MINING CORPORATIONS – AUSTRALIA

BHP’s epic rail fail: crew on wrong train

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 13-Mar-19

The Australian Transport Safety Bureau has released its preliminary report into a November 2018 incident in which BHP was forced to deliberately derail an iron ore train in the Pilbara. It has revealed that BHP dispatched a maintenance crew to the train after its emergency braking system failed. However, the maintenance team went to a second train that had been stopped as a precaution, so the manual handbrake on the faulty train was not engaged. BHP contends that it would not have prevented the "roll-away", which is estimated to have cost the company about $300m in lost revenue.

CORPORATES
BHP GROUP LIMITED – ASX BHP, AUSTRALIAN TRANSPORT SAFETY BUREAU

Gindalbie accepts $39m takeover

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Original article by Paul Garvey
The Australian – Page: 20 : 12-Mar-19

Directors of iron ore junior Gindalbie Metals have recommended that shareholders accept a $39m takeover offer from China-based Ansteel. Gindalbie and Ansteel are joint venture partners in the Karara magnetite mine in the Mid-West region of Western Australia, and Gindalbie wrote down the value of its 48 per cent stake in the project to zero in 2014. Gindalbie also intends to demerge its Coda Minerals subsidiary.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, CODA MINERALS LIMITED, ATLAS LEAD GENERATION PTY LTD, BCI MINERALS LIMITED – ASX BCI

Newcrest’s $1.1bn North American bet

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Original article by Paul Garvey
The Australian – Page: 20 : 12-Mar-19

Newcrest Mining CEO Sandeep Biswas says more acquisitions are possible following an $US806.5m ($1.1bn) deal to acquire a 70 per cent stake in the Red Chris gold-copper mine in Canada. Red Chris is currently an open-cut mine, but it has the potential to yield significantly more gold and copper by using block caving. Newcrest is also widely considered to be a contender to acquire from Barrick Gold and Newmont Mining if their proposed merger proceeds.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, IMPERIAL METALS CORPORATION, NORTHERN STAR RESOURCES LIMITED – ASX NST, OCEANAGOLD CORPORATION – ASX OGC, EVOLUTION MINING LIMITED – ASX EVN, ST BARBARA LIMITED – ASX SBM

Rio Tinto predicts new copper mine will be built in Western Australia

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Original article by Darren Gray
The Sydney Morning Herald – Page: Online : 9-Mar-19

Rio Tinto CEO Jean-Sebastien Jacques is confident a copper mine will be constructed at the site of its discovery in Western Australia’s Paterson Ranges. However, Jacques said he is unsure whether it will be Rio Tinto that builds that mine. Jacques was speaking at the official opening of its new $2.6 billion Arum bauxite mine on Cape York. Jacques said much more drilling needs to be undertaken at its copper discovery in WA to determine what lies beneath the surface.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Fortescue investor reduces stake

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 7-Mar-19

Hunan Valin Group has capitalised on the recent rally in Fortescue Metals Group’s share price by cutting its stake in the pure-play iron ore miner by 1.14 per cent, reducing it to 13.06 per cent. China-based Hunan Valin is Fortescue’s second-biggest shareholder, and acquired its initial stake of 17.4 per cent in 2009. The company last reduced its Fortescue stake in 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, HUNAN VALIN IRON AND STEEL GROUP COMPANY LIMITED, AUSTRALIAN LABOR PARTY

High gold price drives production to record level

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Original article by Paul Garvey
The Australian – Page: 19 : 4-Mar-19

Data from Surbiton Associates shows that Australia’s gold production rose to a record 317 tonnes in 2018. Based on the average spot price for the year, the record output was worth some $17bn. The previous annual production record was 314.5 tonnes in 1997, while output had reached an all-time low of just 220 tonnes in 2008. Surbiton director Sandra Close notes that Australian-listed producers ramped up their gold hedging in 2018, particularly in the final quarter.

CORPORATES
SURBITON ASSOCIATES PTY LTD, GOLD FIELDS LIMITED, GOLD ROAD RESOURCES LIMITED – ASX GOR, KIRKLAND LAKE GOLD LIMITED – ASX KLA, NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION

Women and science driving future BHP

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Original article by Luke Housego
The Australian Financial Review – Page: 17 & 24 : 1-Mar-19

BHP has appointed Laura Tyler to the newly-created role of chief geoscientist, and Jonathan Price has become its inaugural chief transformation officer. CEO Andrew Mackenzie says the new roles are part of BHP’s push to increase its focus on science and technology. Geraldine Slattery and Vandita Pant have also been added to BHP’s executive team, bringing the resources giant closer to its target of 50 per cent female representation. Pant will succeed Arnoud Balhuizen as chief commercial officer.

CORPORATES
BHP GROUP LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, BANKWEST CURTIN ECONOMICS CENTRE, CREDIT SUISSE (AUSTRALIA) LIMITED

Will Rio take the plunge into M&A?

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 1-Mar-19

Rio Tinto has signalled that it is open to acquisitions, but CEO Jean-Sebastien Jacques stresses that any deals must create value for shareholders. Ben Cleary of Tribeca Investment Partners has identified copper miner SolGold as a prime target for Rio Tinto, and he says other potential targets could include OZ Minerals and Freeport-McMoran. Glyn Lawcock of UBS cautions that the wrong acquisition could undo much of the progress Rio Tinto has made in restoring investors’ confidence in recent years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TRIBECA INVESTMENT PARTNERS PTY LTD, SOLGOLD PLC, OZ MINERALS LIMITED – ASX OZL, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, UBS HOLDINGS PTY LTD, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM

Jacques to get modest pay rise of 2.5pc

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 1-Mar-19

Rio Tinto’s annual report shows that CEO Jean-Sebastien Jacques received total remuneration of Stg4.29m in 2018, compared with Stg3.82m in 2017. His base salary will increase by 2.5 per cent to Stg1.138m from the start of March. Meanwhile, Rio Tinto’s remuneration committee has advised that the payment of bonuses to former CEO Sam Walsh will again be deferred pending the outcome of an investigation into the Simandau scandal.

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

OZ sets sights on long-term payoff

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 28-Feb-19

OZ Minerals has posted a 2018 net profit of $222.4m, which is 3.8 per cent lower than previously, although revenue was up 9.2 per cent at $1.12bn. Shareholders will receive a final dividend of $0.15 per share, but OZ has opted against paying a special dividend to finance growth projects such as the Carrapateena copper mine in South Australia. CEO Andrew Cole has also indicated that OZ will not proceed with a concentrate treatment plant in SA as it does not "stack up" at present.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, AVANCO RESOURCES LIMITED, JP MORGAN AUSTRALIA LIMITED