B08 Metal Ore Mining

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

Vale to fight decision to freeze assets

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Original article by Barry FitzGerald
The Australian – Page: 14 : 22-Dec-15

Brazilian miner Vale intends to mount a legal challenge to a court’s decision to freeze its Samarco iron ore assets. The Samarco project is jointly owned by Vale and BHP Billiton. A Brazilian judge has ruled that they may be liable for the tailings dam disaster, as project operator Samarco Mineracao lacks sufficient funds to finance environmental remediation and compensate victims of the tragedy. The Samarco stake is BHP’s sole asset in Brazil.

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

BHP assets frozen as dam pressure rises

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Original article by Eric Johnston
The Australian – Page: 15 : 21-Dec-15

A spokesman for BHP Billiton has declined to comment on a court’s decision to freeze the Brazilian assets of both itself and Vale in the wake of the tailings dam disaster at the Samarco iron ore joint venture. Vale had claimed that Samarco should be fully liable for any damages arising from the disaster, but the court ruled that Samarco lacks sufficient funds to meet all claims associated with the incident. Meanwhile, the future of BHP’s progressive dividend policy remains under scrutiny, while Moody’s is reviewing its credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, MOODY’S INVESTORS SERVICE INCORPORATED, GLENCORE PLC

Rivals ‘hanging on by fingernails’

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Original article by Jesse Riseborough, Jonathan Ferro
The Australian Financial Review – Page: 16 : 17-Dec-15

The iron ore price has shed 45 per cent so far in 2015, falling below $US40 per tonne in early December. Rio Tinto CEO Sam Walsh says many iron ore producers are struggling to remain viable given the current price of the steel input, and it is inevitable that some will withdraw from the sector. Walsh adds that Rio Tinto’s record low debt means it is well-placed to prosper in 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, CLIFFS NATURAL RESOURCES INCORPORATED

BHP should slash dividend by half: analyst

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Original article by James Thomson
The Australian Financial Review – Page: 16 : 17-Dec-15

Paul McTaggart of Credit Suisse says BHP Billiton should drop its commitment to a progressive dividend policy and reduce its annual payment of $US1.24 per share by 50 per cent. Credit Suisse recently downgraded its earnings forecasts for BHP in both 2015-16 and 2016-17, and McTaggart says the lower earnings outlook means BHP cannot afford to keep its dividend payout at the current level.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED

Rio secures $6.1b finance package for Oyu Tolgoi mine

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 16-Dec-15

Rio Tinto directors are expected to approve the proposed expansion of its Oyu Tolgoi gold and copper mine in Mongolia by mid-2016, after the resources group secured financing for the project. Rio Tinto has finalised the funding deal with a consortium of 15 international banks and five export credit agencies, which will enable it to proceed with an underground expansion of the open pit mine. Tolgoi’s annual output is slated to be 500,000 tonnes of copper and up to 600,000 ounces of gold when the expanded project reaches full capacity.

CORPORATES
RIO TINTO LIMITED – ASX RIO, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BNP PARIBAS SA, ING BANK NV, SOCIETE GENERALE, SUMITOMO MITSUI BANKING CORPORATION, STANDARD CHARTERED BANK PLC, CANADIAN IMPERIAL BANK OF COMMERCE, CREDIT AGRICOLE SA, INTESA SANPAOLO SPA, NATIXIS SA, HSBC BANK PLC, MITSUBISHI TOKYO FINANCIAL GROUP INCORPORATED, TURQUOISE HILL RESOURCES LIMITED, WORLD BANK, INTERNATIONAL FINANCE CORPORATION, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

Price fall no bar to Rio plans

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Original article by Matt Chambers
The Australian – Page: 18 : 15-Dec-15

Rio Tinto will press ahead with plans to increase its low-cost iron ore production capacity by 20 million tonnes over the next few years, despite the downturn in the iron ore price. A spokesman argues that any move by Australian iron ore producers to reduce output will allow overseas rivals to gain market share at the expense of local miners. Fortescue Metals Group founder Andrew Forrest has again called for Rio Tinto and BHP Billiton to reduce their iron ore production.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, VALE SA, UBS HOLDINGS PTY LTD, ROY HILL IRON ORE PTY LTD