B08 Metal Ore Mining

BHP commits $3.1bn to Chile copper mine

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Original article by Paul Garvey
The Australian – Page: 21 : 18-Aug-17

BHP Billiton will expand its Spence copper mine in Chile at a cost of $US2.46bn ($A3.1bn). BHP had initially estimated in 2015 that expanding the project would cost around $US2.2bn. Dubbed the Spence Growth Option, the project will increase BHP’s annual copper output by about 185,000 tonnes during the first 10 years of the expansion. BHP anticipates an internal rate of return of about 16 per cent from the Spence Growth Option.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION

Elliott holds fire on BHP amid ‘smarter’ strategy

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Original article by Matt Chambers
The Australian – Page: 20 : 17-Aug-17

Elliott Management has welcomed the business strategy BHP Billiton has adopted since the US hedge fund began lobbying for a restructuring of the resources group. The activist investor has disclosed that it has become a substantial shareholder, with direct ownership of five per cent of BHP’s London-listed shares. It previously had exposure to BHP via derivatives. Elliott also has an 0.5 per cent economic interest in BHP’s Australian-listed shares.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, BLOOMBERG LP, BLACKROCK INCORPORATED, THE VANGUARD GROUP INCORPORATED, ABERDEEN ASSET MANAGEMENT LIMITED

Newcrest’s dividend plan ‘to flex’

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 18 : 15-Aug-17

Newcrest Mining has posted a 2016-17 net profit of $US308m, which is seven per cent lower than previously. The result was marred by one-off items totalling $US86m, although its underlying net profit rose 22 per cent to $US394m. Newcrest reduced its net debt to $US1.5bn in 2016-17, while it has announced a new dividend policy which will result in shareholders receiving at least 10-30 per cent of free cash flow in the form of dividends. The minimum annual dividend payout will be $US0.15 per share.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, MORGANS FINANCIAL LIMITED, ALLAN GRAY AUSTRALIA PTY LTD

Sandfire rolls the dice on growth

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

The mine life of Sandfire Resources’ DeGrussa copper project in Western Australia will be extended until 2022 when it begins processing ore from the Monty deposit. However, Paul Howard of Hartleys estimates that Sandfire will need to make another significant discovery within 12 months due to the time it takes to begin production. Sandfire CEO Karl Simich has indicated that in addition to further exploration, the miner may be prepared to buy assets that do not usually meet its criteria in order to maintain production.

CORPORATES
SANDFIRE RESOURCES NL – ASX SFR, HARTLEYS LIMITED, TALISMAN MINING LIMITED – ASX TLM, GLENCORE PLC, TRAFIGURA BEHEER BV, DIGGERS AND DEALERS FORUM

Jobs shock as mine to close

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Original article by Nick Evans
The West Australian – Page: 1 : 10-Aug-17

First Quantum Minerals has advised that its Ravensthorpe nickel mine in Western Australia is likely to be placed in "care and maintenance" mode by October. The low price of nickel prompted the decision to mothball the mine, which the Canada-based group is believed to have been trying to sell since 2016. The mine has a workforce of about 500 employees and contractors.

CORPORATES
FIRST QUANTUM MINERALS LIMITED, BHP BILLITON LIMITED – ASX BHP, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM

BHP Nickel West charged by battery boom new revolution

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 & 18 : 10-Aug-17

BHP Billiton aims to capitalise on the growing demand for lithium-ore batteries, with plans to build a nickel sulfate plant at Kwinana in Western Australia. The first stage of the project will cost $US43.2m and have annual production capacity of 100,000 tonnes of nickel sulfate hexahydrate. Stage two of the project would increase the plant’s annual capacity to 200,000 tonnes. The nickel sulfate project has secured the near-term future of BHP’s Nickel West business, which was facing the prospect of closure in coming years after efforts to sell it failed.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, INDEPENDENCE GROUP NL – ASX IGO, WESTERN AREAS LIMITED – ASX WSA, NICKEL WEST, DIGGERS AND DEALERS FORUM, TESLA INCORPORATED

Gold mining M&A too expensive: CEOs

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 24 : 9-Aug-17

Gold Fields CEO Nick Holland says the South Africa-based company has ramped up spending on exploration to almost $A100m a year, citing factors such as a dearth of acquisition opportunities in the gold sector and the high cost of gold assets. He adds that exploration budgets had been slashed globally in recent years, while a number of gold assets in Australia are likely to reach the end of their mine life in coming years. Evolution Mining and Saracen Mineral Holdings are among the Australian-listed companies that are increasing their exploration programs.

CORPORATES
GOLD FIELDS LIMITED, EVOLUTION MINING LIMITED – ASX EVN, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, ST BARBARA LIMITED – ASX SBM, DIGGERS AND DEALERS FORUM, GOLD ROAD RESOURCES LIMITED – ASX GOR, RIVERSGOLD LIMITED

FMG in iron price talks amid volatility

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Original article by Paul Garvey
The Australian – Page: 20 : 9-Aug-17

Fortescue Metals Group CEO Nev Power says the pure-play iron ore miner has held talks with steel mills and industry associations about addressing recent volatility in the price of the steel input. However, he says there is unlikely to be any support for a return to the fixed pricing system. Power adds that speculative futures trading has been a major contributor to the iron ore price volatility.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, DIGGERS AND DEALERS FORUM, EASTERN GOLDFIELDS LIMITED – ASX EGS, NORTHERN STAR RESOURCES LIMITED – ASX NST, GALAXY RESOURCES LIMITED – ASX GXY, GENERAL MINING CORPORATION LIMITED

Anglo American vows to halve costs using technology

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

Tony O’Neill of Anglo American says the company will seek further productivity gains via technological innovation, after lifting productivity by 70 per cent over the last 4-5 years. O’Neill has outlined some of these technologies at the annual Diggers & Dealers forum, but he noted that securing regulatory permits is the main hindrance to adopting some of the innovations. Meanwhile, Roy Hill Holdings has advised that iron ore shipments from its namesake mine totalled 4.45 million tonnes in June 2017, and shipments had averaged 2.8 million tonnes during the first half of the calendar year.

CORPORATES
ANGLO AMERICAN PLC, ROY HILL HOLDINGS PTY LTD, DIGGERS AND DEALERS FORUM, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO

Yawning gap in iron ore prices here to stay

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Original article by Tess Ingram, James Thomson
The Australian Financial Review – Page: 20 : 4-Aug-17

The differential between the benchmark price of iron ore and lower-grade ore has widened in recent months, which affected the earnings of miners such as Fortescue Metals Group and BC Iron in the June 2017 quarter. Fortescue expects the discount to narrow in the second half of fiscal 2018, but Rio Tinto CEO Jean-Sebastien Jacques forecasts that it will be sustained for some time. He argues that the shift is structural rather than cyclical. and he says China’s move to close down inefficient steel mills has been a major driver of the shift.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, MOUNT GIBSON IRON LIMITED – ASX MGX, SMORGON STEEL GROUP LIMITED