IRON MINES AND MINING – WESTERN AUSTRALIA

Fortescue on track to hit gearing target

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Original article by Paul Garvey
The Australian – Page: 21 : 24-Jun-16

Fortescue Metals Group’s early repayment of debt over the course of 2015-16 will reduce its interest costs by about $US186m a year. The iron ore miner advised on 23 June 2016 that it has repaid an additional $US500m ($A663.4m) worth of debt. It has now repaid a total of $US2.9bn so far in 2015-16, and CFO Steve Pearce says the group could soon have lower gearing than BHP Billiton and Rio Tinto. Fortescue shares closed 8.3 per cent higher at $A3.53.

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

Lessons learnt, says Citic’s chief as sole focus now on Sino Iron future

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Original article by Tess Ingram
The Australian Financial Review – Page: 28 : 14-Jun-16

The cost of developing the Sino Iron magnetite project in Western Australia is believed to have blown out to around $US12bn ($A16.2bn). However. Citic Pacific Mining CEO Chen Zeng has declined to comment on the cost of the project, which Citic bought for $US415m in 2006. The Sino Iron project has been affected by a long-running legal dispute, while the iron ore price has fallen significantly since shipments commenced in late 2013.

CORPORATES
SINO IRON PTY LTD, CITIC PACIFIC MINING MANAGEMENT PTY LTD, MINERALOGY PTY LTD, METALLURGICAL CORPORATION OF CHINA LIMITED, CITIGROUP PTY LTD, PATERSONS SECURITIES LIMITED

Fortescue stays disciplined on debt

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

Fortescue Metals Group will reduce the annual interest bill on its debt by $US48m by redeeming some $US577m ($A757.8m) of senior unsecured notes. These notes were due to be redeemed in 2019, but the iron ore group intends to do so on 1 June 2016. CEO Nev Powers says repaying debt will continue to be a priority for Fortescue, which has repaid or redeemed some $US1.7bn worth of debt in the last year.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP joins Rio in cutting iron ore output

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Original article by Matt Chambers
The Australian – Page: 19-20 : 21-Apr-16

BHP Billiton has reduced its forecast for 2015-16 iron ore output in Western Australia by 10 million tonnes, to 240 million tonnes. The downgrade has been attributed to factors such as inclement weather and a railway upgrade and maintenance project. Rio Tinto recently advised that issues associated with its rail automation program will reduce its Pilbara iron ore production in 2017. BHP’s Pilbara operations produced 61.5 million tonnes of iron ore in the March 2016 quarter.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, METAL BULLETIN LIMITED, UBS HOLDINGS PTY LTD, INVESTEC AUSTRALIA LIMITED

Fortescue insists value trumps volume

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 14-Apr-16

Fortescue Metals Group has advised that its iron ore shipments rose by four per cent year-on-year in the March 2016 quarter, to 42 million tonnes. Fortescue has indicated that favourable weather conditions in the June quarter could allow the group to exceed its guidance of 165 million tonnes for 2015-16. The iron ore miner’s net debt fell by $A200m to $A5.9bn during the March quarter, while its cash costs were reduced by six per cent.

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

Fortescue keeps contract in-house to cuts costs

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Apr-16

Downer EDI’s contract to provide mining services at Fortescue Metals Group’s Christmas Creek iron ore mine will not be renewed when it expires in September 2016. Fortescue has already dispensed with mining contractors at its other iron ore mines, and CEO Nev Power says the move will result in further cost reductions. Downer EDI has previously estimated that the contract was worth $A720m, but says its financial results for fiscal 2016 are unlikely to be affected.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, DOWNER EDI LIMITED – ASX DOW, MACMAHON HOLDINGS LIMITED – ASX MAH

Rinehart’s Hancock Prospecting bullish on iron ore prices

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Original article by Perry Williams
The Australian Financial Review – Page: 13 & 20 : 4-Apr-16

Hancock Prospecting is upbeat about the outlook for the iron ore price in the near-term. Executive director Tad Watroba is optimistic that it will remain within the range of $U55 to $U60 per tonne for the remainder of 2016. He notes that about 25 million tonnes of the Roy Hill iron ore project’s output of 55 million tonnes will be shipped to Chinese buyers. The project’s first shipment to China will shortly arrive at the port of Caofeidian.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD, BOAO FORUM FOR ASIA, RIO TINTO LIMITED – ASX RIO, HOPE DOWNS IRON ORE PTY LTD, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION, CREDIT SUISSE (AUSTRALIA) LIMITED, METAL BULLETIN LIMITED, CHINA IRON AND STEEL INDUSTRY ASSOCIATION

Roy Hill iron bound for China

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Original article by Glenda Korporaal
The Australian – Page: 20 : 31-Mar-16

Chinese steelmaker Shougang International will shortly receive its inaugural shipment of iron ore from the Roy Hill project in Western Australia. The first shipment to China is scheduled to arrive at the port of Caofeidian in early April 2016. The Gina Rinehart-backed Roy Hill commenced exports in late 2015, and it is eventually slated to produce 55 million tonnes per annum.

CORPORATES
ROY HILL HOLDINGS PTY LTD, SHOUGANG GROUP, POSCO, ASIAN INFRASTRUCTURE INVESTMENT BANK, HANCOCK PROSPECTING PTY LTD, MARUBENI CORPORATION, CHINA STEEL CORPORATION

Qube benefits from Brockman’s maverick move on Pilbara

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 17 : 30-Mar-16

Australian-listed iron ore group Brockman Mining still aims to gain access to the rail network of Fortescue Metals Group in the Pilbara region of Western Australia. Brockman has secured an agreement for logistics group Qube Holdings to transport iron ore from its Maverick project by road to Port Hedland, but large-scale production will require transport via rail. Brockman estimates that the project’s operating costs will be around $US35 per tonne.

CORPORATES
BROCKMAN MINING LIMITED – ASX BCK, QUBE HOLDINGS LIMITED – ASX QUB, FORTESCUE METALS GROUP LIMITED – ASX FMG, COURT OF APPEAL (WESTERN AUSTRALIA)

Fortescue shrugs off ratings hit

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Original article by Paul Garvey
The Australian – Page: 20 : 16-Mar-16

Shares in Fortescue Metals Group closed just 1.55 per cent lower on 15 March 2016, following a decision by Moody’s to downgrade the iron ore producer’s credit rating. In contrast, BHP Billiton and Rio Tinto shares both fell by 3.4 per cent. Meanwhile, Morgan Stanley has reduced its share price target for Fortescue from $A2.10 to $A1.90 and downgraded its recommendation on the stock to "underweight".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO