Codelco signs early agreement with Salvador mine supervisors
The 36-month agreement will start on May 1, 2025.
BHP Billiton reported record annual results and beat analyst estimates in the process, after prices of copper, iron ore and coal reached all-time highs because of demand from China.
Profit at the world’s biggest miner surged 86% for the 12 months $23.6 billion, a full $1.4 billion ahead of expectations, on the back of earnings from iron ore, its biggest division, which jumped 122% to $13.3 billion. The Melbourne-based company raised its dividend by 22%, but did not start a new buyback program, preferring to keep its powder dry for further expansion following its $12 billion shale gas acquisition Petrohawk in July.
The Petrohawk acquisition leaves BHP Billiton with more than $60 billion remaining from a $80 billion budget for growth projects over the next five years. years.
BHP gained as much as 2% percent to 1,928 pence in London trading outpacing a positive day on the market and dragging the sector higher. The company did sound a note of caution saying: “In the current environment, tight labour and raw material markets are presenting a challenge for all operators, and BHP Billiton is not immune from that trend.”
NineMSN reports quotes CEO Marius Kloppers as saying: “The traded iron ore indices … are somewhat backwardated, from where we stand today, over the next 12 months, reflecting a somewhat easing supply/demand balance but still at very high pricing levels.”
Bloomberg reports strong growth in Chinese steel production and high prices for steelmaking materials were a key driver behind a 62% gain in full-year underlying earnings before interest and tax of $32 billion.
Reuters reports BHP Billiton, the world’s no. 3 iron ore miner, said on Wednesday it was linking the majority of its sales to monthly average spot prices but continued to negotiate long-term contracts for supply volumes after complaints from Chinese companies that short term contracts hand over too much power to suppliers.
MINING.com reported Tuesday on the changing market for iron ore where derivatives traders are starting to influence prices.
