B08 Metal Ore Mining

Minerals Council pushes back over BHP threat

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 13 & 18 : 21-Dec-17

A Minerals Council of Australia spokesman says it intends to keep lobbying on the issues of climate and energy policy. This is despite BHP Billiton’s threat to cancel its membership if the MCA continues to advocate polices that are contrary to its own. However, BHP’s 50 per cent stake in the Bass Strait gas fields means it has less exposure to rising electricity prices on the east coast than fellow MCA members such as Rio Tinto and Glencore. BHP’s share of Bass Strait gas is equivalent to about 10 per cent of domestic demand for gas on the east coast. In contrast, BHP’s mining operations on the east coast account for around one per cent of National Energy Market demand.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Hambro tips iron ore discounts to persist

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 20 : 13-Dec-17

BlackRock fund manager Evy Hambro expects lower-grade iron ore to continue to trade at a discount to the benchmark price for some time. The discount has widened amid growing demand in China for higher-grade ore. Hambro notes that Australian miners may find it increasingly difficult to maintain the quality of their iron ore, as some of the best-quality reserves in the Pilbara have been exhausted. Brazil-based Vale is also increasing production of higher-grade iron ore at its S11D project.

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

Bargain buy of Canadian iron mine pays off for O’Keefe

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian Financial Review – Page: 20 : 7-Dec-17

Australian-listed Champion Iron aims to commence iron ore shipments from the Bloom Lake project in Canada in March 2018, having paid less than $US10m for it in 2016. Previous owner Cliffs had invested some $US2.4bn in the project, which it had acquired as part of its $US5bn purchase of Consolidated Thompson in 2011. Champion Iron is headed by Michael O’Keefe, who estimates that Bloom Lake’s higher-grade iron ore to fetch about $US80 per tonne at current prices. He is the former head of Riversdale Mining, which was acquired by Rio Tinto in 2011.

CORPORATES
CHAMPION IRON LIMITED – ASX CIA, CLIFFS NATURAL RESOURCES INCORPORATED, RIVERSDALE MINING LIMITED, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Thompson urged to follow BHP boss with listening tour

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 32 : 5-Dec-17

Simon Thompson, the former head of base metals at Anglo American, will succeed Jan du Plessis as chairman of Rio Tinto in March 2018. Thompson has been on Rio’s board since 2014. Rob Penaloza of Aberdeen Asset Management says he will be interested to hear more about Thompson’s priorities and see how his approach to the role will differ to that of his predecessor. Penaloza also suggests that Thompson should hold talks with shareholders before taking up his new role.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, NEWMONT MINING CORPORATION, SANDVIK AB, XTREAMLOK PTY LTD, TULLOW OIL PLC

ATO eyes legal fight against BHP, Rio hubs

roymorgansocial Leave a comment

Original article by Nick Tabakoff
The Australian – Page: 17 & 20 : 5-Dec-17

Tax commissioner Chris Jordan says the Australian Taxation Office may take BHP Billiton and Rio Tinto to court over their use of Singapore marketing hubs. Jordan claims that the use of such hubs is reducing Australia’s tax base, and getting some "judicial guidance" on their use may be the best way forward. BHP and Rio Tinto are both embroiled in large tax disputes with the ATO over their use of the marketing hubs.

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

Fortescue boasts a few female firsts in corporate shake-up

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 22 : 1-Dec-17

Fortescue Metals announced 30 November that Elizabeth Gaines is to replace outgoing CEO Nev Power, making Gaines the first female to head up a major Australian mining firm. Greg Lilleyman, who had been seen as a contender with Gaines to replace Power, has been promoted from director of operations to chief operating officer, while Julie Shuttleworth, currently in charge of Fortescue’s Solomon operations, has been appointed to the newly created role of deputy CEO. It is believed it makes Fortescue the first ASX 200 company to have females occupying the top two executive roles.

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

Kirkland Lake eyes Australian growth

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: Online : 1-Dec-17

$A4 billion Canadian mining firm Kirkland Lake Gold, the owner of the Fosterville gold mine near Bendigo in Victoria, began trading its securities on the ASX on 30 November. Fosterville was producing just 105,000 ounces of gold a year as recently as 2014, but Kirkland Lake Gold CEO Tony Makuch believes it could be producing 400,000 ounces of gold by 2020. Kirkland Lake Gold also has an interest in the Pilbara region of Western Australia through its stake in Novo Resources.

CORPORATES
KIRKLAND LAKE GOLD LIMITED, ASX LIMITED – ASX ASX, NOVO RESOURCES CORPORATION, TORONTO STOCK EXCHANGE

BHP expects to cut Australian mine costs by further 10pc, talks up copper prices

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: Online : 29-Nov-17

BHP Billiton has told participants at its investors’ briefing on 28 November that it aims to achieve $US2 billion in productivity gains over the next 24 months, with its Australian mines expected to account for 80 per cent of that target. Its iron ore division, which achieved unit costs of $US14.60 per tonne in the year to 30 June 2017, is expected to reduce that figure to under $US13 in the medium term. Meanwhile, BHP told investors that copper prices in 2017 had been better than forecast, and that it expects prices to again be strong in 2018.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, RIO TINTO LIMITED – ASX RIO

Pilbara minnows tank on Novo no-go

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 28 : 28-Nov-17

Shares in companies targeting the Pilbara region of Western Australia for gold performed badly on 27 November. This followed an announcement by Canadian-based resources firm Novo Resources that the results of attempts to test conglomerate deposits at its Purdy’s Well tenement with a specialist drill rig had been "disappointing". Shares in its joint-venture partner Artemis Resources fell by 19.7 per cent, while Impact Minerals, De Grey Mining, Kairos Minerals and Marindi Metals all dropped by at least 20 per cent.

CORPORATES
NOVO RESOURCES CORPORATION, ARTEMIS RESOURCES LIMITED – ASX ARV, IMPACT MINERALS LIMITED – ASX IPT, DE GREY MINING LIMITED – ASX DEG, KAIROS MINERALS LIMITED – ASX KAI, MARINDI METALS LIMITED -ASX MZN

Deal-maker Davis tipped for Rio chair

roymorgansocial Leave a comment

Original article by Peter KerPatrick Durkin
The Australian Financial Review – Page: 15 : 15-Nov-17

Rio Tinto has declined to comment on speculation that Mick Davis could succeed chairman Jan du Plessis. Davis was the CEO of Xstrata until it merged with Glencore, and he is still a director of X2 Resources. Rio Tinto director Sam Laidlaw is also regarded as a contender to replace du Plessis, who advised earlier in 2017 that he intends to step down. Peter O’Connor of Shaw & Partners says Rio Tinto might want to consider appointing a chairman with strong corporate governance credentials given the recent series of scandals involving the resources group.

CORPORATES
RIO TINTO LIMITED – ASX RIOXSTRATA PLCGLENCORE PLCSHAW AND PARTNERS LIMITEDCONSERVATIVE PARTY (GREAT BRITAIN)SOCIEDAD QUIMICA Y MINERA SASASOL LIMITEDUNITED STATES. SECURITIES AND EXCHANGE COMMISSIONAUSTRALIAN INSTITUTE OF COMPANY DIRECTORS