B08 Metal Ore Mining

BHP and BlueScope to sink local crews after 17 years

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Original article by Paul Garvey
The Australian – Page: 17 : 16-Jan-19

The Maritime Union of Australia has criticised BHP and BlueScope Steel for opting against renewing contracts to charter two iron ore bulk carriers. The vessels are used to ship iron ore from BHP’s mines in the Pilbara to BlueScope’s Port Kembla steelworks; a BHP spokesman says the contracts are a legacy of BlueScope’s spin-off in 2002. The ships were the last two iron ore vessels to be manned by Australian crews. The MUA says the crews will be replaced by low-paid foreign workers.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, MARITIME UNION OF AUSTRALIA, TEEKAY SHIPPING CORPORATION

Fortescue could benefit from Rio’s port blaze

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

Lower-grade iron ore is currently trading at a discount of about 27 per cent to the benchmark price, compared with 45 per cent a year ago. Peter O’Connor of Shaw & Partners says the discount may narrow further in the wake of a fire at the port of Cape Lambert in Western Australia. Rio Tinto ships about 30 million tonnes of lower-grade iron ore via Cape Lambert, and while it still assessing the damage, it has declared force majeure over shipments from the port. Fortescue Metals Group ships some 170 million tonnes of lower-grade iron ore each year.

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

Gascoyne taps bank to fend off takeovers

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Original article by Paul Garvey
The Australian – Page: 15 : 14-Jan-19

Potential takeover target Gascoyne Resources has appointed Macquarie as its adviser to help it defend any unwanted bids. Gascoyne’s main asset is the 1.3 million ounce Dalgaranga gold project in Western Australia, but Gascoyne has encountered issues with its processing plant and lower-than-expected grades from some pits, while the company has been the subject of management instability in recent times, with the resignation of both MD Mike Dunbar and chairman Ian Murray. Gascoyne advised on 24 December that it expected Dalgaranga to produce between 92,000 and 102,000 ounces of gold in calendar 2019.

CORPORATES
GASCOYNE RESOURCES LIMITED – ASX GCY, MACQUARIE GROUP LIMITED – ASX MQG, SILVER LAKE RESOURCES LIMITED – ASX SLR, DORAY MINERALS LIMITED – ASX DRM, RAMELIUS RESOURCES LIMITED – ASX RMS, EXPLAURUM LIMITED – ASX EXU, APHRODITE GOLD LIMITED, EXCELSIOR GOLD LIMITED, NORTHERN STAR RESOURCES LIMITED – ASX NST, TRIBUNE RESOURCES LIMITED – ASX TBR, RAND MINING LIMITED – ASX RND

BHP silent on reports driver of runaway 268-car iron ore train in Pilbara is pursuing claim of unfair dismissal

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Original article by Stuart McKinnon
The West Australian – Page: Online : 11-Jan-19

BHP has advised that the train driver who was in charge of a Pilbara iron ore train that had to be derailed in November no longer works for the company. However, the resources group has declined to comment on reports that the driver intends to pursue an unfair dismissal case. BHP has indicated that mechanical failure and human error contributed to the incident in which it was forced to deliberately derail the train after it travelled for 50 minutes without a driver.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Resolute weighs up Ravenswood spin-off

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 8-Jan-19

Resolute Mining has advised that its gold production rose by 33 per cent to 73,691 ounces in the December 2018 quarter. Meanwhile, CEO John Welborn says a decision on the Ravenswood gold mine in Queensland will be made in the first half of 2019. Resolute is considering options such as a sale or spin-off for the Queensland mine as the company shifts its geographical focus to Africa. Resolute may also be open to acquiring assets that could be divested following the merger between Barrick Gold and Randgold Resources.

CORPORATES
RESOLUTE MINING LIMITED – ASX RSG, BARRICK GOLD CORPORATION, RANDGOLD RESOURCES LIMITED

No cost surge as Pilbara’s big three plan builds

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 7-Jan-19

NRW Holdings CEO Jules Pemberton says the current iron ore mine construction activity in the Pilbara is different to the boom of 2011-2013. He notes that the new mines being developed by BHP, Rio Tinto and Fortescue Metals Group are to replace existing mines rather than to expand output. Pemberton adds that there are also no signs of an increase in labour costs or a skills shortage in the Pilbara. NRW was recently awarded a $57m contract for work on Fortescue’s Eliwana iron ore mine; the mining and civil contractor is also undertaking work on BHP’s South Flank mine.

CORPORATES
NRW HOLDINGS LIMITED – ASX NWH, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLDING CONTRACTORS PTY LTD

Miners’ shares soar as $A gold price hits record high

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Original article by Paul Garvey
The Australian – Page: 20 : 4-Jan-19

The price of gold in Australian dollar terms reached a record high of more than $1,859 an ounce on 3 January, eclipsing the previous peak of $1,819.44 an ounce in July 2016. The rally in turn boosted the share prices of local gold producers, with Newcrest Mining advancing 4.3 per cent and Evolution Mining, Northern Star Resources and Saracen Mineral Holdings rising to new highs.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION

Rio moves to defer bonus for ex-CEO

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Original article by Paul Garvey
The Australian – Page: 15 : 3-Jan-19

Rio Tinto is seeking to further postpone the payment of Sam Walsh’s last short and long-term incentive bonuses until an investigation into a scandal associated with the Simandou iron ore project is completed. The former CEO was due to receive half of his remaining incentive bonuses at the end of 2018; Rio Tinto had advised in February 2017 that payment of the final bonuses would be deferred. International agencies are investigating Rio Tinto’s payment of $US10.5 million ($15m) to a French consultant in 2011.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN FEDERAL POLICE, GREAT BRITAIN. SERIOUS FRAUD OFFICE, UNITED STATES. DEPT OF JUSTICE, PERTH MINT, AUSTRALIA COUNCIL FOR THE ARTS, MITSUI AND COMPANY LIMITED

Trump makes a year of heavy metal

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Original article by Paul Garvey
The Australian – Page: 15 : 2-Jan-19

Commodity prices fell for the seventh year out of the last 11 during 2018. The prices of metals such as zinc, copper and aluminium in particular fell sharply, although supply constraints resulted in strong gains for both coking and thermal coal. The US-China trade war weighed on commodity markets, and the outlook for 2019 may depend to a large extent on the actions of US President Donald Trump. Daniel Hynes of the ANZ Bank and Glyn Lawcock of UBS are upbeat about the outlook for base metals prices in 2019.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS HOLDINGS PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

BHP class action down to one

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Original article by Ben Butler
The Australian – Page: 15 : 19-Dec-18

The Federal Court has ruled that Phi Finney McDonald’s class action against BHP over the Samarco tailings dam disaster in Brazil can proceed. Rival law firms Maurice Blackburn and Johnson Winter & Slattery had also proposed class actions against the resources group, but Justice Mark Moshinsky expressed a preference for Phi Finney McDonald’s funding model. He also noted that the firm’s case was more advanced in terms of preparation.

CORPORATES
BHP GROUP LIMITED – ASX BHP, PHI FINNEY McDONALD PTY LTD, MAURICE BLACKBURN PTY LTD, FEDERAL COURT OF AUSTRALIA, VALE SA, G&E KTMC FUNDING, HARBOUR FUND IV, ROBBINS GELLER RUDMAN AND DOWD LLP, LOS ANGELES COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION