MINING CORPORATIONS – AUSTRALIA

Rio approves $3.5bn Pilbara iron ore mine

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Original article by Perry Williams
The Australian – Page: 21 : 30-Nov-18

Rio Tinto has advised that annual production at its new Koodaideri mine in Western Australia’s Pilbara will be 43 million tonnes, compared with previous expectations of 40 million tonnes. There is also scope to increase output by 27 million tonnes in the second phase of the project. The cost of developing Koodaideri has risen by $US400m to $US2.6bn ($A3.5bn) since the initial feasibility study estimate was released two years ago. Production is slated to commence in 20201.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Sentiment turns for Fortescue

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Original article by Paul Garvey
The Australian – Page: 19 : 29-Nov-18

Fortescue Metals Group expects to benefit from the recent decline in Chinese steel producers’ margins. Danny Goeman, the pure-play iron ore miner’s director of sales and marketing, notes that lower margins in the sector tend to boost demand for lower-grade iron ore, adding that this trend has occurred in recent days. The renewed demand for lower-grade ore has coincided with the first shipment of Fortescue’s higher-grade West Pilbara fines product, which is slated for December.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio cuts Iran ties, flags sovereign risks

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 27-Nov-18

Rio Tinto has advised that its 68.8 per cent stake in the Rossing uranium mine in Namibia will be sold to China National Uranium Corporation for between $US6.5 million and $US106.5 million. The Iranian Foreign Investments Company owns 15.29 per cent of Rossing; its ownership has caused discomfort for Rio, given that the US and other western nations have imposed sanctions on Iran in recent years. Rio CEO Jean-Sebastien Jacques says its investments in the developing world are still presenting challenges, including the Oyu Tolgoi copper mine in Mongolia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CHINA NATIONAL URANIUM CORPORATION, IRANIAN FOREIGN INVESTMENTS COMPANY

Twiggy’s hydrogen kickstart

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Original article by Mark Ludlow
The Australian Financial Review – Page: 5 : 23-Nov-18

Fortescue Metals Group chairman Andrew Forrest says the iron ore miner is keen to be involved in the development of hydrogen as a low-emissions fuel. Fortescue and the CSIRO have signed a $20 million agreement to develop and commercialise CSIRO technology that extracts pure hydrogen from ammonia. Mercedes-Benz, Honda, Hyundai and Toyota are all developing hydrogen-powered cars. Forrest has described hydrogen fuel as an "energy revolution".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CSIRO, MERCEDES-BENZ AG, HONDA MOTOR CORPORATION, HYUNDAI MOTOR COMPANY LIMITED, TOYOTA MOTOR CORPORATION, TESLA INCORPORATED

BHP weighs options in pursuit of growth

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Original article by Paul Garvey
The Australian – Page: 20 : 22-Nov-18

BHP’s CFO Peter Beaven has told investors that the resources group has made changes to its capital allocation policy over the last five years, after several ill-fated investments. He added that BHP is ready to start investing again and stressed the need to ensure a balance between over-investing and under-investing, as both can destroy shareholder value. Beaven also indicated that BHP is looking at a number of growth options for its existing portfolio.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE

Rio find could spark a copper rush

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Original article by Paul Garvey
The Australian – Page: 18 : 19-Nov-18

The mining sector’s interest in the Paterson Range region of Western Australia has increased in the wake of speculation of a major copper find by Rio Tinto. Although Rio Tinto has yet to comment, it has established a mining camp in the region and taken up a number of exploration leases. WA Mines Minister Bill Johnston says he has had no talks with Rio Tinto with regard to its presence in the Paterson Range. Fortescue Metals Group, Metalicity and Carawine Resources are among the companies to have acquired mining leases in the region in the wake of the Rio Tinto speculation.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, FORTESCUE METALS GROUP LIMITED – ASX FMG, METALICITY LIMTED – ASX MCT, CARAWINE RESOURCES LIMITED – ASX CWX, INDEPENDENCE GROUP NL – ASX IGO, ENCOUNTER RESOURCES LIMITED – ASX ENR, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, SOLGOLD PLC, BHP BILLITON LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM, WEST WITS MINING LIMITED – ASX WWI

Banks might be warming to lithium

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 16-Nov-18

Patrick Cocquerel of Westpac says the lack of a benchmark price for lithium has made banks somewhat reluctant to provide financing for Australian lithium producers. The nation’s burgeoning lithium industry has instead been largely financed via debt, equity, specialist lenders and payments from forward sales of the metal. Foreign banks have also been more willing to provide financing for lithium projects, but Cocquerel notes that local banks – including Westpac – are becoming more active in the sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PILBARA MINERALS LIMITED – ASX PLS, GALAXY RESOURCES LIMITED – ASX GXY, BNP PARIBAS SA, KIDMAN RESOURCES LIMITED – ASX KDR, SOCIEDAD QUIMICA Y MINERA SA, S&P GLOBAL MARKET INTELLIGENCE, ALBERMARLE CORPORATION

Forrest says Fortescue will embrace new energy, AI

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 16-Nov-18

Fortescue Metals Group chairman Andrew Forrest says the pure-play iron ore miner views thermal coal as a 20th century energy source and it will only invest in "new energy". Forrest adds that Fortescue is also committed to investing in automation and artificial intelligence, and says such technology should be embraced rather than feared. Fortescue is deploying automated haulage trucks at its iron ore mines in the Pilbara. A decision on a proposed expansion of its Iron Bridge magnetite concentrate joint venture is expected by the end of 2018.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CHINA BAOWU STEEL GROUP CORPORATION LIMITED, FORMOSA PLASTICS CORPORATION

Consolidation frenzy grips gold industry

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 15-Nov-18

Further consolidation among Australian gold producers is expected following Silver Lake Resources’ deal to acquire Doray Minerals. Other activity in the sector includes Ramelius Resources’ bid for Explaurum and Northern Star Resources’ offer to buy out its partners in the East Kundana project. Meanwhile, Newcrest Mining CEO Sandeep Biswas says the company would be open to selling the Telfer gold mine at the right price.

CORPORATES
SILVER LAKE RESOURCES LIMITED – ASX SLR, DORAY MINERALS LIMITED – ASX DRM, RAMELIUS RESOURCES LIMITED – ASX RMS, EXPLAURUM LIMITED – ASX EXU, NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWCREST MINING LIMITED – ASX NCM, TRIBUNE RESOURCES LIMITED – ASX TBR, RAND MINING LIMITED – ASX RND, AUSTRALIA. TAKEOVERS PANEL

Rio execs say good faith in assets call

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Original article by Ben Butler
The Australian – Page: 22 : 14-Nov-18

Rio Tinto and former executives Tom Albanese and Guy Elliott have denied any wrongdoing over the 2013 write-down of its coking coal assets in Mozambique. Albanese and Elliott have argued that they had acted in good faith and therefore should be excused from any liability. Both the Australian Securities & Investments Commission and the US Securities & Exchange Commission have launched legal action over the write-down.

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