B08 Metal Ore Mining

Vale pact could deliver more deals for OZ

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 22 : 29-Nov-19

OZ Minerals has exercised an option to acquire the Pantera copper exploration project in Brazil’s Carajas region from Vale. OZ has also acquired an option to buy another two copper projects from Vale, which will in turn transport and market OZ’s copper concentrate in the region. OZ MD Andrew Cole has flagged the possibility of expanding the partnership with Vale. Meanwhile, OZ has advised that construction work at the Pedra Branca copper and gold project in the Carajas region will commence in December.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLDCORP CORPORATION

Australia’s cashed-up gold miners embrace high-risk deals

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 17 & 22 : 29-Nov-19

Evolution Mining is optimistic that all-in sustaining production costs at the Red Lake gold mine in Canada will fall to less than $US1,000 an ounce in three years’ time. Production costs at the mine currently exceed $1,600 an ounce, while gold is trading at $US1,452 an ounce. Evolution’s deal to acquire the mine from Newmont for $US375m ($555m) is part of a growing trend for Australian miners to buy underperforming gold assets with hopes of turning them around.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLD COMPANY, NEWCREST MINING LIMITED – ASX NCM, ST BARBARA LIMITED – ASX SBM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, NORTHERN STAR RESOURCES LIMITED – ASX NST, OCEANAGOLD CORPORATION – ASX OGC, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, IMPERIAL METALS CORPORATION, BARRICK GOLD CORPORATION, ATLANTIC GOLD CORPORATION

Rio to open $1bn Pilbara mine

roymorgansocial Leave a comment

Original article by Nick Evans
The Australian – Page: 27 : 28-Nov-19

Rio Tinto has advised that it will invest $US749m ($1bn) on the Western Turner Syncline 2 expansion at its Tom Price iron ore hub in the Pilbara. Exports are slated to commence in 2021, and the output will replace existing production at other Pilbara mines rather than adding new capacity. Rio Tinto also intends to deploy autonomous haulage trucks at the Western Turner Syncline 2 project.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Henry signals faster use of new tech at BHP

roymorgansocial Leave a comment

Original article by Nick Evans
The Australian – Page: 27 : 28-Nov-19

BHP’s incoming CEO Mike Henry has told a resources technology conference that the mining giant’s priorities will remain unchanged under his leadership. However, Henry has indicated that the deployment of new technologies will be a focus for BHP, which has been slower to roll out technology such as driverless trucks than iron ore rivals Rio Tinto and Fortescue Metals Group.

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

BHP seeks delay in Brazil class action case

roymorgansocial Leave a comment

Original article by Liz Main
The Australian Financial Review – Page: 21 : 27-Nov-19

BHP has asked the Federal Court to postpone a shareholder class action until criminal charges against past and present executives are resolved. Brazilian prosecutors charged eight BHP executives with a range of offences – including intentional homicide – in the wake of the Samarco iron ore tailings dam disaster in 2015. Shareholders subsequently launched a class action against BHP to recover the loss in value of their shares following the disaster. The outcome of the criminal charges is unlikely to be known for at least two years.

CORPORATES
BHP GROUP LIMITED – ASX BHP, SAMARCO MINERACAO SA, FEDERAL COURT OF AUSTRALIA, VALE SA

Rinehart prepares for Roy Hill ore boost

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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