B08 Metal Ore Mining

China price blitz raises iron ore threat

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Original article by Michael Smith
The Australian Financial Review – Page: 1 & 10 : 25-May-21

The price of iron ore futures fell on 24 May after Chinese authorities announced plans to crack down on commodity price speculation by domestic traders and firms. The crackdown is also seen as an attempt to curb inflation, with China’s producer price index having risen 6.8 per cent year-on-year in April, compared to 4.4 per cent growth recorded in March. Traders expect the clampdown on commodity price speculation will impact on futures trading, but it is not expected to undermine strong demand for iron ore, which is being driven by "tight supply". The share prices of Australian iron ore producers also fell sharply.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP

China trade tension a risk to economy: BHP mining boss

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Original article by Emmaline Stigwood
The Australian – Page: 13 & 16 : 21-May-21

China’s unofficial ban on coal imports from Australia has forced local producers to find alternative markets for metallurgical coal. BHP Minerals Australia president Edgar Basto notes that this has resulted in the price falling by up to 50 per cent; he says this is unsustainable and action to improve Australia’s relations with China will eventually be needed, given that China is a major market for coal used in steel-making. Basto says that both nations must take action to "rebuild trust".

CORPORATES
BHP GROUP LIMITED – ASX BHP

Super quick payback looms on BHP’s South Flank mine

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Original article by Peter Ker
The Australian Financial Review – Page: Online : 21-May-21

BHP commenced production at its new South Flank iron ore mine on 20 May, less than three years after the $US3.6bn project was approved. South Flank is slated to produce about 40 million tonnes of iron ore in fiscal 2022, and the mine is scheduled to reach full capacity of 80 million tonnes in its third year of operation. The iron ore price is currently trading above $US210 per tonne, compared with just $US66 per tonne when BHP’s board approved the project in June 2018.

CORPORATES
BHP GROUP LIMITED – ASX BHP

McGowan drive cuts FIFO numbers

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Original article by Paul Garvey
The Australian – Page: 5 : 17-May-21

The number of east coast-based ‘fly-in fly-out’ workers in Western Australia’s mining sector was estimated at between 4,000 and 5,000 at the start of the COVID-19 pandemic. The Chamber of Minerals & Energy estimates that about 2,000 of these workers have relocated to WA since Premier Mark McGowan urged them to do so in May 2020. CME CEO Paul Everingham says the number of FIFO workers in the state’s mining sector could eventually fall to around 1,000. However, he believes that a labour shortage means that resources groups will need to continue to recruit workers from interstate.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Heritage spats slow BHP plans

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 28-Apr-21

BHP struck the Olympic Dam Agreement with the Kokatha, the Kuyani and the Barngarla people in 2008. However, a native title ruling in 2014 deemed that the Kokatha people were the sole traditional owners of the land that encompasses the Olympic Dam copper mine. The Kokatha people contend that the existing agreement is outdated and must be replaced, and that BHP should not be consulting with the Kuyani and the Barngarla with regard to the management of heritage sites for which they no longer have any native title rights. BHP in turn contends that the terms of the 2008 agreement require it to consult with all three indigenous groups.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Record production in sight for BHP

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Original article by Nick Evans
The Australian – Page: 16 : 22-Apr-21

BHP’s quarterly activities report shows that it shipped 66 million tonnes of iron ore from the Pilbara in the March quarter. This compares with 70.8 million tonnes in the December quarter and 68.5 million tonnes during the first three months of 2020. However, the fall in export volumes had been flagged by BHP in early 2021. The resources giant will only need to ship 73.1 million tonnes in the June quarter to exceed its 2019-20 export total of 283.3 million tonnes. BHP’s full-year profits will be boosted by the continued strength of the iron ore price, which has reached a 10-year high of $US189.61 a tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Bonanza for iron ore miners

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 16 : 21-Apr-21

Rio Tinto’s quarterly production report shows that its iron ore exports from the Pilbara totalled 77.79 million tonnes in the first three months of 2021, an increase of seven per cent year-on-year. Peter O’Connor of Shaw & Partners expects Rio Tinto to post an underlying profit of $US17.69bn ($22.7bn) for calendar 2021, eclipsing its record profit of $US15.5bn in 2011. The strength of the iron ore price during the March quarter has boosted the profits of Australia’s five biggest producers of the steel input. The iron ore price recently reached its highest level in more than nine years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED

Rio was legally cramped to go harder on execs

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 12-Apr-21

Rio Tinto has attracted much criticism over its generous severance packages in the wake of the Juukan Gorge scandal. However, the head of Rio Tinto’s remuneration committee has told the annual general meeting in London that the board had decided that it was not legally able to cancel the termination payouts of former CEO Jean-Sebastien Jacques and two other senior executives. The issue of Juukan Gorge was not raised by British shareholders, although it is likely to receive attention at the Australian leg of Rio Tinto’s annual general meeting on 6 May.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Rio chair to face Juukan anger

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Original article by Nick Evans
The Australian – Page: 17 : 9-Apr-21

Rio Tinto is expected to incur a backlash against its remuneration report at the London leg of its annual general meeting on 9 April. Outgoing chairman Simon Thompson is likely to be the main target of investors’ wrath in the wake of the scandal over the destruction of ancient indigenous rock shelters at Juukan Gorge in Western Australia. The scandal resulted in the departure of three senior executives – including former CEO Jean-Sebastien Jacques – who will receive lucrative severance payments. Rio Tinto will hold its Australian annual general meeting on 8 May.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Transport costs pivotal to API’s iron ore project

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 7-Apr-21

Chinese steel giant Baowu bought its stake in the Australian Premium Iron project in 2014, when iron ore was fetching around $US100 per tonne. Analysts say the proposed West Pilbara iron ore project should be viable if, as expected, the price of the steel input falls back to this level in coming years. Lachlan Shaw of National Australia Bank adds that the long-delayed project is more likely to proceed if its backers can secure access to other miners’ rail and port infrastructure.

CORPORATES
CHINA BAOWU STEEL GROUP CORPORATION LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB