IRON MINES AND MINING – WESTERN AUSTRALIA

Iron ore price descends towards Roy Hill’s break-even threshold

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 2-Feb-16

POSCO has estimated that the Roy Hill iron ore project’s break-even price is currently in the low $US40 per tonne range. The South Korean steel producer, which has a 12.5 per cent stake in the project, expects Roy Hill’s marginal cost of production to fall to the mid-$US30/per tonne range when it reaches full capacity in 2017. The benchmark iron ore price has fallen below $US42/per tonne in early February 2016. Fortescue Metals Group’s break-even price is said to be between $US28 and $US32 per tonne.

CORPORATES
ROY HILL IRON ORE PTY LTD, POSCO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, HANCOCK PROSPECTING PTY LTD, CHINA STEEL CORPORATION, MARUBENI CORPORATION, UBS HOLDINGS PTY LTD

Rio eases off its iron ore expansion

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Original article by Matt Chambers
The Australian – Page: 18 : 20-Jan-16

Rio Tinto expects to produce 350 million tonnes of iron ore in Western Australia and Canada in 2016, which is slightly below market forecasts of 355 million tonnes. Total production was 327 million tonnes in 2015, with the Pilbara region accounting for 310 million tonnes. However, Rio had initially flagged Pilbara output of 330 million tonnes. The latest guidance suggests that Rio Tinto may not achieve its Pilbara production target of 335 million tonnes in 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIGROUP PTY LTD, IRON ORE COMPANY OF CANADA, DEUTSCHE BANK AG

Gindalbie ‘at risk’ of collapse

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Original article by Paul Garvey
The Australian – Page: 18 : 13-Jan-16

The future of Gindalbie Metals is uncertain following Ansteel’s decision to cease providing funding for the Karara magnetite ore mine in Western Australia. The Chinese group has a 52 per cent stake in the mine, which has a workforce of 1,000. Gindalbie has advised that there now are doubts about its ability to continue as a going concern, prompting its shares to fall to a record low of $A0.08 on 12 January 2016. The stock traded at $A1.40 in 2011, when the iron ore price was around $A180 per tonne.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Fears grow for 1000 mine jobs

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Original article by Barry FitzGerald
The Australian – Page: 17 : 11-Jan-16

Shares in Gindalbie Metals went into a trading halt in the week ended 8 December 2016, ahead of an announcement regarding the Karara magnetite mine. Gindalbie has a 47.84 per cent stake in the Western Australian mine, which is operating at a loss due to the downturn in the iron ore price. China-based Ansteel owns 52.16 per cent of the mine, and its continued support will be essential for the mine to remain open.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, KARARA MINING LIMITED, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR

Rinehart dreams, rival falters

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Original article by Peter Ker, Julie-anne Sprague
The Age – Page: 23 : 11-Dec-15

Bulk carrier "MV Anangel Explorer" departed Port Hedland with the first shipment of iron ore from Gina Rinehart’s Roy Hill project on 10 December 2015. Despite the downturn in the iron price, Roy Hill CEO Barry Fitzgerald is confident that the $A10bn project will be profitable, while executive director Tad Watroba notes that the bulk of its output will be sold via supply contacts rather than on the spot market. Meanwhile, BC Iron has advised that a review of its Nullagine iron ore mine will have no impact on its other mines.

CORPORATES
ROY HILL IRON ORE PTY LTD, HANCOCK PROSPECTING PTY LTD, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG, SHAW AND PARTNERS LIMITED, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION, UBS HOLDINGS PTY LTD

On eve of triumph, Rinehart lashes out at sceptics

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 3 : 10-Dec-15

Bulk carrier "MV Anangel Explorer" is scheduled to leave Port Hedland with the first shipment from the Roy Hill iron ore project on 10 December 2015. Exports had initially been slated to commence by the end of the third quarter, and mining magnate Gina Rinehart has criticised the media for unduly focusing on the delays at Roy Hill rather than the project’s achievements. Rinehart’s Hancock Prospecting holds a 70 per cent stake in the project.

CORPORATES
ROY HILL IRON ORE PTY LTD, HANCOCK PROSPECTING PTY LTD, CITIGROUP PTY LTD, MERRILL LYNCH (AUSTRALIA) PTY LTD, SAMSUNG C&T CORPORATION, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION

Roy Hill yield delayed in shipping

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Original article by Sarah-Jane Tasker, Andrew Burrell
The Australian – Page: 21 : 4-Dec-15

The first shipment of iron ore from Gina Rinehart’s Roy Hill project in Western Australia was slated to leave on 4 December 2015. However, Roy Hill has advised that the departure of the cargo ship will be delayed by a week due to the requirements of the Port Hedland Port Authority. The iron ore price is edging towards $US40 per tonne, compared with around $US120 a tonne when work on the Roy Hill project commenced. Meanwhile, the Sydney Mining Club has named Rinehart its Miner of the Decade.

CORPORATES
ROY HILL IRON ORE PTY LTD, HANCOCK PROSPECTING PTY LTD, SYDNEY MINING CLUB, PORT HEDLAND PORT AUTHORITY

Fortescue tips iron ore demand, as price falls

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Original article by Peter Ker, Tess Ingram
The Australian Financial Review – Page: 25 : 19-Nov-15

The iron ore price fell by 4.5 per cent to $US45.68 per tonne on 18 November 2015. However, Fortescue Metals Group CEO Nev Power is upbeat about the outlook for iron ore, saying there are signs of an improvement in China’s housing construction market. Power adds that Fortescue is not "actively" considering asset sales at present, and says Chinese steel mills are more likely to look at investing in the sector when the iron ore price begins to rebound.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ATLAS INTERNATIONAL TRAVEL, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, GRANGE RESOURCES LIMITED – ASX GRR, ROY HILL IRON ORE PTY LTD, VALE SA, SAMARCO MINERACAO SA, CLIFFS NATURAL RESOURCES INCORPORATED, RBC CAPITAL MARKETS

Twiggy predicts iron ore prices will fall further

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 21 & 28 : 12-Nov-15

The iron ore price is currently trading at around $US48 per tonne, and Fortescue Metals Group chairman Andrew Forrest has forecast that it could remain below $US50 in the near-term. He has again criticised BHP Billiton and Rio Tinto for ramping up iron ore production during a period of price weakness. Meanwhile, 19.3 per cent of shareholders at Fortescue’s 2015 AGM voted against its remuneration report.

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

Fortescue offers BC Iron some rail access slack

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Original article by Tess Ingram
The Australian Financial Review – Page: 31 : 28-Oct-15

The iron ore price was trading at $US51.03 per tonne on 27 October 2015. A new rail tariff deal between Fortescue Metals Group and BC Iron will reduce the latter’s costs by about $A2.3m if the price remains at around this level. The partners in the Nullagine joint venture will trial a new rail access regime whereby the tariff rate is linked to the iron ore price.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI