B08 Metal Ore Mining

PM urged to tread carefully on steel

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Original article by Phillip Coorey, John Kehoe
The Australian Financial Review – Page: 4 : 13-May-16

The Minerals Council of Australia (MCA) wants Prime Minister Malcolm Turnbull to proceed cautiously when dealing with the problem of the overproduction of steel in China. Turnbull said he spoke about the issue with US President Barack Obama on 12 May 2016. The Chinese Government is under pressure globally to prevent steel makers from flooding the market with their products. MCA CEO Brendan Pearson said Turnbull should also pay attention to the interests of Australian mining companies engaged in the production of iron ore and metallurgical coal used in steel production in China.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, WORLD TRADE ORGANIZATION, US STEEL CORPORATION, ALLEGHENY TECHNOLOGIES INCORPORATED, EUROPEAN UNION CHAMBER OF COMMERCE IN CHINA, CHINA. MINISTRY OF FOREIGN AFFAIRS

BHP plan to unlock $70bn hits right note

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Original article by Barry FitzGerald
The Australian – Page: 22 : 12-May-16

BHP Billiton’s base value is in line with its market capitalisation of $A98bn. CEO Andrew Mackenzie has told a mining conference in the US that the resources giant could increase its base value by $A70bn via a combination of its existing portfolio of assets and productivity improvements. He says this growth trajectory can be achieved even if there is no significant upturn in commodity prices. BHP shares closed $A0.72 higher at $A18.55 on 11 May 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Rio plans another big Mongolia expansion

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Original article by Matt Chambers
The Australian – Page: 23 : 10-May-16

The Oyu Tolgoi mine will produce about 500,000 tonnes of copper a year when an underground expansion of the project is completed. Rio Tinto approved the expansion project on 6 May 2016, but Turquoise Hill Resources CEO Jeff Tygesen has flagged further expansion of Oyu Tolgoi by increasing the capacity of the mine’s concentrator. Turquoise Hill has a 66 per cent stake in Oyu Tolgoi, and Rio Tinto in turn is the Canada-based group’s major shareholder.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED

BHP dives on fears over Brazil lawsuit

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 5-May-16

A Brazilian prosecutor intends to launch a 155 billion Brazilian Real ($US43bn) damages claim against BHP Billiton and Vale over the tailings dam disaster at the Samarco iron ore project. BHP had previously advised that the Samarco joint venture partners’ total liability was expected to be 9.2 billion Brazilian Real ($US2.58bn), after reaching a preliminary agreement with the Brazilian Government. BHP shares closed 9.4 per cent lower at $A18.79 on 4 May 2016, amid a broader sell-down of resources stocks.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, NEWCREST MINING LIMITED – ASX NCM, WHITEHAVEN COAL LIMITED – ASX WHC, S2 RESOURCES LIMITED – ASX S2R

Treasury’s medium-term price forecast paints unsettling picture

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Original article by Geoff Winestock
The Australian Financial Review – Page: B13 : 4-May-16

The Australian Government’s May 2016 Budget forecasts include a 1.35 per cent increase in the nation’s terms of trade in 2016-17. The Mid-Year Economic and Fiscal Outlook had forecast a 2.25 per cent decline in the terms of trade. Meanwhile, the Treasury has upgraded its forecast for the iron ore price in 2017 from $US39 per tonne to $US55. The price of metallurgical coal has been upgraded from $US73 per tonne to $US91.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Rio set to OK $5bn Oyu Tolgoi expansion

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Original article by Matt Chambers
The Australian – Page: 20 : 28-Apr-16

There is growing speculation that Rio Tinto is poised to approve an underground expansion of the Oyu Tolgoi copper and gold mine in Mongolia. Deutsche Bank expects the expansion to be approved during the June 2016 quarter, which is consistent with Rio Tinto’s own stated time-frame. Deutsche suggests that lower construction costs could reduce the cost of the expansion to about $US4bn, compared with Rio Tinto’s $US4.9bn estimate in October 2014.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, TURQUOISE HILL RESOURCES LIMITED

Fortescue stays disciplined on debt

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

Fortescue Metals Group will reduce the annual interest bill on its debt by $US48m by redeeming some $US577m ($A757.8m) of senior unsecured notes. These notes were due to be redeemed in 2019, but the iron ore group intends to do so on 1 June 2016. CEO Nev Powers says repaying debt will continue to be a priority for Fortescue, which has repaid or redeemed some $US1.7bn worth of debt in the last year.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

China bid to cool ore trading welcomed

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

A sharp rise in iron ores futures trading in China is believed to have contributed to recent volatility in the price of the steel input. Atlas Iron MD David Flanagan recently visited China, and says he was told that many so-called "mum and dad" investors are actively trading iron ore futures. The Dalian Commodity Exchange has sought to rein in futures trading activity by doubling its trading fees.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, DALIAN COMMODITY EXCHANGE, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, THE GOLDMAN SACHS GROUP INCORPORATED, CLARKSONS PLATOU

Iron ore price leaps to 10-month high

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Original article by Frik Els
Mining.com – Page: Online : 21-Apr-16

The Northern China benchmark import price of iron ore has risen by four per cent to $US64.30 per dry metric tonne. This is its highest level since June 2015. The price of the steel input has risen by almost 50 per cent so far in 2016, and 11.8 per cent during the current week’s trading.

CORPORATES
THE STEEL INDEX LIMITED, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

Qld Nickel’s debts ‘probably won’t be paid’

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Original article by Mark Ludlow
The Australian Financial Review – Page: 9 : 21-Apr-16

The former MD of Queensland Nickel, Clive Mensink, was evasive when asked about the company’s debts but, under pressure from lawyers, he said they were unlikely to be paid. Mensink appeared in the Supreme Court in Brisbane on 20 April 2016 in a case involving an injunction to stop FTI Consulting, acting as voluntary administrator for Queensland Nickel, from pursuing two call notices against QNI Resources and QNI Metals totalling $A190m.

CORPORATES
QUEENSLAND NICKEL SALES PTY LTD, QUEENSLAND NICKEL PTY LTD, FTI CONSULTING PTY LTD, QNI RESOURCES PTY LTD, QNI METALS PTY LTD, SUPREME COURT OF QUEENSLAND