MINING CORPORATIONS – AUSTRALIA

Steel mills to the rescue as Rio mines slow

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

Rio Tinto has advised that production at its flagship Pilbara iron ore mines totalled 155.7 million tonnes in the first half of 2019, which is eight per cent lower than previously. Pilbara iron ore shipments also fell by eight per cent, to 154.6 million tonnes. Export volumes were affected by factors such as cyclone activity and a fire at Cape Lambert port during the half-year. Rio Tinto received an average price of $US85.30 per tonne, excluding the cost of freight, an increase of 35 per cent compared with the same period in 2018.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, SHAW AND PARTNERS LIMITED

Mining wages hit boom-time highs

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 6 : 15-Jul-19

Research by BDO Remsmart shows that wages for a number of jobs in the mining sector have risen above the peaks seen during the last resources boom. Western Australia in particular is seeing a surge in mining industry wages, as BHP, Rio Tinto and Fortescue Metals Group invest in new iron ore mines. Factors such as stricter rules on the use of foreign labour, declining enrolments in university mining courses and investment in new infrastructure projects on the east coast are also putting upward pressure on wages. The demand for staff has prompted some mining companies to hire WA School of Mines students up to 18 months before they graduate.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BDO REMSMART, CURTIN UNIVERSITY OF TECHNOLOGY. SCHOOL OF MINES

BHP calls for LNG-powered iron ore vessels

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 15-Jul-19

BHP is seeking to reduce the greenhouse gas emissions its products create once they have been acquired by its customers. As part of that effort, it has launched a tender that would see around 10 per cent of its iron ore exports to China transported in ships powered by LNG by around late 2021. BHP executive Rashpal Bhatti notes that LNG can achieve a 25 per cent reduction in greenhouse gas emissions when compared to low sulphur fuel oil.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Rio expands drilling on copper prospect

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Original article by Paul Garvey
The Australian – Page: 17 : 15-Jul-19

Rio Tinto is undertaking further drilling work at its Winu copper discovery in Western Australia’s Paterson Range. Arnaud Soirat, the head of Rio Tinto’s copper division, says the resources giant has identified other sites in the region that could also be drilled in the future. He adds that Rio Tinto’s focus is on value over volume, and that Winu could potentially be developed before the Resolution copper project in the US.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ANTIPA MINERALS LIMITED – ASX AZY, SIPA RESOURCES INTERNATIONAL LIMITED – ASX SRI, ENCOUNTER INVESTMENTS PTY LTD, GREATLAND GOLD PLC, NEWCREST MINING LIMITED – ASX NCM, CITIGROUP PTY LTD

Whitehaven boss hints at hefty dividends for shareholders

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 18 : 12-Jul-19

Whitehaven Coal will post underlying earnings of $567.6m for 2018-19, according to the consensus forecast of analysts polled by Bloomberg. It would be the group’s second successive record profit, with Whitehaven benefiting from the premium at which its thermal coal has traded compared with the benchmark price. MD Paul Flynn has given indications that Whitehaven will maintain its dividend payout ratio, although some analysts suggest that it may be prudent to retain some cash given its plans to develop the Vickery and Winchester South mines.

CORPORATES
WHITEHALL ASSOCIATES, SHAW AND PARTNERS LIMITED, BLOOMBERG LP, FARALLON CAPITAL PTY LTD

Evolution back in the black

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Original article by Nick Evans
The Australian – Page: 27 : 11-Jul-19

Evolution Mining has advised that its gold output totalled 194,866 ounces in the June quarter, compared with 175,901 in the March quarter, while it had a net cash position of $35.2m at the end of June. It produced 753,001 ounces of gold during 2018-19, at an average all-in sustaining cost of $924 an ounce, while it expects output in 2019-20 to be within the range of 725,000 to 775,000 ounces. Ramelius Resources in turn has reported 2018-19 output of 196,679 ounces.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, RAMELIUS RESOURCES LIMITED – ASX RMS

Gindalbie shareholders approve Ansteel buyout

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Original article by Nick Evans
The Australian – Page: 28 : 4-Jul-19

Some 81 per cent of Gindalbie Metals’ shareholders voted in favour of Ansteel’s takeover bid on 3 July. The deal required the support of at least 75 per cent of the struggling iron ore miner’s shareholders. Gindalbie’s key asset is a 48 per cent stake in the loss-making Karara magnetite project in Western Australia, which incurred a blowout in construction and operating costs.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, SANDON CAPITAL INVESTMENTS LIMITED – ASX SNC

Roy Hill bound for record profit despite volume miss

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 2-Jul-19

The Roy Hill iron ore project’s 2018-19 production is expected to be 55 million tonnes, although export volumes are likely to total 53 million tonnes. Recent data from Macquarie suggested that the Gina Rinehart-backed project would export 52.5 million tonnes in 2018-19, after shipping about 50.5 million tonnes in 2017-19. Looking ahead, Roy Hill has applied to increase its annual export capacity to 60 million tonnes in 2020. Roy Hill’s 2018-19 earnings should be boosted by a rally in the iron price in 2018-19, following a $558m profit in the previous financial year.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Tax fight left rare earths miner on the brink

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 1-Jul-19

Northern Minerals has spent $210m to date on its Browns Range rare earths project in Western Australia’s East Kimberley region. MD George Bauk says a dispute with the Australian Tax Office over a $10.8m research and development tax rebate nearly saw the company collapse in early 2019. The ATO also demanded that Northern Minerals repay $13.4m worth of previous R&D rebates. Bauk maintains that the Browns Range processing plant is an R&D site, as the technology it uses is still being developed and improved.

CORPORATES
NORTHERN MINERALS LIMITED – ASX NTU, AUSTRALIAN TAXATION OFFICE, LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES

Fortescue says $2.3b trumps Aboriginal voice in Parliament

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 26-Jun-19

Fortescue Metals Group CEO Elizabeth Gaines says the pure-play iron ore miner favours "practical" measures to address disadvantage in Aboriginal communities rather than supporting the proposal for an indigenous voice to Parliament. Fortescue announced on 25 June that it has awarded two contracts worth a combined $179m to Aboriginal-owned businesses; it has awarded $2.3bn worth of contracts to Aboriginal-owned business and joint ventures since 2011. BHP and Rio Tinto declared their support for an indigenous voice to Parliament in early 2019.

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