B08 Metal Ore Mining

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

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

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 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

Atlas shelves Corunna project

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Original article by Paul Garvey
The Australian – Page: 20 : 22-Jun-17

Atlas Iron will increase production at its Mount Webber iron ore project by two million tonnes a year after putting its Corunna Downs project on hold. The iron ore price has fallen by about 40 per cent since Atlas approved Corunna Downs in early 2017. MD Cliff Lawrenson says it is still an important project for Atlas, and it will resume development of Corunna Downs when the iron ore price rebounds. Production at the company’s Abydos mine will end in October.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HARTLEYS LIMITED

Support for BHP relisting ‘at right price’

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 20-Jun-17

Aberdeen Asset Management’s Andrew Preston says scrapping BHP Billiton’s dual-listing structure in favour of a single Australian listing may be the best option. He adds that the cost of such a restructuring would be a key consideration, but argues that many of BHP’s non-Australian assets have been divested since the dual listing was established. Preston also notes that the issue of franking credits, which are of no value to investors in BHP’s London-listed shares, would also have to be considered.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ABERDEEN ASSET MANAGEMENT LIMITED, ELLIOTT MANAGEMENT CORPORATION, AMCOR LIMITED – ASX AMC, AMP CAPITAL INVESTORS LIMITED, AUSTRALIA. DEPT OF THE TREASURY

MacKenzie the hot favourite as BHP votes for new chair

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Original article by John Durie
The Australian – Page: 18 & 32 : 16-Jun-17

There is widespread support among BHP Billiton shareholders for Ken MacKenzie to become its next chairman. Amcor’s return on capital rose strongly during his tenure as CEO, and he was not on the BHP board when it made ill-fated investments in the US shale sector. However, the selection of a new chairman ultimately rests with the BHP board, which could potentially opt against MacKenzie in order to avoid suggestions that it was swayed by investors.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AMCOR LIMITED – ASX AMC, ELLIOTT MANAGEMENT CORPORATION, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC, RIO TINTO LIMITED – ASX RIO, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, VODAFONE AUSTRALIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, FEDERAL COURT OF AUSTRALIA, AMAZON.COM INCORPORATED, AUSTRALIA POST, AUSTRALIA. DEPT OF THE TREASURY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY

Elliott push to overhaul BHP’s board

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Original article by Paul Garvey
The Australian – Page: 20 : 15-Jun-17

BHP Billiton will shortly select a successor to chairman Jac Nasser, but Elliott Management says the resources group should use the leadership change to undertake sweeping changes to its board. The activist hedge fund argues that many directors have been the board for a long time and approved acquisitions and share buybacks that have contributed to BHP’s underperformance. There is support among BHP shareholders for Elliott’s proposal to divest its petroleum assets, although some of the hedge fund’s other proposals have gained little traction.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AMP CAPITAL INVESTORS LIMITED, AMCOR LIMITED – ASX AMC, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC