Archive | Rio Tinto

Norway wealth fund allowed to invest again in Walmart, Rio Tinto, others – by Gwladys Fouche (Reuters U.S. – June 25, 2019)

https://www.reuters.com/

OSLO (Reuters) – Norway’s $1 trillion wealth fund can invest again in miner Rio Tinto and retailer Walmart after their exclusions from the fund’s investments on ethical grounds were revoked, the board of the central bank said on Tuesday.

The fund can also resume investing in Mexican tycoon Carlos Slim’s Grupo Carso, U.S. defense company General Dynamics and fertilizer-maker Nutrien, the board added in a statement.

Reinvestments will likely take place “within an appropriately long timeframe,” said the board, without specifying a timeline. The fund is managed by a unit of the central bank. Continue Reading →

Dozens of Rio tailings dams would be high hazards if they failed – by Darren Gray (Sydney Morning Herald – June 12, 2019)

https://www.smh.com.au/

Dozens of Rio Tinto tailings dams around the world would generate a “high” hazard if they were to fail, according to an audit of the global miner’s tailings dams.

The audit, released late on Wednesday, reveals just over 40 of Rio Tinto’s tailings storage facilities are deemed to have at least a “high” hazard consequence in the event of a failure, including three that were assigned a “very high” rating.

The three deemed “very high” are all outside of Australia, with one in Chile, one in Brazil and the other in Canada. Mining companies have faced intense scrutiny of their approach to tailings dams after the devastating collapse of a dam in January at Vale’s Brumadinho iron ore mine in Brazil. Continue Reading →

UPDATE 2-BHP to keep Nickel West, Rio looks to Jadar lithium for battery boom (Reuters Africa – May 14, 2019)

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LONDON, May 14 (Reuters) – Global miner BHP will hold on to the Australian nickel operations it previously put up for sale, while Rio Tinto is working on copper and lithium projects as the mining industry bets on demand for electric vehicle (EV) batteries.

The biggest mining companies say they are well positioned to provide the metals needed for the shift to EV technology, although they acknowledge the political risks and environmental issues in some of the countries where the best supplies are found.

Nickel is in demand to allow cars to travel further on a single charge. Using more nickel also cuts costs by reducing the use of expensive cobalt, a mainstay of current EV batteries. Continue Reading →

Big Four miners languish amid demand, ESG, capex concerns – by Barbara Lewis and Simon Jessop (Reuters U.S. – May 8, 2019)

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LONDON (Reuters) – The world’s biggest diversified miners have yet to see their share prices reflect their role as providers of the minerals needed for a shift to a low-carbon economy.

Mining companies provide minerals such as cobalt used in electric vehicle batteries and copper for increased electrification, and the sector’s balance sheets are in rude health.

Still, many investors are wary. Concerns include the demand outlook from China, the world’s biggest consumer of metals; the sector’s history of wasting shareholders’ money on mergers and acquisitions that never deliver returns; and a patchy record on environmental, social and governance-related (ESG) issues. Continue Reading →

Column: Iron ore tugged between Brazilian supply shock, Trump’s trade war – by Clyde Russell (Reuters U.K. – May 7, 2019)

https://uk.reuters.com/

LAUNCESTON, Australia (Reuters) – Iron ore prices look increasingly caught between the bullish reality of lower supply from Brazil and the bearish possibility of weaker demand if President Donald Trump carries out his threat to ramp up his tariff war against China.

The price action in the wake of Trump’s Twitter threat on Sunday to ramp up tariffs on $200 billion of imports from China to 25 percent was indicative of iron ore’s dilemma.

Iron ore futures on the Dalian Commodity Exchange, the most liquid market for the steel-making ingredient, dropped in early trade as investors fretted that the trade talks between the United States and China had been effectively derailed. Continue Reading →

Vale’s latest legal blow boosts iron ore stocks – by Brad Thompson (Australian Financial Review – May 7, 2019)

https://www.afr.com/

Australia’s booming iron ore stocks are tipped to stay higher for longer in the wake of the latest blow to Brazilian producer Vale’s plan to reopen mines that were shuttered in the wake of the tragic Brumadinho tailings dam collapse.

Vale was forced to suspend work at its 30 million tonne-a-year Brucutu mine on Monday after a Brazilian court overturned an earlier ruling that it could reopen.

The ruling from the higher court came as Vale said it expected sales of iron ore and pellets to be at the low to mid-end of previous guidance of 307 million tonnes to 332 million tonnes in 2019. Continue Reading →

Column: Rio Tinto warning may rupture mining industry into green and dirty – by Clyde Russell (Reuters U.K. – April 16, 2019)

https://uk.reuters.com/

The mining industry is starting to come under more intense pressure
from investors who are demanding sustainable and ethical mining.

LAUNCESTON, Australia (Reuters) – It’s not quite yet pistols at dawn but Rio Tinto’s polite warning to mining lobby groups that they have to acknowledge the threat of climate change is likely a sign that the industry will inevitably fracture into two camps.

These factions could be described as the “green” miners, who produce the minerals essential for the transition from the age of oil to the age of electricity, and the “dirty” miners who remain trapped in coal and other minerals deemed unnecessary for a carbon constrained future.

Rio Tinto’s carefully worded statement on industry associations, released last week, said that it would only work with groups aligned with its own climate principles. Continue Reading →

Rio Tinto to join World Bank’s green mining program (Reuters U.S. – April 9, 2019)

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SANTIAGO (Reuters) – Rio Tinto said on Tuesday it will join a World Bank initiative intended to help developing countries sustainably mine lithium, cobalt and other minerals critical to the global electrification trend.

Rio’s participation in the program, known as Climate-Smart Mining and set to launch in May, comes as miners face increasing pressure from investors and non-governmental organizations to make supply chains more sustainable while reducing climate impact.

