MINING CORPORATIONS – AUSTRALIA

Hunter jobs rest on hydro dream

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Original article by Perry Williams
The Australian – Page: 15 & 21 : 17-Apr-25

BHP has commissioned Acciona to undertake an initial feasibility study into developing a pumped hydro energy storage project at part of the Mt Arthur thermal coal mine when it closes in 2030. BHP had announced in 2022 that it would close the mine by the end of the decade, given that it is nearing the end of its economic life; the company has confirmed that the NSW government has granted planning approval for the mine to keep operating until the scheduled closing date. The mine employs about 2,000 workers.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Fortescue racks up $350m drill bill in net zero emissions push

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Original article by Brad Thompson
The Australian – Page: 13 & 19 : 16-Apr-25

Pure-play iron ore miner Fortescue expects the deployment of electric drill rigs at its Pilbara mines to reduce diesel fuel usage by about 35 million litres per year and carbon dioxide emissions by more than 90,000 tonnes. Fortescue will pay about $350m for 50 electric drill rigs that are manufactured by Sweden-based Epiroc. Fortescue has also commenced construction of a 190-megawatt solar farm at its Cloudbreak mine, as part of its strategy to achieve a net-zero emissions target of 2030. The Cloudbank solar farm will boast almost double the capacity of Fortescue’s only existing solar farm.

CORPORATES
FORTESCUE LIMITED – ASX FMG

De Grey takeover looms as gold soars

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Original article by Brad Thompson
The Australian – Page: 16 : 15-Apr-25

Northern Star Resources’ shares reached a record high of $21.49 on Monday after a key shareholder of takeover target De Grey Mining backed the deal. Gold Road Resources advised that it will vote in favour of Northern Star’s bid at a meeting of De Grey shareholders on Wednesday; Gold Road has a 17.3 per cent stake in De Grey. Northern Star’s all-scrip bid was worth $5bn when it was launched in late 2024, but a surge in the price of gold and gold stocks has seen the value of the offer rise to $6.1bn. Gold Road Resource recently rejected a takeover approach from South Africa-based Gold Fields, which is its partner in the Gruyere gold mine.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, DE GREY MINING LIMITED – ASX DEG, GOLD ROAD RESOURCES LIMITED – ASX GOR, GOLD FIELDS LIMITED

Barnett: secret Chevron deal never meant to cover iron ore

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Original article by Brad Thompson
The Australian – Page: 13 & 16 : 15-Apr-25

US energy giant Chevron could potentially gain up to $1bn from an infrastructure levy via a confidential deal with the Western Australian government. Mineral Resources is challenging a decision to impose the levy for exporting iron ore via the Chevron-built Port of Ashburton and a shipping channel that was dredged as part of its Wheatstone LNG project. Chevron subsequently transferred ownership of the port and shipping channel to the government, but retained the right to receive a levy for their use. Former WA premier Colin Barnett says Chevron is entitled to such revenue, but he contends that the figures being mooted are excessive because nobody had expected iron ore to be shipped from Ashburton.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, CHEVRON CORPORATION

Unions to target MinRes after milestone BHP win

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 11 : 8-Apr-25

The push to reunionise the Pilbara has received a boost after BHP agreed to commence enterprise bargaining negotiations for electrical workers at its mines in Western Australia. The Electrical Trades Union’s state branch says BHP’s decision to formally concede that a majority of its power workers want an enterprise agreement is a "massive win". The ETU has submitted a separate application to the Fair Work Commission for an order requiring BHP to bargain on behalf of its rail signal technicians in WA. Unions are also targeting rival iron ore producers Rio Tinto and Mineral Resources.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ELECTRICAL TRADES UNION, AUSTRALIA. FAIR WORK COMMISSION, RIO TINTO LIMITED – ASX RIO, MINERAL RESOURCES LIMITED – ASX MIN

Rio dividend warning ahead of vote

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Original article by Brad Thompson
The Australian – Page: 15 : 2-Apr-25

A motion for Rio Tinto to undertake a review of its dual-listed structure will be presented to shareholders of its UK stock on Thursday, followed by a vote by investors in its Australian-listed shares on 1 May. The motion has been put forward by hedge fund Palliser Capital, and will require the support of at least 75 per cent of all shareholders. Goldman Sachs has estimated that the total cost to Rio Tinto of shifting to a primary listing in Australia could be within a range of $US7bn to $US15bn ($11bn to $24bn). The investment bank also warns that any such move would affect Rio Tinto’s ability to pay fully franked dividends to its Australian shareholders.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PALLISER CAPITAL UK LIMITED, THE GOLDMAN SACHS GROUP INCORPORATED

Juukan payments stay secret

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Original article by Peter Ker
The Australian Financial Review – Page: 3 : 1-Apr-25

The Juukan Gorge Legacy Foundation has been given permission by the Australian Charities & Not-For-Profits Commission to redact most of the information from its annual accounts. The Foundation was established by Rio Tinto and the Puutu Kunti Kurrama and Pinikura people in 2023 as part of an agreement to remedy the iron ore miner’s destruction of Indigenous heritage at Juukan Gorge in 2020, with the Foundation receiving a multimillion-dollar payment from Rio each year. Confirming that the Australian Charities and Not-For-Profits Commission had given it permission to redact its accounts, a Foundation spokesman said it was done to "avoid pricing heritage destruction".

CORPORATES
JUUKAN GORGE LEGACY FOUNDATION, AUSTRALIAN CHARITIES AND NOT-FOR-PROFITS COMMISSION, RIO TINTO LIMITED – ASX RIO

No compelling reason for Rio unification

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Original article by Peter Ker
The Australian Financial Review – Page: 12 : 26-Mar-25

Rio Tinto shareholders will shortly vote on a resolution to scrap its dual-listed structure in favour of a primary listing on the Australian sharemarket. UK-based hedge fund Palliser Capital has been advocating the move for some time, but the Australian Council of Superannuation Investors has told its members that there is no compelling reason to support the proposal at present. ACSI represents the nation’s major industry super funds. Rio Tinto’s British shareholders will vote on the resolution on 4 April, followed by Australian shareholders on 1 May.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PALLISER CAPITAL UK LIMITED, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

Gold Fields in $3.3bn bid for mine partner

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Original article by Brad Thompson
The Australian – Page: 18 : 25-Mar-25

South Africa-based Gold Fields has made an all-cash takeover bid for Gold Road Resources; the offer of $3.05 per share values the Australian-listed gold producer at $3.3bn. This includes an $829m valuation for the target’s 17.3 per cent stake in De Grey Mining, which itself is the subject of a $5bn takeover bid from Northern Star Resources. Gold Fields has launched the hostile bid after its takeover approach was rejected by Gold Road’s board in early March. The two companies jointly own the Gruyere gold mine in Western Australia, and they both want to buy each other out.

CORPORATES
GOLD ROAD RESOURCES LIMITED – ASX GOR, GOLD FIELDS LIMITED, DE GREY MINING LIMITED – ASX DEG, NORTHERN STAR RESOURCES LIMITED – ASX NST

Investors tell Rio to ditch issuance

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 5-Mar-25

Rio Tinto CEO Jakob Stausholm recently indicated that the resources group is seriously considering a share placement in Australia. This would boost liquidity and help to reduce an imbalance whereby the London Stock Exchange accounts for about 77 per cent of the dual-listed company’ shares. However, Rio Tinto executives who met with Australian investors last week encountered strong resistance to any share issue. Wilson Asset Management portfolio manager Matt Haupt contended that Rio Tinto should instead opt for a bond issuance if it needs more cash.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WILSON ASSET MANAGEMENT