IRON MINES AND MINING – AUSTRALIA

Iron ore surge a $100b elixir for coronavirus

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 21 : 9-Jun-20

The rally in the price of iron ore to more than $US100 a tonne will boost federal government revenue by about $2.3bn. The 2019-20 Budget forecasts were based on the iron ore price averaging about $US62 when shipping costs are included, but it is currently averaging more than $80 a tonne. Australia’s export revenue from iron ore is set to top $100bn in 2019-20, eclipsing the previous annual record of $76bn in 2018-19. Meanwhile, shares in Australia’s three major iron ore producers have rallied since the end of March, and investors are set to receive big dividend payouts for the financial year.

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

Australia relaxed over China’s changes to iron ore export rules, but war of words goes on

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Original article by Ben Doherty
The Guardian Australia – Page: Online : 22-May-20

BHP and Fortescue Metals Group have welcomed China’s decision to relax its inspection rules for iron ore shipments. From 1 June, customs officials will only inspect batches of iron ore if this is requested by the importer or trader; all shipments were previously subject to mandatory inspection on arrival in China. Minerals Council of Australia CEO Tania Constable says the new customs procedures recognise the high quality of Australian iron ore. However, the Chinese media has warned that growing trade tensions could potentially hit Australia’s iron ore exports. Australia supplies 62 per cent of China’s iron ore.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERALS COUNCIL OF AUSTRALIA

Iron ore rally tempts marginal miners back

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 20-May-20

Shares in Australian iron ore producers rallied on 19 May, as the price of the steel input approaches $US100 a tonne. The iron ore price has gained about 17 per cent since the end of April, boosting the prospects of marginal iron ore projects as well as the major producers. Nathan River Resources recently received regulatory approval to resume mining at its Roper Bar project in the Northern Territory. It is expected to shortly commence exports of about one million tonnes of iron ore.

CORPORATES
NATHAN RIVER RESOURCES

Beijing options limited to Australian iron ore

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Original article by Elouise Fowler
The Australian Financial Review – Page: 7 : 15-May-20

China imported 62 per cent of its iron ore from Australia in 2019, compared to only 21 per cent from Brazil. However, a report in a state-owned Chinese newspaper has raised the possibility that China could replace iron ore from Australia with iron ore from Brazil as part of the growing trade tensions. However, Glyn Lawcock of UBS notes that the global iron ore market is very tight at the moment. Fortescue Metals Group CEO Elizabeth Gaines expects Chinese demand for Australian iron ore to continue to rise.

CORPORATES
UBS HOLDINGS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG

China unlikely to target iron ore in virus blame game

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Original article by Sarah Turner
The Australian Financial Review – Page: 27 : 13-May-20

Commonwealth Bank commodity strategist Vivek Dhar does not expect China to reduce imports of Australian iron ore despite the growing trade tensions between the two nations. He contends that China is too reliant on iron ore from Australia, noting that 85 per cent of its iron ore imports are sourced from Australia. Dhar adds that exports of commodities such as coal are at greater risk, as they can be sourced more easily from other countries. Analysts also expect any economic stimulus measures in China to boost demand for steel, and therefore iron ore.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Chinese demand has BHP optimistic

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Original article by Nick Evans
The Australian – Page: 16 : 22-Apr-20

BHP produced 68 million tonnes of iron ore in the March quarter, a year-on-year increase of four per cent. Production for the first nine months of 2019-20 rose to a record 205 million tonnes. BHP notes that demand for iron ore in China remains strong, but it has flagged a potential double-digit fall in steel production outside of China in 2020. BHP’s quarterly production report also shows that output at its coal mines in Queensland was 16 per cent lower than in the December quarter and seven per cent lower year-on-year.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Records to fall as miners defy crisis

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Original article by Dennis Shanahan, Paul Garvey
The Australian – Page: 1 & 4 : 13-Apr-20

Factors such as a resilient iron ore price and a rally in the price of gold have prompted expectations that the value of Australia’s resources exports will top $$299bn in 2019-20. This is $18bn higher than was forecast in December. The nation has exported $65.4bn worth of iron ore since 1 July, including $13.9bn in the first two months of 2020. Iron ore for delivery to China is trading at almost $US80 per tonne, compared with the Treasury’s forecast of $US55 a tonne. The resources and energy sector is largely continuing to operate during the pandemic.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Rio Tinto says China shows growing iron ore appetite

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 22 : 8-Apr-20

The head of Rio Tinto’s iron ore division, Chris Salisbury, notes that Chinese demand for the steel input remained strong while the nation was contending with the coronavirus earlier in 2020. He adds that China’s steel stockpiles have started to fall and Rio Tinto’s order books are full. Chinese steel mills buy more than 70 per cent of Rio Tinto’s iron ore, and China accounted for 51.3 per cent of the resources group’s revenue in 2019. Australia’s iron ore exports are forecast to top $101bn in 2019-20.

CORPORATES
RIO TINTO LIMITED – ASX RIO

China steel stockpiles a worrying sign

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Original article by Simon Evans, Peter Ker
The Australian Financial Review – Page: 16 : 3-Mar-20

There are reports of growing stockpiles of steel in China, which accounts for around half of the world’s production. Stockpiles have increased because construction companies and other steel users in China have been in partial shutdown due to the coronavirus, and the growing stockpiles have sparked concern of a knock-on effect to Australian iron ore miners such as Fortescue Metals Group and BHP. However, Fortescue CEO Elizabeth Gaines says the coronavirus has not impacted on its shipping schedule at this stage, while she notes that Chinese steel mills are still operating.

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

Ports beef up virus protections

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Original article by Peter Ker
The Australian Financial Review – Page: 10 : 6-Feb-20

Australia’s iron ore and coal shipments may face delays due to the coronavirus outbreak. Ports have been advised to prevent Chinese vessels from docking unless they have been at sea for at least 14 days. However, the sailing time between China and Australia’s largest ports can be as little as 10 days. The impact of the virus on exporters has been limited to date, as the outbreak has coincided with the Lunar New Year holiday period. Meanwhile, the Health Department has ordered marine pilots to wear surgical masks and gloves when they board vessels that have come from China.

CORPORATES
AUSTRALIA. DEPT OF HEALTH