MINING CORPORATIONS – AUSTRALIA

High energy prices force Rio to the table

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Original article by Perry Williams
The Australian – Page: 17 & 20 : 26-Nov-19

The future of Rio Tinto’s Tomago, Boyne and Bell Bay aluminium smelters in Australia remains under scrutiny amid high energy prices and weak demand for aluminium. CEO Jean-Sebastien Jacques notes that energy costs accounts for a third of the company’s cost structure, adding that energy costs in Australia are very high by global standards. He says Rio Tinto is holding talks with governments at federal and state level regarding energy costs. The future of Alcoa’s Portland smelter in Victoria is also uncertain, with a state government subsidy due to expire in 2021.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCOA OF AUSTRALIA LIMITED, CSR LIMITED – ASX CSR, RUSAL

How BHP’s chairman tamed Elliott Management

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Original article by Peter Ker, James Thomson
The Australian Financial Review – Page: 13 & 18 : 25-Nov-19

BHP chairman Ken MacKenzie has stressed the importance of engaging with activist investors in a professional manner, rather than taking a defensive stance. He adds that an activist investor will usually be well prepared before they make contact with a company that they are targeting, and they will almost certainly already be a shareholder. US-based activist hedge fund Elliott Management remains on BHP’s share register several years after its unsuccessful campaign for a restructuring of the resources giant. MacKenzie has described Elliott as "a terrific shareholder".

CORPORATES
BHP GROUP LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, TRIBECA INVESTMENT PARTNERS PTY LTD

MinRes to keep lithium mine running

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Original article by Nick Evans
The Australian – Page: 19 : 21-Nov-19

Mineral Resources has advised that output at its Mount Marion mine in Western Australia is still expected to be within the range of 360,000 to 380,000 tonnes of lithium concentrate in 2019-20, at an average cost of nearly $600 a tonne. CEO Chris Ellison has told the group’s annual meeting that concentrate grading six per cent lithium has fetched around $US600 ($879) per tonne in recent months, after averaging $1,182/tonne in 2018-19. He added that Mineral Resources’ earnings are currently being driven by its iron ore and mining services operations.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, ALBERMARLE CORPORATION, PILBARA MINERALS LIMITED – ASX PLS, ALITA RESOURCES LIMITED – ASX A40, GALAXY RESOURCES LIMITED – ASX GXY, ALTURA MINING LIMITED – ASX AJM

Gaines proves her mettle

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Original article by Glenda Korporaal
The Australian – Page: 18 : 21-Nov-19

Fortescue Metals Group CEO Elizabeth Gaines is ranked second in Fortune magazine’s 2019 list of the world’s most successful business leaders. Gaines is the first woman to make the annual list. Fortune notes that the pure-play iron ore miner delivered 263 per cent profit growth and revenue growth of 45 per cent in 2018-19, with both metrics rising to record levels in Gaines’ first full financial year at the helm. Meanwhile, Fortescue has achieved a total return of 90 per cent since Gaines was appointed in February 2018, increasing its market value to around $US20bn ($29.4bn).

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio’s ERA equity raising challenged

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

Zentree Investments has asked the Takeovers Panel to intervene in Energy Resources of Australia’s proposed $476m capital raising. The proceeds of the entitlement offer will be used to help meet the cost of rehabilitation work at the Ranger uranium mine in the Northern Territory. Zentree is concerned that the capital raising will allow Rio Tinto to increase its 68.4 per cent stake in ERA while gaining access to its tax losses and franking credits. Zentree is ERA’s second-largest shareholder.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, ZENTREE INVESTMENTS PTY LTD, AUSTRALIA. TAKEOVERS PANEL

Saracen bets $1.1b on gold mine

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Original article by Peter Ker, Brad Thompson
The Australian Financial Review – Page: 16 : 19-Nov-19

Saracen Mineral Holdings MD Raleigh Finlayson believes that gold production at Kalgoorlie’s Superpit will continue for many years, noting that much of the mineralisation to the south of the mine has yet to be explored. Saracen will fund its $1.1bn acquisition of Barrick Gold’s 50 per cent stake in the mine via a $796m capital raising and a $450m debt facility. The gold price was trading at around $US1,467 an ounce on 18 November.

CORPORATES
SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, VAN ECK ASSOCIATES CORPORATION, WROXBY PTY LTD

Saracen goes for gold with $1bn swoop on Super Pit half-stake

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Original article by Perry Williams, Nick Evans
The Australian – Page: 17 & 18 : 18-Nov-19

Sources have suggested that Saracen Mineral Holdings will seek to tap investors for more than $600m to help finance the acquisition of Barrick Gold’s 50 per cent stake in the Super Pit mine in Western Australia. Final bids for the stake were lodged on 15 November, and Barrick is expected to shortly announce Saracen as the successful bidder. The sale price is believed to exceed $1bn. Newmont Goldcorp is expected to seek a buyer for its 50 per cent stake in the gold mine.

CORPORATES
SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION, NEWMONT GOLDCORP, NORTHERN STAR RESOURCES LIMITED – ASX NST

BHP’s new CEO Mike Henry vows to accelerate productivity push

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Original article by Nick Toscano, Colin Kruger
Brisbane Times – Page: Online : 14-Nov-19

BHP CEO Andrew Mackenzie will step down at the end of 2019 after more than six years in the role. He will be succeeded by mining industry veteran Mike Henry, who will receive a base salary of $US1.7m ($2.5m). Henry, who has been the head of BHP’s Australian minerals division since 2016, says he will spend the next 45 days holding meetings with BHP staff across its global operations. Henry was regarded as a leading internal candidate to succeed Mackenzie.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Rio workers exposed to toxic gas

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 14-Nov-19

Rio Tinto was issued with a prohibition notice on 21 October, after workers at the Tom Price iron ore hub in the Pilbara were exposed to a toxic gas in September. Western Australia’s Department of Mines, Industry Regulation & Safety ordered the temporary closure of the open pit and required Rio Tinto to improve monitoring systems and safety procedures at the site. Rio Tinto has taken remedial action and advised that the incident will not affect its 2019 output from the Pilbara. Production at the Tom Price hub began in 1966.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY

Autopilot anger over BHP’s robots

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Original article by Matthew Stevens
The Australian Financial Review – Page: 32 : 14-Nov-19

Politicians and union leaders responded with somewhat predictable outrage to BHP’s plans to fully automate the fleet of haulage trucks at its Goonyella coal mine in Queensland. However, the move to driverless trucks should not have been a surprise, given that BHP has been actively deploying the technology at its Pilbara iron ore mines in recent years. The BHP Mitsubishi Alliance has also consulted with Goonyella’s workforce and the local community with regard to the automation strategy, while it has committed to creating additional jobs as well as retaining all current employees.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, LIBERAL-NATIONAL PARTY OF QUEENSLAND