
April 10, 2024
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The suspension of trading in the securities of Cyclone Metals Limited (‘CLE’) will be lifted immediately following the release by CLE of an announcement regarding an updated mineral resource statement.
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10 March
Rio Tinto Plans US$1.8 Billion Investment in BS1 Extension, Completes Arcadium Acquisition
Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) made headlines after two announcements on March 6.
The mining giant said it will invest US$1.8 billion to develop the Brockman Syncline 1 mine project (BS1), a move that will extend the life of the Brockman region in West Pilbara, Western Australia.
BS1 now holds all necessary government approvals. It has been developed in consultation with the Puutu Kunti Kurrama and Pinikura Traditional Owners and the Muntulgura Guruma Traditional Owners.
The development of the project will help Rio Tinto sustain production from its iron ore operations. It is projected to have a processing capacity of up to 34 million tonnes per year of iron ore.
“Securing this project extends the life of the Brockman hub. This is good for our business, good for Western Australia and good for the Australian economy,” said Rio Tinto Iron Ore Chief Executive Simon Trott in a press release.
“Rio Tinto has been mining iron ore in the Pilbara for almost six decades and our tranche of new mines will ensure we can continue to supply the globe’s ongoing need for iron ore, for decades to come," he added.
Construction of BS1 will begin this year and will provide 1,000 jobs. Once operational, the project is set to sustain an average of 600 workers. First ore, originally planned for 2028, is now scheduled in 2027.
In a separate announcement, Rio Tinto confirmed the completion of its acquisition of Arcadium Lithium. First announced in October 2024, the all-cash transaction was for US$6.7 billion.
Analysts from Canaccord Genuity previously estimated that a combined Rio Tinto-Arcadium entity could supply around 10 percent of the global lithium chemicals market by 2030. Rio Tinto also said in its initial announcement that a combination of the companies’ assets would “represent the world's largest lithium resource base.”
“This establishes us as a global leader in energy transition commodities and one of the leading lithium producers globally with one of the world’s largest lithium resource bases,” the company said in its March 6 release.
“Arcadium’s operations and growth projects are located in geographies where we already have a significant presence, allowing us to leverage our existing infrastructure, networks and expertise to achieve substantial benefits over time.”
Shared jurisdictions by Rio Tinto and Arcadium include Argentina, where Rio Tinto is developing its Rincon project.
The company released an initial mineral resources and ore reserves report for Rincon this past December, saying the project holds 1.54 million tonnes of lithium carbonate equivalent in the measured category, 7.75 million tonnes in the indicated category and 2.29 million tonnes in the inferred category.
Following the acquisition of Arcadium, Rio is now the third largest lithium producer in the world. It follows major companies Albemarle (NYSE:ALB) and SQM (NYSE:SQM).
Australia remains the world’s largest lithium-producing country at 88,000 tonnes in 2024.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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28 February
Rio Tinto Mine Workers Seek Improved Conditions, Annual Raise
The Western Mine Workers Alliance (WMWA) is launching a Majority Support Petition to initiate bargaining at the Paraburdoo operations of resources giant Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO).
Paraburdoo is located in Pilbara, Western Australia, and is one of 12 iron ore mines operated by Rio Tinto in the region.
The WMWA is a joint venture of the Mining and Energy Union and the Australian Workers Union. It seeks to rebuild “worker power in the Pilbara after two decades of aggressive deunionisation, which has resulted in inconsistent standards and conditions, without many of the protections of the east coast coal industry.”
In a Thursday (February 27) announcement by the Mining and Energy Union, WMWA Coordinator Shane Roulstone said that the petition "has been a long time in the making." The Alliance has made significant progress in building positive sentiment for unionisation since it was established in 2013.
“When we set up the Alliance just over a decade ago, so much of our efforts were dedicated to debunking misinformation from the companies about unions and showing them that we don’t bite," Roulstone explained. "Many of the workers we encountered had never worked on a site with a union presence or spoken to an organiser.”
