IRON ORE – WESTERN AUSTRALIA

Twiggy changes his tune as Fortescue plans for iron boost

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 18-Jul-17

Planning documents show that Fortescue Metals Group proposes to commence construction work on its Eliwana iron ore mine in the Pilbara in mid-2019, with production slated to commence in 2020 if the project proceeds. The mine would have a maximum production capacity of 50 million tonnes per year, although Fortescue expects annual output of around 30 million tonnes. Fortescue is also considering the Nyidinghu deposit to replace the Firetail mine, which has annual capacity of around 27 million tonnes.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Miner may cut iron ore guidance: UBS

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 11-Jul-17

UBS estimates that Rio Tinto’s Western Australian iron ore exports fell by nearly eight per cent month-on-month in June 2017, to 24.8 million tonnes. The firm also estimates that Rio Tinto’s iron ore export volumes for the first half of 2017 totalled 154 million tonnes, which puts it well below the full-year target of 330 to 340 million tonnes. As a result, UBS suggests that Rio Tinto may scale back its full-year guidance when its production results for the second quarter are released in mid-July.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, BLOOMBERG LP, VALE SA

Fortescue tipped to hit export guidance

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 6-Jul-17

Fortescue Metals Group had forecast that it would export about 170 million tonnes of iron ore in 2016-17. Analysts expect its export volumes to be at the higher of its guidance, although its exports for the June quarter will need to be around 44 million tonnes. BHP Billiton’s iron ore shipments for the year are also expected to be at the higher end of its guidance. Meanwhile, Peter O’Connor of Shaw & Partners expects the iron ore price to retreat to around $US50 per tonne in the second half of 2017.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, ROY HILL HOLDINGS PTY LTD

Fortescue confident of even more cost cutting

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 29-Jun-17

Iron ore miner Fortescue Metals Group aims to achieve a "C1" unit cost of production of between $US12 and $US13 per tonne in 2016-17, compared with $U50/tonne several years ago. Greg Lilleyman, Fortescue’s director of operations, is confident that the company can further reduce its costs. While he acknowledges that it will be hard to match its recent cost performance in coming years, he says there are still opportunities for more cost savings. Lilleyman also expects the price discount of lower-grade iron compared with the benchmark price to narrow.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO

Flower power: state blocks iron ore projects

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Original article by Paul Garvey
The Australian – Page: 27 : 29-Jun-17

Minerals Resources remains hopeful that its J5-Bungalbin East iron ore project will be approved by Western Australia’s Environment Minster, Stephen Dawson. The state’s Environmental Protection Authority has recommended that both J5-Bungalbin East and Sinosteel’s Blue Hills project should be blocked, citing their likely impact on rare wildflowers and microscopic subterranean prawns. The Wilderness Society notes that the EPA has ruled against the projects twice in the last two years.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, SINOSTEEL CORPORATION, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, WESTERN AUSTRALIA. DEPT OF ENVIRONMENT AND CONSERVATION, THE WILDERNESS SOCIETY WA INCORPORATED, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED

Fortescue conveyor belts to lower costs

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 28-Jun-17

The introduction of self-driving haulage trucks has increased productivity at Fortescue Metals Group’s Solomon mining hub by about 20 per cent since 2012. The pure-pure iron ore miner has 56 autonomous trucks at Solomon, with plans to convert another 12. Fortescue will also begin converting 100 trucks at its Chichester hub in fiscal 2018. It also intends to undertake a trial of relocatable overland conveyor belt technology at the Cloudbreak mine, which could allow its fleet of haulage trucks to be reduced.

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

BHP puts pedal to metal for South Flank mine plan

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 31 : 27-Jun-17

BHP Billiton has signalled that it is likely to make a final investment decision on its South Flank iron ore project in Western Australia by mid-2018. BHP has allocated $US184m in initial funding for the project, which is forecast to cost between $US2.4bn and $US3.2bn to develop. South Flank is BHP’s preferred option to replace the Yandi iron ore mine, which produces 80 million tonnes a year but is approaching the end of its mine life.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NATIONAL PARTY OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Timely break for Atlas, MinRes

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Original article by Paul Garvey
The Australian – Page: 31 : 23-Jun-17

A six-month extension of the discount on the fees paid by mining companies to use Port Hedland’s Utah Point berth will result in cost savings of about $A12.5m for both Atlas Iron and Mineral Resources. The discount of $A2.50 per tonne had been slated to end in June. However, BHP Billiton faces increased costs of about $A9m a year after the Western Australian Government announced that fees at most ports in the Pilbara will increase. The cost to Rio Tinto and Fortescue Metals Group will be around $A13m and $A6.8m respectively.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. DEPT OF TRANSPORT, NATIONAL PARTY OF AUSTRALIA

Atlas shelves Corunna project

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Original article by Paul Garvey
The Australian – Page: 20 : 22-Jun-17

Atlas Iron will increase production at its Mount Webber iron ore project by two million tonnes a year after putting its Corunna Downs project on hold. The iron ore price has fallen by about 40 per cent since Atlas approved Corunna Downs in early 2017. MD Cliff Lawrenson says it is still an important project for Atlas, and it will resume development of Corunna Downs when the iron ore price rebounds. Production at the company’s Abydos mine will end in October.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HARTLEYS LIMITED

Rio’s Silvergrass development on track for first iron ore this year

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 13-Jun-17

Production at Rio Tinto’s Silvergrass iron ore mine in Western Australia is slated to resume in July 2017, after being put on hold earlier in the year. Meanwhile, the final stage of the Silvergrass project is expected to be completed in the December quarter, which will double the mine’s annual output to 20 million tonnes. The final stage of the project includes construction of a crusher and a nine-kilometre conveyor.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ROY HILL HOLDINGS PTY LTD