B08 Metal Ore Mining

BHP rewards investors with extra dividend

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Original article by Nick Toscano
The Age – Page: 24 : 18-Dec-18

BHP has completed an off-market buyback of its shares at $27.64 each. The buyback was funded by BHP’s sale of its US onshore oil and gas assets to BP for $US10.4 billion ($14.7 billion) earlier in 2018. Proceeds from the sale will also go towards the payment of a special dividend of $1.42 per share, which shareholders will receive on 30 January. Those who took part in the share buyback will be paid on 24 December. Macquarie Wealth Management believes that BHP could return another $US3 billion to shareholders in the 2019 financial year.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC, MACQUARIE WEALTH MANAGEMENT, ELLIOTT MANAGEMENT CORPORATION

BHP left holding Chilean mine after deal collapses

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Original article by James Thomson
The Australian Financial Review – Page: 23 : 14-Dec-18

Private equity firm EMR Capital will not proceed with a deal to buy BHP Group’s Cerro Colorado copper mine in Chile. EMR has advised that the $US320m ($443m) transaction has been abandoned due to problems in meeting its deadline to secure financing. The deal had been announced in June; EMR recently acquired a majority stake in a copper mine in Zambia.

CORPORATES
BHP GROUP LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, PT ADARO ENERGY TBK

Flinders’ plan to delist angers small holders

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Original article by Paul Garvey
The Australian – Page: 29 : 14-Dec-18

Shares in Flinders Mines were placed in a trading halt on 13 December, after the iron ore producer flagged plans to delist. Chairman Neil Warburton says Flinders’ board considered a number of options for its iron ore project in the Pilbara and felt that going private is the best strategy, as it will allow the company to gain funding from private equity firms and other funds that invest in such projects. The delisting proposal has the support of its major shareholder, Todd Corporation.

CORPORATES
FLINDERS MINES LIMITED – ASX FMS, TODD CORPORATION, BBI INVESTMENT GROUP

Merged miners see more gold deals on horizon

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Original article by Paul Garvey
The Australian – Page: 24 : 12-Dec-18

Gold miner Horizon Minerals will have a market capitalisation of around $64m and will be headed by Intermin Resources MD Jon Price. Horizon has been formed via a merger between Intermin and MacPhersons Resources, and Price says the new company already has its sights on potential gold acquisitions in Western Australia. Other recent deals in Australia’s gold sector include the merger between Silver Lake Resources and Doray Minerals.

CORPORATES
HORIZON MINERALS LIMITED, INTERMIN RESOURCES LIMITED – ASX IRC, MACPHERSONS RESOURCES LIMITED – ASX MRP, SILVER LAKE RESOURCES LIMITED – ASX SLR, DORAY MINERALS LIMITED – ASX DRM, BARDOC GOLD LIMITED – ASX BDC, EXCELSIOR GOLD LIMITED

Rio head says the public does not trust miners

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 10-Dec-18

Chris Salisbury, the head of Rio Tinto’s iron ore division, notes that many Australians do not trust the mining sector, while many are not aware of Rio Tinto’s contribution to the domestic economy. He says the resources group contributed $42.7 billion to GDP in 2017 and paid some $5bn in taxes and royalties. Meanwhile, Rio Tinto expects to meet its deadline of 31 December to fully implement its AutoHaul project in Western Australia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, WESTERN AUSTRALIAN MINING CLUB, WESTERN AUSTRALIA. DEPT OF ENVIRONMENT AND CONSERVATION, HITACHI LIMITED, ANSALDO STS, ERNST AND YOUNG

BHP retreats from contract mining

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Original article by Matthew Stevens
The Sydney Morning Herald – Page: 30 : 6-Dec-18

The BHP Mitsubishi Alliance abandoned the direct employment model for workers at its Queensland coal mines in 2015. Contract labour now accounts for about 60 per cent of the work undertaken at BMA’s coal mines. However, the BHP Group-led joint venture has advised that it will directly employ 350 workers at the Daunia and Cavel Ridge mines in the Bowen Basin. BMA’s move may indicate that union influence at its Queensland coal mines is declining, and the new model is likely to be rolled out at BMA’s other mines in the state.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, DOWNER EDI LIMITED – ASX DOW, AUSTRALIAN LABOR PARTY, WORKPAC PTY LTD, CHANDLER MACLEOD GROUP LIMITED, HAYS PERSONNEL SERVICES (AUSTRALIA) PTY LTD, CORE STAFF, LINKED GROUP, MONADELPHOUS GROUP LIMITED – ASX MND, ONE KEY RESOURCES PTY LTD

No New Year’s cheer for iron ore: analysts

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Original article by Timothy Moore
The Australian Financial Review – Page: 22 : 3-Dec-18

Data from Fastmarkets MB shows that the spot price for iron ore with 62 per cent iron content was trading at $US65.95 a tonne at the end of November, having peaked at a month-high of $US77.2/tonne on 9 November. Analysts from Liberum Capital are bearish about the outlook for iron ore, forecasting that falling Chinese steel mill profits will reduce demand for higher-grade ore. Liberum has also changed its recommendation on shares in Rio Tinto, BHP Group and Anglo American to "sell".

CORPORATES
FASTMARKETS MB, LIBERUM CAPITAL LIMITED, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, CAPITAL ECONOMICS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, MACQUARIE CAPITAL PTY LTD, WEALTH WITHIN PTY LTD

Rio approves $3.5bn Pilbara iron ore mine

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Original article by Perry Williams
The Australian – Page: 21 : 30-Nov-18

Rio Tinto has advised that annual production at its new Koodaideri mine in Western Australia’s Pilbara will be 43 million tonnes, compared with previous expectations of 40 million tonnes. There is also scope to increase output by 27 million tonnes in the second phase of the project. The cost of developing Koodaideri has risen by $US400m to $US2.6bn ($A3.5bn) since the initial feasibility study estimate was released two years ago. Production is slated to commence in 20201.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Sentiment turns for Fortescue

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Original article by Paul Garvey
The Australian – Page: 19 : 29-Nov-18

Fortescue Metals Group expects to benefit from the recent decline in Chinese steel producers’ margins. Danny Goeman, the pure-play iron ore miner’s director of sales and marketing, notes that lower margins in the sector tend to boost demand for lower-grade iron ore, adding that this trend has occurred in recent days. The renewed demand for lower-grade ore has coincided with the first shipment of Fortescue’s higher-grade West Pilbara fines product, which is slated for December.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

UK gold miner eyes dual listing

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Original article by Paul Garvey
The Australian – Page: 28 : 28-Nov-18

London-listed Greatland Gold has indicated that it is considering the option of a dual listing on the Australian sharemarket. The company’s shares rallied after it announced that a drilling program in Western Australia’s Paterson Range had intercepted high-grade gold and copper mineralisation. MD Gervaise Heddle says Australian investors have a greater appreciation of the local mining sector than their British counterparts, so it could make sense to make it easier for Australians to buy Greatland’s stock.

CORPORATES
GREATLAND GOLD PLC, RIO TINTO LIMITED – ASX RIO, NEWCREST MINING LIMITED – ASX NCM, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DDH1 DRILLING PTY LTD