B08 Metal Ore Mining

Contractors feel pain of tumbling iron ore prices

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 17 : 9-Sep-14

Falling iron ore prices have had a negative impact on engineering and mining contractors providing services to iron ore mining companies. Analysts have downgraded their ratings, and the share prices of companies such as Mineral Resources, NRW Holdings and Macmahon Holdings are likely to be under pressure. The stock of Mineral Resources fell 1.8 per cent on 8 September 2014 after it was downgraded by RBC Capital Markets from "outperform" to "sector perform"

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, NRW HOLDINGS LIMITED – ASX NWH, MACMAHON HOLDINGS LIMITED – ASX MAH, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN DESERT RESOURCES LIMITED – ASX WDR, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, LEIGHTON HOLDINGS LIMITED – ASX LEI, DOWNER EDI LIMITED – ASX DOW, MONADELPHOUS GROUP LIMITED – ASX MND, AUSTIN ENGINEERING LIMITED – ASX ANG, BRADKEN LIMITED – ASX BKN, EMECO HOLDINGS LIMITED – ASX EHL, RBC CAPITAL MARKETS

Kalgoorlie’s golden secret sent offshore

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Original article by Andrew Burrell
The Australian – Page: 15 : 8-Sep-14

The owners of Super Pit operator Kalgoorlie Consolidated Gold Mines (KCGM), US-based Barrick Gold and Newmont Mining, have been criticised by residents of the Western Australian town. They note that no information on any expansion plans by KCGM for the mine has been released to them, while the parent companies have mentioned promising new drilling data to investors overseas. The main issue is potential underground work in the Central Corridor area, where high-grade ores are said to have been encountered

CORPORATES
KALGOORLIE CONSOLIDATED GOLD MINES PTY LTD, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION

Rich list bruised in iron ore price plunge

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 16 : 8-Sep-14

A number of prominent Australian business leaders are among the shareholders of failed iron ore producer Western Desert Resources. They include Bruce Mathieson, Roger Corbett, Scott Perrin and chairman Rick Allert. Shares in Western Desert last traded at $A0.145, compared with $A0.82 in October 2014. The company has advised that the sharp decline in the iron ore price contributed to its collapse

CORPORATES
WESTERN DESERT RESOURCES LIMITED – ASX WDR, MACQUARIE BANK LIMITED – ASX MBL, KORDA MENTHA AND COLLEAGUES PTY LTD, FERRIER HODGSON AND COMPANY, THIESS PTY LTD, BILLABONG INTERNATIONAL LIMITED – ASX BBG, COLES MYER LIMITED, TOURISM AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FAIRFAX MEDIA LIMITED – ASX FXJ, BHP BILLITON LIMITED – ASX BHP, SHERWIN IRON LIMITED – ASX SHD, TERRITORY RESOURCES LIMITED, MEIJIN ENERGY GROUP COMPANY LIMITED, NOBLE RESOURCES NL

Iron ore slump hits economy

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Original article by Jacob Greber, Angela Macdonald-Smith, Vesna Poljak
The Australian Financial Review – Page: 1 & 4 : 8-Sep-14

The iron ore price has fallen to $US83.60 per tonne, and has now shed 38 per cent so far in 2014. The downturn has forced Northern Territory-focused Western Desert Resources into administration. Meanwhile, former federal government minister Peter Reith has warned that Australia will eventually face another recession and reforms should be implemented now in order to reduce the impact of any economic downturn

CORPORATES
WESTERN DESERT RESOURCES LIMITED – ASX WDR, RESERVE BANK OF AUSTRALIA, FAIRFAX MEDIA LIMITED – ASX FXJ

Ore slide leaves miners in dust

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Original article by Barry FitzGerald
The Australian – Page: 20 : 5-Sep-14

The Steel Index says weakening demand in the steel sector in China has pushed the iron ore price to close to a five-year low of $US85.70 a tonne. No medium-term improvement is expected by Andrew Mackenzie, CEO of BHP Billiton. However along with Mount Gibson Iron, Fortescue Metals Group and Rio Tinto, BHP remains profitable. Analysts believe that Cliffs, Gindalbie Metals and Grange Resources are now operating at a loss, and Atlas Iron, Arrium and BC Iron may follow

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MOUNT GIBSON IRON LIMITED – ASX MGX, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, GINDALBIE METALS LIMITED – ASX GBG, GRANGE RESOURCES LIMITED – ASX GRR, ATLAS IRON LIMITED – ASX AGO, ARRIUM LIMITED – ASX ARI, BC IRON LIMITED – ASX BCI, CLIFFS NATURAL RESOURCES INCORPORATED, THE STEEL INDEX LIMITED, UBS HOLDINGS PTY LTD

Mining tax deal delays 12pc super until 2025

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 3-Sep-14

On 2 September 2014, the Australian Government finally succeeded in repealing the minerals resource rent tax in the Senate, after striking a deal with the Palmer United Party. The superannuation guarantee will now not be increased again from its current level of 9.5% until mid-2021. It will then reach the 12% target set by the previous federal government in its mining sector tax plans by 2025. Prime Minister Tony Abbott and Treasurer Joe Hockey says the Australian Labor Party could have averted the delay, which will reduce the retirement savings pool by $A128bn over 10 years, by supporting the repeal

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, PALMER UNITED PARTY, AUSTRALIA. DEPT OF FINANCE, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, INDUSTRY SUPER AUSTRALIA PTY LTD, FINANCIAL SERVICES COUNCIL, RIO TINTO LIMITED – ASX RIO, BUSINESS COUNCIL OF AUSTRALIA

Rinehart hints Roy Hill may export early

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Original article by Peter Ker, Ben Butler
The Australian Financial Review – Page: 17 : 3-Sep-14

Hancock Prospecting has previously indicated that it expects to commence exporting iron ore from its Roy Hill project in September 2015. However, mining magnate Gina Rinehart has advised that exports could begin ahead of schedule. Meanwhile, Hancock Prospecting has revealed that it has ceased all exploration activities in Mongolia and no longer has any commercial interests in the country

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL IRON ORE PTY LTD, RIO TINTO LIMITED – ASX RIO, SOUTHGOBI RESOURCES LIMITED, MISSISSIPPI STATE UNIVERSITY, LINKEDIN LIMITED, ASPIRE MINING LIMITED – ASX AKM, GUILDFORD COAL LIMITED – ASX GUF, SAMSUNG C&T CORPORATION

$9.7bn boost for BHP

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Original article by Matt Chambers
The Australian – Page: 20 : 3-Sep-14

The stock of BHP Billiton closed $A0.20 higher at $A36.90 on 2 September 2014, as analysts start to recognise the gains to be made in its Western Australian iron ore operations. The disappointment at the lack of a stock repurchasing scheme has overshadowed the fact that BHP will have its value lifted by as much as $US9bn ($A9.7bn) thanks to the Pilbara mines. Their output forecast has been raised from 225 million tonnes to 290 million annually, while the cash cost will fall from as high as $US120 a tonne to under $US50

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED

BC Iron signals tough times ahead for the Pilbara as ore price pushes two-year low

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Original article by Barry FitzGerald
The Australian – Page: 17 : 28-Aug-14

BC Iron has announced a 2013-14 full-year net profit increase from $A71.4m to $A72.9m. However just 15% of the earnings were generated in the second six months, demonstrating the major negative impact of the weaker iron ore price. The commodity has declined 35% to below $US90 a tonne so far in calendar 2014. BC’s 12-month distribution has also been cut by $A0.03, to $A0.32. MD Morgan Ball says the iron ore price will not fall further

CORPORATES
BC IRON LIMITED – ASX BCI, IRON ORE HOLDINGS LIMITED – ASX IOH, MOUNT GIBSON IRON LIMITED – ASX MGX, ATLAS IRON LIMITED – ASX AGO, FOSTER STOCKBROKING PTY LTD

BHP says cash returns on horizon

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Original article by Barry FitzGerald
The Australian – Page: 17 : 22-Aug-14

Stockholders of BHP Billiton were unhappy that the 2013-14 results presentation and announcement of a new standalone entity to house non-core operations were not accompanied by news of a stock repurchasing scheme. It had been tipped to be worth between $US3bn and $US5bn ($A3.2bn to $A5.4bn), and on 21 August 2014 the stock fell a further $A0.10 to close at $A38.03. CEO Andrew Mackenzie concedes that the dividend lift of just $US0.05 to $US1.12 would have been disappointing for many, but says the group will return more capital to investors in the medium-term future

CORPORATES
BHP BILLITON LIMITED – ASX BHP