CAPITAL INVESTMENTS – AUSTRALIA

BHP may lift US oil investment

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Original article by Perry Williams
The Australian – Page: 15 : 10-Jan-19

BHP is tipped to make a final investment decision on an expansion of the Atlantis oil field in the Gulf of Mexico within months. BHP has a 44 per cent stake in the oil field, and speculation that it will proceed with the expansion has been heightened after joint venture partner BP approved the third stage of the project. BP is now the biggest producer of oil in the Gulf of Mexico, with output of 300,000 barrels per day.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC, PEMEX PETROLEOS MEXICANOS

Manufacturing, mining to power capex rebound

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Original article by John Kehoe
The Australian Financial Review – Page: 6 : 30-Nov-18

Data from the Australian Bureau of Statistics shows that capital expenditure in the private sector is now expected to top $114.1bn in 2018-19, compared with a previous forecast of $102bn. The mining and manufacturing sectors are tipped to be the key drivers of the upturn in capital expenditure. Meanwhile, the figures show that private sector capex fell by 0.5 per cent in the September quarter, primarily due to lower expenditure in the mining sector.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, JP MORGAN SECURITIES AUSTRALIA LIMITED, TD SECURITIES, COMMONWEALTH SECURITIES LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

BHP weighs options in pursuit of growth

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Original article by Paul Garvey
The Australian – Page: 20 : 22-Nov-18

BHP’s CFO Peter Beaven has told investors that the resources group has made changes to its capital allocation policy over the last five years, after several ill-fated investments. He added that BHP is ready to start investing again and stressed the need to ensure a balance between over-investing and under-investing, as both can destroy shareholder value. Beaven also indicated that BHP is looking at a number of growth options for its existing portfolio.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE

Worrying sign investment has peaked

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Original article by Patrick Commins
The Australian Financial Review – Page: 8 : 31-Aug-18

The Australian Bureau of Statistics has reported that business investment fell by 2.5 per cent in the June quarter; economists had been tipping an increase of 0.6 per cent. Mining sector spending was down 7.2 per cent over the quarter, while non-mining investment declined by 0.5 per cent. However, companies increased their business investment forecast for 2018-19 to just under $102 billion, an increase of 16.1 per cent on the last forecast three months ago.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CAPITAL ECONOMICS LIMITED, TD SECURITIES, AMP LIMITED – ASX AMP, LIBERAL PARTY OF AUSTRALIA, BIS OXFORD ECONOMICS PTY LTD

Bottled-up investment plans freed

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Original article by James Thomson
The Australian Financial Review – Page: 36 : 22-Jun-18

Australian mining companies are capitalising on factors such as rising commodity prices and strong balance sheets to ramp up investment. BHP Billiton and Fortescue Metals Group recently announced plans for new iron ore mines in the Pilbara, while South32 has struck a deal to acquire Arizona Mining. However, much of the new investment is intended to replace projects that are nearing the end of their mine life, while miners are also pursuing growth plans that were put on hold following the end of the mining boom.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, ARIZONA MINING INCORPORATED, RIO TINTO LIMITED – ASX RIO, ATLAS IRON LIMITED – ASX AGO, OZ MINERALS LIMITED – ASX OZL, PEMBROKE RESOURCES PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, EMR CAPITAL PTY LTD, PT ADARO ENERGY TBK, GLENCORE PLC

Stand-alone Coles to turn up dial on capex

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 8-Jun-18

Coles has indicated plans to boost capital expenditure after it is demerged from Wesfarmers, in part because the food and liquor retailer needs to refurbish stores. Coles may need to raise capital in order to finance its expenditure plans, depending on the amount of debt that Wesfarmers decides to leave it with. Coles MD John Durkan says he anticipates that the total Australian grocery market will grow by around three per cent a year.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, METCASH LIMITED – ASX MTS, WAVESTONE CAPITAL PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, AMAZON.COM INCORPORATED, BUNNINGS GROUP LIMITED

Tax cut will lift wages: CEOs’ push

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 22-Mar-18

Ten of the nation’s largest companies have committed to increasing their investment in Australia if the Federal Government progressively reduces the corporate tax rate from 30 per cent to 25 per cent. They argue that increased investment will in turn result in the creation of more jobs and ultimately boost wages. Meanwhile, independent senator Steve Martin has agreed to support the Enterprise Tax Plan Bill, although fellow independent Tim Storer has yet to decide his position. The Government requires the support of nine Senate crossbenchers.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, ENERGYAUSTRALIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ORIGIN ENERGY LIMITED – ASX ORG, MYOB GROUP LIMITED – ASX MYO, JBS AUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

Renewables must be low-cost, says Adani local executive

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 15-Mar-18

India-based Adani will start generating renewable energy in Australia later in 2018, when the first stage of its Rugby Run solar farm in Queensland begins operating. It is part of a push by the coal miner to have 1,500 megawatts of renewable energy capacity in Australia by 2022. Adani has indicated that it could invest in other renewables in Australia, such as pumped hydro and wind power, while it may also invest in renewable energy production in Western Australia. Rugby Run has a long-term supply contract with Alinta Energy.

CORPORATES
ADANI ENTERPRISES LIMITED, ADANI MINING PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ

Cut tax, funds will flow: BHP

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Original article by Matt Chambers, Andrew White
The Australian – Page: 1 & 2 : 7-Mar-18

BHP Billiton CEO Andrew Mackenzie argues that Australia cannot afford to not reduce its company tax rate. He says BHP would commence some proposed resources projects in Australia within months of federal parliament passing an across-the-board company tax cut, adding that at least some of these projects are dependent on tax reform. Meanwhile, economic modelling by KPMG suggests that Australia’s GDP will be reduced by around $A5bn if the nation does not respond to the Trump administration’s tax cuts with similar reforms. About 25,000 jobs would also be at risk, according to KPMG.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KPMG AUSTRALIA PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, THE GOLDMAN SACHS GROUP INCORPORATED, BLUESCOPE STEEL LIMITED – ASX BSL, SHELL COMPANY OF AUSTRALIA LIMITED

Rinehart warns of collapse in investment

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Original article by Brad Thompson
The Australian Financial Review – Page: 3 : 14-Nov-17

Mining magnate Gina Rinehart has expressed concern that the compliance burden and excessive bureaucracy pose a major threat to future investment in Australia’s mining industry and other sectors of the economy. She has called for an overhaul of the nation’s three levels of government, arguing that there is too much duplication of red tape at federal, state and local council level. Rinehart has also urged greater support for National Mining and Related Industries Day, noting that it does not receive the same amount of recognition as National Agriculture Day.

CORPORATES
HANCOCK PROSPECTING PTY LTD, NATIONAL FARMERS’ FEDERATION LIMITED, FAIRFAX AGRICULTURAL MEDIA