IRON ORE – AUSTRALIA

Fortescue Metals looks to M&A for growth

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 25-Feb-16

Fortescue Metals Group has posted a 2015-16 interim net profit of $US319m, compared with $US331m previously. Revenue fell from $US4.8bn to $US3.3bn. CEO Nev Power says the iron ore group is open to acquisitions if appropriate opportunities become available, and it has not ruled out diversifying into other commodities. Fortescue has also signalled that it will seek to reduce its break-even price for exports to China to $US28.80 per tonne by mid-2016, but stresses that it will not try to compete with BHP Billiton and Rio Tinto to become the lowest-cost exporter.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Cut in steel production a new blow for miners

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Original article by Scott Murdoch, Wang Yuanyuan
The Australian – Page: 15 : 12-Jan-16

The Chinese province of Hebei will reduce its iron and steel production by 10 million tonnes and eight million tonnes respectively in 2016. Hebei accounts for about 25 per cent of the nation’s iron and steel production, as well as the bulk of the iron ore exported from Australia to mainland China. The production cutbacks have been attributed to factors such as an oversupply and an attempt to address the issue of pollution in China.

CORPORATES
XINHUA NEWS AGENCY, TSINGHUA UNIVERSITY, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE

Iron will lets Harding keep Rio fighting fit

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Original article by Amanda Saunders
The Australian Financial Review – Page: 53 & 54 : 23-Dec-15

The head of Rio Tinto’s iron ore division, Andrew Harding, downplays suggestions that he could become the resources giant’s next CEO. Rio Tinto’s earnings are heavily weighted toward iron ore, and Harding has gained a high public profile in 2015 amid the downturn in the iron ore price, criticism of the iron ore expansion plans of Rio Tinto and BHP Billiton, and speculation that Glencore will make a new takeover bid for Rio Tinto.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGO INVESTMENTS LIMITED – ASX ARG

Price fall no bar to Rio plans

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Original article by Matt Chambers
The Australian – Page: 18 : 15-Dec-15

Rio Tinto will press ahead with plans to increase its low-cost iron ore production capacity by 20 million tonnes over the next few years, despite the downturn in the iron ore price. A spokesman argues that any move by Australian iron ore producers to reduce output will allow overseas rivals to gain market share at the expense of local miners. Fortescue Metals Group founder Andrew Forrest has again called for Rio Tinto and BHP Billiton to reduce their iron ore production.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, VALE SA, UBS HOLDINGS PTY LTD, ROY HILL IRON ORE PTY LTD

Price fall to test Fortescue’s bid to reduce debt

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Original article by Paul Garvey
The Australian – Page: 16 : 14-Dec-15

Australian-listed Fortescue Metals Group has repurchased some $A1.1bn of its debt so far in 2015. This includes paying $US618m for debt with a face value of $US715m in November. The iron ore producer has reduced its annual interest costs by $US88m by repurchasing its debt. Meanwhile, the downturn in the iron ore price has prompted speculation that Atlas Iron could breach its debt covenants, while BC Iron recently advised that its Nullagine mine will be shut down.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, BLOOMBERG LP

Gold is ‘saving grace’ of miner mid-tier ranks

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Original article by Tess Ingram
The Australian Financial Review – Page: 29 : 10-Nov-15

A report from PricewaterhouseCoopers shows that the combined market capitalisation of Australia’s 50 largest mid-tier mining companies fell by 1.5 per cent in 2014-15, to $A36.2bn. The "Aussie Mine" report also notes that gold producers accounted for 38 per cent of mid-tier companies’ market capitalisation, following strong growth in revenue. The downturn in the price of coal and iron ore had a significant impact on the revenue and market capitalisation of mid-tier companies in these sectors.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

BHP iron ore to grow despite tough 2016

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 23-Jul-15

BHP Billiton’s iron ore production topped 254 million tonnes in 2014-15, and the group expects to increase output by six per cent in the 2015-16 financial year. BHP anticipates lower production of copper, petroleum, metallurgical coal and thermal coal in 2015-16, although Glyn Lawcock of UBS expects production of most of these commodities to rise in the following year. BHP aims to reduce its iron ore production costs to $US16 per tonne in 2015-16, compared with its break-even price of about $A32 per tonne.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, NICKEL WEST

Atlas founder keeps faith as raising looms

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Original article by Tess Ingram, Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 8-Jul-15

Atlas Iron’s current shareholders have agreed to contribute $A15m to the iron ore producer’s $A180m capital raising. Atlas MD David Flanagan is confident that the raising will be well-received, despite the 20 per cent fall in the iron ore price in recent weeks. Flanagan has concluded an international roadshow, and will shortly pitch the capital raising to Australian retail and institutional investors. Atlas will offer the new shares at $A0.05 apiece.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PENGANA CAPITAL LIMITED

Rio iron ore boss keeps eye on prize

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 4-Jun-15

Rio Tinto’s iron ore operations boasted a cash cost of about $US20 per tonne in the first half of 2014-15, but the group aims to reduce this to $US17/tonne in the second half. Andrew Harding, the head of the iron ore division, concedes that it is getting harder to further reduce costs after Rio’s aggressive push in recent years. Rio is also negotiating more favourable contracts with its suppliers and introducing automation technology.

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

Fortescue pushes for ore inquiry in WA

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Original article by Amanda Saunders
The Australian Financial Review – Page: 11 : 2-Jun-15

Fortescue Metals Group is expected to lobby Western Australia’s economics standing committee to hold a parliamentary inquiry into the iron ore industry. Opposition MP Bill Johnston failed in a recent bid for parliament to hold such an inquiry, while Premier Colin Barnett holds the view that a parliamentary inquiry would not be appropriate. The Australian Government has also rejected Fortescue’s request for a federal inquiry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. LEGISLATIVE ASSEMBLY STANDING COMMITTEE ON ECONOMICS AND INDUSTRY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, MINERALS COUNCIL OF AUSTRALIA