BHP dumps coal for green energy

Original article by Perry Williams
The Australian – Page: 19 : 22-Oct-19

BHP has secured four contracts to supply renewable energy to its Escondida and Spence copper mines in Chile for 15 years. BHP’s 2019-20 half-year accounts will include a $US780m ($1.14bn) provision associated with the cancellation of existing coal supply contracts. The company estimates that the new contracts will displace about three million tonnes of carbon each year from 2022 and reduce energy prices at the two mines by around 20 per cent. BHP recently committed to spending $US400m over five years to minimise climate risks.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, COAL21, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY

Runaway train set to derail BHP earnings

Original article by Perry Williams
The Australian – Page: 15 & 16 : 23-Jan-19

BHP has advised that it produced 135 million tonnes of iron ore in the first half of 2018-19, with output falling by four million tonnes due to a train derailment in the Pilbara in early November. BHP’s copper output in turn was affected by problems at the Olympic Dam mine in South Australia and the Spencer mine in Chile. Shaw & Partners says BHP can still meet its full-guidance provided it has a strong second half. BHP shares closed 1.3 per cent lower at $32.77 on 22 January.

CORPORATES
BHP GROUP LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, VERTIUM ASSET MANAGEMENT PTY LTD, ORD MINNETT GROUP LIMITED

BHP left holding Chilean mine after deal collapses

Original article by James Thomson
The Australian Financial Review – Page: 23 : 14-Dec-18

Private equity firm EMR Capital will not proceed with a deal to buy BHP Group’s Cerro Colorado copper mine in Chile. EMR has advised that the $US320m ($443m) transaction has been abandoned due to problems in meeting its deadline to secure financing. The deal had been announced in June; EMR recently acquired a majority stake in a copper mine in Zambia.

CORPORATES
BHP GROUP LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, PT ADARO ENERGY TBK

BHP’s copper king looks past volatility

Original article by James Thomson
The Australian Financial Review – Page: 24 : 23-Aug-18

BHP’s Escondida copper mine in Chile had record throughput in 2017-18, while the mine’s underlying EBIT rose by 136 per cent to $US3.3bn. Danny Malchuk, the head of BHP’s Minerals Americas division, has downplayed concerns about a sharp fall in the copper price in the last two months, arguing that BHP’s focus is on the long-term outlook. He says that while global trade tensions have contributed to the pullback in the copper price, the lack of strike action at the world’s major copper mines has also had an impact on prices.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERA ESCONDIDA LIMITADA, SAMARCO MINERACAO SA

EMR Capital buys BHP Chile copper mine for $310 million

Original article by James Thomson
The Australian Financial Review – Page: 13 : 20-Jun-18

BHP Billiton has sold its Cerro Colorado copper mine in Chile to private equity firm EMR Capital for $US230m ($A310m). BHP will also receive $US40m from the sale of inventory from the mine, while a potential additional payment of up to $US50m is linked to the outlook for the copper price. EMR’s co-founder Jason Chang says the firm’s focus is on increasing the mine’s output and its resource base, rather than the copper price. Chang expects EMR to make further acquisitions in the next two years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, ADARO ENERGY

BHP to change gear at Escondida copper

Original article by Matt Chambers
The Australian – Page: 19 & 22 : 19-Mar-18

BHP Billiton has spent $US8 billion over the last six years on improvements to Escondida, the giant copper mine in Chile in which it and Rio Tinto own stakes of 57 per cent and 30 per cent respectively. Escondida is tipped to produce between 1.13 million and 1.23 million tonnes of copper in 2018, and BHP is aiming for annual production of 1.2 million tonnes per annum over the next decade. However, the quality of the copper grade produced by Escondida is expected to decline over this period.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG

BHP commits $3.1bn to Chile copper mine

Original article by Paul Garvey
The Australian – Page: 21 : 18-Aug-17

BHP Billiton will expand its Spence copper mine in Chile at a cost of $US2.46bn ($A3.1bn). BHP had initially estimated in 2015 that expanding the project would cost around $US2.2bn. Dubbed the Spence Growth Option, the project will increase BHP’s annual copper output by about 185,000 tonnes during the first 10 years of the expansion. BHP anticipates an internal rate of return of about 16 per cent from the Spence Growth Option.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION

Strike delays copper mine projects: BHP

Original article by Peter Ker
The Australian Financial Review – Page: 13 & 25 : 6-Apr-17

BHP Billiton executive Daniel Malchuk has advised that a recent 44-day strike at the Escondida copper mine in Chile will postpone completion of a new concentrator and a desalination plant at the mine. Both projects had been slated for completion by June 2017, and the delay could impact on the mine’s output for the 2017-18 financial year. Malchuk has also indicated that production has resumed at Escondida, although it is not yet back to full capacity. He is optimistic that the dispute over a new pay deal at Escondida can be resolved.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERA ESCONDIDA LIMITADA, RIO TINTO LIMITED – ASX RIO, MITSUBISHI CORPORATION, NIPPON MINING AND METALS COMPANY LIMITED, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, MMG LIMITED – ASX MMG, OZ MINERALS LIMITED – ASX OZL

BHP nod to $US200m copper expansion drive

Original article by James Thomson
The Australian Financial Review – Page: 1 & 11 : 5-Jul-16

Resources giant BHP Billiton will increase the capacity of the Los Colorados concentrator at its Escondida copper mine in Chile. Danny Malchuk, the head of BHP’s Minerals Americas division, believes that the project will cost less than the $US200m that has been budgeted. Expansion of the concentrator will allow the Escondida mine to increase annual production by between 150,000 and 200,000 tonnes. The project is slated for completion by mid-2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

Glencore puts Cobar mine up for sale

Original article by Peter Ker
The Australian Financial Review – Page: 16 : 13-Oct-15

Debt-laden Glencore is seeking to offload the Cobar copper mine in central western New South Wales. The mine’s output for the first half of 2015 was 24,800 tonnes of copper concentrate and 239,000 ounces of silver. Glencore’s Lomas Bayas copper mine in Chile has also been put on the market, and an unnamed analyst based in London says neither of the assets are likely to be of interest to major mining groups.

CORPORATES
GLENCORE PLC, BLOOMBERG LP, RIO TINTO LIMITED – ASX RIO, XSTRATA AG, X2 RESOURCES PARTNERS LP