Treasurer Ben Wyatt says keeping WA mines open was WA’s ‘golden decision’ amid soaring iron ore price

Article by Josh Zimmerman courtesy of the West Australian

Allowing WA’s resources sector to continue operating throughout the pandemic has proved a “golden decision” that has added billions of dollars to the national balance sheet and averted complete economic catastrophe.

The soaring iron ore price — touching $US108 a tonne yesterday — has fuelled an unexpected royalties and taxes bonanza at a time when practically every other government revenue stream has evaporated.

Treasurer Ben Wyatt said the State’s miners had been “an extraordinary bright spot” in an otherwise desolate economic landscape.

“I don’t think there’s any doubt that Western Australia’s performance, primarily led by our world class mining sector, has saved (Federal Treasurer) Josh Frydenberg from what would have been a much more dire set of figures,” Mr Wyatt said.

“Very early on there was a very strong push by some States to close everything down, including the mining sector.

“Western Australia resisted that firmly and I think that has been proven to be a golden decision.”

In his December State Budget update, Mr Wyatt pencilled in a “conservative” projected iron ore price of US$66.20 for the current financial year.

But nearly two months into 2020-21, the actual price has averaged nearly US$50 higher at around US$104.

For every dollar the iron ore price remains above forecast the WA Government pockets around $81 million in additional royalties.

Even if it the price were to stabilise at $US90 for the remainder of the year, that would represent a nearly $2 billion royalties windfall for the State.

“The iron ore sector has been in rude health on the back of a very, very high iron ore price that has been maintained for longer than I think most people expected,” Mr Wyatt said.

He attributed the elevated price to increasing Chinese demand at the same time as the world’s second biggest exporter Brazil grapples with a massive coronavirus outbreak hot on the heels of dam failures at key mines.

Mr Wyatt praised the adaptability of the State’s resources companies and their willingness to “reorientate” their mainly FIFO workforces – parts of which have relocated to WA from other States.

“As a result, Josh Frydenberg, myself and other Treasurers find ourselves in a fiscal position much better than it otherwise would be,” he said.

“We’re delighted that the mining sector has proven itself worthy of the challenge of operating and retaining its workforce.”

Roy Hill wins Industry Leadership Award at Platts Global Metals Awards 2020

 

Roy Hill is excited to announce that it has just won the Industry Leadership Award for Raw Materials and Mining at the prestigious S&P Platts Global Metals Awards for 2020.

This win recognises the decades of hard work that has gone into the mega Roy Hill project to make it the successful one that it is today. This win follows numerous other award wins by Roy Hill, its team and its Executive Chairman, Gina Rinehart.

Roy Hill has marked a number of firsts including the fastest ramp up in WA to its nameplate capacity, the biggest debt financing deal for a largely Greenfield’s mainland project, some of the biggest equipment in the world, and launched Australia’s first fleet of pink mining trucks and trains.

We are very proud of this win and thank the S&P Platts team for their very welcome recognition.

 

 

 

 

 

Miners lap up Bannister Downs milk

Article by Bree Swift courtesy of Farm Weekly.

 

Bannister Downs Dairy supplied its first delivery of milk to site staff at Pilbara-based iron ore mining company Roy Hill recently.

Bannister Downs Dairy managing director Sue Daubney said the company was “delighted to be partnering with Roy Hill to supply the mine site and its workers with our premium farm fresh milk”.

“We believe our product comes with a range of benefits to a very large operation like Roy Hill which is constantly considering options to minimise waste which our lightweight packaging certainly can help with, but I think that the significant positive here is the prioritisation of the health and wellbeing of staff at Roy Hill,” Ms Daubney said.

“Employees at Roy Hill will be enjoying milk delivered direct from our dairy which has the added freshness of being processed at our own on-farm facility and we’re excited to be sharing our milk across the State, from the South West to the far North.”

Bannister Downs Dairy is 100 per cent WA-owned and operates in the South West region.

Following establishment of the brand in 2005, the family owned business was offered a partnership with Gina Rinehart in 2014, allowing for significant investment across the company.

“Staff and visitors at our Hancock Prospecting, Roy Hill and Atlas Iron offices all enjoy Bannister Downs milk, and I’d like to thank ISS for enabling the Roy Hill site to be able to enjoy this delicious award-winning milk also,” Ms Rinehart said.

Bannister Downs scoops state and national Dairy Awards

 
Bannister Downs Dairy (BDD) reinforces its position as an industry leader after scooping 20 gold and silver awards in the state and national 2020 Dairy Industry Association Awards (DIAA) this week.

BDD Fresh Cream won Champion Cream in WA and the State Gold award for the second year running, highlighting the consistency of product from the Northcliffe-based dairy. BDDs Fresh Cream was also awarded the National Gold Award for the 11th year. The State Gold marks the 10th State Gold for Fresh Cream.

BDD Double Cream (a previous Australian Grand Dairy Awards champion cream winner) won its sixth and seventh gold awards at the respective DIAA state and national competitions.

The dessert creams are in good company with Bannister Downs products receiving a total of eight silver and 11 gold awards at the state and national level.

Bannister Downs managing director Sue Daubney said, “We’ve worked really hard over the years to be innovative and also to offer a product with a point of difference. But we believe the key to a great product is prioritising the basics, which is why from the very beginning we’ve always tried to be the best dairy farmers we can be.”

“Now, more than ever, we are all thinking carefully about our health and what we put into our bodies, which is why I believe that the choice to source single origin, fresh and all-natural milk from our farm should be commended,” Mrs Daubney said.

Mrs Gina Rinehart, business partner and good friend of the Daubney Family was very delighted to see their hard-working West Australian team at Bannister Downs achieve such great results.

Mrs Rinehart commented, “Even before we invested in Bannister Downs and became partners, I loved their milks and cream products – the best I’ve tasted. It is exciting for all who work at Bannister Downs to have the recognition via these tremendous awards by State and National judges. Congratulations!”

The DIAA awards announcement came in the wake of the two national gold awards presented to Ecolean in May who were recognised for the innovative and easy to use design of the Bannister Downs Dairy pouches at the 2020 Australasian Packaging Innovation and Design (PIDA) Awards, and the first delivery of farm fresh milk to the Roy Hill mine site in the Pilbara in early June, another exciting win for the South West dairy.

The delivery of Bannister Downs Dairy milk into the Pilbara mine site was made possible in conjunction with Roy Hill management and ISS Facility Services and is hopefully just the start of more fresh, local and healthy South West produce reaching the mine sites of WA’s north.

 

Roy Hill congratulates our wonderful milk supplier Bannister Downs.


Double Delight – matching awards for Bannister Downs Dairy cream range at 2020 state and national dairy awards

June, 2020

Bannister Downs Dairy has once again been judged to be among the best in the country, receiving 20 gold and silver awards across the state and national 2020 Dairy Industry AssociaFon Awards (DIAA) competitions.

With Australians across the country indulging in ‘iso-baking’, the recent announcement of the award-winners seemed appropriate, as the two dessert creams from Bannister Downs Dairy both earned gold awards at both state and national level.

The cherry on top was the welcome news that Bannister Downs Dairy’s Fresh Cream had been named Champion Cream in WA, the result endorsing the consistency of product coming out of the Northcliffe-based dairy, with the Fresh Cream winning the Champion Cream and gold award at the WA awards for the second year running. Their Double Cream (a previous AGDA champion cream winner) won its sixth and seventh gold awards at the DIAA state and national competitions, while the two gold awards for the Fresh Cream represented the 10th and 11th times it had been awarded DIAA gold.

The awards earned by Bannister Downs Dairy at this year’s Covid19 impacted events the results of which were provided online continued an award-winning tradition at the dairy which has a well-established reputation for premium quality milk and cream products.

In addition to the wins in the cream categories, Bannister Downs Dairy won gold awards for its Farm Fresh, All Lite and Non-Homogenised milks, as well as for the Mango Smoothie and Spearmint Blitz flavoured range, while it also received eight silver awards across the range, backing up a years-long winning streak for the dairy which has always done it’s best to get the fundamentals right.

Bannister Downs Dairy managing director Sue Daubney said the family knew they had to start with a quality raw product from day one.

“We’ve worked really hard over the years to be innovative and also to offer a product with a point of difference, but we knew we had to prioritise the basics, which is why from the very beginning, we’ve always tried to be the best dairy farmers we can be,” Mrs Daubney said.

“2020 has been a difficult year for people all over the world and the dairy industry here in WA hasn’t been immune from the economic impacts of Covid19 so these awards announcements have been a wonderful excuse to celebrate how far we’ve come in the 15 years since we’ve been on this journey.

“We won’t let this pandemic stop us – we’ve got lots of goals to work towards and these wins have given us a bit of pep in our step to go forward into the next half of 2020 and beyond.”

Mrs Gina Rinehart, business partner and good friend of the Daubney Family was very delighted to see their hard working West Australian team at Bannister Downs achieve such great results with the entire range of fresh Bannister Downs Dairy products at both State and national DIAA 2020 CompeFFon.”

“Mrs Rinehart commented ‘Even before we invested in Bannister Downs and became partners, I loved their milks and cream products, the best I’ve tasted. It is exciting for all who work at Bannister Downs to have the recognition via these tremendous awards by State and national judges. Congratulations! It’s also wonderful to hear our products leave shelves quickly, knowing our delicious products are enjoyed by consumers, judges and even critics! A lot of care goes into our cows, which are grazed on scenic pastures, with clean fresh air, automatic milking to reduce stress plus massage brushes when they chose, and the results of all this show in our products. We are looking forward to making our excellent West Australian range available to more people very soon’

The DIAA awards announcement came in the wake of the two national gold awards presented to Ecolean in May who were recognised for the innovative and easy to use design of the Bannister Downs Dairy pouches at the 2020 Australasian Packaging InnovaFon and Design (PIDA) Awards, and the first delivery of farm fresh milk to the Roy Hill mine site in the Pilbara in early June, another exciting win for the South West dairy.

“Now, more than ever, we are all thinking carefully about our health and what we put into our bodies, which is why I believe that the choice to source single-origin, fresh and all-natural milk from our farm should be commended,” Mrs Daubney said.

The delivery of Bannister Downs Dairy milk into the Pilbara mine site was made possible in conjunction with Roy Hill management and ISS Facility Services and is hopefully just the start of more fresh, local and healthy South West produce reaching the mine sites of WA’s north.”

ADDITIONAL INFORMATION

Bannister Downs Dairy was established in 1924 by the Daubney family. Bannister Downs Dairy brand was established in 2005.

The Daubney family have been delighted to receive awards for the Bannister Downs range at every WA Dairy Industry AssociaFon Awards, Perth Royal Show and Australian Dairy Industry Awards since 2007. Consistent recognition of the standard of product sold under the Bannister Downs Dairy banner continues to be a point of pride for the Daubney family and the team at Bannister Downs.

The Daubney family when seeking to grow their business further were fortunate to be offered a partnership by Gina Rinehart in 2014. The partnership has been very positive and allowed for significant investment across all aspects of the Bannister Downs Dairy business, always with animal welfare, team well-being and product quality as shared priorities between the Daubney family, Mrs Rinehart and her team at Hancock Agriculture.

Bannister Downs Dairy remains very much a local family farming business with a strong focus on community, and now with all the added benefits of the experience and expertise of the Hancock Agriculture team.”

Further information about ‘Milk at the Mines’ is available on request.
Media Enquiries:
courtney@bannisterdowns.com.au”
Bannister Downs Dairy, Muirillup Road, Northcliffe, WA

 

 

Iron ore’s $100 billion surge a remedy for COVID-19

Article by Brad Thompson courtesy of the Australian Financial Review

Australia’s annual iron ore export revenue is poised to crack $100 billion – a record for any commodity – as prices of the steel-making ingredient surge on the back of mine shutdowns in Brazil and strong demand from a resurgent post-COVID-19 China.

The record-breaking run shapes as a badly needed boost for Treasurer Josh Frydenberg’s budget bottom line as China relies on iron ore from Australia to fire its economy despite a sharp deterioration in relations between Canberra and Beijing.

More than $2.3 billion extra will jump into budget coffers on the back of an iron ore price that received more support over the long weekend when a Brazilian court ordered major producer Vale to shut down some operations as the country battles the COVID-19 pandemic.

Tracking by the Morrison government shows exports will top the never-before-reached $100 billion mark by June 30. The government sees this as a vindication of nationwide efforts to contain the virus and allow essential industries to operate through the height of associated lockdowns.

The previous record was $76 billion for iron ore exports in 2018-19.

The iron ore price has surged to well above $US100 a tonne since the start of this month and Australia’s biggest producers – Rio Tinto, BHP and Fortescue Metals Group – have not missed a beat through COVID-19.

After adjusting for freight, the federal budget was framed on an iron ore price of about $US62 a tonne across 2019-20. The actual figure is now tracking to come in at well above $US80 a tonne, supercharged by the June quarter pricing.

Resources Minister Keith Pitt said the iron ore industry, and the resources sector generally, were shining lights with Australia now in recession.

“The downturn we face would have been a lot more severe without the contribution of the resources sector,” he said.

“It vindicates the hard work the resources sector has done with the government to ensure the safety of workers and the communities where they operate.”

Rio Tinto shares are up 16.5 per cent since March 31, BHP has gained more than 25 per cent and Andrew Forrest’s Fortescue climbed a whopping 45 per cent. All three are set to pay bumper dividends again later this year.

Australian richest person Gina Rinehart’s estimated $21.2 billion fortune continues to grow. Macquarie research showed her Hancock Prospecting’s Roy Hill operations in Western Australia’s Pilbara achieved an annualised shipment run rate of 65 million tonnes in May.

Pilbara Ports Authority released figures on Monday showed Australia’s iron ore hub exported 62.8 million tonnes in May, a 2 per cent decrease on the same month in 2019.

However, total throughput for 2019-20 financial year to date is 649.1 million tonnes, an increase of 3 per cent from the same time last year.

Chamber of Minerals and Energy chief executive Paul Everingham said no shipments had been turned away from Asian ports since the COVID-19 outbreak sparked the first lockdowns around Chinese New Year.

Mr Everingham predicted demand would stay strong as infrastructure building and urbanisation continued in China in the economic recovery from COVID-19.

“Iron ore and gold companies are currently recruiting,” he said. “Who else is doing that?” he said.