MINING CORPORATIONS – AUSTRALIA

Rio on track for world iron ore crown

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

Rio Tinto shipped 86.1 million tonnes of Pilbara iron ore during the September quarter, and 240 million tonnes in the first nine months of 2019. A strong performance in the fourth quarter could see Rio Tinto’s full-year exports top 330 million tonnes, which is the upper range of its guidance for the calendar year. This would also allow it to surpass Vale as the world’s biggest iron ore exporter, given that the Brazilian company now expects to export about 319 million tonnes for the year. Meanwhile, Rio Tinto has advised that its alumina and bauxite production in 2019 will be below previous guidance.

CORPORATES
RIO TINTO LIMITED – ASX RIO, RIO TINTO LIMITED – ASX RIO, VALE SA, TURQUOISE HILL RESOURCES LIMITED

Water’s worth its weight in gold as big producers run dry in the drought

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Original article by Nick Evans
The Australian – Page: 17 & 24 : 16-Oct-19

The Cowal gold mine in western New South Wales accounted for nearly 40 per cent of Evolution Mining’s total production for the September quarter. However, COO Bob Fulker has warned that production at Cowal may be hit by the end of 2019-20 if the drought in NSW persists and Evolution’s efforts to reduce the mine’s water consumption do not pay off. CEO Jake Klein notes that Evolution now recycles about 50 per cent of the water used at Cowal. The drought may also affect output at Newcrest Mining’s Cadia mine.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWCREST MINING LIMITED – ASX NCM, GLENCORE PLC, AUSTRALIA. BUREAU OF METEOROLOGY

BHP’s still pumped about petroleum

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Original article by Nick Evans
The Australian – Page: 20 : 11-Oct-19

BHP’s head of petroleum Geraldine Slattery has told a recent question and answer session in London that oil and gas will remain an integral part of the group’s portfolio. However, whether its historical Australian oil and gas assets remain part of that portfolio is uncertain, with analysts suggesting it may seek to divest its interests in the North West Shelf and Bass Strait. Slattery added that BHP is upbeat about its long-term prospects in Mexico, where it has a stake in the Trion oil field.

CORPORATES
BHP GROUP LIMITED – ASX BHP

China has other options for its iron ore

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 11-Oct-19

Fortescue Metals Group CEO Elizabeth Gaines has stressed the importance of Australia’s trading relationship with China. She has told the in a Melbourne Mining Club that commodities exports to China have been a key contributor to Australia’s economic growth, and warned that China will seek other sources of iron ore if relations between the two nations deteriorates. Gaines noted that Ernst & Young has estimated that iron ore accounted for three per cent of Australia’s GDP in 2018-19.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, THE MELBOURNE MINING CLUB, RIO TINTO LIMITED – ASX RIO, ALUMINIUM CORPORATION OF CHINA LIMITED

BHP green push all about profit

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 9-Oct-19

BHP’s head of external affairs Geoff Healy has told investors in London that embracing social and environmental issues is "good business". He argued that demonstrating a commitment to such causes is essential for mining companies, to ensure that they can both secure the rights to new deposits and retain control of existing projects. Healy says BHP believes that its commitment to social value was a key factor in securing a stake in Mexico’s Trion oil field.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIANSUPER PTY LTD, INVESTOR GROUP ON CLIMATE CHANGE

Doubts about Fortescue’s Simandou bid

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Original article by Nick Evans
The Australian – Page: 21 : 9-Oct-19

Lyndon Fagan of JP Morgan has expressed reservations about Fortescue Metals Group’s bid for blocks 1 and 2 of the Simandou iron ore project in Guinea. He says a successful bid may not be welcomed by shareholders, given the sovereign risks associated with the West African nation. He adds that given Simandou’s high-grade iron ore and the fact that it is likely to be developed, Fortescue may be taking the view that it is better to participate in a project that will compete with Fortescue’s own Pilbara operations.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, JP MORGAN AUSTRALIA LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Fortescue in race for Simandou

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 8-Oct-19

Fortescue Metals Group and the SMB-Winning consortium are said to be the only remaining contenders to acquire the right to develop blocks 1 and 2 of the Simandou iron ore deposit in Guinea. Fortescue CEO Elizabeth Gaines says details of the pure-play iron ore miner’s bid are confidential and there is no guarantee that any bid will be successful. Simandou is estimated to hold more than two billion tonnes of iron ore, with average grades of about 65 per cent iron content.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UMS, SHANDONG WEIQIAO ALUMINIUM POWER COMPANY LIMITED, WINNING SHIPPING, RIO TINTO LIMITED – ASX RIO, BSG RESOURCES LIMITED, VALE SA, ALUMINIUM CORPORATION OF CHINA LIMITED, BHP GROUP LIMITED – ASX BHP

BHP, South32 lead in tackling climate change

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Original article by Joanna Mather
The Australian Financial Review – Page: 10 : 3-Oct-19

The Climate Change 100+ group has released a new report on the abatement strategies of the 161 companies globally that generate the most carbon emissions. The report notes that 70 per cent of these companies have adopted emissions reduction targets, although just nine per cent have set targets that are consistent with the Paris climate agreement. Australian-listed mining groups BHP and South32 are among relatively few of the 161 companies that have set zero net emissions targets.

CORPORATES
CLIMATE CHANGE 100+, BHP GROUP LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, RIO TINTO LIMITED – ASX RIO, BORAL LIMITED – ASX BLD, AUSTRALIANSUPER PTY LTD

Anglo puts brakes on driverless mine trucks

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Original article by Nick Evans
The Australian – Page: 17 & 21 : 2-Oct-19

Anglo American has opted to overhaul the existing fleet of haulage trucks at its Dawson coal mine in Queensland, rather than replace them with autonomous trucks. A spokeswoman say a feasibility study has concluded that the deployment of autonomous vehicles would not be the best use of capital at present; however, Anglo American may reconsider using driverless trucks when its existing fleet reaches the end of its operational life. At present, Whitehaven is the only Australian coal producer to have committed to the use of autonomous trucks, which are now widely used at iron ore mines in the Pilbara.

CORPORATES
ANGLO AMERICAN PLC, WHITEHAVEN COAL LIMITED – ASX WHC, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Iron ore forecasts tumble, resources giants downgraded

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Original article by Robert Guy
The Australian Financial Review – Page: 32 : 2-Oct-19

Credit Suisse has scaled back its benchmark iron ore price forecasts for the next three years, due to expectations that Chinese steel production will peak in 2019. The firm now expects iron ore to fetch $US80 a tonne in 2020, which is six per cent lower than its previous guidance. Its price forecast for 2021 has been cut by 13 per cent to $US65/tonne, while the iron ore price is now expected to average $US60 a tonne in 2022. Credit Suisse has also reduced its share price targets for BHP, Rio Tinto and Fortescue Metals Group, while its rating on the latter has been downgraded from ‘neutral’ to ‘underperform’.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD