B08 Metal Ore Mining

Iron ore’s 45pc surge won’t last long: strategists

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Original article by William McInnes
The Australian Financial Review – Page: 29 : 13-Oct-21

The spot price of iron ore has risen above $US135 per tonne, and Fastmarkets MB notes that the price of the steel input has now gained 45 per cent in the last three weeks. However, Lachlan Shaw of UBS is cautious about the outlook for iron ore, noting that the rebound has been at least partially due to restocking linked to China’s recent week-long National Day holiday. Morgan Stanley is bearish about the near-term outlook for iron ore, forecasting that the price will average $US85 a tonne during the December quarter.

CORPORATES
FASTMARKETS MB, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED

Fortescue sets ambitious new hydrogen goals

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Original article by Nick Evans
The Australian – Page: 16 : 6-Oct-21

Iron ore miner Fortescue Metals Group has set a net-zero target date of 2040 for its scope 3 emissions. Fortescue’s plans to become a major player in the global hydrogen industry will be central to achieving the ambitious target. Buyers of Fortescue’s iron ore account for about 98 per cent of the group’s scope 3 emissions; this equates to around 246.1 million tonnes of carbon dioxide equivalent in 2020-21. Fortescue has also set a target of 2030 for its mining operations to become carbon-neutral, while it has outlined plans to decarbonise its fleet of ore carriers.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Clive Palmer: Federal Govt should put 10 per cent tariff on Australia’s iron ore exports

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Original article by Peter Gleeson
Sky News Australia – Page: Online : 4-Oct-21

United Australia Party chairman Clive Palmer has called on the federal government to impose a 10 per cent tariff on iron ore exports to China. Palmer said the money raised from the tariff would be used to help Australian industries that have been impacted by Chinese tariffs, such as the wine sector. He says he has made an additional one billion tonnes of iron ore available in the Pilbara, with Citic, his Chinese lessee, to be taking up that option.

CORPORATES
UNITED AUSTRALIA PARTY, CITIC LIMITED

Rio finds trust low after Juukan

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Original article by Lachlan Moffet Gray
The Australian – Page: 16 : 1-Oct-21

Rio Tinto’s survey of traditional owners in the Pilbara shows that the resources group still has much work to do in repairing strain relations in the wake of the destruction of ancient indigenous rock shelters at Juukan Gorge in 2020. One of the traditional owner entitles expressed the view that Rio Tinto is doing the "the bare minimum" to rebuild its reputation with indigenous Australians. Rio Tinto CEO Jakob Stausholm says that listening to indigenous groups will be a priority as it seeks to rebuild trust.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Major miners push for net-zero

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Original article by Greg Brown
The Australian – Page: 1 & 6 : 1-Oct-21

Minerals Council of Australia CEO Tania Constable says the mining sector has embraced a net-zero carbon emissions target of 2050. She adds that carbon capture and storage technology will play a key role in the sector’s push to become carbon-neutral by the target date, including coal producers. Meanwhile, the federal government is set to expand the Emissions Reduction Fund and make large-scale CCS projects eligible for the carbon credit scheme.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA

Forrest hails Fortescue’s Indigenous joint venture

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Original article by James Thomson
The Australian Financial Review – Page: 32 : 17-Sep-21

Wintawari Guruma Aboriginal Corporation chairman Glen Camille has welcomed a new joint venture with Fortescue Metals Group. For its part, FMG chairman Andrew Forrest says the $500 million joint venture to co-manage the development of iron ore mines in Western Australia’s Pilbara region is the largest ever contract signed with an Indigenous business organisation, and that it will expand on FMG’s Billion Opportunities program, which has awarded over $3.5 billion in contracts to Aboriginal businesses and joint ventures since 2011.

CORPORATES
WINTAWARI GURUMA ABORIGINAL CORPORATION, FORTESCUE METALS GROUP LIMITED – ASX FMG

Worried miners call for China olive branch

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Original article by Peter Ker
The Australian Financial Review – Page: 27 : 17-Sep-21

The Association of Mining & Exploration Companies is concerned about how China may react to Australia’s new defence pact, and that its response might include sanctions that hurt the mining sector. AMEC CEO Warren Pearce has urged the federal government to make efforts to rebuild its trading relationship with China. He has also urged Australia to extend an ‘olive branch’ to China by stating that it welcomes any foreign investment, so long as it is not in industries that are linked to defence. Members of AMEC include Fortescue Metals Group, OZ Minerals and Roy Hill.

CORPORATES
ASSOCIATION OF MINING AND EXPLORATION COMPANIES, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, ROY HILL HOLDINGS PTY LTD

BHP wrestles with challenge on emissions

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Original article by Perry Williams
The Australian – Page: 16 : 15-Sep-21

BHP has committed to a target of 2050 to reduce its scope 3 emissions to net zero. However, while this target will apply to the resources group’s direct suppliers and shippers, it will exclude the steelmakers that buy its iron ore. BHP contends that there are still a number of challenges for steel-makers in reducing their carbon footprint, and it intends to continue to partner with them to accelerate the transition to carbon neutral steel-making. The steel industry is estimated to have generated about 75 per cent of BHP’s total scope 3 emissions of 402 million tonnes of carbon dioxide equivalent in 2020-21.

CORPORATES
BHP GROUP LIMITED – ASX BHP

LNG exports, prices surge to record levels as iron slumps

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Original article by Perry Williams, David Rogers
The Australian – Page: 13 & 16 : 7-Sep-21

The price of iron ore has fallen by more than 40 per cent since reaching a record high of $US233 per tonne in May. Federal Resources Minister Keith Pitt says strong growth in the price of both LNG and coal is helping to offset the slump in the price of iron ore. The LNG price in Asia has risen to nearly $US20 a gigajoule, while the price of Newcastle coal recently reached a record high of $US173 a tonne. Queensland’s LNG export projects have ramped up shipments in response to the surge in prices.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Australian miners brace for fallout after Guinea coup

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Original article by Peter Ker
The Australian Financial Review – Page: 14 & 19 : 7-Sep-21

Alcoa of Australia has advised that it is monitoring the situation in Guinea, amid reports of a coup in the West African nation. Alumina, Alcoa and Rio Tinto have bauxite mining interests in Guinea, while Rio has two iron ore mining leases. Merriden Varrall from KPMG has warned of growing geopolitical stability in many nations, and that West African nations are becoming increasingly vulnerable to terrorism. However, Perseus Mining MD Jeff Quartermain says not all nations in the region are beset with problems, with Perseus operating gold mines in Ghana and Cote d’Ivoire. He notes that it has enjoyed a record year on the back of its operations in the two countries.

CORPORATES
ALCOA OF AUSTRALIA LIMITED, ALCOA INCORPORATED, RIO TINTO LIMITED – ASX RIO, PERSEUS MINING LIMITED – ASX PRU, KPMG AUSTRALIA PTY LTD