MINING CORPORATIONS – AUSTRALIA

Northern Minerals looks beyond China saga with $48m raising

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Original article by Adrian Rauso
The West Australian – Page: Online : 17-Sep-24

Northern Minerals has raised $43m from new and existing investors via a share placement, and it will seek to raise an additional $5m via a share purchase plan. Northern Minerals has indicated that it has sufficient cash to complete the definitive feasibility study for its Browns Range heavy rare earths project in Western Australia. The company aims to make a final investment decision on the project in the first half of 2025. China dominates the heavy rare earths sector, and Northern Minerals recently attracted scrutiny after the federal government ordered several investors with links to China to reduce their stakes in the company.

CORPORATES
NORTHERN MINERALS LIMITED – ASX NTU

Lithium rollercoaster decade: IGO

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 13-Sep-24

Data from S&P Global Platts shows that spodume was fetching $US730 per tonne on Wednesday, compared with a peak of more than $US8,000 in early 2023. IGO CEO Ivan Vella says investors should expect further volatility in the price of lithium over the long-term. Vella adds that battery minerals will continue to be the focus for IGO, which produces both lithium and nickel. However, IGO aims to diversify its operations by expanding into copper production; this will help offset the "extreme" volatility of the lithium sector and the structural changes in the nickel market caused by Indonesia’s move to ramp up production with Chinese backing.

CORPORATES
IGO LIMITED – ASX IGO, S&P GLOBAL PLATTS

BHP hits back: we paid for half of all hospitals

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 11-Sep-24

BHP’s Australia president Geraldine Slattery has released a statement which highlights the resources group’s economic contribution. She noted that BHP pays an adjusted tax rate of 32 per cent, which rises to 44 per cent when royalties are taken into account. Slattery added that governments in Australia received a total of $14.5bn from BHP in 2023-24, via taxes, royalties and other payments; she noted that this is about half of the federal government’s annual expenditure on public hospitals. Slattery’s comments follow recent animosity between Minerals Council of Australia CEO Tania Constable and the federal government over the latter’s industrial relations reforms.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA

Probe into investors in minerals firm

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 4-Sep-24

A spokesman for Treasurer Jim Chalmers says the federal government will undertake a full assessment of whether the Yuxiao Fund has complied with an order to divest its stake in Northern Minerals. The Singapore-registered fund and its associates were directed to sell their equity interest in the critical minerals group due to their Chinese links. Yuxiao has sold its stake to two separate Hong Kong-registered companies, Qogir Trading & Service and Hong Kong Ying Tak, which will also be subject to government scrutiny on national interest grounds.

CORPORATES
NORTHERN MINERALS LIMITED – ASX NTU, YUXIAO FUND, AUSTRALIA. DEPT OF THE TREASURY

Lithium prices have crashed this year, squeezing margins at Australian miners

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Original article by Clint Jasper
abc.net.au – Page: Online : 3-Sep-24

The lithium price peaked in 2022, but the battery mineral has fallen by about 50 per cent in the last 12 months. Demand for lithium remains strong, amid a growing consumer shift to electric vehicles and the push to decarbonise economies by transitioning to renewables such as wind and solar; however, this is being offset by rising global supply, which is expected to increase in coming years as more lithium mines commence production. Core Lithium put its Finnis mine into ‘care and maintenance’ mode earlier in 2024, while Mineral Resources is reducing its lithium output. In contrast, Pilbara Minerals aims to increase lithium production by 50 per cent over the next year: MD Dale Henderson says the long-term outlook for lithium is "fantastic".

CORPORATES
CORE LITHIUM LIMITED – ASX CXO, MINERAL RESOURCES LIMITED – ASX MIN, PILBARA MINERALS LIMITED – ASX PLS

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