B08 Metal Ore Mining

A leaner BHP is taking shape

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Original article by Barry FitzGerald, Sarah-Jane Tasker
The Australian – Page: 17 : 18-Aug-14

BHP Billiton CEO Andrew Mackenzie is rolling out his "four pillars" strategy of concentrating on the core iron ore, coal, copper and petroleum divisions. A potential hiving-off of other assets into a separately-listed entity will be discussed at the 2013-14 results presentation on 19 August 2014, at which BHP is also tipped to unveil a profit rise of 27% to $US13.8bn ($A14.8bn). The 12-month distribution is forecast to be lifted to above $US1.20 from $US1.16 previously. However a stock repurchasing scheme worth up to $US5bn is now less likely, due to the spin-off move

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CITIGROUP PTY LTD, PENGANA CAPITAL LIMITED

Mineral Resources guilty over sparkie’s death

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Original article by Paul Garvey
The Australian – Page: 20 : 13-Aug-14

Simon Ridge, resources safety executive director at the Western Australian (WA) Department of Mines & Petroleum, has welcomed a decision by Mineral Resources. The listed group has pleaded guilty to failing to provide a safe working environment, after its Crushing Services International off-shoot suffered a fatal accident at the Christmas Creek iron ore mine in WA of client Fortescue Metals Group. An electrician working for the contractor had been crushed. The parent’s stock on 12 August 2014 rose 3.1% to close at $A10.96

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, CRUSHING SERVICES INTERNATIONAL PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM

Stokes happy with BC Iron takeover bid

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 12-Aug-14

Australian businessman Kerry Stokes will be the largest shareholder of BC Iron if its $250m cash and scrip bid for Iron Ore Holdings (IOH) succeeds. Stokes has a 25 per cent stake in the target, and the offer of $A0.10 per share plus 0.44 shares in BC Iron for every IOH share would give him a 19 per cent stake in BC. IOH shares rose by $A0.37 to $A1.35 on 11 August 2014, while BC Iron was down $A0.32 at $A2.99

CORPORATES
BC IRON LIMITED – ASX BCI, IRON ORE HOLDINGS LIMITED – ASX IOH, FORTESCUE METALS GROUP LIMITED – ASX FMG, AURIZON HOLDINGS LIMITED – ASX AZJ, SHANGHAI BAOSTEEL GROUP CORPORATION, AQUILA RESOURCES LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED – ASX NXS

In their cups, miners talk up big asset sales

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Original article by Paul Garvey
The Australian – Page: 18 : 7-Aug-14

Discussions on the sidelines of the "Diggers & Dealers" forum held in early August 2014 in the Western Australian city of Kalgoorlie were marked by speculation about asset sales as well as acquisitions in the mining sector. The deals most spoken about were the divestment by BHP Billiton of its Nickel West smelter, and that by US group Cliffs Natural Resources of the Koolyanobbing iron ore mine. Meanwhile, junior mining companies are set to follow the lead of Northern Star Resources and engage in renewed mergers activity. Among those looking for targets are Sandfire Resources, Regis Resources, Independence Group and Evolution Mining

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, SANDFIRE RESOURCES NL – ASX SFR, REGIS RESOURCES LIMITED – ASX RRL, INDEPENDENCE GROUP NL – ASX IGO, EVOLUTION MINING LIMITED – ASX EVN, BHP BILLITON LIMITED – ASX BHP, CLIFFS NATURAL RESOURCES INCORPORATED, DIGGERS AND DEALERS FORUM, PANORAMIC RESOURCES LIMITED – ASX PAN, JINCHUAN NON-FERROUS METALS IMPORT AND EXPORT COMPANY, APOLLO GLOBAL MANAGEMENT LLC, GLENCORE XSTRATA PLC, MINERAL RESOURCES LIMITED – ASX MIN, AQUILA RESOURCES LIMITED, SHANGHAI BAOSTEEL GROUP CORPORATION, AURIZON HOLDINGS LIMITED – ASX AZJ, MOUNT GIBSON IRON LIMITED – ASX MGX, BC IRON LIMITED – ASX BCI, HOT CHILI LIMITED – ASX HCH, COMPANIA MINERA DEL PACIFICO SA

ASIC: Newcrest fine a warning

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Original article by Nassim Khadem
The Australian Financial Review – Page: 24 : 7-Aug-14

The Australian Securities & Investments Commission will undertake a review of analysts’ research reports in the wake of the scandal over Newcrest Mining’s selective briefings. ASIC commissioner John Price says the gold miner’s record $A1.2m fine demonstrates the need for companies to ensure that they comply with continuous disclosure requirements and make market-sensitive information available to all financial market participants

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALASIAN INVESTOR RELATIONS ASSOCIATION LIMITED, SLATER AND GORDON LIMITED – ASX SGH

Goldminers unite against WA royalty rise

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Original article by Barry FitzGerald
The Australian – Page: 22 : 6-Aug-14

The Western Australian (WA) Government signalled in its 2014-15 Budget papers that it may review the mining royalties regime for gold tenements in the state. This has sparked fears of a major increase, possibly from the current 2.5% to 5%, among producers. The new Gold Royalties Response Group lobbying alliance has been set up by companies including Doray Minerals, Northern Star Resources, Norton Gold Fields, Regis Resources, Newmont Mining and Silver Lake Resources. They have launched a radio and social media advertising campaign to draw attention to the issue, at the "Diggers & Dealers" forum in Kalgoorlie in early August 2014

CORPORATES
SILVER LAKE RESOURCES LIMITED – ASX SLR, DORAY MINERALS LIMITED – ASX DRM, NORTHERN STAR RESOURCES LIMITED – ASX NST, NORTON GOLD FIELDS LIMITED – ASX NGF, REGIS RESOURCES LIMITED – ASX RRL, NEWMONT MINING CORPORATION, MINERALS COUNCIL OF AUSTRALIA, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, DIGGERS AND DEALERS FORUM, AUSTRALIAN LABOR PARTY

Iron ore, coal tipped for gradual recovery

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Original article by Sarah-Jane Tasker
The Australian – Page: 16 : 4-Aug-14

Mark Pervan, global head of commodity strategy at ANZ Banking, says the recent rapid fall in the prices of coal and iron ore may have reached its nadir. However he also warns that the turnaround may occur at a slower pace than that seen during previous cycles. Similar sentiments have been voiced by Lakshmi Mittal, CEO of global steel producer ArcelorMittal. Pervan predicts the coal price per tonne to rise to between $US115 and $US120 by late 2014, and that of iron ore to almost $US100

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ARCELOR MITTAL SA, UNITED STATES. FEDERAL RESERVE BOARD

Lynas shares slide as fears mount over debt burden

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Original article by Sarah-Jane Tasker
The Australian – Page: 18 : 1-Aug-14

The stock of Australian-listed rare earths group Lynas Corporation closed 17% lower at $A0.17 on 31 July 2014. The market reacted to concerns that the company may struggle to make a repayment of $US35m ($A37.5m) on its debt by the 30 September deadline, as well as to data in its output report for the June quarter. While Lynas unveiled an increase of 117% year-on-year to 1,882 tonnes in shipments from its Malaysian plant, the price achieved fell by over $US4 to $US18.25 a kilogram

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, SOJITZ CORPORATION, JAPAN OIL GAS AND METALS NATIONAL CORPORATION, DEUTSCHE BANK AG

Olympic expansion years away, says BHP

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 17 : 29-Jul-14

The Australian Environment Department has received an application by BHP Billiton, which wants to run a test facility for a new heap leaching process. Its success will be crucial to the expansion of BHP’s Olympic Dam copper and uranium asset in South Australia, which was forecast to cost $A30bn but was abandoned in 2012. BHP notes that even if the trial runs to plan, the upgrade of the mine will not occur before 2020. The proof of concept heap leaching plant will be used for three years from October 2016

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE ENVIRONMENT

Iron ore set to deliver profits before earnings’ slide bites

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 28-Jul-14

Higher export volumes and cost-cutting will ensure that Australian-listed iron ore producers deliver good full-year results in the August 2014 reporting season. However, the sector faces challenges in the 2014-15 fiscal year, including expectations of continued weakness in the iron ore price. This will offset further growth in export volumes, with companies whose sole focus is iron ore likely to be hardest hit. Stuart Howe of Bell Potter notes that iron ore producers may continue to pay strong dividends

CORPORATES
BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, ANGLO AMERICAN PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, ATLAS IRON LIMITED – ASX AGO, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, FORMOSA