MINING CORPORATIONS – AUSTRALIA

Rio puts Canada IPO plan on hold

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Original article by Rhiannon Hoyle
The Australian – Page: 20 : 1-Oct-19

Mining giant Rio Tinto has advised that it is longer seeking to divest its controlling stake in Iron Ore Co of Canada via a trade sale or IPO. The recent volatility in the price of iron ore has affected the potential sale price of the business, in which Rio Tinto has a 59 per cent stake. Rio Tinto first flagged plans to sell the Canadian business in 2013, and CEO Jean-Sebastien Jacques indicated in 2017 that the resources giant would not hold a "fire sale" of unwanted assets.

CORPORATES
RIO TINTO LIMITED – ASX RIO, IRON ORE COMPANY OF CANADA, MITSUBISHI CORPORATION, LABRADOR IRON ORE ROYALTY INCOME CORPORATION

Rio Tinto teams with China to cut emissions

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 20 : 26-Sep-19

Rio Tinto has signed a memorandum of understanding with China Baowu Steel Group and Tsinghua University to develop strategies aimed at reducing carbon emissions across the steel industry. Steel-making accounts for the bulk of Rio Tinto’s scope 3 emissions, which totalled 536 million tonnes of carbon dioxide equivalent gases in 2018. In contrast, its scope 1 and 2 emissions totalled 28.6 million tonnes. BHP also recently revealed plans to address its scope 3 emissions.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CHINA BAOWU STEEL GROUP CORPORATION LIMITED, TSINGHUA UNIVERSITY, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MARKET FORCES, FRIENDS OF THE EARTH

BHP backs government over Kyoto loophole

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Original article by James Fernyhough
The Australian Financial Review – Page: 20 : 24-Sep-19

BHP CEO Andrew Mackenzie is said to have expressed support for the Coalition’s proposal to use Kyoto carryover credits to meet Australia’s carbon emissions reduction targets under the Paris agreement. Sources have confirmed that Mackenzie did so in a private call with institutional investors on 20 September, although a BHP spokesman has declined to comment. The Minerals Council of Australia and the Business Council of Australia also support the use of carryover credits. Mackenzie had advocated greater action to address climate change earlier in 2019.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIAN CENTRE FOR CORPORATE SOCIAL RESPONSIBILITY, VISION SUPER PTY LTD, INVESTOR GROUP ON CLIMATE CHANGE, UNITED NATIONS

New Hope blasts loophole for activists

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 23-Sep-19

New Hope Corporation’s CEO Shane Stephan has called for the abolition of laws that exempt environmental activists from penalties for engaging in secondary boycotts. He says it is not right that anti-coal activists can target suppliers to the mining industry with action that would otherwise be illegal under the Competition and Consumer Act. New Hope recently advised that 150 workers at its New Acland mine will be retrenched at the end of October. A proposed $900m expansion of the mine has been on hold for more than a decade.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, ADANI MINING PTY LTD

Rio Tinto prepares for Mongolian parliament review

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 17-Sep-19

Mongolian MPs are due to commence debate on the legal agreement that supports the operation of the Oyu Tolgoi copper mine in the week ending 19 September. The agreement in question is the 2009 Oyu Tolgoi Investment Agreement, which gives the Mongolian government a 34 per cent stake in the mine, which is regarded as one of Rio Tinto’s most significant assets. Production of gold and copper from Oyu Tolgoi commenced in 2013, while Rio is in the process of spending between $US6 billion ($8.7 billion) and $US8 billion on an underground expansion of the mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Fears for Aussie miners in growing terror hot spots

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Original article by Brad Thompson
The Australian Financial Review – Page: 23 : 6-Sep-19

Resolute Mining MD John Welborn agrees with Defence Minister Linda Reynolds that there are increased terrorism risks for Australian mining companies operating in West Africa. Reynolds was while speaking at the Africa Downunder mining conference in Perth. Resolute has mines in Mali, Senegal and Ghana, and Wellborn says the terrorism risk is getting worse, particularly in Mali where its main operations are located. Wellborn also contends that China is "stealing the march" on the US and Australia when it comes to investing in Africa.

CORPORATES
RESOLUTE MINING LIMITED – ASX RSG, AUSTRALIA. DEPT OF DEFENCE

BHP to review membership of coal lobby

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 6-Sep-19

BHP says the latest review of its membership of industry associations will include Coal21, which has links to the Minerals Council of Australia. The resources giant is under growing pressure to sever its links with pro-coal lobbyists, but it has recommended that shareholders vote against a resolution calling for it to cancel its membership of the MCA due to the latter’s stance on climate change. Meanwhile, CFO Peter Beaven says BHP would be open to selling its coal assets at the right price; he adds that a decision on a proposed brownfield expansion of the Olympic Dam copper mine may be delayed until 2022.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, COAL21 LIMITED, BUSINESS COUNCIL OF AUSTRALIA

Glencore beats ATO in transfer pricing battle

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Original article by John Durie
The Australian – Page: 20 : 4-Sep-19

The Australian Taxation Office may appeal a Federal Court ruling in favour of mining giant Glencore over a transfer pricing dispute. The case centred on the price that Glencore’s offshore trading arm paid for copper from its Cobar mine in New South Wales. The ATO contended that the transaction should have been done at arm’s length. The ruling may have implications for other transfer pricing investigations being undertaken by the ATO.

CORPORATES
GLENCORE PLC, GLENCORE AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, FEDERAL COURT OF AUSTRALIA

Miners weigh lowering hurdle on projects

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 2-Sep-19

Alumina CEO Mike Ferraro says mining companies should not be rigid about the rate of return they expect from an investment. A rate of return of 15 per cent has become the minimum requirement for most large mining corporations when deciding whether to proceed with a project, but there are signs that some are prepared to go below this rate of return due to very low interest rates. Newcrest Mining CEO Sandeep Biswas says he would be more willing to accept lower rates of return on new projects than on expansions of existing ones.

CORPORATES
ALUMINA LIMITED – ASX AWC, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP

Competition no worry for Lynas

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

Rare earths miner Lynas Corporation has posted a 2018-19 net profit of $80m, compared with $53.1m previously. However, EBITDA fell to $100.7m and revenue was also lower at $363.5m. Meanwhile, CEO Amanda Lacaze is not unduly concerned by the mining sector’s growing interest in rare earths, arguing that increased competition could benefit Lynas. She is also optimistic that the Malaysian Government will renew the company’s full operating licence after agreeing to extend its current licence by six months.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, NORTHERN MINERALS LIMITED – ASX NTU, ILUKA RESOURCES LIMITED – ASX ILU