B08 Metal Ore Mining

Riches keep rolling in for Rinehart

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Original article by John Stensholt
The Australian – Page: 22 : 12-Nov-19

Hancock Prospecting posted a net profit of $2.6bn in 2018-19, compared with just $443m in 2016, while its revenue increased from $1.6bn to $8.4bn over the same period. Hancock, which is controlled by mining magnate Gina Rinehart, benefited from a sustained rally in the iron ore price in 2018-19. The Roy Hill iron ore project was a major contributor to Hancock’s earnings for the financial year, with a profit of $1.38bn and revenue of $5.16bn. Rinehart’s wealth was estimated at $13.12bn in March.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD

The $10bn tax company

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Original article by Peter Ker
The Australian Financial Review – Page: 44-45 : 12-Nov-19

BHP’s tax bill in Australia was $US4.72bn ($6.79bn) in 2018-19, compared with $US1.79bn ($2.33bn) two years earlier. BHP contends that when state government royalties on its iron ore and coking coal exports are taken into account, its total economic contribution in Australia was about $US7bn ($10bn) in 2018-19. BHP’s relations with the Australian Taxation Office have improved in recent years, and second commissioner Jeremy Hirschhorn recently praised the resources giant’s annual economic contribution report.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, RIO TINTO LIMITED – ASX RIO, TRANSPARENCY INTERNATIONAL AUSTRALIA

Drought may force mines to shut down

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Original article by Nick Evans
The Australian Financial Review – Page: 17 & 20 : 11-Nov-19

Aeris Resources has warned that lack of sufficient water supply may force the closure of its Tritton copper mine in New South Wales. Aeris has advised that the mine may not have enough water to keep operating beyond February, and it will seek state government approval to access the Nyngan to Cobar pipeline. Aurelia Metals has also indicated that the drought in NSW may result in the loss of its Peak gold and base metals mine’s entire water allocation in early 2020. The mining sector is a major employer in the state’s Cobar region.

CORPORATES
AERIS RESOURCES LIMITED – ASX AIS, AURELIA METALS LIMITED – ASX AMI, GLENCORE PLC, NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, WHITEHAVEN COAL LIMITED – ASX WHC, COBAR SHIRE COUNCIL, AUSTRALIA. BUREAU OF METEOROLOGY

Base metals set to rebound in 2020: Ausbil

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Original article by Nick Evans
The Australian – Page: 18 : 11-Nov-19

The price of copper remains below $US6000 per tonne on the London Metals Exchange, having reached a low of $US5,610/tonne in early September. However, Ausbil portfolio managers are upbeat about the outlook for copper and other base metals in 2020; they say indications that the US-China trade war is stabilising should be enough to prompt manufacturers to begin restocking their raw materials inventory.

CORPORATES
AUSBIL INVESTMENT MANAGEMENT LIMITED, LONDON METAL EXCHANGE LIMITED

BHP chiefs defend its green push

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Original article by Peter Ker, Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 8-Nov-19

BHP held its annual meeting of shareholders in Sydney on 7 November, at which over 27 per cent voted in favour of a resolution that called for the mining firm to quit groups that do not support the Paris climate agreement. The strong vote was despite CEO Andrew Mackenzie saying that industry associations were better able to achieve solutions to global issues than companies acting on their own, while chairman Ken MacKenzie claimed environmentalists should welcome its plan to spend $US400 million on climate change mitigation

CORPORATES
BHP GROUP LIMITED – ASX BHP

Perenti rocked by terror attack in Africa

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Original article by Brad Thompson
The Australian Financial Review – Page: 27 : 8-Nov-19

Mining services company Perenti Global has been caught up in a deadly terrorist attack on a convoy of buses in the West African nation of Burkina Faso. The attack happened around 40 kilometres from Semafo’s Bongou gold mine, with people on the buses including employees of Semafo, Perenti Global’s Africa Mining Services, and other contractors. The attack has left at least 37 dead and 60 wounded, with the Department of Foreign Affairs & Trade saying at this stage it is not aware that any Australians were killed or wounded in the attack. Perenti has not disclosed how many AMS staff were on the buses in the convoy, which was being escorted by military police.

CORPORATES
PERENTI GLOBAL LIMITED – ASX PRN, SEMAFO INCORPORATED

BHP succession once again in the spotlight

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Original article by Nick Evans
The Australian – Page: 20 : 7-Nov-19

BHP CEO Andrew Mackenzie took the helm in May 2013, with his appointment having been announced at the resources giant’s half-year results presentation in February of that year. The position of former CEO Marius Kloppers had already come under scrutiny at BHP’s 2012 annual meeting in Australia; given Mackenzie’s tenure, shareholders at the 2019 annual meeting may be seeking guidance on succession planning. However, Mackenzie’s position is much more secure than Kloppers’ was in 2012.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Independence makes $312m hostile bid

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 5-Nov-19

Nickel miner Independence Group is offering one of its shares for every share in Panoramic Resources, valuing the takeover target at $0.476 per share. Independence MD Peter Bradford says Panoramic had previously rejected several approaches regarded a friendly merger, prompting the hostile bid. Bradford anticipates further consolidation among nickel miners, and he expects the recent rise in the price of nickel to be sustained.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, PANORAMIC RESOURCES LIMITED – ASX PAN, ZETA RESOURCES LIMITED – ASX ZER, BHP GROUP LIMITED – ASX BHP

Rio Tinto could hit iron ore goal in 2022

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 1-Nov-19

The head of Rio Tinto’s iron ore division, Chris Salisbury, has told investors that production at its Koodaideri mine in Western Australia is slated for late 2021. He also said the mine will give Rio Tinto the capacity to ship 360 million tonnes of iron ore from the Pilbara each year. This target was first set in 2013, but to date the most Rio Tinto has shopped from the Pilbara in a single year is 338.2 million tonnes. Analysts expect its Pilbara shipments to total 325.5 million tonnes in 2019.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VUMA FINANCIAL LIMITED

Core strategy will remain: BHP

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Original article by Nick Evans
The Australian – Page: 20 : 30-Oct-19

BHP’s chief transformation officer Jonathan Price will address the IMARC mining conference in Melbourne on 30 October. He will argue that while technology such as automation and big data will have a key role in the mining sector in the future, BHP’s focus will continue to be on large resources projects with long production lives. In contrast, Rio Tinto CEO Jean-Sebastien Jacques recently suggested that big mining companies may shift their focus to developing smaller projects that can upscaled later on.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO