B08 Metal Ore Mining

South32 calls for clear guidance on scope 3

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 14-Feb-20

Diversified miner South32 has posted a 2019-20 interim net profit of $US99m, which is 84 per cent lower than previously. The group’s underlying earnings fell 80 per cent to $US131m and revenue was down 16 per cent due to lower prices for its key commodities. CEO Graham Kerr says South32’s focus is on Scope 1 carbon emissions at present, but he argues that all companies will eventually need to address their Scope 3 emissions. He adds that governments must clarify how planning approvals will take Scope 3 emissions into account.

CORPORATES
SOUTH32 LIMITED – ASX S32

Virus slows Rio Tinto copper sales

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 13-Feb-20

The Oyu Tolgoi copper mine is located in the Khanbogd province, where the Mongolian government has declared a state of emergency due to the coronavirus. Rio Tinto has advised that Mongolia’s efforts to contain the virus’s spread will result in shipments of copper concentrate being delayed. The mine’s output is usually shipped across the border to China via trucks. BHP also recently advised that its copper shipments to China may be delayed, while OZ Mineral has indicated that it has not yet been impacted by the coronavirus outbreak.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL

Vale confirms drop in iron ore exports

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 13-Feb-20

Brazilian iron ore miner Vale now expects output of 63-68 million tonnes in the March quarter, compared with previous guidance of 68-73 million tonnes. The production downgrade has been attributed to factors such as heavy rains, while Vale says its revised forecast does not take into account any impact of the coronavirus. Vale’s problems may bolster demand for Australian iron ore; the sector’s exports volumes are forecast to reach a record $84bn in 2019-20, despite the recent disruption caused by Tropical Cyclone Damien.

CORPORATES
VALE SA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD

BHP could pay out $3b extra cash for investors

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Original article by Luke Housego
The Australian Financial Review – Page: 30 : 12-Feb-20

Macquarie has forecast that BHP will report underlying earnings of $US12.52bn for the first half of 2019-20, which would be 14 per cent higher than previously. Macquarie also expects BHP to announce an interim dividend of $US0.76 per share, while the firm adds that there is potential for a special dividend of up to $US0.40 per share. BHP will release its interim results on 18 February.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MACQUARIE GROUP LIMITED – ASX MQG

Cyclone hits Pilbara iron ore mines

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Original article by Peter Ker
The Australian Financial Review – Page: 4 : 10-Feb-20

Tropical Cyclone Damien has been downgraded to category 1 status after crossing the coast of Western Australia. Iron ore mines in the Pilbara are bracing for heavy rain, with the airport that services Fortescue Metals Group’s Solomon mining hub having received more than 200 millimetres of rain in just 24 hours. Rio Tinto’s iron ore ports at Dampier remained closed on 9 February, although Port Hedland reopened on the previous day.

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

Rio joins Telstra in supplier backflip

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Original article by Jared Lynch, Nick Evans
The Australian – Page: 17 & 20 : 6-Feb-20

Rio Tinto CFO Simon Trott has advised that about 90 per cent of its Australian suppliers will now be paid within 20 days. Businesses with annual turnover of up to $10m will also now be designated as a small supplier, rather than just those which supply up to $1m worth of goods and services to the resources giant each year. Rio Tinto recently shelved its ‘dynamic discounting’ scheme, while Telstra has also reduced its payment terms to just 20 days. Small Business & Family Enterprises Ombudsman Kate Carnell says other large companies should do so.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN

Ports beef up virus protections

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Original article by Peter Ker
The Australian Financial Review – Page: 10 : 6-Feb-20

Australia’s iron ore and coal shipments may face delays due to the coronavirus outbreak. Ports have been advised to prevent Chinese vessels from docking unless they have been at sea for at least 14 days. However, the sailing time between China and Australia’s largest ports can be as little as 10 days. The impact of the virus on exporters has been limited to date, as the outbreak has coincided with the Lunar New Year holiday period. Meanwhile, the Health Department has ordered marine pilots to wear surgical masks and gloves when they board vessels that have come from China.

CORPORATES
AUSTRALIA. DEPT OF HEALTH

Chinese conglomerate isolates 20 workers at Pilbara iron ore mine

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Original article by Brad Thompson
The Australian Financial Review – Page: Online : 5-Feb-20

Twenty workers at Citic Pacific’s Sino Iron magnetite project in Western Australia have been placed in quarantine for 14 days, due to concern about the coronavirus. The Chinese company says the move to isolate the workers is a precautionary measure, as they had visited China since 17 January. The company adds that the health and wellbeing of its employees and contractors is its main priority.

CORPORATES
CITIC LIMITED, SINO IRON PTY LTD, MINERALOGY PTY LTD

Act on climate change or face investor backlash, McKinsey warns CEOs

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Original article by Elouise Fowler
The Australian Financial Review – Page: 16 : 5-Feb-20

McKinsey & Company has released a report which argues that although the mining sector has started taking action to reduce carbon emissions, more needs to be done. The report notes amongst other things that the mining industry’s greenhouse gas reduction targets are still generally well below those required under the Paris climate agreement. The global consultant also says mining companies need to take more action with regard to Scope 3 emissions.

CORPORATES
McKINSEY AND COMPANY

Rio faces new Scope 3 carbon emissions push

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 3-Feb-20

Market Forces will put a resolution to Rio Tinto shareholders which calls for the resources group to set targets for its so-called Scope 3 carbon emissions. More than 100 shareholders have expressed support for the resolution, and a similar resolution in 2019 was backed by over six per cent of Rio Tinto’s shareholders. Rival iron ore miners BHP and Vale have committed to setting targets for reducing their Scope 3 emissions.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MARKET FORCES, FRIENDS OF THE EARTH, BHP GROUP LIMITED – ASX BHP, VALE SA