B08 Metal Ore Mining

BHP’s carbon hard line

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Original article by Hans van Leeuwen, Peter Ker
The Australian Financial Review – Page: 1 & 26 : 24-Jul-19

BHP CEO Andrew Mackenzie has revealed that the resources group will set targets for its so-called scope 3 carbon emissions as part of a broader strategy to reduce its impact on the environment. He says BHP must take a "product stewardship role" with regard to the emissions across its supply chain, including the emissions generated by the buyers of its commodities. Mackenzie also announced that BHP will spend some $US400m on a climate investment program that will aim to decarbonise its global operations.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, RIO TINTO LIMITED – ASX RIO, VICSUPER PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

Rio Tinto to take iron ore exports crown as Vale struggles

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 26 : 24-Jul-19

Rio Tinto and Brazilian rival Vale are both expected to record lower iron ore shipments in 2019 than the previous calendar year. New data shows that Vale exported 138.5 million tonnes of iron ore during the first half of 2019, a decline of 18 per cent year-on-year. Vale expects its shipments to rise in the second half, with full-year exports to be around the midpoint of its guidance of between 307 million and 332 million tonnes. This suggests full-year exports of around 319.5 million tonnes. Rio Tinto in turn expects to ship between 320 million and 330 million tonnes of iron ore for the year.

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

Lawyers probe Rio’s Mongolian maelstrom

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 19-Jul-19

US law firm Hagens Berman Sobol Shapiro has advised that it will investigate the market disclosures of Rio Tinto and Turquoise Hill Resources with regard to the Oyu Tolgoi copper mine in Mongolia. The market capitalisation of Turquoise Hill recently fell sharply after Rio Tinto warned of a blowout in the cost of an underground expansion of the mine. Law firm Baker & McKenzie has previously flagged plans to scrutinise Rio Tinto’s disclosures regarding the project.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED, OYU TOLGOI LLC, HAGENS BERMAN SOBOL SHAPIRO LLP, BAKER AND McKENZIE

BHP flags iron ore output surge

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Original article by Nick Evans
The Australian – Page: 20 : 18-Jul-19

BHP has forecast that its Pilbara iron ore exports for 2019-20 will be within the range of 273 to 286 million tonnes, despite its scheduled maintenance work at Port Hedland. BHP’s Pilbara shipments totalled 71.1 million tonnes in the final quarter of 2018-19, and 270.5 million tonnes for the full year. BHP has also advised that its 2018-19 production costs were in line with previous forecasts of less than $US15 per tonne. Rio Tinto recently indicated that its iron ore production costs for 2019 will be between $US14 and $US15 per tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

Steel mills to the rescue as Rio mines slow

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 17-Jul-19

Rio Tinto has advised that production at its flagship Pilbara iron ore mines totalled 155.7 million tonnes in the first half of 2019, which is eight per cent lower than previously. Pilbara iron ore shipments also fell by eight per cent, to 154.6 million tonnes. Export volumes were affected by factors such as cyclone activity and a fire at Cape Lambert port during the half-year. Rio Tinto received an average price of $US85.30 per tonne, excluding the cost of freight, an increase of 35 per cent compared with the same period in 2018.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, SHAW AND PARTNERS LIMITED

Mining wages hit boom-time highs

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 6 : 15-Jul-19

Research by BDO Remsmart shows that wages for a number of jobs in the mining sector have risen above the peaks seen during the last resources boom. Western Australia in particular is seeing a surge in mining industry wages, as BHP, Rio Tinto and Fortescue Metals Group invest in new iron ore mines. Factors such as stricter rules on the use of foreign labour, declining enrolments in university mining courses and investment in new infrastructure projects on the east coast are also putting upward pressure on wages. The demand for staff has prompted some mining companies to hire WA School of Mines students up to 18 months before they graduate.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BDO REMSMART, CURTIN UNIVERSITY OF TECHNOLOGY. SCHOOL OF MINES

BHP calls for LNG-powered iron ore vessels

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 15-Jul-19

BHP is seeking to reduce the greenhouse gas emissions its products create once they have been acquired by its customers. As part of that effort, it has launched a tender that would see around 10 per cent of its iron ore exports to China transported in ships powered by LNG by around late 2021. BHP executive Rashpal Bhatti notes that LNG can achieve a 25 per cent reduction in greenhouse gas emissions when compared to low sulphur fuel oil.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Rio expands drilling on copper prospect

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Original article by Paul Garvey
The Australian – Page: 17 : 15-Jul-19

Rio Tinto is undertaking further drilling work at its Winu copper discovery in Western Australia’s Paterson Range. Arnaud Soirat, the head of Rio Tinto’s copper division, says the resources giant has identified other sites in the region that could also be drilled in the future. He adds that Rio Tinto’s focus is on value over volume, and that Winu could potentially be developed before the Resolution copper project in the US.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ANTIPA MINERALS LIMITED – ASX AZY, SIPA RESOURCES INTERNATIONAL LIMITED – ASX SRI, ENCOUNTER INVESTMENTS PTY LTD, GREATLAND GOLD PLC, NEWCREST MINING LIMITED – ASX NCM, CITIGROUP PTY LTD

Evolution back in the black

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Original article by Nick Evans
The Australian – Page: 27 : 11-Jul-19

Evolution Mining has advised that its gold output totalled 194,866 ounces in the June quarter, compared with 175,901 in the March quarter, while it had a net cash position of $35.2m at the end of June. It produced 753,001 ounces of gold during 2018-19, at an average all-in sustaining cost of $924 an ounce, while it expects output in 2019-20 to be within the range of 725,000 to 775,000 ounces. Ramelius Resources in turn has reported 2018-19 output of 196,679 ounces.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, RAMELIUS RESOURCES LIMITED – ASX RMS

Iron ore shortage to keep prices elevated

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Original article by Glenda Korporaal
The Australian – Page: 27 : 11-Jul-19

Some analysts have forecast a further pullback in the iron ore price, which has retreated from its recent peak of around $US126 per tonne. National Australia Bank now expects the price of the steel input to average $US92/tonne during 2019 and $US74 in 2020. Meanwhile, Macquarie has indicated that the downturn in iron ore inventories at Chinese ports suggests that it will trade in the $US90s in the near-term.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE GROUP LIMITED – ASX MQG, CHINA IRON AND STEEL ASSOCIATION, VALE SA, BAOWU GROUP