IRON ORE – AUSTRALIA

How the west was formed – new study reveals age of Australia’s ancient iron ore deposits

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Original article by Peter de Kruijff
abc.net.au – Page: Online : 24-Jul-24

Western Australia’s mining industry has been a key source of the nation’s economic wealth, particularly iron ore mines in the Pilbara. A research team has concluded that these iron ore deposits formed between 1.4 and 1.1 billion years ago during the formation of a supercontinent called Rodinia; their findings are based on analysis of drill cores supplied by Rio Tinto from nine deposits in the Pilbara’s Hamersley province. The team’s findings have been published in the Proceedings of the National Academy of Science; lead author Liam Courtney-Davies says the research could assist mining companies in locating high-grade ore resources in the Pilbara.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Big mining dividends to drop on price slump

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Original article by Alex Gluyas
The Australian Financial Review – Page: 27 : 4-Apr-24

The 2023-24 interim dividends of iron ore majors Rio Tinto, BHP and Fortescue exceeded expectations. However, the price of the steel input has shed more than 20 per cent so far in 2024, and Morgan Stanley has warned that payouts from the big miners are likely to fall. The firm notes that BHP’s dividend payout is most at risk, citing factors such as the resources group’s debt position and the potential costs arising from legal action over the Samarco dam disaster in Brazil. Morgan Stanley says Rio Tinto is its top pick in the iron ore sector, while it has an ‘equal weight’ rating on BHP and an ‘underweight’ rating on Fortescue.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE LIMITED – ASX FMG, MORGAN STANLEY AUSTRALIA LIMITED

China visit sees $105 billion iron ore exports on the brink

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Original article by Jamie Seidel
News.com.au – Page: Online : 20-Mar-24

China’s Foreign Minister Wang Yi will visit Australia to hold talks aimed at removing the remaining punitive tariffs on Australian exports. Wang is also expected to push for the easing of restrictions on Chinese investment in Australia, as well as support for China’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. However, the talks have coincided with China’s growing push to reduce its dependence on iron ore exports from Australia. BHP CEO Mike Henry recently warned that Chinese-backed producers’ growing dominance of the nickel market could be replicated in the iron ore sector.

CORPORATES
CHINA. MINISTRY OF COMMERCE, BHP GROUP LIMITED – ASX BHP

FMG to spend $9.2b on switch to renewables

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Original article by Matthew Cranston, Lucas Baird
The Australian Financial Review – Page: 13 : 21-Sep-22

Fortescue Metals Group has outlined an ambitious plan to decarbonise its operations by 2030. Executive chairman Andrew Forrest has advised that Fortescue will invest some $US6.2bn ($9.2bn) between 2024 and 2028 on converting its operations from fossil fuels to renewable energy. He has indicated that annual spending over this period will not exceed 10 per cent of the earnings generated by Fortescue’s flagship iron ore business in any given year. Fortescue expects the investment to generate net operating cost savings of $US818m annually from 2030. The company aims to be carbon-neutral by 2030.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Low-carbon steel’s cost challenges stand in the way of greener Pilbara

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Original article by Peter Ker
The Australian Financial Review – Page: 12 : 25-Nov-21

BHP estimated in 2020 that 72 per cent of the world’s steel mills are blast furnaces, which use iron ore and coking coal. However, they also generate carbon dioxide in the steel-making process, even if the plant is powered by renewable energy. Electric arc furnaces are an alternative to traditional blast furnaces, and use either scrap metal or direct reduced iron as feedstock. Rio Tinto is working on a project to make direct reduced iron using ‘green’ hydrogen rather than methane, which is a greenhouse gas. Rio Tinto has cautioned that converting the world’s steel industry to this process would require massive amount of renewable energy.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Clive Palmer: Federal Govt should put 10 per cent tariff on Australia’s iron ore exports

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Original article by Peter Gleeson
Sky News Australia – Page: Online : 4-Oct-21

United Australia Party chairman Clive Palmer has called on the federal government to impose a 10 per cent tariff on iron ore exports to China. Palmer said the money raised from the tariff would be used to help Australian industries that have been impacted by Chinese tariffs, such as the wine sector. He says he has made an additional one billion tonnes of iron ore available in the Pilbara, with Citic, his Chinese lessee, to be taking up that option.

CORPORATES
UNITED AUSTRALIA PARTY, CITIC LIMITED

A perfect storm is brewing for Australia’s iron ore miners

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Original article by Stephen Bartholomeusz
The Age – Page: Online : 20-Aug-21

A convergence of "China-centric" developments have seen the price of iron ore fall by over 30 per cent since its May peak, and some will have long-term impacts on demand for Australia’s most valuable export commodity. One of these developments is China’s commitment to achieve a peak in its carbon emissions by 2030 and to be net zero by 2060. China’s steel industry accounts for 13 per cent of its emissions, so this is one of the main areas of its focus, while it is also seeking to source new supplies of iron ore.

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Records roll on China iron ore sales

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Original article by Ronald Mizen
The Australian Financial Review – Page: 10 : 23-Jul-21

New figures show that Australia’s iron ore shipments to China rose by $1.1bn to $14.8bn in June, despite the ongoing trade tensions between the two countries. Australia exported some $17.6bn worth of the steel input during June, with China accounting for about 85 per cent of this total. The Australian Bureau of Statistics notes that the iron ore price rose by five per cent during the month. Meanwhile, Australia’s overall exports grew by $2.8bn in June, to $41.2bn; the nation’s goods trade surplus was steady at a record $13.2bn.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Australia’s iron ore miners cashing in

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Original article by Shane Wright
The Age – Page: Online : 21-Dec-20

The federal Department of Industry has revised its export earnings forecasts in response to a surge in the iron ore price. It had forecast in September that the nation’s iron ore producers would boast sales of about $97bn in 2020-21, but this has now been upgraded to $123bn. The forecast for iron ore sales in 2021-22 has in turn been upgraded from $80bn to $95bn. However, thermal coal exports are expected to be lower in 2020-21 due to China’s restrictions on imports from Australia. Meanwhile, the nation’s overall resources and energy exports are now expected to total $278.7bn in 2020-21; this is $22.3bn higher than was forecast in September, but $11.9bn lower than in 2019-20.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Canavan calls for retaliatory levy on iron ore to China

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Original article by Ben Packham
The Australian – Page: 6 : 14-Dec-20

Former resources minister Matt Canavan contends that the federal government should respond to China’s import bans and punitive tariffs by imposing a levy on iron ore exports. Australia ships nearly 900 million tonnes of iron ore to China each year, and Canavan argues that a levy of just one per cent would raise more than $800m annually; this could be used to compensate companies that have been hit by China’s trade sanctions. Canavan notes that iron ore has not been affected by the trade war, as China cannot quickly and easily source an alternative supply.

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