MINING CORPORATIONS – AUSTRALIA

Mine prospecting booms as explorers look past China dip

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Original article by Elouise Fowler
The Australian Financial Review – Page: 15 : 27-Mar-24

Data from advisory firm BDO Australias shows that resources companies in the pre-revenue stage spent a total of $1.01bn on exploration in the December quarter. This was the highest level of exploration expenditure in the final three months of a calendar year in the last decade. Meanwhile, exploration companies raised a total of $2.68bn from investors during the quarter, which is 32 per cent higher than the previous three months.

CORPORATES
BDO AUSTRALIA LIMITED

Rio bows to pressure on green steel spending

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Original article by Brad Thompson
The Australian Financial Review – Page: 16 : 20-Mar-24

Iron ore accounted for nearly 70 per cent of Rio Tinto’s total scope 3 emissions of 578 million tonnes in 2023. The resources group has advised that it will provide increased disclosure of its expenditure on initiatives aimed at reducing scope 3 emissions, including ‘green’ steel projects. Rio Tinto has been under growing pressure from groups such as Fidelity International and the Australian Council of Superannuation Investors to improve its disclosures. Daniela Jaramillo from Fidelity says this has been a priority in talks with Rio in recent years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FIDELITY INTERNATIONAL PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

BHP braces for iron ore challengers

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Original article by Matt Bell
The Australian – Page: 13 & 18 : 19-Mar-24

Iron ore futures briefly fell below $US100 per tonne in Singapore trading on Monday; Macquarie Equities in turn downgraded BHP’s shares from ‘outperform’ to ‘neutral’, in response to the uncertain outlook for iron ore in the medium-term. Meanwhile, BHP has used a shareholders’ briefing to warn that the iron ore market will become more competitive by the end of this decade, with production from mines in Africa set to boost global supply. However, CFO Vandita Pant said that BHP will have a competitive edge, given that it is the lowest-cost producer of iron ore. Meanwhile, CEO Mike Henry said a decision on the future of the Nickel West business is likely to be made shortly.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MACQUARIE EQUITIES LIMITED

Cyclone Megan wreaks havoc on South32 manganese port

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Original article by Tom Richardson, Brad Thompson
The Australian Financial Review – Page: 7 : 19-Mar-24

Diversified miner South32 has declined to comment on the damage to export infrastructure associated with its Groote Eylandt manganese mine in the Northern Territory. A bulk carrier struck a loading wharf during strong winds that emanated from Cyclone Megan, causing damage to both the wharf and the vessel. Sources have questioned whether the Groote Eylandt port will become operational again, citing factors such as the cost of repairs and the mine’s remaining life is limited. It is the world’s biggest source of manganese, although South32 has previously indicated that the mine could be exhausted by the end of this decade.

CORPORATES
SOUTH32 LIMITED – ASX S32

Lake Resources cutting jobs as lithium stabilises

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Original article by Matt Bell
The Australian – Page: 16 : 5-Mar-24

Australian-listed Lake Resources has advised that it is seeking a partner for its Kachi lithium project in Argentina, which will continue to be the company’s priority. CEO David Dickson says Lake Resources will seek expressions of interest from prospective partners, with a view to making a final investment decision on Kachi in 2025. Dickson has also indicated that Lake Resources will review its non-core assets and lithium tenements, while it will retrench about 50 per cent of its global workforce; the job cuts will be focused on non-core operational and administrative roles.

CORPORATES
LAKE RESOURCES NL – ASX LKE

Lynas set to expand despite glut fears

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Original article by Nick Evans
The Australian – Page: 16 : 27-Feb-24

Lynas Rare Earths has posted a 2023-24 interim net profit of $39.5m, which is 74 per cent lower than previously; revenue was down 37 per cent at $234.8m. The half-year result was marred by a six-week shutdown of its refinery in Malaysia, although Lynas took the opportunity to expand its production capacity. Lynas has advised that it now has the capacity to produce about 10,500 tonnes of neodymium and praseodymium (NdPr) annually. Lynas also intends to increase production at its cracking and leaching plant at Kalgoorlie in Western Australia, although Lacaze notes that Lynas will need to find an alternative source of sulphuric acid if BHP closes its Kalgoorlie nickel smelter.

CORPORATES
LYNAS RARE EARTHS LIMITED – ASX LYC, BHP GROUP LIMITED – ASX BHP

Forrest blames green move for executive exodus

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Original article by Rosie Lewis
The Australian – Page: 13 & 16 : 27-Feb-24

Fortescue’s executive chairman Andrew Forrest has rejected claims that the company has experienced an unusually high number of executive departures. Speaking at the National Press Club on Monday, Forrest conceded that some executives had left it because of its transition from a "fossil fuel-burning company to a green energy company", while he said its turnover was around half when compared to the mining industry as a whole. Forrest said that Fortescue’s senior management team was beginning to settle down now.

CORPORATES
FORTESCUE LIMITED – ASX FMG, NATIONAL PRESS CLUB (AUSTRALIA)

Dam disaster, nickel weigh on BHP

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Original article by Nick Evans
The Australian – Page: 18 : 21-Feb-24

BHP has posted a 2023-24 interim statutory net profit of $US927m ($1.42bn), which is 86 per cent lower than previously. The result was marred by one-off charges relating to its Nickel West division and the Samarco tailings dam disaster in Brazil. However, BHP’s underlying profit of $US6.6bn was in line with the previous corresponding period. Meanwhile, CEO Mike Henry says BHP is the world’s lowest-cost major iron ore producer thanks to its Pilbara operations, which produced and shipped about 142.1 million tonnes in the half-year. Its full-year guidance is for 282 to 294 million tonnes.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, SAMARCO MINERACAO SA

BHP urges Labor to fix IR before issuing subsidies

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Original article by Peter Ker, Phillip Coorey
The Australian Financial Review – Page: 4 : 21-Feb-24

BHP CEO Mike Henry says the resources group would be supportive of any assistance for Australia’s embattled nickel industry, such as a short-term production tax credit. However, he warns that a tax credit may not be sufficient to save the industry, given the significant challenges facing the nickel market. Henry adds that getting industrial relations policy right is more important than offering subsidies and rescue packages. BHP in particular will be impacted by the same job, same pay’ regime for labour hire workers. BHP’s wholly-owned labour hire firm, Operations Services, pays workers less than their colleagues employed on site-specific enterprise bargaining agreements. BHP’s Western Australian nickel mines are among the sites that use Operations Services workers.

CORPORATES
BHP GROUP LIMITED – ASX BHP, OPERATIONS SERVICES

BHP train drivers to get $300,000 plus bonus

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Original article by Ewin Hannan
The Australian – Page: 7 : 16-Feb-24

BHP has averted industrial action after agreeing to a new pay deal with its iron ore train drivers in the Pilbara that will see their base salary rise to more than $300,000 over the next four years. The in-principle agreement with the Mining & Energy Union includes an immediate pay rise of four per cent, followed by four annual increases of four per cent. The train drivers will also receive two retention bonuses of $20,000; the first will be paid immediately, with the second to be paid in 12 months’ time. The protected industrial action that was slated to disrupt iron ore rail shipments to Port Hedland from Friday will no longer proceed.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINING AND ENERGY UNION