B08 Metal Ore Mining

Single virus case could shut us down: mine boss

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 7-May-20

The coronavirus pandemic has had less impact on the mining industry than other sectors of the Australian economy. However, Northern Star Resources’ executive chairman Bill Beament has warned against complacency, arguing that a mine would be completely shut down if just one case of the virus were detected at the site. Saracen Mineral Holdings CFO Morgan Ball agrees that it is too soon to relax COVID-19 restrictions in the sector. Meanwhile, major resources groups support the Western Australian government’s plan to step up the testing of fly-in, fly-out workers for the virus.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR

Rio backs green stimulus ahead of activist meeting

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Original article by Nick Evans
The Australian – Page: 15 : 7-May-20

Rio Tinto’s scope 3 emissions will come under scrutiny at the resources group’s Australian annual general meeting on 7 May. A motion will be put to shareholders for Rio Tinto to outline its strategy for reducing scope 1,2 and 3 emissions. Just six per cent of shareholders voted in favour of a similar motion at the 2019 AGM. Meanwhile, Rio Tinto chairman Simon Thompson has supported a push by the Energy Transitions Commission for governments to ramp up investment in green energy as part of the recovery from the coronavirus pandemic.

CORPORATES
TIO2 CORPORATION PTY LTD, ENERGY TRANSITIONS COMMISSION

Full steel ahead for Fortescue as China draws down ore stockpiles

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 6-May-20

Fortescue Metals Group CEO Elizabeth Gaines expects demand for iron ore to remain strong due to China’s urbanisation policy. China produced 234.5 million tonnes of crude steel in the March quarter, which is 1.2 per cent higher than the same period in 2019. Gaines says that any additional economic stimulus in China would further boost demand for steel, and therefore iron ore. Meanwhile, Gaines is confident that Fortescue’s application to increase its export capacity at Port Hedland by 20 per cent will be approved.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Finally a profit for Citic iron ore mine

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Original article by Nick Evans
The Australian – Page: 16 : 5-May-20

The annual report of Citic indicates that the Chinese group’s Sino Iron magnetite project in the Pilbara was profitable for the first time in 2019. The $16bn project benefited from the strong price of iron ore during the year, with its revenue rising by 15 per cent. Mining and processing magnetite is more expensive and uses more energy than traditional iron ore projects, but the fact that Sino Iron has made a profit will give encouragement to other proponents of magnetite, including Fortescue Metals Group.

CORPORATES
CITIC LIMITED, SINO IRON PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, KARARA MINING LIMITED

FMG gives BHP nod at Port Hedland

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 4-May-20

BHP and Fortescue Metals Group are both seeking to increase their iron ore export capacity at Port Hedland, by 14 per cent and 20 per cent respectively. Fortescue CEO Elizabeth Gaines says Port Hedland would be able to cope with increased shipments, although she stresses that applying for extra capacity does not necessarily mean that the iron ore giants will increase production and export volumes. Gaines also expects demand for iron ore to remain strong in China, as the nation’s urbanisation program fuels continued growth in steel production.

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

Fortescue upbeat as cash rolls in

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Original article by Nick Evans
The Australian – Page: 16 : 1-May-20

Fortescue Metals Group has advised that it ended March with a net cash position for the first time since it commenced iron ore exports in 2008. It had a net cash position of $US100m, compared with net debt of $US2.9bn previously. Fortescue’s production report for the March quarter also shows that its shipments rose by 10 per cent to 42.3 million tonnes during the period. It now expects total shipments of up to 177 million for 2019-20; its previous guidance was for export volumes of up to 175 million tonnes.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP aims to lift Pilbara exports

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Original article by Nick Evans
The Australian – Page: 20 : 29-Apr-20

BHP’s iron ore export capacity at Port Hedland is currently 290 million tonnes per annum, but the resources group will seek approval to lift this by up to 40 million tonnes. This could increase BHP’s revenue from its Pilbara operations by around $5bn a year, based on the current iron ore price of around $US80 per tonne. Hayden Bairstow of Macquarie says BHP could increase its Pilbara exports to 300mtpa without the need for ‘material’ capital expenditure. Fortescue Metals Group has also flagged plans to increase its Pilbara export volumes.

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

Right as rain: Evolution sticks to guidance

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 24-Apr-20

Evolution Mining has advised that its gold production fell by three per cent to 165,502 ounces in the March quarter, while it still expects full-year output of about 725,000 ounces. This excludes the contribution of the Red Lake mine in Canada, which it acquired from Newmont Goldcorp. Meanwhile, Evolution has indicated that concerns about water supply at the Cowal mine in drought-affected New South Wales have eased due to recent rainfall and the completion of a water pipeline upgrade.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLDCORP CORPORATION

Chinese demand has BHP optimistic

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Original article by Nick Evans
The Australian – Page: 16 : 22-Apr-20

BHP produced 68 million tonnes of iron ore in the March quarter, a year-on-year increase of four per cent. Production for the first nine months of 2019-20 rose to a record 205 million tonnes. BHP notes that demand for iron ore in China remains strong, but it has flagged a potential double-digit fall in steel production outside of China in 2020. BHP’s quarterly production report also shows that output at its coal mines in Queensland was 16 per cent lower than in the December quarter and seven per cent lower year-on-year.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Miners seek assurance on fuel tax break

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 21-Apr-20

The resources sector is lobbying the federal government not to touch the diesel excise rebate as it looks at ways to repay the cost of the COVID-19 pandemic. The rebate is worth around $2 billion to the resources sector; it is also received by other industries, including fishing and agriculture. Minerals Council of Australia CEO Tania Constable contends that imposing higher taxes to pay for the cost of COVID-19 will harm jobs and curtail growth, while she notes that both the Henry tax review and Treasury are of the view that the fuel tax credit is sound economic policy.

CORPORATES
MINERAL COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY