Rio Tinto JV invests in Western Range project, Liontown selects Zenith Energy to power Kathleen Valley and Healius chair retires

Mining giant Rio Tinto (ASX: RIO) and China’s Baowu Steel Group have announced they will invest US$2 billion (A$3 billion) as part of a joint venture to develop the Western Range iron ore project in Western Australia’s Pilbara.

Rio will own a 54% stake in the joint venture, if approved by shareholders.

If the deal goes ahead, construction will begin in 2023, generating an estimated 1,600 jobs.

Both parties also agreed to an iron ore sales agreement where Baowu will buy 126.5 million tonnes of iron ore over the course of 13 years of the project, which is expected to produce a total of 275Mt  ore over the period.

Rio Tinto iron ore chief executive officer Simon Trott expressed his delight at extending the long-standing partnership with the company’s biggest customer.

“We have enjoyed a strong working relationship with Baowu for more than four decades, shipping more than 200 million tonnes of iron ore under our original joint venture, and we are looking forward to extending our partnership at Western Range,” he said.

Mr Trott said the latest announcement marks the next step in the mining company’s investment into its iron ore business, “helping underpin future production of the Pilbara Blend, the market benchmark.”

Liontown Resources

Liontown Resources (ASX: LTR) has announced it has chosen Australian independent power producer Zenith Energy to build and finance a 95-megawatt hybrid power station for its Kathleen Valley lithium project in WA.

Liontown announced Zenith will “finance, design, construct, own and operate” the power station for 15 years initially, from when the project commences in the first half of 2024.

The hybrid power station will include wind generation from five wind turbines, each having the ability to generate 6MW.

Also, providing more energy will be a 16MWp fixed axis solar photovoltaic array paired to a 17MW/19MWh battery energy storage system.

As for thermal power, making up the total 95MW, it will comprise 27MW of gas generation and 5MW of diesel standby generation.

Once fully finished, the hybrid power station will have the largest off-grid renewable capacity of any mining project in Australia.

Liontown chief executive officer Tony Ottaiviano said the contract capped off another stage in the development of the project.

“We are delighted to partner with Zenith Energy, an experienced and highly competent power producer, following completion of a thorough competitive tender and commercial negotiation process,” he said.

“We believe Zenith Energy is an ideal partner to deliver an industry leading hybrid power station to meet Liontown’s energy needs and requirements for a high-capacity renewable solution.”

The company believes it will help meet and exceed its renewable energy factor commitments.

“When fully constructed, this hybrid power station will enable Liontown to exceed our target of achieving at least 60% renewable energy at project start-up and beyond,” he said.

Liontown also confirmed its decision to select Zenith was a result of its commitment to continue working with the Tjiwarl Traditional Owners.

Healius

Healius’ (ASX: HLS) long-serving chair Robert Hubbard has announced his resignation due to personal health reasons.

Mr Hubbard joined the healthcare company’s board back in December 2014.

He also served as chair of the audit committee between February 2015 and July 2018 before being appointed chair of the board in July 2018.

Mr Hubbard said it was a privilege to serve for nearly eight years on the board and four as the chair.

“I am proud of where Healius is today, with a streamlined portfolio, highly cash-generative businesses, a strong balance sheet and multiple growth pathways,” he said.

“I am pleased to leave behind a company with a strong culture and a clear focus on its sustainability, underscored by our role in ensuring Australians have access to quality healthcare irrespective of their circumstances.”

Jenny Macdonald has been announced as Mr Hubbard’s successor, having previously served as non-executive director of Healius and chair of the audit committee in November 2020.

She expressed her delight at fulfilling the new role.

“I am committed to helping Healius build on its achievements under Rob’s tenure, with the support of the rest of the board, the senior executive team and our wonderful people, to the benefit of all stakeholders,” she said.

Boral

In an attempt to curb its share price sliding further, building materials company Boral (ASX: BLD) has announced it has amended the start date for its new incoming chief executive officer and managing director.

The company announced that Vik Bansal will now take on the role on 10 October 2022, bringing an abundance of experience in managing industrial businesses.

Boral chairman Ryan Stokes AO said the company looks forward to working with Mr Bansal.

“We are confident that his operational and performance focused leadership will enable Boral and its people to realise the full and exciting potential of the company,” he said.

Mr Bansal will succeed Zlatko Todorcevski, who announced his resignation in June this year.

Mr Todorcevski will remain at the company until Mr Bansal’s commencement in the role and urged he supports a smooth leadership transition.

Newcrest Mining

Newcrest Mining (ASX: NCM) will maintain a 9.9% stake in Antipa Minerals (ASX: AZY) after exercising its top-up right in the company.

The news follows Antipa’s announcement on 12 September, where the company confirmed it had received interest from institutional and sophisticated investors to raise $9 million through a placement, with the option to increase to $10 million.

Antipa will issue an additional approximately 36.7 million fully paid ordinary shares at $0.027 per share in a bid to to raise a further $1 million.

Newcrest also notified Antipa of its plans to exercise its top-up right again following Antipa’s recently declared share purchase plan (SPP) of up to $3 million.

The funds will be used for ongoing exploration and project development activities at Antipa’s Minyari Dome project within Western Australia’s Paterson province.

Antipa’s managing director Roger Mason said the news is pleasing for both parties.

“We warmly welcome Newcrest’s ongoing support for Antipa and its Paterson province portfolio and strategy, including our rapidly emerging 100% owned Minyari Dome gold project,” he said.