B08 Metal Ore Mining

‘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

BHP to destroy at least 40 Aboriginal sites, up to 15,000 years old, to expand Pilbara mine

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Original article by Lorena Allam, Calla Wahlquist
The Guardian Australia – Page: Online : 11-Jun-20

A proposed expansion of BHP’s South Flank iron ore mine that will result in the destruction of rock shelters and other significant indigenous sites was approved by the Western Australian government on 29 May. This was just days after Rio Tinto attracted global criticism for destroying ancient rock shelters during blasting at its Brockman iron ore mine. WA’s Aboriginal Affairs Minister Ben Wyatt has urged BHP to work with the traditional owners to protect the heritage sites.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF INDIGENOUS AFFAIRS

Iron ore exporters flag $21b tax boost from port

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Original article by Brad Thompson
The Australian Financial Review – Page: 3 : 10-Jun-20

A report produced by ACIL Allen Consulting has assessed the economic contribution of the Port Hedland export hub. It estimates that the port and its supply chain injected some $54bn into the Western Australian economy in 2019 and supported one in every 12 jobs in the state. The report forecasts that iron ore production linked to Port Hedland will top 547.5 million tonnes in 2022-23, compared with 524.9 million tonnes in 2019-20. It also estimates that increasing shipments via Port Hedland would boost government revenue from taxes and royalties by $21bn over the next decade.

CORPORATES
ACIL ALLEN CONSULTING PTY LTD, PORT HEDLAND INDUSTRY COUNCIL, PILBARA PORTS AUTHORITY, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD

Price rises lift Port Hedland iron ore exports

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Original article by Nick Evans
The Australian – Page: Online : 9-Jun-20

Data from the Pilbara Ports Authority shows that iron ore shipments via Port Hedland rose by four per cent year-on-year in May, to 47.8 million tonnes. Australian iron ore producers benefited from a rally in the price of the steel input during May, amid a downturn in stockpiles at Chinese ports as steel mills resumed production. They will also benefit from a court-ordered closure of Vale’s Itabira mining hub due to a coronavirus outbreak. Vale has maintained its revised full-year production guidance of 310-330 million tonnes.

CORPORATES
PILBARA PORTS AUTHORITY, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED, MINERAL RESOURCES LIMITED – ASX MIN, VALE SA