MINING CORPORATIONS – AUSTRALIA

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

BHP hit in $5.4b nickel wipeout

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Original article by Brad Thompson, Peter Ker, Tom Rabe
The Australian Financial Review – Page: 1 & 17 : 16-Feb-24

BHP’s Nickel West division has made a loss of $US200m ($308m) over the last six month, due to the sharp downturn in the price of the battery metal. BHP has advised that its half-year accounts will include a pre-tax writedown of $5.4bn in the value of the nickel business; the resources group has also warned that it could potentially place the nickel operations – which employ about 3,000 people – in ‘care and maintenance’ mode. Meanwhile, the Western Australian government may provide royalty relief to struggling nickel producers, but Premier Roger Cook says governments at all levels need to step in and assist them to ride out the "significant structural disruption" to the industry.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

BHP’s train drivers to strike

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Original article by Ewin Hannan
The Australian – Page: 4 : 13-Feb-24

BHP’s iron ore shipments from the Pilbara are set to be disrupted after 97 per cent of train drivers who are members of the Mining & Energy Union voted in favour of industrial action. The union has organised a 24-hour strike on Friday as part of negotiations for a new enterprise agreement. The train drivers rejected a proposed agreement in December, and BHP’s Warren Wellbeloved says it was a " fair and generous offer". The strike will be the first since 2008 in the Pilbara’s iron ore industry, which is largely deunionised.

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

WA gold miners Silver Lake, Red 5 in $2.2bn merger deal

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Original article by Giuseppe Tauriello
The Australian – Page: 15 & 18 : 6-Feb-24

Shares in gold miner Red 5 rose by three per cent to $0.34 on Monday, in response to a proposed merger with Silver Lake Resources. Red 5 is offering 3.434 of its shares for every Silver Lake share, and Red 5 shareholders will own 51.7 per cent of the merged entity if the deal is approved. The deal has the support of both groups’ boards, and Red 5 chairman Russell Clark does not expect a bidding war to emerge. The combined company would be the fifth-largest gold miner on the Australian sharemarket, with annual production of about 445,000 ounces.

CORPORATES
RED 5 LIMITED – ASX RED, SILVER LAKE RESOURCES LIMITED – ASX SLR

Forrest wants tax credits, royalty relief to save nickel

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Original article by Brad Thompson, Peter Ker
The Australian Financial Review – Page: 14 : 24-Jan-24

Wyloo Metals CEO Luca Giacovazzi has warned that Australia’s nickel industry is at a crossroads, arguing that action is needed to ensure that the sector remains viable. Amongst other things, the private company of mining magnate Andrew Forrest has called for a 10 per cent production tax credit for downstream nickel processing, royalty relief and greater access to government funding. Wyloo also advocates a price premium on nickel that is produced in accordance with environmental, social and governance standards.

CORPORATES
WYLOO METALS PTY LTD

Rio iron exports up as Mongolia bites

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 17-Jan-24

Rio Tinto’s production report for the December quarter shows that its Pilbara mines shipped 86.25 million tonnes of iron ore in the final three months of 2023, and 338.1 million tonnes in the calendar year. The resources giant is targeting shipments of between 323 million and 338 million tonnes in 2024. Rio Tinto also advised that shipments of its benchmark ‘Pilbara blend’ product fell by five per cent year-on-year, while export volumes for its lower grade SP10 ‘fines’ were 56 per cent higher; the company expects SP10 shipments to remain high until its new mines come into production. Meanwhile, Rio Tinto says it has received a new claim for unpaid taxes by the Mongolian government regarding the Oyu Tolgoi copper mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO