MINING CORPORATIONS – AUSTRALIA

Miners fret over US nickel deal

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 30-Oct-23

Australian nickel producers such as BHP, Chalice Mining and Wyloo Metals are concerned that Indonesian rivals will be given access to subsidies via the Biden administration’s Inflation Reduction Act. Wyloo CEO Luca Giacovazzi contends that a US free-trade agreement on nickel with Indonesia would make it difficult to justify investing in Australian and Canadian nickel mines, due to the higher cost of production. Several US senators have backed the Australian miners’ stance, noting amongst other things that Chinese interests control much of Indonesia’s nickel production.

CORPORATES
BHP GROUP LIMITED – ASX BHP, CHALICE MINING LIMITED – ASX CHN, WYLOO METALS PTY LTD

Rinehart’s war chest full for lithium spree

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Original article by Brad Thompson
The Australian Financial Review – Page: 27 & 28 : 28-Oct-23

The owners of the Roy Hill iron ore mine received $2.25bn in dividends in the year to 30 September, and an additional $800m in October. Gina Rinehart’s Hancock Prospecting was paid almost $2.14bn in dividends, as the largest shareholder in the Roy Hill project. Roy Hill has posted a full-year net profit of $2.7bn, compared with $3.16bn previously, while it shipped a record 63.3 million tonnes of iron ore. The remaining mine life of the existing Roy Hill resource is estimated to be less than 10 years, and Hancock Prospecting is ramping up its investment in the lithium sector. It has built an 18 per cent stake in takeover target Azure Minerals, having previously taken a 19.9 per cent stake in Liontown Resources.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, AZURE MINERALS LIMITED – ASX AZS, LIONTOWN RESOURCES LIMITED – ASX LTR

Lithium takeover talk ignites Pilbara targets

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 24-Oct-23

Chilean lithium company SQM looks set to acquire Pilbara lithium explorer Azure Minerals, which asked for a halt in trading of its shares on Monday ahead of a "potential change of control transaction". Most assume that SQM is the company being referred to, as it offered in July to pay $2.31 per share for Azure in a deal that valued it at close to $1 billion. It was the second deal involving SQM and the Pilbara on Monday, with SQM to pay Gary Morgan’s Haoma Mining $2.5 million for a stake in lithium exploration company Pirra, which is also looking in the area.

CORPORATES
SOCIEDAD QUIMICA Y MINERA SA, AZURE MINERALS LIMITED – ASX AZS, HAOMA MINING NL, PIRRA LITHIUM PTY LTD

Ellison eyes new lithium prize in WA

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 23-Oct-23

Mineral Resources has declined to comment on reports that it is looking to acquire a stake in Wildcat Resources, citing ‘market speculation’. Wildcat recently completed a deal with Global Advanced Metals to acquire the Tabba Tabba lithium project in the Pilbara. Global Advanced Metals is owned by the private equity firm of Mineral Resources’ chairman James McClements. The Tabba Tabba project is in turn located near the Wodgina lithium mine, which is jointly owned by Mineral Resources and Albemarle.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, WILDCAT RESOURCES LIMITED – ASX WC8, GLOBAL ADVANCED METALS PTY LTD

Why Rhodes Ridge is Rio’s silver bullet

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Original article by Nick Evans
The Australian – Page: 15 & 19 : 23-Oct-23

Rhodes Ridge has long been considered as the best iron ore deposit in Western Australia’s Pilbara region, but for a while it was regarded as the most heavily litigated mining deposit in the world. However, it is now being hailed as Rio Tinto’s ‘silver bullet’, as it will end Rio’s reliance on its network of 17 mines across the Pilbara that it uses to produce the differing ore types that make up its ‘flagship’ Pilbara Blend; it can also be serviced by Rio’s existing infrastructure, doing away with the need to build new rail infrastructure.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Fortescue on track to hit 2030 greening target

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 18-Oct-23

Fortescue Metals Group director Larry Marshall says he agreed to join the iron ore producer’s board in August after being satisfied that the target of decarbonising its mining operations by 2030 is achievable. Marshall adds that the technology that is needed to decarbonise mining is in place and simply needs to be built. Solar and wind power will be a key focus of Fortescue’s decarbonisation strategy; the company estimates that it will require 1,000 megawatts of capacity of both forms of renewal energy.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio Tinto boosts its shipments

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Original article by Glen Norris
The Australian – Page: 16 : 18-Oct-23

Rio Tinto has advised that its Pilbara iron ore shipments for the September quarter totalled 83.9 million tonnes, which is one per cent higher year-on-year. However, iron ore production was down one per cent at 83.5 million tonnes. Rio Tinto expects its iron ore shipments for calendar 2023 to be at the upper end of its initial full-year guidance of 320 to 335 million tonnes. Meanwhile, Rio Tinto’s aluminium and bauxite production rose by nine per cent and two per cent respectively year-on-year.

CORPORATES
RIO TINTO LIMITED – ASX RIO

New Hope cautious as China lifts coal ban

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 20-Sep-23

New Hope Corporation has posted a net profit of $1.08bn for the year to 31 July, which is 11 per cent higher than previously. Underlying EBITDA was also up 11 per cent to $1.75bn, and revenue rose by 7.9 per cent. The coal miner has advised that it received an average realised price of $346.73 per tonne, a year-on-year increase of 23 per cent. New Hope sold just $79.6m worth of coal to Chinese buyers in its 2022-23 financial year, despite the removal of the ban on Australia coal imports; CEO Rob Bishop says New Hope will continue to prioritise its major customers in Japan and Taiwan.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC

Moody’s warns on Fortescue executive churn

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Original article by Peter Ker
The Australian Financial Review – Page: 12 : 20-Sep-23

Ratings agency Moody’s has reaffirmed its ‘Ba1’ credit rating for iron ore miner Fortescue Metals Group. However, Moody’s has warned that the high level of turnover within Fortesue’s executive ranks in the last several years could adversely affect the company’s credit rating. The firm also notes that the high level of stock ownership by Fortescue chairman Andrew Forrest increases governance risks, while it adds that looming final investment decisions on five clean energy projects may put further pressure on Fortescue’s balance sheet.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED

Rinehart raid shows Liontown’s quality

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 19 : 13-Sep-23

Gina Rinehart’s Hancock Prospecting has built up a 7.72 per cent strategic stake in lithium hopeful Liontown Resources. This includes the purchase of almost 60 million shares several days after Liontown’s board endorsed Albemarle’s sweetened takeover off on 4 September. Liontown chairman Tim Goyder says Hancock’s emergence on its share register demonstrates the quality of the Kathleen Valley lithium project in Western Australia. Meanwhile, Mineral Resources MD Chris Ellison has been appointed as the chairman of Delta Lithium; Mineral Resources has a 17.4 per cent stake in Delta.

CORPORATES
LIONTOWN RESOURCES LIMITED – ASX LTR, HANCOCK PROSPECTING PTY LTD, ALBERMARLE CORPORATION, MINERAL RESOURCES LIMITED – ASX MIN, DELTA LITHIUM LIMITED – ASX DLI