B08 Metal Ore Mining

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

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