MINING CORPORATIONS – AUSTRALIA

Payment call puts Paladin in fight to survive

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Original article by Tess Ingram
The Australian Financial Review – Page: 30 : 14-Jun-17

Paladin Energy’s proposed debt restructuring is in doubt after an independent expert ruled that the embattled uranium miner must repay Electricite de France around $US277m within 30 days. The France-based energy utility is a major buyer of uranium from Paladin, and its support is crucial to the Australian-listed group’s deal to restructure its debt. Matthew Keane of Argonaut Securities says Paladin could face insolvency unless it can secure a standstill agreement. Paladin’s debt totalled $US665m at the end of the March 2017 quarter.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ELECTRICITE DE FRANCE, ARGONAUT SECURITIES PTY LTD

MacKenzie backed to head BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 30 : 14-Jun-17

Brenton Saunders of BT Investment management says former Amcor CEO Ken MacKenzie is the wealth manager’s preferred candidate to succeed Jac Nasser as BHP Billiton’s chairman. Saunders argues that unlike the other two leading candidates, MacKenzie was not on the BHP board when the resources giant made its ill-fated investment in US shale assets in 2011. Saunders has also praised MacKenzie’s expertise in terms of capital allocation and management. Lindsay Maxsted and Malcolm Broomhead are widely regarded as the other likely contenders to replaced Nasser.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AMCOR LIMITED – ASX AMC, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC, ABERDEEN ASSET MANAGEMENT LIMITED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT

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

The battle for BHP: Broomhead, Maxsted & MacKenzie

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Original article by Patrick Durkin
The Australian Financial Review – Page: 11 : 13-Jun-17

BHP Billiton is said to have had a list of 1,200 potential candidates to succeed chairman Jac Nasser. However, three current directors – Ken MacKenzie, Malcolm Broomhead and Lindsay Maxsted – are believed to be the final contenders for the role. Former BHP chairman Don Argus stresses the need for the succession process to have integrity. It will be decided via a secret ballot at a board meeting in Chile in coming days.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, HEIDRICK AND STRUGGLES, AMCOR LIMITED – ASX AMC, WESTPAC BANKING CORPORATION – ASX WBC, ORICA LIMITED – ASX ORI, TRANSURBAN GROUP LIMITED – ASX TCL, ADAMANTEM CAPITAL, AMERICAN SECURITIES, ELLIOTT MANAGEMENT CORPORATION, DOW CHEMICAL COMPANY

Survey skewers BHP as activists eye ‘major’ board changes

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Original article by Peter Ker, Matthew Stevens
The Australian Financial Review – Page: 15 : 7-Jun-17

A survey carried out by Global Proxy Solicitation has found that nearly 48 per cent of BHP Billiton’s retail shareholders agree that a restructuring of the resources group is needed. In contrast, only 15.33 per cent oppose Elliott Associates’ push for a restructuring. Meanwhile, more than 36 per cent of respondents said BHP CEO Andrew Mackenzie has dealt with the activist hedge fund effectively. Global Proxy Solicitation had identified BHP as a potential target for activist investors in a report that was released in November 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, GLOBAL PROXY SOLICITATION PTY LTD, MORROW SODALI GLOBAL LLC, TRIBECA INVESTMENT PARTNERS PTY LTD, RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION

Investors betting big on potash

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 5-Jun-17

BHP Billiton forecasts that global demand for potash will increase 2-3 per cent by 2030, in line with expectations of rising population growth and demand for crop foods. BHP hopes to commence production at its Jansen potash project in Canada by 2022, while Kore Potash is also aiming for a 2022 start date for its Kola potassium chloride project. Billionaires Gina Rinehart and Kerry Stokes have recently made investments in potash projects.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KORE POTASH LIMITED – ASX K2P, HANCOCK PROSPECTING PTY LTD, SIRIUS MINERALS PLC, BC IRON LIMITED – ASX BCI, ANGLO AMERICAN PLC, MONDI GROUP, SUMMIT PRIVATE EQUITY, SQM

BHP, Rio face fresh tax threat

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 1 & 10 : 29-May-17

The Western Australian Government may seek to have BHP Billiton and Rio Tinto pay their iron ore production levies upfront for a number of years, as part of its strategy to address the state’s rising debt and Budget deficit. Premier Mark McGowan says buying out the lease rental fee of $A0.25 per tonne is one of the options under consideration. Peter Strachan of StockAnalysis questions whether BHP and Rio Tinto would agree to such a deal, given the difficulty of forecasting their annual production rates over the long-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NATIONAL PARTY OF AUSTRALIA, STOCK ANALYSIS AUSTRALASIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, AUSTRALIAN LABOR PARTY

Billiton buried in BHP makeover

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Original article by Matt Chambers
The Australian – Page: 1 & 2 : 15-May-17

BHP Billiton will launch a new advertising campaign which emphasises its heritage as an Australian company that was founded in Broken Hill. The $A10m print and TV advertising campaign was developed in response to concern that people are losing trust in large companies. The Samarco tailings dam disaster in Brazil in November 2015 was also a catalyst for the new ad campaign, which uses the slogan "Think big" and refers to the company solely as BHP. It intends to drop Billiton from its name.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BIG RED COMMUNICATIONS GROUP PTY LTD, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIA. DEPT OF THE TREASURY

Fortescue refinances to fortify its books

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Original article by Paul Garvey
The Australian – Page: 42 : 10-May-17

Fortescue Metals Group has raised $US1bn ($1.36bn) via the issuance of five- and seven-year bonds. It was the pure-play iron ore miner’s first foray into the bond market for more than two years, and the proceeds will be used to repay some $A976m worth of debt that is due in 2019. Fortescue’s remaining debt will not have to be repaid until at least 2022. Its total debt has fallen below $US4bn, compared with a peak of $US10.7bn.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGONAUT SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

BHP should sell its US shale assets if price is right: analyst

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Original article by Peter Ker
The Australian Financial Review – Page: 11 : 9-May-17

Deutsche Bank’s Paul Young values BHP Billiton’s US shale assets at around $US6.3bn at present. However, he adds that based on the value of recent deals in the sector, BHP could potentially gain around $US9bn for its Eagle Ford and Permian shale assets. He suggests that BHP should hold off divesting the assets until it can get such a price for them. Young favours using the proceeds of such a sale to reduce debt and invest in conventional oil assets and mining projects. Tribeca Investment Partners also recently advocated the sale of BHP’s US shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, TRIBECA INVESTMENT PARTNERS PTY LTD, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION