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Simmering tensions between Fortescue (ASX: FMG) and larger peer BHP (ASX: BHP) came to a head on Wednesday when executives from both companies appeared at a mining industry event in Perth. On Monday, the ABC’s Four Corners program aired an investigation into BHP’s decarbonization efforts, claiming the company had deferred billions of dollars worth of green projects. BHP blamed the delays on insufficient technology, a position Fortescue disputed during the program. BHP WA Iron Ore asset president Tim Day told the AFR Mining Summit on Wednesday that battery-electric haul trucks were “not quite ready yet”. During a fireside chat with Fortescue Metals CEO Dino Otranto at the event, the interviewer pointed to advertising commissioned by BHP citing research that its emissions fell 36% over five years while Fortescue’s rose 24%. Otranto conceded the figures were accurate but attributed the increase to Fortescue’s energy-intensive Iron Bridge magnetite operation, adding that emissions across its hematite business had declined. “Our total portfolio will go down over the next couple of years as we bring on these trucks that don’t exist,” Otranto said in a pointed jab at BHP. Otranto also took aim at criticism surrounding Fortescue’s ambitious 2030 target to achieve real zero emissions. “In the mining industry, we have been hammered for deployment of capital,” he said. “We’ve been named as wasting capital, so generally we become ultra conservative (…) So, there’s no way that somebody is going to risk what we’re doing at Fortescue. “Now, we have a very different risk appetite. And over the years, it’s proven to be the best value return for the shareholder.” Otranto defends diesel stance In April, Fortescue launched a national advertising campaign calling for reform of the Australian government’s diesel tax “handout”. Australian miners are major beneficiaries of the Fuel Tax Credit Act 2006, which refunds diesel excise to off-road fuel users. Otranto defended the campaign, saying it cost only “a couple hundred thousand dollars”. “The size of the campaign, in terms of relative media campaigns and support for media outlets, it’s kind of a drop in the ocean,” he said. “To be honest, running a few TV ads — it’s been blown up as this major propaganda campaign. “What are we actually advocating for? I know that I’m bucking the trend, and I’m standing out from the crowd, but we firmly believe that the current disincentives to align with both state and federal government to go green is absolutely not good enough.” Fortescue remains isolated in its position, with miners including BHP and industry lobby groups campaigning against changes to the legislation. Otranto took particular issue with Chamber of Minerals and Energy of Western Australia CEO Aaron Morey describing any change to the diesel rebate as “really bad tax policy”. He said the comments left him “a bit hot under the collar” and prompted him to write a letter to the CME, of which Fortescue is a member. “The peak industrial body here in WA, I don’t think adequately consulted, irrespective of the outcome of a position,” Otranto said. “There was no consultation on that. Period. And I thought it was, to be honest, the weirdest thing I’ve ever seen in my life.” Federal Resources Minister Madeleine King also weighed in, telling ABC Radio the government was not considering changes to the diesel rebate. “What I find concerning is how we have companies wanting to use government policy to create an advantage over their competitors,” she said. “Now, I think competition is a really good thing in any market and the same goes for iron ore, but to see campaigns waged throughout the media is, I think, a bit off when companies should perhaps look in their own backyard and monitor their own behaviour.”

Copper traders are once again scouring the world for metal to send to the US, as renewed speculation about import tariffs revives a trade that’s upended the $300 billion-a-year market. The on-off threat of import tariffs from President Donald Trump has dominated the copper market over the past year, often driving prices on New York’s Comex above global benchmarks and creating a massive opportunity for traders to profit by shipping metal to the US. In recent months, US copper imports had slowed after softer Comex prices made shipments unprofitable. But a pick-up in the spread between Comex and the London Metal Exchange in the past few weeks means that traders are now shipping every spare ton to the US, according to several executives, who predicted that imports could bounce back to historically elevated rates of 150,000 to 200,000 tons a month. “There’s a bit of déjà vu. We’re in the same situation as last year, where all tons are being directed to the US,” said Henry Van, head of industrial metals analysis at Trafigura Group. “It’s very conceivable that we go back to imports of 200,000 tons a month in the near future.” Front-month Comex contracts have risen to more than $500 a ton above cash prices on the LME for the first time since last autumn.The outperformance is being driven by renewed investor enthusiasm for copper as well as speculation that the Trump administration will impose import tariffs on refined metal as part of its effort to protect US industry. The commerce secretary has a June 30 deadline to deliver an update on the US copper market that could pave the way for duties starting January 2027.Trafigura last week moved to withdraw hundreds of millions of dollars of copper from LME warehouses, which was at least in part an attempt to capture premium prices on Comex, according to people familiar with the matter. The orders to withdraw were the largest the LME has seen since 2013. The renewed rush to ship to the US is adding to a bullish cocktail of factors that traders say could drive prices to fresh highs, after copper climbed to a record above $14,500 a ton in late-January. While the copper tariff trade is