B08 Metal Ore Mining

Iron ore price set for big fall by mid-2017

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Original article by Brian Robins
The Age – Page: 23 : 21-Oct-16

Iron ore is currently trading at around $US55 per tonne, but Fortescue Metals Group CEO Nev Power says the price is likely to fall in 2017 due to a looming increase in global supply. Power says the market has priced in the additional supply from the Roy Hill mine in Western Australia and the commencement of production at Vale’s S11D project. This will offset an expected downturn in iron ore production in China.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, VALE SA, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

Rio struggles to get Pilbara exports firing

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Original article by Matt Chambers
The Australian – Page: 21 : 21-Oct-16

Rio Tinto has advised that its Pilbara iron ore shipments for calendar 2016 will be lower than previously forecast, at between 325 million and 330 million tonnes. Its iron ore output in the Pilbara rose by two per cent year-on-year to 83.2 million tonnes in the September quarter, although port and rail maintenance issues resulted in shipments falling by five per cent to 80.9 million tonnes. Rio Tinto has again reduced its full-year production guidance for copper, following a four per cent decline in output during the quarter.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MORGANS FINANCIAL LIMITED, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, BHP BILLITON LIMITED – ASX BHP

FMG boosts exports as big iron falls short

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 19 & 24 : 21-Oct-16

Fortescue Metals Group has reported that its iron ore shipments totalled 43.8 million tonnes during the September 2016 quarter. CEO Nev Power says the group ramped up production ahead of the cyclone season, but adds that it is maintaining its full-year guidance of between 165 million and 170 million tonnes. Fortescue reduced its "C1" costs by five per cent during the quarter, to $US13.55 per tonne. The group aims to reduce this to between $US12 and $US13 during 2016-17.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, VALE SA, GRANGE RESOURCES LIMITED – ASX GRR, SHAW AND PARTNERS LIMITED, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD, MORGANS FINANCIAL LIMITED

BHP flags end of slump

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Original article by Matt Chambers
The Australian – Page: 21 : 20-Oct-16

BHP Billiton’s production report for the September 2016 quarter shows that copper and oil output fell during the period, while there was a modest rise in metallurgical coal output and iron ore production was steady. Meanwhile, CEO Andrew Mackenzie noted that there are indications that commodity markets are starting to rebalance. Fortescue Metals Group chairman Andrew Forrest recently suggested that the market has bottomed.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIGROUP PTY LTD, RIO TINTO LIMITED – ASX RIO

Grylls ups fight on iron ore tax

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Original article by Andrew Burrell
The Australian – Page: 21 : 19-Oct-16

Western Australian Nationals leader Brendon Grylls claims that parliament can alter the state agreements of Rio Tinto and BHP Billiton without their consent. The state agreements require BHP and Rio to pay a levy of $A0.25 for each ton of iron ore they produce, but Grylls has proposed lifting this to $A5. He also alleges that they have breached the state agreements. A Rio spokesman has warned that future investment in WA and iron ore supply would be jeopardised if the government sought to change the state agreements.

CORPORATES
RIO TINTO ALUMINIUM (BELL BAY) LIMITED, BHP BILLITON LIMITED – ASX BHP, NATION AIR, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF FINANCE

Gold miners pounce on exploration sites

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 18-Oct-16

Evolution Mining will pay $A3m for Newcrest Mining’s Marsden copper and gold project in New South Wales. The deal includes provision for an additional payment of $A7m should Evolution commence mining within the next 10 years. Evolution has also announced that its total gold output for the September 2016 quarter was 205,307 ounces. Meanwhile, Saracen Mineral Holdings has secured an exploration joint venture with AngloGold Ashanti at two of the former’s gold tenements in Western Australia.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWCREST MINING LIMITED – ASX NCM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, ANGLOGOLD ASHANTI LIMITED – ASX AGG

Nationals at war over mining tax

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 14-Oct-16

National Party of Australia leader Barnaby Joyce has weighed into the debate on the proposed increase in Western Australia’s iron levy. Joyce says he supports policies aimed at promoting the growth of regional areas but stresses that the tax hike proposed by WA Nationals leader Brendon Grylls is not the answer. Grylls has responded by criticising Joyce for not supporting WA. Grylls wants to increase the iron ore levy from $A0.25 per tonne to $A5, in order to offset WA’s loss of GST revenue.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, MINERALS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

BHP and Rio’s stellar run may be done

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 19 & 25 : 14-Oct-16

Citigroup’s Clarke Wilkins forecasts that the share prices of BHP Billiton and Rio Tinto will fall in coming months. He says a reduction in China’s stimulus program will in turn reduce demand for commodities. George Boubouras of Contango Asset Management adds that there is limited scope for further gains in the price of iron ore and coking coal, which will dampen earnings growth for BHP, Rio Tinto and Fortescue Metals Group. However, Peter O’Connor of Shaw & Partners remains upbeat about the outlook for the resources sector, particularly large-cap mining stocks.

CORPORATES
CITIGROUP PTY LTD, CONTANGO ASSET MANAGEMENT LIMITED – ASX CGA, SHAW AND PARTNERS LIMITED, BHOJA AIRLINES, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, ALUMINA LIMITED – ASX AWC, ILUKA RESOURCES LIMITED – ASX ILU, STANDARD AND POOR’S ASX 200 INDEX, UBS HOLDINGS PTY LTD, SOUTH32 LIMITED – ASX S32, WHITEHAVEN COAL LIMITED – ASX WHC, OIL SEARCH LIMITED – ASX OSH, AWE LIMITED – ASX AWE, TRIBECA INVESTMENT PARTNERS PTY LTD, NEWCREST MINING LIMITED – ASX NCM, UNITED STATES. FEDERAL RESERVE BOARD

Japanese, miners blast WA ‘tax grab’

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Original article by Rick Wallace
The Australian – Page: 22 : 12-Oct-16

A proposed increase in Western Australia’s iron ore levy has been criticised by speakers at a conference organised by the Australia-Japan Business Co-­operation Committee. BHP Billiton executive Arnoud Balhuizen said lifting the levy from $A0.25 per tonne to $A5 would result in job losses and reduced investment in the state. Nippon Steel & Sumitomo Metals Corporation’s honorary chairman also expressed concern about the proposal by WA National Party leader Brendon Grylls.

CORPORATES
AUSTRALIA-JAPAN BUSINESS CO-OPERATION COMMITTEE, BHP BILLITON LIMITED – ASX BHP, NIPPON STEEL AND SUMITOMO METAL CORPORATION, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, RIO TINTO LIMITED – ASX RIO, TRANS-PACIFIC PARTNERSHIP

Fortescue buys Nullagine mine for $1

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 11-Oct-16

BC Iron will sell its stake in the Nullagine iron ore mine in Western Australia to Fortescue Metals Group. The transaction comprises a token sum of $A1 plus a royalty on 75 per cent of future iron ore production. BC Iron initially sold a 50 per cent stake in the Nullagine mine to Fortescue in 2009, before repurchasing 25 per cent of Fortescue’s stake in 2012. Production at Nullagine was put on hold in late 2015 in response to a downturn in the iron ore price. It is estimated that keeping the mine in "care and maintenance" mode costs at least $A150,00 each month.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, UBS HOLDINGS PTY LTD