B08 Metal Ore Mining

Iron ore fall may hit Rio, BHP capex

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Original article by Tess Ingram
The Australian Financial Review – Page: 1 & 6 : 14-Apr-15

Iron ore was trading at around $US47.53 per tonne on 13 April 2015, and some analysts are increasingly bearish about its outlook. Citigroup now expects iron ore to average just $US37 per tonne for the remainder of 2015, while it is forecast to average $US40 for the following three years. Australian Treasurer Joe Hockey recently warned that iron ore could test the $US35 level. Analysts suggest that BHP Billiton and Rio Tinto could opt to reduce capital expenditure in response to such a scenario, rather than reduce their dividends

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FORTESCUE METALS GROUP LIMITED – ASX FMG, RBC CAPITAL MARKETS, CREDIT SUISSE (AUSTRALIA) LIMITED, ATLAB AUSTRALIA

Fortescue vows to curb production

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 1 & 9 : 13-Apr-15

Australian-listed Fortescue Metals Group has ruled out increasing its iron ore output while current market conditions prevail. The group’s annual production is around 165 million tonnes, but it has the capacity to lift this to 180-200 million tonnes without the need for additional capital investment. Rival iron ore miners BHP Billiton and Rio Tinto are ramping up production despite the sharp fall in the iron ore price

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMGRIO TINTO LIMITED – ASX RIOBHP BILLITON LIMITED – ASX BHPVALE SAAUSTRALIA. DEPT OF THE TREASURYATLAS IRON LIMITED – ASX AGOALLIANCEBERNSTEIN AUSTRALIA LIMITED

More juniors doomed, says investor

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Original article by Sally Rose
The Australian Financial Review – Page: 20 : 13-Apr-15

The price of iron ore fell to its lowest level in a decade during the week ended 10 April 2015, and Bert Koth of Denham Capital expects it to fall further. He warns that a number of smaller mining companies in Australia and worldwide are likely to collapse in coming years, due to factors such as falling commodity prices and high levels of debt. Koth does not expect an upturn in the small-cap mining sector for another 5-6 years

CORPORATES
DENHAM CAPITAL MANAGEMENT LPATLAS IRON LIMITED – ASX AGOFORTESCUE METALS GROUP LIMITED – ASX FMGBC IRON LIMITED – ASX BCIMOUNT GIBSON IRON LIMITED – ASX MGXBHP BILLITON LIMITED – ASX BHPRIO TINTO LIMITED – ASX RIOTORONTO STOCK EXCHANGEAUSTRALIAN SECURITIES EXCHANGEPEMBROKE CAPITAL ADVISORS LIMITEDAUCTUS MINERALS PTY LTD

Haoma Mining protects itself from Atlas Iron’s woes

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 10-Apr-15

Australian-listed Haoma Mining has put a caveat on two of Atlas Iron’s iron ore tenements in the Pilbara region of Western Australia. Haoma holds the exploration rights for non-iron ore minerals, and chairman Gary Morgan says the group wanted to protect its interests should Atlas sell the tenements. Shares in Atlas Iron were placed in a trading halt in early April 2015, pending a review of its operations

CORPORATES
HAOMA MINING NL – ASX HAO, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI

‘No way’ to a Glencore-Rio merger: Hockey

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 9-Apr-15

The prohibition on Glencore executives commenting on a bid for Rio Tinto lapsed on 8 April 2015, six months after Rio rejected a takeover approach. Glencore is tipped to make another bid for Rio, but Australian Treasurer Joe Hockey is believed to have explicitly ruled out Federal Government approval for such a deal. His comments are said to have been made at a private meeting with business leaders and mining industry executives in late March

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, AUSTRALIA. DEPT OF THE TREASURY, MINERALS COUNCIL OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, ARCHER DANIELS MIDLAND COMPANY, GRAINCORP LIMITED – ASX GNC, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ALUMINIUM CORPORATION OF CHINA LIMITED

Small miners in danger zone

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Original article by Patrick Begley, Max Mason, Tess Ingram
The Australian Financial Review – Page: 19 : 9-Apr-15

