MINING CORPORATIONS – AUSTRALIA

Iron ore floods Rio Tinto with cash

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Original article by Nick Evans
The Australian – Page: 19 : 1-Aug-19

Macquarie Group forecasts that Rio Tinto will report after-tax earnings of $US5.7bn for the first half of 2019, and EBITDA of $US10.9bn. The investment bank adds that iron ore is likely to account for more than 80 per cent of Rio Tinto’s earnings for the half-year, following a strong rise in the price of the steel input. Macquarie analysts also expect Rio Tinto to announce an interim dividend of $US1.76 per share, which is in line with the consensus forecast of about $US1.78 per share. Some analysts suggest that a special dividend is also possible.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, ALUMINIUM CORPORATION OF CHINA LIMITED

BHP opts to sell lower-grade iron ore

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 30-Jul-19

BHP intends to maintain production volumes at its Jimblebar iron ore mine over the next year, as it mines a lower-grade section of the deposit. This will have no impact on the mine’s lump iron ore product, but the iron content of the higher-grade Jimblebar Fines product will fall from 61 per cent to 59.5 per cent during 2019-20. BHP has indicated that it will aim to lift the iron content of Jimblebar Fines above 60 per cent again in 2020-21. The price discount for lower-grade iron ore narrowed in 2018-19 due to supply disruptions.

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

China rare earth demand soft: Lynas

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Original article by Paul Garvey
The Australian – Page: 20 : 30-Jul-19

Rare earths producer Lynas Corporation has advised that its sales for the June quarter totalled 4,723 tonnes, compared with 5,030 tonnes in the three months to March. CEO Amanda Lacaze says demand for rare earths remains soft, despite ongoing trade tensions between the US and China. The subdued price for rare earths has prompted Lynas to increase the stockpiles at its processing plant in Malaysia. Lacaze adds that Lynas is still in talks with the Malaysian government regarding the renewal of its operating licence.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC

Fortescue expands its base in China

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Original article by Paul Garvey
The Australian – Page: 23 : 26-Jul-19

Fortescue Metals Group has advised that its iron ore shipments totalled 167.7 million tonne in 2018-19, including a record 46.6 million tonnes in the final quarter. Fortescue received an average price of $US65 per tonne during the financial year, an increase of 50 per cent. The pure-play miner has forecast that it will ship between 170 million and 175 million tonnes of iron ore in 2019-20. Meanwhile, Fortescue has opened a new office in China that will allow it to sell smaller volumes of iron ore to customers.

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

Hancock loses stoush over royalties

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Original article by Brad Thompson
The Australian Financial Review – Page: 23 : 25-Jul-19

The Supreme Court of Western Australia has ruled in Wright Prospecting’s favour in the latest round of its dispute with Gina Rinehart’s Hancock Prospecting. The long-running dispute centres on the right to royalties from the Hope Downs iron ore tenements. The court has rejected Hancock’s bid to have Wright Prospecting’s legal action put on hold until the outcome of its appeal against a 2018 court ruling is known.

CORPORATES
HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, SUPREME COURT OF WESTERN AUSTRALIA, COURT OF APPEAL (WESTERN AUSTRALIA)

Rivals baulk at BHP’s carbon push

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Original article by Nick Evans
The Australian – Page: 17 & 27 : 25-Jul-19

Australian Petroleum Production & Exploration Association CEO Andrew McConville says the resources sector should be solely responsible for addressing its scope 3 emissions, and government intervention is not necessary. The issue has been highlighted by BHP’s move to address carbon emissions across its supply chain, including those generated by the buyers of its commodities. Santos CEO Kevin Gallagher has also argued that regulators should not be involved in setting targets for scope 3 emissions.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, SANTOS LIMITED – ASX STO, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, MITSUBISHI CORPORATION, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, SOUTH32 LIMITED – ASX S32, DELOITTE ENERGY TRANSITION, CLIMATE ACTION 100+

BHP’s carbon hard line

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Original article by Hans van Leeuwen, Peter Ker
The Australian Financial Review – Page: 1 & 26 : 24-Jul-19

BHP CEO Andrew Mackenzie has revealed that the resources group will set targets for its so-called scope 3 carbon emissions as part of a broader strategy to reduce its impact on the environment. He says BHP must take a "product stewardship role" with regard to the emissions across its supply chain, including the emissions generated by the buyers of its commodities. Mackenzie also announced that BHP will spend some $US400m on a climate investment program that will aim to decarbonise its global operations.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, RIO TINTO LIMITED – ASX RIO, VICSUPER PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

Rio Tinto to take iron ore exports crown as Vale struggles

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 26 : 24-Jul-19

Rio Tinto and Brazilian rival Vale are both expected to record lower iron ore shipments in 2019 than the previous calendar year. New data shows that Vale exported 138.5 million tonnes of iron ore during the first half of 2019, a decline of 18 per cent year-on-year. Vale expects its shipments to rise in the second half, with full-year exports to be around the midpoint of its guidance of between 307 million and 332 million tonnes. This suggests full-year exports of around 319.5 million tonnes. Rio Tinto in turn expects to ship between 320 million and 330 million tonnes of iron ore for the year.

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

Lawyers probe Rio’s Mongolian maelstrom

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

US law firm Hagens Berman Sobol Shapiro has advised that it will investigate the market disclosures of Rio Tinto and Turquoise Hill Resources with regard to the Oyu Tolgoi copper mine in Mongolia. The market capitalisation of Turquoise Hill recently fell sharply after Rio Tinto warned of a blowout in the cost of an underground expansion of the mine. Law firm Baker & McKenzie has previously flagged plans to scrutinise Rio Tinto’s disclosures regarding the project.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED, OYU TOLGOI LLC, HAGENS BERMAN SOBOL SHAPIRO LLP, BAKER AND McKENZIE

BHP flags iron ore output surge

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Original article by Nick Evans
The Australian – Page: 20 : 18-Jul-19

BHP has forecast that its Pilbara iron ore exports for 2019-20 will be within the range of 273 to 286 million tonnes, despite its scheduled maintenance work at Port Hedland. BHP’s Pilbara shipments totalled 71.1 million tonnes in the final quarter of 2018-19, and 270.5 million tonnes for the full year. BHP has also advised that its 2018-19 production costs were in line with previous forecasts of less than $US15 per tonne. Rio Tinto recently indicated that its iron ore production costs for 2019 will be between $US14 and $US15 per tonne.

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