Monsters of Rock: Big miners MIN, BHP, FMG enjoy gains on China credit news
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A wrap of all the news from the ASX’s biggest miners.
Major miners were well in the green on Monday, despite the iron ore price retreating at the end last week on steel output and supply concerns.
China, which despite trade tensions still consumes the vast bulk of Aussie miners’ mining exports, brought in policy support to boost the country’s economic recovery by cutting the reserve requirement ratio held by its banks.
This should improve liquidity to supply credit to Chinese businesses.
Following on from that news materials was the top sector in the ASX200, gaining 2.19% to beat a general rise of 0.83% across the benchmark ASX200.
The top movers in the large cap space were the major mining houses, with Mineral Resources (ASX: MIN) up 4.21% or $2.41 to $59.61, BHP (ASX: BHP) climbing $1.57 or 3.17% to $51.05 and Fortescue (ASX: FMG) up 3.31%.
IGO has consolidated the vast bulk of the prospective ground around its Nova Nickel-Copper Mine in the Fraser Range in the hopes of making a second major discovery.
Its number one tactic has been farm-ins with junior explorers like Matsa Resources (ASX: MAT), which today shot up on news IGO hit a 410m portion of blebby sulphides at its Symons Hill project.
We’re all waiting with bated breath on the assay results.
NRW will bank a cool $81 million by trading yellow goods at Idemitsu’s Boggabri coal mine to the project owner.
The move will help the mining contractor edge towards a net cash position, taking its net debt from $115 million to $34 million, with around 38 pieces of equipment changing hands.
$790 million-capped NRW’s share price moved 12.8% north on the news.
Chalice Mining will demerge its gold assets in Victoria into a new company to focus on its Julimar nickel-copper-PGE discovery near Perth that has driven it to a $2.56 billion market valuation over the past 18 months.
Rio last week signed an MoU to work with South Korea’s POSCO on developing low-carbon emission technologies for iron mining and steelmaking.
Both companies hope to boast net zero emissions by 2050.
“This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steel-making process. The agreement also complements Rio Tinto‘s partnerships with other customers as the industry focusses on developing technologies that support the transition to a low-carbon economy,” Rio chief commercial officer Alf Barrios said in a recent statement.