B08 Metal Ore Mining

Iron ore to defy probe threat

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Original article by Nick Evans
The Australian – Page: 13 & 19 : 16-Dec-20

Shares in Australia’s major iron producers retreated on 15 December in response to the China Iron & Steel Association’s call for regulatory intervention to address the rising iron ore price. However, resources analysts expect the iron ore price to remain high in the near-term, due to continued strong demand for steel in China. Lyndon Fagan of JP Morgan expects the benchmark price to average about $US140 a tonne in the March 2021 quarter and $US126 a tonne for the calendar year.

CORPORATES
JP MORGAN AUSTRALIA LIMITED

Rio head’s trip to heal Juukan Gorge wounds

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 2-Dec-20

A Rio Tinto spokesman has confirmed that chairman Simon Thompson has met with members of the Puutu Kunti Kurrama and Pinikura people in Western Australia. Thompson was forced to quarantine for 14 days on arrival from the UK, before visiting the site where ancient indigenous rock shelters at Juukan Gorge were destroyed by Rio Tinto’s blasting program. The federal government is undertaking a parliamentary inquiry into the incident, which resulted in the departure of three senior Rio Tinto executives, including CEO Jean-Sebastien Jacques.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Sandfire bets on new Botswana mine

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 2-Dec-20

Sandfire Resources will proceed with the development its T3 copper mine in Botswana, with production slated to commence in early 2023. Sandfire will initially produce about 30,000 ounces of a gold a year at T3, which could increase to at least 50,000 tonnes annually via the nearby A4 deposit. The T3 project will offset the looming loss of copper production from Sandfire’s ageing DeGrussa mine in Western Australia, which is nearing the end of its mine life. However, Sandfire plans to begin gold production at DeGrussa.

CORPORATES
SANDFIRE RESOURCES LIMITED – ASX SFR

Iron ore miners dig in for fight over capacity at Port Hedland

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 23-Nov-20

Iron ore producers Mineral Resources, BHP, Fortescue Metals Group and Hancock Prospecting have been asked to contribute to an independent review to determine the maximum capacity of Port Hedland. The Western Australian government wants the review to be completed by December, and it comes after the mining companies rejected the government’s call for a $10 billion outer harbour to be constructed at Port Hedland. Growth plans outlined by the four companies amount to output of at least 690 million tonnes per annum, while the government believes that Port Hedland’s maximum capacity could be pushed to around 650 million tonnes.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, HANCOCK PROSPECTING PTY LTD

Forrest unveils ambitious Fortescue renewables plan

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Original article by Brad Thompson
The Australian Financial Review – Page: 14 & 18 : 12-Nov-20

Fortescue Metals Group has outlined plans to become a major player in the energy sector via a massive investment in renewables. Fortescue chairman Andrew Forrest had told the pure-play iron ore miner’s AGM that it will initially aim to produce 235 gigawatts of energy via renewables, as it transition to an "renewables and resources" company. Meanwhile, CEO Elizabeth Gaines has stressed the importance of Australia’s trading relationship with China.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Turquoise Hill rebels against Rio’s pressure

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 6-Nov-20

Canada-based Turquoise Hill Resources has commenced arbitration proceedings against Rio Tinto over a disagreement regarding financing options for the expansion of the Oyu Tolgoi copper mine in Mongolia. Rio Tinto has pushed for Turquoise Hill to finance a cost blowout at the project via a capital raising rather than by taking on additional debt. Rio Tinto has a 50.79 per cent stake in Turquoise Hill.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED

Gina Rinehart’s wealth soars as Hancock Prospecting reports $4b profit

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Original article by Nick Toscano
The Sydney Morning Herald – Page: Online : 5-Nov-20

Hancock Prospecting has reported a 2019-20 after-tax profit of $4bn, compared with $2.6bn previously. The company benefited from the strong price of iron ore during the financial year. Hancock’s iron ore assets include the Roy Hill mine and a 50 per cent stake in the Hope Downs joint venture. Hancock also controls Atlas Iron, which operates the Mt Webber iron ore mine in the Pilbara. Meanwhile, Hancock has paid a maiden dividend of $475m and repaid a $US7.2bn ($10.1bn) debt some four months ahead of schedule.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED

Big investors challenge miners over traditional owner consent

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 30-Oct-20

AustralianSuper and CBus are among the Australian investor signatories to an open letter to the world’s major mining companies. The letter was written in response to Rio Tinto’s destruction of ancient indigenous rock shelters at Juukan Gorge and subsequent revelations regarding its deficiencies in managing the controversy. The letter asks mining companies to assess the "genuineness" of the consents they have secured from traditional owners, and asks how they are managing cultural heritage risks. Apart from Rio, recipients of the letter with Australian mines include BHP, Newcrest, Evolution Mining, Fortescue Metals Group and OZ Minerals.

CORPORATES
AUSTRALIANSUPER PTY LTD, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, SOUTH32 LIMITED – ASX S32, NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR

South32 aims for next mine to be carbon-neutral

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 28-Oct-20

Diversified miner South32 may aim for its new Hermosa mine in Arizona to be carbon neutral from the outset. Initial production at the zinc, lead and silver project is some years away, and South32 MD Graham Kerr notes that it is much easier to build a new mine that is carbon neutral than to retrofit an existing one to solely use renewable energy. South32 has commenced discussions with energy utilities about supplying electricity to the mine, and Kerr says it could potentially be powered completely or almost only via renewables.

CORPORATES
SOUTH32 LIMITED – ASX S32

OZ Minerals adds glowing copper to golden outlook

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Original article by Nick Evans
The Australian – Page: 19 : 23-Oct-20

OZ Minerals produced 23,873 tonnes of copper in the September quarter, compared with 24,577 tonnes in the three months to June. Gold output also fell slightly, to 66,746 ounces. OZ has upgraded its full-year guidance for gold production to between 242,000 and 259,000 ounces, with production at its Prominent Hill mine in South Australia expected to be 10,000 to 15,000 ounces higher than previously forecast. Full-year copper production is expected to be in line with earlier guidance. OZ shares closed 5.3 per cent higher at 15.97 on 22 October.

CORPORATES
OZ MINERALS LIMITED – ASX OZL