IRON MINES AND MINING – WESTERN AUSTRALIA

Rinehart’s Roy Hill to lift output

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Original article by Paul Garvey
The Australian – Page: 14 : 9-Jan-18

Roy Hill Holdings is seeking to lift its iron ore export capacity at Port Hedland to 60 million tonnes a year. The company reached its annual production target of 55 million tonnes in September 2017, less than two years after shipments from its namesake mine began. Roy Hill says the increased production can be achieved without investing in additional infrastructure. Meanwhile, a Federal Government report has forecast strong growth in Australia’s iron ore exports in 2018 and a fall in the price of the steel input.

CORPORATES
ROY HILL HOLDINGS PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF WATER AND ENVIRONMENTAL REGULATION, HANCOCK PROSPECTING PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

Hambro tips iron ore discounts to persist

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 13-Dec-17

BlackRock fund manager Evy Hambro expects lower-grade iron ore to continue to trade at a discount to the benchmark price for some time. The discount has widened amid growing demand in China for higher-grade ore. Hambro notes that Australian miners may find it increasingly difficult to maintain the quality of their iron ore, as some of the best-quality reserves in the Pilbara have been exhausted. Brazil-based Vale is also increasing production of higher-grade iron ore at its S11D project.

CORPORATES
BLACKROCK WORLD MINING TRUST PLC, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Fortescue looks to new horizons

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Original article by Glenda Korporaal
The Australian – Page: 20 : 9-Nov-17

More than 90 per cent of Fortescue Metals Group’s iron ore is exported to China. However, outgoing CEO Nev Power has flagged plans to lift the volume of exports to other nations in response to Chinese steel mills’ growing demand for higher-grade iron ore. Fortescue already ships some iron ore to the UK and Germany, and Power says it aims to build on this, as well as seeking other export markets in Asia. Power has also advised that Fortescue will undertake a feasibility study on its Eliwana deposit at the Western Hub in the Pilbara.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RESERVE BANK OF AUSTRALIA, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY

Doubts raised on mine job numbers

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Original article by Andrew Burrell
The Australian – Page: 9 : 8-Nov-17

Data from the 2016 Census shows that just 907 of the 8,000 Aboriginals who live in the Pilbara region currently work in the iron ore industry. In contrast, Rio Tinto, BHP Billiton and Fortescue Metals Group claim that they employ about 1,850 Aboriginal people in the Pilbara. Perth-based lawyer Franklin Gaffney says the census figures give credence to claims that Aboriginal employment numbers in the mining sector are being inflated. He has proposed independent monitoring of native title agreements to ensure that companies are meeting their targets for employing indigenous people.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, LAVAN LEGAL, AUSTRALIAN BUREAU OF STATISTICS

Fortescue faces 70pc value hit from iron ore discount

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Original article by Paul Garvey
The Australian – Page: 30 : 3-Nov-17

Fortescue Metals Group’s lower-grade iron ore is trading at a discount of about 30 per cent to the benchmark price. Sam Webb of Credit Suisse estimates that Fortescue’s net present value could fall to $A1.40 per share if the this discount persists. Webb adds that Fortescue’s future capital expenditure and exploration plans may be affected if the price discount is sustained until mid-2018. Credit Suisse has a share price target of $A6.10 on Fortescue. The stock rose 4.06 per cent to $A4.87 on 2 November.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CREDIT SUISSE (AUSTRALIA) LIMITED

Iron ore market doesn’t warrant extra supply: Fortescue

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 18 : 1-Nov-17

Rio Tinto CEO Jean-Sebastien Jacques recently told staff via an internal communication that its Pilbara iron ore shipments could eventually top 400 million tonnes a year, compared with its 2017 target of 330 million tonnes. However, Fortescue Metals Group CEO Nev Power questions whether there is sufficient demand for iron ore at present to justify a large increase in supply, noting that shareholder returns will be adversely affected if resources projects are over-developed. Meanwhile, Power expects the price discount for Fortescue’s lower-grade iron ore to narrow over time.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ARRIUM LIMITED – ASX ARI, LIBERTY HOUSE GROUP, CLEVELAND-CLIFFS INCORPORATED, METALICITY LIMTED – ASX MCT

Electric cars drive Fortescue’s lithium push

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Original article by Matt Chambers
The Australian – Page: 17 & 25 : 1-Nov-17

Growing global demand for lithium has prompted pure-play iron ore miner Fortescue Metals Group to diversify by revealing plans to explore tenements near existing lithium deposits in Western Australia. Shares in Australian-listed lithium miners have rallied in recent months, amid rising demand for electric cars and plans by some car makers to phase out traditional petrol-only vehicles. Meanwhile, Richard Coppleson of Bell Potter says lithium could follow the same price trajectory as iron ore in the mid-2000s.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BELL POTTER SECURITIES LIMITED, PILBARA MINERALS LIMITED – ASX PLS, GALAXY RESOURCES LIMITED – ASX GXY, KIDMAN RESOURCES LIMITED – ASX KDR, MINERAL RESOURCES LIMITED – ASX MIN, UBS HOLDINGS PTY LTD, VOLKSWAGEN AG, AUDI AG, DR ING HCF PORSCHE AG, GENERAL MOTORS CORPORATION, FORD MOTOR COMPANY

Pollution controls lift FMG’s China discount

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Original article by Angus Grigg, James Thomson
The Australian Financial Review – Page: 13 & 19 : 31-Oct-17

SteelHome analyst Du Hongfeng says Chinese demand for iron ore is likely to fall by 56 million tonnes between September 2017 and March 2018, as steel mills reduce output during the winter months. He adds that this will require Fortescue Metals Group to maintain its current iron ore price discount until at least March, in order to retain its market share. Fortescue’s iron ore with 58.5 per cent iron content is currently being offered at a 23 per cent discount to the benchmark price for delivery in November, while its iron ore with 56.3 per cent iron content is trading at a 40 per cent discount.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SHANGHAI STEELHOME INFORMATION TECHNOLOGY COMPANY LIMITED, UBS HOLDINGS PTY LTD

Fortescue adamant that wide iron ore discount will revert

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 27-Oct-17

Fortescue Metals Group’s cash reserves rose from $US1.8bn to $US2.3bn in the September quarter. Iron ore shipments totalled 44 million tonnes, with "C1" costs falling marginally to $US12.15 per tonne. Fortescue has reduced its price realisation guidance for the second time in 2017-18, and now expects to receive between 70 and 75 per cent of the benchmark index price for its lower-grade ore. CEO Nev Power suggested earlier in 2017 that the price discount would not be sustained, but he now says it is difficult to predict when it will narrow.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG

Rio sticks with record iron ore target

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 18-Oct-17

Rio Tinto scaled back its forecast for Pilbara iron ore shipments in 2017 to 330 million tonnes earlier in the year. The resources group is confident of meeting this guidance, after shipments rose by 11 per cent to 85.8 million tonnes in the September quarter. However, Rio Tinto’s export volumes will have to rise to a record 89.8 tonnes in the December quarter to achieve its revised guidance. Meanwhile, Rio Tinto has reduced its forecast for copper production in 2017 for a second time. It now expects global output to be within the range of 460,000 to 480,000 tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, YANCOAL AUSTRALIA LIMITED – ASX YAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SHAW AND PARTNERS LIMITED, DEUTSCHE BANK AG