Iron ore stars in June export figures: ABS

Australian exports have been upheld by metalliferous ores in June, with the category showing an 8 per cent increase and a fourth consecutive record month.

Head of International Statistics at the Australian Bureau of Statistics (ABS) Andrew Tomadini said overall exports experienced a similar jump.

“June 2021 recorded a monthly export value above $40 billion. Exports increased 8 per cent to $41.3 billion, with significant increases in metalliferous ores, coal, non-monetary gold and gas,” Tomadini said.

Metalliferous ores made up almost half of Australia’s export value in June at $20.49 billion, with iron ore up 6 per cent to represent most of that figure ($17.55 billion).

Coal saw its highest export value since April 2020, with $555 million making up 15 per cent of the country’s total export value.

The $40 billion total exports easily qualify the record $310 billion predicted for the 2020-21 financial year by the Resources and Energy June Quarterly.

“Supply chains disrupted by China’s informal import restrictions have largely reorganised, albeit with some loss of revenue,” the Quarterly stated.

China received $19.12 billion worth of Australian exports in June 2021, with record iron ore movement providing a strong backbone – up $1 billion (7 per cent on June 2020) to $14.89 billion.

In June, Minister for Resources, Water and Northern Australia Keith Pitt acknowledged the importance of Australia’s resources sector in strengthening the Australian economy.

“These incredible results underline the importance of Australia’s resources sector to the national economy and international markets throughout the COVID-19 downturn,” he said in response to the Quarterly.

“Australia’s energy and resources sector has remained safe and reliable suppliers to domestic and global markets throughout the pandemic, helping to underpin economic growth and overcome the challenging trade conditions of the past year.”

Newmont rises above Tanami constraints

July 23, 2021 News Nickolas Zakharia

Newmont has boosted production across its global gold portfolio, with an increase in grades and throughput at the Boddington mine in Western Australia contributing to the result.

The company produced 1.45 million ounces of gold in the June quarter, which was 15 per cent higher than the previous corresponding period.

Boddington and Tanami produced 189,000 ounces and 109,000 ounces respectively in the June quarter.

The company signalled that production offset by a build-up of in-circuit inventory at Tanami after it was placed under care and maintenance which was lifted in July.

Newmont has also continued to deploy COVID-19 vaccinations to its workforce globally.

According to Newmont president and chief executive officer Tom Palmer, the company had secured $US1.6 billion ($2.1 billion) in earnings in the June quarter.

“Capitalising on the strength of our assets and integrated operating model, Newmont delivered a solid second quarter performance with $US1.6 billion in adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) and $US578 million in free cash flow,” Palmer said.

“Our performance and disciplined approach to capital allocation allowed Newmont to declare a second quarter dividend of $US0.55 per share, whilst we continue to reinvest in our business through our most profitable projects.

“As we move into our next 100 years of mining, we remain focused on delivering value to all of our stakeholders from our world-class portfolio of long-life, responsibly managed assets located in top- tier jurisdictions.”

Newmont will continue to focus on boosting gold production and investment into its operating aspects as part of its outlook.

The company has progressed its Tanami Expansion 2 project which will boost the site’s mine life beyond 2040 through a 1460-metre hosting shaft that will result in a 150,000 to 200,000-ounce increase to annual gold production.

The project’s capital cost is estimated to be between $US850 million and $US950 million with production from the expansion due in the first half of 2024.

Newmont’s annual gold production outlook is 6.5 million tonnes for the 2021 calendar year.

The company stated that its target is on track and will be bolstered by the second half of the year.

Newmont will aim to produce seven million ounces of gold per year from 2024.

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Northern Star reaps benefits of Saracen merger

Northern Star Resources is seeing the early signs of cost savings and productivity gains from the merger with Saracen Mineral Holdings as it progresses towards producing 2 million ounces of a gold a year.

The gold miner sold 1.6 million ounces of gold in the 2021 financial year at an all-in-sustaining cost (AISC) of $1483 per ounce.

According to Northern Star managing director Stuart Tonkin, the benefits of the Saracen merger are materialising.

“As we bed down the merger, the savings and the productivities are coming through at numerous levels,” Tonkin said.

“And the scale of our business, now underpinned by reserves of 21 million ounces exclusively in tier-one locations, is exceptional.”