He added that the alliance now seems to have a strong majority of Rio Tinto employees behind it. According to the release, workers at the Paraburdoo operations are split between residential workers and fly-in-fly-out workers, and both groups have separate concerns the union is working to address with Rio Tinto.
In addition to those concerns, under the petition, workers are seeking guaranteed annual pay increases as living costs continue to rise, especially those in the remote communities of the Pilbara. In order to normalise conditions between workers, they are also demanding pay equity and fair and detailed classification, as well as career progression.
The WMWA said that a day after the petition’s launch, Rio Tinto came out with a new compensation policy for flight delays, a key claim of Rio Tinto’s Paraburdoo workers. Although it was lower than what was asked for in the petition, the WMWA said it shows that the company recognises "recognition that Pilbara workers are finally standing up and demanding a fairer go."
WMWA is also bargaining with international mining major BHP (ASX:BHP,NYSE:BHP,LSE:BHP) for an agreement covering its South Flank and Area C operations in the Pilbara.
In late 2024, Rio Tinto and BHP made headlines when class action lawsuits regarding sexual harassment and discrimination were launched, with the firm who filed them saying they had spoken to hundreds of women who worked for the companies and expected thousands to join the lawsuits. Both companies subsequently issued statements denouncing workplace sexual harassment and underscoring their commitment to employee safety.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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27 February
Fenix Aims to Boost Iron Ore Output with CZR Resources Acquisition
Fenix Resources (ASX:FEX,OTC Pink:FEXRF) has announced plans to acquire exploration firm CZR Resources (ASX:CZR) through an off-market takeover, according to a Tuesday (February 25) statement.
The company said its move to absorb CZR will create a large-scale, diversified iron ore mining and logistics business operating in Western Australia's key midwest and Pilbara iron ore regions.
“The acquisition of CZR is a transformational event for Fenix," said Fenix Executive Chairman John Wellborn, noting that CZR's Robe Mesa is one of the Pilbara's last large-scale high-quality iron ore development assets.
“Fenix’s market-leading port, logistics and mining capabilities are ideally suited to rapidly and efficiently advance the Robe Mesa into production and maximise value creation for our combined shareholder group.”
Robe Mesa is CZR’s flagship project, boasting ore reserves of 33.4 million tonnes at 55 percent iron and a resource base of 45.2 million tonnes at 56 percent iron. According to an October 2023 definitive feasibility study (DFS), the asset is expected to produce between 3.5 million and 5 million tonnes per annum over an eight year mine life.
“Robe Mesa provides the opportunity to develop long life iron ore production at a C1 FOB cash cost below AU$50 per wet metric tons, as outlined in the CZR DFS,” Wellborn added in the company's release.
Fenix is on track to triple its iron ore output this year following its portfolio expansion in the midwest area. By adding CZR's assets to its portfolio, it will have interests in projects with resources of about 140 million tonnes of iron ore.
Fenix’s flagship asset is its wholly owned Iron Ridge mine, home to some of the highest-grade iron ore in Western Australia. Iron grades increase with depth, and the site has a current resource of 6.6 million tonnes at 65.1 percent iron.
Under the proposal, CZR shareholders will receive 0.85 Fenix shares for every CZR share held.
The amount is subject to increased offer consideration, with CZR shareholders entitled to 0.98 Fenix shares should Fenix acquire a 75 percent relevant interest in CZR shares on or before March 21, 2025.
The proposal remains subject to shareholder approval. However, the CZR board has unanimously recommended that shareholders accept the offer, describing it as “a robust premium” to the current CZR share price.
Once effective, CZR shareholders will hold approximately 23.8 percent of the combined group.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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19 February
Cyclone Metals, Vale to Develop Iron Bear Project in US$138 Million Deal
Cyclone Metals (ASX:CLE) has signed a binding commercial agreementwith global iron ore leader Vale (NYSE:VALE) through which the parties will jointly develop the Iron Bear asset in Québec, Canada.
The partnership aims to leverage Vale's extensive resources and expertise to advance Cyclone's Iron Bear project.
