MINING CORPORATIONS – AUSTRALIA

Lynas caves in over local processing

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 9-Apr-19

Dylan Kelly of CLSA estimates that Lynas Corporation will incur costs of about $100m if it shifts the ‘cracking and leaching’ part of its rare earths processing operation from Malaysia to Australia. Malaysian Prime Minister Mahathir Mohamad recently signalled that Lynas will be able to keep its processing plant open provided that early-stage processing is carried out in Australia. Lynas suitor Wesfarmers committed to undertaking this stage of processing in Australia in talks with the Malaysian Government.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES, MALAYSIA. DEPT OF THE PRIME MINISTER, CLSA AUSTRALIA PTY LTD, GREENCAPE CAPITAL PTY LTD, JAPAN AUSTRALIA RARE EARTHS, JAPAN OIL GAS AND METALS NATIONAL CORPORATION, SOJITZ CORPORATION

Rio lashed over probe records

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Apr-19

Rio Tinto has admitted that it had failed to provide the US Securities & Exchange Commission with a large number of documents relating to its ill-fated investment in Mozambique-focused coal producer Riversdale Mining. The SEC is investigating the conduct of Rio Tinto executives – including former CEO Tom Albanese – regarding the timing of a write-down of the Riversdale assets. Rio Tinto has blamed "technical problems" for its failure to provide some 25,000 documents to the SEC.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, RIVERSDALE MINING LIMITED, DISTRICT COURT OF UNITED STATES, GIBSON DUNN AND CRUTCHER LLP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA

Miners braced for wave of cultural-loss claims

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Original article by Victoria Laurie
The Australian – Page: 2 : 4-Apr-19

Indigenous land owners in Western Australia’s Goldfields region will lodge a compensation claim following the High Court’s recent landmark ruling in the Timber Creek case. Malcolm O’Dell, the lawyer representing the Tjiwarl people, says the compensation claim for economic and cultural loss resulting from mining activity may include more than 100 mining companies. Indigenous people are also expected to pursue compensation claims for mining activity in WA’s Pilbara and Kimberley regions.

CORPORATES
HIGH COURT OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, TJIWARL CORPORATION, YAMATJI MARLPA ABORIGINAL CORPORATION

BHP calms fears over automation

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Original article by Nick Evans
The Australian – Page: 22 : 4-Apr-19

BHP, Rio Tinto and Fortescue Metals Group are ramping up their investment in technology, including driverless trucks and automated drilling rigs. However, BHP executive Rag Udd has told a conference in Brisbane that Australia is underperforming with regard to the adoption of robotics. He said the nation has about 0.6 robots per thousand employees, compared with the OECD average of 1.61. Udd also argued that the growing tend toward technology in the mining sector creates new jobs and safer jobs rather than fewer jobs.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

BHP’s forecasts blown away by wild weather

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Original article by Nick Evans
The Australian – Page: 42 : 3-Apr-19

BHP has advised that Cyclone Veronica did not cause major damage to its iron ore operations in the Pilbara. However, the resources group has warned that its annual output will be reduced by 6-8 million tonnes due to the cyclone. BHP indicated earlier in 2019 that its export volumes had been cut by four million tonnes due to the forced derailment of an iron ore train in late 2018. Rio Tinto also recently downgraded its iron ore production forecast in the wake of Cyclone Veronica.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, INCITEC PIVOT LIMITED – ASX IPL, UBS HOLDINGS PTY LTD, INSURANCE COUNCIL OF AUSTRALIA LIMITED

Rio closes in on $100 share price

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Original article by Nick Evans
The Australian – Page: 17 & 28 : 2-Apr-19

Shares in Rio Tinto closed 1.7 per cent higher at $99.63 on 1 April, putting the resources giant on track to breach the $100-per-share mark for the first time since mid-2008. Rio Tinto has advised that its iron ore production for 2019 is likely to be at the lower end of its guidance in the wake of Cyclone Veronica and a fire at its Cape Lambert processing plant in January. However, the iron ore price is likely to be bolstered by the recent global supply disruptions. BHP, Fortescue Metals Group and Roy Hill in turn should benefit more from any rise in the iron ore price than Rio Tinto, as Cyclone Veronica had less impact on Port Hedland than Cape Lambert.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, VALE SA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE CAPITAL PTY LTD

Fortescue expects China’s ore demand to stay strong

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Original article by Michael Smith
The Australian Financial Review – Page: 17 & 20 : 29-Mar-19

Fortescue Metals Group CEO Elizabeth Gaines says there are no indications that Chinese steel production is contracting. She adds that the general consensus of Fortescue’s iron ore customers in China is that growth in steel output will to slow to 3-4 per cent in 2019. This follows 12 per cent growth in 2018. Gaines has also indicated that China’s move to restrict Australian coal imports has had no impact on Fortescue’s iron ore shipments. The pure-play miner has resumed shipments from Port Hedland in the wake of Cyclone Veronica.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BOAO FORUM FOR ASIA, SHANGHAI BAOSTEEL GROUP CORPORATION, FORMOSA GROUP, VALE SA

Wesfarmers talks to Malaysia over Lynas

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 28-Mar-19

Rare earths miner Lynas Corporation has rejected an unsolicited $1.5bn takeover bid from Wesfarmers. Lynas CEO Amanda Lacaze has also criticised Wesfarmers’ move to engage directly with the Malaysian government regarding Lynas’s processing plant in Kuantan, stating that the conglomerate cannot speak on behalf of the company. Meanwhile, stockbroking firm Morgans has cited factors such as the political risk in Malaysia for its decision to downgrade its recommendation on Wesfarmers shares from ‘add’ to ‘hold’.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES, MORGANS FINANCIAL LIMITED, GREENCAPE CAPITAL PTY LTD, CHALLENGER LIMITED – ASX CGF, CITIGROUP PTY LTD

Rinehart, Forrest and big miners sweet on Ecuador

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 25-Mar-19

Sunstone Metals CEO Malcolm Norris expects there to be a lot of gold and copper discoveries in Ecuador in the next 10 years. Norris, secured the Cascabel tenement in Ecuador some years ago when he was in charge of SolGold, which owns 85 per cent of Cascabel. SolGold recently launched a hostile takeover bid for Cornerstone Capital, which has a 15 per cent stake in Cascabel. Cornerstone has spurned the takeover bid and criticised SolGold for what it stated were ongoing delays with releasing information about Cascabel.

CORPORATES
SUNSTONE METALS LIMITED – ASX STM, SOLGOLD PLC, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM, CORNERSTONE CAPITAL RESOURCES INCORPORATED, FORTESCUE METALS GROUP LIMITED – ASX FMG, HANCOCK PROSPECTING PTY LTD

Fortescue enters the big tech race

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Original article by Paul Garvey
The Australian – Page: 24 : 22-Mar-19

Pure-play iron ore miner Fortescue Metals Group will establish a research and development centre for self-driving cars in Karratha. Amongst other things, the research facility will undertake a trial of self-driving light vehicles at the Christmas Creek iron ore mine. Fortescue CEO Elizabeth Gaines expects autonomous vehicles to become widely used in both the mining industry and urban areas. Fortescue already operates more than 100 self-driving iron ore haulage trucks in the Pilbara.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, TESLA INCORPORATED, GOOGLE INCORPORATED