MINING CORPORATIONS – AUSTRALIA

BHP puts foot down on robotic truck drive

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

BHP may ramp up its deployment of autonomous haulage truck at its iron ore and coal mines in Australia. BHP, Rio Tinto and Fortescue now operate about 250 automated trucks at their iron ore mines in the Pilbara, and BHP recently said that most of its fleet could potentially be automated by 2023. Its fleet at the Jimblebar mine has been fully automated since 2017, and BHP executive Rag Udd notes that this has resulted in significant safety and productivity improvements. He stresses that such factors are driving the automation push, rather than job cuts, adding that many former truck drivers have been redeployed.

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

Coal being phased out faster than expected, BHP warns investors

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Original article by Killian Plastow
The New Daily – Page: Online : 24-May-19

BHP has indicated that it has no plans to increase its thermal coal portfolio. CFO Peter Beaven says it expects the thermal coal market to plateau over time, before declining. Jason Aravanis of IBISWorld says demand for black coal is expected to fall by around six per cent a year by 2024, with most of that fall coming from thermal coal. Demand for coking coal, which is used to make steel, is expected to remain sound. The Department of Industry, Innovation & Science’s Resources and Energy Quarterly report for March had forecast that thermal coal export earnings are likely to hit a record $27 billion in 2018-19, before falling to $20 billion by 2023-24.

CORPORATES
BHP GROUP LIMITED – ASX BHP, IBISWORLD PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, MINERAL COUNCIL OF AUSTRALIA

Fortescue approves $417m Queens mine as analysts tip dividend top-up

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Original article by Paul Garvey
The Australian – Page: 20 : 23-May-19

Pure-play iron ore producer Fortescue Metals Group will develop the Queens Valley mine in the Pilbara, with the project slated to cost $US287m ($417m). Paul Hissey of RBC Capital Markets says the recent rise in the iron ore price could significantly boost Fortescue’s earnings in the June quarter. This could in turn prompt another dividend payout when Fortescue releases its full-year results.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RBC CAPITAL MARKETS

BHP plugs into battery boom, holds line on ore

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

CFO Peter Beaven has told investors that BHP is unlikely to increase its Pilbara iron ore output to capitalise on reduced supply from Brazilian rival Vale. BHP will also maintain its current annual production target for metallurgical coal. Beaven also indicated that BHP will pursue growth in copper and nickel sulfide production in response to rising demand for electric vehicles and battery storage technology. He added that BHP may be open to nickel acquisitions, after dropping plans to divest its Nickel West division.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA, NICKEL WEST, RIO TINTO LIMITED – ASX RIO, GOLDMAN SACHS AUSTRALIA PTY LTD

Iron ore is surging, but not all producers are joining the party

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Original article by Clyde Russell
The Australian Financial Review – Page: Online : 23-May-19

The spot price of iron ore for delivery to China has risen by more than 38 per cent so far in 2019, to over $US100 per tonne. Shares in Australian-listed Fortescue Metals Group have in turned gained 119 per cent in local currency terms, while Rio Tinto and BHP have risen by 33.7 per cent and 15.6 per cent respectively. In contrast, Brazil-based Vale has shed seven per cent in local currency terms so far in 2019, and nearly 16 per cent since a tailings dam collapse in late January.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, VALE SA, GRANGE RESOURCES LIMITED – ASX GRR, MOUNT GIBSON IRON LIMITED – ASX MGX, ARGUS MEDIA PTY LTD

BHP raises the bar on electric vehicle forecasts

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 22-May-19

Resources giant BHP is bullish about global demand for electric cars. Its forecast for the proportion of vehicle sold in 2035 that are electric has been increased from a minimum of 10 per cent to 16 per cent, while it now expects at least seven per cent of light vehicles sold in 2035 will be electric. BHP’s Huw McKay says the take-up rate of electric cars will depend on factors such as investment in recharging infrastructure. BHP has exposure to the electric car battery market via its copper and nickel mines.

CORPORATES
BHP GROUP LIMITED – ASX BHP, WESFARMERS LIMITED – ASX WES, KIDMAN RESOURCES LIMITED – ASX KDR, RIO TINTO LIMITED – ASX RIO

Rare earths dispute lifts Lynas

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Original article by Paul Garvey
The Australian – Page: 20 : 22-May-19

Lynas Corporation produced 5,444 tonnes of neodymium and praseodymium in fiscal 2018, but it has outlined plans to lift this to 10,500 tonnes a year via a $500m capital investment program. Lynas has also advised that it will undertake the initial processing of ore from its Mt Weld project in Western Australia at a site near the mine, rather than exporting the raw materials to its processing plant in Malaysia. Meanwhile, Lynas share closed 14.4 per cent higher at $2.26 on 21 May, after China flagged plans to cease exporting rare earths to the US amid ongoing trade tensions between the two nations.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES

BHP warned of potash mission impossible

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Original article by Peter Ker
The Australian – Page: 19 & 24 : 20-May-19

BHP recently advised that the first stage of its proposed $US5.7 billion ($8.3 billion) Jansen potash project in Canada will produce 10 per cent more a year than previously forecast, but that it will cost around 10 per cent more to construct. Green Markets research director Alexis Maxwell says rival potash producers would seek to keep prices sufficiently low so that BHP did not have sufficient incentive to develop Jansen, while JP Morgan analyst Lyndon Fagan says BHP is using unrealistically high potash prices to justify the economics of Jansen. BHP is expected to make a decision on whether to proceed with Jansen within 18 months.

CORPORATES
BHP GROUP LIMITED – ASX BHP, GREEN MARKETS, JP MORGAN AUSTRALIA LIMITED

St Barbara confident of Atlantic gold

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Original article by Nick Evans
The Australian – Page: 20 : 16-May-19

Gold producer St Barbara will finance its proposed $768m acquisition of Canada-based Atlantic Gold via a non-renounceable rights offer and cash holdings. Paul Hissey of RBC describes Canada as a "relatively safe move" for St Barbara. Atlantic has forecast that its gold production in 2019 will be within the range of 92,000-98,000 ounces. Newcrest Mining and Northern Star Resources are among the other Australian miners to have bought North American assets in the last year.

CORPORATES
ST BARBARA LIMITED – ASX SBM, ATLANTIC GOLD CORPORATION, RBC CAPITAL MARKETS, NEWCREST MINING LIMITED – ASX NCM, NORTHERN STAR RESOURCES LIMITED – ASX NST, ALLIED GOLD

BHP puts faith in nickel again

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Original article by Nick Evans
The Australian – Page: 21 : 15-May-19

BHP intends to retain its Nickel West business, which posted underlying EBIT of $US42m for the first half of 2018-19. BHP had previously deemed its nickel division to be a non-core asset and made several attempts to sell the business in recent years. However, CEO Andrew Mackenzie says that although there are still risks associated with Nickel West, it could potentially regain its status as a tier-one asset. The upbeat outlook is based on factors such as growing demand for batteries and limited supply of quality nickel sulphide.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST