B08 Metal Ore Mining

BHP pegs Venus as nickel’s rising star

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Original article by Nick Evans
The Australian – Page: 20 : 6-Aug-19

Eddy Haegel, the head of BHP’s Nickel West division, addressed the annual Diggers and Dealers conference on 5 August. He says Nickel West’s future still depends on the outlook for the battery market, but BHP is positioning itself to capitalise on what he describes as a "once-in-a-generation opportunity". BHP has commenced mining at its Venus nickel deposit in Western Australia, while it is undertaking further exploration near its existing nickel operations in the state.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, DIGGERS AND DEALERS FORUM

Gold shines on great western front

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Original article by Nick Evans
The Australian – Page: 17 & 18 : 5-Aug-19

The Gruyere gold mine in Western Australia is slated to produce about 300,000 ounces of gold a year over a 12-year mine life. The mine is a joint venture between Australian-listed Gold Road Resources and South Africa-based Gold Fields, with the latter having been brought in to develop and operate the greenfield project. Gold Fields’ other assets in Australia include Agnew, St Ives and Granny Smith mines, and its Australasian executive vice-president Stuart Mathews has downplayed suggestions that it could offload any of them.

CORPORATES
GOLD ROAD RESOURCES LIMITED – ASX GOR, GOLD FIELDS LIMITED, REGIS RESOURCES LIMITED – ASX RRL, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, SILVER LAKE RESOURCES LIMITED – ASX SLR, RAMELIUS RESOURCES LIMITED – ASX RMS, DACIAN GOLD LIMITED – ASX DCN, GASCOYNE RESOURCES LIMITED – ASX GCY

Rio warns aluminium on thin ice

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Original article by Nick Evans
The Australian – Page: 17 & 21 : 2-Aug-19

Rio Tinto has posted an underlying after-tax profit of $US4.9bn for the first half of 2019, and underlying EBITDA of $US10.25bn. The result was underpinned by its iron ore division, whose underlying EBITDA was 33 per cent higher than previously at $US7.5bn. Meanwhile. CEO Jean-Sebastien Jacques has warned that the future of the Gladstone and Newcastle aluminium smelters will be in doubt unless action is taken to address the energy crisis on Australia’s east coast. Rio Tinto shareholders will receive an interim dividend of $US1.51 per share and a special dividend of $US0.61.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PACIFIC ALUMINIUM PTY LTD, OYU TOLGOI LLC

Price spike powers new gold rush

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 44 : 1-Aug-19

Australia’s gold production is expected to reach a record $22bn in 2019-20, amid a surge in the price of the precious metal in local dollar terms. Arete Capital has resumed production at the historic Stawell gold mine in Victoria, which was mothballed in 2016. The private equity firm bought the mine when gold was trading at around $1,600 an ounce, compared with more than $2,000 an ounce at present. Meanwhile, rising output at Kirkland Lake Gold’s Fosterville mine has prompted renewed interest in the state’s gold sector.

CORPORATES
ARETE CAPITAL PARTNERS PTY LTD, KIRKLAND LAKE GOLD LIMITED – ASX KLA, SHAW AND PARTNERS LIMITED, VANECK SECURITIES, AUSTRALIAN BUREAU OF STATISTICS

Iron ore floods Rio Tinto with cash

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Original article by Nick Evans
The Australian – Page: 19 : 1-Aug-19

Macquarie Group forecasts that Rio Tinto will report after-tax earnings of $US5.7bn for the first half of 2019, and EBITDA of $US10.9bn. The investment bank adds that iron ore is likely to account for more than 80 per cent of Rio Tinto’s earnings for the half-year, following a strong rise in the price of the steel input. Macquarie analysts also expect Rio Tinto to announce an interim dividend of $US1.76 per share, which is in line with the consensus forecast of about $US1.78 per share. Some analysts suggest that a special dividend is also possible.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, ALUMINIUM CORPORATION OF CHINA LIMITED

Good news for exports with iron ore set to enjoy another bountiful year

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Original article by Samantha Bailey
The Australian – Page: 25 : 31-Jul-19

Credit rating agency Moody’s Investors Service expects that supply constraints will ensure that the price of iron ore remains high during the rest of 2019 and in 2020. Moody’s has cited factors such as the impact of a tailings dam collapse in Brazil in January and Cyclone Veronica in Western Australia for its revised forecast. The firm had previously expected the iron ore market to be in surplus in 2019.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

BHP opts to sell lower-grade iron ore

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 30-Jul-19

BHP intends to maintain production volumes at its Jimblebar iron ore mine over the next year, as it mines a lower-grade section of the deposit. This will have no impact on the mine’s lump iron ore product, but the iron content of the higher-grade Jimblebar Fines product will fall from 61 per cent to 59.5 per cent during 2019-20. BHP has indicated that it will aim to lift the iron content of Jimblebar Fines above 60 per cent again in 2020-21. The price discount for lower-grade iron ore narrowed in 2018-19 due to supply disruptions.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, DALIAN COMMODITY EXCHANGE

Fortescue expands its base in China

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Original article by Paul Garvey
The Australian – Page: 23 : 26-Jul-19

Fortescue Metals Group has advised that its iron ore shipments totalled 167.7 million tonne in 2018-19, including a record 46.6 million tonnes in the final quarter. Fortescue received an average price of $US65 per tonne during the financial year, an increase of 50 per cent. The pure-play miner has forecast that it will ship between 170 million and 175 million tonnes of iron ore in 2019-20. Meanwhile, Fortescue has opened a new office in China that will allow it to sell smaller volumes of iron ore to customers.

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

Hancock loses stoush over royalties

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Original article by Brad Thompson
The Australian Financial Review – Page: 23 : 25-Jul-19

The Supreme Court of Western Australia has ruled in Wright Prospecting’s favour in the latest round of its dispute with Gina Rinehart’s Hancock Prospecting. The long-running dispute centres on the right to royalties from the Hope Downs iron ore tenements. The court has rejected Hancock’s bid to have Wright Prospecting’s legal action put on hold until the outcome of its appeal against a 2018 court ruling is known.

CORPORATES
HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, SUPREME COURT OF WESTERN AUSTRALIA, COURT OF APPEAL (WESTERN AUSTRALIA)

Rivals baulk at BHP’s carbon push

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Original article by Nick Evans
The Australian – Page: 17 & 27 : 25-Jul-19

Australian Petroleum Production & Exploration Association CEO Andrew McConville says the resources sector should be solely responsible for addressing its scope 3 emissions, and government intervention is not necessary. The issue has been highlighted by BHP’s move to address carbon emissions across its supply chain, including those generated by the buyers of its commodities. Santos CEO Kevin Gallagher has also argued that regulators should not be involved in setting targets for scope 3 emissions.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, SANTOS LIMITED – ASX STO, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, MITSUBISHI CORPORATION, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, SOUTH32 LIMITED – ASX S32, DELOITTE ENERGY TRANSITION, CLIMATE ACTION 100+