The company produced 444,012 ounces at an AISC of $1459 per ounce in the June quarter from its Kalgoorlie, Yandal and Pogo production centres in Western Australia.

The Kalgoorlie production centre contains the Kalgoorlie Consolidated Gold Mines (KCGM), Kalgoorlie Operations and Carosue Dam mine, with Northern Star claiming full ownership of Kalgoorlie Consolidated Gold Mines and Carosue Dam after merging with Saracen.

Northern Star has also mapped out its five-year plan to become a two-million-ounce producer.

This will involve increasing its Kalgoorlie production centre to 1.1 million ounces per year, Yandal to 600,000 ounces per year and Pogo to 300,000 ounces per year.

Northern Star plans to continue improving quality and increasing the quantity of ounces per share.

“It was a strong operational performance from our recently merged team with production and costs comfortably in line with the undertakings we provided to the market,” Tonkin said.

“This flowed through to our financial results, with cash flow rising significantly from the previous quarter, leaving us with cash and bullion of more than $800 million at the end of the financial year.”

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South32 longwall change improves Illawarra output

*Illawarra Metallurgical Coal. Image: South32*

South32 has improved metallurgical coal production at the Illawarra metallurgical coal operation in New South Wales after returning the site to a three longwall configuration.

Illawarra, which is South32’s sole metallurgical coal asset, improved production 9 per cent in the 2021 financial year thanks to the site’s updated configuration which enhanced efficiencies.

According to South32, the company’s coal production was impacted by challenging strata conditions at Ilawarra’s Appin mine during the June 2021 quarter, which performed below expectations with a 15 per cent decrease in coal production.

The company produced 7.6 million tonnes of metallurgical coal, leaving it below its target of 8 million tonnes for the 2021 financial year.

South32 expects its operating costs for metallurgical coal will be “moderately higher” in the 2021 financial year than its guidance of $US83 ($113) per tonne due to lower than expected coal volumes.

South32 chief executive officer Graham Kerr said the company’s divestments in the past year have added to its emissions targets.

“Our strong financial position supported the return of $US346 million ($471 million) to shareholders via our on-market share buy-back during the year, bringing total returns under our capital management program to $US1.7 billion ($2.3 billion) over the past four years,” he said.

“We also made substantial progress reshaping our portfolio during the year, completing the divestments of South Africa Energy Coal and the TEMCO manganese alloy smelter, while progressing studies for our base metals development options at Hermosa and Ambler Metals.

“This, along with the release of our medium-term target to halve our operational emissions by 2035 position us well as the world transitions to a low carbon future.”

The company increased production at Worsley Alumina in Western Australia by 2 per cent to a record 3.9 million tonnes and sales by 6 per cent to 4 million tonnes in the 2021 financial year.

South32 owns an 86 per cent interest in Worsley, with the site operating above its nameplate capacity of 4.6 million tonnes per year.

Zinc production has also improved for South32. The company’s Cannington silver-lead mine in North West Queensland increased its zinc equivalent production by 14 per cent to 380,200 tonnes in the 2021 financial year.

This result was guided by strong underground mine performance, bolstered by a higher-grade mining sequence.

Cannington’s silver, lead and zinc sales increased by 51 per cent, 48 per cent and 34 per cent, respectively, in the June 2021 quarter.

Monadelphous

工程集团Monadelphous与多家矿业龙头公司共签订2.15亿澳元合同

2021-06-22 14:27:04 (AET) by Edward Zhang 3338

工程集团 Monadelphous（ASX：MND）赢得了一系列的新合同，这些合同预计带来2.15亿澳元的收入。这些合同包括与多家澳交所上市的矿业龙头公司：必和必拓（ASX：BHP），Rio Tinto（ASX：RIO）以及Fortescue Metals Group（ASX：FMG）的合作。

澳股资讯平台 – 61 Financial 6月22日讯，工程集团 Monadelphous（ASX：MND）早盘发布公告，公司赢得了一系列的新合同，这些合同预计带来2.15亿澳元的收入。

公司表示，这些合同包括与必和必拓（ASX：BHP）旗下在南澳大利亚Roxby Downs的Olympic Dam铜矿项目的冶炼厂维护工作。该维护将立即开始，并定于12月结束。除此之外，Monadelphous还获得了一份延长两年的现有Olympic Dam维护服务合同，涵盖土木、结构和机械工程、建筑维护和电气服务以及地下轨道维护。

Monadelphous还与Rio Tinto（ASX：RIO）和必和必拓签订了西澳大利亚Pilbara地区的合同，重点包括Rio Tinto的Gudai-Darri铁矿石项目的建设和支持服务。

公司其它交易包括在智利各地与Codelco和必和必拓签订新合同，以及与Fortescue Metals Group（ASX：FMG）和重型起重公司Fagioli合作达成新协议。Monadelphous表示，与Fagioli的战略合作，使公司的专业重型起重业务能够增加产能，扩大澳大利亚资源和能源市场的能力。

Monadelphous是总部位于西澳珀斯的澳大利亚工程集团，为资源、能源和基础设施领域提供建筑、维修、和工业服务。其工程建设部门负责提供大型多学科项目管理和建设服务。其维护及工业服务部门专门负责机械和电气维护服务，固定工厂维护服务，脱水服务，专业涂层和可持续基建工程的规划，管理和执行。该部门通过与主要客户的长期合同为公司的重复性收入提供重要来源。

在截至2020年6月的财年中，公司收入为14.9亿澳元，较2019财年小幅度上升0.06%；运营收益为5509万澳元，较去年8343万澳元下降33.9%；净利润为3648万澳元，较去年同期5056万澳元下降27.8%。

截止发稿，公司股价上涨1.42%至10.00澳元。

text 【更多MND公告和股价走势请点击MND个股页面】

消息来源：

公司公告Monadelphous Contracts Update

BHP and Rio top PwC global miner report

Five Australian mining companies have been named among the world’s Top 40 miners in Pricewaterhouse Coopers’ (PwC) annual Mine 2021 report, with early forecasts suggesting the industry will record the second highest net profits in 18 years.

According to PwC’s 18^th annual report, BHP and Rio Tinto retained their positions as first and second on the list of the Top 40 global mining companies, while Fortescue Metals Group rose six spots on the list to fourth.

Newcrest Mining fell four spots from 14th to 18th, while South32 came in at 35th on the list, down from 28th last year.

According to PwC, based on production and commodity price forecasts, group revenue (excluding trading) for the Top 40 is expected to rise to US$700 billion ($903 billion), up 29 per cent.

BHP, Rio Tinto and Fortescue have distributed their highest ever dividends for the February 2021 reporting period when iron ore prices were lower, according to the report.

PwC global mining leader Paul Bendall said the Top 40 miners find themselves in an enviable position.

“Just as the world pivots to a more sustainable future reliant on a lower-carbon economy, the miners have a chance to think strategically towards a decarbonisation future and ESG agenda, and reap the long-term benefits,” he said.

“One such way is gaining access to materials necessary for customers to realise their bold net-zero targets.”

The report identified that companies with higher ESG ratings returned an average total shareholder return of 34 per cent over the past three years – 10 per cent higher than the general market index.

Bendall said there was undeniable value in top miners taking ESG seriously.

“This isn’t just about doing the right thing and appeasing shareholders, but there are long-term value creation opportunities at the ready for those who bake ESG into their core operating strategies, such as improved access to capital, and riding the wave of an ever-increasing thirst for low-carbon products,” he said.

“The top 40 mining companies have enjoyed tremendous growth in the face of challenging economic conditions, which begs the question: what will they do with their near record levels of free cash flow? There exists a massive opportunity to make a big, bold pivot towards the future – and reap the benefits of doing so.”

Bendall said the next challenge is to shift from short-term adaptation to long-term transformation.

“Miners need to think about how they’ll succeed in a world undergoing profound change due to the pandemic. These decisions will shape the future of the sector for decades to come,” he said.

Australia in box seat for rare earths

Australia has well positioned to benefit from the rise of critical minerals, according to the federal government’s Outlook for Selected Critical Minerals Australia 2021 report.

Released by the Office of the Chief Economist in the Department of Industry, Science, Energy and Resources, the report detailed the prospect for market growth in metals such as lithium, cobalt, graphite, vanadium, and rare earth elements like neodymium, praseodymium and dysprosium.

Minister for Resources, Water and Northern Australia Keith Pitt said Australia must take advantage of its privileged position in the market.

