IRON MINES AND MINING – WESTERN AUSTRALIA

FMG can be ‘high growth, high yield’

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 9-Dec-16

Shares in Fortescue Metals Group have gained 23 per cent since Donald Trump won the US presidential election. The pure-play iron ore producer is now valued at around $A20bn, and the 33.32 per cent stake of founder and chairman Andrew Forrest is worth nearly $A7bn. Forrest has downplayed the potential for a trade war between the US and China, which would weigh on Fortescue’s share price. He has also rejected suggestions that mining companies cannot boast both high yields and high growth.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Fortescue steers past another milestone with iron ore carrier

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Original article by Angus Grigg
The Australian Financial Review – Page: 16 : 30-Nov-16

Pure-play iron ore miner Fortescue Metals Group has officially launched the first of eight bulk carriers that are being built in China. Each vessel’s capacity will be around 260,000 tonnes, and Fortescue CEO Nev Power says the investment in the fleet reflects the company’s confidence in the long-term outlook for the Chinese and Asian economies, as well as demand for iron ore. The price of the steel input has reached a two-year high, but Power expects it to trade at between $US50 and $US60 over the long-term.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, DEUTSCHE BANK AG

A fair return on WA’s iron ore would help our GST injustice

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Original article by Brendon Grylls
The Australian Financial Review – Page: 47 : 24-Nov-16

Western Australia now receives just $A0.30 of every dollar of goods and services tax revenue that is generated in the state. The proposed increase in the iron ore levy from $A0.25 per tonne to $A5 is intended to redress this imbalance and help reduce the state’s budget deficit. It should be noticed that the levy does not constitute a new tax on BHP Billiton and Rio Tinto. It has been in place for five decades and has remained unchanged since. The Samarco tailings dam disaster and the Simandou bribery scandal constitute greater sovereign risks.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, VALE SA, SAMARCO MINERACAO SA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA

Fortescue in $US473m deal for ships funding

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 15-Nov-16

Pure-play iron ore miner Fortescue Metals Group will finance its new fleet of bulk cargo vessels primarily via a $US473m loan from the China Development Bank Financial Leasing Company. Fortescue CEO Nev Power says it could potentially lead to more Chinese banks arranging structured financing deals in Australia. The fleet of eight very large ore carriers will cost $US556m in total, with delivery of the final one scheduled for mid-2018.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CHINA DEVELOPMENT FINANCIAL LEASING COMPANY LIMITED, PATERSONS SECURITIES LIMITED

Chaney lashes WA Nats’ iron tax plan

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Original article by Paul Garvey, Eli Greenblat
The Australian – Page: 23 : 11-Nov-16

Wesfarmers chairman Michael Chaney has criticised a proposal by Western Australian National Party leader Brendon Grylls to increase the state’s iron ore levy. He argues that BHP Billiton and Rio Tinto already make a significant contribution to government revenue from taxes and mining royalties, and the existing arrangement for sharing GST revenue means WA’s income will not rise anyway. He adds that the levy increase would also result in job losses and reduced investment in WA, while Brazil would gain a greater share of iron ore exports at Australia’s expense.

CORPORATES
WESFARMERS LIMITED – ASX WES, NATIONAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, COLES SUPERMARKETS AUSTRALIA PTY LTD

Iron ore price hits Hancock profits

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Original article by Paul Garvey
The Australian – Page: 24 : 11-Nov-16

Hancock Prospecting has revealed that its revenue fell from more than $A2bn in 2014-15 to $A1.72bn in 2015-16, while its net profit from operations was 33 per cent lower at $A443m. Hancock Prospecting has attributed the revenue and earnings deficit to a fall in the iron ore prices during the financial year. The group also notes that construction of the Roy Hill iron project resulted in its total debt rising to $A8.9bn.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL IRON ORE PTY LTD, RIO TINTO LIMITED – ASX RIO, HOPE DOWNS IRON ORE PTY LTD

BHP urges suppliers to join tax fight

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Original article by Peter Ker
The Australian Financial Review – Page: 25 & 30 : 10-Nov-16

BHP Billiton executive Mike Henry has warned that mining services firms would be adversely affected by the Western Australian National Party’s proposed increase in the state’s iron ore levy. He says the mining services sector should lobby against the policy, arguing that they will receive less work if the levy is increased from $A0.25 per tonne to $A5, while employment in the sector will fall. Henry also says there should be greater collaboration between resources groups and mining services firms.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NATIONAL PARTY OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, ORICA LIMITED – ASX ORI

Twiggy slams BHP, Rio for ‘high-grading’ ore

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Original article by Paul Garvey
The Australian – Page: 23 : 10-Nov-16

Fortescue Metals Group chairman Andrew Forrest had criticised BHP Billiton and Rio Tinto for focusing on the production of higher-grade iron ore and overlooking lower-grade ore that needs some processing before shipment. He argues that this merely reduces the value of an orebody and shortens a mine’s life. Fortescue itself uses a beneficiation process to upgrade the quality of lower-grade iron ore. Meanwhile, Forrest does not expect the financial market volatility in the wake of Donald Trump’s presidential election win to be sustained.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, BLUESCOPE STEEL LIMITED – ASX BSL, DEXUS PROPERTY GROUP – ASX DXS, DELOITTE TOUCHE TOHMATSU LIMITED, NATIONAL PARTY OF AUSTRALIA

Fortescue shares slide on Hunan Valin bonds report

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Original article by Tess Ingram
The Australian Financial Review – Page: 23 : 3-Nov-16

Bloomberg has reported that China-based Hunan Valin Group is seeking buyers for up to $US369m worth of Fortescue Metals Group’s convertible bonds. The bonds, which are slated to mature in five years, can be converted into some 65 million shares in the pure-play iron ore producer. Hunan Valin has a 14.2 per cent stake in Fortescue, whose shares closed 4.7 per cent lower at $A5.22 on 2 November 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, HUNAN VALIN IRON AND STEEL GROUP COMPANY LIMITED, BLOOMBERG LP, DEUTSCHE BANK AG, HARBINGER CAPITAL PARTNERS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

AutoHaul fix nearing for Rio Tinto

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 2-Nov-16

Andy Barr, the CEO of Italy-based Ansaldo STS, says the group is close to completing some major projects in Australia. Ansaldo is a key supplier for Rio Tinto’s AutoHaul project to automate trains at its iron ore mines in Western Australia. Although Barr did not name Rio Tinto, the resources giant is believed to be one of the customers to which he was referring, The AutoHaul project has been delayed by software problems, which have prompted Rio Tinto to scale back its iron ore export forecasts for 2016 and 2017.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ANSALDO STS, ROY HILL HOLDINGS PTY LTD, QUEENSLAND RAIL