B08 Metal Ore Mining

Vale fights to meet iron ore guidance

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 4-Jun-20

Macquarie Wealth Management’s analysis of port data shows that BHP, Rio Tinto and Fortescue Metals Group are on track to achieve their iron ore export guidance for 2020. However, Macquarie believes that Brazilian rival Vale will struggle to meet its full-year guidance of 310 million to 330 million tonnes, despite ramping up shipments in the last two weeks. Macquarie estimates that Vale will need to export more than six million tonnes per week to achieve the lower end of its guidance; its weekly shipments have averaged 4.5 million tonnes so far in the June quarter.

CORPORATES
BHP GROUP LIMITED – ASX BHP,RIO TINTO LIMITED – ASX RIO,FORTESCUE METALS GROUP LIMITED – ASX FMG,VALE SA,MACQUARIE WEALTH MANAGEMENT

Fortescue facing massive compo bill

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Original article by Brad Thompson
The Australian Financial Review – Page: 3 : 30-May-20

The High Court has rejected Fortescue Metals Group’s bid to overturn a previous Federal Court ruling in favour of the Yindjibarndi Aboriginal Corporation. The case centred on the traditional owners’ native title claim over some 2,700 sq km of land in Western Australia’s Pilbara region; the land in question contains Fortescue’s Solomon iron ore mining hub. The YAC is now expected to seek compensation from Fortescue; this is likely to comprise a percentage of Fortescue’s revenue from iron ore mining in WA.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, YINDJIBARNDI ABORIGINAL CORPORATION, HIGH COURT OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA

Rio Tinto blasting of Juukan Gorge Indigenous site prompts call for heritage protections

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Original article by Toby Hussey, Karen Michelmore, Holly Ferguson
abc.net au – Page: Online : 29-May-20

Rio Tinto recently destroyed two ancient rock caves in Western Australia’s Pilbara region as a result of blasting activity. It had secured permission for the blasting in 2013 under section 18 of the Aboriginal Heritage Act, which allows landowners to seek exemption from laws that ban work that is likely to impact Aboriginal sites. WA Mining and Pastoral Region MP Robin Chapple has called on Aboriginal Affairs Minister Ben Wyatt to review all approved Section 18 notices following the destruction of the caves. Chris Salisbury, the CEO of iron ore at Rio Tinto, says the company takes cultural heritage "very seriously".

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

Iron ore price surge set to boost WA budget amid Brazil coronavirus crisis and Chinese demand

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Original article by James Carmody
abc.net.au – Page: Online : 29-May-20

The resilience of the iron ore price may provide some relief for the Western Australian government amid growing concern that the state faces a recession. Treasurer Ben Wyatt has indicated that mining royalties could be higher than forecast, which will help to offset a decline in the state’s revenue from other sources. WA’s iron ore industry has benefited from factors such as lower output in Brazil and the state’s closer proximity to China. Meanwhile, the remoteness of WA’s iron ore mines has traditionally been seen as a disadvantage, but it has been regarded as a positive during the coronavirus pandemic.

CORPORATES
WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE

Boom times back for iron ore

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Original article by Nick Evans
The Australian – Page: 13 & 20 : 22-May-20

Adrian Prendergast of Morgans Financial says continued strong demand from China could see the iron ore price rise above $US120 a tonne. Reduced output by Brazilian iron ore group Vale is also likely to boost the price of the steel input; Prendergast notes that Vale’s shipments have totalled just 91 million tonnes so far in 2020, and it will have to ramp up production to meet its revised full-year guidance of 310 to 330 million tonnes. Meanwhile, Australian iron ore miners have downplayed the impact of China’s new rules for inspecting iron ore imports, stressing that they had been planned for some time and were implemented after extensive consultation.

CORPORATES
MORGANS FINANCIAL LIMITED, VALE SA, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

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