IRON MINES AND MINING – WESTERN AUSTRALIA

BHP puts pedal to metal for South Flank mine plan

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 31 : 27-Jun-17

BHP Billiton has signalled that it is likely to make a final investment decision on its South Flank iron ore project in Western Australia by mid-2018. BHP has allocated $US184m in initial funding for the project, which is forecast to cost between $US2.4bn and $US3.2bn to develop. South Flank is BHP’s preferred option to replace the Yandi iron ore mine, which produces 80 million tonnes a year but is approaching the end of its mine life.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NATIONAL PARTY OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Timely break for Atlas, MinRes

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Original article by Paul Garvey
The Australian – Page: 31 : 23-Jun-17

A six-month extension of the discount on the fees paid by mining companies to use Port Hedland’s Utah Point berth will result in cost savings of about $A12.5m for both Atlas Iron and Mineral Resources. The discount of $A2.50 per tonne had been slated to end in June. However, BHP Billiton faces increased costs of about $A9m a year after the Western Australian Government announced that fees at most ports in the Pilbara will increase. The cost to Rio Tinto and Fortescue Metals Group will be around $A13m and $A6.8m respectively.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. DEPT OF TRANSPORT, NATIONAL PARTY OF AUSTRALIA

Atlas shelves Corunna project

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Original article by Paul Garvey
The Australian – Page: 20 : 22-Jun-17

Atlas Iron will increase production at its Mount Webber iron ore project by two million tonnes a year after putting its Corunna Downs project on hold. The iron ore price has fallen by about 40 per cent since Atlas approved Corunna Downs in early 2017. MD Cliff Lawrenson says it is still an important project for Atlas, and it will resume development of Corunna Downs when the iron ore price rebounds. Production at the company’s Abydos mine will end in October.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HARTLEYS LIMITED

Rio’s Silvergrass development on track for first iron ore this year

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 13-Jun-17

Production at Rio Tinto’s Silvergrass iron ore mine in Western Australia is slated to resume in July 2017, after being put on hold earlier in the year. Meanwhile, the final stage of the Silvergrass project is expected to be completed in the December quarter, which will double the mine’s annual output to 20 million tonnes. The final stage of the project includes construction of a crusher and a nine-kilometre conveyor.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ROY HILL HOLDINGS PTY LTD

BHP, Rio face fresh tax threat

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 1 & 10 : 29-May-17

The Western Australian Government may seek to have BHP Billiton and Rio Tinto pay their iron ore production levies upfront for a number of years, as part of its strategy to address the state’s rising debt and Budget deficit. Premier Mark McGowan says buying out the lease rental fee of $A0.25 per tonne is one of the options under consideration. Peter Strachan of StockAnalysis questions whether BHP and Rio Tinto would agree to such a deal, given the difficulty of forecasting their annual production rates over the long-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NATIONAL PARTY OF AUSTRALIA, STOCK ANALYSIS AUSTRALASIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, AUSTRALIAN LABOR PARTY

Fortescue refinances to fortify its books

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Original article by Paul Garvey
The Australian – Page: 42 : 10-May-17

Fortescue Metals Group has raised $US1bn ($1.36bn) via the issuance of five- and seven-year bonds. It was the pure-play iron ore miner’s first foray into the bond market for more than two years, and the proceeds will be used to repay some $A976m worth of debt that is due in 2019. Fortescue’s remaining debt will not have to be repaid until at least 2022. Its total debt has fallen below $US4bn, compared with a peak of $US10.7bn.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGONAUT SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Pilbara deluge cuts BHP output

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Original article by Paul Garvey
The Australian – Page: 20 : 1-May-17

The revenue of BHP Billiton, Fortescue Metals Group, Rio Tinto and Woodside Petroleum was slashed by about $A2.9bn in the March 2017 quarter, due to heavier than usual rainfall in the Pilbara region of Western Australia. BHP has attributed its 11 per cent downturn in iron ore production in the Pilbara to the wet season. Likewise, production at the North West Shelf LNG project was 12.7 per cent lower. Meanwhile, the State Government’s iron ore royalties are likely to have been reduced by about $A170m as a result of the adverse weather conditions.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOODSIDE PETROLEUM LIMITED – ASX WPL, ATLAS IRON LIMITED – ASX AGO, AUSTRALIA. BUREAU OF METEOROLOGY

BHP puts US shale back on block

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Original article by Paul Garvey
The Australian – Page: 17 & 26 : 27-Apr-17

BHP Billiton has reduced its 2017 forecast for copper production to between 1.33 million and 1.36 million tonnes due to the impact of industrial action at the Escondida mine in Chile. Metallurgical coal output is also expected to be lower due to Cyclone Debbie in Queensland, while iron ore production guidance has been reduced to between 268 million and 272 million tonnes following inclement weather in Western Australia during the March quarter. Meanwhile, BHP has flagged plans to sell its Fayetteville shale gas fields in the US.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AUSTRALIA PTY LTD

WA minister slams gas pipeline

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 26-Apr-17

Prime Minister Malcolm Turnbull recently signalled that the Federal Government is considering a proposal to build a gas pipeline linking Western Australia to the east coast. The transcontinental gas pipeline was mooted by former state premier Colin Barnett, but WA Mines Minister Bill Johnston says it would require other states to introduction policies requiring a certain proportion of gas to be reserved for domestic use. Johnston also says the State Government is open to discussions with the mining sector regarding the iron ore levy, although he has ruled out abolishing it.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, HIGH COURT OF AUSTRALIA, VIMY RESOURCES LIMITED – ASX VMY, TORO ENERGY LIMITED – ASX TOE, CAMECO CORPORATION, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIAN LABOR PARTY

Port Hedland’s iron spirit surfaces again

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 21-Mar-17

Housing rent charges in Port Hedland rose by $A10 per week in the December 2016 quarter, according to data from the Pilbara Development Commission. It was the first quarterly rise in rents since 2012, and reflects the recent rebound in the iron ore price. The average advertised sale price of homes in Port Hedland rose for the first time since 2013. The average rent in Port Hedland is now $A506 per week, compared with nearly $A2,600 at the height of the mining boom. The iron ore price has reached a peak of more $US90 per tonne, but many forecasters do not expect this to be sustained.

CORPORATES
PILBARA DEVELOPMENT COMMISSION, EVANS AND PARTNERS PTY LTD, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, FIRST NATIONAL REAL ESTATE GROUP