B08 Metal Ore Mining

BC Iron inks deal with Palmer firm for Pilbara

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Original article by Tess Ingram
The Australian Financial Review – Page: 8 : 2-Oct-17

BC Iron reported on 29 September that it had entered into an agreement to acquire mining tenements in Western Australia’s Pilbara region from Clive Palmer’s Mineralogy company. BC Iron, in which billionaire Kerry Stokes has a 22.7 per cent stake, will pay Mineralogy $A9 million for the tenements, along with two ongoing royalties. The tenements are located near BC Iron’s Buckland iron ore project.

CORPORATES
BC IRON LIMITED – ASX BCI, MINERALOGY PTY LTD, CITIC PACIFIC MINING MANAGEMENT PTY LTD

Fortescue mulls move into gold, copper, energy

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Original article by Manolo Serapio
The Australian Financial Review – Page: 19 : 28-Sep-17

Fortescue Metals Group CEO Nev Power has revealed that the pure-play iron ore miner is exploring for other minerals in Australia and South America, including gold, copper and lithium. He says Fortescue may further diversify its operations by investing in energy infrastructure projects. Meanwhile, Power expects Chinese demand for iron ore to remain strong, despite pending production cutbacks by some Chinese steel mills. He says demand may rise in regions of China that will not be affected by the production cuts during the winter months.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Tax hike widens split over Kalgoorlie Super-Pit value

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Original article by Danielle Bochove
The Australian Financial Review – Page: 18 : 27-Sep-17

Newmont Mining CEO Gary Goldberg has warned that an increase in Western Australia’s gold royalty would reduce the value of the Super Pit gold mine. Lack of consensus over the valuation of the mine has stalled negotiations for Newmont to buy Barrick Gold’s 50 per cent stake in the mine. Barrick president Kelvin Dushnisky says his company is willing to sell its stake at the right price. Newmont estimates that the royalty increase could increase its operating costs by about $US15m a year.

CORPORATES
NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION, NEWCREST MINING LIMITED – ASX NCM, GOLD FIELDS LIMITED, SHANDONG TYAN HOME COMPANY LIMITED, DENVER GOLD FORUM

Broken Hill boy leaves Rio in good shape

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 27-Sep-17

The impending retirement of Rio Tinto’s CFO Chris Lynch will leave Alf Barrios as the only member of the executive committee who was appointed before Jean-Sebastien ­Jacques became CEO in mid-2016. Rio Tinto recently advised that Lynch will step down in the next 12 months, and Lynch himself stresses that it was a personal decision to do so. Lynch, who was appointed CFO in 2013, says Rio Tinto is in "great shape", with a healthy balance sheet and cost structure. Its annual costs have been slashed by $US8.2bn since 2013.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, TRANSURBAN GROUP LIMITED – ASX TCL, ALUMINIUM CORPORATION OF CHINA LIMITED

BHP pledges improvements as chief’s pay rebounds 20pc

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 21-Sep-17

BHP Billiton CEO Andrew Mackenzie received a base salary of $US1.7m and total remuneration of $US7.1m ($A8.8m) in 2016-17, compared with $US5.9m previously. The resources group’s annual report also shows that recently-appointed chairman Ken MacKenzie will be paid $US880,000 in 2017-18, which is around eight per cent lower than predecessor Jac Nasser received in 2016-17. Meanwhile, MacKenzie has emphasised BHP’s commitment to shareholder engagement and capital management.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AMCOR LIMITED – ASX AMC, AUSTRALIAN FEDERAL POLICE

BHP clears the air on climate change disagreements

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Original article by Matt Chambers
The Australian – Page: 19 & 26 : 20-Sep-17

BHP Billiton executive Mike Henry says the resources group supports the recommendations of the Finkel Review, including the introduction of a Clean Energy Target. The head of BHP’s Australian minerals division adds that the company is of the view that reducing carbon emissions must be a key element of Australia’s energy policy, including the use of carbon capture and storage technology in coal-fired power generation. BHP’s position is at odds with that of the Minerals Council of Australia, which supports the construction of clean-coal power plants but without the use of carbon capture and storage solutions.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN COAL ASSOCIATION, AUSTRALIA-ISRAEL CHAMBER OF COMMERCE

Gold industry rallies against WA royalty hike

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

The Chamber of Minerals & Energy of Western Australia has launched a "grassroots" campaign against the State Government’s proposed increase in the gold royalty rate. Social media will be the initial focus of the campaign, although the CME has not ruled out extending it to include radio advertising. As part of the campaign, about 1,500 employers of gold mining companies have held a rally in Kalgoorlie. Meanwhile, Treasurer Ben Wyatt has downplayed the gold industry’s concerns about the potential impact of the royalty increase on the sector.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWMONT MINING CORPORATION, NEWCREST MINING LIMITED – ASX NCM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, GOLD FIELDS LIMITED, ANGLOGOLD ASHANTI LIMITED – ASX AGG, SILVER LAKE RESOURCES LIMITED – ASX SLR, AUSDRILL LIMITED – ASX ASL, MACMAHON HOLDINGS LIMITED – ASX MAH, DDH1 DRILLING PTY LTD, BYRNECUT AUSTRALIA PTY LTD, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, LIBERAL PARTY OF WESTERN AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY

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