B08 Metal Ore Mining

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

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