MINING CORPORATIONS – AUSTRALIA

BHP taps CSL’s Lamont for Beaven role

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 18-Jun-20

BHP has advised that David Lamont will succeed Peter Beaven as chief financial officer in December. Lamont has been CFO of listed biotechnology group CSL since 2016, and he was previously the CFO of mining company MMG. Beaven will remain at BHP until early 2021 during a transition phase. Macquarie Group notes that BHP generally appoints internal candidates to senior executive roles. Macquarie has retained its ‘outperform’ rating on BHP.

CORPORATES
BHP GROUP LIMITED – ASX BHP, CSL LIMITED – ASX CSL, MMG LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

Fortescue fast-tracks carbon-cutting plan

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Original article by Nick Evans
The Australian – Page: 15 : 17-Jun-20

Fortescue Metals Group has announced a revised target of 2040 to achieve net-zero operational carbon emissions. The pure-play iron ore miner also aims to reduce its scope 1 and scope 2 emissions from existing operations by 26 per cent over the next decade. However, Fortescue has not set any emission reduction targets for its Iron Bridge magnetite project, advising that it will outline separate targets for the project when it becomes operational in mid-2022. Fortescue continues to resist setting scope 3 emission reduction targets.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio set indigenous precedent at Argyle

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Original article by Victoria Laurie
The Australian – Page: 5 : 16-Jun-20

Professor Ciaran O’Faircheallaigh of Griffith University says a clause in Rio Tinto’s agreement with traditional owners regarding the Argyle diamond mine could be used to protect heritage sites in the Pilbara. The agreement signed in 2005 ensures that Rio Tinto cannot use section 18 of the Aboriginal Heritage Act to destroy sites that are of cultural significance to indigenous people. Rio Tinto’s recent blasting that destroyed ancient rock caves at its Brockman mine had been approved under section 18 in 2013.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GRIFFITH UNIVERSITY

Heritage site row forces BHP to hold fire on $5b project

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 & 22 : 12-Jun-20

BHP has halted plans to destroy indigenous heritage sites as part of its development of the US3.6 billion ($5.2 billion) South Flank iron ore mine in Western Australia. The mine is slated to produce 80 million tonnes of ore per annum, with the WA government having given BHP permission to proceed with destruction of the sites in May. BHP has indicated that it will not disturb any of the sites in question until it has had more talks with the Banjima people. The traditional owners had welcomed the opportunities afforded by the development of the South Flank mine when a comprehensive agreement on its development was signed in 2015.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

BHP to destroy at least 40 Aboriginal sites, up to 15,000 years old, to expand Pilbara mine

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Original article by Lorena Allam, Calla Wahlquist
The Guardian Australia – Page: Online : 11-Jun-20

A proposed expansion of BHP’s South Flank iron ore mine that will result in the destruction of rock shelters and other significant indigenous sites was approved by the Western Australian government on 29 May. This was just days after Rio Tinto attracted global criticism for destroying ancient rock shelters during blasting at its Brockman iron ore mine. WA’s Aboriginal Affairs Minister Ben Wyatt has urged BHP to work with the traditional owners to protect the heritage sites.

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

Iron ore surge a $100b elixir for coronavirus

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 21 : 9-Jun-20

The rally in the price of iron ore to more than $US100 a tonne will boost federal government revenue by about $2.3bn. The 2019-20 Budget forecasts were based on the iron ore price averaging about $US62 when shipping costs are included, but it is currently averaging more than $80 a tonne. Australia’s export revenue from iron ore is set to top $100bn in 2019-20, eclipsing the previous annual record of $76bn in 2018-19. Meanwhile, shares in Australia’s three major iron ore producers have rallied since the end of March, and investors are set to receive big dividend payouts for the financial year.

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

Aeris adds gold to copper with $125m Cracow buy

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Original article by Brad Thompson
The Australian Financial Review – Page: 24 : 5-Jun-20

Copper miner Aeris Resources has confirmed a $125 million deal to acquire Evolution Mining’s Cracow gold mine in Queensland. The Cracow mine is forecast to produce between 70,000 and 75,000 ounces of gold in fiscal 2021, while Aeris predicts that Cracow will yield net mine free cash flow of more than $100 million over the first two years of its ownership at the current price of gold. Aeris executive chairman Andre Labuschagne has described the deal as "transformational" for the company. Evolution’s executive chairman Jake Klein says it has no plans to sell other gold mines.

CORPORATES
AERIS RESOURCES LIMITED – ASX AIS, EVOLUTION MINING LIMITED – ASX EVN

Vale fights to meet iron ore guidance

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 4-Jun-20

Macquarie Wealth Management’s analysis of port data shows that BHP, Rio Tinto and Fortescue Metals Group are on track to achieve their iron ore export guidance for 2020. However, Macquarie believes that Brazilian rival Vale will struggle to meet its full-year guidance of 310 million to 330 million tonnes, despite ramping up shipments in the last two weeks. Macquarie estimates that Vale will need to export more than six million tonnes per week to achieve the lower end of its guidance; its weekly shipments have averaged 4.5 million tonnes so far in the June quarter.

CORPORATES
BHP GROUP LIMITED – ASX BHP,RIO TINTO LIMITED – ASX RIO,FORTESCUE METALS GROUP LIMITED – ASX FMG,VALE SA,MACQUARIE WEALTH MANAGEMENT

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