IRON ORE – WESTERN AUSTRALIA

Fortescue pledge to hammer costs

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 18-Feb-15

Australian-listed Fortescue Metals Group has posted a 2014-15 interim net profit of $US331m, which is 81 per cent lower than previously. The group received an average of $US66 per tonne for its iron ore in the half-year, compared with the benchmark price of $US82. CFO Stephen Pearce says Fortescue hopes to reduce its cash costs to $US20 per tonne in the next 15 months. Shareholders will received a half-year dividend of $A0.03

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

Roy Hill delays put schedule in doubt

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 16-Feb-15

The Roy Hill iron ore project in Western Australia is slated to commence shipments in September 2015. However, CEO Barry Fitzgerald has conceded that some elements of the $A10bn project have been hit by delays. A series of safety problems since mid-2014 have contributed to the delays, and some analysts believe that the project will not reach full capacity for some time

CORPORATES
ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, PATERSONS SECURITIES LIMITED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Atlas boss backs royalty easing

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Original article by Paul Garvey
The Australian – Page: 19 : 21-Jan-15

Atlas Iron has advised that it lost around $US3 for each tonne of iron ore that it shipped in the December 2014 quarter, due to the sharp decline in the price of the steel input. MD Ken Brinsden has welcomed the Western Australian Government’s temporary measure of a 50 per cent rebate on iron ore royalties for smaller producers. He adds that the royalty relief should boost Atlas’s quarterly cash flow by about $A8m in 2015

CORPORATES
ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Mine probe over poisoned fruit

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Original article by Alex Massey
The West Australian – Page: 17 : 19-Dec-14

Western Australian police are investigating allegations that fruit supplied to workers at the Roy Hill iron ore mine was poisoned. A contractor on the site reported that a piece of fruit he was eating looked discoloured and had a bad taste, although he suffered no ill-effects. Several workers have claimed that the fruit was laced with cyanide, which is not used at the site, although police have yet to confirm the nature of the chemical involved

CORPORATES
ROY HILL IRON ORE PTY LTD, WESTERN AUSTRALIAN POLICE SERVICE, WESTERN AUSTRALIA. DEPT OF HEALTH

Test for Rio spending

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 28-Nov-14

Paul Young of Deutsche Bank believes that Rio Tinto’s investor briefing on 28 November 2014 will include plans to proceed with the Silvergrass iron ore mine in Western Australia. He expects Rio’s board to approve the greenfields mine during the December quarter, despite its recent moves to reduce capital expenditure. Rio aims to increase annual iron ore exports from 290 million tonnes to 360 million. Silvergrass is expected to boost output to about 330 million tonnes

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC, AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, CLSA AUSTRALIA PTY LTD, DOMINION DIAMOND CORPORATION

Rio gets EPA approval for Pilbara mine

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 & 26 : 19-Nov-14

Rio Tinto has received approval from the Western Australian Environmental Protection Authority for its Koodaideri iron ore mine in the Pilbara region. The approval is subject to a number of conditions. The new mine is forecast to yield some 70 million tonnes of iron ore each year, but Glyn Lawcock of UBS says Rio Tinto can achieve its annual target of 360 million tonnes without the mine’s contribution

CORPORATES
RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG, BHP BILLITON LIMITED – ASX BHP, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, MOUNT BRUCE MINING PTY LTD

Setback for Rinehart in dispute over royalties

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Original article by Leo Shanahan
The Australian – Page: 21 : 17-Sep-14

A court decision will reduce iron ore royalties for Hancock Prospecting and Wright Prospecting by $A80 million. The companies wanted $A200 million from Rio Tinto, in a dispute stemming from royalty agreements made in the 1960s with Hamersley Iron, now a subsidiary of Rio Tinto. Part of Rio’s appeal was dismissed, but the court found that the joint venture Hanright was not entitled to royalties from the Channar agreement

CORPORATES
RIO TINTO LIMITED – ASX RIO, HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, HAMERSLEY IRON PTY LTD, HIGH COURT OF AUSTRALIA

Rinehart hints Roy Hill may export early

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Original article by Peter Ker, Ben Butler
The Australian Financial Review – Page: 17 : 3-Sep-14

Hancock Prospecting has previously indicated that it expects to commence exporting iron ore from its Roy Hill project in September 2015. However, mining magnate Gina Rinehart has advised that exports could begin ahead of schedule. Meanwhile, Hancock Prospecting has revealed that it has ceased all exploration activities in Mongolia and no longer has any commercial interests in the country

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL IRON ORE PTY LTD, RIO TINTO LIMITED – ASX RIO, SOUTHGOBI RESOURCES LIMITED, MISSISSIPPI STATE UNIVERSITY, LINKEDIN LIMITED, ASPIRE MINING LIMITED – ASX AKM, GUILDFORD COAL LIMITED – ASX GUF, SAMSUNG C&T CORPORATION

BHP surge sets stage for buyback

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 & 24 : 24-Jul-14

BHP Billiton expects its iron ore output for 2014-15 to top 245 million tonnes, after production in the Pilbara region of Western Australia for 2013-14 rose to about 225 million tonnes. Most analysts had forecast that output for 2014-15 will be around 230 million tonnes. Glyn Lawcock of UBS says the upbeat production forecast could prompt BHP to reveal a share buyback program when its 2013-14 financial results are released in August 2014

CORPORATES
BHP BILLITON LIMITED – ASX BHP|UBS HOLDINGS PTY LTD|RIO TINTO LIMITED – ASX RIO|FORTESCUE METALS GROUP LIMITED – ASX FMG|VALE SA|DEUTSCHE BANK AG|PENGANA CAPITAL LIMITED