The program “will innovate and deploy financing specifically designed to manage the clean energy transition – responsibly, pragmatically and sustainably,” Arnaud Soirat, Rio’s head of copper and diamonds, said in a Tuesday speech at CRU’s World Copper Conference in Santiago. Continue Reading →

Mongolia lawmakers seek to rewrite Oyu Tolgoi deal – by Munkhchimeg Davaasharav (Reuters U.S. – April 4, 2019)

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ULAANBAATAR, April 5 (Reuters) – A group of Mongolian legislators has recommended one of the agreements underpinning Rio Tinto’s Oyu Tolgoi copper mine should be scrapped and another changed, adding to the giant project’s political problems.

The Gobi desert copper deposit promises to become one of Rio Tinto’s most lucrative properties, but it has been subject to repeated challenges from politicians who argue the spoils of the country’s mining boom are not being evenly shared.

It has also been at the centre of an anti-corruption investigation that has seen the arrest of two former prime ministers and a former finance minister. Continue Reading →

COLUMN-Iron ore prices shift structurally higher on Vale woes – by Clyde Russell (Reuters U.S. – April 2, 2019)

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HONG KONG, April 2 (Reuters) – Iron ore prices in China reached a record high on Tuesday as market participants wrestled two dilemmas, namely the likely temporary weather-related disruptions from Australia and the rather more serious safety outages in Brazil.

A major tropical cyclone hitting the main producing and shipping areas in the world’s largest iron ore miner was always likely to boost prices, and indeed, markets largely responded as expected.

Iron ore futures on the Dalian Commodity Exchange rose 4.2 percent on Tuesday to reach 665.5 yuan ($99) a tonne, the most since the contract starting trading in 2013. Continue Reading →

Iron Ore Thunders Higher as Mine Dams Closed, Exports Collapse – by Krystal Chia (Bloomberg News – April 3, 2019)

https://www.bloomberg.com/

Iron ore’s supply-driven rally picked up pace on Wednesday, with futures topping $90 a ton, amid increasing concern the crisis at Brazil’s Vale SA will be drawn out as regulators ordered dozens of dams to be shut.

Futures for benchmark material rallied as much as 4.1 percent in Singapore, while spot ore climbed to a two-year high and the contract for high-grade ore extended gains above $100 a ton. Barclays Plc raised price forecasts on expectations for a global deficit.

The seaborne market has been roiled this year after top producer Vale suffered a dam breach in January, spurring mine suspensions and concerns there’ll be a shortage. Continue Reading →

Australian miners see some impact from two cyclones, clean up begins – by Melanie Burton (Reuters U.S. – March 25, 2019)

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MELBOURNE (Reuters) – Mining giants Rio Tinto, BHP Group and Fortescue Metals said their Australian operations had suffered some impact after two cyclones hit the country over the weekend, with clean up starting on Monday in the wake of the storms.

Cyclone Veronica has been weakening after battering Australia’s northwest, while further east, Cyclone Trevor was downgraded to a low pressure system on Sunday.

Businesses affected included those in the iron ore export hubs of the Pilbara region, as well as Rio Tinto’s bauxite operations in Weipa to the east. Continue Reading →

Rio Tinto start-up team to shape future growth – by Luke Housego (Australian Financial Review – March 10, 2019)

https://www.afr.com/

Rio Tinto chief executive Jean-Sébastien Jacques says a new internal start-up team that will work across the group’s operations will help shape how the resources giant looks in the decades to come.

“We’ve been around for 137 years – I have no doubt in my mind that the Rio you will experience in 10 or 20 years from now will be very different from the Rio today,” Mr Jacques said.

“Because I’m an old-timer from that perspective – what resonates with me I know will not resonate with my daughters or resonate with the next generation of people who run Rio Tinto.” Continue Reading →

Turquoise Hill flags potential further delays at Oyu Tolgoi – by Marleny Arnoldi (MiningWeekly.com – February 27, 2019)

http://www.miningweekly.com/

TSX- and NYSE-listed Turquoise Hill Resources has flagged potential further delays in the development schedule of the Oyu Tolgoi underground mine project, saying that the completion of ‘technically complex’ installations at Shaft 2 could take longer than previously thought.

The Rio Tinto-owned company, which holds the giant mine in a 66:34 partnership with the Mongolian government, last year said that sustainable production at the $5.3-billion underground mining project would only be achieved in the third quarter of 2021 rather than the previously guided start of 2021.

However, Turquoise Hill on Wednesday reported that it was increasingly likely that sustainable first production would be delayed beyond the third quarter of 2021. Continue Reading →

Mongolia, overseas investigators probe Oyu Tolgoi corruption claims as ex-minister re-arrested – by Munkhchimeg Davaasharav and Barbara Lewis (Reuters U.S. – January 29, 2019)

https://www.reuters.com/

ULAANBAATAR/LONDON (Reuters) – Mongolia is working with overseas investigators to look into claims of corruption at its giant Oyu Tolgoi copper mine, the country’s anti-graft body said on Tuesday, after the re-arrest of a former minister suspected of “abuse of power”.

Bayartsogt Sangajav was first arrested last April and released in June in a probe into 2009 negotiations over the development of the mine, then owned by Canada’s Ivanhoe Mines and now managed by Anglo-Australian miner Rio Tinto. Bayartsogt, a former finance minister, was among the signatories to the investment agreement, approved by Mongolia’s parliament.

Munkhtungalag Tumur, a spokeswoman with the country’s Independent Authority Against Corruption (IAAC), told Reuters it was now conducting a thorough financial investigation into the allegations that would be international in scope. She did not identify with which other countries the IAAC was collaborating. Continue Reading →