B08 Metal Ore Mining

Rio chief-in-waiting downplays expansion

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Original article by James Chessell
The Australian Financial Review – Page: 15 : 21-Mar-16

Jean-Sebastien Jacques has indicated that reducing costs, balance sheet strength and industrial safety will be among Rio Tinto’s priorities when he succeeds Sam Walsh as CEO in July 2016. There had been speculation that Rio Tinto will ramp up its growth strategy under Jacques, following several years of cost-cutting. He is currently the head of Rio Tinto’s copper and coal division.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SANFORD C BERNSTEIN AND COMPANY, BARCLAYS BANK PLC, RIVERSDALE MINING LIMITED

New Rio CEO an internal peak, confirming Walsh’s 2015 tip

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Original article by Amanda Saunders
The Australian Financial Review – Page: 3 : 18-Mar-16

Rio Tinto’s head of copper and coal, Jean-Sebastien Jacques, has been appointed CEO of the mining giant. He will take over from Sam Walsh in July 2016. Meanwhile, he will act as deputy CEO and will also join the board of the company. Jacques played a prominent role in negotiations with the Mongolian Government for an Oyu Tolgoi mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC

Explorers ditch ASX as downturn bites

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Original article by Tess Ingram
The Australian Financial Review – Page: 26 : 17-Mar-16

Analysis by BDO shows that about 16 per cent of the 753 Australian-listed exploration companies had no active exploration program in the December 2015 quarter. Meanwhile, 25 exploration companies delisted, were placed in administration or opted to exit the sector during the period. Meanwhile, nearly 50 per cent of companies that remain in the sector are estimated to be able to finance operating expenditure for no more than two quarters.

CORPORATES
BDO CHARTERED ACCOUNTANTS AND ADVISERS, DORAY MINERALS LIMITED – ASX DRM, BARRICK GOLD CORPORATION

What goes up … comes down a week later

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Original article by Barry FitzGerald
The Australian – Page: 31 : 17-Mar-16

Commodity prices and the share prices of mining companies have retreated after a brief rally in mid-March 2016, with the iron ore price shedding 18 per cent in seven trading days. However, Ricardo Aceves of FocusEconomics says analysts are generally upbeat about the outlook for commodity prices, with overall growth of 4.4 per cent by the December quarter. The consensus forecast is for crude oil to be 18 per cent higher by the fourth quarter, while the nickel price is expected to rebound by 12 per cent.

CORPORATES
FOCUSECONOMICS, BHP BILLITON LIMITED – ASX BHP, PENGANA CAPITAL LIMITED, PENGANA GLOBAL RESOURCES FUND

Fortescue shrugs off ratings hit

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

Shares in Fortescue Metals Group closed just 1.55 per cent lower on 15 March 2016, following a decision by Moody’s to downgrade the iron ore producer’s credit rating. In contrast, BHP Billiton and Rio Tinto shares both fell by 3.4 per cent. Meanwhile, Morgan Stanley has reduced its share price target for Fortescue from $A2.10 to $A1.90 and downgraded its recommendation on the stock to "underweight".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Russian sells off FMG stake

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Original article by Barry FitzGerald
The Australian – Page: 20 : 15-Mar-16

Shares in Fortescue Metals Group closed 2.6 per cent lower at $A2.58 on 14 March 2016, after the iron ore price retreated from recent highs. Meanwhile, Russia-based Magnitogorsk Iron & Steel has trimmed its stake in Fortescue by 0.64 per cent. The group is believed to have sold 20 million shares at $A2.55 apiece. The transaction follows recent speculation that Magnitogorsk could reduce its stake to capitalise on Fortescue’s share price rally in 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MAGNITOGORSK IRON AND STEEL WORKS (MMK), MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, FITCH RATINGS LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, BLOOMBERG LP, CITIGROUP PTY LTD

Miners won’t take pedal off the metal

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 14-Mar-16

The iron ore price has risen by about 65 per cent so far in 2016, although it has retreated from the year-to-date high of more than $US63 per tonne. Meanwhile, Paul Young of Deutsche Bank expects Rio Tinto’s iron ore output in the Pilbara to top 360 million tonnes in 2017, despite the miner’s own guidance of 350 million tonnes. There are also expectations that production at the Samarco joint venture between BHP Billiton and Vale will resume before the end of the 2016, while production at the Roy Hill iron ore project may increase.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, ROY HILL IRON ORE PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, CHINA. NATIONAL BUREAU OF STATISTICS, KATANA ASSET MANAGEMENT LIMITED

Study backs Pilbara lithium mine’s potential

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Original article by Paul Garvey
The Australian – Page: 20 : 11-Mar-16

A pre-feasibility study released by Australian-listed Pilbara Minerals is upbeat about the potential of the group’s Pilgangoora lithium project. The study concluded that the mine could yield 330,000 tonnes of spodumene concentrate a year, with production costs of about $US205 per tonne. The study also forecasts that the project would have annual EBITDA of $A120m. The spot price of spodumene concentrate currently exceeds $US600 per tonne.

CORPORATES
PILBARA MINERALS LIMITED – ASX FTN, TESLA MOTORS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, FOSTER STOCKBROKING PTY LTD

China tips iron ore price to slip back to $US40

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Original article by Perry Williams
The Australian Financial Review – Page: 24 : 10-Mar-16

The iron ore price rose above $US63 per tonne on 7 March 2016, but Li Xinchuang of the China Iron & Steel Association does not expect this to be sustained. Li forecasts that the price of the steel input will retreat to around the $US40/tonne level in the near-term, arguing that there has not been sufficient change in demand and supply to support current pricing. Li adds that Chinese regulators may oppose a potential alliance between Fortescue Metals Group and Vale on competition grounds.

CORPORATES
CHINA IRON AND STEEL ASSOCIATION, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, MOODY’S INVESTORS SERVICE INCORPORATED

Fortescue’s Vale deal good for costs, but concerns remain

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Original article by Amanda Saunders, James Thomson
The Australian Financial Review – Page: 19 & 24 : 10-Mar-16

Iron ore miner Fortescue Metals Group aims to reduce its cash costs to $US13 per tonne by mid-2016, having slashed its cost of production from about $US32/tonne to around $US16 in the last year. The proposed iron ore blending joint venture with Brazilian rival Vale may allow Fortescue to further reduce its cash costs. Paul Young of Deutsche Bank notes that Chinese competition regulators may oppose the alliance, although Fortescue CEO Nev Power is confident that this will not be an issue.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, DEUTSCHE BANK AG, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JEFFERIES AND COMPANY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI