B08 Metal Ore Mining

China iron ore demand to fall

roymorgansocial Leave a comment

Original article by Angus Grigg, Jacob Greber
The Australian Financial Review – Page: 8 : 11-Mar-15

Former Bureau of Resource & Energy Economics CEO Quentin Grafton notes that major iron ore producers have forecast that Australia’s exports to China will peak in the 2020s. However, he believes that Chinese shipments could be reaching their peak now. J Capital Research MD Tim Murray also suggests that Australian iron ore exports may be approaching their peak, and forecasts that a fall in volumes of up to 10 per cent in 2015

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE. BUREAU OF RESOURCES AND ENERGY ECONOMICS, J CAPITAL RESEARCH COMPANY LIMITED, RIO TINTO LIMITED – ASX RIO, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT, CHINA. GENERAL ADMINISTRATION OF CUSTOMS, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE, MYSTEEL.COM LIMITED

BHP wants carbon rules clarity

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 6-Mar-15

BHP Billiton intends to spend more on low-emission technologies, but the group wants more clarity on climate change policy. Fiona Wild, BHP’s head of climate change, says the challenge is to make carbon capture and storage technologies financially viable. Such initiatives are important, but fossil fuels will retain their central place in energy generation

CORPORATES
BHP BILLITON LIMITED – ASX BHP

BHP defies price crashes

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 25-Feb-15

BHP Billiton has posted 2014-15 interim underlying earnings of $US5.4bn ($A6.9bn, which is 31 per cent lower than previously. The group’s earnings were hit by the sharp decline in the price of iron ore and crude oil. Meanwhile, BHP intends to reduce its capital expenditure by $US3.8bn in 2014-15 and 2015-16. Shareholders will receive an interim dividend of $A0.62 per share, and CEO Andrew Mackenzie says that maintaining its dividend payout ratio is one of the group’s priorities

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NIKKO ASSET MANAGEMENT GROUP, RIO TINTO LIMITED – ASX RIO, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, ABERDEEN ASSET MANAGEMENT LIMITED, SOUTH32 LIMITED

BHP under pressure to lift returns

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 18 : 23-Feb-15

BHP Billiton has not reduced its dividend since 1988, and analysts generally agree that a reduced payout is unlikely when the resources giant releases its 2014-15 interim results on 24 February 2015. Paul Young of Deutsche Bank does not expect BHP to increase its dividend for at least another two years, arguing that it should focus on growth rather than improving returns to shareholders. Paul McTaggart of Credit Suisse also says a share buyback is unlikely in the next several years

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, CREDIT SUISSE (AUSTRALIA) LIMITED, SOUTH32 LIMITED

Arrium chief slams inaction on dumping

roymorgansocial Leave a comment

Original article by Tim Binsted
The Australian Financial Review – Page: 26 : 19-Feb-15

Australian-listed steelmaker and iron ore miner Arrium has posted a 2014-15 interim loss of $A1.5bn. The result was marred by $A1.3bn worth of impairment charges associated with its iron ore assets. The group’s mining division posted operating earnings of $A77m, compared with $A423m previously. CEO Andrew Roberts has urged the Anti-Dumping Authority to act more quickly to curb the importation of low-cost steel

CORPORATES
ARRIUM LIMITED – ASX ARI, AUSTRALIA. ANTI-DUMPING AUTHORITY, ALLAN GRAY AUSTRALIA PTY LTD, SOUTHERN IRON PTY LTD

Fortescue pledge to hammer costs

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 18-Feb-15

Australian-listed Fortescue Metals Group has posted a 2014-15 interim net profit of $US331m, which is 81 per cent lower than previously. The group received an average of $US66 per tonne for its iron ore in the half-year, compared with the benchmark price of $US82. CFO Stephen Pearce says Fortescue hopes to reduce its cash costs to $US20 per tonne in the next 15 months. Shareholders will received a half-year dividend of $A0.03

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

Vale China deal puts Rio, BHP on notice

roymorgansocial Leave a comment

Original article by Angus Grigg
The Australian Financial Review – Page: 23 : 17-Feb-15

China will provide the 400,000-tonne Valemax-class iron ore transport ships with access to its ports, overturning a ban that has been in place for three years. China Metallurgical Industry Planning Association chairman Li Xingchuang says the move is likely to boost the market share of Brazil’s Vale. Macquarie Group’s Graeme Train adds that Vale could also overtake BHP Billiton and Rio Tinto as the world’s lowest-cost producer of iron ore

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, MACQUARIE GROUP LIMITED – ASX MQG, CHINA. MINISTRY OF TRANSPORTATION AND COMMUNICATIONS, CHINA METALLURGICAL INDUSTRY PLANNING ASSOCIATION, CHINA OCEAN SHIPPING COMPANY, CMES

Roy Hill delays put schedule in doubt

roymorgansocial Leave a comment

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

The Roy Hill iron ore project in Western Australia is slated to commence shipments in September 2015. However, CEO Barry Fitzgerald has conceded that some elements of the $A10bn project have been hit by delays. A series of safety problems since mid-2014 have contributed to the delays, and some analysts believe that the project will not reach full capacity for some time

CORPORATES
ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, PATERSONS SECURITIES LIMITED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

South32 to ‘walk before it can run’

roymorgansocial Leave a comment

Original article by James Chessell
The Australian Financial Review – Page: 13 & 18 : 16-Feb-15

Analysts estimate that South32 will have a market capitalisation of between $A11bn and $A15bn when it lists on the Australian sharemarket in mid-2015. CEO Graham Kerr says that maximising the group’s existing projects and reducing costs will be its main focus at first, rather than acquisitions. However, Paul Young of Deutsche Bank believes that the BHP Billiton spin-off will have to pursue acquisitions, as its scope for organic growth is limited

CORPORATES
SOUTH32 LIMITED, BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, GLENCORE PLC

Rio Tinto leads $10b in payouts

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 12 : 13-Feb-15

Rio Tinto’s underlying earning for calendar 2014 were nine per cent lower than previously at $US9.3bn, although the result was better than analysts had expected. Rio will repurchase some $US2bn ($A2.6bn) worth of its shares, while a 12 per cent increase in its full-year dividend means a total of $US6bn ($A7.8bn) will be returned to shareholders. The resources group’s net debt has been reduced to $A12.5bn, compared with $US22bn in mid-2013

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TRANSURBAN GROUP LIMITED – ASX TCL, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT