B08 Metal Ore Mining

Rinehart warns of collapse in investment

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 3 : 14-Nov-17

Mining magnate Gina Rinehart has expressed concern that the compliance burden and excessive bureaucracy pose a major threat to future investment in Australia’s mining industry and other sectors of the economy. She has called for an overhaul of the nation’s three levels of government, arguing that there is too much duplication of red tape at federal, state and local council level. Rinehart has also urged greater support for National Mining and Related Industries Day, noting that it does not receive the same amount of recognition as National Agriculture Day.

CORPORATES
HANCOCK PROSPECTING PTY LTD, NATIONAL FARMERS’ FEDERATION LIMITED, FAIRFAX AGRICULTURAL MEDIA

Can resources rally continue?

roymorgansocial Leave a comment

Original article by Sarah Turner
The Australian Financial Review – Page: 33 : 9-Nov-17

Mining and energy stocks have been a major contributor to the Australian sharemarket’s rise above 6,000 points, with the price of both Brent crude oil and iron ore rebounding in recent weeks. Lachlan Shaw of UBS expects demand for commodities in China to remain strong, despite expectations of a slight decline in the nation’s economic growth, while David Lafferty of Natixis Asset Management notes that the world is currently experiencing synchronised economic growth.

CORPORATES
UBS HOLDINGS PTY LTD, NATIXIS ASSET MANAGEMENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S ASX 200 INDEX

Fortescue looks to new horizons

roymorgansocial Leave a comment

Original article by Glenda Korporaal
The Australian – Page: 20 : 9-Nov-17

More than 90 per cent of Fortescue Metals Group’s iron ore is exported to China. However, outgoing CEO Nev Power has flagged plans to lift the volume of exports to other nations in response to Chinese steel mills’ growing demand for higher-grade iron ore. Fortescue already ships some iron ore to the UK and Germany, and Power says it aims to build on this, as well as seeking other export markets in Asia. Power has also advised that Fortescue will undertake a feasibility study on its Eliwana deposit at the Western Hub in the Pilbara.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RESERVE BANK OF AUSTRALIA, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY

Doubts raised on mine job numbers

roymorgansocial Leave a comment

Original article by Andrew Burrell
The Australian – Page: 9 : 8-Nov-17

Data from the 2016 Census shows that just 907 of the 8,000 Aboriginals who live in the Pilbara region currently work in the iron ore industry. In contrast, Rio Tinto, BHP Billiton and Fortescue Metals Group claim that they employ about 1,850 Aboriginal people in the Pilbara. Perth-based lawyer Franklin Gaffney says the census figures give credence to claims that Aboriginal employment numbers in the mining sector are being inflated. He has proposed independent monitoring of native title agreements to ensure that companies are meeting their targets for employing indigenous people.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, LAVAN LEGAL, AUSTRALIAN BUREAU OF STATISTICS

A Pilbara gold rush guide

roymorgansocial Leave a comment

Original article by Tim Boreham
The Australian – Page: Online : 7-Nov-17

Upwards of 20 ASX-listed companies are looking for gold in the Pilbara region of Western Australia. They are being buoyed by comparisons being made between the discoveries made to date there and the Witwatersrand formation in South Africa; the latter region has produced half the world’s gold to date. Some of the more prominent companies involved in the "Pilbara gold rush" include Artermis Resources, De Grey Mining and Calidus Resources. The last named company’s activities in the region include the exploration of two leases held by Haoma Mining, with an option to acquire them.

CORPORATES
ASX LIMITED – ASX ASX,ARTEMIS RESOURCES LIMITED – ASX AYL,DE GREY MINING LIMITED – ASX DEG,CALIDUS RESOURCES LIMITED – ASX CAI,HAOMA MINING NL – ASX HAO,ROY MORGAN RESEARCH LIMITED,NOVO RESOURCES,KIRKLAND,KALAMAZOO RESOURCES LIMITED – ASX KZR,KAIROS MINERALS LIMITED – ASX KAI,CHALICE GOLD MINES LIMITED – ASX CHN,DGO GOLD LIMITED – ASX DGO,MARINDI METALS LIMITED – ASX MZN,SOUTHERN HEMISPHERE MINING LIMITED – ASX SUH,SPROTT GLOBAL RESOURCE INVESTMENTS LIMITED,IMPACT MINERALS LIMITED – ASX IPT

Fortescue urged to reduce exports, raise iron grades

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 27 : 4-Nov-17

Andrew Hines has urged Fortescue Metals to lift its iron ore grades, even if that means reducing the level of its exports. Hines, an analyst with Evans & Partners, says doing this would help the level of pricing discounts applied to its product. He notes its recent strategy of lowering the grade of its product has reduced its production costs, but at the expense of the price it gets for its shipments. Hines says a "perfect storm of factors", including higher energy and transport costs, could see Fortescue posting a loss in fiscal 2019, compared to the $US2.1 billion ($A2.7 billion) net profit it announced in August.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Fortescue faces 70pc value hit from iron ore discount

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 30 : 3-Nov-17

Fortescue Metals Group’s lower-grade iron ore is trading at a discount of about 30 per cent to the benchmark price. Sam Webb of Credit Suisse estimates that Fortescue’s net present value could fall to $A1.40 per share if the this discount persists. Webb adds that Fortescue’s future capital expenditure and exploration plans may be affected if the price discount is sustained until mid-2018. Credit Suisse has a share price target of $A6.10 on Fortescue. The stock rose 4.06 per cent to $A4.87 on 2 November.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CREDIT SUISSE (AUSTRALIA) LIMITED

Iron ore discount now ingrained, says Ellison

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 23 : 2-Nov-17

Mineral Resources MD Chris Ellison expects lower-grade iron ore to continue to trade at a discount to the benchmark price for some time. He adds that the discount may widen further in the first few months of 2018. Fortescue Metals Group recently forecast that the discount will eventually narrow to its historic average of around 10 per cent. Meanwhile, Ellison says current iron ore pricing will have no impact on Mineral Resources’ proposed Bungalbin East and Jackson 5 mines.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, CLEVELAND-CLIFFS INCORPORATED

BHP enters NBN debate as data demand soars

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 23 : 2-Nov-17

BHP Billiton is embracing technology such as automation and telematics, which in turn is increasing the amount of data and bandwidth it uses, says chief technology officer Diane Jurgens. She adds that BHP uses both its own data networks and the national broadband network. Jurgens advocates using fibre-to-the-premises for the NBN, arguing that doing so is an investment for the long-term, as demand for bandwidth is set to increase exponentially. Meanwhile, BHP plans to deploy driverless trains on its Pilbara iron ore rail network, a process that Jurgens says will take at least 12 months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Iron ore market doesn’t warrant extra supply: Fortescue

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 15 & 18 : 1-Nov-17

Rio Tinto CEO Jean-Sebastien Jacques recently told staff via an internal communication that its Pilbara iron ore shipments could eventually top 400 million tonnes a year, compared with its 2017 target of 330 million tonnes. However, Fortescue Metals Group CEO Nev Power questions whether there is sufficient demand for iron ore at present to justify a large increase in supply, noting that shareholder returns will be adversely affected if resources projects are over-developed. Meanwhile, Power expects the price discount for Fortescue’s lower-grade iron ore to narrow over time.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ARRIUM LIMITED – ASX ARI, LIBERTY HOUSE GROUP, CLEVELAND-CLIFFS INCORPORATED, METALICITY LIMTED – ASX MCT