IRON ORE – WESTERN AUSTRALIA

No cost surge as Pilbara’s big three plan builds

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 7-Jan-19

NRW Holdings CEO Jules Pemberton says the current iron ore mine construction activity in the Pilbara is different to the boom of 2011-2013. He notes that the new mines being developed by BHP, Rio Tinto and Fortescue Metals Group are to replace existing mines rather than to expand output. Pemberton adds that there are also no signs of an increase in labour costs or a skills shortage in the Pilbara. NRW was recently awarded a $57m contract for work on Fortescue’s Eliwana iron ore mine; the mining and civil contractor is also undertaking work on BHP’s South Flank mine.

CORPORATES
NRW HOLDINGS LIMITED – ASX NWH, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLDING CONTRACTORS PTY LTD

Flinders’ plan to delist angers small holders

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Original article by Paul Garvey
The Australian – Page: 29 : 14-Dec-18

Shares in Flinders Mines were placed in a trading halt on 13 December, after the iron ore producer flagged plans to delist. Chairman Neil Warburton says Flinders’ board considered a number of options for its iron ore project in the Pilbara and felt that going private is the best strategy, as it will allow the company to gain funding from private equity firms and other funds that invest in such projects. The delisting proposal has the support of its major shareholder, Todd Corporation.

CORPORATES
FLINDERS MINES LIMITED – ASX FMS, TODD CORPORATION, BBI INVESTMENT GROUP

Rio approves $3.5bn Pilbara iron ore mine

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Original article by Perry Williams
The Australian – Page: 21 : 30-Nov-18

Rio Tinto has advised that annual production at its new Koodaideri mine in Western Australia’s Pilbara will be 43 million tonnes, compared with previous expectations of 40 million tonnes. There is also scope to increase output by 27 million tonnes in the second phase of the project. The cost of developing Koodaideri has risen by $US400m to $US2.6bn ($A3.5bn) since the initial feasibility study estimate was released two years ago. Production is slated to commence in 20201.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Sentiment turns for Fortescue

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Original article by Paul Garvey
The Australian – Page: 19 : 29-Nov-18

Fortescue Metals Group expects to benefit from the recent decline in Chinese steel producers’ margins. Danny Goeman, the pure-play iron ore miner’s director of sales and marketing, notes that lower margins in the sector tend to boost demand for lower-grade iron ore, adding that this trend has occurred in recent days. The renewed demand for lower-grade ore has coincided with the first shipment of Fortescue’s higher-grade West Pilbara fines product, which is slated for December.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Twiggy’s hydrogen kickstart

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Original article by Mark Ludlow
The Australian Financial Review – Page: 5 : 23-Nov-18

Fortescue Metals Group chairman Andrew Forrest says the iron ore miner is keen to be involved in the development of hydrogen as a low-emissions fuel. Fortescue and the CSIRO have signed a $20 million agreement to develop and commercialise CSIRO technology that extracts pure hydrogen from ammonia. Mercedes-Benz, Honda, Hyundai and Toyota are all developing hydrogen-powered cars. Forrest has described hydrogen fuel as an "energy revolution".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CSIRO, MERCEDES-BENZ AG, HONDA MOTOR CORPORATION, HYUNDAI MOTOR COMPANY LIMITED, TOYOTA MOTOR CORPORATION, TESLA INCORPORATED

Forrest says Fortescue will embrace new energy, AI

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 16-Nov-18

Fortescue Metals Group chairman Andrew Forrest says the pure-play iron ore miner views thermal coal as a 20th century energy source and it will only invest in "new energy". Forrest adds that Fortescue is also committed to investing in automation and artificial intelligence, and says such technology should be embraced rather than feared. Fortescue is deploying automated haulage trucks at its iron ore mines in the Pilbara. A decision on a proposed expansion of its Iron Bridge magnetite concentrate joint venture is expected by the end of 2018.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CHINA BAOWU STEEL GROUP CORPORATION LIMITED, FORMOSA PLASTICS CORPORATION

Mystery still shrouds BHP derailment

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 13-Nov-18

BHP Billiton has resumed rail operations in Western Australia’s Pilbara region after it was forced to detail an iron ore train on 5 November. The cause of the incident is still being investigated, but sources within BHP have suggested that the problem may have been linked to maintenance issues. Meanwhile, heavy rain and flash flooding is believed to have contributed to the derailing of an empty iron ore train that was returning to Mineral Resources’ Koolyanobbing mine on 11 November. The company does not expect the incident to affect the mine’s output.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERAL RESOURCES LIMITED – ASX MIN, BROOKFIELD ASSET MANAGEMENT INCORPORATED, ARC INFRASTRUCTURE

Rinehart claims she sits top of nation’s tax table

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 2-Nov-18

The annual report of Gina Rinehart’s Hancock Prospecting shows that its profit rose by 28 per cent to $1.37m in 2017-18, with revenue from its Roy Hill iron ore project rising from $4.45bn to more than $6bn. Hancock paid $860 million in federal and state taxes during 2017-18, compared with $698m in the previous financial year, and it has paid $5 billion in taxes over the last eight years. Rinehart has issued a statement claiming that she pays more tax than any other Australian.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIAN OUTBACK BEEF, S KIDMAN AND COMPANY PTY LTD, SIRIUS MINERALS PLC, RIVERSDALE RESOURCES LIMITED, RIO TINTO LIMITED – ASX RIO, WRIGHT PROSPECTING PTY LTD, SUPREME COURT OF WESTERN AUSTRALIA, FEDERAL COURT OF AUSTRALIA

Fortescue up after Forrest buys shares

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 2-Nov-18

Fortescue Metals Group chairman Andrew Forrest has increased his stake in the pure-play iron ore miner from 32.46 per cent to 33.87 per cent after buying 3.95 million shares in late October. Fortescue’s shares closed at a 10-week high of $4.11 on 1 November, and the stock has gained 13 per cent since Forrest’s on-market share transaction. Fortescue has also repurchased about $7m worth of share since it announced a $500 million share buyback in mid-October.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MINDEROO PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, RIO TINTO LIMITED – ASX RIO

Billionaires battle over small change

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 30-Oct-18

Hancock Prospecting and Wright Prospecting have been involved in a dispute over the Rhodes Ridge iron ore deposit for more than 15 years. The deposit has estimated reserves of 5.3 billion tonnes of high-grade iron ore, and it is valued in the billions of dollars. It is owned by Wright Prospecting and Rio Tinto, and it could be developed in the next 10 years. The Western Australian Court of Appeal has ruled that Hancock Prospecting does not have to pay Wright Prospecting special costs.

CORPORATES
HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, RIO TINTO LIMITED – ASX RIO, COURT OF APPEAL (WESTERN AUSTRALIA), SUPREME COURT OF WESTERN AUSTRALIA