MINING CORPORATIONS – AUSTRALIA

BHP says IR changes to cost more than $1.3b estimate

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Original article by Peter Ker
The Australian Financial Review – Page: 5 : 6-Sep-23

BHP estimated in May that the ‘same job, same pay’ policy for labour hire workers would cost the resources group about $1.3bn a year. However, BHP believes that the actual cost may be much higher, given that the explanatory memorandum attached to the Closing Loopholes Bill could potentially capture mining service providers such as Thiess and Downer EDI. BHP did not take such providers into account when it released the initial estimate. BHP says it supports the intention of the bill with regard to low-paid and vulnerable workers, but argues that it is not appropriate for the mining sector; BHP notes that the average wage for employees in its Operations Services division is nearly $150,000 a year.

CORPORATES
BHP GROUP LIMITED – ASX BHP,THIESS PTY LTD,DOWNER EDI LIMITED – ASX DOW

Lynas hit with cost blowout on rare earths plant

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Original article by Brad Thompson
The Australian Financial Review – Page: 16 : 30-Aug-23

Lynas Rare Earths has reported a 2022-23 net profit of $310.7m, compared with $540.8m for the previous financial year; revenue fell from $920m in 2021-22 to $739.3m. The company received an average price of $46.20 per kilogram for its rare earths oxides, compared with an average of $60.30 per kilogram in 2021-22. Meanwhile, Lynas has revealed that the cost of building its cracking and leaching plant at Kalgoorlie in Western Australia has risen to $730m. Its previous estimate was $575m, and the cost increase has been attributed to factors such as the need to meet a deadline of 1 January to cease downstream processing at its plant in Malaysia.

CORPORATES
LYNAS RARE EARTHS LIMITED – ASX LYC

Billionaire MinRes boss charts a new course for lithium

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Original article by Brad Thompson
The Australian Financial Review – Page: 13 : 30-Aug-23

Mineral Resources has reported a 2022-23 net profit of $244m, which is 30 per cent lower than previously. The result was marred by a $552m writedown in the value of its iron ore assets. However, revenue rose by 40 per cent to $4.7bn and underlying EBITDA was 71 per cent higher at $1.8bn. MD Chris Ellison says Mineral Resources is looking at bypassing battery manufacturers and chemicals producers to sell lithium directly to car manufacturers. He has also indicated that the company’s Yilgarn iron ore project is likely to reach the end of its mine life within three years.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN

BHP rejects talk of iron ore price freefall

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Original article by Nick Evans
The Australian – Page: 13 & 18 : 23-Aug-23

BHP has posted a 2022-23 underlying net profit of $US13.4bn ($20.8bn), which is 37 per cent lower than previously. Its iron ore division reported underlying EBITDA of $US16.6bn for the year, down from $US21.7bn previously but in line with market expectations. BHP produced 285 million tonnes of iron ore in the Pilbara during 2022-23, while it expects output of 282 to 294 million tonnes in 2023-24. CEO Mike Henry has also downplayed fears that the iron ore price might fall below $US80 per tonne if China reduces its steel production. Meanwhile, lower prices and changes to the Queensland government’s royalties regime resulted in a sharp fall in the earnings of BHP’s coking coal mines in 2022-23.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Iron ore giant Fortescue Metals targeted by Russian ransomware group

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The Guardian Australia – Page: Online : 19-Jul-23

Fortescue Metals Group has confirmed that a small amount of non-confidential data was stolen in a cyber-attack in late May. The iron ore miner has advised that it had informed the Australian Cyber Security Centre of the "low-impact cyber incident", and that it has completed an internal investigation and taken remediation action. Russian ransomware group C10pm has claimed that it was responsible for the Fortescue cyber attack, and it is believed to have hacked more than 100 companies worldwide.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Secret probe cleared Forrest of wrongdoing

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Original article by Brad Thompson, Peter Ker
The Australian Financial Review – Page: 15 : 17-Jul-23

It has been revealed that the board of Fortescue Metals Group engaged law firm Seyfarth Shaw to conduct a secret review into claims that executive chairman Andrew Forrest was involved in a relationship with an employee of the company. The board has advised that the investigation was instigated as a result of claims being raised in an anonymous letter, and that the investigation found that none of the claims were substantiated. The revelation of the investigation comes after Forrest and his wife Nicola recently disclosed that they have separated.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SEYFARTH SHAW LLP

Rio hunts in the outback for new lithium deposits

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Original article by Elouise Fowler, Peter Ker
The Australian Financial Review – Page: 18 : 12-Jul-23

Rio Tinto has extended a lithium exploration partnership with Everest Metals with regard to the latter’s Rover Project in Western Australia. Everest has advised that Rio Tinto Exploration will commence a drilling program to assess the hard rock lithium reserves at the Rover Project. The Rio Tinto subsidiary struck an initial exploration deal with Everest in March 2021, before taking an 80 per cent stake in the venture in October 2022. WA is the world’s biggest source of hard rock lithium.

CORPORATES
RIO TINTO LIMITED – ASX RIO, EVEREST METALS CORPORATION LIMITED – ASX EMC

Fortescue sees Iron Bridge slippage push back first delivery

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Original article by Nick Evans
The Australian – Page: 18 : 28-Jun-23

Fortescue Metals Group achieved the milestone of first production at its Iron Bridge magnetite project in May, and advised at the time that its initial shipment would be made by the end of the 2022-23 financial year. Fortescue has now advised that the first shipment has been pushed back to July. Fiona Hick, the CEO of Fortecue’s mining division, also says the first ore from its Belinga iron ore project in Gabon has been loaded onto a train, and it is on track to deliver the first shipment to customers by the end of 2023.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

St Barbara owners back Genesis deal

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Original article by Elouise Fowler, Tom Rabe
The Australian Financial Review – Page: 15 : 21-Jun-23

Some 77.15 per cent of St Barbara’s shareholders have voted in favour of a deal to sell the Gwalia gold mine to Genesis Minerals. St Barbara chairman Kerry Gleeson says the company aims to complete the transaction by 30 June. The deal will provide St Barbara with a much-needed cash injection and leave the company with just its gold assets in Canada and Papua New Guinea. St Barbara had rejected a higher offer for the Gwalia mine from Silver Lake Resources, contending that engaging with the rival bidder could potentially have resulted in a breach of its debt covenants.

CORPORATES
ST BARBARA LIMITED – ASX SBM, GENESIS MINERALS LIMITED – ASX GMD, SILVER LAKE RESOURCES LIMITED – ASX SLR

Fortescue, Rio say batteries will beat hydrogen for trucks

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 15-Jun-23

Fortescue Metals Group’s founder Andrew Forrest said in early 2021 that all of its iron ore haulage trucks would run on ‘green energy’ by 2030. He particularly emphasised the use of hydrogen and ammonia. However, Fortescue executive Christiaan Heyning has told the Energy and Mines Australia Summit in Perth that electric batteries are likely to be the primary clean energy source for mining trucks in the near-term. Fortescue’s director of decarbonisation contends that the alternative of hydrogen is currently more inefficient than batteries. Rio Tinto executive John Mulcahy has expressed a similar view.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO