IRON ORE – AUSTRALIA

Mining royalties queried

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 28-May-15

Senate economics committee chairman Sam Dastyari has questioned whether the BHP Billiton and Rio Tinto offshore marketing hubs are affecting the Western Australian Government’s revenue from iron ore royalties. He says Premier Colin Barnett should look into the issue, especially given that the Australian Taxation Office is also undertaking an investigation into the practice of using trading hubs in Singapore.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN TAXATION OFFICE, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE

Fortescue’s secret shell in Singapore

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 27-May-15

Fortescue Metals Group chairman Andrew Forrest recently criticised BHP Billiton and Rio Tinto for using marketing hubs in Singapore, which has lower corporate tax rate than Australia. However, it has been revealed that Fortescue itself established a Singapore-based iron ore marketing company in January 2014. The iron ore price has since shed around 55 per cent, which has significantly reduced Fortescue’s profits.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE INTERNATIONAL MARKETING, AUSTRALIAN TAXATION OFFICE, GLENCORE PLC, VALE SA

Abbott tipped to dump ore probe

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Original article by Phillip Coorey
The Australian Financial Review – Page: 6 : 21-May-15

Prime Minister Tony Abbott says the Federal Government has not yet decided whether to hold a parliamentary inquiry into the iron ore industry. However, he stressed that it is inappropriate for governments to intervene in free markets. Abbott had been in favour of an inquiry only days earlier, but some Coalition MPs oppose any such move.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, LIBERAL PARTY OF AUSTRALIA

Big miners spook Abbott

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Original article by Phillip Coorey, Julie-anne Sprague, Mark Ludlow
The Australian Financial Review – Page: 1 & 4 : 20-May-15

Fortescue Metals Group chairman Andrew Forrest says the Australian Government should proceed with a parliamentary inquiry into the iron ore industry. He notes that lower prices for the steel input affects government revenue, and he says the Government should not yield to pressure from BHP Billiton and Rio Tinto. The two big miners have criticised proposals for a federal inquiry, while Prime Minister Tony Abbott has moderated his position on the issue, after previously supporting such an inquiry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

China iron ore demand to fall

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Original article by Angus Grigg, Jacob Greber
The Australian Financial Review – Page: 8 : 11-Mar-15

Former Bureau of Resource & Energy Economics CEO Quentin Grafton notes that major iron ore producers have forecast that Australia’s exports to China will peak in the 2020s. However, he believes that Chinese shipments could be reaching their peak now. J Capital Research MD Tim Murray also suggests that Australian iron ore exports may be approaching their peak, and forecasts that a fall in volumes of up to 10 per cent in 2015

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE. BUREAU OF RESOURCES AND ENERGY ECONOMICS, J CAPITAL RESEARCH COMPANY LIMITED, RIO TINTO LIMITED – ASX RIO, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT, CHINA. GENERAL ADMINISTRATION OF CUSTOMS, CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE, MYSTEEL.COM LIMITED

Arrium chief slams inaction on dumping

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Original article by Tim Binsted
The Australian Financial Review – Page: 26 : 19-Feb-15

Australian-listed steelmaker and iron ore miner Arrium has posted a 2014-15 interim loss of $A1.5bn. The result was marred by $A1.3bn worth of impairment charges associated with its iron ore assets. The group’s mining division posted operating earnings of $A77m, compared with $A423m previously. CEO Andrew Roberts has urged the Anti-Dumping Authority to act more quickly to curb the importation of low-cost steel

CORPORATES
ARRIUM LIMITED – ASX ARI, AUSTRALIA. ANTI-DUMPING AUTHORITY, ALLAN GRAY AUSTRALIA PTY LTD, SOUTHERN IRON PTY LTD

Rio’s high iron ore volume fends off rivals, says Harding

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 10-Oct-14

Rio Tinto plans to ramp up its iron ore output from around 295 million tonnes per year to 360 million tonnes, despite the recent sharp decline in the price of the steel input. Andrew Harding, the head of Rio’s iron ore division, says the iron ore price would rally in the short-term if his company shelved its expansion strategy. However, he argues that some 32 iron ore projects worldwide would go ahead in the wake of such a decision by Rio, which would ultimately affect the long-term price of iron ore

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

BHP’s big cost crusher

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 18 : 7-Oct-14

BHP Billiton will invest nearly $A2bn to increase its iron ore exports from 225 million tonnes in 2014-15 to 290 million tonnes by mid-2017. The resources giant aims to reduce its cost per tonne to less than $A20, and it will seek to displace Rio Tinto as the lowest-cost iron ore exporter to China. In 2013 Rio Tinto unveiled a strategy to increase its iron ore exports to around 330 million tonnes, eventually rising to 360 million

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, PENGANA CAPITAL LIMITED

Resource exports to dip before a pick-up

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Original article by David Uren
The Australian – Page: 20 : 25-Sep-14

Australia’s Bureau of Resources & Energy Economics forecasts 43 per cent growth in the nation’s earnings from resources exports in the next four years. LNG exports are expected to be a key driver of earnings growth over this period, while the agency forecasts that coal and iron ore prices will rebound in the next several years. Earnings from resources exports are forecast to fall by 1.4 per cent in 2014 before rising by 13.4 per cent in 2015

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, WESTPAC BANKING CORPORATION – ASX WBC

Arrium plunge in wake of raising

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 19 : 19-Sep-14

The share price of steel and iron ore miner Arrium fell on 18 September 2014 after its capital raising. The company wanted to raise $A754 million. However, only 79 per cent of institutional shareholders participated, raising $A465 million. Arrium’s stock dropped by $A0.0165 to a record low of $A0.40

CORPORATES
ARRIUM LIMITED – ASX ARI, BHP BILLITON LIMITED – ASX BHP, ALLAN GRAY AUSTRALIA PTY LTD