B08 Metal Ore Mining

AFIC shuts down BHP activists over ‘agitating change’

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 11-Oct-17

Activist hedge fund Elliott Management is believed to have renewed its push for a restructuring at BHP Billiton. However, Australian Foundation Investment Company MD Ross Barker says investors should give BHP’s new chairman Ken MacKenzie sufficient time to make his mark on the resources group before advocating change. He adds that BHP’s management team seems to be acting in the interests of shareholders and there is no need for change at present.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, DJERRIWARRH INVESTMENTS LIMITED – ASX DJW, CGI GLASS LEWIS PTY LTD, RIO TINTO LIMITED – ASX RIO

Nahan buries ALP’s $400m gold grab

roymorgansocial Leave a comment

Original article by Andrew Burrell
The Australian – Page: 5 : 11-Oct-17

Western Australia’s Opposition Leader Mike Nahan says the State Government’s proposed increased in the gold royalty was aimed at funding its election promises rather than budget repair. The 50 per cent royalty increase faces defeat in the upper house after Liberal Party MP voted to block the bill, which had already been rejected by the National Party and crossbenchers. The mining industry had also opposed the royalty increase, warning that it would result in widespread job losses.

CORPORATES
LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, ONE NATION PARTY, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, NEWCREST MINING LIMITED – ASX NCM, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE

Short sellers set sights on Rio Tinto despite price spike

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 13 & 28 : 10-Oct-17

Rio Tinto ranks among the 20 Australian-listed stocks that are most frequently targeted by short sellers. Short positions now account for about nine per cent of Rio Tinto’s shares, compared with less than one per cent three years ago. The resources group’s shares have posted double-digit gains over the last seven weeks, which has coincided with a sharp fall in the iron ore price, and some analysts expect further weakness in the price of the steel input. Peter O’Connor of Shaw & Partners says arbitrage trading may have contributed to the rise in short selling activity, given the price gap between Rio’s Australian and UK shares.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, DEUTSCHE BANK AG, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP

Forrest ruling wipes out mining lease applications

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 9 : 10-Oct-17

A High Court ruling in August 2017 concerning mining lease applications lodged over pastoral land owned by Andrew Forrest in Western Australia has led to new mining legislation in that state. However, the legislation will not cover mining lease applications that are currently in progress, and Tony Bullen from the Department of Mines, Industry Regulation & Safety says fresh applications will have to be submitted.

CORPORATES
HIGH COURT OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, ROY HILL HOLDINGS PTY LTD, FORREST AND FORREST PTY LTD, YARRI MINING PTY LTD, ONSLOW RESOURCES LIMITED

Newcrest looks to solar power for Cadia mine

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 9-Oct-17

Soaring power prices have prompted Newcrest Mining to consider installing a solar farm at its Cadia mine in New South Wales. CEO Sandeep Biswas says it has been to both California and Israel to see what technology is available at the moment. He says that given Cadia is expected to be operational for some years, installing a solar farm is a viable option. He notes that there are currently solar farms capable of generating 600 megawatts, whereas Cadia would only require one that produces 150 megawatts.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN

Twiggy’s court ruling has Roy Hill concerned over leases

roymorgansocial Leave a comment

Original article by Tess Ingram, Brad Thompson
The Australian Financial Review – Page: 15 & 20 : 6-Oct-17

Andrew Forrest obtained a ruling from the High Court in August 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. Records from the relevant department in WA show that Roy Hill Holdings has lodged new applications covering its namesake iron ore project, with a company spokesperson noting that the new applications were a "precautionary step".

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

Gold royalty hike would ‘wipe profits’

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 17 & 22 : 5-Oct-17

Newcrest Mining CEO Sandeep Biwas says the Western Australian Government’s proposed increase in the gold royalty has already affected the state’s reputation as an investment destination. He says companies such as Newcrest may opt to redirect investment elsewhere if the royalty hike makes their WA operations uneconomic. Northern Star Resources chairman Bill Beament, Gold Fields CEO Nick Holland and AngloGold Ashanti Australia executive Mike Erickson have expressed similar concerns.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NORTHERN STAR RESOURCES LIMITED – ASX NST, GOLD FIELDS LIMITED, ANGLOGOLD ASHANTI LIMITED – ASX AGG, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF WESTERN AUSTRALIA

Roy Hill close to achieving lender’s target

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 5-Oct-17

Roy Hill Holdings CEO Barry Fitzgerald says the company’s iron ore project reached its full capacity of 55 million tonnes a year in September. He adds that the mine is on track to meet its 90-day lender’s completion requirements by late 2017. He has downplayed concerns about the Roy Hill mine’s ore grades and purity levels, noting that some initial problems have been overcome. Fitzgerald has also indicated that Roy Hill could introduce driverless trains and autonomous drilling technology to achieve further efficiency gains.

CORPORATES
ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIAN MINING CLUB

Libs may back gold royalty rise

roymorgansocial Leave a comment

Original article by Andrew Burrell
The Australian – Page: 17 & 20 : 4-Oct-17

The Western Australian Government will require the Liberal Party’s support to increase the gold royalty from 2.5 per cent to 3.75 per cent. Opposition Leader Mike Nahan says the gold industry will need to present a strong case to persuade him to reject the royalty hike. He adds that the Liberal Party would be reluctant to block a money bill. Newcrest Mining CEO Sandeep Biswas is among the industry executives to have lobbied both major political parties.

CORPORATES
LIBERAL PARTY OF WESTERN AUSTRALIA, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NEWCREST MINING LIMITED – ASX NCM, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED

Gold royalty rise to cost 3000 jobs: lobby

roymorgansocial Leave a comment

Original article by Andrew Burrell
The Australian – Page: 6 : 3-Oct-17

Economic modelling by the Chamber of Minerals & Energy of Western Australia highlights the potential impact of the State Government’s proposal to increase the gold royalty from 2.5 per cent to 3.75 per cent. The modelling, which is based on 27 gold mines, suggests that the royalty hike would reduce the gold sector’s cash flow by about $A125m a year and cost up to 3,000 jobs. Saracen Mineral Holdings Raleigh Finlayson notes that a further 2,000 direct jobs would be lost if the gold price fell to $A1,400 per tonne.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, MACQUARIE RESEARCH EQUITIES, SILVER LAKE RESOURCES LIMITED – ASX SLR, BLACKHAM RESOURCES LIMITED – ASX BLK, WESTGOLD RESOURCES LIMITED – ASX WGX