IRON MINES AND MINING – WESTERN AUSTRALIA

Iron ore won’t drop to $US40: Fortescue CEO

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 28-Oct-16

The iron ore price has rallied to more than $US60 per tonne, compared with just $US38/tonne in late 2015. Fortescue Metals Group CEO Nev Power says his company expects the price of the steel input to trade within a range of $US40-$US60 in 2017. He adds that an improvement in sentiment could prompt a further rise, adding that there is unlikely to be a large enough fall in demand for iron ore in China for the price to retreat to around $US40. Morgan Stanley forecasts that iron ore will average $US42 in the December 2016 quarter.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MORGAN STANLEY AUSTRALIA LIMITED, ROY HILL HOLDINGS PTY LTD, VALE SA

Fortescue Metals shares leap on soaring iron ore futures

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Original article by Tess Ingram, James Thomson
The Australian Financial Review – Page: 17 : 26-Oct-16

Iron ore futures traded on China’s Dalian Commodity Exchange have risen to the highest level since mid-August 2014. Shares in pure-play iron ore miner Fortescue Metals Group responded by rising 6.5 per cent to $A5.44 on 25 October 2016. Meanwhile, Fortescue has advised that it is still targeting a "C1" cost of between $US12 and $US13 per tonne for the 2016-17 financial year, compared with $US15.43 per tonne in 2015-16.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, DALIAN COMMODITY EXCHANGE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Rio struggles to get Pilbara exports firing

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Original article by Matt Chambers
The Australian – Page: 21 : 21-Oct-16

Rio Tinto has advised that its Pilbara iron ore shipments for calendar 2016 will be lower than previously forecast, at between 325 million and 330 million tonnes. Its iron ore output in the Pilbara rose by two per cent year-on-year to 83.2 million tonnes in the September quarter, although port and rail maintenance issues resulted in shipments falling by five per cent to 80.9 million tonnes. Rio Tinto has again reduced its full-year production guidance for copper, following a four per cent decline in output during the quarter.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MORGANS FINANCIAL LIMITED, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, BHP BILLITON LIMITED – ASX BHP

FMG boosts exports as big iron falls short

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 19 & 24 : 21-Oct-16

Fortescue Metals Group has reported that its iron ore shipments totalled 43.8 million tonnes during the September 2016 quarter. CEO Nev Power says the group ramped up production ahead of the cyclone season, but adds that it is maintaining its full-year guidance of between 165 million and 170 million tonnes. Fortescue reduced its "C1" costs by five per cent during the quarter, to $US13.55 per tonne. The group aims to reduce this to between $US12 and $US13 during 2016-17.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, VALE SA, GRANGE RESOURCES LIMITED – ASX GRR, SHAW AND PARTNERS LIMITED, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD, MORGANS FINANCIAL LIMITED

Grylls ups fight on iron ore tax

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Original article by Andrew Burrell
The Australian – Page: 21 : 19-Oct-16

Western Australian Nationals leader Brendon Grylls claims that parliament can alter the state agreements of Rio Tinto and BHP Billiton without their consent. The state agreements require BHP and Rio to pay a levy of $A0.25 for each ton of iron ore they produce, but Grylls has proposed lifting this to $A5. He also alleges that they have breached the state agreements. A Rio spokesman has warned that future investment in WA and iron ore supply would be jeopardised if the government sought to change the state agreements.

CORPORATES
RIO TINTO ALUMINIUM (BELL BAY) LIMITED, BHP BILLITON LIMITED – ASX BHP, NATION AIR, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF FINANCE

Nationals at war over mining tax

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 14-Oct-16

National Party of Australia leader Barnaby Joyce has weighed into the debate on the proposed increase in Western Australia’s iron levy. Joyce says he supports policies aimed at promoting the growth of regional areas but stresses that the tax hike proposed by WA Nationals leader Brendon Grylls is not the answer. Grylls has responded by criticising Joyce for not supporting WA. Grylls wants to increase the iron ore levy from $A0.25 per tonne to $A5, in order to offset WA’s loss of GST revenue.

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

Japanese, miners blast WA ‘tax grab’

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Original article by Rick Wallace
The Australian – Page: 22 : 12-Oct-16

A proposed increase in Western Australia’s iron ore levy has been criticised by speakers at a conference organised by the Australia-Japan Business Co-­operation Committee. BHP Billiton executive Arnoud Balhuizen said lifting the levy from $A0.25 per tonne to $A5 would result in job losses and reduced investment in the state. Nippon Steel & Sumitomo Metals Corporation’s honorary chairman also expressed concern about the proposal by WA National Party leader Brendon Grylls.

CORPORATES
AUSTRALIA-JAPAN BUSINESS CO-OPERATION COMMITTEE, BHP BILLITON LIMITED – ASX BHP, NIPPON STEEL AND SUMITOMO METAL CORPORATION, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, RIO TINTO LIMITED – ASX RIO, TRANS-PACIFIC PARTNERSHIP

Fortescue buys Nullagine mine for $1

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 11-Oct-16

BC Iron will sell its stake in the Nullagine iron ore mine in Western Australia to Fortescue Metals Group. The transaction comprises a token sum of $A1 plus a royalty on 75 per cent of future iron ore production. BC Iron initially sold a 50 per cent stake in the Nullagine mine to Fortescue in 2009, before repurchasing 25 per cent of Fortescue’s stake in 2012. Production at Nullagine was put on hold in late 2015 in response to a downturn in the iron ore price. It is estimated that keeping the mine in "care and maintenance" mode costs at least $A150,00 each month.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, UBS HOLDINGS PTY LTD

Rio Tinto satisfied with Autohaul fix

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 11-Oct-16

The head of Rio Tinto’s iron ore division, Chris Salisbury, says the performance of its Autohaul driverless technology is meeting expectations. Rio has been using driverless trucks for a number of years, but a project to roll out autonomous trains at its Western Australian iron ore mines has been delayed due to software issues. This has prompted Rio Tinto to scale back its iron ore production forecast for fiscal 2017. Salisbury said the group will also seek to retrofit its existing haulage equipment with automated technology.

CORPORATES
RIO TINTO LIMITED – ASX RIO, KOMATSU MINING SYSTEMS INCORPORATED, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, CATERPILLAR, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, NATIONAL PARTY OF AUSTRALIA

Iron ore exporters unlikely to meet shipment guidance

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Original article by David Stringer
The Australian Financial Review – Page: 24 : 6-Oct-16

Macquarie Group forecasts that Rio Tinto’s Western Australian iron ore shipments for 2016 will fall slightly short of its guidance for 330 million tonnes. Macquarie also says BHP Billiton also may not meet its production guidance. Macquarie had forecast that shipments from the state’s major iron ore export terminals would total 216 million tonnes in the September quarter, but new data shows that about 209 million tonnes were shipped.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG, ROY HILL HOLDINGS PTY LTD, VALE SA, METAL BULLETIN LIMITED, CITIGROUP PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, DBS GROUP HOLDINGS LIMITED, BLOOMBERG LP