B08 Metal Ore Mining

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

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