B08 Metal Ore Mining

Rio tax take soars, but ATO sore points remain

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Original article by James Thomson
The Australian Financial Review – Page: 14 : 10-Apr-18

Rio Tinto has revealed that it paid a total of $A4.9bn in taxes and royalties in Australia during 2017, compared with $A3.9bn in 2016. The Federal Government’s share of taxes paid by Rio Tinto in 2017 was $A2.4bn, while its Western Australian counterpart received $A1.8bn. Rio Tinto continues to attract scrutiny over its use of a marketing hub in Singapore, where its total tax paid was just $A31m in 2017.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP

Ore discounts force Atlas, MinRes link-up

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Original article by James Thomson, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 11 & 16 : 10-Apr-18

Atlas Iron’s directors have endorsed a proposed merger with Mineral Resources, which requires the support of at least 75 per cent of Atlas shareholders. The deal values Atlas shares at $A0.0302, with stockholders to receive one Mineral Resources share for every 571 shares they hold. Atlas CEO Cliff Lawrenson has praised Mineral Resources, and he attributes the merger to the widening discount between lower-grade iron ore and the benchmark price. He says it is uncertain whether the discount is structural or cyclical.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, HOULIHAN LOKEY HOWARD AND ZUKIN, DLA PIPER, GILBERT AND TOBIN LAWYERS

BHP quits coal body over climate views

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Original article by Matt Chambers
The Australian – Page: 30 : 6-Apr-18

BHP Billiton has confirmed that it will cease being a member of the World Coal ­Association, citing factors such as differing stances on energy and climate policy. BHP has also indicated that it derives little benefit from being a member of the WCA. However, the Australasian Centre for Corporate Responsibility’s executive director Brynn O’Brien has criticised BHP’s decision to remain a member of the US Chamber of Commerce. BHP said that while the USCC’s stance on climate policy still differs to its own, membership of the organisation has significant benefits.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, WORLD COAL ASSOCIATION, UNITED STATES CHAMBER OF COMMERCE, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, MINERALS COUNCIL OF AUSTRALIA, APPLE INCORPORATED

Fortescue faces iron ore discount dilemma

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 28-Mar-18

China’s growing demand for higher-grade iron ore has boosted the profits of BHP Billiton and Rio Tinto, while the widening discount for lower-grade ore slashed the interim earnings of Fortescue Metals Group. The pure-play miner has advised that its iron ore is now expected to fetch 65 per cent of the benchmark price, compared with its recent forecast of 70-75 per cent. The discount has widened from just five per cent in the March 2016 quarter to 35 per cent, but Fortescue still maintains that it is cyclical and will narrow over time. However, rival producers argue that the discount is structural.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, CLEVELAND-CLIFFS INCORPORATED

New Century aims to make treasure from MMG’s trash

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Original article by Peter Ker
The Australian – Page: 15 : 26-Mar-18

New Century Resources is to rehabilitate the Century zinc mine in far north Queensland, with the mine, previously owned by MMG, having ceased production in late 2015. Should the rehabilitation of the Century mine be done in a profitable manner, New Century Resources may then look to resume mining at the site, with nearby deposits having shown promise. With the share price of New Century Resources having risen by 400 per cent over the last eight months, MMG CEO Jerry Jiao says he has no regrets about the 2017 deal that saw MMG pay New Century Resources to take the mine off its hands.

CORPORATES
NEW CENTURY RESOURCES LIMITED – ASX NCZ, MMG LIMITED – ASX MMG

Bribery probe clouds Rio’s Mongolia deal

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Original article by Matt Chambers
The Australian – Page: 21 : 23-Mar-18

Swiss and Mongolian authorities are investigating the origins of a $US10 million ($A12.9 million) payment into a Swiss bank account. The account belongs to former Mongolian finance minister Bayartsogt Sangajav. Bayartsogt has denied suggestions that the payment was linked to Rio Tinto’s Oyu Tolgoi copper and gold project, although Swiss authorities have stated that they are investigating whether Rio or any of its business units had a role in the deposit. Rio has indicated that it has had no contact from Swiss authorities on the matter.

CORPORATES
RIO TINTO LIMITED – ASX RIO, IVANHOE MINES LIMITED, TURQUOISE HILL RESOURCES LIMITED, SWITZERLAND. OFFICE OF THE ATTORNEY GENERAL, WHITEHAVEN COAL LIMITED – ASX WHC

No quick return from coal sale

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Original article by Richard Gluyas, Matt Chambers
The Australian – Page: 20 : 22-Mar-18

Citigroup expects Rio Tinto to return the bulk of the proceeds from the sale of the Hail Creek coal to shareholders, after paying about $A300m in taxes on the $US1.7bn ($A2.2bn) deal. However, Rio Tinto CEO Jean-Sebastien Jacques says the resources group is unlikely to return capital to investors before the release of its full-year report in February 2019. He stresses that Rio Tinto is divesting its coal assets because commodities such as iron ore and aluminium offer better growth options.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, PACIFIC ALUMINIUM PTY LTD

BHP content with iron ore grade boost for now

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 22-Mar-18

BHP Billiton is tipped to make an investment decision on the South Flank iron ore project in Western Australia by mid-2018. The company’s average iron ore grade is 61 per cent at present, but this would rise to 62 per cent if the project is approved. However, BHP’s Edgar Basto says that aside from South Flank, BHP is unlikely to increase its average iron ore grades in the near-term. He adds that factors such as the stronger Australian dollar and rising labour costs have contributed to an increase in the expected cost of the project.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA

BHP to change gear at Escondida copper

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 19-Mar-18

BHP Billiton has spent $US8 billion over the last six years on improvements to Escondida, the giant copper mine in Chile in which it and Rio Tinto own stakes of 57 per cent and 30 per cent respectively. Escondida is tipped to produce between 1.13 million and 1.23 million tonnes of copper in 2018, and BHP is aiming for annual production of 1.2 million tonnes per annum over the next decade. However, the quality of the copper grade produced by Escondida is expected to decline over this period.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG

Newcrest in dark on Cadia restart

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Original article by Matt Chambers
The Australian – Page: 21 : 16-Mar-18

Analysts have scaled back their 2017-18 production forecasts for Newcrest Mining’s Cadia gold mine after the company advised that it is uncertain when production will resume. Peter O’Connor of Shaw Stockbroking expects output for the fiscal year to be about 570,000 ounces following the collapse of a tailings dam wall. Full-year output at the mine had been slated to be within the range of 680,00 to 780,000 ounces. Newcrest CEO Sandeep Biswas says the cause of the incident remains unknown, and it does not appear to be linked to recent seismic activity.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, SHAW STOCKBROKING LIMITED, BHP BILLITON LIMITED – ASX BHP, RBC CAPITAL MARKETS, SAMARCO MINERACAO SA