B08 Metal Ore Mining

No hurry to unwind BHP stock split: UBS

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Original article by Matt Chambers
The Australian – Page: 22 : 16-Mar-18

A report from UBS concludes that BHP Billiton would be better off retaining its dual-listed structure for now, noting that abolishing it would have implications in terms of taxes and franking credits. The firm concludes that there may be a case for scrapping the dual listing in three years’ time, when BHP has exhausted its tax credits. A recent analysis by FTI Consulting on behalf of activist hedge fund Elliott Management concluded that the financial benefits of shifting to a primary listing in Australia could be worth around $US22bn ($A28bn) for BHP.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION, FTI CONSULTING INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY

MCA cedes ground to BHP over climate

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

BHP Billiton may back down on its threat to withdraw from the Minerals Council of Australia after the lobby group released its revised climate policy. The MCA has been criticised by BHP for advocating coal-fired power generation, but its revised policy adopts a similar position to BHP regarding a "technology-neutral approach" to low-emission energy sources. Rio Tinto in turn has welcomed the MCA’s new policy stance and urged shareholders to reject resolutions to be put before its upcoming AGM by the Australasian Centre for Corporate Responsibility.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY

Mongolia anti-corruption squad seeks info from Rio unit

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

Turquoise Hill Resources has advised that the Mongolian Anti-Corruption Authority is investigating the potential abuse of power by "authorised officials" during negotiations for the Oyu Tolgoi investment agreement in 2008. Turquoise Hill, which has a 66 per cent stake in the copper mine, is in turn controlled by Rio Tinto. Turquoise Hill – which was called Ivanhoe Mines negotiations were being held – has stressed that there are no indications that Oyu Tolgoi itself is being investigated. Rio Tinto held a stake of less than 10 per cent in the company at the time.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED, OYU TOLGOI LLC, MONGOLIAN ANTI-CORRUPTION AUTHORITY, MONGOLIAN TAX AUTHORITY, SOMO

BHP oil division stymies S&P upgrade

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 14-Mar-18

BHP Billiton has reduced its net debt by US10.5bn ($A13.3bn) since Standard & Poor’s downgraded its credit rating from "A+" to "A" in 2016. Although S&P has since upgraded BHP’s outlook from "negative" to "stable", analyst Elad Jelasko says a decline in BHP’s portfolio diversification has contributed to the lack of a credit rating upgrade. He notes that the downturn in earnings from BHP’s petroleum division has helped to offset the positive impact of the reduction in net debt. Jelasko adds that the proposed sale of BHP’s US shale assets is unlikely to affect its credit rating.

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

$750m wiped off Newcrest as quake rocks goldminer’s forecasts

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Original article by Paul Garvey
The Australian – Page: 28 : 13-Mar-18

Shares in Newcrest Mining closed 4.6 per cent lower at $A20.60 on 12 March, after the company advised that its 2017-18 earnings will be hit by another earthquake at its Cadia gold mine. Newcrest had previously forecast that gold output for the full year would be within the range of 2.4 million and 2.7 million ounces. Production at the New South Wales mine has been put on hold after part of the tailings dam wall collapsed. A previous earthquake disrupted production in April 2017.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, RBC CAPITAL MARKETS

Another billion-dollar blow adds to woes for Sino Iron project

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Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 13-Mar-18

China-based CITIC has advised of another massive write-down in the value of its Sino Iron magnetite project in Western Australia. The latest write-down is expected to around $US1bn ($A1.27bn), similar to other write-downs in recent years. Sino Iron has been plagued by a legal dispute, which prompted CITIC to warn in 2017 that it could put production on hold. The closure of Sino Iron could affect Fortescue Metal Group’s decision on whether to proceed with its Iron Bridge magnetite project.

CORPORATES
CITIC LIMITED, MINERALOGY PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, FORMOSA PLASTICS GROUP, SHANGHAI BAOSTEEL GROUP CORPORATION, GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, SUPREME COURT OF WESTERN AUSTRALIA

Rio Tinto’s New Hope

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Original article by James Chessell
The Australian Financial Review Boss – Page: 12 : 9-Mar-18

Jean-Sebastien Jacques became CEO of Rio Tinto in July 2016, after just five years at the resources giant. He spends more time travelling than in his office at Rio Tinto’s London headquarters, meeting with staff, customers and suppliers. Jacques questions whether corporate head offices are still relevant, particular for geographically diverse companies such as Rio Tinto. He argues that senior executives and other staff should be constantly meeting with customers and suppliers rather than spending their time in an office. Meanwhile, Jacques aims for Rio Tinto to be the world’s most profitable mining company, rather than the biggest.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, PECHINEY SA, ALCAN INCORPORATED, CORUS GROUP PLC, TATA STEEL, RIVERSDALE MINING LIMITED, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Rio iron ore mines shielded from potential US tariffs

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 8-Mar-18

Rio Tinto has advised that the automation of its haulage trucks will result in the loss of 200 jobs at its Brockman 4 and Marandoo iron ore mines in the Pilbara. The technology will also be rolled out at the West Angelas mine. Chris Salisbury, the CEO of Rio Tinto’s iron ore division, says 25 per cent of the company’s fleet has been automated to date. He adds that the steel tariff policy of President Donald Trump is unlikely to affect demand for iron ore from the Pilbara, as a small proportion of the steel output of Rio Tinto’s Asian customers is exported to the US.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Explorer to drill Australia’s deepest hole chasing riches

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Mar-18

Artemis Resources intends to drill a hole to a depth of more than 3,300 metres below the surface at its tenement in the Pilbara. The super-deep hole is aimed at gaining more knowledge of the source of the small gold nuggets that have been found near the surface in the Pilbara. Artemis chairman David Lenigas says the junior explorer has had persistent approaches from a major North American resources group about deep-hole drilling.

CORPORATES
ARTEMIS RESOURCES LIMITED – ASX ARV, NOVO RESOURCES CORPORATION, ST BARBARA LIMITED – ASX SBM, NORTHERN STAR RESOURCES LIMITED – ASX NST, HOTCOPPER AUSTRALIA LIMITED, CRA LIMITED

Vale challenges Rio and BHP on China sales

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 1-Mar-18

Brazilian iron ore miner Vale has indicated that since 2016 its profits margins on sales to China have matched those of BHP Billiton and Rio Tinto. Vale has increased the average iron content of its ore to 64.3 per cent, and a spokesman says this should rise further over the next several years. In contrast, BHP’s ore has an average iron content of 61 per cent, while Rio Tinto’s averages 62 per cent. Meanwhile, BlackRock fund manager Evy Hambro says expectations that the price discount for lower-grade iron ore will be sustained prompted the World Mining Trust to divest its stake in Fortescue Metals Group in 2017.

CORPORATES
VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BLACKROCK INCORPORATED, BLACKROCK WORLD MINING TRUST PLC