B10 Exploration and Other Mining Support Services

Mine prospecting booms as explorers look past China dip

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Original article by Elouise Fowler
The Australian Financial Review – Page: 15 : 27-Mar-24

Data from advisory firm BDO Australias shows that resources companies in the pre-revenue stage spent a total of $1.01bn on exploration in the December quarter. This was the highest level of exploration expenditure in the final three months of a calendar year in the last decade. Meanwhile, exploration companies raised a total of $2.68bn from investors during the quarter, which is 32 per cent higher than the previous three months.

CORPORATES
BDO AUSTRALIA LIMITED

Fortescue expects China’s ore demand to stay strong

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Original article by Michael Smith
The Australian Financial Review – Page: 17 & 20 : 29-Mar-19

Fortescue Metals Group CEO Elizabeth Gaines says there are no indications that Chinese steel production is contracting. She adds that the general consensus of Fortescue’s iron ore customers in China is that growth in steel output will to slow to 3-4 per cent in 2019. This follows 12 per cent growth in 2018. Gaines has also indicated that China’s move to restrict Australian coal imports has had no impact on Fortescue’s iron ore shipments. The pure-play miner has resumed shipments from Port Hedland in the wake of Cyclone Veronica.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BOAO FORUM FOR ASIA, SHANGHAI BAOSTEEL GROUP CORPORATION, FORMOSA GROUP, VALE SA

Worley bulks up in $4.6bn US expansion

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Original article by Matt Chambers
The Australian – Page: 16 & 28 : 23-Oct-18

WorleyParsons will acquire the resources arms of US engineering firm Jacobs in a transaction valued at $4.6 billion. WorleyParsons CEO Andrew Wood says the deal, which is hoped to be completed in the first half of 2019, will create the world’s biggest provider of professional engineering services to the mining, oil and gas sectors. The transaction will see Jacobs acquire a stake of around 11 per cent in WorleyParsons, while Wood says he does not expect the deal to result in any major job losses across the two businesses.

CORPORATES
WORLEYPARSONS LIMITED – ASX WOR, JACOBS ENGINEERING GROUP INCORPORATED, DAR GROUP

Miners warn of graduate crisis

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 29-Aug-18

The Minerals Council of Australia has forecast that the number of mining engineering graduates will fall from 171 a year to just 47 between 2017 and 2020 due to a decline in enrolments. However, the MCA’s modelling suggests that at least 200 new graduates will be required each year to offset the number of mining engineers who exit the sector. South32 CEO Graham Kerr and Newcrest Mining CEO Sandeep Biswas are among the industry executives who have expressed concern about the long-term impact of the decline in enrolments for mining-related university courses.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, SOUTH32 LIMITED – ASX S32, NEWCREST MINING LIMITED – ASX NCM, DIGGERS AND DEALERS FORUM

Aurizon slams state competition watchdog for ignoring real world

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 16 : 14-Mar-18

Rail freight operator Aurizon Holdings has formally responded to the Queensland Competition Authority’s draft ruling on its coal rail network in the state. Aurizon estimates that the draft ruling, which was issued in December, could potentially reduce its coal haulage volumes by up to 20 million tonnes a year, and it has argued that the draft ruling has weighed upon its share price.

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, QUEENSLAND. COMPETITION AUTHORITY, PACIFIC NATIONAL PTY LTD, RBC CAPITAL MARKETS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, BM ALLIANCE COAL OPERATIONS PTY LTD, WESFARMERS LIMITED – ASX WES, HERBERT SMITH FREEHILLS PTY LTD, QUEENSLAND RESOURCES COUNCIL LIMITED

Seven takes Coates from Carlyle in lucky break

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Original article by Carrie LaFrenz, Tess Ingram
The Australian Financial Review – Page: 15 & 20 : 21-Sep-17

Diversified conglomerate Seven Group Holdings will assume full ownership of Coates Hire after securing a deal to buy The Carlyle Group’s stake. Shares in Seven Group closed 9.8 per cent higher at $A12.28 after the $A517m deal was announced on 20 September. Carlyle had considered listing Coates Hire on the sharemarket earlier in 2017, and Seven CEO Ryan Stokes has not ruled out an IPO for the equipment rental firm in the future. The proportion of Seven’s revenue that is derived from industrial services will rise to 70 per cent as a result of the deal.

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, COATES HIRE LIMITED, THE CARLYLE GROUP, CARLYLE ASIA PARTNERS LP, WESTRAC HOLDINGS PTY LTD

Seven remains upbeat on China despite exit

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 26 : 23-Aug-17

Listed conglomerate Seven Group Holdings has posted a 2016-17 net profit of $A44.5m, which is 77.4 per cent lower than previously. The result was marred by impairment charges associated with Seven West Media. Seven Group’s EBIT of $A333.3m was 10 per cent higher than previously, and the group forecasts EBIT growth of 5-10 per cent in 2017-18. Meanwhile, Seven has struck a $A540m deal to sell the Chinese division of its WesTrac heavy equipment business to Lei Shing Hong Machinery.

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, WESTRAC HOLDINGS PTY LTD, WESTRAC CHINA COMPANY LIMITED, LEI SHING HONG MACHINERY, CATERPILLAR, COATES HIRE LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, ORIGIN ENERGY LIMITED – ASX ORG, GOLDMAN SACHS AUSTRALIA PTY LTD

Giants join juniors in the hunt for minerals

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 24-Jul-17

Newcrest Mining has established a joint venture with Encounter Resources to explore for gold in Western Australia. The alliance is part of a growing trend for major global miners to enter joint venture arrangements with smaller Australian explorers. Encounter Mining MD Will Robinson says it is a cost-effective way for large miners to undertake greenfields exploration programs. He adds that more big miners are starting to ramp up their exploration in the wake of cutbacks following the downturn in the resources sector.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ENCOUNTER RESOURCES LIMITED – ASX ENR, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, RIO TINTO LIMITED – ASX RIO, ANGLOGOLD ASHANTI LIMITED – ASX AGG, ORINOCO GOLD LIMITED – ASX OGX

Australia’s miners don’t have innovation plan, says report

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 20-Jun-17

VCI’s latest "Innovation: State of Play" report has found that around 98 per cent of Australian mining professionals regard innovation as "important" or "critical" to their long-term business strategy. However, just 26 per cent said their company’s time-frame for innovation is at least three years. In contrast, 63 per cent of South African mining companies have a long-term focus on innovation. VCI’s founding partner Graeme Stanway says that, amongst other things, local mining companies need to stress the importance of innovation when engaging with investors.

CORPORATES
VCI, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Maintenance boom for resources

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 18 : 19-Dec-16

BIS Shrapnel forecasts that Australia’s resources sector will increase expenditure on maintenance work by 52 per cent over the next five years, to $A10bn. Adrian Hart of BIS says this will include both expenditure that has been deferred and spending on new assets. He adds that there could be some consolidation in the mining services sector as a result. The oil and gas sector is expected to account for the bulk of the increased expenditure on maintenance activity.

CORPORATES
BIS SHRAPNEL PTY LTD, PROGRAMMED MAINTENANCE SERVICES LIMITED – ASX PRG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, WORLEYPARSONS LIMITED – ASX WOR, MONADELPHOUS GROUP LIMITED – ASX MND, UGL LIMITED – ASX UGL, CIMIC GROUP LIMITED – ASX CIM, RIO TINTO LIMITED – ASX RIO