MINING CORPORATIONS – AUSTRALIA

China iron ore demand sliding: BHP

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Original article by Cameron England
The Australian – Page: 13 & 16 : 28-Aug-24

BHP has posted a 2023-24 statutory net profit of $US7.9bn, which is 39 per cent lower than previously. The result was marred by a $US2.7bn write down of its nickel assets in Western Australia and a $US3.8bn charge related to the Samarco tailings dam collapse in Brazil. BHP’s underlying profit was up two per cent to $US13.7bn, and revenue was three per cent higher at $US55.7bn. CEO Mike Henry says China’s steel production is expected to plateau in coming years, reducing demand for iron ore. Meanwhile, BHP has warned that labour costs will rise due to the federal government’s ‘same job, same pay’ industrial relations reforms, reducing Australia’s international competitiveness.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Lithium mine closures tip of iceberg as prices hit three-year low

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Original article by Alex Gluyas
The Australian Financial Review – Page: 29 : 27-Aug-24

Core Lithium, Albemarle and Arcadium Lithium are amongst the companies that have put projects on hold or scaled them back in response to the downturn in the price of the battery metal. The price of spodumene concentrate has fallen by 19 per cent so far in 2024, while carbonate prices in China are down 25 per cent. UBS analyst Lachlan Shaw says Core Lithium’s decision to place its Finniss project in ‘care and maintenance’ mode could be followed by similar action by rival producers if the spodumene price remains at the current level for some time. UBS has downgraded its share price targets for Pilbara Minerals and Mineral Resources; it also has a ‘sell’ recommendation on both stocks.

CORPORATES
CORE LITHIUM LIMITED – ASX CXO, ALBEMARLE CORPORATION, ARCADIUM LITHIUM PLC – ASX LTM, UBS HOLDINGS PTY LTD, PILBARA MINERALS LIMITED – ASX PLS, MINERAL RESOURCES LIMITED – ASX MIN

Pilbara tips more lithium pressure

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Original article by Cameron England
The Australian – Page: 13 & 16 : 27-Aug-24

Pilbara Minerals has posted a 2023-24 underlying net profit of $318m, which is 86 per cent lower than previously; revenue fell by 69 per cent to $1.25bn. The company received an average realised price of $US1,176 per tonne for its spodumene concentrate, which is 74 per cent lower than the previous financial year. UBS is bearish about the outlook for lithium, forecasting that spodumene concentrate will average about $US770 a tonne over the next 12-18 months. Pilbara Minerals MD Dale Henderson says the company is well-placed to ride out the current downturn in the lithium price, contending that rivals with high-cost operations will be the most vulnerable.

CORPORATES
PILBARA MINERALS LIMITED – ASX PLS, UBS HOLDINGS PTY LTD

Fortescue insists spying on families wasn’t inappropriate

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Original article by Angelica Snowden
The Australian – Page: 13 & 16 : 21-Aug-24

Fortescue is being represented by Julian Cooke SC in its intellectual property dispute with ‘green iron’ start-up Element Zero. The company was founded by former Fortescue employees Bart Kolodziejczyk, Bjorn Winther-Jensen and Michael Masterman, allegedly using the iron ore miner’s intellectual property. Cooke has defenced Fortescue’s use of a private investigator to place the three executives and their families under surveillance, telling the Federal Court that there was a real risk that information pertaining to the pending court case could have been destroyed. The surveillance operation was followed by raids on the homes and business premises of the Element Zero directors

CORPORATES
FORTESCUE LIMITED – ASX FMG, ELEMENT ZERO PTY LTD, FEDERAL COURT OF AUSTRALIA

Mining giant BHP eyes Indonesia after nickel collapse

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Original article by Duncan Evans
The Australian – Page: 19 : 21-Aug-24

BHP is believed to be holding talks with the Indonesian government regarding an investment in the nation’s nickel industry. The Indonesia Nickel Mining Association’s secretary-general Meidy Katrin Lengkey says the discussions about "specific investment opportunities" have being going on for "several months". Indonesia’s move to ramp up its nickel production with Chinese backing contributed to BHP’s decision to mothball its nickel operations in Western Australia.

