MINING CORPORATIONS – AUSTRALIA

Core strategy will remain: BHP

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Original article by Nick Evans
The Australian – Page: 20 : 30-Oct-19

BHP’s chief transformation officer Jonathan Price will address the IMARC mining conference in Melbourne on 30 October. He will argue that while technology such as automation and big data will have a key role in the mining sector in the future, BHP’s focus will continue to be on large resources projects with long production lives. In contrast, Rio Tinto CEO Jean-Sebastien Jacques recently suggested that big mining companies may shift their focus to developing smaller projects that can upscaled later on.

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

Forrest baulks at sugar hit pledges

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Original article by Perry Williams
The Australian – Page: 17 & 20 : 30-Oct-19

Fortescue Metals Group chairman Andrew Forrest has criticised iron ore rivals such as BHP and Rio Tinto for their stance on issues such as Scope 3 emissions and gender parity. He has described their announcements on such issues as "sugar hits" that have no real substance. Fortescue CEO Elizabeth Gaines has told the pure-play miner’s AGM that its own Scope 1 and Scope 2 emissions are a priority, rather than the emissions of its customers. Meanwhile, 24.72 per cent of votes cast at the AGM rejected Fortescue’s remuneration report.

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

Slow restart at Samarco will be small beer for Australian miners

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 29-Oct-19

Lachlan Shaw of National Australia Bank says the resumption of production at the Samarco joint venture in Brazil is unlikely to have much impact on Australia’s iron ore exporters. BHP and Vale has been granted environmental approval to resume production in late 2020. Shaw notes that based on the initial production rate that has been flagged, it would take about 10 years for production at Samarco to return to the levels prior to the tailings dam disaster in November 2015.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO

BHP, Vale to resume at Samarco

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Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 28-Oct-19

BHP and Vale are hopeful of resuming production at their Samarco joint venture’s Germano iron ore mine in Brazil by late 2020. This follows the granting of a Corrective Operating Licence for the mine by Minas Gerais state’s environmental regulator. The mine has been closed since a tailings dam collapse in November 2015. BHP has indicated that restarting Germano is dependent on Samarco receiving funding for a new filtration plant at the mine.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

Flush Fortescue now close to net cash

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 25-Oct-19

Pure-play iron ore miner Fortescue Metals Group has advised that its shipments totalled 42.2 million tonnes in the September quarter. Fortescue has maintained its full-year export guidance of 170-175 million tonnes. The company received an average price of $US85 per tonne during the quarter, which is 89 per cent higher than the previous corresponding period. Fortescue reduced its net debt to $US500m ($730m) during the quarter, while it has gross debt of $US3.9bn.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MORGANS FINANCIAL LIMITED

Rio sharpens axe as costs hit aluminium smelters

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 & 22 : 24-Oct-19

Rio Tinto has advised that its Tiwai Point aluminium smelter is under review and could be shut down because high energy costs and the low price of aluminium mean that it is currently not profitable. Rio Tinto has a 79.36 per cent stake in the smelter, which employs about 1,000 people. The future of Rio Tinto’s smelters in Tasmania, Queensland and New South Wales is also uncertain, as is Alcoa’s Portland smelter in Victoria.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCOA INCORPORATED, PACIFIC ALUMINIUM PTY LTD, SUMITOMO CHEMICAL COMPANY LIMITED, MERIDIAN ENERGY LIMITED – ASX MEZ, AUSTRALIAN ALUMINIUM COUNCIL LIMITED

Rio eyes US lithium market with pilot plant

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Original article by Nick Evans
The Australian – Page: 19 : 23-Oct-19

Rio Tinto has approved the development of a $US10m ($14.6m) pilot plant that will produce lithium from waste rock at its borate operations in the US. Rio Tinto executive Bold Baatar says the company could potentially become the largest producer of battery-grade lithium in the US. Rio Tinto may invest $US50m in a full-scale processing plant if the trials are successful, producing about 5,000 tonnes of lithium carbonate equivalent each year.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALBERMARLE CORPORATION, KIDMAN RESOURCES LIMITED, WESFARMERS LIMITED – ASX WES, IONEER LIMITED – ASX INR

BHP dumps coal for green energy

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Original article by Perry Williams
The Australian – Page: 19 : 22-Oct-19

BHP has secured four contracts to supply renewable energy to its Escondida and Spence copper mines in Chile for 15 years. BHP’s 2019-20 half-year accounts will include a $US780m ($1.14bn) provision associated with the cancellation of existing coal supply contracts. The company estimates that the new contracts will displace about three million tonnes of carbon each year from 2022 and reduce energy prices at the two mines by around 20 per cent. BHP recently committed to spending $US400m over five years to minimise climate risks.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, COAL21, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY

Clock ticking on South32 manganese smelter jobs

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

Diversified miner South32 has reported that production at its Illawarra metallurgical coal mines increased by 30 per cent quarter-on-quarter in the three months to September, while manganese ore production rose by 10 per cent. South32 has also advised that it is continuing to review the TEMCO manganese alloy smelter in Tasmania, and it will further update the market in the March 2020 quarter. Closure of the smelter would result in the loss of about 250 jobs; other options include selling or mothballing the facility.

CORPORATES
SOUTH32 LIMITED – ASX S32, TASMANIAN ELECTRO METALLURGICAL COMPANY PTY LTD

BHP holds out against activist push

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 18-Oct-19

BHP CEO Andrew Mackenzie has defended its membership of mining industry groups such as the Minerals Council of Australia and associated entities like Coal 21, amid growing pressure from activist groups and shareholders. Meanwhile, BHP has advised that scheduled maintenance work at Port Hedland resulted in its Pilbara iron ore production falling three per cent to 69 million tonnes in the September quarter. BHP has also approved additional expenditure of $US344m on the Jansen potash project in Canada, ahead of a final investment decision in February 2021.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, COAL 21