B08 Metal Ore Mining

Mining exports reignite boom

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Original article by Paul Garvey
The Australian – Page: 19 & 32 : 3-Feb-17

Data from the Australian Bureau of Statistics shows that the value of coal and metals exports reached a new monthly high of $A13.4bn in December, compared with just $A6.4bn in January 2016. The value of coal exports rose to $A5.7bn, which is the highest level since November 2008. Iron ore exports topped $A7.7bn, which is the second-highest monthly total on record. BHP Billiton and Rio Tinto are tipped to post bumper half-year and full-year profits in coming weeks.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, WHITEHAVEN COAL LIMITED – ASX WHC, RESOLUTE MINING LIMITED – ASX RSG, NEW SOUTH WALES MINERALS COUNCIL, DEUTSCHE BANK AG

BHP, Rio go on mine tax attack

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Original article by Paige Taylor
The Australian – Page: 5 : 3-Feb-17

The Chamber of Minerals & Energy of Western Australia has defended the mining industry’s advertising campaign targeting the proposed increase in the state’s iron ore levy. A spokesman says the proposal by WA National Party leader Brendan Grylls will reduce investment in the state and cost nearly 3,000 jobs in the Pilbara. Premier Colin Barnett has criticised the advertising campaign, but stresses that the levy will not be increased if the Coalition wins the election on 11 March.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Rio’s Boyne smelter to slash output, jobs

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Original article by Matt Chambers
The Australian – Page: 17 & 22 : 20-Jan-17

The rising spot price of electricity in Queensland has prompted the Rio Tinto-controlled Boyne aluminium smelter to reduce annual production by around 45,000 tonnes. While the bulk of its electricity is supplied by the Rio Tinto-backed Gladstone Power Station, some 15 per cent is sourced via the spot market, where the price recently spiked to more than $A12,000 per megawatt hour. Some jobs will also be lost at the Boyne smelter, which has a workforce of about 1,000.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BOYNE SMELTERS LIMITED, GLADSTONE POWER STATION, STANWELL CORPORATION LIMITED, AUSTRALIAN ENERGY REGULATOR, ALCOA INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET

Fast finish for Rio iron exports

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 16-Jan-17

Data from the Port of Dampier shows that Rio Tinto shipped 37.43 million tonnes of iron ore through the port in the December 2016 quarter, compared with 33.93 million tonnes in the September quarter. Glyn Lawcock of UBS says Rio Tinto should meet its revised guidance of between 325 million and 330 million tonnes from the Pilbara for calendar 2016. The group will release its production results for the full year on 17 January 2017, while its financial results will be released on 8 February.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PORT OF DAMPIER, UBS HOLDINGS PTY LTD, WHITEHAVEN COAL LIMITED – ASX WHC, HANCOCK PROSPECTING PTY LTD, SINOSTEEL CORPORATION, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, MINERAL RESOURCES LIMITED – ASX MIN, ST BARBARA LIMITED – ASX SBM, NEWCREST MINING LIMITED – ASX NCM, ROY HILL HOLDINGS PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF THE TREASURY

Forrest cautious on iron outlook

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Original article by Andrew White
The Australian – Page: 15 & 16 : 13-Jan-17

Iron ore is trading at around $US80 a tonne, although it is tipped to fall to $US51.60 by mid-2017 and $US46.70 in 2018. The price of the steel input bottomed at $US36 per tonne in 2015, prompting Fortescue Metals Group to slash its debt and reduce its workforce. Fortescue also reduced its costs to just $US14.31 per tonne, but chairman Andrew Forrest says the group aims to achieve further cost reductions given the outlook for the iron ore price. Forrest also continues to advocate action to end slavery, and he has urged all Australian companies to take a similar stance.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WALK FREE FOUNDATION, MINDEROO FOUNDATION, ROY HILL IRON ORE PTY LTD, VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Ralph slams iron ore tax hike

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Original article by Paul Garvey
The Australian – Page: 13 & 18 : 12-Jan-17

Former mining industry executive John Ralph says Western Australia’s reputation as an investment destination would be severely damaged if an increase in the iron ore levy were to proceed. WA National Party leader Brendan Grylls has proposed to increase the levy paid by BHP Billiton and Rio Tinto from $A0.25 per tonne to $A5, although it is opposed by both the Liberal and Labor parties. Ralph is a former CEO and MD of CRA, which subsequently became Rio Tinto. He was working for CRA when the iron ore production levy was introduced in the 1960s.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CRA LIMITED, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, FOSTER’S GROUP LIMITED

Paladin flags critical debt restructure

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 11-Jan-17

Australian-listed uranium producer Paladin Energy has revealed plans to restructure its debt. Some $US212m worth of convertible bonds are set to mature in April 2017, while an additional $US150m worth of convertible notes will mature in 2020. Paladin proposes to replace them with $US115m worth of secured bonds and $US102 million of convertible bonds, which would mature in 2022 and 2024. Bondholders would also be issued with shares in Paladin if they endorse the proposal.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ATLAS IRON LIMITED – ASX AGO, EMECO HOLDINGS LIMITED – ASX EHL, CITIGROUP PTY LTD, SHAW AND PARTNERS LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ELECTRICITE DE FRANCE, CHINA NATIONAL NUCLEAR CORPORATION

Thank me for miners’ GST push: Grylls

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 10-Jan-17

Minerals Council of Australia CEO Brendan Pearson has rejected suggestions that its proposal for changes to the system for distributing GST revenue was influenced by Western Australian National Party leader Brendon Grylls. The MCA’s submission to the Productivity Commission argues that the system disadvantages states that encourage the development of resources projects. Grylls urged the mining sector to lobby for GST reform in 2016, when he proposed to increase the state’s iron ore levy from $A0.25 per tonne to $A5.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Hopes for investor pay dirt look grim

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 10-Jan-17

The rebound in the price of iron ore and coking coal will boost the profits of mining companies in fiscal 2017. Anna Kassianos of Platypus Asset Management says investors should not expect a significant rise in dividends, arguing that some of the increased earnings are likely to be retained to invest in growth strategies and maintenance work that was deferred when commodities prices retreated. Bloomberg expects BHP Billiton, Fortescue Metals Group and South32 to be among the miners that increase their dividends.

CORPORATES
PLATYPUS ASSET MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, BLOOMBERG LP, ARGONAUT SECURITIES PTY LTD, NATIONAL PARTY OF AUSTRALIA

Paladin’s survival countdown

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 9-Jan-17

Australian-listed uranium producer Paladin Energy must repay some $US212m ($A289m) worth of debt by the end of April 2017. The future of Paladin has been under scrutiny since the group advised in early December 2016 that the sale of a 24 per cent stake in its Langer Heinrich uranium mine in Namibia is unlikely to proceed. A debt-for-equity swap is seen by many as the most likely option for Paladin to ensure its survival. The group’s shares are trading at around $A0.10.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ATLAS IRON LIMITED – ASX AGO, CHINA NATIONAL NUCLEAR CORPORATION, UBS AG, CITIGROUP INCORPORATED, SOUTH GOBI RESOURCES, ALUMINIUM CORPORATION OF CHINA LIMITED, ELECTRICITE DE FRANCE