“Australia is blessed with abundant resources and a highly-skilled workforce which is ready to transform these minerals and elements into the kinds of products the world needs,” Pitt said.

The report credited Lynas Rare Earths – an Australian mid-tier mining company – for being the largest non-Chinese supplier of rare earth products.

“Australia’s mined production of rare earths is forecast to grow by 9.1 per cent per annum over the outlook period (2020-2030), largely as a result of investment by Lynas at their Mount Weld operation,” the report stated.

Highly considered by the report was the market conditions surrounding electric vehicles and associated battery storage technology.

The global fleet size of electric vehicles is expected to grow by 30 per cent by 2050, leaving the battery storage market to lag behind.

This has occurred due to heightened investment by auto manufacturers, according to the report.

“Auto manufacturers have invested heavily in the transition from internal combustion engines (ICE) to electric vehicles (EV), and therefore it is in their interests to recoup their investment as quickly as possible,” the report stated.

“Currently, auto manufacturer’s planned capacity increases to 2025 exceed the requirements of announced government policies.”

Pitt said the Australian Government is supporting the development of the necessary minerals for electrification.

“Australia is already the world’s top producer of lithium, and the Government’s Critical Minerals Facilitation Office is supporting the development of other resources, downstream processing, and helping to diversify global supply chains,” Pitt said.

“Australia also has a stable investment environment and stable governance arrangements that make Australia an attractive location for critical minerals investment and development.”

Tesla targets $1bn investment in Australian EV minerals

Tesla chair Robyn Denholm has declared the company plans to spend more than $1 billion on Australia’s minerals supply to cater for growing electric vehicle (EV) demand.

Denholm, who spoke at the Minerals Council of Australia’s minerals week, said each electric vehicle has around $5000 worth of minerals with Australia capable of supplying almost all of it.

“Australia is the only country in the world with resources in all three of the critical battery metals, as well as other minerals required for the clean energy transition,” she said.

“By 2030, the value of the global lithium-ion battery market is forecast to be $400 billion. That’s eight-times the revenue generated by Australia’s coal exports in 2020.”

Tesla has also valued Australia’s environmental social governance (ESG) practice and investor confidence in mining.

“In short, a values-led mining industry has greater value to Tesla and to an increasing portion of the global marketplace,” Denholm said.

“…Australia has the potential for some of the lowest emissions resources in the world.

“This is critically important over the next 30 years, because manufacturing as a whole has to decarbonise very quickly and this means that low-carbon minerals will be at a strong advantage in the new supply chains being created for renewable energy.”

According to Denholm, Australia has a competitive opportunity to enhance its environmental, social and governance (ESG) practices for the future.

“Tesla is the world’s largest manufacturer of electric vehicles and battery storage systems,” Denholm said.

“At the heart of everything we do in our quest to accelerate the transition to sustainable energy is the lithium-ion battery – one of the most important technologies of the century.

“There is a global transition to sustainable energy underway and this presents a huge opportunity for Australia.”

Denholm said Australia should also prioritise onshore refining of its lithium to save costs and reduce emissions.

“There’s another reason for Australia to prioritise onshore refining; it’s a huge economic opportunity,” Denholm said.

“Tesla estimates that last year, Australia supplied approximately 49 per cent of the world’s lithium ore – spodumene – but zero per cent of the refined product suitable for battery cells. That lithium sold for about $100 million US Dollars – but if it was processed on shore in Australia the value would have been more like $1.7 billion dollars.

“So that’s a $1.6 billion annual opportunity and growing.”

Australian gold down but not out in 2021

Australian gold production fell by nine tonnes for a total of 74 for the March quarter, down 11 per cent on the previous period, according to gold consultants Surbiton Associates.

The output was worth $5.5 billion at the quarter’s average gold price and Surbiton director Sandra Close said the drop was nothing to worry about.

“While gold output for the quarter was down considerably, this is no cause for concern,” Close said.

“Production was about three tonnes or four per cent less than the corresponding March 2020 quarter and such variations are not uncommon.”

Surbiton said while the period was usually victim to cyclonic weather in northern Australia, this had less of an impact than other years.

Close said China’s gold production was more noteworthy, as the world leader produced 74.44 tonnes of gold for the March quarter.

