IRON MINES AND MINING – BRAZIL

Vale to fight decision to freeze assets

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Original article by Barry FitzGerald
The Australian – Page: 14 : 22-Dec-15

Brazilian miner Vale intends to mount a legal challenge to a court’s decision to freeze its Samarco iron ore assets. The Samarco project is jointly owned by Vale and BHP Billiton. A Brazilian judge has ruled that they may be liable for the tailings dam disaster, as project operator Samarco Mineracao lacks sufficient funds to finance environmental remediation and compensate victims of the tragedy. The Samarco stake is BHP’s sole asset in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

BHP assets frozen as dam pressure rises

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Original article by Eric Johnston
The Australian – Page: 15 : 21-Dec-15

A spokesman for BHP Billiton has declined to comment on a court’s decision to freeze the Brazilian assets of both itself and Vale in the wake of the tailings dam disaster at the Samarco iron ore joint venture. Vale had claimed that Samarco should be fully liable for any damages arising from the disaster, but the court ruled that Samarco lacks sufficient funds to meet all claims associated with the incident. Meanwhile, the future of BHP’s progressive dividend policy remains under scrutiny, while Moody’s is reviewing its credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, MOODY’S INVESTORS SERVICE INCORPORATED, GLENCORE PLC

Vale target in US suit over dam disaster

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Original article by John Kehoe
The Australian Financial Review – Page: 11 & 16 : 10-Dec-15

The American depository receipts of Brazilian miner Vale have shed 32.5 per cent since the tailings dam failure at the Samarco iron ore joint venture. Investors who bought Vale’s shares between 21 March and 30 November 2015 will be eligible to participate in a class action launched by Bronstein, Gewirtz & Grossman. Amongst other things, the law firm claims that Vale made false statements regarding the project. Shares in Samarco’s 50 per cent owner BHP Billiton have also been heavily sold down. It is not named in the class action.

CORPORATES
VALE SA, SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, BRONSTEIN, GEWIRTZ AND GROSSMAN, NEW YORK STOCK EXCHANGE, DISTRICT COURT OF UNITED STATES. SOUTHERN DISTRICT OF NEW YORK, BRAZIL. ENVIRONMENT MINISTRY, UNITED NATIONS, GOLDBERG AND PARTNERS INCORPORATED

BHP bonuses cut by Samarco disaster

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 20 : 8-Dec-15

Shares in BHP Billiton have shed 23 per cent in the wake of the tailings dam failure in Brazil in early November 2015. The resources giant has responded by reducing the number of bonus shares allocated to senior executives under the 2014-15 long-term and short-term incentives scheme. CEO Andrew Mackenzie will be allocated 339,753 long-term incentive plan performance shares and 69,566 short-term incentive plan deferred shares.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

BHP, Vale set up clean-up fund for river as lawsuit looms

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Original article by Amanda Saunders, Steve Yolen
The Australian Financial Review – Page: 13 & 18 : 30-Nov-15

BHP Billiton has declined to comment on reports that the Brazilian Government will pursue legal action against both the Australian-listed group and Vale in the wake of the tailings dam disaster at the Samarco iron ore joint venture. However, the two groups intend to establish a non-profit fund to finance remediation of the Rio Doce river, which has been polluted by tailings waste from the project. Some reports have suggested that the fund could be worth around $US200m ($A278m).

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, UNITED NATIONS

BHP under pressure over Brazil disaster

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Original article by Sally Rose, Steve Yolen
The Australian Financial Review – Page: 13 & 18 : 16-Nov-15

BHP Billiton’s Australian-listed shares fell by 10.8 per cent in the week ended 13 November 2015, extending the stock’s losses since 1 July to around 25 per cent. The latest sell-off was prompted by the tailings dam disaster at the Samarco iron ore project in Brazil. Principles for Responsible Investment MD Fiona Reynolds argues that Samarco joint venture partners BHP and Vale should respond to the disaster by linking their executive remuneration to the safety records of their mining operations.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, PRINCIPLES FOR RESPONSIBLE INVESTMENT, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIANSUPER PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

BHP falls erase China boom gains

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Original article by Amanda Saunders, Matthew Stevens, Neil Chenoweth, John Kehoe
The Australian Financial Review – Page: 1 & 12 : 13-Nov-15

Shares in BHP Billiton shed 1.6 per cent to close at $A20.60 on 12 November 2015, which is the stock’s lowest level in almost 10 years. The recent rout means BHP stock is trading at around the same level it was at prior to the start of the China-driven commodities boom. Meanwhile, the Queensland Government has demanded unpaid royalties of $A288m arising from the use of Singapore as a marketing hub, while BHP also faces massive costs associated with the tailings dam disaster at its joint venture Samarco iron ore project in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, SOUTH32 LIMITED – ASX S32, SUPREME COURT OF QUEENSLAND, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, BHP BILLITON MARKETING AG, RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, PENGANA CAPITAL LIMITED

BHP dam was flawed, experts said

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Original article by Amanda Saunders, Lia Timson, Matthew Stevens
The Australian Financial Review – Page: 1 & 28 : 12-Nov-15

BHP Billiton has declined to comment on whether it was aware of a 2013 report which raised concerns about the tailings dams at its Samarco iron ore joint venture in Brazil. The report was produced by the Instituto Pristino on behalf of state of Minas Gerais’s Environment Ministry, and concluded that design flaws in the tailings dam system could potentially lead to the catastrophic dam failure that has resulted in a fatal mudslide. The mine is jointly owned by Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, INSTITUTO PRISTINO, SAMARCO MINERACAO SA, DEUTSCHE BANK AG, MOODY’S INVESTORS SERVICE INCORPORATED

Burst Brazilian dam likely to stay shut for years; owners face fines

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Original article by Amanda Saunders, Matthew Stevens
The Australian Financial Review – Page: 17 : 10-Nov-15

Deutsche Bank’s Paul Young says BHP Billiton may have to reconsider its progressive dividend policy in the wake of a fatal incident at its Samarco iron ore joint venture in Brazil. Deutsche estimates that BHP and joint venture partner Vale could face costs of at least $US1bn ($A1.4bn) arising from the failure of a tailings dam at the mine in the state of Minas Gerais. Young says the Samarco project is unlikely to resume production before fiscal 2019, and it could potentially be closed permanently.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, DEUTSCHE BANK AG, SAMARCO MINERACAO SA

Vale China deal puts Rio, BHP on notice

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Original article by Angus Grigg
The Australian Financial Review – Page: 23 : 17-Feb-15

China will provide the 400,000-tonne Valemax-class iron ore transport ships with access to its ports, overturning a ban that has been in place for three years. China Metallurgical Industry Planning Association chairman Li Xingchuang says the move is likely to boost the market share of Brazil’s Vale. Macquarie Group’s Graeme Train adds that Vale could also overtake BHP Billiton and Rio Tinto as the world’s lowest-cost producer of iron ore

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, MACQUARIE GROUP LIMITED – ASX MQG, CHINA. MINISTRY OF TRANSPORTATION AND COMMUNICATIONS, CHINA METALLURGICAL INDUSTRY PLANNING ASSOCIATION, CHINA OCEAN SHIPPING COMPANY, CMES