B08 Metal Ore Mining

Rinehart prepares for Roy Hill ore boost

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Original article by Nick Evans
The Australian – Page: Online : 27-Nov-19

A wet-high intensity magnetic separation plant at Gina Rinehart’s Roy Hill iron ore mine in the Pilbara will increase its production by 4-5 million tonnes a year. This will put the project on track to lift its annual export capacity to 60 million tonnes. The plant is slated to be fully operational by mid-2020 and will extend the life of the Roy Hill project by allowing more iron ore to be recovered from wet tailings and blended with lower-grade ore.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MARUBENI CORPORATION, POSCO, CHINA STEEL CORPORATION

High energy prices force Rio to the table

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Original article by Perry Williams
The Australian – Page: 17 & 20 : 26-Nov-19

The future of Rio Tinto’s Tomago, Boyne and Bell Bay aluminium smelters in Australia remains under scrutiny amid high energy prices and weak demand for aluminium. CEO Jean-Sebastien Jacques notes that energy costs accounts for a third of the company’s cost structure, adding that energy costs in Australia are very high by global standards. He says Rio Tinto is holding talks with governments at federal and state level regarding energy costs. The future of Alcoa’s Portland smelter in Victoria is also uncertain, with a state government subsidy due to expire in 2021.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCOA OF AUSTRALIA LIMITED, CSR LIMITED – ASX CSR, RUSAL

Degrading ore body adds to Citic’s woes

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Original article by Nick Evans
The Australian – Page: 19 : 25-Nov-19

China-based Citic has declined to comment on the likely cost of proposed changes to the processing plant at its Sino Iron project in the Pilbara. A decline in the quality of the project’s iron ore has prompted Citic to undertake a trial program which would entail using different equipment to process ore on one of the facility’s six production trains. The cost of the trial program is believed to be minimal, although overhauling the entire plant could prove to be expensive. Meanwhile, Citic is awaiting a court ruling in the latest round of its royalties dispute with businessman Clive Palmer.

CORPORATES
CITIC LIMITED, SINO IRON PTY LTD, HIGH COURT OF AUSTRALIA

How BHP’s chairman tamed Elliott Management

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Original article by Peter Ker, James Thomson
The Australian Financial Review – Page: 13 & 18 : 25-Nov-19

BHP chairman Ken MacKenzie has stressed the importance of engaging with activist investors in a professional manner, rather than taking a defensive stance. He adds that an activist investor will usually be well prepared before they make contact with a company that they are targeting, and they will almost certainly already be a shareholder. US-based activist hedge fund Elliott Management remains on BHP’s share register several years after its unsuccessful campaign for a restructuring of the resources giant. MacKenzie has described Elliott as "a terrific shareholder".

CORPORATES
BHP GROUP LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, TRIBECA INVESTMENT PARTNERS PTY LTD

Gaines proves her mettle

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Original article by Glenda Korporaal
The Australian – Page: 18 : 21-Nov-19

Fortescue Metals Group CEO Elizabeth Gaines is ranked second in Fortune magazine’s 2019 list of the world’s most successful business leaders. Gaines is the first woman to make the annual list. Fortune notes that the pure-play iron ore miner delivered 263 per cent profit growth and revenue growth of 45 per cent in 2018-19, with both metrics rising to record levels in Gaines’ first full financial year at the helm. Meanwhile, Fortescue has achieved a total return of 90 per cent since Gaines was appointed in February 2018, increasing its market value to around $US20bn ($29.4bn).

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Saracen bets $1.1b on gold mine

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Original article by Peter Ker, Brad Thompson
The Australian Financial Review – Page: 16 : 19-Nov-19

Saracen Mineral Holdings MD Raleigh Finlayson believes that gold production at Kalgoorlie’s Superpit will continue for many years, noting that much of the mineralisation to the south of the mine has yet to be explored. Saracen will fund its $1.1bn acquisition of Barrick Gold’s 50 per cent stake in the mine via a $796m capital raising and a $450m debt facility. The gold price was trading at around $US1,467 an ounce on 18 November.

CORPORATES
SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, VAN ECK ASSOCIATES CORPORATION, WROXBY PTY LTD

Saracen goes for gold with $1bn swoop on Super Pit half-stake

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Original article by Perry Williams, Nick Evans
The Australian – Page: 17 & 18 : 18-Nov-19

Sources have suggested that Saracen Mineral Holdings will seek to tap investors for more than $600m to help finance the acquisition of Barrick Gold’s 50 per cent stake in the Super Pit mine in Western Australia. Final bids for the stake were lodged on 15 November, and Barrick is expected to shortly announce Saracen as the successful bidder. The sale price is believed to exceed $1bn. Newmont Goldcorp is expected to seek a buyer for its 50 per cent stake in the gold mine.

CORPORATES
SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION, NEWMONT GOLDCORP, NORTHERN STAR RESOURCES LIMITED – ASX NST

BHP’s new CEO Mike Henry vows to accelerate productivity push

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Original article by Nick Toscano, Colin Kruger
Brisbane Times – Page: Online : 14-Nov-19

BHP CEO Andrew Mackenzie will step down at the end of 2019 after more than six years in the role. He will be succeeded by mining industry veteran Mike Henry, who will receive a base salary of $US1.7m ($2.5m). Henry, who has been the head of BHP’s Australian minerals division since 2016, says he will spend the next 45 days holding meetings with BHP staff across its global operations. Henry was regarded as a leading internal candidate to succeed Mackenzie.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Rio workers exposed to toxic gas

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 14-Nov-19

Rio Tinto was issued with a prohibition notice on 21 October, after workers at the Tom Price iron ore hub in the Pilbara were exposed to a toxic gas in September. Western Australia’s Department of Mines, Industry Regulation & Safety ordered the temporary closure of the open pit and required Rio Tinto to improve monitoring systems and safety procedures at the site. Rio Tinto has taken remedial action and advised that the incident will not affect its 2019 output from the Pilbara. Production at the Tom Price hub began in 1966.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY

Rio knew of project woes, UK court told

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Original article by Peter Ker
The Australian Financial Review – Page: 17 & 20 : 13-Nov-19

Rio Tinto advised earlier in 2019 that the underground expansion of the Oyu Tolgoi copper mine in Mongolia could cost up to $US1.9 billion more than previously forecast. It also indicated that the expansion project may take up to 30 months longer than expected to complete. However, a former general manager at the mine has claimed that he raised concerns about a blowout in the cost and completion date for the expansion in July 2018. He has filed an unfair dismissal claim against Rio Tinto in the UK.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GREAT BRITAIN. EMPLOYMENT TRIBUNAL, TURQUOISE HILL RESOURCES LIMITED