MINING CORPORATIONS – AUSTRALIA

BHP to trial own contact tracing app on sites

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Original article by Nick Evans
The Australian – Page: 16 : 8-May-20

BHP will shortly commence field trials of a coronavirus contact-tracing app that has been developed in-house. BHP will initially trial the app at its mines in Chile, although the app may be rolled out across its global operations. BHP has stressed that employees and contractors can choose not to use the app, and it says data gathered by the app will only be accessed by the company’s health and safety officers. BHP is also encouraging its Australian employees to download the federal government’s COVIDSafe app.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Energy key to recovery, says Rio

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 8-May-20

Rio Tinto CEO Jean-Sebastien Jacques has told the resources group’s Australian annual meeting that its local aluminium assets are "very well run" and high power costs is their main problem. He emphasised the need for a "viable and sustainable solution" to this problem; he added that high energy prices will also be a key issue for the federal government in restarting the domestic economy in the wake of the coronavirus pandemic. Jacques also said it now appears to be ‘business as usual’ in China, which is Australia’s key iron ore export market.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PACIFIC ALUMINIUM PTY LTD

Single virus case could shut us down: mine boss

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 7-May-20

The coronavirus pandemic has had less impact on the mining industry than other sectors of the Australian economy. However, Northern Star Resources’ executive chairman Bill Beament has warned against complacency, arguing that a mine would be completely shut down if just one case of the virus were detected at the site. Saracen Mineral Holdings CFO Morgan Ball agrees that it is too soon to relax COVID-19 restrictions in the sector. Meanwhile, major resources groups support the Western Australian government’s plan to step up the testing of fly-in, fly-out workers for the virus.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR

Full steel ahead for Fortescue as China draws down ore stockpiles

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 6-May-20

Fortescue Metals Group CEO Elizabeth Gaines expects demand for iron ore to remain strong due to China’s urbanisation policy. China produced 234.5 million tonnes of crude steel in the March quarter, which is 1.2 per cent higher than the same period in 2019. Gaines says that any additional economic stimulus in China would further boost demand for steel, and therefore iron ore. Meanwhile, Gaines is confident that Fortescue’s application to increase its export capacity at Port Hedland by 20 per cent will be approved.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

FMG gives BHP nod at Port Hedland

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 4-May-20

BHP and Fortescue Metals Group are both seeking to increase their iron ore export capacity at Port Hedland, by 14 per cent and 20 per cent respectively. Fortescue CEO Elizabeth Gaines says Port Hedland would be able to cope with increased shipments, although she stresses that applying for extra capacity does not necessarily mean that the iron ore giants will increase production and export volumes. Gaines also expects demand for iron ore to remain strong in China, as the nation’s urbanisation program fuels continued growth in steel production.

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

Fortescue upbeat as cash rolls in

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Original article by Nick Evans
The Australian – Page: 16 : 1-May-20

Fortescue Metals Group has advised that it ended March with a net cash position for the first time since it commenced iron ore exports in 2008. It had a net cash position of $US100m, compared with net debt of $US2.9bn previously. Fortescue’s production report for the March quarter also shows that its shipments rose by 10 per cent to 42.3 million tonnes during the period. It now expects total shipments of up to 177 million for 2019-20; its previous guidance was for export volumes of up to 175 million tonnes.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP aims to lift Pilbara exports

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Original article by Nick Evans
The Australian – Page: 20 : 29-Apr-20

BHP’s iron ore export capacity at Port Hedland is currently 290 million tonnes per annum, but the resources group will seek approval to lift this by up to 40 million tonnes. This could increase BHP’s revenue from its Pilbara operations by around $5bn a year, based on the current iron ore price of around $US80 per tonne. Hayden Bairstow of Macquarie says BHP could increase its Pilbara exports to 300mtpa without the need for ‘material’ capital expenditure. Fortescue Metals Group has also flagged plans to increase its Pilbara export volumes.

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

Right as rain: Evolution sticks to guidance

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 24-Apr-20

Evolution Mining has advised that its gold production fell by three per cent to 165,502 ounces in the March quarter, while it still expects full-year output of about 725,000 ounces. This excludes the contribution of the Red Lake mine in Canada, which it acquired from Newmont Goldcorp. Meanwhile, Evolution has indicated that concerns about water supply at the Cowal mine in drought-affected New South Wales have eased due to recent rainfall and the completion of a water pipeline upgrade.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLDCORP CORPORATION

Chinese demand has BHP optimistic

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Original article by Nick Evans
The Australian – Page: 16 : 22-Apr-20

BHP produced 68 million tonnes of iron ore in the March quarter, a year-on-year increase of four per cent. Production for the first nine months of 2019-20 rose to a record 205 million tonnes. BHP notes that demand for iron ore in China remains strong, but it has flagged a potential double-digit fall in steel production outside of China in 2020. BHP’s quarterly production report also shows that output at its coal mines in Queensland was 16 per cent lower than in the December quarter and seven per cent lower year-on-year.

CORPORATES
BHP GROUP LIMITED – ASX BHP

BHP iron ore shipments steady as Vale falls short

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 21-Apr-20

BHP will release its quarterly update on 21 April, and analysts estimate that its Pilbara iron ore shipments totalled 68 million tonnes in the first three months of 2020. This means BHP should be on track to achieve its full-year guidance for iron ore exports. Fortescue Metals Group also seems set to achieve record export volumes for the year. Brazilian iron ore giant Vale recently advised that it produced 59.6 million tonnes of iron ore fines in the March quarter, which is well below its revised target of 68-73 million tonnes.

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