B08 Metal Ore Mining

Mining capex slow to move on big profits

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 5-Jun-18

The mining and construction sectors were a major contributor to the 5.9 per cent growth in the profits of Australian companies during the March quarter. However, data from PwC shows that the capital expenditure of the world’s 40 largest mining companies remains at its lowest level for a decade. Chris Dodd of PwC expects miners to continue to be cautious with regard to capital investment. Glencore CEO Ivan Glasenberg recently expressed a similar view.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN BUREAU OF STATISTICS

Junior miners lead surge in mergers

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Original article by Paul Garvey
The Australian – Page: 17 & 18 : 4-Jun-18

Australian-listed mining companies have been involved in nearly $US12 billion ($A15.8 billion) worth of mergers and acquisitions since the start of 2017-18, the highest level of activity since the 2012 financial year, when the mining boom was at its peak. Most deals involve small and medium-sized mining firms, with Eddie Rigg of advisory firm Argonaut saying it "has never been busier". He says some smaller firms are taking the view that the best way to "realise value" is to be acquired, rather than trying to develop deposits themselves.

CORPORATES
ARGONAUT SECURITIES PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, LION SELECTION GROUP LIMITED – ASX LSX, SOJITZ CORPORATION

Haoma establishes share trading hub Ecosystem with PrimaryMarkets for secondary trading of Haoma Mining Shares

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Original article by Roy Morgan
Haoma Mining NL Announcements – Page: Online : 29-May-18

Since being unnecessarily delisted by the ASX in February, Haoma has worked to identify a suitable and cost-effective platform for easy trading of Haoma’s shares and can now advise that this has been achieved with the appointment of PrimaryMarkets to establish on their platform a Haoma Mining NL private share trading hub known as the ‘EcoSystem’. Existing Haoma shareholders or prospective shareholders wishing to sell or purchase shares in Haoma Mining will be able to register buy and sell offers within the Ecosystem. Sell and buy offers will be transacted and settled in accordance with the Haoma share trading rules as published on the Ecosystem. The Ecosystem will open on Wednesday June 6, 2018. Further details on the benefits of using the Ecosystem are available at this PDF link.

CORPORATES
HAOMA MINING NL, PRIMARYMARKETS

Fortescue keeps focus on low costs as it approves new mine

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Original article by Matt Chambers
The Australian – Page: 28 : 29-May-18

Fortescue Metals Group will be able to supply higher-grade iron ore after its board approved the development of the Eliwana mine in the Pilbara. The $A1.7bn project, which also includes a rail component and a processing plant, will enable Fortescue to produce ore with 60 per cent iron content, compared with an average of 58 per cent at present. Eliwana will replace the Firetail mine, which is approaching the end of its mine life. Production at Eliwana is slated to commence in 2020, with annual output of about 30 million tonnes.

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

Australia’s iron ore age nears peak

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Original article by Peter Ker
The Australian Financial Review – Page: 10 : 28-May-18

Australia now accounts for about 62 per cent of all iron ore shipments to China, compared with 43 per cent in 2010. He Ming of Wood Mackenzie forecasts that Australia’s iron ore exports to China will peak at 895 million tonnes in 2020 and 2021, before holding steady at around 884 million tonnes beyond 2023. Tony Robson of Global Mining Research expects Chinese steel mills’ demand for Australian iron ore to fall in coming years, as annual steel production peaks. Factors such as increased iron ore production in Brazil are also expected to weigh on Australian producers.

CORPORATES
WOOD MACKENZIE, GLOBAL MINING RESEARCH PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, VALE SA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UBS HOLDINGS PTY LTD

Rio warns Oyu Tolgoi a test case for investment in Mongolia

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 23-May-18

Rio Tinto executive Arnaud Soirat says the Mongolian Government must not seek changes to the 2009 investment agreement regarding the Oyu Tolgoi mine. He says the international business community will view the $US5.3bn expansion of the copper and gold mine as a "test case" for future investment in Mongolia. The nation’s deputy mining minister, Zagdjav Deleg, stated in March that the government could potentially move to full ownership of the mine if the investment agreement was found to have been secured as a result of corruption.

CORPORATES
RIO TINTO LIMITED – ASX RIO, OYU TOLGOI LLC, MONGOLIA. MINISTRY OF MINERAL RESOURCES AND ENERGY, TURQUOISE HILL RESOURCES LIMITED

Fortescue unfazed by trade tensions

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 21-May-18

Fortescue Metals Group CEO Elizabeth Gaines says trade tensions between the US and China did not attract much attention at a recent Bank of America/Merrill Lynch conference in the US. President Donald Trump is threatening to impose tariffs on steel and other products, but Gaines says China exports very little steel to the US. She adds that sentiment concerning mining and commodities is very positive at present.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, WESFARMERS LIMITED – ASX WES, AGL ENERGY LIMITED – ASX AGL, HELLOWORLD TRAVEL LIMITED – ASX HLO

BHP explores growth options

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Original article by Matt Chambers
The Australian – Page: 20 : 17-May-18

BHP Billiton CEO Andrew Mackenzie has told a conference in the US that the group’s debt is now within its target range of $US10bn to $US15bn, compared with $US15.4bn at the end of 2017. He also flagged further capital returns to shareholders and said BHP has a range of growth options that could potentially add value to the tune of $US15bn. Meanwhile, Rio Tinto CEO Jean-Sebastien Jacques has told the conference that the resources giant may use some excess cash to finance acquisitions rather than return it to shareholders.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED

Forrest joins Bishop in China media attack

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 16-May-18

Fortescue Metals Group has exported more than one billion tonnes of iron ore since its inaugural shipment to a Chinese customer in May 2008. Fortescue founder Andrew Forrest has marked the 10th anniversary by criticising the Australian media’s coverage of China. He was especially scathing of the print media’s on the negative aspects of Australia’s relationship with China. Meanwhile, Forrest said Fortescue is progressing with its expansion into South America, as well as plans to diversify into other minerals.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, SHANGHAI BAOSTEEL GROUP CORPORATION

Robo trains cut Rio’s iron ore journey time by 20pc

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 15-May-18

Rio Tinto has advised that a project to automate its iron ore trains in the Pilbara should be completed and receive regulatory approval by the end of 2018. Rio Tinto executive Steve McIntosh has told a conference in Sydney that about 65 per cent of its trains are currently running in autonomous mode with a driver on board, and the automated trains can arrive at the port about 20 per cent faster than regular trains. The AutoHaul project has been marred by delays and cost over-runs.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ANSALDO STS, ROY HILL HOLDINGS PTY LTD