B08 Metal Ore Mining

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

Twiggy’s court win backfires on Fortescue

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Original article by Tess Ingram
The Australian Financial Review – Page: 3 : 6-Sep-17

Andrew Forrest was recently successful in obtaining a ruling from the High Court to prevent two firms from lodging mining applications over his Minderoo cattle station in Western Australia. The ruling caused concern that other mining applications previously made in WA may not be valid, including those made by Fortescue Metals Group, which was founded by Forrest. Records show that Fortescue has made applications for 16 mining leases since the High Court ruled in Forrest’s favour, with some applications appearing to be for existing Fortescue leases.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, HIGH COURT OF AUSTRALIA, YARRI MINING PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, ONSLOW RESOURCES LIMITED

BHP upbeat on ore, coal price outlook

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Original article by Matt Chambers
The Australian – Page: 18 : 4-Sep-17

The latest financial results of BHP Billiton and Rio Tinto were boosted by the rise in iron ore and coal prices. BHP’s chief commercial officer Arnoud Balhuizen says the resources giant expects the price of iron ore to remain strong until at least the end of 2017, while the price of coking coal could potentially be sustained beyond 2017. Meanwhile, the outlook for Fortescue Metals Group will be heavily influenced by Chinese steel mills’ demand for higher-grade iron ore. The price gap between benchmark iron ore and the 58 per cent iron ore produced by Fortescue has widened to more than $US20 per tonne.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

BHP scraps grid-power deal with OZ Minerals

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Original article by Matt Chambers
The Australian – Page: 22 : 1-Sep-17

OZ Minerals has warned that power costs at its Prominent Hill gold and copper mine could rise by 2-5 per cent from mid-2020. BHP Billiton has advised that it will end an agreement for OZ to access the Olympic Dam mine’s power transmission infrastructure from August 2020. BHP has indicated that the proposed expansion of Olympic Dam will significantly increase the copper and uranium mine’s electricity requirements, forcing OZ Minerals to seek an alternative source of electricity.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL, SANDFIRE RESOURCES NL – ASX SFR

Silvergrass mine will buff up Rio’s iron ore credentials, Jacques says

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 31-Aug-17

Rio Tinto’s Silvergrass iron ore mine will eventually boast annual production of 20 million tonnes. The mine was officially opened on 30 August, and Rio Tinto CEO Jean-Sebastien Jacques stressed the importance of Silvergrass in maintaining the quality of the company’s "Pilbara Blend" as Chinese steel mills’ demand for higher-quality iron ore increases. Jacques has also indicated that Rio Tinto will consider the future of its stake in the Grasberg copper and gold mine when Freeport-McMoRan concludes negotiations with the Indonesian Government over the mine’s ownership structure.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Atlas maps out port route to beef up exports

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Original article by Tess Ingram
The Australian Financial Review – Page: 26 : 30-Aug-17

Atlas Iron has posted a 2016-17 net profit of $A48m, and its iron ore shipments totalled 14.4 million tonnes. Atlas forecasts that its shipments for 2017-18 will be within the range of nine to 10 million tonnes, and MD Cliff Lawrenson says the company will seek to utilise more of its capacity at the Utah Point bulk handling facility. This would allow Atlas to reduce its production costs, which averaged $A53 per tonne in 2016-17 and are forecast to be between $A54 and $A58 in 2017-18.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, PILBARA MINERALS LIMITED – ASX PLS

Elliott holds fire on BHP board

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Original article by James Thomson
The Australian Financial Review – Page: 18 : 25-Aug-17

Elliott Management holds five per cent of BHP Billiton’s London-listed shares, but the activist hedge fund has chosen not to seek representation on the board at the 2017 AGM. Nominations closed in late August, and Elliott has declined to comment on speculation that its decision was linked to Grant King’s recent resignation from BHP’s board. Incoming chairman Ken MacKenzie has met extensively with shareholders, who expressed their dissatisfaction with King’s appointment to the board in early 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, ORIGIN ENERGY LIMITED – ASX ORG, WESFARMERS LIMITED – ASX WES, BP AUSTRALIA LIMITED, BUSINESS COUNCIL OF AUSTRALIA

BHP pledges dividend windfall

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 23-Aug-17

BHP Billiton has posted a 2016-17 net profit of $US5.89bn, compared with a loss of $US6.34bn previously, while its underlying profit rose from $US1.215bn to $US6.732bn. The resources group reduced its net debt by $US9.8bn during the financial year, to $US16bn. BHP has flagged plans to divest its US shale assets, with CEO Andrew Mackenzie indicating that the sale of individual assets is preferable to an IPO of the entire business. BHP has also ruled out further investment in the Jansen potash project in the near-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ELLIOTT MANAGEMENT CORPORATION

FMG powers up with plan to grow, cut debt

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Original article by Tess Ingram
The Australian Financial Review – Page: 11 & 16 : 22-Aug-17

Fortescue Metals Group shareholders will receive a 2016-17 full-year dividend of $A0.45 per share, compared with $A0.15 for the previous financial year. The pure-play iron ore miner has increased its net profit from $US985m in 2015-16 to $US2.1bn for 2016-17, while revenue was 19 per cent higher at $US8.4bn and underlying earnings rose 48 per cent to $US4.7bn. Meanwhile, Fortescue reduced its net debt from $US5.2bn to just $US2.6bn in 2016-17. Fortescue intends to increase its iron ore capital expenditure in 2017-18, while it looking to expand into commodities such as gold and copper.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, ALLERON INVESTMENT MANAGEMENT LIMITED

BHP to deliver six-fold jump in earnings

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 21-Aug-17

The general consensus of analysts is for BHP Billiton’s underlying earnings for 2016-17 to be within the range of $US7bn to $US7.3bn, compared with $US1.2bn in 2015-16. Most analysts expect BHP’s final dividend to be around $US0.43 per share, although Credit Suisse expects a payout of $US0.36. BHP’s final dividend in 2015-16 was just $US0.14 per share. Meanwhile, investors will be hoping for some guidance on BHP’s plans for its US shale assets and the Jansen potash project.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED, SHAW AND PARTNERS LIMITED, ELLIOTT MANAGEMENT CORPORATION, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, RIO TINTO LIMITED – ASX RIO, TRIBECA GLOBAL NATURAL RESOURCES FUND, FORTESCUE METALS GROUP LIMITED – ASX FMG