B08 Metal Ore Mining

Arrium pushes to free itself from state grid

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Original article by Sid Maher
The Australian – Page: 6 : 5-Oct-16

The Whyalla steelworks could become energy self-sufficient if plans put forward by Arrium’s administrator Mark Korda come to fruition. Full power has yet to be restored to the steelworks and Arrium’s iron ore mining operations following South Australia’s state-wide power outage. Korda is holding talks with the State Government and the Clean Energy Finance Corporation about financing to convert the steelworks’ energy supply to a combination of natural gas and its own waste gases.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, AUSTRALIA. CLEAN ENERGY FINANCE CORPORATION, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

BHP, Rio spurn WA plan for upfront tax

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Original article by Tess Ingram, Julie-anne Sprague
The Australian Financial Review – Page: 3 : 5-Oct-16

Western Australian Premier Colin Barnett has again ruled out adopting a WA National Party proposal to increase the iron ore levy on BHP Billiton and Rio Tinto from $A0.25 per tonne to $A5. However, Treasurer Mike Nahan has described the levy as an anomaly, and he has held discussions with BHP and Rio regarding alternatives such as an upfront lump-sum payment. Both companies have indicated that they would not support an upfront payment.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NATIONAL PARTY OF AUSTRALIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, HANCOCK PROSPECTING PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, REACHTEL PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Miners face $150m hit from blackout

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Original article by Matt Chambers
The Australian – Page: 17 & 27 : 4-Oct-16

OZ Minerals has advised that electric power is unlikely to be restored at its Prominent Hill mine in South Australia for at least another week, while its 2016-17 gold production forecast may not be met as a result. The recent state-wide power outage also halted production at BHP Billiton’s Olympic Dam mine and Arrium’s Whyalla steelworks. Meanwhile, the suspension of production at Nyrstar’s lead smelter at Port Pirie is believed to have contributed to a spike in the price of lead on the London Metal Exchange.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, BHP BILLITON LIMITED – ASX BHP, ARRIUM LIMITED – ASX ARI, NYRSTAR AUSTRALIA PTY LTD, LONDON METAL EXCHANGE LIMITED, KORDA MENTHA AND COLLEAGUES PTY LTD

Miners left reeling as Philippines suspend three-quarters of mines

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 28-Sep-16

Shares in OceanaGold were suspended from trading on 27 September 2016. The stock had fallen in response to reports that its Didipio mine in the Philippines may be one of 20 that could be forced to halt production after failing an environmental audit. OceanaGold has advised the market that the mine is still operating and the company has not received any formal communication from the Philippines Government regarding the status of the mine. Just 25 per cent of the mines in the Philippines are believed to have passed the audit.

CORPORATES
OCEANAGOLD CORPORATION – ASX OGC, RED 5 LIMITED – ASX RED, WESTERN AREAS LIMITED – ASX WSA, INDEPENDENCE GROUP NL – ASX IGO, PANORAMIC RESOURCES LIMITED – ASX PAN

BHP faces US minimum wage dispute

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 26-Sep-16

BHP Billiton has been accused of underpaying security personnel in the US. A former employee of BHP contractor Chapa Gate Guard Service has claimed that the two companies did not pay the minimum wage or the correct amount of overtime pay to staff who worked at BHP’s shale sites in Texas. The woman has filed a class action and is seeking the payment of all entitlements and damages. Chesapeake Energy and Chapa Gate Guard Services are also the subject of such legal action.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CHAPA GATE GUARD SERVICES, CHESAPEAKE ENERGY CORPORATION

US investors take a shine to Aussie gold

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 23-Sep-16

Newcrest Mining, Evolution Mining and Saracen Mineral Holdings are among the Australian-listed gold producers to have reported a sharp rise in US-based shareholders over the last 12 months. Resolute Mining MD John Welborn says US investors have shown more interest in Australian gold stocks than usual at the 2016 Denver Gold Forum. Metals X CEO Peter Cook warns that Australian gold producers’ shares are likely to be heavily sold down when offshore investors eventually rebalance their portfolios.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, RESOLUTE MINING LIMITED – ASX RSG, METALS X LIMITED – ASX MLX, DORAY MINERALS LIMITED – ASX DRM, GLOBAL MINING RESEARCH PTY LTD, VANECK VECTORS GOLD MINERS ETF – ASX GDX, NORTHERN STAR RESOURCES LIMITED – ASX NST, ST BARBARA LIMITED – ASX SBM

BHP’s Henry slams Grylls over mining tax plan

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 12 : 23-Sep-16

It is estimated that the iron ore levy proposed by Western Australian National Party leader Brendon Grylls would raise about $A1.5bn each year. Grylls wants to increase the state levy from $A0.25 per tonne to $A5. BHP Billiton executive Mike Henry argues that the resources giant already pays a levy of about $A5 per tonne, adding that it paid total taxes of around $A17.50 for each tonne of iron ore it produced in 2015. Henry warns that capital investment and dividends would be affected by Grylls’ proposal.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF WESTERN AUSTRALIA, REACHTEL PTY LTD, AUSTRALIAN TAXATION OFFICE

Explorers splash cash as prices improve

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 22-Sep-16

Data from accounting firm BDO shows that Australian-listed resources companies spent an average of $A418,000 on exploration in the June 2016 quarter. This is 16 per cent higher than in the March quarter, and represents the first quarterly increase in more than two years. The median exploration budget of small explorers increased from $A91,000 to $A115,000. There was also a large increase in the number of resources groups that raised at least $A10m from investors during the quarter.

CORPORATES
BDO CHARTERED ACCOUNTANTS AND ADVISERS, AUSTRALIAN INSTITUTE OF GEOSCIENTISTS

BHP expects $79b in Brazil claims to fall

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 22-Sep-16

The 2015-16 annual report of BHP Billiton shows that the five biggest legal claims arising from the Samarco tailings dam disaster in Brazil total 194.5 billion real ($A79.04bn). Project operator Samarco is the subject of more than 23,000 claims for damages and compensation, and joint venture partners BHP and Vale will be liable for any payouts that cannot be financed by Samarco itself. BHP anticipates that the final cost of compensation payouts will be much lower than the value of the claims that have been received to date.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA

BHP faces fight over $1bn tax bill

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Original article by Ben Butler
The Australian – Page: 19 & 27 : 21-Sep-16

BHP Billiton CFO BHP Peter Beaven has defended the resources group’s use of a Singapore marketing hub, describing it as a "legitimate, stand-alone business". BHP states in its annual tax transparency report that it has received a revised tax assessment of $A537m from the Australian Taxation Office for 2009 to 2013. It had previously been issued with a revised tax bill regarding its Singapore operations of $A362m, covering the years 2003 to 2008. The ATO has also ordered BHP to pay an additional $A117m in minerals resource rent tax for 2013.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, NATIONAL PARTY OF AUSTRALIA, STEIN INSURANCE, APPLE INCORPORATED, GOOGLE INCORPORATED, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT