Exporters SPECIAL REPORT FEATURE Exporters

Key takeaways • Big iron ore miners continue dominance of rankings, mid- tier companies reshuffling • Top 10 exporters increase revenue about 18 per cent • Gold Corporation rising after accounting change • Chevron, Roy Hill lift as production ramps up PUMPING: Wheatstone’s second LNG production train came online in June. Source: Chevron

Dampier Salt earned about since, to be about $US73/t, reach- $280 million. ing lows below $US40/t in the Rio’s total export figure intervening period. Exports jump as increased about $5 billion, mostly The price drop has been bal- driven by a strong iron ore price anced by a depreciating exchange in 2017, which reached highs of rate and increase in production – more than $US90 per tonne in up 50 per cent to be 280mt in 2018. outlook improves March of that year. Deloitte chief economist Matt BHP, which ranks second on Judkins said WA had entered the the list of biggest exporters, has third phase of the mining boom, Gold Corporation, Alcoa, Roy Hill and Chevron have all a different reporting period, oper- with higher production volumes ating on a financial year ending from big capacity expansions hit- posted higher revenue numbers in Business News’ annual in June, and consequently the ting the market, both in iron ore impact of stronger iron ore and gas. analysis of WA’s biggest exporters. prices in 2017 has already washed “That’s also been supported through its figures. by robust pricing as well, at least The big Australian had total compared to what it was (a few sales of $23.8 billion in the 12 years) ago,” Mr Judkins said. jump on the 2017 figure of $96 revenue from Pilbara iron ore sales months to June, up slightly from Now, miners were focused on billion, driven by production in the 2017 calendar year, with the $23.2 billion in the 2017 financial building replacement production ramp-ups, improving prices, and company selling 271 million tonnes year. as older deposits depleted, he said, in one case, a major change in of the steel-making commodity. Iron ore exports through its through projects such as BHP’s accounting policy. But total production at Rio Tin- operations were about $22.2 bil- South Flank. This year’s total includes about to’s operations was about 330mt, lion, with the company having an That means the big miners will $64 billion of outbound trade by meaning exports across the oper- 85 per cent equity share of about be likely to maintain their places the four biggest iron ore miners, ation were valued at $28.8 billion. $18.9 billion. in the list’s top two spots. and $18.7 billion by the top two oil That additional portion The bigger impact on BHP’s In Rio Tinto’s case, it has held Matt Mckenzie and gas exporters (see list, page includes sales by Gina Rinehart’s export numbers came from the first place since 2010. [email protected] 24). Hancock Prospecting, which Nickel West division, where rev- The biggest mover in 2018 was @Matt_Mckenzie_ Those numbers compare with holds a 50 per cent beneficial enue increased $US348 million state government-owned Gold 6-PAGE FEATURE $60 billion among the big four ownership of the Hope Downs ($450 million) to be $US1.3 billion Corporation, which runs the iron ore players and about $18.4 joint venture. as the market for that metal, used Perth Mint and the gold refinery ESTERN Australia’s billion for oil and gas producers Rio also earns export reve- in electric batteries, rallied by as at Perth Airport. ten biggest export in the 2017 list. nue from Argyle Diamonds and much as 75 per cent. Revenue for Gold Corporation Woperators are pump- The list is ranked by operator, Dampier Salt. For comparison, in the 2013 big- was $18.9 billion, rising from $7.9 ing out about $113.6 billion of and all revenue is attributed to Diamond sales were worth gest exporters list, BHP’s iron ore billion in last year’s list. overseas sales annually between the business in control of day to about $729 million in calendar revenue was about $21.1 billion, at That was enough for the entity them, according to the latest day operations. 2017, up from about $610 million a time when the iron ore price was to lift two places into third BNiQ Search Engine data. Top-placed Rio Tinto reported in 2016, as diamond production trading around $US120/t. position. That represents an 18 per cent $US18.1 billion ($23.6 billion) of increased about 20 per cent. It has fallen about 40 per cent But the big increase was not FEATURE driven by increased production total 2017 revenue from Chevron’s keen to ensure they got projects or a price change, rather a change The longer-term positive Gorgon project would be about exactly right when starting up. in accounting policy, adopting $US3 billion. “There’s a consideration that the AASB 15 standard, accord- view on what the market is For Chevron, 2019 will be the says … there’s a lot of first-time ing to the corporation’s annual first full calendar year with all operators,” Mr Arnold said. report. going to look like in terms of five trains from the Gorgon and “(Some) are commissioning The new rules mean the mint Wheatstone projects in full oper- new types of technology, we have reports revenue, including unal- demand is starting to stimulate ation, so the company’s total will others that are commission- located metals credits received likely increase. ing assets in a new jurisdiction from customers, matched by a investment – James Arnott Woodside’s recently or for themselves, it’s a first- corresponding increase in costs announced plan to build a time operatorship into a new of sale. second train at the Pluto LNG country. The upshot is that revenue Gas movers reported revenue from the ven- facility, would double its capac- “Everybody wants to make in the 2017 financial year was ture at $US1.3 billion. ity and add about $US2.4 billion sure that in the commissioning Gas producers are likely to restated as $18.3 billion in the Assuming all partners have of annual revenue, although the process, it always has a focus on move up the list in coming years. company’s most recent annual similar contract pricing, that project is not expected to begin safety ... on environmental impact US-based energy giant Chevron report, meaning underlying indicates total NWSV revenue of shipping gas until well into the and is done in a way that there is has continued a slow progression growth was 3.3 per cent. about $US7.8 billion ($10.2 billion). next decade. no negative impact to the asset.” up the rankings, settling in sixth Significant discounting in Woodside owns a 13 per cent Shell is expected to join the Regarding new projects, he place this year, with revenue of $4.4 prices for lower-grade iron ore stake in the Chevron-oper- list next year when its Prelude said some operators would seek billion, Business News estimates. impacted on Fortescue Metals ated Wheatstone project, with floating LNG facility begins to get the most out of existing Chevron reported Australian Group’s revenue substantially, Woodside reporting revenue of production, although it is not yet assets, while others would have revenue of $US3 billion ($3.9 bil- reducing it about 20 per cent to $US36 million ($47 million) from clear exactly when that will be. been encouraged by the more be $8.9 billion. lion) in the 2017 calendar year, Wheatstonein the 2017 calendar Prelude will have 5.3 million buoyant oil price. Fortescue dropped one place to which comes from three sources year, after the first LNG shipment tonnes per annum of capacity, a “Five or six years ago we were rank fourth (see page 22 for anal- – its Gorgon and Wheatstone in October of that year. third of the level of Gorgon. talking about $US40 or $US50 ysis on iron ore sector). operations, and its 16.7 per cent Again assuming similar con- Both Prelude and Inpex’s Ich- (per barrel) as the new normal,” The state’s two alumina pro- share of the North West Shelf tract prices across all owners, thys project have been in the he said. ducers both lifted revenue, with Venture, the five-train LNG Wheatstone revenue (attributed commissioning stage for some “(Now), the longer-term pos- Alcoa rising about 37 per cent to plant in Karratha operated by to operator Chevron) would total months. itive view on what the market $4.1 billion, while Worsley Alu- Woodside Petroleum. $360 million. KPMG management consult- is going to look like in terms of mina owner South32 lifted 29 per Woodside, which also holds Extrapolating from these num- ing partner James Arnott told demand is starting to stimulate cent to $2.2 billion. a 16.7 per cent stake in NWS, bers Business News estimates Business News operators were investment.”

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Mid-tier miners iron out positions Acquisitions and pricing discounts are shaking up the rankings of WA’s main iron ore exporters.

SUPPLY: Geraldton Port is the point of departure for the Mid West’s iron ore production. Photo: Supplied

Matt Mckenzie Revenue for Atlas fell from $871 number next year as a result of One that might be particu- [email protected] million to $547 million, with dis- its acquisition of Koolyanobbing larly painful for iron ore would @Matt_Mckenzie_ $ counts for 58 per cent grade ore mine from US-based Cliffs Natu- be an escalation of the trade war WHEN it comes to multi-bil- hitting as much as 30 per cent. ral Resources. 600m between China and the United lion dollar iron ore projects, the A combined Roy Hill and Koolyanobbing was slated for KOOLYANOBBING States, because the commodi- recent action has been driven Atlas, under the control of Han- closure in June, a victim of low- REVENUE IN 2017 ty’s price would be sensitive to a by majors Rio Tinto and BHP, cock, would be expected to have grade ore price discounts, but slackening of demand or any neg- with announcements about new revenue of at least $4.3 billion, MinRes stepped in to buy the to find, and minority stakeholder ative impact on the steel market. mines such as Koodaideri and assuming price discounts for operation. Gindalbie Metals does not report Further factors would be if South Flank in the Pilbara. lower-quality ore continue. Cliffs’ 2017 annual report showed revenue from the mine. the global economy reacts badly But as projects designed to Hancock has a range of other revenue of about $600 million But data from the Mid West to the normalisation of interest produce tonnes to replace deplet- interests, including 50 per cent (adjusted to Australian dollars) Ports Authority annual report rates, and/or a property market ing mines, those big investments ownership of dairy Bannister from the Koolyanobbing mine. acts as a guide. crash in China. will help cement the two com- Downs, 67 per cent of the Kidman Assuming a similar perfor- During the 2018 financial If the Chinese currency depre- panies at the top of the BNiQ livestock business and further mance after the mine is restarted, year, Karara exported 8.3 million ciates faster than the Australian biggest exporters list, rather pastoral holdings. that would put MinRes’ export tonnes of iron ore through the dollar, that might lead Chinese than reshuffle the rankings. The company’s most notable revenue at $1.5 billion next year. Geraldton port, out of a total steelmakers to substitute their It is among second-tier miners holding is a 50 per cent share of Part of MinRes’s existing 11.3mt of the steelmaking com- lower-quality local iron ore for where most of the movement is the Hope Downs mine, through a export revenue stream is gener- modity shipped through the WA product, he said. taking place. joint venture with Rio Tinto. ated by lithium sales, with about facility. “We’re a very small fish in a Gina Rinehart-controlled Mineral Resources, which had 3.5 million tonnes of direct ship Using this figure and a rough very big sea, a small price-taking Roy Hill Holdings, for example, initially bid for Atlas, will likely ore from its Wodgina mine in the estimate of iron ore prices gives economy at the bottom of the strengthened its revenue in the score a much stronger export year to June, and 382,000 tonnes a calculation of around $800 mil- world,” Mr Langford said. 12 months to June to be about $3.8 of processed spodumene from its lion for Karara. Nonetheless, he said the latest billion, after a year of production Mount Marion mine. Bankwest chief economist modelling forecast Australian at full capacity of around 55 mil- We’re a MinRes has an additional reve- Alan Langford told Business iron ore exports would grow lion tonnes per annum. very small fish in nue stream of about $750 million News that although the iron this calendar year and in 2019, as Roy Hill’s majority owner, from mining contracts, although ore price had recovered from would Brazilian exports. Hancock Prospecting, would be a very big sea, a that is not deemed export reve- the deep lows of early 2016, Both would be through expected to feature on the list nue by Business News. there were potential risks to the increasing market share, rather next year, with the company small price taking One iron ore miner that flies market from overseas hazards. than a big rise in demand, he said. completing its acquisition of economy at the under the radar is Karara Mining, 17th-ranked Atlas Iron. controlled by Chinese business SEARCH Mineral Resources Atlas is one business that has bottom the world Ansteel. struggled with the impact of large As a foreign-owned, private There are 18,708 results from our index of 96,421 articles, discounts for lower-grade iron ore. – Alan Langford company, revenue data is difficult 9,569 companies and 34,637 people EXPORTERS FEATURE

OFFSHORE: Much of WA’s grain exports flows through CBH’s Kwinana terminal. Photo: Gabriel Oliveira Agribusiness chews on challenges

The state’s agriculture sector has been ruffled by falling exports and revenues, coupled with growing animal welfare concerns and international competition.

Matt Mckenzie the year to June 2017, down from The 2017/18 season was also a [email protected] $247 million the prior year. strong one for the grain handler, @Matt_Mckenzie_ It’s a very significant challenge The numbers could be worse. with export revenue of about $3 WESTERN Australia’s biggest Earlier this year, the state gov- billion, a slight decrease on the for the industry … (we) need a whole agriculture exporters, including ernment suspended two live 2016/17 performance. CBH Group, Plum Grove and sheep export licences, to Emanuel “We had about 52 per cent Wellard, all experienced a fall Exports and a subsidiary, after market share in WA,” Mr Craig said. of industry approach, being more cost in sales last year as the state’s community concerns about animal He said the biggest threat was two biggest farm sectors – grain cruelty and deaths on voyages. increasing production from the efficient, improving productivity and livestock – seek to resolve That led federal Labor in May Black Sea countries of Ukraine challenges. to commit to phase out live sheep and Russia, which are grabbing – Andrew Young The market has been particu- exports. market share in South-East Asia. larly difficult for businesses in A report prepared for WAFarm- Production costs, particularly the live export market, with a ers by Victorian consultancy for wheat, were much lower for About 1.5 million tonnes of perhaps in excess of 2 million further threat looming from com- Mercardo forecast a live sheep Black Sea countries, Mr Craig said. extra capacity has been added to tonnes. munity criticism of the sector. ban would cost WA as much as That was because yields were CBH’s network in the past year, Australian Export Grains Inno- Both Wellard and Interna- $150 million, with the additional much higher. through around 20 projects. vation Centre business analysis tional Livestock Export posted supply to reduce local prices up to In WA, farmers might expect Another major grain handler manager Ross Kingwell said there big reductions in revenue. 35 per cent. two to three tonnes of wheat is Plum Grove, which had reve- was still plenty of opportunity in ASX-listed Wellard said revenue More recently, the federal gov- from every hectare of land. nue of $500 million, compared the region despite competition. was $291 million in the 2018 finan- ernment issued a notice to ILE For Black Sea countries, with with $527 million in the previous “Indonesia towards 2050 is cial year, down 41.5 per cent on the about its own export program. much richer soil, the number season. going to become probably the previous period. Grain exporters face a compara- was closer to nine tonnes per Plum Grove managing director fifth-most rich country on the Part of that revenue is from tively simpler challenge: reducing hectare. Andrew Young said there was an globe, it is experiencing huge processing and vessel chartering. costs to fight competition from One saving grace for Australia “extreme” level of competition per capita increases each year in The core segment of the busi- Ukraine and Russia. would be rising freight costs, from Black Sea countries into its income,” Mr Kingwell told a ness, sales, had a 54.8 per cent Local growers have flagged a which would disproportionately South-East Asian markets. recent Committee for Economic decline to $199 million. strong season ahead, with the hit countries such as Ukraine, “It’s a very significant challenge Development of Australia lunch. That drop was enough to Grains Industry Association of which are further away from for the industry … (we) need a “As people get richer, they con- take Wellard out of the BNiQ WA predicting production of 14.2 markets. whole of industry approach, sume more dairy products, fruit, Search Engine’s biggest export- million tonnes. CBH is going to significant being more cost efficient, improv- meat, they also switch away from ers list, down from 17th last CBH Group general manager efforts to lower its own supply ing productivity,” Mr Young said. rice into wheat-based products, year. of trading Jason Craig said prices chain costs, with a network He said this year would be par- and they consume more bread, The most recent publicly avail- would be near record highs investment strategy worth ticularly unique in that a large cakes and pastries.” able numbers for cattle trader ILE because of the drought on the around $700 million across amount of grain would probably That meant more demand for show revenue of $185 million for east coast. five years. flow from WA to the east coast, local grain, he said. FEATURE EXPORTERS

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LATEST $ PREVIOUS $ 29.8bn 25bn IRON ORE 28.8bn 24.1bn ARGYLE DIAMONDS 729m 610m DAMPIER SALT 280m 348m 6 7 8 1 1 LATEST $ PREVIOUS $ 23.8bn 23.2bn GOLD CORPORATION IRON ORE 22.2bn 22bn 2 NICKEL WEST 1.7bn 1.3bn WESTERN LATEST $ 2 AUSTRALIA’S 18.9bn 3 BIGGEST PREVIOUS $** 18.3bn EXPORTERS LATEST $ PREVIOUS $ 4 OPERATORS RANKED BY 3 ANNUAL EXPORT SALES 14.3bn 15.1bn NWSV* 10.2bn 11bn PLUTO 3.1bn 3.3bn 5 AUSTRALIA OIL 1bn 805m 20 19 18 LATEST $ 4 8.9bn PREVIOUS $

11.2bn Sources: BNiQ, annual reports * North West Shelf Venture 5 ** 2017 (i.e. previous) number restated after change in accounting policy

All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email [email protected]. WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available. The above list (and more than 80 other lists) inclusive of address, phone and email information are available online to all business subscribers at www.businessnews.com.au. If you are not a fully paid up subscriber of Business News and want access to over 6,700 businesses and 24,000 executives, please contact us on 9288 2100 or email [email protected]. EXPORTERS FEATURE

LATEST $ 4.4bn PREVIOUS $ LATEST $ 2.9bn 4.1bn LATEST $ PREVIOUS $ 3.8bn ORE IRON 3bn PREVIOUS $ LATEST $ 3bn 3.0bn 7 8 LATEST $ PREVIOUS $ 9 2.2bn ALUMINA 3.1bn PREVIOUS $ LATEST $

10 ORE IRON 1.7bn 2bn 11 LATEST $ ORE IRON LITHIUM, PREVIOUS $ WESTERN 867m 1.2bn 12 PREVIOUS $ AUSTRALIA’S 534m ORE IRON LATEST $ PREVIOUS $

13 SANDS MINERAL LATEST $ n/a BIGGEST 604m 800m 14 PREVIOUS $

EXPORTERS 311m COPPER OPERATORS RANKED BY 15 LATEST $ PREVIOUS $ ANNUAL EXPORT SALES LATEST $ 596m 513m 16 550m PREVIOUS $ LATEST $ 17 ORE IRON 18 423m 547m 19 LATEST $ PREVIOUS $ 500m GRAIN 871m

PREVIOUS $ LATEST $ SANDS MINERAL 527m 452m PREVIOUS $ LATEST $ 398m COPPER 352m PREVIOUS $ 603m

SEARCH Exporters There are 5,126 results from our index of 96,432 articles, 9,569 companies and 34,645 people

Aust mining exports to hit record $252bn WA may still ban sheep exports in summer 02 Oct 2018 by AAP 17 May 2018 by AAP Business News Iron ore exports are expected to increase to 878 million tonnes in 2019- The federal government has endorsed changes to the livestock export 2020. AAP Mining The ... federal government expects the nation’s resources industry designed to improve animal welfare but the WA government says it and energy exports to hit a record $252 billion in ... However, a report by the may still try to ban live sheep exports to the Middle East during the northern Department of Industry said the value of such exports would edge back to hemisphere summer. ... around ... Labor likely to phase out live sheep exports Northern ready to export first rare earths shipment 03 May 2018 by Matt Mckenzie 20 Aug 2018 by Matt Birney WA represents 85 per cent of national live sheep exports. Matt Mckenzie ASX listed Northern Minerals has brought its Browns Range pilot plant Agribusiness Politics ... project in W.A.’s Kimberley region to mechanical completion and has produced about 100 tonnes of xenotime concentrate for commissioning into the hydrometallurgical plant. The company can ... Live export ban cost up to $150m 20 Apr 2018 by Matt Mckenzie The cost to Western Australian farmers of a ban on live sheep exports Govt suspends second live export licence could be more than 10 times previous estimates, as much as $150 million, 12 Jul 2018 by Tayler Neale according to a report released today. ... costs of up to $70 million. Emanuel Exports Alannah MacTiernan ... WA minister wants live export summer ban Gorgon leads way as LNG exports pass $30bn 09 Apr 2018 by AAP Business News 17 Jul 2018 by Matt Mckenzie Alannah MacTiernan has also called for the phasing out of older live export A doubling of production at Chevron’s Gorgon LNG plant has helped boost ships. AAP Business ... national exports of the fuel 38 per cent to $30.8 billion in the year to June 2018, according to consultancy Energy Quest. ... Johnston in defence export role 09 Apr 2018 by Matt Mckenzie Iron ore drives record Pilbara exports Former defence minister and senator for Western Australia David Johnston 10 Jul 2018 by Tayler Neale has been appointed Australia’s first defence export advocate, after the Pilbara Ports Authority has reported a record annual throughput for the 2018 federal government committed to spend an additional $20 million every year financial year, with nearly 700 million tonnes of cargo passing over its docks, to support the sector. ... on the back of an uptick in activity at Port Hedland. ...

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