B08 Metal Ore Mining

Iron ore may dominate Rio profits for decade: Jacques

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 7-Aug-18

Rio Tinto has reduced its reliance on earnings from its iron ore division in recent years, although the steel input still accounted for 65 per of underlying earnings during the first half of 2018. CEO Jean-Sebastien Jacques has told investors that iron ore may account for the bulk of group earnings for some years, although he said Rio Tinto is considering a number of projects in the battery sector, including lithium and cobalt. However, he stressed that Rio Tinto will only pursue diversification if it is appropriate, and capital will continue to be allocated to the best projects.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, STANDARD AND POOR’S FINANCIAL SERVICES LLC

Diggers still doing deals as gold price dips

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Original article by Matt Chambers
The Australian – Page: 20 : 6-Aug-18

Mergers and acquisitions activity and rising costs are among the issues that are likely to attract debate during the annual Diggers & Dealers mining conference in Kalgoorlie. Justin Osborne of Gold Road Resources expects larger gold producers to continue to pursue exploration deals in the near-term, although he says M&A activity may increase in coming years. Stuart Mathews, the local head of Gold Fields, says it would be open to appropriate acquisitions in the exploration space but its existing assets are its focus at present.

CORPORATES
DIGGERS AND DEALERS FORUM, GOLD ROAD RESOURCES LIMITED – ASX GOR, GOLD FIELDS LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Assign new mums challenging work

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Original article by Peter Ker
The Australian Financial Review – Page: 6 : 2-Aug-18

BHP Billiton’s chief technology officer Diane Jurgens has urged employers to give new mothers challenging roles when they return from maternity leave. Jurgens says that if returning mothers are given mundane jobs, they are likely to spend their working day thinking about their children. BHP is seeking to have 50 per cent of its workforce women by 2025, a target it set in 2016. At that time, women accounted for 17 per cent of its workforce, and that has risen to 20.5 per cent as of the end of June 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS ERNST AND YOUNG BASF AUSTRALIA LIMITED GENERAL MOTORS CORPORATION BOEING COMPANY

Palmer hits back at CITIC over WA mine closure threats

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 2-Aug-18

Clive Palmer has accused CITIC of speaking with a "forked tongue" over its $US12 billion ($16.2 billion) Sino Iron operations in Western Australia. CITIC Pacific CEO Chen Zeng said recently that the future of Sino Iron was at risk because of disputes with Palmer’s private company Mineralogy over royalty payments and access to land; Mineralogy controls the tenements on which Sino Iron is located. Palmer noted CITIC had been making threats to shut down Sino Iron for the last two years, but during that time they had continued to expanded production and paid Mineralogy $500 million in royalties.

CORPORATES
CITIC LIMITED CITIC PACIFIC MINING MANAGEMENT PTY LTD MINERALOGY PTY LTD

Rio unearths mega dividend after coal mine sell-off

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Original article by Matt Chambers
The Australian – Page: Online : 2-Aug-18

Mining giant Rio Tinto has posted a statutory first-half net profit of $US4.38 billion, up 33 per cent. Its first-half underlying profit of $US4.42 billion was slightly down on analyst forecasts of $US4.53 billion, while its record interim dividend of $US1.27 per share represented an increase of 15 per cent on last year’s payment. Rio’s iron ore operations in Western Australia achieved an underlying net profit of $US3.22 billion, down one per cent, while its aluminium unit increased its net earnings by 15 per cent to $US871 million.

CORPORATES
RIO TINTO LIMITED – ASX RIO VALE SA GLENCORE PLC BHP BILLITON LIMITED – ASX BHP RBC CAPITAL (AUSTRALIA) LIMITED

Fortescue Metals Group hits export goal amid 36pc discount

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Original article by Peter Ker
The Australian Financial Review – Page: Online : 27-Jul-18

Pure-play iron ore miner Fortescue Metals Group has advised that its shipments reached a record 46.5 million tonnes in the final quarter of 2017-18, and it shipped 169.7 million tonnes in the full year. Fortescue had flagged total shipments of 170 million tonnes for the financial year. Fortescue’s unit costs averaged $US12.36 per tonne in 2017-18, and it received an average of 64 per cent of the benchmark price of iron ore. Rising demand for higher-grade iron ore in China prompted Fortescue to downgrade its price realisation forecast several times during 2017-18.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

‘I’ve proved the doubters wrong’: Rinehart on her success

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 2 : 26-Jul-18

Mining magnate Gina Rinehart concedes that her Roy Hill iron ore mine almost did not proceed due to problems with securing financing for the project. Roy Hill now boasts annual production of 55 million tonnes, while Rinehart will shortly know if Hancock Prospecting’s $390m takeover bid for Atlas Iron has been successful. Meanwhile, Rinehart says Australia should do more to encourage investment, while she has flagged plans to ramp up the cattle side of her business empire.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED – ASX AGO, S KIDMAN AND COMPANY PTY LTD

Iron ore heads for price crash: RBC

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Original article by Matt Chambers
The Australian – Page: 20 : 26-Jul-18

RBC Capital Markets has downgraded its average price forecast for iron ore in the September quarter from $US60 per tonne to $US50. The firm also expects the price of the steel input to average $US47.50 in the December quarter, compared with previous expectations of $US70. However, RBC expects the iron ore price to rebound to $US63/tonne in 2019. RBC has also downgraded its earnings forecasts and share price targets for BHP Billiton, Rio Tinto and Fortescue Metals Group.

CORPORATES
RBC CAPITAL MARKETS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

More join BHP Samarco class action

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 23-Jul-18

More than 3,000 investors have agreed to participate in Phi Finney McDonald’s class action against BHP Billiton. They will seek damages for losses they incurred as a result of the Samarco iron ore tailings dam disaster in Brazil. The class action includes investors in BHP’s shares listed in Australia, the UK and South Africa. The class action will contend that BHP was aware of technical problems at Samarco and knew that there was a risk that the dam would collapse.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PHI FINNEY McDONALD PTY LTD, VALE SA, SAMARCO MINERACAO SA, FEDERAL COURT OF AUSTRALIA, BOART LONGYEAR LIMITED – ASX BLY, TIMBERWEST FOREST LIMITED

OZ commits to ongoing dividend payout

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 20-Jul-18

OZ Minerals produced 54,597 tonnes of copper in the first half of 2018, putting it on track to achieve its full-year target of 100,000 to 110,000 tonnes. Gold output totalled 58,994 ounces, and OZ Minerals expects full-year output of 120,000 to 130,000 ounces. A review of OZ’s capital management strategy is nearly complete, and CEO Andrew Cole has stressed that shareholders will continue to receive regular dividend payments despite a big increase in expenditure on exploration and development.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, AVANCO RESOURCES LIMITED, BHP BILLITON LIMITED – ASX BHP, S2 RESOURCES LIMITED – ASX S2R