B06 Coal Mining

Resource exports to dip before a pick-up

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Original article by David Uren
The Australian – Page: 20 : 25-Sep-14

Australia’s Bureau of Resources & Energy Economics forecasts 43 per cent growth in the nation’s earnings from resources exports in the next four years. LNG exports are expected to be a key driver of earnings growth over this period, while the agency forecasts that coal and iron ore prices will rebound in the next several years. Earnings from resources exports are forecast to fall by 1.4 per cent in 2014 before rising by 13.4 per cent in 2015

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, WESTPAC BANKING CORPORATION – ASX WBC

BHP coal venture to cut 700 jobs in Bowen Basin

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Original article by Sarah-Jane Tasker
The Australian – Page: 18 : 24-Sep-14

BHP Billiton’s joint venture with Mitsubishi will retrench 700 employees at its coal mines in central Queensland, amid continued weakness in the price of metallurgical coal. Dean Dalla Valle, the head of BHP Billiton’s global coal business, says the coal sector is likely to experience further upheaval in the next 12-18 months. Some 10,000 jobs have been shed in Australia’s coal mining industry in the last 12 months

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION

AngloAmerican says China crackdown adds to pressure

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 & 26 : 18-Sep-14

Anglo American is not concerned about China’s new quality requirements for thermal coal. CEO Mark Cutifani said that the ban will increase competitive pressure, but will have a small impact compared with the other challenges faced by the coal industry. He said that most coal exported from Australia is higher quality. Cutifani said that there is interest from buyers in the company’s coal assets

CORPORATES
ANGLO AMERICAN PLC, UBS HOLDINGS PTY LTD, MINERALS COUNCIL OF AUSTRALIA, CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION, QUEENSLAND RESOURCES COUNCIL LIMITED

Hancock allows GVK more time

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 16-Sep-14

Hancock Prospecting has given Indian company GVK more time to make the final payment for coal projects in the Galilee Basin in Queensland. GVK bought the Kevin’s Corner and Alpha projects for $US1.26 billion in September 2011. It was due to make the last payment of $US560 million ($A622 million) on 16 September 2014. The extension is open-ended at present. Coal prices have fallen significantly since GVK bought the projects

CORPORATES
HANCOCK PROSPECTING PTY LTD, GVK POWER AND INFRASTRUCTURE LIMITED, QUEENSLAND. TREASURY, WARATAH COAL PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ, MARKET FORCES PTY LTD

Miners face coal import ban

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Original article by Sarah-Jane Tasker
The Australian – Page: 18 : 15-Sep-14

Australian miners will be affected if China implements an import ban on lower quality coal. The ban on coal high in ash and sulphur has been proposed by the China National Coal Association. It is estimated that the standard would apply to nearly half of Australia’s exportable thermal coal, putting at risk about 40 million tonnes of coal exports a year

CORPORATES
CHINA NATIONAL COAL ASSOCIATION, MACQUARIE GROUP LIMITED – ASX MQG, WOOD MACKENZIE, CITI AUSTRALIA PTY LTD, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS

Analysts turn bullish on outlook for coking coal

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Original article by Barry FitzGerald
The Australian – Page: 20 : 12-Sep-14

The price of coking coal has shed 24 per cent so far in 2014, with the spot price falling to $US113.50 per tonne. Citigroup is upbeat about the outlook for coking coal, forecasting that it will rebound to around $US143/tonne in 2015 and $US152/tonne in the following year. The firm cites factors such as rising demand for steel in China and cutbacks in coking coal output in 2014

CORPORATES
CITIGROUP PTY LTD,{SPAC}TIGERS REALM COAL LIMITED – ASX TIG

‘Clock ticking’ on Rio coal venture

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 10-Sep-14

Rio Tinto is again seeking approval from the New South Wales Government for an expansion of the Mount Thorley Warkworth coal mine in the Hunter Valley. The Land & Environment Court overturned a decision to approve the project, and Rio re-submitted its plans for the mine in June 2014. Rio has warned that the mine will not be economically viable beyond 2015 unless the expansion is approved, and has argued that the mine will inject $A1.5bn into the state’s economy over two decades

CORPORATES
RIO TINTO LIMITED – ASX RIO, NEW SOUTH WALES. LAND AND ENVIRONMENT COURT, ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA

Mining tax deal delays 12pc super until 2025

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 3-Sep-14

On 2 September 2014, the Australian Government finally succeeded in repealing the minerals resource rent tax in the Senate, after striking a deal with the Palmer United Party. The superannuation guarantee will now not be increased again from its current level of 9.5% until mid-2021. It will then reach the 12% target set by the previous federal government in its mining sector tax plans by 2025. Prime Minister Tony Abbott and Treasurer Joe Hockey says the Australian Labor Party could have averted the delay, which will reduce the retirement savings pool by $A128bn over 10 years, by supporting the repeal

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, PALMER UNITED PARTY, AUSTRALIA. DEPT OF FINANCE, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, INDUSTRY SUPER AUSTRALIA PTY LTD, FINANCIAL SERVICES COUNCIL, RIO TINTO LIMITED – ASX RIO, BUSINESS COUNCIL OF AUSTRALIA

BHP says cash returns on horizon

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Original article by Barry FitzGerald
The Australian – Page: 17 : 22-Aug-14

Stockholders of BHP Billiton were unhappy that the 2013-14 results presentation and announcement of a new standalone entity to house non-core operations were not accompanied by news of a stock repurchasing scheme. It had been tipped to be worth between $US3bn and $US5bn ($A3.2bn to $A5.4bn), and on 21 August 2014 the stock fell a further $A0.10 to close at $A38.03. CEO Andrew Mackenzie concedes that the dividend lift of just $US0.05 to $US1.12 would have been disappointing for many, but says the group will return more capital to investors in the medium-term future

CORPORATES
BHP BILLITON LIMITED – ASX BHP

BHP says acquisitions not on cards

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 21-Aug-14

BHP Billiton will focus on expanding its iron ore, copper, coal and petroleum operations if the proposal to demerge its non-core assets proceeds. CEO Andrew Mackenzie says BHP will not being pursuing acquisitions, although acquisitions are likely to form a key part of the spin-off’s growth strategy. Mackenzie also says the demerger will not have any impact on BHP’s future capital management strategy. Meanwhile, BHP aims to reduce cost by a further $US3.5bn over the next three years

CORPORATES
BHP BILLITON LIMITED – ASX BHP,RIO TINTO LIMITED – ASX RIO,CREDIT SUISSE (AUSTRALIA) LIMITED,MACQUARIE GROUP LIMITED – ASX MQG,DEUTSCHE BANK AG