B08 Metal Ore Mining

Coking coal headaches prompt BHP to cut production guidance

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Original article by Matt Chambers
The Australian – Page: 15 & 16 : 19-Jan-18

BHP Billiton has advised that its overall production for 2017-18 is expected to be six per cent higher than previously. It had forecast seven per cent growth in production in October. Meanwhile, BHP’s coking coal production fell by eight per cent during the second quarter, to 10 million tonnes, but its iron ore output in the Pilbara increased by 11 per cent to a record 72 million tonnes. BHP will report its half-year results in February, with analysts expecting a underlying interim net profit of $US4.5bn ($5.6bn), compared with $US3.2bn previously.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

OZ looks to build on copper’s solid foundation

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Original article by Paul Garvey
The Australian – Page: 15 : 18-Jan-18

OZ Minerals expects copper production at its Prominent Hill mine in South Australia to be within the range of 100,000 to 110,000 tonnes in 2018, and 95,000 to 105,000 tonnes in 2019. Its previous guidance was for output of 90,000 to 100,000 tonnes in both years. Copper production at Prominent Hill totalled 112,008 tonnes in 2017, at an average cash cost of $US0.83 per pound. Meanwhile, OZ will invest some $A500m on development of its Carrapateena copper mine in 2018, while it has allocated at least $A38m to an exploration program in South Australia.

CORPORATES
OZ MINERALS LIMITED – ASX OZL

Cyclone Joyce drenches Pilbara as Port Hedland resumes exports

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

Tropical Cyclone Joyce forced the closure of Port Hedland for about 43 hours, although it is not expected to have much impact on iron ore export volumes. The cyclone resulted in heavy rains near iron ore mines operated by BHP Billiton, Rio Tinto and Fortescue Metals Group in the Pilbara region, with 132 millimetres of rain recorded at Barimunya over four days and 102 millimetres recorded at Solomon Airport. Meanwhile, some 105 millimetres of rain fell at Marble Bar in a 24-hour period.

CORPORATES
PORT OF PORT HEDLAND, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NEWCREST MINING LIMITED – ASX NCM, AUSTRALIA. BUREAU OF METEOROLOGY, DEUTSCHE BANK AG

Rio, BHP output boosts payout hopes

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Original article by Matt Chambers
The Australian – Page: 15 & 17 : 15-Jan-18

Deutsche Bank expects Rio Tinto to report three per cent growth in iron ore output in the Pilbara for the December 2017 quarter, to 87.7 million tonnes, while BHP Billiton’s Pilbara production is forecast to rise by 10 per cent to a record 70.9 million tonnes. Meanwhile, Hayden Bairstow of Macquarie Group expects Rio Tinto to pay a 2017 final dividend of $US1.95 per share, for a full-year payout of $US3.05 per share. Analysts generally also expect BHP to increase its dividend payout for the 2017-18 financial year. Both companies may also boost returns to shareholders via the proceeds of asset sales.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, BLOOMBERG LP, LIBERTY HOUSE GROUP, PACIFIC ALUMINIUM PTY LTD, SAMARCO MINERACAO SA, VALE SA

Iron ore futures rise as cyclone forces closure of Port Hedland

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 12-Jan-18

Iron ore exports from the Pilbara may potentially be disrupted by Tropical Cyclone Joyce. The Bureau of Meteorology has warned that the cyclone could hit the region on 13 January. The towns of Tom Price and Newman are likely to be within its trajectory, although it may miss the Port of Hedland. However, the Pilbara Ports Authority has ordered all vessels to leave the port, which is used by iron ore miners such as Fortescue Metals Group. The price of iron ore for delivery to the Chinese port of Dalian rose on 11 January in response to concerns about the cyclone.

CORPORATES
PORT OF PORT HEDLAND, PILBARA PORTS AUTHORITY, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, BCI MINERALS LIMITED – ASX BCI, MINERAL RESOURCES LIMITED – ASX MIN, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Rio could surprise on ore exports

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 23 : 11-Jan-18

UBS estimates that Rio Tinto’s Pilbara iron ore shipments rose to a record 90.2 million tonnes in the December 2017 quarter, putting it on track to meet its full-year guidance of 330 million tonnes. According to UBS’s forecast, Rio Tinto’s shipments rose by 17 per cent month-on-month in December, to 32.5 million tonnes. Rio Tinto ultimately aims to lift annual shipments to 360 million tonnes, although its Pilbara rail network currently has a capacity of about 330 million tonnes. UBS estimates that the Pilbara shipments of BHP Billiton and Fortescue Metals Group for the quarter totalled 71.3 million tonnes and 40.5 million tonnes respectively.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, ROY HILL HOLDINGS PTY LTD

Rinehart’s Roy Hill to lift output

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Original article by Paul Garvey
The Australian – Page: 14 : 9-Jan-18

Roy Hill Holdings is seeking to lift its iron ore export capacity at Port Hedland to 60 million tonnes a year. The company reached its annual production target of 55 million tonnes in September 2017, less than two years after shipments from its namesake mine began. Roy Hill says the increased production can be achieved without investing in additional infrastructure. Meanwhile, a Federal Government report has forecast strong growth in Australia’s iron ore exports in 2018 and a fall in the price of the steel input.

CORPORATES
ROY HILL HOLDINGS PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF WATER AND ENVIRONMENTAL REGULATION, HANCOCK PROSPECTING PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

Taxes, royalties take half of miners’ profits

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 9-Jan-18

The Minerals Council of Australia’s interim CEO David Byers says a new survey by Deloitte Access Economics demonstrates the need for corporate tax reform. The survey, which was undertaken on behalf of the MCA, shows that taxes and royalties accounted for 51 per cent of the profits of Australian mining companies in fiscal 2016, compared with the nation’s company tax rate of 30 per cent. Byers adds that the survey refutes the widely-held view that mining companies do not pay much tax.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD

Still more riches to be unearthed by miners

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Original article by David Rogers
The Australian – Page: 18 : 9-Jan-18

The S&P/ASX 200 Materials Index has outperformed the broader Australian sharemarket over the last two years, and Macquarie Equities is bullish about the outlook for mining stocks in 2018. The firm believes that major resources groups will have the scope to increase their capital returns to shareholders if the spot prices of key commodities remain at around current levels. Macquarie has maintained its "outperform" rating for both BHP Billiton and Rio Tinto, while Fortescue Metals Group is its preferred stock among pure-play miners.

CORPORATES
STANDARD AND POOR’S ASX 200 MATERIALS INDEX, MACQUARIE EQUITIES LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, OZ MINERALS LIMITED – ASX OZL, METALS X LIMITED – ASX MLX, EVOLUTION MINING LIMITED – ASX EVN, ST BARBARA LIMITED – ASX SBM, REGIS RESOURCES LIMITED – ASX RRL, ILUKA RESOURCES LIMITED – ASX ILU, NEOMETALS LIMITED – ASX NMT, OROCOBRE LIMITED – ASX ORE, WESTERN AREAS LIMITED – ASX WSA, ALUMINA LIMITED – ASX AWC

WA Premier Mark McGowan defends iron ore mining ban on green grounds

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Original article by Brad Thompson
The Australian Financial Review – Page: Online : 3-Jan-18

Western Australian Premier Mark McGowan has banned Mineral Resources from carrying out iron ore mining in the Helena-Aurora Ranges conservation park. Mineral Resources had sought to mine there in order to allow it to extend its Yilgarna operations for a further 15 years. McGowan’s decision puts at risk over 400 jobs, while Mineral Resources has estimated the decision will cost the WA government around $A1 billion in state revenue. Mineral Resources is expected to wind up operations at Yilgarna by the end of 2018, and will try to deploy affected workers elsewhere.

CORPORATES
WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, MINERAL RESOURCES LIMITED – ASX MIN, CONSERVATION COUNCIL OF WESTERN AUSTRALIA INCORPORATED, SINOSTEEL CORPORATION