MINING CORPORATIONS – AUSTRALIA

Iron ore war rages as BHP ramps up

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Original article by Nick Evans
The Australian – Page: 13 & 19 : 22-Jul-20

BHP has advised that production at its Pilbara iron ore mines rose to a record 281 million tonnes in 2019-20, while shipments totalled 283.3 million tonnes. BHP has forecast that its iron ore shipments for 2020-21 will be within the range of 276 to 286 million tonnes. BHP’s average realised price for iron ore rose by 16 per cent in 2019-20 to $US77.36 a wet metric tonne, excluding shipping costs. Meanwhile, Brazilian rival Vale has reported iron ore output of 25.1 million tonnes for June, and it still expects full-year production of between 310 and 330 million tonnes.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA

Up $11bn, Forrest has a profitable pandemic

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Original article by John Stensholt
The Australian – Page: 15 : 22-Jul-20

The share price of pure-play iron ore miner Fortescue Metals Group has more than doubled since March. Its market capitalisation topped $51bn on 21 July, making it one of the 10 biggest companies on the Australian sharemarket. Fortescue’s founder Andrew Forrest is now estimated to have total wealth of about $20bn, with the value of his stake in the company having increased by more than $11bn since the coronavirus-induced sharemarket rout in mid-March. Forrest and his wife are also high-profile philanthropists, having donated more than $2bn to their Minderoo charitable foundation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, THE MINDEROO FOUNDATION PTY LTD

Fortescue rides iron ore boom

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 14-Jul-20

Data from Port Hedland shows that its iron ore export volumes rose to a record 51.8 million in June, and 281 million tonnes in the year to date. This is six per cent higher than the same period in 2019, and Glynn Lawcock of UBS says Fortescue Metals Group may exceed its guidance of 175 to 177 million tonnes for 2019-20. He adds that the strength of the iron ore price and high shipping volumes could see Fortescue announce a final dividend of $0.98 per share, compared with the consensus forecast of $0.80.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD

Mining heavyweights pass virus test

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 13-Jul-20

Mineral Resources began swab-screening its ‘fly in, fly out’ workforce for COVID-19 in April. It subsequently began offering its services to other mining companies, and has tested employees from firms such as BHP, Northern Star Resources and Ramelius Resources. It operates drive-through testing hubs in Perth, Mandurah, Kalgoorlie and Port Hedland, along with screening centres in Geraldton, Esperance and Busselton. Mineral Resources COO Mike Grey says the company is proud of the role it has played in keeping the Western Australian resources sector operating during the pandemic and protecting the health and jobs of the sector’s employees.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, BHP GROUP LIMITED – ASX BHP, NORTHERN STAR RESOURCES LIMITED – ASX NST, RAMELIUS RESOURCES LIMITED – ASX RMS, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

NZ closure sparks fears for Australian smelters

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 10-Jul-20

The future of Rio Tinto’s loss-making aluminium smelters in Australia is again under scrutiny following the announcement that its Tiwai Point smelter in New Zealand will be shut down. Rio Tinto CEO Jean-Sebastien Jacques indicated in 2019 that the fate of the smelters in New South Wales, Queensland and Tasmania is uncertain. The Australian Aluminium Council has warned that smelters will not be viable unless action is taken to reduce energy costs. The future of Alcoa’s government-subsidised Portland smelter in Victoria is also in doubt.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN ALUMINIUM COUNCIL LIMITED, ALCOA OF AUSTRALIA LIMITED, ALCOA INCORPORATED

Call to strip Rio of global ranking

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Original article by Victoria Laurie
The Australian – Page: 5 : 9-Jul-20

Rio Tinto is the highest-ranking mining company on the annual Corporate Human Rights Benchmark, which assesses 200 of the world’s largest listed companies in terms of their human rights record. Indigenous and human rights groups have called for Rio Tinto to be removed from the Benchmark in response to its destruction of ancient rock shelters in the Pilbara. Vale was suspended from the Benchmark in 2019 following a dam collapse in Brazil.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CORPORATE HUMAN RIGHTS BENCHMARK, VALE SA

Big banks accused of climate hypocrisy

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Original article by James Fernyhough
The Australian Financial Review – Page: 20 : 8-Jul-20

Market Forces estimates that Australia’s four major banks have provided a combined $35.5bn worth of loans for fossil fuel projects since 2016. The activist group, which is affiliated with Friends of the Earth, contends that this is inconsistent with their commitment to the Paris climate agreement. National Australia Bank’s chief risk officer Shaun Dooley recently stated that the bank aims to assist business customers to transition away from fossil fuels, due to the economic impact of a complete and rapid withdrawal from the sector.

CORPORATES
MARKET FORCES, FRIENDS OF THE EARTH, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Elizabeth Gaines – the driving force behind Fortescue Metals Group

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Original article by Rachel Pupazzoni
abc.net.au – Page: Online : 29-Jun-20

Pure-play iron ore miner Fortescue Metals Group is seeking to diversify its operations under current CEO Elizabeth Gaines, who took the helm in 2018. This could include exploring for minerals such as copper and gold in South America and hydrogen in Western Australia. Gaines grew up in Halls Creek in the Kimberley region of WA, which has a large indigenous population. Her father was a local school headmaster, who actively sought to ensure that indigenous people were integrated into the broader community. Fortescue founder Andrew Forrest adopted a similar policy of full integration at the world’s fourth-biggest iron ore miner, where indigenous people account for 15 per cent of its Pilbara workforce.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

‘Gushing cash’: iron ore miners a yield hunter favourite

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Original article by William McInnes
The Australian Financial Review – Page: 29 : 24-Jun-20

The price of iron ore has risen by nearly 40 per cent since the start of 2020, and it peaked at more than $US100 a tonne in May amid supply disruptions in Brazil. Dion Hershan of Yarra Capital Management and Peter Gardner of Plato Investment Management are both bullish about BHP, Rio Tinto and Fortescue Metals Group. They cite factors such as the major iron ore producers’ strong cash flows and high dividend yields. However, Romano Sala Tenna of Katana Asset Management says they do not offer compelling value, although he says the sector is still appealing compared with the rest of the market.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, YARRA CAPITAL MANAGEMENT, PLATO INVESTMENT MANAGEMENT LIMITED, KATANA ASSET MANAGEMENT LIMITED

BHP buy bolsters nickel operation

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Original article by Nick Evans
The Australian – Page: 15 : 22-Jun-20

BHP is believed to have paid Norilsk Nickel almost $US30m for the Honeymoon Well nickel project in Western Australia. The deposit is estimated to contain about 1.2 million tonnes of nickel; the deal demonstrates BHP’s commitment to the commodity and its Nickel West business. BHP will also shortly resume underground mining at its Leinster project. The nickel price has rebounded from a low of around $US11,000 a tonne in March to nearly $US13,000 a tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NORILSK NICKEL