IRON MINES AND MINING

Fortescue unperturbed by reports of Vale talks

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 21-Jun-16

A Bloomberg report has suggested that Brazil’s Vale may sell a stake in its iron ore assets to Asian investors for up to $US7bn. Australian-listed Fortescue Metals Group has downplayed the likely impact of such a deal on its proposed iron ore blending joint venture with Vale. A Fortescue spokesman has reiterated that the group hopes to commence marketing the blended product to Chinese customers in the second half of 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, BELL POTTER SECURITIES LIMITED

Pressure on lower grade iron ore miners as discount widens

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

The benchmark spot price of iron ore has shed 23 per cent since the start of May 2016. Meanwhile, the discount on lower-grade iron ore has increased from 9.8 per cent in early January to 21 per cent in mid-June, after peaking at 26 per cent in late May. Peter O’Connor of Shaw & Partners says the widening price discount is having a big impact on producers of lower-grade iron ore.

CORPORATES
SHAW AND PARTNERS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, MORNINGSTAR PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

No relief in sight for iron ore bulls

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 28 : 3-Jun-16

Morgan Stanley notes that global iron ore production will rise by 41 million tonnes in the second half of 2016, followed by an additional 78 million tonnes in 2017. The looming increase in global supply does not bode well for the price of the steel input, which has fallen by more than 30 per cent since late April 2016. BHP Billiton, Rio Tinto and Vale are among the iron ore producers that will increase their output in coming years, as new projects or mine expansions reach full production capacity.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, ROY HILL IRON ORE PTY LTD, SAMARCO MINERACAO SA

Robot train glitches hit Rio output

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 20-Apr-16

Rio Tinto has advised that its global iron ore shipments for the March 2016 quarter totalled 80.8 million tonnes. Shipments from the Pilbara region of Western Australia rose by 12 per cent year-on-year to 79.9 million tonnes. Meanwhile, Rio Tinto expects iron ore production in 2017 to be within the range of 330 million to 340 million tonnes, which represents a decline of up to 20 million tonnes. The lower guidance is said to be linked to problems with its Autohaul driverless trains project.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG

Rio, BHP could cut iron ore guidance

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 19-Apr-16

BHP Billiton and Rio Tinto will shortly release their production data for the March 2016 quarter. Paul Young of Deutsche Bank forecasts that BHP’s output of its four main commodities will be flat or lower than previously. Glyn Lawcock of UBS says BHP may have to reduce its iron ore production guidance for 2015-16, as it may not meet its full-year forecast for its Pilbara operations for output of 270 million tonnes. He also expects Rio Tinto’s iron ore production to have fallen.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, SAMARCO MINERACAO SA, FORTESCUE METALS GROUP LIMITED – ASX FMG

Fortescue’s Vale deal good for costs, but concerns remain

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Original article by Amanda Saunders, James Thomson
The Australian Financial Review – Page: 19 & 24 : 10-Mar-16

Iron ore miner Fortescue Metals Group aims to reduce its cash costs to $US13 per tonne by mid-2016, having slashed its cost of production from about $US32/tonne to around $US16 in the last year. The proposed iron ore blending joint venture with Brazilian rival Vale may allow Fortescue to further reduce its cash costs. Paul Young of Deutsche Bank notes that Chinese competition regulators may oppose the alliance, although Fortescue CEO Nev Power is confident that this will not be an issue.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, DEUTSCHE BANK AG, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JEFFERIES AND COMPANY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI

Rivals ‘hanging on by fingernails’

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Original article by Jesse Riseborough, Jonathan Ferro
The Australian Financial Review – Page: 16 : 17-Dec-15

The iron ore price has shed 45 per cent so far in 2015, falling below $US40 per tonne in early December. Rio Tinto CEO Sam Walsh says many iron ore producers are struggling to remain viable given the current price of the steel input, and it is inevitable that some will withdraw from the sector. Walsh adds that Rio Tinto’s record low debt means it is well-placed to prosper in 2016.

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

Iron ore to fall further, says Albanese

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 30-Oct-15

The iron ore price fell to $US49.95 per tonne on 28 October 2015, and Vedanta Resources CEO Tom Albanese expects it to come under more downward pressure. He cites factors such as China’s slowing economy and the nation’s falling steel production, which has coincided with increased iron ore output in Australia and Brazil. BC Iron and Grange Resources are particularly vulnerable to a lower iron ore price, as their break-even prices are above $US50/tonne.

CORPORATES
VEDANTA RESOURCES PLC, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ANGLO AMERICAN PLC, VALE SA, UBS HOLDINGS PTY LTD, CHINA METALLURGICAL INDUSTRY PLANNING ASSOCIATION, SUPREME COURT OF INDIA