B08 Metal Ore Mining

Fortescue shares slide on Hunan Valin bonds report

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Original article by Tess Ingram
The Australian Financial Review – Page: 23 : 3-Nov-16

Bloomberg has reported that China-based Hunan Valin Group is seeking buyers for up to $US369m worth of Fortescue Metals Group’s convertible bonds. The bonds, which are slated to mature in five years, can be converted into some 65 million shares in the pure-play iron ore producer. Hunan Valin has a 14.2 per cent stake in Fortescue, whose shares closed 4.7 per cent lower at $A5.22 on 2 November 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, HUNAN VALIN IRON AND STEEL GROUP COMPANY LIMITED, BLOOMBERG LP, DEUTSCHE BANK AG, HARBINGER CAPITAL PARTNERS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Power a risk for Olympic game plan

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Original article by Michael Owen
The Australian – Page: 8 : 2-Nov-16

Mike Henry, the head of BHP Billiton’s iron ore and coal operations in Australia, says the resources giant will not proceed with an open-cut expansion of its Olympic Dam mine in South Australia. He adds that BHP may expand the existing underground mine, but he cautions that any further investment may be affected by uncertainty regarding the state’s electricity supply and the cost of electricity. Production at Olympic Dam was disrupted by the state-wide power outage in September 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELECTRANET SA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

AutoHaul fix nearing for Rio Tinto

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 2-Nov-16

Andy Barr, the CEO of Italy-based Ansaldo STS, says the group is close to completing some major projects in Australia. Ansaldo is a key supplier for Rio Tinto’s AutoHaul project to automate trains at its iron ore mines in Western Australia. Although Barr did not name Rio Tinto, the resources giant is believed to be one of the customers to which he was referring, The AutoHaul project has been delayed by software problems, which have prompted Rio Tinto to scale back its iron ore export forecasts for 2016 and 2017.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ANSALDO STS, ROY HILL HOLDINGS PTY LTD, QUEENSLAND RAIL

BHP stalwart stands down after 40 years

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Original article by Matt Chambers
The Australian – Page: 21 : 28-Oct-16

BHP Billiton veteran Dean Dalla Valle is expected to seek other roles in the corporate sector when he steps down as COO in March 2017. He does not intend to retire when he ends a four-decade career with the resources giant, and may opt for a senior executive position at a smaller company. BHP CEO Andrew Mackenzie has praised Dalla Valle’s contribution to the company. He had been regarded as a candidate to eventually succeed Mackenzie.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ORICA LIMITED – ASX ORI, TRANSURBAN GROUP LIMITED – ASX TCL, RIO TINTO LIMITED – ASX RIO, MAVERICK DRILLING AND EXPLORATION LIMITED – ASX MAD, SAMARCO MINERACAO SA, VALE SA

Iron ore won’t drop to $US40: Fortescue CEO

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 28-Oct-16

The iron ore price has rallied to more than $US60 per tonne, compared with just $US38/tonne in late 2015. Fortescue Metals Group CEO Nev Power says his company expects the price of the steel input to trade within a range of $US40-$US60 in 2017. He adds that an improvement in sentiment could prompt a further rise, adding that there is unlikely to be a large enough fall in demand for iron ore in China for the price to retreat to around $US40. Morgan Stanley forecasts that iron ore will average $US42 in the December 2016 quarter.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MORGAN STANLEY AUSTRALIA LIMITED, ROY HILL HOLDINGS PTY LTD, VALE SA

Fortescue Metals shares leap on soaring iron ore futures

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Original article by Tess Ingram, James Thomson
The Australian Financial Review – Page: 17 : 26-Oct-16

Iron ore futures traded on China’s Dalian Commodity Exchange have risen to the highest level since mid-August 2014. Shares in pure-play iron ore miner Fortescue Metals Group responded by rising 6.5 per cent to $A5.44 on 25 October 2016. Meanwhile, Fortescue has advised that it is still targeting a "C1" cost of between $US12 and $US13 per tonne for the 2016-17 financial year, compared with $US15.43 per tonne in 2015-16.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, DALIAN COMMODITY EXCHANGE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

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