B08 Metal Ore Mining

Roy Hill’s ramp-up puts pedal to the metal for Port Hedland

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Original article by Peter Ker, Tess Ingram
The Australian Financial Review – Page: 13 : 12-Jul-16

The Roy Hill iron ore project has progressively increased the number of monthly shipments since exports began in December 2015. A spokesman for Roy Hill Holdings says 12 ships were loaded in June 2016, and the project is on track to reach full production of 55 million tonnes a year by the end of 2016. However, Macquarie Group forecast earlier in the year that the Roy Hill project will fall short of its production target, noting that achieving full production often takes a new project several years.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION, SAMSUNG C&T CORPORATION, DURO FELGUERA SA, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO

Chances for asset bargains rare: BHP CFO

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 11-Jul-16

BHP Billiton’s CFO Peter Beaven says the resources giant is still on the lookout for mergers and acquisitions opportunities, but he stresses that such deals are not a priority. BHP is particularly interested in copper and petroleum assets, but Beaven acknowledges that there are limited opportunities to acquire quality assets at an appropriate price at present. Rio Tinto CEO Jean-Sebastian Jacques also recently indicated that the company will not pursue acquisitions that do not create value.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, CHINA MOLYBDENUM COMPANY LIMITED, BARRICK GOLD CORPORATION, ANTOFAGASTA PLC, SOUTH32 LIMITED – ASX S32

Upbeat outlook puts Dacian at record level

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Original article by Barry FitzGerald
The Australian – Page: 22 : 8-Jul-16

Dacian Gold’s executive chairman Rohan Williams is confident that the gold mining company’s exploration program at the Callisto project in Western Australia will bring the desired results. Williams’ presentation at the Sydney Mining Club prompted a revaluation of the stock, which rose $A0.19 to $A3.49 on 7 July 2016.

CORPORATES
DACIAN GOLD LIMITED – ASX DCN, SYDNEY MINING CLUB, DELTA GOLD LIMITED

A golden bet on Dacian that paid off for the ‘Kalgoorlie Mafia’

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 7-Jul-16

Shares in Dacian Gold reached a record high of $A3.38 on 6 July 2016, compared with less than $A0.30 in early 2015. Dacian is poised to become one of Australia’s 10 largest gold producers when the Mount Morgans project is commissioned in 2018. Dacian will shortly release the results of a drilling program at its Westralia deposit, while drilling will commence at its Callisto prospect in August. CEO Rohan Williams and a group of investors injected $A10m worth of seed capital into Dacian in 2012.

CORPORATES
DACIAN GOLD LIMITED – ASX DCN, RANGE RIVER GOLD LIMITED, BLUE OCEAN EQUITIES PTY LTD, GOLD FIELDS LIMITED

BHP nod to $US200m copper expansion drive

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Original article by James Thomson
The Australian Financial Review – Page: 1 & 11 : 5-Jul-16

Resources giant BHP Billiton will increase the capacity of the Los Colorados concentrator at its Escondida copper mine in Chile. Danny Malchuk, the head of BHP’s Minerals Americas division, believes that the project will cost less than the $US200m that has been budgeted. Expansion of the concentrator will allow the Escondida mine to increase annual production by between 150,000 and 200,000 tonnes. The project is slated for completion by mid-2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

New Rio boss signals end of iron ore wars

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Original article by James Chessell, James Thomson
The Australian Financial Review – Page: 21 & 24 : 4-Jul-16

BHP Billiton, Rio Tinto and Vale have significantly increased iron ore production in recent years. However, Rio’s new CEO Jean-Sebastien Jacques has indicated that rather than increasing output, the group will prioritise productivity and operational gains at its iron ore mines in the Pilbara region of Western Australia. Jacques also says Rio would be interested in acquiring quality assets, but only at the right price, and the group’s focus is likely to be on expanding its existing mines.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, CHINA. ASSETS SUPERVISION AND ADMINISTRATION COMMISSION, ANGLO-ASIA PROPERTY, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, GLENCORE PLC, CHINA MOLYBDENUM COMPANY LIMITED, BARRICK GOLD CORPORATION, ANTOFAGASTA PLC

Goldman says iron ore imports into China to fall off

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Original article by Jasmine Ng
The Australian Financial Review – Page: 25 : 4-Jul-16

A new report from Goldman Sachs forecasts a two per cent decline in China’s steel consumption in both 2017 and 2018. The investment bank also recently forecast that China’s iron ore imports will total 971 million tonnes in 2016, compared with 953 million tonnes in 2015. Iron ore imports are tipped to rise slightly in 2017, followed by a decline in subsequent years. Meanwhile, Goldman Sachs has maintained its long-term forecast of $US35 per tonne for iron ore.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, METAL BULLETIN LIMITED, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA

Rio cuts ties with Bougainville

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Original article by Barry FitzGerald
The Australian – Page: 21 & 24 : 1-Jul-16

Australian-listed Rio Tinto has transferred its stake in Bougainville Copper Limited to the Bougainville and Papua New Guinea governments. Rio Tinto’s Chris Salisbury says the resources giant considered a number of options regarding the Panguna copper and gold mine on Bougainville island before deciding to exit the project by distributing its shareholding to the provincial and national governments.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BOUGAINVILLE COPPER LIMITED – ASX BOC, BHP BILLITON LIMITED – ASX BHP

MD exits after putting Atlas back on the map

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Original article by Barry FitzGerald
The Australian – Page: 21 : 29-Jun-16

Atlas Iron MD David Flanagan has stepped down after 12 years with the iron ore miner. Flanagan had been the group’s inaugural MD in 2004 and took up the role again in mid-2015 after a stint as chairman. He says it is the right time for him to leave, following Atlas’s recent deal to restructure its debt. This reduced the company’s structured debt to just $A180m. Atlas shares closed at $A0.09 on 28 June 2016.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MURDOCH UNIVERSITY

Fortescue on track to hit gearing target

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Original article by Paul Garvey
The Australian – Page: 21 : 24-Jun-16

Fortescue Metals Group’s early repayment of debt over the course of 2015-16 will reduce its interest costs by about $US186m a year. The iron ore miner advised on 23 June 2016 that it has repaid an additional $US500m ($A663.4m) worth of debt. It has now repaid a total of $US2.9bn so far in 2015-16, and CFO Steve Pearce says the group could soon have lower gearing than BHP Billiton and Rio Tinto. Fortescue shares closed 8.3 per cent higher at $A3.53.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, METALYTICS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED