B08 Metal Ore Mining

Miners plead for no new tax slug in NSW budget

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Original article by Annabel Hepworth
The Australian – Page: 19 & 22 : 26-May-16

The New South Wales Minerals Council has warned the State Government that imposing additional taxes on mining companies in the June 2016 Budget will deter investment and increase investor uncertainty. The Council’s pre-Budget submission has also urged Treasurer Gladys Berejiklian to provide more funding for the "Resources for Regions" infrastructure program.

CORPORATES
NEW SOUTH WALES MINERALS COUNCIL, NEW SOUTH WALES. THE TREASURY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHENHUA WATERMARK COAL PTY LTD

Stockpiles of iron ore drive prices lower

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 19 & 28 : 25-May-16

New data shows that iron ore stockpiles at Chinese ports have risen to 100.45 million tonnes, which is the highest level in 14 months. This could put further downward pressure on the benchmark price of iron ore, which has retreated from recent highs. Macquarie Group now expects the iron ore price to average about $US50 per tonne in 2017, compared with its previous forecast of $US45.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, METAL BULLETIN LIMITED, ATLAS IRON LIMITED – ASX AGO, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, BLUESCOPE STEEL LIMITED – ASX BSL, ARRIUM LIMITED – ASX ARI, RESERVE BANK OF AUSTRALIA

Arrium and its steelworks to go on block in late July

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Original article by Simon Evans
The Australian Financial Review – Page: 8 : 24-May-16

KordaMentha has indicated that a number of Australian and offshore groups have expressed interest in buying the assets of Arrium. KordaMentha, which was appointed as administrator of the failed steel producer and iron ore miner in mid-April 2016, will commence the formal sale process in July, with expectations that it will be completed by the end of the year.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, MOLY-COP, ARGAND PARTNERS LLC, CERBERUS CAPITAL MANAGEMENT LP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GRANT THORNTON AUSTRALIA

Cost focus puts BHP on track to raise dividend

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 18-May-16

Credit Suisse has upgraded its underlying earnings forecast for BHP Billiton in 2015-16 by 3.5 per cent to $A12bn, in response to the resources giant’s revised production costs for commodities such as iron ore and coal. Credit Suisse also suggests that BHP could lift its 2015-16 dividend by 10.8 per cent to $A0.25 per share. The firm has lifted its share price target for BHP stock from $A20 to $A21.5.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

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