IRON ORE – WESTERN AUSTRALIA

Fortescue stays disciplined on debt

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

Fortescue Metals Group will reduce the annual interest bill on its debt by $US48m by redeeming some $US577m ($A757.8m) of senior unsecured notes. These notes were due to be redeemed in 2019, but the iron ore group intends to do so on 1 June 2016. CEO Nev Powers says repaying debt will continue to be a priority for Fortescue, which has repaid or redeemed some $US1.7bn worth of debt in the last year.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP joins Rio in cutting iron ore output

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Original article by Matt Chambers
The Australian – Page: 19-20 : 21-Apr-16

BHP Billiton has reduced its forecast for 2015-16 iron ore output in Western Australia by 10 million tonnes, to 240 million tonnes. The downgrade has been attributed to factors such as inclement weather and a railway upgrade and maintenance project. Rio Tinto recently advised that issues associated with its rail automation program will reduce its Pilbara iron ore production in 2017. BHP’s Pilbara operations produced 61.5 million tonnes of iron ore in the March 2016 quarter.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, METAL BULLETIN LIMITED, UBS HOLDINGS PTY LTD, INVESTEC AUSTRALIA LIMITED

Fortescue insists value trumps volume

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 14-Apr-16

Fortescue Metals Group has advised that its iron ore shipments rose by four per cent year-on-year in the March 2016 quarter, to 42 million tonnes. Fortescue has indicated that favourable weather conditions in the June quarter could allow the group to exceed its guidance of 165 million tonnes for 2015-16. The iron ore miner’s net debt fell by $A200m to $A5.9bn during the March quarter, while its cash costs were reduced by six per cent.

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

Fortescue keeps contract in-house to cuts costs

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Apr-16

Downer EDI’s contract to provide mining services at Fortescue Metals Group’s Christmas Creek iron ore mine will not be renewed when it expires in September 2016. Fortescue has already dispensed with mining contractors at its other iron ore mines, and CEO Nev Power says the move will result in further cost reductions. Downer EDI has previously estimated that the contract was worth $A720m, but says its financial results for fiscal 2016 are unlikely to be affected.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, DOWNER EDI LIMITED – ASX DOW, MACMAHON HOLDINGS LIMITED – ASX MAH

Roy Hill iron bound for China

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Original article by Glenda Korporaal
The Australian – Page: 20 : 31-Mar-16

Chinese steelmaker Shougang International will shortly receive its inaugural shipment of iron ore from the Roy Hill project in Western Australia. The first shipment to China is scheduled to arrive at the port of Caofeidian in early April 2016. The Gina Rinehart-backed Roy Hill commenced exports in late 2015, and it is eventually slated to produce 55 million tonnes per annum.

CORPORATES
ROY HILL HOLDINGS PTY LTD, SHOUGANG GROUP, POSCO, ASIAN INFRASTRUCTURE INVESTMENT BANK, HANCOCK PROSPECTING PTY LTD, MARUBENI CORPORATION, CHINA STEEL CORPORATION

Fortescue shrugs off ratings hit

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Original article by Paul Garvey
The Australian – Page: 20 : 16-Mar-16

Shares in Fortescue Metals Group closed just 1.55 per cent lower on 15 March 2016, following a decision by Moody’s to downgrade the iron ore producer’s credit rating. In contrast, BHP Billiton and Rio Tinto shares both fell by 3.4 per cent. Meanwhile, Morgan Stanley has reduced its share price target for Fortescue from $A2.10 to $A1.90 and downgraded its recommendation on the stock to "underweight".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Russian sells off FMG stake

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Original article by Barry FitzGerald
The Australian – Page: 20 : 15-Mar-16

Shares in Fortescue Metals Group closed 2.6 per cent lower at $A2.58 on 14 March 2016, after the iron ore price retreated from recent highs. Meanwhile, Russia-based Magnitogorsk Iron & Steel has trimmed its stake in Fortescue by 0.64 per cent. The group is believed to have sold 20 million shares at $A2.55 apiece. The transaction follows recent speculation that Magnitogorsk could reduce its stake to capitalise on Fortescue’s share price rally in 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MAGNITOGORSK IRON AND STEEL WORKS (MMK), MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, FITCH RATINGS LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, BLOOMBERG LP, CITIGROUP PTY LTD

700 jobs to go as Rio strips its costs

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Original article by Matt Chambers
The Australian – Page: 20 : 3-Mar-16

Rio Tinto has declined to comment on media reports which suggested that it plans to shed between 500 and 700 workers at its iron ore mines in Western Australia. The job cuts are part of its goal to reduce global costs by $US2bn ($A2.6bn) over the next two years. Rio Tinto previously reduced its Western Australian iron ore headcount by 800 in 2015, and its costs have been slashed by $US6.2bn over the last three years.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Iron ore price descends towards Roy Hill’s break-even threshold

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 2-Feb-16

POSCO has estimated that the Roy Hill iron ore project’s break-even price is currently in the low $US40 per tonne range. The South Korean steel producer, which has a 12.5 per cent stake in the project, expects Roy Hill’s marginal cost of production to fall to the mid-$US30/per tonne range when it reaches full capacity in 2017. The benchmark iron ore price has fallen below $US42/per tonne in early February 2016. Fortescue Metals Group’s break-even price is said to be between $US28 and $US32 per tonne.

CORPORATES
ROY HILL IRON ORE PTY LTD, POSCO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, HANCOCK PROSPECTING PTY LTD, CHINA STEEL CORPORATION, MARUBENI CORPORATION, UBS HOLDINGS PTY LTD

Rio eases off its iron ore expansion

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Original article by Matt Chambers
The Australian – Page: 18 : 20-Jan-16

Rio Tinto expects to produce 350 million tonnes of iron ore in Western Australia and Canada in 2016, which is slightly below market forecasts of 355 million tonnes. Total production was 327 million tonnes in 2015, with the Pilbara region accounting for 310 million tonnes. However, Rio had initially flagged Pilbara output of 330 million tonnes. The latest guidance suggests that Rio Tinto may not achieve its Pilbara production target of 335 million tonnes in 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIGROUP PTY LTD, IRON ORE COMPANY OF CANADA, DEUTSCHE BANK AG