MINING CORPORATIONS – AUSTRALIA

Rio Tinto digs deep for local rail

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Original article by Tom Rabe
The Australian Financial Review – Page: 6 : 14-Jun-23

Rio Tinto has struck a deal to buy 100 new locally-manufactured iron ore rail cars at a cost of $150m. The resources group typically purchases such rolling stock from China; Simon Trott, the head of its iron ore division, says that while rail cars that are made in Western Australia will cost more, it makes sense to support local manufacturing. The rail cars will initially be made by Gemco Rail in Perth, but production will eventually shift to a manufacturing and maintenance hub in the Pilbara. Trott adds that supply disruptions caused by the COVID-19 pandemic highlighted the value of local manufacturing.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GEMCO RAIL PTY LTD

BHP at odds with Andrew Forrest on role of hydrogen in clean energy future

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Original article by David Newell
The West Australian – Page: Online : 6-Jun-23

Lee Levkowitz says she sees hydrogen only playing a small role in the world’s clean energy future, albeit a potentially lucrative one, with Levkowitz being head of head of energy, carbon and technology research at BHP. Her sentiments are at odds with Andrew Forrest, who has effectively tied the future of his Fortescue Metals Group to the development of green hydrogen, although they are similar to those previously expressed by rival mining company Rio Tinto, with its chief scientist Nigel Steward having stated he does not see hydrogen as an "energy carrier".

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

Three years on, Rio Tinto says Juukan disaster remains a deep stain

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Original article by Nick Toscano
Brisbane Times – Page: Online : 25-May-23

Wednesday marked the third anniversary of Rio Tinto’s ill-fated destruction of ancient Indigenous rock shelters at Juukan Gorge in the Pilbara. Rio Tinto’s actions attracted global condemnation, a federal parliamentary inquiry and the resignation of senior executives such as former CEO Jean-Sebastien Jacques. Rio Tinto’s current chairman Dominic Barton says Juukan Gorge is a deep stain on the company’s history that it has to deal with. Restoring trust with Indigenous communities and improving Rio Tinto’s cultural heritage processes have been top priorities for the company’s current leadership team.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Union fights BHP labour-hire pay

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 24-May-23

The Mining & Energy Union has applied to the Fair Work Commission to hold a ballot on protected industrial action against BHP regarding its in-house labour hire firm. The proposed industrial action by employees of BHP’s Operation Services division follows nearly six months of negotiations over a new pay deal, which has been rejected by a majority of the 4,500-strong workforce. The union also wants the FWC to reject a new maintenance agreement that was backed by a majority of OS staff in March; the union contends that BHP did not properly explain to workers the difference in pay and hours between the industry award and this agreement.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINING AND ENERGY UNION, AUSTRALIA. FAIR WORK COMMISSION

Rinehart’s dire mining prediction

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Original article by John Stensholt
The Australian – Page: 13 & 18 : 17-May-23

Mining magnate Gina Rinehart notes that mining capital expenditure is currently about $40bn a year, compared with more than $100bn annually at the peak of the previous mining boom about a decade ago. Rinehart describes the $60bn investment gap as a missed opportunity for Australia. She contends that government policy needs to be more supportive of the resources sector if Australia is to continue to produce future-facing commodities that are needed for the energy transition. Rinehart adds that the remaining mine life of Hancock Prospecting’s Roy Hill project is about 10 years, but this can be extended if the regulatory regime is more amenable.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD

Push for BHP boss to give evidence in Brazil dam disaster

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Original article by Simon Johanson
The Age – Page: Online : 17-May-23

The class action against BHP over the Samarco tailings dam collapse in 2015 is slated to be heard by the UK’s High Court in October 2024. The class action is being led by British law firm Pogust Goodhead; global managing partner Tom Goodhead says the firm wants senior BHP executives to give evidence if the case proceeds to trial, potentially including current CEO Mike Henry. He adds that the firm wants BHP to "do the right thing" and attempt to reach a settlement in the case, more than seven years after the disaster that claimed 19 lives and caused an environmental catastrophe.

CORPORATES
BHP GROUP LIMITED – ASX BHP, POGUST GOODHEAD, HIGH COURT OF ENGLAND AND WALES, SAMARCO MINERACAO SA

BHP to sit out battle for miner Teck

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 17-May-23

BHP CEO Mike Henry addressed the annual Bank of America Merrill Lynch conference in Barcelona on Tuesday. He said the resources group will maintain a "disciplined" approach to mergers and acquisitions, and its focus will be on internal growth options such as nickel, copper and the Jansen potash project in Canada. Sources have indicated that BHP is unlikely to enter any bidding war for Teck Resources, given that its copper mines are the only assets that would be of real interest. BHP would not want to increase its exposure to coking coal via the acquisition of Teck, given that it is already trying to sell some existing mines.

CORPORATES
BHP GROUP LIMITED – ASX BHP, TECK RESOURCES LIMITED

Rio beats weather, tops iron ore export record

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Apr-23

Rio Tinto has advised that its flagship Pilbara operations produced 79.2 million tonnes of iron ore during the March quarter, which is 11 per cent higher than the same period in 2022. The resources group drew upon its stockpiled iron ore to increase its shipments by 16 per cent year-on-year to 82.54 million tonnes; this eclipsed Rio Tinto’s previous first-quarter record of 80.31 million tonnes, which was set in 2018. Rio Tinto will be on track to meet its full-year export guidance of 320-335 million tonnes if this rate of shipments is sustained for the rest of the year. The first quarter of a calendar year tends to be the weakest for Australian miners, as export volumes are often disrupted by adverse weather events.

CORPORATES
RIO TINTO LIMITED – ASX RIO

OZ Minerals boss Andrew Cole won’t follow his mines to BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 19-Apr-23

OZ Minerals CEO Andrew Cole intends to "take a break" after more than eight years at the helm of the copper and nickel miner, and he will not join BHP when the $9.6bn takeover is completed. BHP is paying $28.25 per share for OZ; the company’s shares were trading at around $3 when Cole was appointed CEO in late 2014. Cole is highly regarded within the resources sector, and some Newcrest Mining shareholders had called for him to be recruited to succeed Sandeep Biswas following the latter’s departure in December.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM

Mincor board backs Forrest’s $760m takeover bid

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 5-Apr-23

Mincor Resources’ directors have recommended that shareholders accept the $1.40-per-share takeover offer from Wyloo Metals in the absence of a rival bid. The Andrew Forrest-backed Wyloo has increased its stake in nickel producer Mincor to 23.2 per cent, enabling it to prevent any rival bidder to move to the compulsory acquisition stage. There had been speculation that Wyloo’s takeover proposal could trigger rival bids for Mincor, whose board has indicated that it has held talks with third parties regarding potential interest in a bid. However, the board says that no alternative proposal is under consideration.

CORPORATES
MINCOR RESOURCES NL – ASX MCR, WYLOO METALS PTY LTD