IRON ORE – WESTERN AUSTRALIA

Fortescue expands its base in China

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Original article by Paul Garvey
The Australian – Page: 23 : 26-Jul-19

Fortescue Metals Group has advised that its iron ore shipments totalled 167.7 million tonne in 2018-19, including a record 46.6 million tonnes in the final quarter. Fortescue received an average price of $US65 per tonne during the financial year, an increase of 50 per cent. The pure-play miner has forecast that it will ship between 170 million and 175 million tonnes of iron ore in 2019-20. Meanwhile, Fortescue has opened a new office in China that will allow it to sell smaller volumes of iron ore to customers.

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

Hancock loses stoush over royalties

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Original article by Brad Thompson
The Australian Financial Review – Page: 23 : 25-Jul-19

The Supreme Court of Western Australia has ruled in Wright Prospecting’s favour in the latest round of its dispute with Gina Rinehart’s Hancock Prospecting. The long-running dispute centres on the right to royalties from the Hope Downs iron ore tenements. The court has rejected Hancock’s bid to have Wright Prospecting’s legal action put on hold until the outcome of its appeal against a 2018 court ruling is known.

CORPORATES
HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, SUPREME COURT OF WESTERN AUSTRALIA, COURT OF APPEAL (WESTERN AUSTRALIA)

BHP flags iron ore output surge

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Original article by Nick Evans
The Australian – Page: 20 : 18-Jul-19

BHP has forecast that its Pilbara iron ore exports for 2019-20 will be within the range of 273 to 286 million tonnes, despite its scheduled maintenance work at Port Hedland. BHP’s Pilbara shipments totalled 71.1 million tonnes in the final quarter of 2018-19, and 270.5 million tonnes for the full year. BHP has also advised that its 2018-19 production costs were in line with previous forecasts of less than $US15 per tonne. Rio Tinto recently indicated that its iron ore production costs for 2019 will be between $US14 and $US15 per tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

Steel mills to the rescue as Rio mines slow

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 17-Jul-19

Rio Tinto has advised that production at its flagship Pilbara iron ore mines totalled 155.7 million tonnes in the first half of 2019, which is eight per cent lower than previously. Pilbara iron ore shipments also fell by eight per cent, to 154.6 million tonnes. Export volumes were affected by factors such as cyclone activity and a fire at Cape Lambert port during the half-year. Rio Tinto received an average price of $US85.30 per tonne, excluding the cost of freight, an increase of 35 per cent compared with the same period in 2018.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, SHAW AND PARTNERS LIMITED

Gindalbie shareholders approve Ansteel buyout

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Original article by Nick Evans
The Australian – Page: 28 : 4-Jul-19

Some 81 per cent of Gindalbie Metals’ shareholders voted in favour of Ansteel’s takeover bid on 3 July. The deal required the support of at least 75 per cent of the struggling iron ore miner’s shareholders. Gindalbie’s key asset is a 48 per cent stake in the loss-making Karara magnetite project in Western Australia, which incurred a blowout in construction and operating costs.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, SANDON CAPITAL INVESTMENTS LIMITED – ASX SNC

Roy Hill bound for record profit despite volume miss

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 2-Jul-19

The Roy Hill iron ore project’s 2018-19 production is expected to be 55 million tonnes, although export volumes are likely to total 53 million tonnes. Recent data from Macquarie suggested that the Gina Rinehart-backed project would export 52.5 million tonnes in 2018-19, after shipping about 50.5 million tonnes in 2017-19. Looking ahead, Roy Hill has applied to increase its annual export capacity to 60 million tonnes in 2020. Roy Hill’s 2018-19 earnings should be boosted by a rally in the iron price in 2018-19, following a $558m profit in the previous financial year.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

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