“Chinese production figures need to be treated with caution,” Close said.

“Australia may even be on the way to overtaking China as the world’s largest gold producer, but it is far too early to draw any real conclusions.”

In Australia, Kirkland Gold’s Fosterville mine in Victoria fell from third to fifth on the country’s list of largest gold producers, with a decline of 55,000 ounces on the last quarter.

Retaining top spot was Newcrest Mining’s Cadia East mine with 179,546 ounces of gold for the quarter.

Close said while some larger mines fell, other up-and-coming operations will look to challenge them over the next few years.

“Fosterville, Tropicana and Boddington together accounted for a reduction in output of 116,000 ounces, or 3.6 tonnes of gold, which was more than one third of the total reduction for the March 2021 quarter,” Close said.

“Novo and Ora Banda will increase output as they ramp up to full capacity over the next few months.

“Also, Capricorn Metals’ Karlawinda is due to start up mid-year and Wiluna Mines’ expansion project is underway.”

Close had no worries for the future of Australian gold, as prices and expenditure in exploration have uplifted the sector significantly.

“Thanks to higher gold prices in the last couple of years, the gold sector has continued to raise considerable capital and there is a tremendous amount of exploration going on, with excellent results being reported,” Close said.

“The chances of Australia’s gold output declining sharply in the next few years is unlikely.”

Australia’s largest gold producers for the March 2021 quarter were:

Cadia East 179,546 Newcrest Mining Ltd

Boddington 152,000 Newmont Inc.

Tanami 117,000 Newmont Inc.

Super Pit 111,278 Northern Star Resources Ltd

Fosterville 108,679 Kirkland Lake Gold Inc.

Copper explorers back record price run

Two Australian companies are confident that copper prices will continue to set records, with the red metal reaching a new high of $US10,724.50 ($13,682) on the London Metal Exchange (LME) overnight.

The red metal’s previous all-time high was recorded on May 7, where it reached $US10,361.

Junior explorers Kincora Copper and QMines started trading on the ASX in March and May, respectively, with both companies aiming to develop their copper assets.

QMines executive chairman Andrew Sparke said 11 straight months of decreased copper supply in Chile and COVID-19-related labour issues in South America have raised demand.

“The amount of copper we need to green the world is enormous,” he told Australian Mining.

“Where all this copper supply is going to come from is certainly yet to be determined. That backdrop is causing declining investors on the LME.

“It’s a really nice environment to be a copper explorer or company transition into copper development.”

Copper has been in high demand due to increases in economic stimulus from COVID-19.

Strained supply of the commodity has driven the copper price upwards, off the back of economic stimulus spending and copper’s importance in clean energy technology.

Sparke said ageing mines in South America, a country that has historically been a major supplier of the red metal, caused resources to be harder to extract as mines were forced to go deeper underground.“My view is demand will increase when supply is quite challenged. That is supported by many groups – Goldman Sachs is expecting a 600-900 per cent increase in copper demand until 2030,” he said.

QMines is developing its copper projects in Queensland, with its ASX listing aiming to fund a large exploration program at its Mt Chalmers copper-gold mine, a historic site that was operated between 1898 and 1982.

Its existing inferred resource is 3.9 million tonnes at 1.15 per cent copper and 0.81 grams per tonne of gold.

“In terms of unlocking value, we’re going to use those proceeds from the capital raised to roll out an exploration program that has an aim of increasing the resource,” Sparke said.

Kincora Copper president and chief executive officer Sam Spring said the push for decarbonisation and stimulus packages has increased copper demand.

“It’s a tailwind for the junior sector,” he told Australian Mining. “The improving copper price increases investor sentiment and that filters down to the junior miners who increase exploration with brownfield and greenfield projects.”

Kincora Copper has assets both in Australia and Mongolia, with the company listed on the ASX and the Toronto Stock Exchange (TSX).

Spring said copper was vital to a clean energy future due to its conductive properties.

“One thing about copper is that it’s the most cost-effective means to conduct electricity, both powering the vehicle, and getting power to the charging point. The shift from carbon cars to electric vehicles will see an increase in copper demand,” he said.

“It’s the same narrative for energy use at home from traditional power to solar and the likes. The foundation for this move in copper price has been in place for quite some time.”