B08 Metal Ore Mining

Evolution offloads Edna May mine to Ramelius for $90m

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 19-Sep-17

Evolution Mining has secured a deal to sell its Edna May gold mine to Ramelius Resources for $A90m. Evolution will receive an upfront payment of $A40m for the mine, while the deal also comprises an additional cash or scrip component and royalty payments. Ramelius MD Mark Zeptner says the company will consider expanding Edna May via either underground or open pit mining. The royalty payments will depend on which option Ramelius chooses, and these payments will not begin until production exceeds 200,000 ounces.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, RAMELIUS RESOURCES LIMITED – ASX RMS, RBC CAPITAL MARKETS

Discounts on FMG’s iron ore forced higher

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Original article by Angus Grigg, Tess Ingram, James Thomson
The Australian Financial Review – Page: 15 : 18-Sep-17

The discount that Fortescue Metals Group receives on sales of its iron ore with 56.7 per cent iron content has widened so far in 2017-18. This discount to the benchmark price for 62 per cent iron ore averaged 23 per cent in 2016-17, compared with an historical average of 10-15 per cent. However, the discount widened to 27 per cent in the June 2017 quarter. It increased to 32 per cent in August and rose to 35 per cent in early September. Fortescue’s outgoing CEO Nev Power expects the current discount to be maintained in the near-term.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON ALUMINIUM (HOLDINGS) PTY LTD, RIO TINTO LIMITED – ASX RIO, VALE SA, UBS HOLDINGS PTY LTD, SHANGHAI STEELHOME INFORMATION TECHNOLOGY COMPANY LIMITED

BHP hauls coal in long distance mine

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Original article by Matt Chambers
The Australian – Page: 22 : 15-Sep-17

BHP Billiton has completed the process of centralising the major operating roles at its coking and thermal coal mines in Queensland and New South Wales. BHP’s integrated ­remote operating centre in Brisbane employs 212 people who perform functions that were previously undertaken at each mine. In addition to transferring existing staff to the remote hub, BHP has hired about 30 additional employees, with many recruits having a non-mining background.

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

South32 execs pay the price for lower output

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 15-Sep-17

South32’s failure to achieve its target of an 0.9 per cent return on invested capital in 2016-17 has in turn resulted in lower short-term incentive payments for its key executives. CEO Graham Kerr was paid just 55.3 per cent of his maximum potential short-term incentives, although his total remuneration for the financial year rose from $A4.2m to $A5m. South32 does not intend to make any changes to its executive remuneration policy in 2017-18.

CORPORATES
SOUTH32 LIMITED – ASX S32

Fortescue closer to decision on Iron Bridge magnetite project

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 14-Sep-17

Fortescue Metals Group CEO Nev Power says the pure-play iron ore miner and its joint venture partners in the Iron Bridge magnetite project are likely to decide whether to proceed with it before the end of 2017-18. Power has indicated that Fortescue, Baosteel and Taiwan-based Formosa are still considering their options for developing the project. The second stage of the Iron Bridge project was initially slated to commence in 2015, and produce magnetite concentrate with an iron content of 68 per cent.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SHANGHAI BAOSTEEL GROUP CORPORATION, FORMOSA GROUP, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Resurgent miners see tighter labour market

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Original article by Paul Garvey
The Australian – Page: 21 : 13-Sep-17

The number of mining-related job vacancies in Australia is almost 40 per cent higher than 12 months ago, according to new data from DFP Recruitment Services. Job vacancies for engineers have risen by 78.5 per cent in the last year, after a sharp slump in demand for such professionals following the mining industry downturn. Meanwhile, job vacancies in Western Australia’s iron ore sector have risen by 57 per cent. Mining executives note that some staff are being poached, particularly those with specialists skills.

CORPORATES
DFP RECRUITMENT SERVICES PTY LTD, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, INDEPENDENCE GROUP NL – ASX IGO, SOUTH32 LIMITED – ASX S32, BIS INDUSTRIES LIMITED

Evolution mulls offers for Edna May gold mine

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 13-Sep-17

Evolution Mining has advised that it has received several offers from prospective buyers of the Edna May gold mine in Western Australia. Minjar Gold, which bought Evolution’s Pajingo mine in 2016, is believed to be among the companies to have expressed interest in Edna May. The mine had significantly lower EBITDA than Evolution’s two major mines in 2016-17, while its output for the financial year was 70,188 ounces.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, MINJAR GOLD PTY LTD, NORTHERN STAR RESOURCES LIMITED – ASX NST, WESTGOLD RESOURCES LIMITED, KIDMAN RESOURCES LIMITED – ASX KDR, SOCIEDAD QUIMICA Y MINERA SA, HANKING GOLD MINING PTY LTD, ARGONAUT SECURITIES PTY LTD, CITIGROUP PTY LTD, RBC CAPITAL MARKETS

Nickel miner pins hopes on electric cars

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Original article by Paul Garvey
The Australian – Page: 18 : 11-Sep-17

Australian-listed Independence Group is well-placed to benefit from rising demand for nickel, cobalt and copper as sales of electric vehicles rise. The company’s Nova mine produces all three metals, and Independence MD Peter Bradford says it has received a number of enquiries regarding supply deals when existing off-take arrangements with BHP Billiton and Glencore expire. Bradford notes that factors other than demand from the electric vehicle industry have prompted the recent rise in the price of nickel and copper.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC, SIRIUS RESOURCES NL, PANORAMIC RESOURCES LIMITED – ASX PAN, MINCOR RESOURCES NL – ASX MCR, FIRST QUANTUM MINERALS LIMITED, TESLA INCORPORATED

Solving the fickle nickel mystery

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Original article by Paul Garvey
The Australian – Page: 20 : 8-Sep-17

Comet Minerals, which is headed by mining industry veteran Hugh Morgan, revealed the company’s Titan nickel discovery in Nigeria at the 2016 Africa Down Under conference. Morgan says Comet has found an accurate method of assaying the content of the deposit’s unique nickel balls. This should enable Comet to determine an initial resource base for the deposit, given that the nickel balls vary significantly in size and density. Morgan says Comet will consider a range of options for funding the development of Titan.

CORPORATES
COMET MINERALS, AFRICA DOWNUNDER CONFERENCE, WESTERN MINING CORPORATION

WA Budget 2017: 50 gold producers hit with royalties double whammy

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Original article by Neale Prior
Herald Sun – Page: Online : 8-Sep-17

The Western Australian Government’s 2017 Budget includes an increase in the gold royalty rate from 2.5 per cent to 3.75 per cent when the spot gold price trades above $A1,200 ($US959) an ounce. In addition, gold miners whose annual output exceeds the 2,500oz threshold for a royalty exemption will no longer be entitled to it. The Association of Mining & Exploration Companies has described the measures as a "tax grab" that will result in job cuts in the sector. Large mining companies also face an 0.5 per cent increase in the payroll tax rate, although this will be temporary.

CORPORATES
ASSOCIATION OF MINING AND EXPLORATION COMPANIES, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED