IRON MINES AND MINING – WESTERN AUSTRALIA

Rio chief spruiks value over volume

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Original article by Matt Chambers
The Australian – Page: 19 & 28 : 15-Feb-17

Rio Tinto expects its iron ore production in the Pilbara to be within the range of 330 to 340 million tonnes in 2017, compared with 330 million tonnes in 2016. The group has invested some $US16bn on expanding its Western Australian infrastructure over the last 10 years. However, CEO Jean-Sebastien Jacques says Rio Tinto’s focus is on value rather than volume, and it will consider the impact on the iron ore price before lifting production to take advantage of its increased capacity.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, CREDIT SUISSE (AUSTRALIA) LIMITED, CITIGROUP PTY LTD

BHP’s growth prospects still linked to oil

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 22 : 6-Feb-17

BHP Billiton’s announcement in 2016 that it would seek to increase annual coking coal production in Queensland by four million tonnes has proven to be an astute move, given the rebound in the price of coal. The Peak Downs mine achieved record output in the December quarter. BHP also advised that maintenance work on railway lines serving its Pilbara iron ore operations will be completed nine months ahead of schedule. Meanwhile, BHP is ramping up investment in its petroleum division in order to arrest a decline in production.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, MITSUBISHI CORPORATION

BHP, Rio go on mine tax attack

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Original article by Paige Taylor
The Australian – Page: 5 : 3-Feb-17

The Chamber of Minerals & Energy of Western Australia has defended the mining industry’s advertising campaign targeting the proposed increase in the state’s iron ore levy. A spokesman says the proposal by WA National Party leader Brendan Grylls will reduce investment in the state and cost nearly 3,000 jobs in the Pilbara. Premier Colin Barnett has criticised the advertising campaign, but stresses that the levy will not be increased if the Coalition wins the election on 11 March.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Fast finish for Rio iron exports

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 16-Jan-17

Data from the Port of Dampier shows that Rio Tinto shipped 37.43 million tonnes of iron ore through the port in the December 2016 quarter, compared with 33.93 million tonnes in the September quarter. Glyn Lawcock of UBS says Rio Tinto should meet its revised guidance of between 325 million and 330 million tonnes from the Pilbara for calendar 2016. The group will release its production results for the full year on 17 January 2017, while its financial results will be released on 8 February.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PORT OF DAMPIER, UBS HOLDINGS PTY LTD, WHITEHAVEN COAL LIMITED – ASX WHC, HANCOCK PROSPECTING PTY LTD, SINOSTEEL CORPORATION, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, MINERAL RESOURCES LIMITED – ASX MIN, ST BARBARA LIMITED – ASX SBM, NEWCREST MINING LIMITED – ASX NCM, ROY HILL HOLDINGS PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF THE TREASURY

Forrest cautious on iron outlook

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Original article by Andrew White
The Australian – Page: 15 & 16 : 13-Jan-17

Iron ore is trading at around $US80 a tonne, although it is tipped to fall to $US51.60 by mid-2017 and $US46.70 in 2018. The price of the steel input bottomed at $US36 per tonne in 2015, prompting Fortescue Metals Group to slash its debt and reduce its workforce. Fortescue also reduced its costs to just $US14.31 per tonne, but chairman Andrew Forrest says the group aims to achieve further cost reductions given the outlook for the iron ore price. Forrest also continues to advocate action to end slavery, and he has urged all Australian companies to take a similar stance.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WALK FREE FOUNDATION, MINDEROO FOUNDATION, ROY HILL IRON ORE PTY LTD, VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Ralph slams iron ore tax hike

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Original article by Paul Garvey
The Australian – Page: 13 & 18 : 12-Jan-17

Former mining industry executive John Ralph says Western Australia’s reputation as an investment destination would be severely damaged if an increase in the iron ore levy were to proceed. WA National Party leader Brendan Grylls has proposed to increase the levy paid by BHP Billiton and Rio Tinto from $A0.25 per tonne to $A5, although it is opposed by both the Liberal and Labor parties. Ralph is a former CEO and MD of CRA, which subsequently became Rio Tinto. He was working for CRA when the iron ore production levy was introduced in the 1960s.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CRA LIMITED, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, FOSTER’S GROUP LIMITED

Thank me for miners’ GST push: Grylls

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 10-Jan-17

Minerals Council of Australia CEO Brendan Pearson has rejected suggestions that its proposal for changes to the system for distributing GST revenue was influenced by Western Australian National Party leader Brendon Grylls. The MCA’s submission to the Productivity Commission argues that the system disadvantages states that encourage the development of resources projects. Grylls urged the mining sector to lobby for GST reform in 2016, when he proposed to increase the state’s iron ore levy from $A0.25 per tonne to $A5.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

End-year cyclone threat for miners, LNG producers

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Original article by Peter Ker
The Australian Financial Review – Page: 4 : 19-Dec-16

The Bureau of Meteorology has warned that there is the potential for a tropical cyclone to hit Western Australia’s north-west coast prior to Christmas. The bureau has advised iron ore and LNG producers to be alert for a possible cyclone, but stresses that it is too soon to predict whether this will occur. Cyclone Stan disrupted the Pilbara’s iron ore exports in January.

CORPORATES
AUSTRALIA. BUREAU OF METEOROLOGY, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROBE RIVER IRON ASSOCIATES, MITSUI AND COMPANY (AUSTRALIA) LIMITED, NIPPON STEEL AND SUMITOMO METAL CORPORATION

Forrest now third richest as iron ore rally delivers $5.3bn windfall

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Original article by Chris Kohler
The Australian – Page: 19 & 28 : 14-Dec-16

Bloomberg estimates that the net worth of Fortescue Metals Group founder Andrew Forrest has risen to $A7.34bn, making him the third-wealthiest individual in Australia. The 244 per cent rise in Fortescue’s share price during 2016 has boosted his wealth by $A5.34bn. The stock is currently trading at around $A6.43, compared with just $A1.45 in January. The iron ore price has risen by nearly 92 per cent in 2016, although BHP Billiton CEO Andrew Mackenzie is among those who believe that the recent rally is not sustainable.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BLOOMBERG LP, BHP BILLITON LIMITED – ASX BHP, VISY INDUSTRIES AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, RIO TINTO LIMITED – ASX RIO, MORGAN STANLEY AUSTRALIA LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BELL POTTER SECURITIES LIMITED, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

PM’s GST floor to stem mine tax leakage: Grylls

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Original article by Andrew Burrell
The Australian – Page: 6 : 14-Dec-16

The Minerals Council of Australia has released a report which suggests that Western Australia would lose $A2.02bn worth of GST revenue if it increased the iron ore levy. However, WA National Party leader Brendon Grylls argues that this analysis excluded the impact of the Federal Government’s proposed "floor" for the distribution of GST revenue. The state would be likely to retain most of the proceeds of the levy, as its share of GST revenue has fallen well below the proposed floor of about $A0.70 in the dollar.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO