B08 Metal Ore Mining

BHP chair under pressure to demerge oil assets

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Original article by David Rogers
The Australian – Page: 31 : 7-Jul-17

Paul Gait of Bernstein notes that BHP Billiton has underperformed since it spun off South32, and he says demerging its petroleum division would boost the value of its core mining business. Meanwhile, Paul Young of Deutsche Bank says BHP should revise its strategy under incoming chairman Ken MacKenzie, including putting a limit on capital expenditure and setting productivity targets for its iron ore and coking coal operations. Shares in BHP have shed 1.5 per cent so far in 2017, while Rio Tinto has gained 7.5 per cent.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, DEUTSCHE BANK AG, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, ELLIOTT MANAGEMENT CORPORATION

Iron ore dive hits revenue expectations

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 7-Jul-17

Australia’s revenue from resource and energy exports will peak at $A205bn in 2016-17, according to revised forecasts from the Department of Industry, Innovation & ­Science. This is 4.6 per cent lower than it had forecast earlier in 2017, and the new forecast takes into account a sharp fall in the iron ore price in recent months. The department is bearish about the outlook for the steel input, forecasting that the benchmark price will fall to $US48 per tonne in 2018 and $US47 in 2019. It also anticipates a fall in the price of coking coal.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIAN BUREAU OF STATISTICS

Fortescue tipped to hit export guidance

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 6-Jul-17

Fortescue Metals Group had forecast that it would export about 170 million tonnes of iron ore in 2016-17. Analysts expect its export volumes to be at the higher of its guidance, although its exports for the June quarter will need to be around 44 million tonnes. BHP Billiton’s iron ore shipments for the year are also expected to be at the higher end of its guidance. Meanwhile, Peter O’Connor of Shaw & Partners expects the iron ore price to retreat to around $US50 per tonne in the second half of 2017.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, ROY HILL HOLDINGS PTY LTD

Mega uranium mine runs into legal hurdle

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 5-Jul-17

The Conservation Council of Western Australia will pursue legal action in a bid to overturn environmental approval for the Yeelirrie uranium mine. The former Liberal government approved the project prior to the 2017 state election, but the CCWA will argue that this approval may be legally invalid. There are concerns that Cameco’s Yeelirrie project may threaten a species of stygofauna. However, the low price of uranium may be the biggest deterrent to Cameco proceeding with the project in the near-term.

CORPORATES
CONSERVATION COUNCIL OF WESTERN AUSTRALIA INCORPORATED, CAMECO CORPORATION, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIAN LABOR PARTY, PALADIN ENERGY LIMITED – ASX PDN, KPMG AUSTRALIA PTY LTD, CHINA NATIONAL NUCLEAR CORPORATION, WESTERN AUSTRALIA. DEPT OF ENVIRONMENT AND CONSERVATION, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY

Former uranium market darling calls in administrators

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 4-Jul-17

Australian-listed Paladin Energy will seek a restructuring or recapitalisation after appointing administrators from KPMG. The move follows Paladin’s failure to secure a deal with Electricite de France to extend the deadline to repay $US200m plus interest of $US77m, which fell due on 10 July. The prepayment related to a long-term uranium supply contract, and the French utility rejected a proposed standstill agreement which would have given the debt-laden Paladin more time to pay.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ELECTRICITE DE FRANCE, KPMG AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, CHINA NATIONAL NUCLEAR CORPORATION

Flower power: state blocks iron ore projects

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Original article by Paul Garvey
The Australian – Page: 27 : 29-Jun-17

Minerals Resources remains hopeful that its J5-Bungalbin East iron ore project will be approved by Western Australia’s Environment Minster, Stephen Dawson. The state’s Environmental Protection Authority has recommended that both J5-Bungalbin East and Sinosteel’s Blue Hills project should be blocked, citing their likely impact on rare wildflowers and microscopic subterranean prawns. The Wilderness Society notes that the EPA has ruled against the projects twice in the last two years.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, SINOSTEEL CORPORATION, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, WESTERN AUSTRALIA. DEPT OF ENVIRONMENT AND CONSERVATION, THE WILDERNESS SOCIETY WA INCORPORATED, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED

Fortescue confident of even more cost cutting

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 29-Jun-17

Iron ore miner Fortescue Metals Group aims to achieve a "C1" unit cost of production of between $US12 and $US13 per tonne in 2016-17, compared with $U50/tonne several years ago. Greg Lilleyman, Fortescue’s director of operations, is confident that the company can further reduce its costs. While he acknowledges that it will be hard to match its recent cost performance in coming years, he says there are still opportunities for more cost savings. Lilleyman also expects the price discount of lower-grade iron compared with the benchmark price to narrow.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO

Fortescue conveyor belts to lower costs

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 28-Jun-17

The introduction of self-driving haulage trucks has increased productivity at Fortescue Metals Group’s Solomon mining hub by about 20 per cent since 2012. The pure-pure iron ore miner has 56 autonomous trucks at Solomon, with plans to convert another 12. Fortescue will also begin converting 100 trucks at its Chichester hub in fiscal 2018. It also intends to undertake a trial of relocatable overland conveyor belt technology at the Cloudbreak mine, which could allow its fleet of haulage trucks to be reduced.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, VALE SA, BHP BILLITON LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED

BHP puts pedal to metal for South Flank mine plan

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 31 : 27-Jun-17

BHP Billiton has signalled that it is likely to make a final investment decision on its South Flank iron ore project in Western Australia by mid-2018. BHP has allocated $US184m in initial funding for the project, which is forecast to cost between $US2.4bn and $US3.2bn to develop. South Flank is BHP’s preferred option to replace the Yandi iron ore mine, which produces 80 million tonnes a year but is approaching the end of its mine life.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NATIONAL PARTY OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Timely break for Atlas, MinRes

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Original article by Paul Garvey
The Australian – Page: 31 : 23-Jun-17

A six-month extension of the discount on the fees paid by mining companies to use Port Hedland’s Utah Point berth will result in cost savings of about $A12.5m for both Atlas Iron and Mineral Resources. The discount of $A2.50 per tonne had been slated to end in June. However, BHP Billiton faces increased costs of about $A9m a year after the Western Australian Government announced that fees at most ports in the Pilbara will increase. The cost to Rio Tinto and Fortescue Metals Group will be around $A13m and $A6.8m respectively.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. DEPT OF TRANSPORT, NATIONAL PARTY OF AUSTRALIA