MINING CORPORATIONS – AUSTRALIA

Ellison’s delayed exit will harm undervalued MinRes share price

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Original article by Mark Wembridge, Tom Rabe, Peter Ker
The Australian Financial Review – Page: 13 & 17 : 6-Nov-24

Sources close to Mineral Resources have suggested that MD Chris Ellison may continue to be either directly or indirectly involved with the company after he steps down within the next 18 months. Bradley Watson from Bell Potter notes that Ellison is the largest shareholder in MinRes, and there could be speculation about the future of his stake in the company when he leaves. Other market observers believe that the relatively long leadership transition could weigh on the company’s share price.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, BELL POTTER SECURITIES LIMITED

Fortescue execs face bonus backlash

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Original article by Brad Thompson
The Australian – Page: 16 : 6-Nov-24

Fortescue shareholders will be given a vote on a proposal to grant performance rights to mining division CEO Dino Otranto and clean energy arm CEO Mark Hutchinson. However, Fortescue notes that granting performance rights does not require shareholder approval under the Corporations Act or ASX listing rules; the company has indicated that it will issue the performance rights even if investors vote against the resolution at its AGM on Wednesday. Three large US pension funds will oppose the resolution, with SBA Florida contending that there has been insufficient disclosure of performance targets.

CORPORATES
FORTESCUE LIMITED – ASX FMG, SBA FLORIDA

MinRes aware of claims for two years

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Original article by Elouise Fowler, Mark Wembridge, Alex Gluyas
The Australian Financial Review – Page: 13 : 30-Oct-24

Mineral Resources has advised that it had hired external lawyers in June 2022 to investigate the tax evasion allegations against MD Chris Ellison. The company also disclosed that it received more detailed allegations regarding Ellison in June and November 2023; the board also discussed the issue in June 2024. However, MinRes has stated that it did not inform shareholders of the investigation because it did not think it would have a material effect on the company’s share price. MinRes has emphasised that the sales contracts in question were struck prior to its IPO in 2006, and were made by entities that became part of MinRes when the company listed on the sharemarket.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN

$70bn class action case against BHP opens in London

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Original article by Hans van Leeuwen
The Australian Financial Review – Page: 19 : 23-Oct-24

Britain’s High Court has commenced hearing a massive class action lawsuit against BHP over the Samarco iron ore tailings dam collapse in 2015. Law firm Pogust Goodhead is representing about 62,000 Brazilians in the class action. BHP and Vale jointly owned Samarco, which operated the Germano iron ore mine; a key issue that will be addressed during the first days of the hearing is whether Samarco was an independent and autonomous company, or whether BHP was effectively in control of the iron ore project and is therefore responsible for the tragedy that resulted in 19 deaths and an environmental disaster.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, POGUST GOODHEAD, HIGH COURT OF ENGLAND AND WALES

Lithium stocks one deal away from rocketing, says broker

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Original article by Alex Gluyas
The Australian Financial Review – Page: 25 : 16-Oct-24

Data from S&P Global Platts shows that the spot price of spodumene is currently trading at around $US760 per tonne. However, E&P Financial Group forecasts that the price of spodumene will rise to $US850/tonne in the second quarter of fiscal 2025, and $US1,000/tonne in the third quarter. E&P analyst Adam Martin is also upbeat about the outlook for Australian-listed lithium stocks in the wake of Rio Tinto’s $9.9bn deal to acquire Arcadium Lithium.

CORPORATES
S&P GLOBAL PLATTS, E&P FINANCIAL GROUP LIMITED – ASX EP1, RIO TINTO LIMITED – ASX RIO, ARCADIUM LITHIUM PLC – ASX LTM

Rio Tinto’s red alert on green laws killing mining

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Original article by Brad Thompson
The Australian – Page: 2 : 16-Oct-24

Rio Tinto contends that the federal government must find a balance between protecting the environment and supporting the resources sector. Rio Tinto’s Australian CEO Kellie Parker has stressed the need to take into account different perspectives and practical thinking in the nation’s approach to environmental protection, as well as a regulatory system that supports and enhances the contribution that the resources sector makes to the economy and society. Parker adds that Rio Tinto is committed to meeting rigorous environmental standards.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Bat with bite puts end to ore plan

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Original article by Paul Garvey
The Australian – Page: 6 : 15-Oct-24

Rio Tinto has advised that it will not proceed with the Giles Mini iron ore mine, which was to be part of the broader Rhodes Ridge project in the Pilbara. Rio Tinto and its partners in Giles Mini have withdrawn their application to develop the deposit due to concerns about its impact on the habitat of the ghost bat, which is classified as a vulnerable species. However, the Rhodes Ridge project will still go ahead, despite also being home to a sub-population of the carnivorous ghost bat.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Market backs Rio’s $10bn Arcadium play

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Original article by Glen Norris
The Australian – Page: 19 : 11-Oct-24

Citigroup estimates that Rio Tinto’s $9.9bn deal to acquire Arcadium Lithium will generate annual synergies of about $125m. The firm expects Arcadium shareholders to back the deal, contending that the downturn in the price of the battery mineral means that is it is currently cheaper to buy lithium assets rather than build new mines. The deal will make Rio Tinto one of the world’s biggest lithium producers, and CEO Jakob Stausholm says he believes that the transaction is a "risk worth taking". He has also rejected suggestions that Rio Tinto is paying too much for Arcadium.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ARCADIUM LITHIUM PLC – ASX LTM

Green issues curb Hancock project target

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 9-Oct-24

Documents filed with the Western Australian government show that Gina Rinehart has significantly scaled back the size of her proposed Mulga Downs iron ore project. The Mulga Downs mine was initially slated to produce 20 million tonnes of iron ore each year, but this has been reduced to 12 million tonnes. The amount of vegetation to be cleared at site has also been reduced from 8,422 hectares to just 4,339 hectares. Rinehart’s Hancock Prospecting has a 95 per cent stake in the subsidiary that is developing Mulga Downs.

CORPORATES
HANCOCK PROSPECTING PTY LTD

Rio Tinto’s Argentina dream gets investor OK

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Original article by Peter Ker, Elouise Fowler
The Australian Financial Review – Page: 17 : 9-Oct-24

Shares in Arcadium Lithium have rallied in the wake of Rio Tinto’s takeover approach, and the company’s market capitalisation has risen to $6.5bn. However, some analysts regard the timing of the bid to be opportunistic, given that Arcadium’s market cap was $10.6bn in May, prior to a sharp fall in the lithium price. Arcadium has two lithium projects in Argentina, and investors are generally supportive of Rio Tinto’s bid, noting that the pro-business stance of the South American country’s new government will help to offset any sovereign risk.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ARCADIUM LITHIUM PLC – ASX LTM