IRON ORE – WESTERN AUSTRALIA

Fortescue says $2.3b trumps Aboriginal voice in Parliament

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 26-Jun-19

Fortescue Metals Group CEO Elizabeth Gaines says the pure-play iron ore miner favours "practical" measures to address disadvantage in Aboriginal communities rather than supporting the proposal for an indigenous voice to Parliament. Fortescue announced on 25 June that it has awarded two contracts worth a combined $179m to Aboriginal-owned businesses; it has awarded $2.3bn worth of contracts to Aboriginal-owned business and joint ventures since 2011. BHP and Rio Tinto declared their support for an indigenous voice to Parliament in early 2019.

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

Fuel rule boost for Australian iron ore

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Original article by Matthew Stevens
The Australian Financial Review – Page: 30 : 20-Jun-19

The sulphur emissions of shipping fleets must be reduced by 80 per cent under the International Maritime Organisation’s rules that take effect on 1 January. BHP expects the new rules to give Australian iron ore producers a competitive advantage over their Brazilian rivals. It estimates that the cost of retro-fitting bulk cargo ships and higher fuel costs will increase the cost of shipping iron ore from the Pilbara to China by $US2-$US3 per tonne. In contrast, BHP expects Brazilian miners to incur increased costs of between $US3 to $US5 a tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP, INTERNATIONAL MARITIME ORGANISATION, VALE SA, WOODSIDE PETROLEUM LIMITED – ASX WPL, WOOD MACKENZIE

Fortescue challenges oil and gas over emissions

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 13-Jun-19

Fortescue Metals Group CEO Elizabeth Gaines says the pure-play iron ore miner supports the Paris climate agreement and Australia’s commitment to reducing carbon emissions. However, she adds that Fortescue opposes any move to make it accountable for the scope 3 emissions of customers such as Chinese steel mills. Oil and gas producers have lobbied Western Australia’s Environmental Protection Authority to take into account scope 3 assessments when approving resources projects.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, CHEVRON CORPORATION, SANTOS LIMITED – ASX STO

BHP puts foot down on robotic truck drive

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Original article by Nick Evans
The Australian – Page: 19 : 27-May-19

BHP may ramp up its deployment of autonomous haulage truck at its iron ore and coal mines in Australia. BHP, Rio Tinto and Fortescue now operate about 250 automated trucks at their iron ore mines in the Pilbara, and BHP recently said that most of its fleet could potentially be automated by 2023. Its fleet at the Jimblebar mine has been fully automated since 2017, and BHP executive Rag Udd notes that this has resulted in significant safety and productivity improvements. He stresses that such factors are driving the automation push, rather than job cuts, adding that many former truck drivers have been redeployed.

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

Fortescue approves $417m Queens mine as analysts tip dividend top-up

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Original article by Paul Garvey
The Australian – Page: 20 : 23-May-19

Pure-play iron ore producer Fortescue Metals Group will develop the Queens Valley mine in the Pilbara, with the project slated to cost $US287m ($417m). Paul Hissey of RBC Capital Markets says the recent rise in the iron ore price could significantly boost Fortescue’s earnings in the June quarter. This could in turn prompt another dividend payout when Fortescue releases its full-year results.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RBC CAPITAL MARKETS

BHP plugs into battery boom, holds line on ore

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Original article by Nick Evans
The Australian – Page: 19 : 23-May-19

CFO Peter Beaven has told investors that BHP is unlikely to increase its Pilbara iron ore output to capitalise on reduced supply from Brazilian rival Vale. BHP will also maintain its current annual production target for metallurgical coal. Beaven also indicated that BHP will pursue growth in copper and nickel sulfide production in response to rising demand for electric vehicles and battery storage technology. He added that BHP may be open to nickel acquisitions, after dropping plans to divest its Nickel West division.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, NICKEL WEST, RIO TINTO LIMITED – ASX RIO, GOLDMAN SACHS AUSTRALIA PTY LTD

Forrest in $654m payday from surprise Fortescue dividend

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Original article by Brad Thompson, Lucas Baird
The Australian Financial Review – Page: 17 & 22 : 15-May-19

Pure-play iron ore miner Fortescue Metals Group will pay a fully franked dividend of $0.60 per share on 14 June, ahead of possible changes to the franking credits regime if Labor wins the federal election. Fortescue chairman Andrew Forrest will earn $654m in dividend payments from his 35 per cent stake, lifting his total payout for 2018-19 to $981m. Fortescue has previously paid an interim dividend of $0.19 per share and a special dividend of $0.11 per share. CEO Elizabeth Gaines say Fortescue will continue to pay fully franked dividends, regardless of any change in government policy.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED, SHAW AND PARTNERS LIMITED

Rinehart’s Roy Hill comes clean about digging the dirt: lots of it

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Original article by Nick Evans
The Australian – Page: 19 & 30 : 14-May-19

A Roy Hill spokesperson has indicated that the iron ore project’s costs will not be affected by the revised mining plan it has submitted to Western Australia’s Environmental Protection Authority. Roy Hill has advised that the amount of waste ore it expects to shift over the mine’s 17-year life has been increased by 62 per cent, due to "variable iron ore quality". The Gina Rinehart-backed company says it has gained a better understanding of the ore body since mining commenced at Roy Hill in 2015.

CORPORATES
ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, HANCOCK PROSPECTING PTY LTD, MARUBENI CORPORATION, POSCO, CHINA STEEL CORPORATION, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SAMSUNG C&T CORPORATION

Rio Tinto mulls iron ore boost as Vale struggles

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Original article by Peter Ker
The Australian Financial Review – Page: 17 & 24 : 10-May-19

Rio Tinto Jean-Sebastien Jacques says the resources giant will only increase its Pilbara iron ore shipments if doing so makes financial sense. The price of the steel input has rallied in the wake of supply disruptions following a tailings dam collapse at a Vale mine in January, and it was trading above $US94 per tonne on 9 May. Meanwhile, just six per cent of shareholders at Rio Tinto’s Australian annual meeting supported a Market Forces resolution which would have required Rio Tinto to set carbon emission reduction targets for its customers.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, MARKET FORCES, FRIENDS OF THE EARTH, GRANGE RESOURCES LIMITED – ASX GRR, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD

Smart trucks for Rio’s future mine

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

WesTrac has secured a deal to supply Rio Tinto’s Koodaideri iron ore mine in the Pilbara with 20 autonomous Caterpillar haulage trucks. The contract, which is said to be worth about $US200m ($285m), also includes four autonomous blast drills and other industrial equipment. WesTrac CEO Jarvas Croome notes that miners are increasingly opting to buy haulage trucks that are autonomous-ready rather than converting them after purchase. Production at Koodaideri is slated to commence in 2021.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WESTRAC HOLDINGS PTY LTD, CATERPILLAR, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG