B08 Metal Ore Mining

ACSI backs Rio lobby group review

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Original article by James Thomson
The Australian Financial Review – Page: 21 : 20-Apr-18

The Australasian Centre for Corporate Responsibility and Local Government Super will ask Rio Tinto shareholders to back a motion calling for the mining giant to review its relationship with industry groups. BHP Billiton undertook such a review after the ACCR instigated a similar push prior to its AGM in November. The Australian Council of Superannuation Investors is understood to be supportive of the ACCR’s motion at Rio Tinto’s AGM, which will be held in May. BHP’s review prompted it to leave the World Coal Association.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, LGSS PTY LTD, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, WORLD COAL ASSOCIATION, UNITED STATES CHAMBER OF COMMERCE, MINERALS COUNCIL OF AUSTRALIA, GLASS LEWIS AND COMPANY LLC

BHP trims iron ore guidance due to maintenance issues

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Original article by James Thomson
The Australian Financial Review – Page: 17 : 20-Apr-18

BHP Billiton’s iron ore production in the Pilbara totalled 57.6 million tonnes in the March quarter, which is eight per cent higher than the previous corresponding period. However, the resources group has advised that full-year output for 2017-18 will be within the range of 272 million to 274 million tonnes, due to the need for maintenance work on equipment that is used to unload rail cars. BHP had previously forecast full-year output of 275 million to 280 million tonnes. BHP has also indicated that it hopes to secure deals to sell its US shale assets in the second half of 2018.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED

Lean, mean Jupiter Mines returns to ASX

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Original article by William McInnes
The Australian Financial Review – Page: 13 & 16 : 19-Apr-18

Manganese producer Jupiter Mines relisted on the Australian sharemarket on 18 April, more than four years after the stock was delisted in the wake of a downturn in commodity prices. CEO Priyank Thapliyal says Jupiter had intended to return to the bourse after the completion of the Tshipi manganese mine in South Africa. He has ruled out acquisitions or taking on debt to drive the company’s growth. Jupiter shares closed at the issue price of $A0.40.

CORPORATES
JUPITER MINES LIMITED – ASX JMS

Trains give Rio’s iron ore unit a push

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 19-Apr-18

Rio Tinto has advised that its Pilbara iron ore shipments totalled 80.3 million tonnes in the March 2018 quarter, which is 11 per cent lower than the December quarter but five per cent higher year-on-year. The resources group still expects shipments for the full year to be within the range of 330 million and 340 million tonnes. Rio Tinto has also advised that it expects the AutoHaul autonomous train project to be completed in 2018, and says the proportion of trains that are operating in autonomous mode rose from 60 per cent to 65 per during the quarter.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ROYAL BANK OF CANADA, QUEENSLAND ALUMINA LIMITED, RUSAL

Rio calm as Russia sanctions hit plant

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 16-Apr-18

Rio Tinto has advised that its Queensland Alumina Limited business is unlikely to be significantly affected by a move by the US to impose trade sanctions on Russian companies. However, Rio Tinto has responded to the trade sanctions by declaring force majeure with regard to some QAL contracts. Russian companies that are affected by the sanctions include Rusal, which has a 20 per cent stake in QAL. Rio Tinto also has offtake agreements with Rusal regarding the former’s alumina smelters in France and Iceland, while Rusal also sources bauxite from Rio Tinto for its smelter in Ireland.

CORPORATES
RIO TINTO LIMITED – ASX RIO, QUEENSLAND ALUMINA LIMITED, RUSAL, GLENCORE PLC, LONDON METAL EXCHANGE LIMITED, UNITED STATES. DEPT OF THE TREASURY, UNITED STATES. DEPT OF STATE

Atlas facing wipe-out: MinRes

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Original article by Paul Garvey
The Australian – Page: 19 : 12-Apr-18

About 15,000 of Atlas Iron’s shareholders own less than $A500 worth of shares in the iron ore producer, with 4,900 owning less than $A20 worth of shares. Mineral Resources CEO Chris Ellison has urged investors with small shareholdings to support his company’s $A280m takeover bid, warning that they will be left with worthless stock if Atlas collapses. He has questioned whether Atlas can survive if the takeover deal does not proceed.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN

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