Iron ore was trading at $US48.06 per tonne on 8 April 2015, prompting analysts to warn that more smaller Australian-listed producers will come under pressure. Anna Kassianos of Platypus Asset Management says many smaller players are in "desperation mode", but notes that global iron ore supply would not be unduly affected by their collapse. Tim Schroeders of Pengana Capital believes that Fortescue Metals Group can ride out the slump in the iron ore price

CORPORATES
PLATYPUS ASSET MANAGEMENT PTY LTD, PENGANA CAPITAL LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, GINDALBIE METALS LIMITED – ASX GBG, MOUNT GIBSON IRON LIMITED – ASX MGX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ARRIUM LIMITED – ASX ARI, MINERAL DEPOSITS LIMITED – ASX MDL, ALLAN GRAY AUSTRALIA PTY LTD, GRANGE RESOURCES LIMITED – ASX GRR, KATANA ASSET MANAGEMENT LIMITED, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, WATPAC LIMITED – ASX WTP

Iron ore price war rocks Atlas

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Original article by Amanda Saunders, Tess Ingram
The Australian Financial Review – Page: 1 & 8 : 8-Apr-15

Atlas Iron’s shares were placed in a trading halt on 7 April 2015, pending a review of its operations. The company has been hard hit by the downturn in the iron ore price, which has reached a long-term low of just $US46.70 per tonne. Atlas may put production at some of its mines on hold until the iron ore price recovers, while asset sales are also possible. However, there are concerns that its US bondholders could seek to appoint receivers or administrators

CORPORATES
ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARRIUM LIMITED – ASX ARI, GRANGE RESOURCES LIMITED – ASX GRR, DELOITTE TOUCHE TOHMATSU LIMITED, ASHURST AUSTRALIA, LAZARD PTY LTD, BGC CONTRACTING PTY LTD, MACA LIMITED – ASX MLD, McALEESE LIMITED – ASX MCS, HOULIHAN LOKEY HOWARD AND ZUKIN, PATERSONS SECURITIES LIMITED

China steel output may fall 25pc

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Original article by Angus Grigg, Jennifer Hewett, Phillip Coorey, Amanda Saunders
The Australian Financial Review – Page: 1 & 6 : 7-Apr-15

The price of iron ore fell to $US47 per tonne in early April 2015, and it has now shed 63 per cent since the beginning of 2014. Australian economist Ross Garnaut has forecast that steel production in China will decline by 27 per cent in the next 15 years, which would in turn affect demand for Australian iron ore. Meanwhile, Chris Richardson of Deloitte Access Economics notes that the continued fall in the iron ore price will slash Australia’s national income and tax revenue

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, VALE SA, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, BC IRON LIMITED – ASX BCI

Will iron ore plunge below $US50

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Original article by Amanda Saunders
The Australian Financial Review – Page: 38 : 2-Apr-15

The iron ore price fell to around $US51 per tonne on 1 April 2015, compared with $US68 at the beginning of the year. However, Rio Tinto and BHP Billiton plan to keep ramping up production, and Glyn Lawcock of UBS says the price would have to fall to about $US30 for their iron ore operations to become unprofitable. Westpac expects the iron ore price to test the $US47 level in 2015

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, ROY HILL HOLDINGS PTY LTD

Iron ore slump forces RBA to mull April cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 1-Apr-15

The price of iron ore shed 16 per cent during March 2015, and it is now trading below $US53 per tonne. The slump has heightened expectations that the Reserve Bank of Australia will reduce the cash rate on 7 April, and financial markets have priced in a 68 per cent chance of a cut. Kieran Davies of Barclays is among the economists who expect a rate cut in April, although Westpac’s Bill Evans believes that the cash rate may be left on hold until May

CORPORATES
RESERVE BANK OF AUSTRALIA, BARCLAYS BANK PLC, WESTPAC BANKING CORPORATION – ASX WBC, ROYAL BANK OF CANADA, RATECITY PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE TREASURY, TD SECURITIES