London judges backtrack to revive $9.43-billion Brazil dam lawsuit against mining giant BHP

Original article by
abc.net.au – Page: Online : 28-Jul-21

BHP faces renewed legal action over the collapse of the Samarco iron ore tailings dam in Brazil in 2015, after London’s Court of Appeal ruled that a $9.4bn lawsuit can proceed. A lower court had struck it out the lawsuit by 200,000 claimants in 2020, ruling that the UK legal action was an abuse of process. The Court of Appeal had upheld this ruling in March. BHP has contended that the case should not proceed in the UK as the tailings dam disaster is also subject to legal action in Brazil.

CORPORATES
BHP GROUP LIMITED – ASX BHP, COURT OF APPEAL (GREAT BRITAIN), SAMARCO MINERACAO SA

Vale setback a boon for Australian iron ore producers

Original article by Peter Ker
The Australian Financial Review – Page: 23 : 20-Mar-20

Vale’s iron ore distribution hub in Malaysia will be disrupted by the government’s efforts to contain the coronavirus. Vale expects work at the hub to be suspended until the end of March, which could reduce its iron ore shipments for the first quarter by an additional one per cent. The Brazilian miner had previously advised that its export volumes would be seven per cent lower than previously. The pandemic has affected mining operations worldwide, although it has yet to have any impact on Australia’s iron ore sector.

CORPORATES
VALE SA

Vale confirms drop in iron ore exports

Original article by Peter Ker
The Australian Financial Review – Page: 16 : 13-Feb-20

Brazilian iron ore miner Vale now expects output of 63-68 million tonnes in the March quarter, compared with previous guidance of 68-73 million tonnes. The production downgrade has been attributed to factors such as heavy rains, while Vale says its revised forecast does not take into account any impact of the coronavirus. Vale’s problems may bolster demand for Australian iron ore; the sector’s exports volumes are forecast to reach a record $84bn in 2019-20, despite the recent disruption caused by Tropical Cyclone Damien.

CORPORATES
VALE SA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD

Brazil struggles may prolong iron ore boom

Original article by Peter Ker
The Australian Financial Review – Page: 21 : 24-Jan-20

Brazilian miner Vale will release a market update on 11 February, but several sources have suggested that its iron ore exports so far in January are significantly lower than previously. Vale had flagged lower shipments in the first quarter of 2020, although it has advised that export volumes would rise later in the year. Nevertheless, lower exports from Brazil could see the price of iron ore remain high in the near-term, which would boost the earnings of Australian producers and federal government revenue.

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

BHP seeks delay in Brazil class action case

Original article by Liz Main
The Australian Financial Review – Page: 21 : 27-Nov-19

BHP has asked the Federal Court to postpone a shareholder class action until criminal charges against past and present executives are resolved. Brazilian prosecutors charged eight BHP executives with a range of offences – including intentional homicide – in the wake of the Samarco iron ore tailings dam disaster in 2015. Shareholders subsequently launched a class action against BHP to recover the loss in value of their shares following the disaster. The outcome of the criminal charges is unlikely to be known for at least two years.

CORPORATES
BHP GROUP LIMITED – ASX BHP, SAMARCO MINERACAO SA, FEDERAL COURT OF AUSTRALIA, VALE SA

Slow restart at Samarco will be small beer for Australian miners

Original article by Peter Ker
The Australian Financial Review – Page: 19 : 29-Oct-19

Lachlan Shaw of National Australia Bank says the resumption of production at the Samarco joint venture in Brazil is unlikely to have much impact on Australia’s iron ore exporters. BHP and Vale has been granted environmental approval to resume production in late 2020. Shaw notes that based on the initial production rate that has been flagged, it would take about 10 years for production at Samarco to return to the levels prior to the tailings dam disaster in November 2015.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO

BHP, Vale to resume at Samarco

Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 28-Oct-19

BHP and Vale are hopeful of resuming production at their Samarco joint venture’s Germano iron ore mine in Brazil by late 2020. This follows the granting of a Corrective Operating Licence for the mine by Minas Gerais state’s environmental regulator. The mine has been closed since a tailings dam collapse in November 2015. BHP has indicated that restarting Germano is dependent on Samarco receiving funding for a new filtration plant at the mine.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

Vale’s latest legal blow boosts iron ore stocks

Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 8-May-19

Brazilian miner Vale has advised that its sales of iron ore and pellets in 2019 will be at the lower end of its previous forecast of between 307 and 332 million tonnes. The revised guidance follows a court’s move to reverse its decision to allow Vale to resume production at mines that were affected by a tailings dam collapse in January. Shares in Australian iron ore miners rallied on 7 May, and Peter O’Connor of Shaw & Partners expects further volatility in the price of the steel input in the next several years.

CORPORATES
VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, MOUNT GIBSON IRON LIMITED – ASX MGX

Brazilian closures test iron restraint

Original article by Paul Garvey
The Australian – Page: 27 : 7-Feb-19

UBS analysts are among those to have forecast an iron ore surplus in 2019. However, this is in doubt after a Brazilian court ordered Vale to put production at its Brucutu iron ore mine on hold in the wake of the tailings dam disaster at its Feijao mine. Vale has responded by declaring force majeure over its iron ore shipments. Vivek Dhar of the Commonwealth Bank says the iron ore price could potentially rise above $US100 per tonne following the production halt at Brucutu, whose annual output is 30 million tonnes.

CORPORATES
VALE SA, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Dam disaster fuels surge in iron ore price

Original article by Perry Williams
The Australian – Page: 17 & 20 : 31-Jan-19

Goldman Sachs has upgraded its 2019 forecast for iron ore after the price of the steel input rose 4.4 per cent to $US78.50 ($109) a tonne in response to another tailings dam disaster in Brazil. Goldman Sachs now has a price forecast of $US65 per tonne, compared with $US60 previously. The federal government’s mid-year budget update had forecast that the iron ore price would average $US55 per tonne in 2019. Vale has indicated that its annual iron ore production could be cut by up to 40 million tonnes due to the dam collapse. This would equate to about 10 per cent of its annual output.

CORPORATES
VALE SA, THE GOLDMAN SACHS GROUP INCORPORATED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SHAW AND PARTNERS LIMITED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MACQUARIE GROUP LIMITED – ASX MQG, TUV SUD