CORPORATES
BHP GROUP LIMITED – ASX BHP, INDONESIAN NICKEL MINING ASSOCIATION

Fortescue ‘portrayed former execs as dishonest’, court told

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Original article by Angelica Snowden
The Australian – Page: 13 & 16 : 20-Aug-24

Element Zero is seeking to have search orders awarded to Fortescue in May by Federal Court judge Melissa Perry thrown out; Parry granted the orders on the back of allegations that former Fortescue executives who are now directors of Element Zero had stolen Fortescue’s intellectual property. In trying to convince Federal Court judge Brigitte Markovic that the orders granted by Parry should be thrown out, the Element Zero directors told the court on Monday that Fortescue had sought to portray them as ‘shady actors’ who were seeking to steal its ‘green iron secrets’ so as to justify its request for the orders, which saw it raid their homes and offices.

CORPORATES
FORTESCUE LIMITED – ASX FMG, ELEMENT ZERO PTY LTD, FEDERAL COURT OF AUSTRALIA

Gold miner says $1b project unviable after Plibersek intervention

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 20-Aug-24

Regis Resources has indicated that it will consider all legal options after federal Environment Minister Tanya Plibersek effectively blocked its McPhillamy gold and silver project in NSW. Plibersek contended that her decision to place heritage protections over the headwaters of the Belubula River will only impact the proposed site of the mine’s tailings dam, and will not prevent the project from proceeding. However, Regis argues that there are no viable alternative sites for the tailings dam; the company adds that the approvals process would have to be restarted if it seeks a new site for the dam, which could delay the project by 5-10 years.

CORPORATES
REGIS RESOURCES LIMITED – ASX RRL, AUSTRALIA. DEPT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER

Rio readies WA copper stake for sale

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 14-Aug-24

Rio Tinto has indicated that it is open to all potential options for its Winu copper project in Western Australia’s Paterson Province. However, selling a stake in Winu is said to be its preferred option; Winu boasts copper grades of 0.45 per cent, compared with 1.89 per cent at the Resolution project in the US, and Rio Tinto believes that Winu may be of a more suitable size and scale for a small or mid-tier miner. Newmont Corporation is also seeking a buyer for its Telfer gold and copper mine in the region.

CORPORATES
RIO TINTO LIMITED – ASX RIO, NEWMONT CORPORATION – ASX NEM

Labor taking sides in IR fight

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Original article by Joe Kelly
The Australian – Page: 4 : 7-Aug-24

The Mining & Energy Union recently filed an application with the Fair Work Commission to increase the wages of BHP’s labour hire workers at three coal mines in Queensland. The legal action may become a test case for the federal government’s ‘same job, same pay’ laws. Minerals Council of Australia CEO Tania Constable has accused Prime Minister Anthony Albanase of intervening in the FWC case. He told the NSW Labor conference in late July that the government will send taxpayer-funded lawyers to "back the workers and the unions" in the MEU’s case. The MCA contends that the government has not intervened in any other major FWC cases under its industrial relations reforms.

CORPORATES
MINING AND ENERGY UNION, BHP GROUP LIMITED – ASX BHP, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, MINERALS COUNCIL OF AUSTRALIA

MinRes job cuts add to thousands lost in WA’s mining sector route

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 7-Aug-24

A spokesman for Mineral Resources has confirmed that the iron ore and lithium producer will reduce its head count, although the bulk of the job cuts will be at its Perth head office. Mineral Resources has not disclosed the extent of the job losses, although it is believed to be about 100. The move follows the company’s recent decision to mothball its high-cost iron ore mines in Western Australia’s Yilgarn region and a delay in the expansion of the Wodgina lithium mine. WA’s mining sector has already been hit by massive job losses in the nickel industry in 2024.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN