B08 Metal Ore Mining

BHP slip-up to provide more ammo for Elliott

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Jul-17

BHP Billiton has restated its 2016 financial accounts after conceding that there were problems with the processes it had used to determine the impairment charges on US shale assets. Ross Illingworth, the executive director of Kingfisher Capital Partners, says the admission will strengthen Elliott Management’s case for a restructuring at BHP. Meanwhile, Elliott has likened BHP’s proposal to develop the Jansen potash project in Canada to its ill-fated foray into US shale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KINGFISHER CAPITAL PARNERS, ELLIOTT MANAGEMENT CORPORATION

Unseasonal iron ore rally boosts budget

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Original article by Peter Ker
The Australian Financial Review – Page: 10 : 21-Jul-17

The iron ore price peaked at a three-month high above $US70 a tonne on 20 July. The price of the steel input has risen by 31 per cent in just over a month, and it has averaged $US65.12 a tonne since the start of July. Paul Bloxham of HSBC estimates that this will increase the Australian Government’s revenue by about $US1.25bn in 2017-18. The May 2017 Budget had forecast that iron ore would average $US55 a tonne in 2017-18. Bloxham expects the iron ore price to fall to around $US50 a tonne by late 2017.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD

Ore lift backs BHP ‘surprise’ on dividend

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Original article by Matt Chambers
The Australian – Page: 19 : 20-Jul-17

Citigroup expects BHP Billiton to post an underlying profit of $US6.76bn for 2016-17, compared with $US1.22bn previously. BHP’s activities report for the June 2017 quarter shows that it produced 268 million tonnes of iron ore in Western Australia during 2016-17, while copper output at the Olympic Dam mine in South Australia fell 16 per cent to 166,000 tonnes. Strike action at the Escondida copper mine in Chile resulted in annual output falling to 772,000 tonnes, but output of up to 1.23 million tonnes is expected in 2017-18.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CITIGROUP PTY LTD, MINERA ESCONDIDA LIMITADA, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED

Activist Elliott targets BHP retail shareholders

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Original article by Leo Shanahan
The Australian – Page: 19 : 19-Jul-17

US-based hedged fund Elliott Management is seeking the support of BHP Billiton’s retail investors for its proposed restructuring strategy for the resources giant. Elliott has also launched a revised website pitched at institutional investors. The activist hedge fund has accused BHP’s management of being responsible for the loss of some $US40bn ($A51bn) of shareholder wealth due to poor decisions. Elliott’s proposed reforms include scrapping BHP’s dual listing structure.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIA. DEPT OF THE TREASURY

Rio lowers iron ore production guidance

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Original article by Paul Garvey
The Australian – Page: 19 : 19-Jul-17

Rio Tinto has advised that its iron ore output in the Pilbara is now likely to be about 330 million tonnes in calendar 2017, compared with previous guidance of between 330 million and 340 million tonnes. It has cited factors such as inclement weather and rail maintenance work for the revised production forecast. Rio Tinto’s Pilbara iron ore shipments totalled 154.3 million tonnes in the first half. Meanwhile, Citigroup expects Rio Tinto’s full-year dividend to rise from $US1.70 per share in 2016 to $US2.42 in 2017.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, COAL AND ALLIED INDUSTRIES LIMITED, YANCOAL AUSTRALIA LIMITED – ASX YAL, GOLDMAN SACHS AUSTRALIA PTY LTD

Twiggy changes his tune as Fortescue plans for iron boost

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 18-Jul-17

Planning documents show that Fortescue Metals Group proposes to commence construction work on its Eliwana iron ore mine in the Pilbara in mid-2019, with production slated to commence in 2020 if the project proceeds. The mine would have a maximum production capacity of 50 million tonnes per year, although Fortescue expects annual output of around 30 million tonnes. Fortescue is also considering the Nyidinghu deposit to replace the Firetail mine, which has annual capacity of around 27 million tonnes.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

BHP investors back Elliott on shale, listings

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Original article by Peter KerJames Thomson
The Australian Financial Review – Page: 13 & 18 : 17-Jul-17

Representatives of Elliott Management have met with BHP Billiton’s institutional shareholders in Australia, as the activist US hedge fund continues to push for a restructuring of the resources group. Australian Foundation Investment Company MD Ross Barker notes that Elliott has drawn attention to BHP’s long-term underperformance, while Matthew Haupt of Wilson Asset Management has welcomed the "constructive debate" on the best use of BHP’s funds. Barker adds that AFIC supports abolishing BHP’s dual-listing structure and the sale of the group’s US shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHPELLIOTT MANAGEMENT CORPORATIONAUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFIWILSON ASSET MANAGEMENTWAM LEADERS LIMITED – ASX WLEABERDEEN ASSET MANAGEMENT LIMITEDARGO INVESTMENTS LIMITED – ASX ARGBT INVESTMENT MANAGEMENT LIMITED – ASX BTTTRIBECA INVESTMENT PARTNERS PTY LTDRIO TINTO LIMITED – ASX RIO

Miners urge cost assessment in carbon-neutral goal

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Original article by Matt Chambers
The Australian – Page: 20 : 13-Jul-17

Queensland Resources Council CEO Ian Macfarlane has questioned whether a target of 2050 for the state to become carbon neutral is achievable. He says the target is "very ambitious" given that the state boasts high-intensity industries such as LNG and alumina production. He has urged the State Government to take into account the cost of the push for carbon neutrality. Macfarlane and the Australian Petroleum Production & Exploration Association’s Rhys Turner have both called for a national approach to reducing carbon emissions.

CORPORATES
QUEENSLAND RESOURCES COUNCIL LIMITED, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Miner may cut iron ore guidance: UBS

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 11-Jul-17

UBS estimates that Rio Tinto’s Western Australian iron ore exports fell by nearly eight per cent month-on-month in June 2017, to 24.8 million tonnes. The firm also estimates that Rio Tinto’s iron ore export volumes for the first half of 2017 totalled 154 million tonnes, which puts it well below the full-year target of 330 to 340 million tonnes. As a result, UBS suggests that Rio Tinto may scale back its full-year guidance when its production results for the second quarter are released in mid-July.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, BLOOMBERG LP, VALE SA

Analysts trim commodity forecasts, examine mining

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Original article by Myriam Robin
The Australian Financial Review – Page: 20 : 10-Jul-17

The iron ore price was trading above $US62 per tonne on 7 July 2017, but the latest forecasts from Australia’s Department of Industry, Innovation & Science suggest that it could test $US48 by 2018. The Department says the price of copper could fall by 4.1 per cent in 2018, while it expects metallurgical coal to fall by 28 per cent to $US137 a tonne in 2018. Capital Economics also forecasts that the iron ore price will fall, and UBS has downgraded its forecast for the copper price in 2017-18.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, CAPITAL ECONOMICS LIMITED, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, T ROWE PRICE GROUP INCORPORATED