B08 Metal Ore Mining

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

Rio Tinto and BHP Billiton enter new era of dividends

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 3-Aug-16

The dividend payouts of BHP Billiton and Rio Tinto will be closely scrutinised in the August 2016 reporting season, after their progressive dividend policies were scrapped earlier in the year. BHP has committed to paying shareholders a minimum of 50 per cent of its underlying attributable profit as dividends, while Rio Tinto’s new dividend policy will take into account its financial results and future earnings outlook. Meanwhile, analysts polled by Bloomberg generally expect Rio Tinto to post a 2016 interim underlying net profit after tax of $US1.56bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, BLOOMBERG LP, VUMA

Australia overdue a big minerals find: Rio Tinto

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Original article by James Thomson
The Australian Financial Review – Page: 16 : 2-Aug-16

Rio Tinto’s head of exploration, Stephen McIntosh, is among the speakers at the annual Diggers & Dealers Forum on 2 August 2016. He will outline Rio’s plans to team up with smaller resources groups to find the next big minerals deposit in Australia, noting that the nation’s last major Tier 1 discovery was more than two decades ago. He will also stress the need for regulatory reform to reduce the compliance burden for exploration projects. Meanwhile, BC Iron has posted a 2015-16 net loss of $A80m and revenue of $A151.3m.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DIGGERS AND DEALERS FORUM, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG

‘Plenty of life’ in the gold dog yet

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Original article by Paul Garvey
The Australian – Page: 22 : 2-Aug-16

The share prices of Australian gold producers have rallied in the last year, prompting speculation as to whether the gains are sustainable. Saracen Mineral Holdings MD Raleigh Finlayson has indicated that a fall in the gold price could create buying opportunities for the group, while Doray Minerals is seeking offshore acquisitions due to the high price of local gold assets and the dearth of quality projects up for sale. The outlook for the gold sector will be under scrutiny at the annual Diggers & Dealers conference in Western Australia.

CORPORATES
SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, DORAY MINERALS LIMITED – ASX DRM, DIGGERS AND DEALERS FORUM, NORTHERN STAR RESOURCES LIMITED – ASX NST, ST BARBARA LIMITED – ASX SBM