B08 Metal Ore Mining

Elizabeth Gaines – the driving force behind Fortescue Metals Group

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Original article by Rachel Pupazzoni
abc.net.au – Page: Online : 29-Jun-20

Pure-play iron ore miner Fortescue Metals Group is seeking to diversify its operations under current CEO Elizabeth Gaines, who took the helm in 2018. This could include exploring for minerals such as copper and gold in South America and hydrogen in Western Australia. Gaines grew up in Halls Creek in the Kimberley region of WA, which has a large indigenous population. Her father was a local school headmaster, who actively sought to ensure that indigenous people were integrated into the broader community. Fortescue founder Andrew Forrest adopted a similar policy of full integration at the world’s fourth-biggest iron ore miner, where indigenous people account for 15 per cent of its Pilbara workforce.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Resources exports to turn south

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Original article by Perry Williams
The Australian – Page: 13 & 16 : 29-Jun-20

The federal government expects Australia’s mining and energy export earnings to fall 10 per cent to $263bn in 2020-21, after rising to a record $293bn in the 2019-20 financial year. The Department of Industry, Science, Energy & Resources has advised that iron ore export earnings are likely to have met its forecast of $100bn in 2019-20, given the resilience of the steel input’s price during the coronavirus pandemic. The department expects gold export earnings to reach a record $32bn in 2020-21, although revenue from LNG and coal exports is forecast to fall.

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

Iron ore exports to China at risk

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Original article by Michael Smith
The Australian Financial Review – Page: 14 : 26-Jun-20

Chinese research firm MySteel states that China’s demand for steel fell by between five and six per cent in the first half of 2020, but should improve in coming months with more infrastructure projects being initiated. MySteel’s chief information officer Xu Xiangchun says Chinese steel mills might look to alternative sources for iron ore if there is a perception among the Chinese public that Australia is ‘difficult’, while China Metallurgical Industry Planning and Research Institute president Li Xinchuang says it is important that China diversifies its iron ore supplies.

CORPORATES
MYSTEEL.COM LIMITED, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE

‘Gushing cash’: iron ore miners a yield hunter favourite

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Original article by William McInnes
The Australian Financial Review – Page: 29 : 24-Jun-20

The price of iron ore has risen by nearly 40 per cent since the start of 2020, and it peaked at more than $US100 a tonne in May amid supply disruptions in Brazil. Dion Hershan of Yarra Capital Management and Peter Gardner of Plato Investment Management are both bullish about BHP, Rio Tinto and Fortescue Metals Group. They cite factors such as the major iron ore producers’ strong cash flows and high dividend yields. However, Romano Sala Tenna of Katana Asset Management says they do not offer compelling value, although he says the sector is still appealing compared with the rest of the market.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, YARRA CAPITAL MANAGEMENT, PLATO INVESTMENT MANAGEMENT LIMITED, KATANA ASSET MANAGEMENT LIMITED

Big miners back a greener future

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Original article by Geoff Chambers
The Australian – Page: 1 & 6 : 22-Jun-20

The Minerals Council of Australia will release details of a three-year climate action plan on 22 June, as well as endorsing the Paris agreement. The MCA’s climate plan includes the use of renewable energy and electric vehicles at mine sites, and it has been put together in response to a climate change backlash from fund managers and shareholders of MCA member companies. As to the issue of zero net emissions targets, MCA CEO Tania Constable says there is no set sector-wide deadline, with member companies having their own timeframes.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

BHP buy bolsters nickel operation

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Original article by Nick Evans
The Australian – Page: 15 : 22-Jun-20

BHP is believed to have paid Norilsk Nickel almost $US30m for the Honeymoon Well nickel project in Western Australia. The deposit is estimated to contain about 1.2 million tonnes of nickel; the deal demonstrates BHP’s commitment to the commodity and its Nickel West business. BHP will also shortly resume underground mining at its Leinster project. The nickel price has rebounded from a low of around $US11,000 a tonne in March to nearly $US13,000 a tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NORILSK NICKEL

BHP taps CSL’s Lamont for Beaven role

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 18-Jun-20

BHP has advised that David Lamont will succeed Peter Beaven as chief financial officer in December. Lamont has been CFO of listed biotechnology group CSL since 2016, and he was previously the CFO of mining company MMG. Beaven will remain at BHP until early 2021 during a transition phase. Macquarie Group notes that BHP generally appoints internal candidates to senior executive roles. Macquarie has retained its ‘outperform’ rating on BHP.

CORPORATES
BHP GROUP LIMITED – ASX BHP, CSL LIMITED – ASX CSL, MMG LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

Fortescue fast-tracks carbon-cutting plan

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Original article by Nick Evans
The Australian – Page: 15 : 17-Jun-20

Fortescue Metals Group has announced a revised target of 2040 to achieve net-zero operational carbon emissions. The pure-play iron ore miner also aims to reduce its scope 1 and scope 2 emissions from existing operations by 26 per cent over the next decade. However, Fortescue has not set any emission reduction targets for its Iron Bridge magnetite project, advising that it will outline separate targets for the project when it becomes operational in mid-2022. Fortescue continues to resist setting scope 3 emission reduction targets.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio set indigenous precedent at Argyle

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Original article by Victoria Laurie
The Australian – Page: 5 : 16-Jun-20

Professor Ciaran O’Faircheallaigh of Griffith University says a clause in Rio Tinto’s agreement with traditional owners regarding the Argyle diamond mine could be used to protect heritage sites in the Pilbara. The agreement signed in 2005 ensures that Rio Tinto cannot use section 18 of the Aboriginal Heritage Act to destroy sites that are of cultural significance to indigenous people. Rio Tinto’s recent blasting that destroyed ancient rock caves at its Brockman mine had been approved under section 18 in 2013.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GRIFFITH UNIVERSITY

Heritage site row forces BHP to hold fire on $5b project

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 & 22 : 12-Jun-20

BHP has halted plans to destroy indigenous heritage sites as part of its development of the US3.6 billion ($5.2 billion) South Flank iron ore mine in Western Australia. The mine is slated to produce 80 million tonnes of ore per annum, with the WA government having given BHP permission to proceed with destruction of the sites in May. BHP has indicated that it will not disturb any of the sites in question until it has had more talks with the Banjima people. The traditional owners had welcomed the opportunities afforded by the development of the South Flank mine when a comprehensive agreement on its development was signed in 2015.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO