B08 Metal Ore Mining

How a $US1 move is making millions for Australian miners

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Original article by Stephen Bartholomeusz
The Age – Page: 21 : 11-Oct-18

A rally in the price of iron ore, crude oil and metallurgical coal in the last month has in turn sparked a rise in the share prices of BHP Billiton and Rio Tinto. It is estimated that BHP’s EBITDA rises or falls by about $US227m for every $US1 movement in the iron ore price. The steel input is currently trading above $US70 per tonne, compared with BHP’s average realised price of $US56.71/tonne in 2017-18. Likewise, every $US1 per barrel change in the price of crude oil has a $US43m impact on BHP’s EBITDA.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

At long last, Gina Rinehart’s Hancock Prospecting claims win in Atlas Iron takeover saga

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Original article by Stuart McKinnon
The West Australian – Page: Online : 10-Oct-18

Hancock Prospecting has gained acceptances for more than 90 per cent of Atlas Iron’s shares, allowing it to move to the compulsory acquisition stage of its takeover bid. Hancock had initially offered $0.042 per share for Atlas, valuing its bid at $390m, before subsequently increasing it to $427m. Atlas’s assets include the Mt Webber iron ore mine, while Hancock has a controlling stake in the Roy Hill iron ore mine and a 50 per cent stake in the Hope Downs project.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERAL RESOURCES LIMITED – ASX MIN

What Glencore doesn’t want the taxman to see

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 36 & 37 : 9-Oct-18

Mining company Glencore has lodged proceedings in the High Court against the Australian Taxation Office. Glencore wants to the court to direct that the ATO give up copies of what are known as the Paradise Papers, which relate to files belonging to Bermuda-based law firm Appleby. Of concern to Glencore is information in the files relating to what has been dubbed Project Everest, which outlined a 2014 corporate restructure which saw Glencore relocate $30 billion worth of resource assets away from the "Australian tax net".

CORPORATES
GLENCORE PLC, AUSTRALIAN TAXATION OFFICE, PRICEWATERHOUSECOOPERS, KING AND WOOD MALLESONS, KPMG AUSTRALIA PTY LTD, APPLEBY

Pilbara gold believer Novo Resources plans to start bulk-mining next year

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Original article by Angela East
stockhead.com.au – Page: Online : 5-Oct-18

Novo Resources chairman Quinton Hennigh has told the recent Precious Metals Investment Symposium in Perth that it plans to start bulk-mining in the Pilbara region in 2019. However, it is yet to advise markets as to possible grades or reserves for its conglomerate gold projects. Canadian billionaire Eric Sprott, who is Novo’s second biggest shareholder, told the symposium that the best way to find out what sort of gold resources the Pilbara has is to probably just start mining. The Pilbara has similar geological formations to the Witwatersrand Basin in South Africa, which is the world’s most productive gold region.

CORPORATES
NOVO RESOURCES CORPORATION, KIRKLAND LAKE GOLD LIMITED – ASX KLA

BHP faces new dam burst case

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Original article by Ben Butler, Matt Chambers
The Australian – Page: 17 & 20 : 4-Oct-18

Law firm Johnson Winter & Slattery has filed a class action against BHP Billiton on behalf of the Los Angeles County Employees Retirement Association. The US pension fund alleges that the value of its stake in BHP fell sharply after the miner’s shares were heavily sold down in the wake of the Samarco iron ore tailings dam collapse in November 2015. BHP is already subject to two Australian lawsuits over the disaster. Meanwhile, prosecutors in Brazil’s state of Minas Gerais are believed to be poised to announce the settlement of a civil claim against BHP and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, LOS ANGELES COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION, JOHNSON WINTER AND SLATTERY, VALE SA, MAURICE BLACKBURN PTY LTD, PHI FINNEY McDONALD PTY LTD, FEDERAL COURT OF AUSTRALIA, SAMARCO MINERACAO SA

Lynas fair go plea as tax review looms

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 16 : 3-Oct-18

Australian-listed rare earths producer Lynas Corporation still does not know if the new Malaysian Government will undertake a review of its refinery. There has been speculation that any such review could include the tax break that Lynas received from the previous government. Lynas CEO Amanda Lacaze says a review of the tax break – which will shortly need to be renewed – is highly possible, and she has urged the government led by Mahathir Mohamad to be "fair and just" if it does undertake a review.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC

Pilbara mine investment to create hundreds of jobs

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Original article by Hamish Hastie
The Sydney Morning Herald – Page: Online : 2-Oct-18

The mine life of the Robe River iron ore joint venture will be extended after Rio Tinto and its partners in the project announced plans to develop up to five new deposits. Rio Tinto, Mitsui and Nippon Steel & Sumitomo Metal Corporation will invest a combined $US1.55bn ($2.14bn) to expand the West Angelas and Robe Valley mines. Rio Tinto, which has a 53 per cent stake in the joint venture, will contribute $US820m ($1.13m). The expansion is expected to create up to 1,200 jobs.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MITSUI AND COMPANY LIMITED, NIPPON STEEL AND SUMITOMO METAL CORPORATION, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, BHP BILLITON LIMITED – ASX BHP

Export bonanza will not last long

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Original article by Perry Williams
The Australian – Page: 17 & 20 : 2-Oct-18

Revenue from Australia’s commodity exports will increase by 11 per cent in 2018-19 to a record $252bn, according to the Department of Industry, Innovation & Science’s latest quarterly report. However, revenue is expected to decline by five per cent in 2019-20, to $238bn. Revenue from iron ore exports is tipped to total $60.4bn in 2018-19, before falling to $56bn in 2019-20, as factors such as an increase in global supply and lower steel production in China weigh on the iron ore price. Coal export revenue is also expected to fall in 2019-20, although strong growth in LNG export revenue is forecast.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, INPEX CORPORATION, ROYAL DUTCH SHELL PLC, CHEVRON CORPORATION

Rio pushes closure of Grasberg deal into first half of next year

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 1-Oct-18

PT Indonesia Asahan Aluminium has signed binding agreements with Rio Tinto and Freeport McMoran to assume control of the Grasberg copper mine in Indonesia. However, the agreements are still subject to a number of conditions, and Rio Tinto has advised that the transaction may not be settled until mid-2019. Rio Tinto will receive $US3.5bn ($4.8bn) for its stake in the mine, and much of the proceeds are expected to be returned to shareholders.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, PT INDONESIA ASAHAN ALUMINIUM, BHP BILLITON LIMITED – ASX BHP, BP PLC, MERIT ENERGY

Welcome to the futures: Dalian’s iron ore pitch

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Original article by Glenda Korporaal
The Australian – Page: 20 : 1-Oct-18

Glencore and Trafigura are among the international companies that have commenced trading iron ore on the Dalian Commodity Exchange since it was opened to foreign companies in May. The exchange’s CEO Wang Fenghai would like BHP Billiton, Rio Tinto and Fortescue Metals Group to trade on the exchange, adding that an unnamed Australian company already does so. The Dalian exchange launched iron ore trading contracts five years ago, and it now accounts for 96 cent of global iron ore futures trading.

CORPORATES
DALIAN COMMODITY EXCHANGE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, TRAFIGURA BEHEER BV, CARGILL INCORPORATED, HEBEI IRON AND STEEL COMPANY LIMITED, VALE SA