Cyclone and Vale first announced a memorandum of understanding for Iron Bear in November 2024. It outlined key terms for the partnership, but was non-binding except for exclusivity and confidentiality clauses.
“Project Iron Bear has now secured a clear pathway to get into production, and to become a world leader for the supply of low cost and ultra-low carbon iron ore products,” Cyclone CEO Paul Berend said in Monday's (February 17) release.
The company's agreement with Vale outlines a collaborative framework with two phases. The arrangment will see Vale provide technical and financial support to expedite the development of Iron Bear.
Under the deal, Vale will contribute US$18 million for Phase 1 of a work program at Iron Bear. It will include a prefeasibility study, as well as mineral resource drilling and environmental baseline studies.
Vale can choose to trigger Phase 2 once Phase 1 is complete; completion will occur either when Cyclone receives Vale's full Phase 1 contribution, or when the Phase 1 work program at Iron Bear has been "substantially completed."
When Phase 2 begins, the companies will form a joint venture to develop Iron Bear, with Vale receiving a 30 percent equity interest in the entity. Vale will put as much as US$120 million toward the joint venture's activities, which will include a bankable feasibility study, environmental impact studies and impact benefit agreements with First Nations.
Vale's interest in the joint venture will rise to 75 percent when it has made its total contribution for Phase 2, or when it makes a decision to mine at Iron Bear. Vale will have the right to acquire the remaining 25 percent once the decision to mine has been made; if it does not do that, it will be able to set up non-dilutionary production CAPEX funding for Cyclone.
Located near the border between Québec and Newfoundland and Labrador, Iron Bear is positioned less than 25 kilometres from an open-access heavy haul railway, allowing transportation to export markets. It has a resource of 16.6 billion tonnes at 29.3 percent iron, positioning it as a potential key player in the global iron ore supply chain.
Mitsui joins Rhodes Ridge iron ore joint venture
In another sign of increasing interest in getting new iron ore projects off the ground, Mitsui & Co. (TSE:8031) has agreed to acquire a 40 percent stake in Rio Tinto's (ASX:RIO,NYSE:RIO,LSE:RIO) Rhodes Ridge joint venture.
The Japanese conglomerate will pay US$3.34 billion to buy VOC Group's 25 percent stake in the joint venture, plus another US$2 billion to purchase a 15 percent interest in the joint venture from AMB Holdings.
According to Mitsui, Rhodes Ridge is one of the largest undeveloped iron ore deposits in the world, with a resource of 6.8 billion tonnes. It is located in Western Australia's Pilbara region, and first ore is expected in 2030. Mitsui's annual share of output is expected to be 16 million tonnes initially, expanding to 40 million tonnes down the line.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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04 February
Types of Iron Ore: Hematite vs. Magnetite
Knowing about the different types of iron ore is useful for investors interested in the space.
Iron, a key material in steel and other applications, is most often found in hematite and magnetite ores, though goethite, limonite and siderite ores are also common sources of iron ore.
Below the Investing News Network has put together some basic information about hematite and magnetite ores, including what they are and where they’re found. Keep reading to learn more.
What is hematite ore?
Hematite ore, also called direct-shipping ore, has naturally high iron content suitable for steelmaking. Because of its high iron content, hematite ore must undergo only a simple crushing, screening and blending process before being shipped off for steel production. For that reason, hematite ore is important for many mining companies.
Hematite ore is found throughout the world, with major production hotspots being Australia, Brazil, China and India.
In Australia, hematite has been the primary type of iron ore mined since the early 1960s. Nearly all of Australia's iron ore exports are high-grade hematite ore, and the majority of its reserves are located in the Hamersley mountain range of Western Australia because the range sits on a banded iron formation.
BHP (ASX:BHP,LSE:BHP,NYSE:BHP) is Australia’s leading iron ore producer and has several mining and processing hubs in Western Australia. Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) is also a major iron ore producer in the country, especially in the Pilbara region. One of its key iron producing operations is the Hope Downs iron ore complex, a 50/50 joint venture with Gina Rinehart's Hancock Prospecting.
Brazil is another of the world’s main sources of hematite ore. The country's Carajás mine, operated by major miner Vale (NYSE:VALE), is the largest iron ore mine in existence. Vale consistently ranks among the world's five largest mining companies and is the world's biggest producer of iron ore pellets. Its primary iron ore assets are in the Iron Quadrangle region of Brazil's Minas Gerais state.
A great deal of hematite ore is also mined in China. Known reserves include the Tung-Yeh-Chen and Dongye hematite ore deposits.
What is magnetite ore?
Mishainik / Adobe Stock
The mineral magnetite is a highly magnetic mineral found in solid and crystal forms. Magnetite actually has higher iron content than hematite. However, while hematite ore generally contains large concentrations of hematite, magnetite ore tends to hold low concentrations of the mineral magnetite. As a result, this type of iron ore ore must be concentrated before it can be used to produce steel. Magnetite ore’s magnetic properties are helpful during this process.
Magnetite ore may require more treatment than hematite ore, but end products made from magnetite ore are typically of higher quality than those made from hematite ore. That’s because magnetite ore has fewer impurities than hematite ore; in this way, the elevated cost of processing it can be balanced out.
Magnetite ore is currently mined in Minnesota and Michigan in the US, as well as in taconite deposits in Eastern Canada. A major mining site in Michigan is the Marquette Range, which hosts four types of iron ore deposits, including both magnetite and hematite ore.
In Minnesota, magnetite ore is mined mainly in the Mesabi Range, one of the four ranges that make up the state's Iron Range. Cleveland-Cliffs (NYSE:CLF) is a major player in the magnetite ore industry and the largest iron ore pellet producer in North America. Its Hibbing Taconite joint venture in Minnesota’s Mesabi Range has an annual capacity of around 7 million metric tons of magnetite ore.
In Canada, many mining companies focus on exploration and development in the iron-rich Labrador Trough, which runs through parts of the provinces of Québec and Newfoundland and Labrador.
This is an updated version of an article first published by the Investing News Network in 2013.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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30 January
Fortescue to Acquire Red Hawk Mining, Take Control of Blacksmith Iron Ore Project
Global mining company Fortescue (ASX:FMG,OTCQX:FSUMF) on Tuesday (January 28) announced plans to acquire Red Hawk Mining (ASX:RHK) through its wholly owned subsidiary FMG Pilbara.
The offer price is set at AU$1.05 per share, a “significant and attractive premium."
Fortescue said this amount may increase to AU$1.20 per share should FMG Pilbara acquire a relevant interest in 75 percent or more of Red Hawk’s shares within seven days.
Red Hawk's board has unanimously recommended that the offer be accepted as it is “fair and reasonable.”
“Red Hawk’s cash balance as of December 31, 2024 was AU$1.3 million," the company said.
"If shareholders do not accept the offer, then there is a strong possibility that Red Hawk will need to conduct an equity raising in the near term and shareholders may be diluted," Red Hawk added.
Fortescue said the cash consideration under the offer “delivers immediate value to Red Hawk shareholders and provides certainty, noting the significant risks to the development of greenfield iron ore projects.”
Included in Red Hawk’s assets is the Blacksmith iron ore project in Western Australia's Pilbara region. The asset is located 30 kilometres west of Fortescue’s Solomon operations.
Blacksmith holds a current resource estimate of 243.4 million tonnes at 59.3 percent iron.
According to a prefeasibility study released in May 2024, the project has the capacity to deliver 5 million tonnes per annum of direct-shipping ore product for a mine life of over 20 years.
Red Hawk and FMG Pilbara have entered into a bid implementation deed outlining the terms and conditions of the offer.
The deed contains customary deal protection mechanisms, including "no shop," "no talk" and "no due diligence" restrictions, along with notification and matching rights in the event of a competing proposal.
Unless extended or withdrawn, the proposal will be open for acceptance until 7:00 p.m. AEDT on March 3, 2025.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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