MINING CORPORATIONS – AUSTRALIA

Ranger rated a potential catastrophic risk by Rio

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Original article by Nick Evans
The Australian – Page: 24 : 13-Jun-19

Rio Tinto has advised that 19 of its tailings facilities in Australia have a high hazard rating under a system established by the Australian National Committee on Large Dams. Two of the tailings dams at the Ranger uranium mine have a ‘high B’ rating, which signifies that there is a ‘catastrophic’ risk of damage to the environ­ment and people if they collapse. The Ranger mine is operated by Rio-controlled Energy Resources of Australia, and is slated to be closed in 2021. A dam at Rio Tinto’s Weipa bauxite mine has a ‘high A’ rating.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, BHP GROUP LIMITED – ASX BHP, GLENCORE PLC, ANGLO AMERICAN PLC, AUSTRALIAN NATIONAL COMMITTEE ON LARGE DAMS INCORPORATED, CHURCH OF ENGLAND

Legal setback for Adani on eve of sign-off

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Original article by Charlie Peel, Sarah Elks
The Australian – Page: 8 : 13-Jun-19

The development of Adani’s Carmichael coal mine may be further delayed due to an ‘administrative error’ by the federal government. Adani’s separate proposal to build a 110km water pipeline will have to be reassessed by Environment Minister Sussan Ley and reopened to public comment. This follows the revelation that the Department of the Environment cannot prove that it had considered all of the public submissions it received on the pipeline project. The Queensland Government is slated to make a decision regarding the groundwater management plan for the Carmichael mine on 13 June.

CORPORATES
ADANI MINING PTY LTD, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN CONSERVATION FOUNDATION INCORPORATED, ENVIRONMENTAL DEFENDERS OFFICE LIMITED, FEDERAL COURT OF AUSTRALIA, QUEENSLAND GREENS

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

Belts tighten across exploration sector: BDO

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Original article by Peter Ker
The Australian Financial Review – Page: 30 : 11-Jun-19

ASX-listed companies spent $363 million on exploration for minerals, oil and gas in the first three months of 2019, according to accounting firm BDO Global. It was the lowest quarterly exploration expenditure since the three months to June 2017, when just $338 million was outlayed. BDO also found that the average cash balance among exploration companies had declined from $5.79 million to $5.62 million, while the number of exploration companies listed on the ASX is on the decline.

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

Rio’s additional drilling adds to hype over copper find

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Original article by Brad Thompson
The Australian Financial Review – Page: 23 : 7-Jun-19

Rio Tinto has advised that drilling results from its Winu copper-gold discovery in Western Australia continue to show promise. However, Rio stated that it is not yet in a position to determine the possible size and quality of the mineralisation, or to give an estimate of a mineral resource. Winu is located in the Paterson Range, and Rio is investigating whether its acreage there is big enough to support a number of copper mines.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Dacian downturn bodes ill for WA gold producers

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Original article by Nick Evans
The Australian – Page: 19 : 6-Jun-19

Dacian Gold has advised that it now expects production at its Mount Morgans mine to be within the range of 36,000 to 38,000 ounces in the June quarter, compared with previous guidance of 50,000 to 55,000 ounces. Dacian has also warned that longer-term production at the mine will also fail to meet expectations, at an of average 160,000 to 180,000 ounces annually over a five-year period. Shares in Dacian closed 67.5 per cent lower at $0.515 on 5 June.

CORPORATES
DACIAN GOLD LIMITED – ASX DCN, GASCOYNE RESOURCES LIMITED – ASX GCY, MILLENNIUM MINERALS LIMITED – ASX MOY, ST BARBARA LIMITED – ASX SBM, NORTHERN STAR RESOURCES LIMITED – ASX NST, ATLANTIC GOLD CORPORATION, NORGES BANK

Adani downsizes, cuts new job numbers to as low as 800

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Original article by Sarah Elks
The Australian – Page: Online : 4-Jun-19

Doubts have emerged as to how many ongoing jobs would be created at Adani’s Carmichael coal mine if the $2bn project goes ahead. A spokeswoman says the project would create 1,500 direct jobs and 6,750 indirect jobs during the ramp-up and construction phases. She adds that the number of jobs when the mine becomes operational will be in line with open-cut coal mines of a similar size in Queensland, which is between 800 and 1,500. Adani had originally flagged the creation of about 5,000 operational jobs at Carmichael, before the size of the project was scaled back.

CORPORATES
ADANI MINING PTY LTD, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, THE AUSTRALIA INSTITUTE LIMITED

BHP faces call for write-down as Rio advances potash dream

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 3-Jun-19

BHP is slated to decide within 18 months if it will commit an additional $US5.5bn to the first stage of its Jansen potash project in Canada. CEO Andrew Mackenzie recently told investors that BHP has overinvested in the project to date, and James Gurry of Deutsche Bank says it may be a good time for BHP to review the carrying value of Jansen. He adds that there is potential for an initial impairment of around $US1.2bn ($1.7bn). Meanwhile, Rio Tinto’s Albany potash joint venture in Canada could commence production within two years.

CORPORATES
BHP GROUP LIMITED – ASX BHP, DEUTSCHE BANK AG, RIO TINTO LIMITED – ASX RIO, JSC AKRON

Bullish iron ore could give budget $4b boost

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

The iron ore price reached a five-year high of $US108 per tonne on 28 May, prompting strong gains in the share prices of Australia’s three major producers. The federal government’s April 2019 Budget had forecast that the iron ore price would average $US88/tonne in 2019-20; Nicki Hutley of Deloitte Access Economics says government revenue could increase by $4bn if the price remains at its current level over this period. Goldman Sachs does not expect iron ore to remain above $US100 for long; it has issued a revised price forecast for 2019 of $US91.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, DELOITTE ACCESS ECONOMICS PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, MOUNT GIBSON IRON LIMITED – ASX MGX, ROY HILL HOLDINGS PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, GRANGE RESOURCES LIMITED – ASX GRR

Galaxy secures front-row seats to the next lithium IPO

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 28-May-19

Galaxy Resources recently announced that it would acquire $22.5 million worth of shares in lithium exporter Alliance Mineral Assets. The transaction will make Galaxy the biggest shareholder in Alliance, with a stake in excess of 10 per cent. Galaxy will also be a shareholder in Cowan Lithium when it eventually lists on the Australian sharemarket; it acquired an interest in Cowan as a result of buying shares in Alliance’s predecessor company, Tawana Resources.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXY, ALLIANCE MINERAL ASSETS LIMITED – ASX A40, COWAN LITHIUM LIMITED – ASX COW, TAWANA RESOURCES NL, KIDMAN RESOURCES LIMITED – ASX KDR, WESFARMERS LIMITED – ASX WES