reviving, getting metal into the US is becoming harder. Shipping South American copper to major US ports is taking much longer than usual as disruptions tied to the Iran war ripple through global freight markets and intensify congestion at the Panama Canal. The mere threat of future duties is enough to sustain inflows, said Gerardo Tarricone, managing director of London-based Arion Investment Management Ltd. “We are going to see momentum heading into the US, which is going to make the copper story even more interesting.” Copper is already trading at historically elevated levels. It reached as high as $13,746 a ton in London on Wednesday, up about 43% in the past year. Enthusiasm about artificial intelligence has helped lift investor positioning on Comex to the most bullish since December 2020. And buyers in China, which had stepped back from the market when prices rallied earlier this year, have returned since the Chinese New Year holiday. Should Trump decide to impose tariffs on refined copper, the impact could be to squeeze supplies on the LME, traders said. That would be reinforced if the US follows through on the Commerce Department’s recommendation last year that a tariff of 15% should be imposed from January 2027. That could potentially open a window in the second half of the year when there would be a huge incentive for traders to ship copper to the US. The copper market outside of the US is in deficit, with inventories already starting to be drawn down in China, said Nicholas Snowdon, chief metals economist at Mercuria Energy Group. “The focal point of that deficit should move to the LME. It’s a matter of time,” he said. “If you get a decision for tariffs from the start of next year, the drawdown of LME stocks would be very strong in the third and fourth quarter.” Source:https://www.mining.com/web/coppers-giant-tariff-trade-is-back-and-squeezing-global-market/

According to Mining Weekly, South Africa’s Minister of Trade, Industry, and Competition, Parks Tau, will present a support plan for businesses and workers to the cabinet, as the U.S. is set to impose a 30% reciprocal tariff on South African imports starting at 12:00 a.m. Daylight Time on the 8th, which will severely impact them.   While formulating this plan, South Africa is also attempting to negotiate a trade agreement with the U.S. The U.S. accounts for 7.5% of South Africa’s total exports, making it the country’s third-largest export destination after the EU and China.   In 2024, South Africa’s exports to the U.S. amounted to $14.9 billion. Independent studies suggest this figure could decrease by up to $2.3 billion annually.   Despite South Africa proposing a framework agreement in May—including various concessions for U.S. agricultural exports and even an offer to purchase U.S. liquefied natural gas—previous efforts to reach a final agreement have been unsuccessful.   At a briefing jointly hosted with Minister of International Relations and Cooperation Ronald Lamola in Ekurhuleni, Parks Tau stated that his department is modeling the potential impact of the 30% U.S. tariffs on industries and businesses and is working with other departments to develop possible support measures.   Preliminary modeling indicates that the reciprocal tariffs will negatively affect 30,000 workers. This assessment already accounts for existing exemptions and confirmed U.S. exclusions for automobiles, steel, and aluminum.   Lamola noted that 35% of South Africa’s exports to the U.S., including copper, pharmaceuticals, semiconductors, wood products, certain critical minerals, stainless steel scrap, and energy products, will remain unaffected by the tariffs.   In addition to the already established Export Support Desk—which provides tariff advice to affected businesses and assists them in diversifying exports—Lamola outlined other measures being finalized and incorporated into the so-called "economic package," including: Various measures to help businesses absorb tariff costs while protecting jobs and production capacity. A Localization Support Fund to openly tender support for affected value-chain businesses, providing targeted assistance to enhance competitiveness and efficiency. An Export and Competitiveness Guarantee Program, including an operating capital fund and a plant and equipment fund, to address medium- and short-term challenges across industries. Collaboration with the Department of Employment and Labour to leverage existing policies and mitigate potential job losses.   In the coming days, the Competition Commission will announce a block exemption allowing competitors to collaborate on negotiations to enhance export scale and efficiency.   Parks Tau stated, “We will submit a more detailed proposal to the cabinet on Wednesday, finalizing the specifics with sister departments, which will outline the architecture of the support package.” He added that the final plan will be announced by the end of the week.   Both Tau and Lamola emphasized that they have not abandoned efforts to reach an agreement with the U.S., stating that all diplomatic channels will be used to negotiate a "mutually beneficial" deal.   However, Tau described the negotiation process as "unprecedentedly difficult," with South Africa being asked to present final terms without knowing what tariffs it might face or whether the U.S. would respond. “So, we can only make an offer, sit back, and wait in hope,” he said.   He pointed out, for example, that while the U.S. finalized a template for sub-Saharan Africa and signed a non-disclosure agreement, it also requested a delay in reaching a bilateral agreement—yet never countersigned the agreement itself. Nevertheless, South Africa has no intention of abandoning diplomatic efforts “until we can reach a conclusion.”   “I believe this is an important statement because I feel that while we could decide not to engage with any government or participate in trade negotiations, doing so would be irresponsible for our country.”       Source: