IRON MINES AND MINING – WESTERN AUSTRALIA

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

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