B08 Metal Ore Mining

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

Electric cars drive Fortescue’s lithium push

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 17 & 25 : 1-Nov-17

Growing global demand for lithium has prompted pure-play iron ore miner Fortescue Metals Group to diversify by revealing plans to explore tenements near existing lithium deposits in Western Australia. Shares in Australian-listed lithium miners have rallied in recent months, amid rising demand for electric cars and plans by some car makers to phase out traditional petrol-only vehicles. Meanwhile, Richard Coppleson of Bell Potter says lithium could follow the same price trajectory as iron ore in the mid-2000s.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BELL POTTER SECURITIES LIMITED, PILBARA MINERALS LIMITED – ASX PLS, GALAXY RESOURCES LIMITED – ASX GXY, KIDMAN RESOURCES LIMITED – ASX KDR, MINERAL RESOURCES LIMITED – ASX MIN, UBS HOLDINGS PTY LTD, VOLKSWAGEN AG, AUDI AG, DR ING HCF PORSCHE AG, GENERAL MOTORS CORPORATION, FORD MOTOR COMPANY

Cashed-up miners are facing a global grab for royalties

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 19 : 31-Oct-17

A congressional committee recently approved the Brazilian Government’s proposal to increase the nation’s iron ore royalty rate from two per cent to four per cent. Vale has advocated increasing the royalty via a sliding scale, warning that a fixed rise could force it to reduce production at some mines. Chile in turn proposes a hike in its lithium royalty rate. Meanwhile, Lion Selection Group’s Hedley Widdup notes that mining companies would have reduced their exploration budgets if the Western Australian Government’s push to increase its gold royalty had succeeded.

CORPORATES
VALE SA, LION SELECTION GROUP LIMITED – ASX LSX, UBS HOLDINGS PTY LTD, AUSTRALIA. OFFICE OF THE CHIEF ECONOMIST

Pollution controls lift FMG’s China discount

roymorgansocial Leave a comment

Original article by Angus Grigg, James Thomson
The Australian Financial Review – Page: 13 & 19 : 31-Oct-17

SteelHome analyst Du Hongfeng says Chinese demand for iron ore is likely to fall by 56 million tonnes between September 2017 and March 2018, as steel mills reduce output during the winter months. He adds that this will require Fortescue Metals Group to maintain its current iron ore price discount until at least March, in order to retain its market share. Fortescue’s iron ore with 58.5 per cent iron content is currently being offered at a 23 per cent discount to the benchmark price for delivery in November, while its iron ore with 56.3 per cent iron content is trading at a 40 per cent discount.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SHANGHAI STEELHOME INFORMATION TECHNOLOGY COMPANY LIMITED, UBS HOLDINGS PTY LTD