B08 Metal Ore Mining

Exporters face tough times: BIS

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 11 & 16 : 8-Dec-14

A report from the Bank for International Settlements has warned that commodity exporting nations may continue to experience difficult conditions for some time. It cites factors such as the rising US dollar, the recent fall in commodity prices and the funding models used by commercial banks. The price of iron ore has fallen by 18 per cent in recent months, while Brent crude oil is down 32 per cent. The Australian dollar in turn has fallen to a 4.5-year low of $US0.83

CORPORATES
BANK FOR INTERNATIONAL SETTLEMENTS, HSBC AUSTRALIA HOLDINGS PTY LTD, AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BUREAU OF STATISTICS

Miners forgo exploration

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 8-Dec-14

MinEx Consulting MD Richard Schodde expects Australian resources group to continue reducing their expenditure on exploration programs in the near-term. Australian Bureau of Statistics data shows that mining companies spent just $A439.8m on exploration in the September 2014 quarter, compared with more than $A1bn in March 2012. Schodde notes that the decline in exploration will adversely affect government revenue

CORPORATES
MINEX CONSULTING PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Shock exit by Fortescue execs stokes job cut fears

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Original article by Paul Garvey
The Australian – Page: 22 : 4-Dec-14

In a surprise move, Fortescue Metals Group (FMG) has announced the departures of high-ranking executives from the iron ore mining group. Director of developments Peter Meurs, director of health, safety, environment and security Isak Buitendag, director of shared services Peter Thomas and senior manager Kevin McCafferty have all stepped down. The news has sparked fears about job security among FMG staff, given the recent rapid fall of the iron ore price. On 3 December 2015 FMG stock gained $A0.14 to close at $A2.71

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WORLEYPARSONS LIMITED – ASX WOR, WESTOZ FUNDS MANAGEMENT PTY LTD

Rio pushes for nuclear power in energy debate

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Original article by Annabel Hepworth
The Australian – Page: 20 : 2-Dec-14

Submissions have been lodged with the Australian Government’s new energy white paper taskforce. Rio Tinto argues that nuclear power should not automatically be ruled out as an option for the nation as it seeks to curb its greenhouse gas emissions. Fellow uranium producer BHP Billiton says in order for Australia to cash in on the growing demand for energy worldwide, local labour market laws must be relaxed to boost productivity. Others to make submissions are ANZ Banking, Peabody Energy and Qantas Airways

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PEABODY ENERGY AUSTRALIA COAL PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Test for Rio spending

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 28-Nov-14

Paul Young of Deutsche Bank believes that Rio Tinto’s investor briefing on 28 November 2014 will include plans to proceed with the Silvergrass iron ore mine in Western Australia. He expects Rio’s board to approve the greenfields mine during the December quarter, despite its recent moves to reduce capital expenditure. Rio aims to increase annual iron ore exports from 290 million tonnes to 360 million. Silvergrass is expected to boost output to about 330 million tonnes

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC, AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, CLSA AUSTRALIA PTY LTD, DOMINION DIAMOND CORPORATION

Palmer in bid to stop fraud ruling

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Original article by Sarah Elks
The Australian – Page: 2 : 27-Nov-14

Supreme Court of Queensland judge David Jackson is hearing a claim by Chinese state enterprise Citic Pacific against its iron ore mining joint venture partner, federal politician Clive Palmer. Citic alleges that he improperly accessed an account and withdrew $A12.167m to fund his election campaign. Simon Couper QC, acting for Palmer, has formally conceded some of the points and argues the case should now be dropped. Andrew Bell SC, for Citic, says the admissions merely show that fraud did occur

CORPORATES
MINERALOGY PTY LTD, CITIC PACIFIC LIMITED, COSMO DEVELOPMENTS PTY LTD, MEDIA CIRCUS NETWORK PTY LTD, SUPREME COURT OF QUEENSLAND, SINO IRON PTY LTD, PALMER UNITED PARTY

BHP to live within its means

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 19 : 25-Nov-14

BHP Billiton has indicated that its focus will be on maximising production at its existing assets rather than pursuing large acquisitions. CEO Andrew Mackenzie has told an investor briefing that any future acquisitions are likely to be restricted to conventional oil and gas assets. BHP will also continue to seek productivity improvements and reduce capital expenditure, with plans to scale back the latter by $US600m in 2014-15 and $US1bn in 2015-16

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, HESS CORPORATION, CHEVRON CORPORATION, CITIGROUP PTY LTD

Police launch Palmer probe

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Original article by Hedley Thomas
The Australian – Page: 4 : 24-Nov-14

Chinese state enterprise Citic Pacific is reportedly handing over material to police in Western Australia (WA) that could lead to fraud charges against federal MP and businessman Clive Palmer. His Mineralogy vehicle is accused by Citic in a series of civil cases of making unauthorised withdrawals worth $A12m-plus from an account for an iron ore mining joint venture. The funds are claimed to have been used for the 2103 election campaign of the Palmer United Party. Citic wants WA Supreme Court judge David Jackson QC to rule that Palmer acted fraudulently and dishonestly

CORPORATES
CITIC PACIFIC LIMITED, CHINA INTERNATIONAL TRUST AND INVESTMENT CORPORATION, MINERALOGY PTY LTD, PALMER UNITED PARTY, WESTERN AUSTRALIAN POLICE SERVICE, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, SUPREME COURT OF QUEENSLAND, SUPREME COURT OF WESTERN AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMERICAN EXPRESS COMPANY, GROUP OF TWENTY (G-20), ABC TV, AUSTRALIAN BROADCASTING CORPORATION

BREE caught out by iron ore price plunge

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Original article by Jacob Greber, Amanda Saunders
The Australian Financial Review – Page: 3 : 24-Nov-14

Australia’s Bureau of Resources & Energy Economics (BREE) had forecast in September 2014 that the price of iron ore will average between $US90 and $US105 per tonne over the next five years. The price has since fallen to around $US70/tonne, which will prompt BREE to scale back its short-term forecast for the steel input. BREE’s Wayne Calder concedes that the agency did not anticipate the sharp fall in the iron ore price, but notes that it does not forecast the spot price at any given time

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, BHP BILLITON LIMITED – ASX BHP

MinRes close to mothballing iron ore mines

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 20 : 21-Nov-14

The price of iron ore is currently trading at around $US70.20 per tonne, its lowest level in more than five years. Mineral Resources MD Chris Ellison says the group will suspend production at its iron ore mines in Western Australia if the price falls below its cash costs. He adds that it is very close to this point. Ellison forecasts that the iron ore price will trade within a range of $US75-$US85 per tonne over the next several years

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, BC IRON LIMITED – ASX BCI, IRON ORE HOLDINGS LIMITED