B08 Metal Ore Mining

Contractors line up for Rio project

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Original article by Peter Ker, Tess Ingram
The Australian Financial Review – Page: 16 : 11-Aug-16

Rio Tinto has issued the first tender for the last phase of its Silvergrass iron ore mine, which is slated to cost $US338m ($A438m). The resources giant is seeking a contractor to supply crushing machinery, a conveyor belt and electric power to the project. Rio commenced the initial phase of the Silvergrass mine in 2015, making extensive use of construction contractors. It is expected to do so with the final phase of the mine, which is expected to produce about 20 millions of iron ore each year when it reaches full capacity.

CORPORATES
RIO TINTO LIMITED – ASX RIO, NRW HOLDINGS LIMITED – ASX NWH

Newmont to mull Barrick Super Pit deal

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

US-based Newmont Mining Corporation has indicated that it could seek to gain full ownership of the Super Pit gold mine in Western Australia. Barrick Gold recently flagged the possible sale of its 50 per cent stake in the massive mine. Newmont CEO Gary Goldberg has stressed that organic growth rather than acquisitions remains the big miner’s primary focus, but adds that its knowledge of the Super Pit could make it an exception. He notes that Newmont acquired the Cripple Creek & Victor mine in 2015 at a time when the gold price was lower.

CORPORATES
NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION, ANGLOGOLD ASHANTI LIMITED – ASX AGG, DIGGERS AND DEALERS FORUM, CREDIT SUISSE (AUSTRALIA) LIMITED

Forrest slams Grylls over tax threat

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Original article by Julie-anne Sprague, Tess Ingram
The Australian Financial Review – Page: 6 : 10-Aug-16

Fortescue Metals Group founder Andrew Forrest has criticised a proposal by new Western Australian National Party leader Brendan Grylls to impose an iron ore tax on BHP Billiton and Rio Tinto. Grylls has proposed changes to state agreements with the two resources giants to increase the levy on iron ore out from $A0.25 per tonne to $A5. Fortescue would not be affected as its state agreement is more recent. Grylls says the levy will not proceed if BHP and Rio successfully lobby the Federal Government to overhaul the system for distributing GST revenue.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, MINERALS COUNCIL OF AUSTRALIA

Even Twiggy should fight this tax on BHP and Rio

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Original article by James Thomson
The Australian Financial Review – Page: 14 : 9-Aug-16

Western Australia National Party MP Brendon Grylls has proposed imposing a levy on iron ore producers BHP Billiton and Rio Tinto. The tax is believed to be $A5 per tonne, which would generate about $A3bn in revenue for the State Government each year. Fortescue Metals Group would benefit from the increase in the break-even price of both BHP and Rio, potentially above that of Fortescue itself. The tax could also prompt BHP and Rio to reduce production in the Pilbara. Although it appears that Fortescue and smaller iron ore miners would be exempt from the proposed tax, this could change.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIAN LABOR PARTY

Vale vows not to flood the iron markets

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 8-Aug-16

The annual capacity of Vale’s "S11D" iron ore project will be 90 million tonnes, which has prompted some analysts to forecast an iron ore oversupply in 2017. However, Vale’s Peter Poppinga has downplayed concerns about an oversupply, arguing that the Brazilian group will ramp up exports over several years, with its mine capacity to increase at a faster pace than its rail capacity. He also stresses that not all of the increased production will be exported to Asia.

CORPORATES
VALE SA, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, WORLEYPARSONS LIMITED – ASX WOR

Rio Tinto willing to sacrifice low-cost crown for cash

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Original article by Peter Ker
The Australian Financial Review – Page: 17 & 22 : 5-Aug-16

Rio Tinto boasted the lowest iron ore production costs in Western Australia in the first half of 2016, with a "C1" cost of $US14.30 per tonne. However, CEO Jean-Sebastien Jacques argues that increasing free cash flow is more important than bragging rights as the lowest-cost producer. Rio Tinto’s total iron ore output is tipped to be about 330 million tonnes in 2016, and Jacques has declined to comment on when the resources giant is likely to achieve its target of lifting annual output to 360 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, JP MORGAN AUSTRALIA LIMITED

Desert prawn blocks uranium mine

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Original article by Andrew Burrell, Paul Garvey
The Australian – Page: 3 : 4-Aug-16

Canada-based Cameco will not be able to proceed with the Yeelirrie uran­ium mine in Western Australia due to concerns about its impact on the habitat of stygofauna. The state’s Environmental Protection Authority ruled that the proposed mine would put at risk the future of 11 species of the prawn-like crustacean, although Cameco is optimistic that the project can still gain environmental approval. However, it concedes that the project would not be economically viable given the current price of uranium.

CORPORATES
CAMECO CORPORATION, CAMECO AUSTRALIA PTY LTD, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, WESTERN AUSTRALIA. DEPT OF ENVIRONMENT AND CONSERVATION, BHP BILLITON LIMITED – ASX BHP, VIMY RESOURCES LIMITED – ASX VMY

Rio tamps down iron rally hope

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Original article by Matt Chambers
The Australian – Page: 19 : 4-Aug-16

Rio Tinto has posted a 2016 interim underlying profit of $US1.56bn, which is 47 per cent lower than previously. Weaker commodities prices reduced the underlying profit by $US1.9bn, while the net profit from its iron ore operations in Western Australia fell by 17 per cent to $US1.74bn. Meanwhile, CEO Jean-Sebastien Jacques has warned that the recent upturn in the iron ore price may not be sustained, noting that the availability of credit was a major driver of increased demand for steel in China during the June quarter.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ARNHEM INVESTMENT MANAGEMENT PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, TURQUOISE HILL RESOURCES LIMITED

Fortescue welcomes plans on China steel

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 20 : 4-Aug-16

Fortescue Metals Group CEO Nev Power says proposed mergers between large state-owned Chinese steel-makers would benefit the global iron ore industry. He notes that it is in Fortescue’s interests for buyers of its iron ore to have increased profitability and efficiency. Power adds that Rio Tinto’s move to ramp up investment in its Silvergrass iron ore mine had been expected, as the resources giant needs the additional output to maintain production of its premium "Pilbara blend".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, WUHAN IRON AND STEEL (GROUP) COMPANY LIMITED, SHANGHAI BAOSTEEL GROUP CORPORATION, DIGGERS AND DEALERS FORUM, EVOLUTION MINING LIMITED – ASX EVN, HEBEI JINXI IRON AND STEEL COMPANY LIMITED, SHOUGANG GROUP

Drill rigs start spinning as exploration recovers

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

Delegates at the annual Diggers & Dealers conference have been told that there has been a sharp increase in exploration activity following several lean years for the Australian mining industry. There has been particular emphasis on brownfields exploration, including older gold projects that were previously thought to have been exhausted. Independence Group MD Peter Bradford has urged investment in technology to access deeper deposits that are difficult to reach with the equipment that is currently available.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, DIGGERS AND DEALERS FORUM, DACIAN GOLD LIMITED – ASX DCN, EVOLUTION MINING LIMITED – ASX EVN, RIO TINTO LIMITED – ASX RIO, GOLD FIELDS LIMITED