MINING CORPORATIONS – AUSTRALIA

Success against virus boosts rare earths

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Original article by Angus Grigg
The Australian Financial Review – Page: 2 : 4-Jun-20

Rare earths miner Hastings Technology Metals has secured a 10-year off-take agreement with German automotive parts group Schaeffler. Hastings COO Andrew Reid says Schaeffler was keen to finalise the agreement given that rare earths supply from China has been disrupted by the pandemic and Australia has performed well in containing the coronavirus. Hastings aims to commence work on a rare earths processing plant in Western Australia in 2021, with initial production by 2023.

CORPORATES
HASTINGS TECHNOLOGY METALS LIMITED – ASX HAS,SCHAFFLER TECHNOLOGIES AG

Fortescue facing massive compo bill

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Original article by Brad Thompson
The Australian Financial Review – Page: 3 : 30-May-20

The High Court has rejected Fortescue Metals Group’s bid to overturn a previous Federal Court ruling in favour of the Yindjibarndi Aboriginal Corporation. The case centred on the traditional owners’ native title claim over some 2,700 sq km of land in Western Australia’s Pilbara region; the land in question contains Fortescue’s Solomon iron ore mining hub. The YAC is now expected to seek compensation from Fortescue; this is likely to comprise a percentage of Fortescue’s revenue from iron ore mining in WA.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, YINDJIBARNDI ABORIGINAL CORPORATION, HIGH COURT OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA

Rio Tinto blasting of Juukan Gorge Indigenous site prompts call for heritage protections

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Original article by Toby Hussey, Karen Michelmore, Holly Ferguson
abc.net au – Page: Online : 29-May-20

Rio Tinto recently destroyed two ancient rock caves in Western Australia’s Pilbara region as a result of blasting activity. It had secured permission for the blasting in 2013 under section 18 of the Aboriginal Heritage Act, which allows landowners to seek exemption from laws that ban work that is likely to impact Aboriginal sites. WA Mining and Pastoral Region MP Robin Chapple has called on Aboriginal Affairs Minister Ben Wyatt to review all approved Section 18 notices following the destruction of the caves. Chris Salisbury, the CEO of iron ore at Rio Tinto, says the company takes cultural heritage "very seriously".

CORPORATES
RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF INDIGENOUS AFFAIRS

Australia relaxed over China’s changes to iron ore export rules, but war of words goes on

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Original article by Ben Doherty
The Guardian Australia – Page: Online : 22-May-20

BHP and Fortescue Metals Group have welcomed China’s decision to relax its inspection rules for iron ore shipments. From 1 June, customs officials will only inspect batches of iron ore if this is requested by the importer or trader; all shipments were previously subject to mandatory inspection on arrival in China. Minerals Council of Australia CEO Tania Constable says the new customs procedures recognise the high quality of Australian iron ore. However, the Chinese media has warned that growing trade tensions could potentially hit Australia’s iron ore exports. Australia supplies 62 per cent of China’s iron ore.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERALS COUNCIL OF AUSTRALIA

Iron ore rally tempts marginal miners back

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 20-May-20

Shares in Australian iron ore producers rallied on 19 May, as the price of the steel input approaches $US100 a tonne. The iron ore price has gained about 17 per cent since the end of April, boosting the prospects of marginal iron ore projects as well as the major producers. Nathan River Resources recently received regulatory approval to resume mining at its Roper Bar project in the Northern Territory. It is expected to shortly commence exports of about one million tonnes of iron ore.

CORPORATES
NATHAN RIVER RESOURCES

China pays more for iron ore

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 16 : 19-May-20

The iron ore price has risen by more than 13 per cent since the end of April, and futures pricing suggests that further gains are likely. The price of the steel input has been resilient during the coronavirus pandemic, due to factors such as continued strong demand for iron ore in China and the fact that major producer Brazil has been hit hard by the virus. Citigroup’s analysts expect the continued strong price of iron ore to result in the resources sector paying out $14.4bn in dividends for 2019-20. The banking sector in turn is tipped to pay out $14.7bn.

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

Rio boss warns of volatility, nationalism

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

Rio Tinto CEO Jean-Sebastien Jacques has warned that global commodity markets will continue to experience volatility in the wake of the coronavirus pandemic, while global GDP growth will be hit. Jacques says is too soon to know whether there will be a V-shaped economic recovery. He also says the movement of people and goods will be restricted in the wake of the pandemic, while there could be a fundamental shift in global wealth distribution. Jacques noted that Rio Tinto’s mining operations will be affected by an increase in geopolitical tensions in the post-pandemic environment.

CORPORATES
RIO TINTO LIMITED – ASX RIO

V-shaped recovery unlikely: BHP

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Original article by Nick Evans
The Australian – Page: 13 : 13-May-20

BHP CEO Mike Henry expects global demand for copper and steel to fall sharply in the wake of the coronavirus pandemic, while he warns that demand for oil may not return to pre-virus levels for at least 18 months. Henry has told a Bank of America conference that a V-shaped economic recovery is now unlikely, except in China, and he has signalled that BHP will further reduce exploration capital expenditure when its 2019-20 full-year results are released.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Win for unions in BHP workplace fight

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 11-May-20

A Fair Work Commission review panel has overturned a decision by deputy president Gerard Boyce to approve two enterprise agreements for employees of BHP’s Operations Services subsidiary. The Construction, Forestry, Maritime, Mining & Energy Union is among four unions that appealed against the December 2019 ruling. National secretary Tony Maher claims that BHP had intended to use the Operations Services business to reduce wages and conditions in the mining sector. The full bench of the FWC will decide whether to approve the disputed enterprise agreements.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIA. FAIR WORK COMMISSION, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Price collapse burying 31pc of coal mines

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Original article by Peter Ker
The Australian Financial Review – Page: 14 & 16 : 11-May-20

The coronavirus pandemic has resulted in a sharp fall in demand from major thermal coal buyers such as Japan and India. This has in turn seen the price of top quality coal from New South Wales and Queensland falling by 27 per cent and 30 per cent respectively. Rory Simington of Wood Mackenzie estimates that about 31 per cent of Australia’s thermal coal exports are unprofitable at current prices. He adds that a significant proportion of Australia’s coal output is sold via long-term contracts. However, the recent price falls will eventually flow through to future contracts.

CORPORATES
WOOD MACKENZIE