B08 Metal Ore Mining

Iron ore rally tempts marginal miners back

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 20-May-20

Shares in Australian iron ore producers rallied on 19 May, as the price of the steel input approaches $US100 a tonne. The iron ore price has gained about 17 per cent since the end of April, boosting the prospects of marginal iron ore projects as well as the major producers. Nathan River Resources recently received regulatory approval to resume mining at its Roper Bar project in the Northern Territory. It is expected to shortly commence exports of about one million tonnes of iron ore.

CORPORATES
NATHAN RIVER RESOURCES

China pays more for iron ore

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 16 : 19-May-20

The iron ore price has risen by more than 13 per cent since the end of April, and futures pricing suggests that further gains are likely. The price of the steel input has been resilient during the coronavirus pandemic, due to factors such as continued strong demand for iron ore in China and the fact that major producer Brazil has been hit hard by the virus. Citigroup’s analysts expect the continued strong price of iron ore to result in the resources sector paying out $14.4bn in dividends for 2019-20. The banking sector in turn is tipped to pay out $14.7bn.

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

Beijing options limited to Australian iron ore

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Original article by Elouise Fowler
The Australian Financial Review – Page: 7 : 15-May-20

China imported 62 per cent of its iron ore from Australia in 2019, compared to only 21 per cent from Brazil. However, a report in a state-owned Chinese newspaper has raised the possibility that China could replace iron ore from Australia with iron ore from Brazil as part of the growing trade tensions. However, Glyn Lawcock of UBS notes that the global iron ore market is very tight at the moment. Fortescue Metals Group CEO Elizabeth Gaines expects Chinese demand for Australian iron ore to continue to rise.

CORPORATES
UBS HOLDINGS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio boss warns of volatility, nationalism

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 14-May-20

Rio Tinto CEO Jean-Sebastien Jacques has warned that global commodity markets will continue to experience volatility in the wake of the coronavirus pandemic, while global GDP growth will be hit. Jacques says is too soon to know whether there will be a V-shaped economic recovery. He also says the movement of people and goods will be restricted in the wake of the pandemic, while there could be a fundamental shift in global wealth distribution. Jacques noted that Rio Tinto’s mining operations will be affected by an increase in geopolitical tensions in the post-pandemic environment.

CORPORATES
RIO TINTO LIMITED – ASX RIO

China unlikely to target iron ore in virus blame game

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Original article by Sarah Turner
The Australian Financial Review – Page: 27 : 13-May-20

Commonwealth Bank commodity strategist Vivek Dhar does not expect China to reduce imports of Australian iron ore despite the growing trade tensions between the two nations. He contends that China is too reliant on iron ore from Australia, noting that 85 per cent of its iron ore imports are sourced from Australia. Dhar adds that exports of commodities such as coal are at greater risk, as they can be sourced more easily from other countries. Analysts also expect any economic stimulus measures in China to boost demand for steel, and therefore iron ore.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

V-shaped recovery unlikely: BHP

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Original article by Nick Evans
The Australian – Page: 13 : 13-May-20

BHP CEO Mike Henry expects global demand for copper and steel to fall sharply in the wake of the coronavirus pandemic, while he warns that demand for oil may not return to pre-virus levels for at least 18 months. Henry has told a Bank of America conference that a V-shaped economic recovery is now unlikely, except in China, and he has signalled that BHP will further reduce exploration capital expenditure when its 2019-20 full-year results are released.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Big miners pay $40 billion in tax, royalties

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Original article by Tom McIlroy
The Australian Financial Review – Page: 11 : 12-May-20

Deloitte Access Economics has concluded that Australian mining companies paid a combined $39.3bn in taxes and royalties during 2018-19, which is about $8bn higher than previously. The estimate is based on data from the Australian Taxation Office and other sources. Deloitte also estimates that the mining sector has paid about $230 billion in taxes and royalties over the last 11 financial years. The report was produced on behalf of the Minerals Council of Australia.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN TAXATION OFFICE

Win for unions in BHP workplace fight

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 11-May-20

A Fair Work Commission review panel has overturned a decision by deputy president Gerard Boyce to approve two enterprise agreements for employees of BHP’s Operations Services subsidiary. The Construction, Forestry, Maritime, Mining & Energy Union is among four unions that appealed against the December 2019 ruling. National secretary Tony Maher claims that BHP had intended to use the Operations Services business to reduce wages and conditions in the mining sector. The full bench of the FWC will decide whether to approve the disputed enterprise agreements.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIA. FAIR WORK COMMISSION, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

BHP to trial own contact tracing app on sites

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Original article by Nick Evans
The Australian – Page: 16 : 8-May-20

BHP will shortly commence field trials of a coronavirus contact-tracing app that has been developed in-house. BHP will initially trial the app at its mines in Chile, although the app may be rolled out across its global operations. BHP has stressed that employees and contractors can choose not to use the app, and it says data gathered by the app will only be accessed by the company’s health and safety officers. BHP is also encouraging its Australian employees to download the federal government’s COVIDSafe app.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Energy key to recovery, says Rio

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 8-May-20

Rio Tinto CEO Jean-Sebastien Jacques has told the resources group’s Australian annual meeting that its local aluminium assets are "very well run" and high power costs is their main problem. He emphasised the need for a "viable and sustainable solution" to this problem; he added that high energy prices will also be a key issue for the federal government in restarting the domestic economy in the wake of the coronavirus pandemic. Jacques also said it now appears to be ‘business as usual’ in China, which is Australia’s key iron ore export market.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PACIFIC ALUMINIUM PTY LTD