BHP fights English legal proceedings, APA bins gas pipeline plans and Nearmap takeover approved

BHP Group’s (ASX: BHP) share price lifted on Monday as iron ore prices continued to surge, with the mining giant also announcing it will continue to defend the English legal proceedings relating to the deadly 2015 Fundao dam collapse in Brazil.

The catastrophic Fundao dam collapse back in 2015 saw large amounts of toxic mine waste being released, destroying villages, killing 19 people and polluting hundreds of kilometres of rivers.

Vale and BHP own Fundao through joint venture subsidiary Samarco, with Vale acting as operator to the operation.

BHP confirmed it will continue defending the English proceedings, stating they are unnecessary and duplicate matters already being address through the existing and ongoing work of the Renova Foundation and legal proceedings in Brazil.

Additionally, BHP noted Vale was not included as a defendant in the English legal proceedings.

“BHP remains committed to continuing working with Samarco and Vale to support the local remediation efforts in Brazil through the Renova Foundation,” BHP stated.

“Those efforts have already provided approximately US$2.3 billion in compensation and direct financial aid in relation to the dam failure to 388,000 people to 30 June 2022.”

Vale confirmed its legal advisors will look into the details of the action and respond in due course.

“However, Vale does not accept that it is subject to the jurisdiction of the English Court and intends to challenge that jurisdiction, as well as the alleged liability in connection with the UK action,” it said.

APA Group

APA Group (ASX: APA) will abandon its controversial plans to build a pipeline to carry gas south from Santos’ (ASX: STO) Narrabri project in northern New South Wales.

The pipeline owner confirmed the news on Monday in an email to landholders along the proposed route of the 460-kilometre Western Slopes Pipeline.

APA’s latest move is seen as a victory for environmental groups and farmers that had long opposed the project.

Santos confirmed in August that it had refocused on alternative approaches to transport Narrabri gas to the market by buying rights to the Hunter Gas Pipeline.

As part of the email to landholders, which was signed by APA’s general manager for infrastructure, planning and approvals Gerard Coggan, APA referred to Santos’ alternative plan, which meant the Western Slopes Pipeline (WSP) project was not required.

“With Santos recently purchasing the Hunter Gas Pipeline it has been agreed between APA and Santos to discontinue the development of the WSP,” he stated.

IGO

IGO’s (ASX: IGO) share price has plummeted around 5% on Monday after it revealed the closure of its Nova nickel mine for several weeks after a fire broke at the site’s power station.

While the fire was contained within the room, the damage was extensive and will require a staged return, with mining expected to resume within two weeks and full power supply to take around four weeks.

IGO’s acting chief executive officer Matt Dusci said safety and wellbeing remained the number one priority.

“While this incident will result in the Nova operation being offline for several weeks, we are thankful that all of our people are safe and unharmed,” he said.

“We have activated our contingency plans and are working closely with Zenith Energy to re-establish operations at Nova as quickly and safely as possible.”

The fire is expected to cost IGO millions of dollars – dampening positive news that IGO and its joint venture partner Tianqi hit commercial production on 30 November from the Tianqi Lithium Energy Australia (TLEA) lithium hydroxide plant in Kwinana.

The plant is the first of at least three hydroxide plants to open in WA – in a push to expand downstream processing capabilities in the state.

Beach Energy

Beach Energy (ASX: BPT) has received news that Clough, which is the EPC contractor of its partly owned Waitsia gas project, has been placed into voluntary administration.

The Western Australia gas project is operated by Beach’s joint venture partner Mitsui & Co, and is due to start exporting gas through the North West Shelf liquefied natural gas plant in the second half of 2023.

On Monday, major South African-owned but WA-based contractor Clough entered into voluntary administration after a $350 million takeover deal fell through, leaving its 1,250 employees in the dark about their future.

Deloitte was appointed as Clough’s administrator and Beach stated it will work closely with all stakeholders to continue developing the 250 terajoule per day Waitsia stage two gas plant.

Clough’s voluntary administration is said to have impacted 12 companies, and several of Australia’s biggest infrastructure developments, including the Snowy 2.0 pumped hydro and the Inland Rail projects.

Nearmap

Australian aerial imagery technology and location data company Nearmap’s (ASX: NEA) shares are set to be de-listed from the Australian Stock Exchange, as its $1.05 billion takeover from a US private equity firm nears completion.

On Monday, the Federal Court of Australia approved Thoma Bravo’s takeover of Nearmap, which was valued at $2.10 per share for the Sydney-based company.

Shareholders approved the scheme by a fine margin, 78% to 22%, where a 75% majority was required.

Some shareholders argued the price undervalued Nearmap, which provides high-quality 3D aerial imagery captured by fixed-wing airplanes spanning across populated areas of Australia, the United States and New Zealand.

Nearmap chairman Peter James urged shareholders “the company’s innovation, entrepreneurial spirit and desire to employ businesses and organisations with richly detailed location information will no doubt remain under the stewardship of Thoma Bravo”.