B08 Metal Ore Mining

Iron ore price fall hits minnows

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Original article by Barry FitzGerald, Michael Owen
The Australian – Page: 21 and 22 : 20-Jun-14

Iron ore mining groups in Australia may lose revenue worth $US30bn ($A32.5bn) combined due to the decline in the price of the commodity. It traded at $US90.30 per tonne on 19 June 2018, down $US44.70 from the average seen in calendar 2013. Especially hard hit will be smaller producers with operations that have high input costs, and already Ferrier Hodgson has been made administrator of Termite Resources. The company owned by IMX Resources and Taifeng Yuan Chuang International started shipments from its Cairn Hill mine in South Australia in late 2010. The iron ore price at that time was $US170

CORPORATES
IMX RESOURCES LIMITED – ASX IXR, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, TERMITE RESOURCES NL, TAIFENG YUANCHUANG INTERNATIONAL DEVELOPMENT COMPANY LIMITED, FERRIER HODGSON AND COMPANY, ASX LIMITED – ASX ASX, MMG PTY LTD, RESERVE BANK OF AUSTRALIA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

Disclosure breaches cost Newcrest $1.2m

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Original article by Barry FitzGerald
The Australian – Page: 19-20 : 6/19/2014

Gold mining sector leader Newcrest Mining has admitted it engaged in the selective briefing of analysts in 2013. The penalty agreed on in a compromise with the Australian Securities & Investments Commission (ASIC) and still to be ratified by the Federal Court is $A1.2m, an all-time high for such a continuous disclosure rules breach. Newcrest also faces the threat of a class action law suit launched on behalf of affected investors by Slater & Gordon. The mining group had staged its own investigation of the breach, with Prime Minister’s Business Advisory Council chair Maurice Newman clearing it. However he did not have the same powers as ASIC

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, SLATER AND GORDON LIMITED – ASX SGH, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. PRIME MINISTER’S BUSINESS ADVISORY COUNCIL, FEDERAL COURT OF AUSTRALIA, ASX LIMITED – ASX ASX, CITIBANK PTY LTD, RBC CAPITAL (AUSTRALIA) LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Rio joins Fortescue in cutting iron ore prices

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Original article by Angus Grigg, Lisa Murray
The Australian Financial Review – Page: 22 : 6/19/2014

Rio Tinto will reduce the price of low-grade iron ore by 13 per cent to around $US73 per tonne, in the wake of the fall in the benchmark price. The discount takes effect from 1 July 2014, and follows a similar move by Fortescue Metals Group. Tim Murray of J Capital Research notes that there has been a decline in demand for lower-grade iron ore

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, J CAPITAL RESEARCH COMPANY LIMITED, CITIC RESOURCES HOLDINGS LIMITED, MYSTEEL.COM LIMITED, DEZHENG RESOURCES HOLDING COMPANY LIMITED, BANK OF CHINA GROUP, CITIC GROUP

Glut forces FMG to offer big discounts

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Original article by Lisa Murray, Angus Grigg
The Australian Financial Review – Page: 15 : 18-Jun-14

New apartment sales and construction in China have declined significantly, creating a knock-on effect for steel prices and therefore iron ore exporters in Australia. The latter commodity’s price has fallen 34% between the start of calendar 2014 and mid-June, to $US89 a tonne. Fortescue Metals Group, which has ramped up production of lower-grade ore from 60 million tonnes per annum to 150 million since 2012, is lifting the discount it offers Chinese buyers to 14% from 1 July. This compares with just 2% in mid-2013

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, STEEL HOME, GOLDMAN SACHS AUSTRALIA PTY LTD, PLATTS, J CAPITAL RESEARCH COMPANY LIMITED, DEUTSCHE BANK AG