B08 Metal Ore Mining

US bank action may thwart Arrium rescue

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Original article by Sarah Danckert
The Australian Financial Review – Page: 11 & 16 : 18-Apr-16

Morgan Stanley Bank has applied for a court order in the US seeking the repayment of a $US75.4m ($A97.6m) credit facility that it provided to failed steelmaker and iron ore miner Arrium. The US bank is also believed to be seeking a court order to prevent Arrium from transferring assets from the US. Arrium’s administrator KordaMentha in turn will apply to the Federal Court of Australia to block Morgan Stanley’s attempt to demand repayment of the debt facility.

CORPORATES
ARRIUM LIMITED – ASX ARI, MORGAN STANLEY BANK NA, KORDA MENTHA AND COLLEAGUES PTY LTD, FEDERAL COURT OF AUSTRALIA, DELAWARE CHANCERY COURT, MOLY-COP USA LLC, GRANT THORNTON AUSTRALIA, ARRIUM FINANCE, ARRIUM IRON ORE HOLDINGS, LIFESTEEL TECHNOLOGIES AMERICA LLC, ONESTEEL GROUP INCORPORATED, ONESTEEL RECYCLING INCORPORATED, ONESTEEL INVESTMENTS, GSO CAPITAL PARTNERS LP, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ANSETT AUSTRALIA HOLDINGS LIMITED

BHP steps up JV controls

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Original article by Barry FitzGerald
The Australian – Page: 17 & 18 : 18-Apr-16

BHP Billiton may seek to restructure its non-operating joint ventures in Latin America in the wake of the Samarco disaster in Brazil. Any such move would affect the Samarco iron ore mine, the Cerrejon coal mine in Colombia and the Antamina copper and zinc mine in Peru. BHP Billiton holds large stakes in all three mines, but it does not operate any of them. Credit Suisse has estimated that unwinding the joint ventures could affect some $US17.4bn worth of mining assets in the region.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, CREDIT SUISSE (AUSTRALIA) LIMITED, GLENCORE PLC, TECK CORPORATION, MITSUBISHI CORPORATION, ANGLO AMERICAN PLC

Iron ore price reverses as Rio Tinto predicted

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Original article by Frik Els
Mining.com – Page: Online : 15-Apr-16

The Northern China benchmark import price of iron ore has fallen by 2.2 per cent to $US58.60 per dry metric tonne. However, the price of the steel input has still risen by 36.6 per cent so far in 2016, and by 58 per cent since mid-December 2015.

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

Iron ore price at $59.90 as surge extends another day

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Original article by Frik Els
Mining.com – Page: Online : 14-Apr-16

The Northern China benchmark import price of iron ore has risen by a further 2.4 per cent to $US59.90 per dry metric tonne. The price of the steel input has risen by 39.6 per cent so far in 2016, and 62 per cent since mid-December 2015. Meanwhile, new figures show that China imported 85.8 million tonnes of iron ore in March, which is 16.5 per cent higher than February. China accounted for the bulk of the record 39.5 million tonnes that were shipped from Western Australia’s Port Hedland during the month.

CORPORATES
THE STEEL INDEX LIMITED, CITIGROUP PTY LTD, ROY HILL HOLDINGS PTY LTD, VALE SA, DALIAN COMMODITY EXCHANGE

Fortescue insists value trumps volume

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 14-Apr-16

Fortescue Metals Group has advised that its iron ore shipments rose by four per cent year-on-year in the March 2016 quarter, to 42 million tonnes. Fortescue has indicated that favourable weather conditions in the June quarter could allow the group to exceed its guidance of 165 million tonnes for 2015-16. The iron ore miner’s net debt fell by $A200m to $A5.9bn during the March quarter, while its cash costs were reduced by six per cent.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA

Mentha steps in to fix Arrium

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Original article by Simon Evans, Tim Binsted
The Australian Financial Review – Page: 7 : 14-Apr-16

KordaMentha’s Mark Mentha says he will consider every option for restructuring steelmaker and iron ore miner Arrium. Mentha was appointed as administrator of Arrium after the Australian Workers’ Union, lenders and bondholders succeeded in removing Grant Thornton from the role. Mentha says Arrium’s collapse was primarily due to a decline in relations between the group’s board and its lenders. The first creditors’ meeting is scheduled for 19 April 2016.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, GRANT THORNTON AUSTRALIA, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MOLY-COP, GSO CAPITAL PARTNERS LP, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ANSETT AUSTRALIA HOLDINGS LIMITED

The top tasks facing Rio’s new chief

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

There is speculation that Rio Tinto will pursue acquisitions when Jean-Sebastien Jacques succeeds Sam Walsh as CEO in July 2016, while asset sales may also potentially be on the agenda. Jacques is largely an unknown quantity to most investors, so one of his first priorities will be to outline his strategy for Rio Tinto. The group will also need to diversify its operations to reduce its reliance on iron ore, while free cash flow and big data are also likely to be priorities for Jacques.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, TURQUOISE HILL RESOURCES LIMITED, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

Rio’s pay delay gambit may fail

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Original article by Paul Garvey
The Australian – Page: 20 : 12-Apr-16

Mining industry sources doubt that Rio Tinto will be able to enforce its revised payment terms for contractors and suppliers. The resources giant recently advised that it will pay invoices 90 days after receipt, compared with 45 days at present, and up from 30 days in 2015. Some industry watchers have suggested that the new payment schedule is more likely to apply to Rio’s future contracts, as suppliers will need to agree to any changes to existing arrangements.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MONADELPHOUS GROUP LIMITED – ASX MND, WORLEYPARSONS LIMITED – ASX WOR, MACMAHON HOLDINGS LIMITED – ASX MAH, AUSDRILL LIMITED – ASX ASL, NRW HOLDINGS LIMITED – ASX NWH, BRIERTY LIMITED – ASX BYL, BHP BILLITON LIMITED – ASX BHP

BHP is poised to pounce: chief

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Original article by Barry FitzGerald
The Australian – Page: 19 & 20 : 12-Apr-16

BHP Billiton shareholders will receive interim dividends totalling $A848m after the group adopted a minimum payout ratio. Its half-year payout would have been about $A3.28bn if it had retained a progressive dividend policy. CEO Andrew Mackenzie says the change in policy means BHP has the capacity to undertake acquisitions if an appropriate opportunity arises. However, he adds that its focus will be on developing existing assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

Fortescue Metals chief says iron ore price is stabilising

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 13 : 8-Apr-16

The price of iron ore for delivery to the port of Qingdao in China was trading at around $US55 per tonne in early April 2016. Fortescue Metals Group CEO Nev Power believes that the price of the steel input may be at or near its bottom and is likely to stabilise. Meanwhile, Power expects annual demand for steel in China of around 800 million tonnes and he is upbeat about the outlook for the Chinese economy. He also says the group’s blended iron ore joint venture with Vale should be finalised within 3-4 months.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, CREDIT SUISSE AG, McKINSEY AND COMPANY, BHP BILLITON LIMITED – ASX BHP, ROY HILL HOLDINGS PTY LTD