IRON MINES AND MINING – AUSTRALIA

Small miners in danger zone

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Original article by Patrick Begley, Max Mason, Tess Ingram
The Australian Financial Review – Page: 19 : 9-Apr-15

Iron ore was trading at $US48.06 per tonne on 8 April 2015, prompting analysts to warn that more smaller Australian-listed producers will come under pressure. Anna Kassianos of Platypus Asset Management says many smaller players are in "desperation mode", but notes that global iron ore supply would not be unduly affected by their collapse. Tim Schroeders of Pengana Capital believes that Fortescue Metals Group can ride out the slump in the iron ore price

CORPORATES
PLATYPUS ASSET MANAGEMENT PTY LTD, PENGANA CAPITAL LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, GINDALBIE METALS LIMITED – ASX GBG, MOUNT GIBSON IRON LIMITED – ASX MGX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ARRIUM LIMITED – ASX ARI, MINERAL DEPOSITS LIMITED – ASX MDL, ALLAN GRAY AUSTRALIA PTY LTD, GRANGE RESOURCES LIMITED – ASX GRR, KATANA ASSET MANAGEMENT LIMITED, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, WATPAC LIMITED – ASX WTP

Will iron ore plunge below $US50

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Original article by Amanda Saunders
The Australian Financial Review – Page: 38 : 2-Apr-15

The iron ore price fell to around $US51 per tonne on 1 April 2015, compared with $US68 at the beginning of the year. However, Rio Tinto and BHP Billiton plan to keep ramping up production, and Glyn Lawcock of UBS says the price would have to fall to about $US30 for their iron ore operations to become unprofitable. Westpac expects the iron ore price to test the $US47 level in 2015

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, ROY HILL HOLDINGS PTY LTD

China iron ore demand to fall

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Original article by Angus Grigg, Jacob Greber
The Australian Financial Review – Page: 8 : 11-Mar-15

Former Bureau of Resource & Energy Economics CEO Quentin Grafton notes that major iron ore producers have forecast that Australia’s exports to China will peak in the 2020s. However, he believes that Chinese shipments could be reaching their peak now. J Capital Research MD Tim Murray also suggests that Australian iron ore exports may be approaching their peak, and forecasts that a fall in volumes of up to 10 per cent in 2015

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE. BUREAU OF RESOURCES AND ENERGY ECONOMICS, J CAPITAL RESEARCH COMPANY LIMITED, RIO TINTO LIMITED – ASX RIO, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT, CHINA. GENERAL ADMINISTRATION OF CUSTOMS, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE, MYSTEEL.COM LIMITED

More miners steeled for failure

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 11-Feb-15

The iron ore price has fallen by 14 per cent so far in 2015, and it was trading at $US61.20 per tonne on 10 February. Andrew Hodge of consulting firm Wood Mackenzie warns that the Koolyanobbing, Carina and Savage River iron ore mines in Australia could potentially be closed if the price remains at around its current level. Wood Mackenzie forecasts that iron ore will average $US70 per tonne in 2015

CORPORATES
WOOD MACKENZIE, ARRIUM LIMITED – ASX ARI, CLIFFS NATURAL RESOURCES INCORPORATED, MINERAL RESOURCES LIMITED – ASX MIN, GRANGE RESOURCES LIMITED – ASX GRR, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE. BUREAU OF RESOURCES AND ENERGY ECONOMICS

Citi, ANZ price forecast grim for high-cost iron ore

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Original article by Amanda Saunders
The Australian Financial Review – Page: 28 : 12-Nov-14

The ANZ Bank’s Mark Pervan doubts that the iron ore price will return to $US100 per tonne, and forecasts that the steel input will trade at $US78/tonne in 2015. Citigroup expects the iron ore price to trade at $US65/tonne in 2015 and 2016. The firm has downgraded its recommendation on Atlas Iron and Mount Gibson Iron stock from "neutral" to "sell", and Fortescue Metals Group has been downgraded from "buy" to "neutral"

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CITIGROUP PTY LTD, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP

Iron price not going anywhere, says BHP

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Original article by Amanda Saunders
The Australian Financial Review – Page: 11 & 16 : 20-Oct-14

The iron ore price is currently trading at around $US83 per tonne. Mike Henry of BHP Billiton says the price could briefly rise above $US100/tonne, but he does not expect such a price to be maintained in the long-term. Henry has justified BHP’s decision to ramp up iron ore production, arguing that if it did not then another miner would do so in Australia or elsewhere. Rio Tinto and Fortescue Metals Group are also increasing their output

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Marubeni: rock bottom picked for iron ore price

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Original article by Peter Ker, Max Mason, Scott Parker
The Australian Financial Review – Page: 13 & 21 : 15-Oct-14

The benchmark iron ore price rose by 4.9 per cent to $US84.17 per tonne on 14 October 2014, clawing back some its losses of recent weeks. Marubeni Corporation’s Shinji Kawai expects the iron ore price to rise in 2015, although he anticipates that it will remain below $US100/tonne. Japan-based Marubeni holds a 15 per cent stake in Hancock Prospecting’s Roy Hill iron ore project. The group also holds stakes in coal mines owned by Rio Tinto, Anglo American and Glencore

CORPORATES
MARUBENI CORPORATION, HANCOCK PROSPECTING PTY LTD, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MOUNT GIBSON IRON LIMITED – ASX MGX, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, POSCO, CHINA STEEL CORPORATION, CHINA. NATIONAL BUREAU OF STATISTICS, UBS HOLDINGS PTY LTD, VALE SA, CITIBANK PTY LTD

Rio’s high iron ore volume fends off rivals, says Harding

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 10-Oct-14

Rio Tinto plans to ramp up its iron ore output from around 295 million tonnes per year to 360 million tonnes, despite the recent sharp decline in the price of the steel input. Andrew Harding, the head of Rio’s iron ore division, says the iron ore price would rally in the short-term if his company shelved its expansion strategy. However, he argues that some 32 iron ore projects worldwide would go ahead in the wake of such a decision by Rio, which would ultimately affect the long-term price of iron ore

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

BHP’s big cost crusher

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 18 : 7-Oct-14

BHP Billiton will invest nearly $A2bn to increase its iron ore exports from 225 million tonnes in 2014-15 to 290 million tonnes by mid-2017. The resources giant aims to reduce its cost per tonne to less than $A20, and it will seek to displace Rio Tinto as the lowest-cost iron ore exporter to China. In 2013 Rio Tinto unveiled a strategy to increase its iron ore exports to around 330 million tonnes, eventually rising to 360 million

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, PENGANA CAPITAL LIMITED

Arrium plunge in wake of raising

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 19 : 19-Sep-14

The share price of steel and iron ore miner Arrium fell on 18 September 2014 after its capital raising. The company wanted to raise $A754 million. However, only 79 per cent of institutional shareholders participated, raising $A465 million. Arrium’s stock dropped by $A0.0165 to a record low of $A0.40

CORPORATES
ARRIUM LIMITED – ASX ARI, BHP BILLITON LIMITED – ASX BHP, ALLAN GRAY AUSTRALIA PTY LTD