B08 Metal Ore Mining

Survey skewers BHP as activists eye ‘major’ board changes

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Original article by Peter Ker, Matthew Stevens
The Australian Financial Review – Page: 15 : 7-Jun-17

A survey carried out by Global Proxy Solicitation has found that nearly 48 per cent of BHP Billiton’s retail shareholders agree that a restructuring of the resources group is needed. In contrast, only 15.33 per cent oppose Elliott Associates’ push for a restructuring. Meanwhile, more than 36 per cent of respondents said BHP CEO Andrew Mackenzie has dealt with the activist hedge fund effectively. Global Proxy Solicitation had identified BHP as a potential target for activist investors in a report that was released in November 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, GLOBAL PROXY SOLICITATION PTY LTD, MORROW SODALI GLOBAL LLC, TRIBECA INVESTMENT PARTNERS PTY LTD, RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION

Whyalla steel mill rescue a step closer

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Original article by Matt Chambers
The Australian – Page: 21 : 2-Jun-17

Administrator KordaMentha hopes to finalise the sale of steel producer and iron ore miner Arrium by the end of June. The two final bidders, GFG Alliance and a consortium headed by private equity firm Newlake Alliance, will seek approval from the Foreign Investment Review Board. GFG comprises Liberty House and SIMEC, which are controlled by British businessman Sanjeev Gupta. Arrium collapsed in April 2016 with debts of $A4bn.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, GFG ALLIANCE, LIBERTY HOUSE GROUP, SIMEC GROUP LIMITED, NEWLAKE ALLIANCE, BHP BILLITON LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, POSCO, ADANI MINING PTY LTD, THE BLACKSTONE GROUP LP, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

BHP, Rio face fresh tax threat

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 1 & 10 : 29-May-17

The Western Australian Government may seek to have BHP Billiton and Rio Tinto pay their iron ore production levies upfront for a number of years, as part of its strategy to address the state’s rising debt and Budget deficit. Premier Mark McGowan says buying out the lease rental fee of $A0.25 per tonne is one of the options under consideration. Peter Strachan of StockAnalysis questions whether BHP and Rio Tinto would agree to such a deal, given the difficulty of forecasting their annual production rates over the long-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NATIONAL PARTY OF AUSTRALIA, STOCK ANALYSIS AUSTRALASIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, AUSTRALIAN LABOR PARTY

China’s call for higher grade iron ore a worry

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 23-May-17

Research by UBS shows that the break-even cost for producers of lower-grade iron ore has increased due to the widening spread between such iron ore and the benchmark index price. As a result, the break-even cost for Fortescue Metals Group has risen by $US13 per tonne to $US43 in the last 12 months. Fortescue is likely to be affected by Chinese steel mills’ growing demand for higher-quality iron ore as less efficient mills are closed down.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Billiton buried in BHP makeover

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Original article by Matt Chambers
The Australian – Page: 1 & 2 : 15-May-17

BHP Billiton will launch a new advertising campaign which emphasises its heritage as an Australian company that was founded in Broken Hill. The $A10m print and TV advertising campaign was developed in response to concern that people are losing trust in large companies. The Samarco tailings dam disaster in Brazil in November 2015 was also a catalyst for the new ad campaign, which uses the slogan "Think big" and refers to the company solely as BHP. It intends to drop Billiton from its name.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BIG RED COMMUNICATIONS GROUP PTY LTD, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIA. DEPT OF THE TREASURY

Fortescue refinances to fortify its books

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Original article by Paul Garvey
The Australian – Page: 42 : 10-May-17

Fortescue Metals Group has raised $US1bn ($1.36bn) via the issuance of five- and seven-year bonds. It was the pure-play iron ore miner’s first foray into the bond market for more than two years, and the proceeds will be used to repay some $A976m worth of debt that is due in 2019. Fortescue’s remaining debt will not have to be repaid until at least 2022. Its total debt has fallen below $US4bn, compared with a peak of $US10.7bn.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGONAUT SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

China’s iron ore imports slump 13pc

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Original article by Angus Grigg
The Australian Financial Review – Page: 10 : 9-May-17

China’s iron ore imports fell by 13 per cent in April 2017, according to figures released on 8 May. Australia supplies around 65 per cent of China’s iron ore, and Xu Xiangchun of MySteel said the fall in April could in part be attributed to poor weather in Australia in March. China’s iron ore stockpiles rose to a record 135 million tonnes in the week ending 5 May, while steel production for the March quarter rose 4.6 per cent to 201.1 million tonnes.

CORPORATES
MYSTEEL.COM LIMITED, CHINA. GENERAL ADMINISTRATION OF CUSTOMS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Argus slams Elliott bid to overhaul BHP

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 5-May-17

Australian businessman and former BHP Billiton chairman Don Argus says the conditions imposed on the company to gain government approval for its 2001 merger will thwart Elliott Management’s push to scrap the dual listing. BHP itself has suggested that the activist hedge fund’s proposal is unlikely to gain regulatory approval, while Treasurer Scott Morrison has signalled that unwinding the dual listing would not be in the national interest. Meanwhile, Rio Tinto chairman Jan du Plessis says his company has considered and rejected abolishing its own dual-listed structure on a number of occasions.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, RIO TINTO LIMITED – ASX RIO, ARNHEM INVESTMENT MANAGEMENT PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Fund urges BHP board overhaul

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 14 : 5-May-17

The Tribeca Global Natural Resources Fund has outlined a four-point plan for BHP Billiton. Tribeca says BHP should use the retirement of chairman Jac Nasser to pursue boardroom renewal. It argues that the current board has overseen the loss of some $US30bn of shareholder wealth, adding that this could have topped $US80bn if more mergers and acquisitions had gone ahead. Tribeca favours retention of BHP’s dual listing, although it supports Elliott Associates’ proposal for BHP to offload its US onshore petroleum assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, TRIBECA GLOBAL NATURAL RESOURCES FUND, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, TRIBECA INVESTMENT PARTNERS PTY LTD

Moody’s deals blow to Elliott BHP plan

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 4-May-17

Moody’s Investors Service has upgraded BHP Billiton’s "A3" credit rating outlook from "stable" to "positive". The ratings agency has cited factors such as BHP’s prospects for further growth in earnings and free cashflow due to the continued strength of commodity prices. However, Moody’s adds that the restructuring proposals of activist hedge fund Elliott Management could adversely affect BHP’s credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MOODY’S INVESTORS SERVICE INCORPORATED, ELLIOTT MANAGEMENT CORPORATION, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP