B08 Metal Ore Mining

Innovation agenda must embrace mining: Costello

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

Former treasurer Peter Costello has used a Minerals Council of Australia function to stress that the mining industry has a role in the Federal Government’s "innovation agenda". He argued that the so-called "new economy" needs traditional industries such as mining and agriculture. Costello also criticised a push by Western Australian National Party leader Brendon Grylls to increase the iron ore levy paid by BHP Billiton and Rio Tinto from $A0.25 per tonne to $A5.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Ore fears as China steel hits its peak

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Original article by Rowan Callick
The Australian – Page: 17 & 18 : 12-Sep-16

China Metallurgical Industry Planning & Research Institute president Li Xinchuang expects the iron ore price to remain within a range of $US50 to $US60 per tonne for some time. He also says steel production in China peaked in 2014, when output totalled 823 million tonnes. Steel production fell to 804 million tonnes in 2015. Meanwhile, China’s steel exports have risen in recent years while domestic consumption has declined, while Li has criticised the Australian Government’s recent stance on Chinese investment.

CORPORATES
CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Miners lash Joyce’s ore comments

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 12-Sep-16

Minerals Council of Australia CEO Brendan Pearson has described a proposed levy on iron ore production in Western Australia as a "bad idea" that will adversely affect both the sector and suppliers. Federal National Party leader Barnaby Joyce has been criticised after saying that he understood the motivations for state counterpart Brendon Grylls in proposing that the iron ore levy paid by BHP Billiton and Rio Tinto be increased from $A0.25 per tonne to $A5.

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

South32 chief docked $1.2m over mining deaths in Africa

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Original article by Tess Ingram
The Australian Financial Review – Page: 28 : 9-Sep-16

The annual report of South32 shows that the Australian-listed group’s safety record in South Africa was reflected in the remuneration of senior executives in 2015-16. The miner’s board slashed the short-term incentive payments of CEO Graham Kerr and other top executives after four fatal incidents at its South African mines and aluminium smelter during the financial year. This is estimated to have reduced Kerr’s total remuneration by around $A1.2m.

CORPORATES
SOUTH32 LIMITED – ASX S32

Short sellers target Rio, BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 8-Sep-16

New figures show that 4.79 per cent of Rio Tinto’s shares were subject to short selling on 31 August 2016, compared with 0.48 per cent on 30 July 2015. Likewise, the proportion of BHP Billiton’s shares that are short sold has risen from 0.2 per cent in March 2015 to 2.15 per cent on 31 August. Pure-play iron ore producer Fortescue Metals Group has traditionally been a key target for short sellers, but shorting activity has fallen from around 12.6 per cent in April 2015 to 2.5 per cent at the end of August.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AREAS LIMITED – ASX WSA, SHAW AND PARTNERS LIMITED, MYER HOLDINGS LIMITED – ASX MYR, WORLEYPARSONS LIMITED – ASX WOR, METCASH LIMITED – ASX MTS, MONADELPHOUS GROUP LIMITED – ASX MND, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, MACQUARIE GROUP LIMITED – ASX MQG, SHORTMAN.COM.AU

Morgan talks up ‘unusual’ nickel find

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 8-Sep-16

Comet Minerals, which is headed by mining industry veteran Hugh Morgan, has confirmed a significant nickel discovery in Nigeria. Morgan says the Titan discovery comprises metal balls that are comprised of nickel metal rather than lateritic or sulphite nickel. The extent of the Titan mineralisation has yet to be determined, although tests show that the nickel content of the metal balls exceeds 90 per cent. Morgan adds that Comet may consider an IPO in the future, and is in discussions regarding funding for the Titan project.

CORPORATES
COMET MINERALS, PATERSONS SECURITIES LIMITED, WESTERN MINING CORPORATION, NIGERIA. MINISTRY OF MINES AND STEEL DEVELOPMENT

Bullish Toro plans $250m IPO

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Original article by Paul Garvey
The Australian – Page: 19 & 24 : 7-Sep-16

Resource Capital Funds, Taurus Funds Management and Tembo Capital are among the groups that have provided funding for Toro Gold, which is slated to commence production at its Mako mine in Senegal in 2018. Toro’s Mark Connelly says a decision will be made shortly on a potential sharemarket float for the gold hopeful. He estimates that Toro would boast a market capitalisation of more than $A250m, based on the valuations of listed gold producers.

CORPORATES
TORO GOLD PTY LTD, RESOURCE CAPITAL FUNDS, TAURUS FUNDS MANAGEMENT PTY LTD, TEMBO CAPITAL LLP, PAPILLON RESOURCES LIMITED, ADAMUS RESOURCES LIMITED, DACIAN GOLD LIMITED – ASX DCN, ROXGOLD INCORPORATED, MINERAL DEPOSITS LIMITED – ASX MDL, B2GOLD CORPORATION, ENDEAVOUR MINING CORPORATION

Demand rally seen as strong enough to withstand US rate rise

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 7-Sep-16

Cadence Capital’s Karl Siegling argues that a rise in US interest rates is likely to have only a short-term impact on the recent rebound in commodity prices. James Gerrish of Shaw & Partners notes that while the gold price is likely to be the most affected by a rate rise, the iron ore price is primarily influenced by supply and demand considerations. Siegling adds that base metal producers will be the hardest hit by a rise in US interest rates.

CORPORATES
CADENCE CAPITAL LIMITED – ASX CDT, SHAW AND PARTNERS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, MACQUARIE WEALTH MANAGEMENT, INDEPENDENCE GROUP NL – ASX IGO

Atlas highly vulnerable to iron ore price decline

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Original article by Tess Ingram
The Australian Financial Review – Page: 21 : 1-Sep-16

Atlas Iron has reported net loss of $A159 million for 2015-16. The company lost $A1.38 billion in 2014-15. Revenue increased nine per cent to $A785.8 million. Auditor KPMG warned that Atlas Iron’s future is uncertain to such an extent that the group’s "ability to continue as a going concern" may be under question. At the end of June 2016, Atlas had debt of $A182.2 million and cash of $A80.9 million.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, McALEESE LIMITED – ASX MCS, KPMG AUSTRALIA PTY LTD

How the Samarco disaster unfolded

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Original article by Mark Ludlow
The Australian Financial Review – Page: 36 : 31-Aug-16

The collapse of the Fundao tailings dam at the Samarco mine in Brazil has been found to be caused by a series of events related to structural problems. The accident occurred on 15 November 2015. Its causes were analysed by consultants Cleary Gottlieb Steen & Hamilton. The study was commissioned by Samarco Mineraco’s joint owners BHP Billiton and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, CLEARY GOTTLIEB STEEN AND HAMILTON LLC