s takeover proposal could trigger rival bids for Mincor, whose board has indicated that it has held talks with third parties regarding potential interest in a bid. However, the board says that no alternative proposal is under consideration.

CORPORATES
MINCOR RESOURCES NL – ASX MCR, WYLOO METALS PTY LTD

Nickel miner Mincor seeks better offer after Forrest bids $760m

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Original article by Peter Milne
The Age – Page: Online : 22-Mar-23

Fortescue Metals Group’s founder Andrew Forrest has launched a takeover bid for Mincor Resources via his private company, Wyloo Metals. Forrest is offering $1.40 per share, which represents a 35 per cent premium to Mincor’s closing price on Monday. The nickel miner’s shares rose 41 per cent to $1.47 on Tuesday in response to the bid. Wyloo already has a 19.9 per cent stake in Mincor, which produces nickel sulphide in Western Australia’s Goldfields region. Mincor’s board has advised shareholders to take no action regarding the offer until it has considered the bid and makes a recommendation.

CORPORATES
MINCOR RESOURCES NL – ASX MCR, WYLOO METALS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG

Elders’ heartbreak at Fortescue mine brawl

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Original article by Paul Garvey
The Australian – Page: 7 : 8-Mar-23

The Federal Court has been told that Fortescue Metals Group iron ore mining operations in the Pilbara have split the Yindjibarndi people and resulted in an ongoing feud between them. The Yindjibarndi Aboriginal Corporation was granted exclusive native title rights in 2017 to the land that now comprises Fortescue’s Solomon mining hub. Yindjibarndi elders Margaret Read and Tootsie Daniel have told the Federal Court that their people became divided following the formation of a breakaway group called the Wirlu-Murra Yindjibarndi Aboriginal Corporation, which has since secured lucrative contracts at the Solomon hub. They also expressed their anguish over the impact that mining has had on the Yindjibarndi people’s land.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, YINDJIBARNDI ABORIGINAL CORPORATION, WIRLU-MURRA YINDJIBARNDI ABORIGINAL CORPORATION

Rio pays $22m to settle probe into Simandou

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 8-Mar-23

Rio Tinto has agreed to pay $US15m ($22m) to settle the US Securities & Exchange Commission’s investigation into payments it made to a Guinean political adviser. The SEC found that Rio Tinto had violated accounting and record-keeping standards by failing to properly document its engagement with Francois de Combret, who had been hired in 2011 to help the company to secure the mining rights to the Simandou iron ore deposit. The scandal resulted in the termination of two senior Rio Tinto executives in 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION

Goldman Sachs rules Rio buy

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Original article by Joanne Tran
The Australian Financial Review – Page: 26 : 7-Mar-23

Investment bank Goldman Sachs is upbeat about the outlook for iron ore, upgrading its price forecast for the steel input in 2023 to $US120 per tonne. Its previous forecast was $US100 a tonne. Goldman Sachs expects an iron ore deficit of 43 million tonnes, due to factors such as rising demand from China as the nation’s economy reopens. The firm has a ‘buy’ recommendation on Rio Tinto’s shares and a ‘sell’ rating on Fortescue Metals Group, while it has a ‘neutral’ position regarding BHP.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP