B06 Coal Mining

China’s demand for coal up 22pc

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Original article by Sarah-Jane Tasker
The Australian – Page: 17 : 19-Jan-15

New data on coal shipments from New South Wales (NSW), issued by Coal Services, show that during 2013-14 there was an increase of 8% to 167 million tonnes. Exports to China were especially strong, despite forecasts of the boom ending, and grew 22%. China is now ranked behind just Japan and buys 23% of all coal exported by NSW. This figure had been a mere 1.1% in 2007-08. NSW Minerals Council CEO Stephen Galilee says the industry itself had always been confident of healthy conditions, in contrast with its critics in the environmental movement and elsewhere

CORPORATES
COAL SERVICES PTY LTD,{SPAC}NEW SOUTH WALES MINERALS COUNCIL,{SPAC}INTERNATIONAL ENERGY AGENCY,{SPAC}AUSTRALIAN LABOR PARTY

Chinese coal quality rules may hit exporters

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Original article by Sarah-Jane Tasker
The Australian – Page: 18 : 13-Jan-15

The ANZ Bank’s Mark Pervan says China’s move to impose quality-control restrictions on coal shipments may adversely affect Australian coal producers. China plans to crack down on the importation of coal whose ash content exceeds 16 per cent. Some 92 per cent of the 40.3 million tonnes of coal imported from Australia in the first 10 months of 2014 exceeded this threshold. Pervan notes that it is costly for producers to subject coal to greater processing in order to reduce its ash content

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION

Nation to burn past coal quota

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Original article by Peter Hannam
The Sydney Morning Herald – Page: 12 : 9-Jan-15

A study by University College London assesses the limits on carbon emissions needed to ward off dangerous climate change. The research finds that for increases in worldwide temperatures to remain within two degrees Celsius of pre-industrial levels, 82 per cent of global coal and 50 per cent of gas reserves must stay unmined. Julien Vincent of Market Forces says the study suggests that Australia will soon surpass the level of coal output with which a stable climate can cope, it it has not already

CORPORATES
UNIVERSITY COLLEGE LONDON, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, FRIENDS OF THE EARTH, ADANI ENTERPRISES LIMITED, AUSTRALIAN GREENS, MINERAL COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE ENVIRONMENT, FAIRFAX MEDIA LIMITED – ASX FXJ, INTERNATIONAL ENERGY AGENCY

Rio Tinto primed for $5b buyback

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 5-Jan-15

Credit Suisse’s Paul McTaggart suggests that Rio Tinto may pursue an on-market share buyback worth up to $US4bn ($A5bn). He says the resources group could potentially reveal plans for a buyback in February 2015, while Glyn Lawcock of UBS believes that any such buyback will be worth between $US2bn and $US3bn. Both mining analysts also expect Rio Tinto to increase its underlying dividend. The dividend payout ratio was 35 per cent in calendar 2013

CORPORATES
RIO TINTO LIMITED – ASX RIO, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE

Timing off, but BHP split still on: investors

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 18-Dec-14

BHP Billiton’s Australian-listed shares have fallen by more than 30 per cent since the group revealed plans to spin off its non-core assets. The stock has been hit by the downturn in the prices of commodities on which BHP will focus if the demerger proceeds. Michelle Lopez of Aberdeen Asset Management expects the demerger to go ahead, adding that it would most likely require a sustained decline in commodity prices for the group to abandon the demerger

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED, ABERDEEN ASSET MANAGEMENT LIMITED, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD

‘Opportunistic’ buyer Glencore still on acquisition hunt

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 15-Dec-14

Glencore chairman Tony Hayward is not expected to discuss a potential merger with Rio Tinto during a visit to Australia in mid-December 2014. Rio Tinto revealed in early October that Glencore had approached the group about a merger, and Switzerland-based Glencore is widely tipped to make another approach in 2015. Glencore CEO Ivan Glasenberg recently indicated that the group remains keen to pursue acquisitions

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, NICKEL WEST, BANK OF MONTREAL, VALE SA, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS

Anglo American to cut jobs and sell assets

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 : 11-Dec-14

The Callide coal mine in Queensland and the Dartbrook mine in New South Wales are among the assets that Anglo American plans to divest. The global resources group will also retrench 35 per cent of its employees worldwide and aim to increase its profits by an additional $US2bn. Anglo American CEO Mark Cutifani has described 2015 as a year of "transformation" for the group

CORPORATES
ANGLO AMERICAN PLC, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Cyber squatters nab South32, poke their tongue at BHP

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Original article by Paul Smith
The Australian Financial Review – Page: 3 : 10-Dec-14

BHP Billiton has ruled out buying the South32.com domain name, which is owned by a company based in Malibu. It is believed to have demanded $A10m to surrender the name. BHP recently revealed South32 as the name of the spin-off that will hold its non-core assets, and says it was not willing to pay the price being sought by the domain name’s owner. Experts say BHP should have ensured that it owned the .com domain as well as related domain names

CORPORATES
BHP BILLITON LIMITED – ASX BHP, .AU DOMAIN ADMINISTRATION LIMITED, FABULOUS DOMAINS, DARK BLUE SEA LIMITED, KARI BIAN FILM COMPANY, SOUTH32 LIMITED, NTEGRITY PTY LTD

BHP Billiton names spinoff ‘South32’

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Original article by Peter Ker
The Australian Financial Review – Page: 5 : 9-Dec-14

BHP Billiton has revealed that the selection of a business name for its proposed spin-off was based on the suggestion of an employee. South32 will be based in Perth and hold BHP’s non-core assets in Australia, South Africa and South America. The name is derived from the location of the bulk of its assets. Brand specialist Designworks also assisted BHP in developing a name for the new company

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED, DESIGNWORKS LIMITED, AUSTRALAND PROPERTY GROUP, BANK OF MELBOURNE LIMITED, OFFICEWORKS SUPERSTORES PTY LTD

Exporters face tough times: BIS

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 11 & 16 : 8-Dec-14

A report from the Bank for International Settlements has warned that commodity exporting nations may continue to experience difficult conditions for some time. It cites factors such as the rising US dollar, the recent fall in commodity prices and the funding models used by commercial banks. The price of iron ore has fallen by 18 per cent in recent months, while Brent crude oil is down 32 per cent. The Australian dollar in turn has fallen to a 4.5-year low of $US0.83

CORPORATES
BANK FOR INTERNATIONAL SETTLEMENTS, HSBC AUSTRALIA HOLDINGS PTY LTD, AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BUREAU OF STATISTICS