B08 Metal Ore Mining

Cut in steel production a new blow for miners

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Original article by Scott Murdoch, Wang Yuanyuan
The Australian – Page: 15 : 12-Jan-16

The Chinese province of Hebei will reduce its iron and steel production by 10 million tonnes and eight million tonnes respectively in 2016. Hebei accounts for about 25 per cent of the nation’s iron and steel production, as well as the bulk of the iron ore exported from Australia to mainland China. The production cutbacks have been attributed to factors such as an oversupply and an attempt to address the issue of pollution in China.

CORPORATES
XINHUA NEWS AGENCY, TSINGHUA UNIVERSITY, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE

Rio to consider Walsh’s successor

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Original article by James Chessell
The Australian Financial Review – Page: 40 : 11-Jan-16

The head of Rio Tinto’s iron ore division, Andrew Harding, is seen as the leading candidate to succeed CEO Sam Walsh. The latter himself headed the iron ore division before being elevated to the top job after Tom Albanese resigned in 2011 in the wake of several massive write-downs. Walsh recently indicated that Rio’s board favours appointing an internal candidate to succeed him. Succession planning will be a key priority for Rio chairman Jan de Plessis, who will want to conclude this process several years before he stands down.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, RIVERSDALE MINING LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, BANK OF AMERICA CORPORATION, ANGLO AMERICAN PLC, SABMILLER PLC, ANHEUSER-BUSCH INBEV SA/NV, GM HOLDEN LIMITED, NISSAN MOTOR COMPANY (AUSTRALIA) PTY LTD

Fears grow for 1000 mine jobs

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Original article by Barry FitzGerald
The Australian – Page: 17 : 11-Jan-16

Shares in Gindalbie Metals went into a trading halt in the week ended 8 December 2016, ahead of an announcement regarding the Karara magnetite mine. Gindalbie has a 47.84 per cent stake in the Western Australian mine, which is operating at a loss due to the downturn in the iron ore price. China-based Ansteel owns 52.16 per cent of the mine, and its continued support will be essential for the mine to remain open.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, KARARA MINING LIMITED, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR

December rally over as iron ore heads back to $US30s

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 7-Jan-16

The sharp downturn in the Chinese sharemarket on 4 January 2016 has in turn prompted the iron ore price to retreat from its recent high of $US44.37 per tonne. The price of the steel input fell to $US38.30/tonne in mid-December 2015, and Citigroup’s Ivan Szpakowski forecasts that slowing demand from Chinese steel mills will see it fall below $US40/tonne again. Recent data shows that there has been strong growth in iron ore stockpiles at Chinese ports.

CORPORATES
CITIGROUP INCORPORATED, BLOOMBERG LP, MAIKE FUTURES, SHANGHAI STEELHOME INFORMATION TECHNOLOGY COMPANY LIMITED, GRANGE RESOURCES LIMITED – ASX GRR

BHP begins payout plan for Brazil mine victims

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Original article by Barry FitzGerald
The Australian – Page: 16 : 5-Jan-16

Samarco has commenced paying compensation to the families of victims of the iron ore tailings dam disaster in Brazil, and families that have had to be relocated. Samarco, which is jointly owned by BHP Billiton and Vale, has accepted legal liability for the disaster and the resulting compensation claims. However, a Brazilian court has ruled that BHP and Vale must also bear responsibility for environmental remediation.

CORPORATES
SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, VALE SA

Heavyweight miners predict little respite

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Original article by Perry Williams
The Australian Financial Review – Page: 11 & 22 : 4-Jan-16

Former Rio Tinto CEO Leigh Clifford says commodity prices may not rebound for another 3-5 years, and mining companies with high production costs in particular face challenging conditions. Former Orica chairman Malcolm Broomhead says action is needed to boost labour productivity, and he has urged the Australian Government to pursue reforms in areas such as industrial relations and taxation in order to boost productivity.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ORICA LIMITED – ASX ORI, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, ASCIANO LIMITED – ASX AIO, KKR AND COMPANY LP

Iron will lets Harding keep Rio fighting fit

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Original article by Amanda Saunders
The Australian Financial Review – Page: 53 & 54 : 23-Dec-15

The head of Rio Tinto’s iron ore division, Andrew Harding, downplays suggestions that he could become the resources giant’s next CEO. Rio Tinto’s earnings are heavily weighted toward iron ore, and Harding has gained a high public profile in 2015 amid the downturn in the iron ore price, criticism of the iron ore expansion plans of Rio Tinto and BHP Billiton, and speculation that Glencore will make a new takeover bid for Rio Tinto.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGO INVESTMENTS LIMITED – ASX ARG

Top iron ore shipper predicts prices to fall 19pc in 2016

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Original article by Jasmine Ng
The Australian Financial Review – Page: Online : 23-Dec-15

The iron ore price recently rose above $US40 per tonne, after reaching a low of $US38.50 in early December 2015. However, Australia’s Department of Industry, Innovation & Science is bearish about the outlook for the steel input. It now expects the spot price of iron ore with 62 per cent content to average $US41.30 per metric ton in 2016, after previously forecasting an average price of $US51.20.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, METAL BULLETIN LIMITED, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD

BHP bolsters Brazil team as probe into ‘deadly’ dam looms

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Original article by Barry FitzGerald
The Australian – Page: 18 : 23-Dec-15

BHP Billiton has appointed US law firm Cleary Gottlieb Steen & Hamilton to examine the causes of the tailings dam failure at its Samarco iron ore joint venture in Brazil. Meanwhile, Flavio Bulcao has been appointed as BHP’s country ­director for Brazil, while chief commercial officer Dean Dalla Valle will lead the resources group’s response to the disaster. BHP recently disputed a United Nations report on the toxicity of the tailings, which have polluted the River Doce.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, UNITED NATIONS, CLEARY GOTTLIEB STEEN AND HAMILTON LLC, BRAZIL. MINISTRY OF HEALTH

Iron ore’s jump to more than $US40 a tonne unlikely to last

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Original article by Jens Meyer
The Australian Financial Review – Page: 27 : 22-Dec-15

The spot price of iron ore for delivery to China’s Port of Qingdao recently recovered to $US40.10 per tonne, after falling to $US38.30 in early December 2015. However, most analysts surveyed by Reuters do not expect a significant rebound in the iron ore price in 2016. The median forecast is that iron ore with 62 per cent content for delivery to China will average $US47/tonne. However, Clarksons Platou Futures’ Kelly Teoh forecasts an average price of $US38.50/tonne.

CORPORATES
REUTERS HOLDINGS PLC, CLARKSONS PLATOU FUTURES, PORT OF QINGDAO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, ROY HILL IRON ORE PTY LTD