B08 Metal Ore Mining

Foreign ownership of gold mines would rise above 50pc if Newmont-Newcrest deal goes ahead, analyst says

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Original article by Jarrod Lucas
abc.net.au – Page: Online : 6-Mar-23

Data from Surbiton Associates shows that Australia produced 313 tonnes of gold in 2022, which is equivalent to 10 million ounces. This compares with 315 tonnes in 2021 and a record 327 tonnes in 2020. Surbiton MD Sandra Close notes that Australian ownership of local gold mines is currently about 60 per cent, but this would fall to below 50 per cent if Newmont’s $24bn takeover bid for Newcrest Mining succeeds. Close adds that local ownership of the gold industry was around 80 per cent in the early 2000s, before offshore buying activity saw it fall to a low of less than 30 per cent.

CORPORATES
SURBITON ASSOCIATES PTY LTD, NEWCREST MINING LIMITED – ASX NCM, NEWMONT CORPORATION

BHP to shed coal plays as profit falls

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Original article by Nick Evans
The Australian – Page: 15 & 23 : 22-Feb-23

BHP has posted a 2022-23 interim net profit of $US6.46bn ($9.4bn), which is 24 per cent lower than previously. Rising costs and a fall in the iron ore price weighed on BHP’s earnings for the half-year. BHP has advised that unit costs at its flagship Pilbara iron ore operations rose by 13 year-on-year to $US18.30 per tonne, while it expects unit costs for the full year to be within the range of $US18 to $US19 a tonne. BHP has also revealed plans to sell its Daunia and Blackwater coking coal mines in order to focus on six export-quality mines that are held by its joint venture with Mitsubishi.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MITSUBISHI CORPORATION

Mining vital but public is ‘hostile’: Blainey

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Original article by Stewart Oldfield
The Australian Financial Review – Page: 3 : 15-Feb-23

Historian Geoffrey Blainey has emphasised the importance of the resources sector to the Australian economy. He says the current boom may be the "great mining period" in the nation’s history, and contends that the sector will remain critical to the economy for at least the next decade. Professor Blainey adds that public opinion towards mining is currently more hostile or indifferent than in any other decade in Australia’s history, while there is also political opposition to mining. He says more needs to be done to promote the mining sector’s contribution to the continuing strength of the Australian economy.

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Alcoa mining threatens Perth’s drinking water

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Original article by Peter Milne
The Age – Page: Online : 8-Feb-23

There is growing concern within the Western Australian government about the potential contamination of Perth’s water supply from bauxite mining. Internal documents show that the government is concerned about the potential for sediment from Alcoa’s bauxite mine to contaminate the Serpentine Dam, given that mining occurs just 300 metres from the water’s edge. Serpentine is Perth’s biggest dam, and changes to Alcoa’s mining methods about five years ago have increased the risk of sediment flowing into the dam.

CORPORATES
ALCOA INCORPORATED

Barrick out, but analysts say Newmont offer won’t land Newcrest

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Original article by Nick Evans
The Australian – Page: 16 : 8-Feb-23

Shares in Newcrest Mining rose 1.7 per cent to $24.95 on Tuesday. Newmont Corporation’s takeover offer comprises 0.38 of its shares for every Newcrest share, giving its bid an implied value of about $27.16 per share when it was launched. Jon Mills of Morningstar and Kate McCutcheon of Citigroup are among the analysts who are of the view that Newmont’s offer undervalues Newcrest. Meanwhile, Barrick Gold Corporation’s CEO Mark Bristow has ruled out making a rival bid for Newcrest.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NEWMONT CORPORATION, MORNINGSTAR PTY LTD, CITIGROUP PTY LTD, BARRICK GOLD CORPORATION

$24b Newcrest bid not enough

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 16 : 7-Feb-23

Investors Mutual portfolio manager Tim Wood says the acquisition of Newcrest Mining by Newmont Corporation makes sense, and there is the potential for a counter-bid. However, Wood contends that Newmont’s offer of 0.38 of its shares for every Newcrest share is insufficient; he adds that the bid is also opportunistic, given that Newcrest does not have a permanent CEO at present. Meanwhile, Newmont president Tom Palmer says the US-based gold producer believes that the proposed $24.4bn merger is a "powerful value proposition" for the two companies’ shareholders, employees and the communities in which they operate.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NEWMONT CORPORATION, INVESTORS MUTUAL LIMITED

Evolution puts mill expansion on table

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Original article by Nick Evans
The Australian – Page: 14 : 25-Jan-23

Evolution Mining produced 166,404 ounces of gold during the December quarter, which is three per cent higher than the previous three months. Production at the flagship Cowal mine in NSW rose by 33 per cent to 76,676 ounces, although output at the Red Lake mine in Canada fell by 30 per cent to 24,960 ounces. Meanwhile, CEO Lawrie Conway says Evolution has completed a feasibility study on the proposed expansion of the processing plant at its Mungari mine in Western Australia; the company’s board will consider the proposal in February. The expansion was put on hold in mid-2022 due to concerns about rising construction costs and a labour shortage in WA.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN

BHP hits iron ore production record

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Original article by Danielle Le Messurier, Gerard Cockburn
The West Australian – Page: Online : 20-Jan-23

BHP has advised that its iron ore production in the Pilbara rose by three per cent in the December quarter, to 74.3 million tonnes. Iron ore output rose to a record high of 146.4 million tonnes in the first half of 2022-23, as production at the South Flank mine ramped up. However, shipments from the Pilbara fell slightly compared with the same period in 2021-22. BHP still expects iron ore production for the full year to be within the range of 249-260 million tonnes. Meanwhile, BHP has warned that production costs are rising at both its iron ore operations and its Queensland and NSW coal mines.

CORPORATES
BHP GROUP LIMITED – ASX BHP

‘We are fooling ourselves on the timeline’: Rio CEO’s warning on solar

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

Rio Tinto has committed to investing $3bn in green energy for its Pilbara iron ore mines by 2030. Amongst other things, Rio Tinto recently commissioned a 34 megawatt solar power plant for its Gudai-Darri mine. However, CEO Jakob Stausholm has told a World Economic Forum discussion panel that the development of large-scale solar power generation is challenging, even in countries such as Australia. He also addressed the issue of the recycling and re-use of steel and critical minerals, arguing that supply constraints mean that ‘circularity’ is not likely to be a major consideration in the current decade.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WORLD ECONOMIC FORUM

Miners need to take tech risks: BHP

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Original article by Hans van Leeuwen
The Australian Financial Review – Page: 11 : 19-Jan-23

BHP CEO Mike Henry participated in a panel discussion at the World Economic Forum in Davos on Wednesday. He said mining companies will have to take more risks on innovative technology in order to meet the growing demand for commodities as the world transitions to renewable energy. Henry contends that such technology will allow miners to extract more from their existing assets, given that new mines are likely to be smaller, yield lower grades and take longer to get into production.

CORPORATES
BHP GROUP LIMITED – ASX BHP, WORLD ECONOMIC FORUM