MINING CORPORATIONS – AUSTRALIA

New Rio boss signals end of iron ore wars

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Original article by James Chessell, James Thomson
The Australian Financial Review – Page: 21 & 24 : 4-Jul-16

BHP Billiton, Rio Tinto and Vale have significantly increased iron ore production in recent years. However, Rio’s new CEO Jean-Sebastien Jacques has indicated that rather than increasing output, the group will prioritise productivity and operational gains at its iron ore mines in the Pilbara region of Western Australia. Jacques also says Rio would be interested in acquiring quality assets, but only at the right price, and the group’s focus is likely to be on expanding its existing mines.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, CHINA. ASSETS SUPERVISION AND ADMINISTRATION COMMISSION, ANGLO-ASIA PROPERTY, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, GLENCORE PLC, CHINA MOLYBDENUM COMPANY LIMITED, BARRICK GOLD CORPORATION, ANTOFAGASTA PLC

Rio cuts ties with Bougainville

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Original article by Barry FitzGerald
The Australian – Page: 21 & 24 : 1-Jul-16

Australian-listed Rio Tinto has transferred its stake in Bougainville Copper Limited to the Bougainville and Papua New Guinea governments. Rio Tinto’s Chris Salisbury says the resources giant considered a number of options regarding the Panguna copper and gold mine on Bougainville island before deciding to exit the project by distributing its shareholding to the provincial and national governments.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BOUGAINVILLE COPPER LIMITED – ASX BOC, BHP BILLITON LIMITED – ASX BHP

MD exits after putting Atlas back on the map

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Original article by Barry FitzGerald
The Australian – Page: 21 : 29-Jun-16

Atlas Iron MD David Flanagan has stepped down after 12 years with the iron ore miner. Flanagan had been the group’s inaugural MD in 2004 and took up the role again in mid-2015 after a stint as chairman. He says it is the right time for him to leave, following Atlas’s recent deal to restructure its debt. This reduced the company’s structured debt to just $A180m. Atlas shares closed at $A0.09 on 28 June 2016.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MURDOCH UNIVERSITY

BHP has high hopes for Trinidad oil prospects

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 29-Jun-16

BHP Billiton is optimistic that an oil well drilling program in Trinidad will yield positive results. The resources group is drilling three well in the region, with plans for another five wells later on. The Caribbean, the Gulf of Mexico and the Beagle Sub-basin off the coast of Western Australia are the focus of BHP’s oil exploration activities for the next several years. The petroleum division will account for the bulk of BHP’s exploration budget for 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

Fortescue on track to hit gearing target

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Original article by Paul Garvey
The Australian – Page: 21 : 24-Jun-16

Fortescue Metals Group’s early repayment of debt over the course of 2015-16 will reduce its interest costs by about $US186m a year. The iron ore miner advised on 23 June 2016 that it has repaid an additional $US500m ($A663.4m) worth of debt. It has now repaid a total of $US2.9bn so far in 2015-16, and CFO Steve Pearce says the group could soon have lower gearing than BHP Billiton and Rio Tinto. Fortescue shares closed 8.3 per cent higher at $A3.53.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, METALYTICS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Chinese deal with Vale can cut BHP both ways

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Original article by John Kehoe
The Australian Financial Review – Page: 20 : 23-Jun-16

A Bloomberg report has suggested that Vale could seek to raise up to $US7bn by selling a minority stake in its iron ore assets to Asian investors, most likely from China. On one hand, BHP Billiton would welcome such a deal, as its Samarco iron ore joint venture with Vale must renegotiate US3.8bn worth of debt, while Vale’s own debt pile totals $US23bn. On the other hand, Vale’s strategic investor may have a vested interest in trying to push the iron ore price down, particularly if they are also a buyer of iron ore.

CORPORATES
VALE SA, BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, BLOOMBERG LP, RIO TINTO LIMITED – ASX RIO, ALUMINIUM CORPORATION OF CHINA LIMITED

BHP gets shale oil wells ready after price rises

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Original article by Barry FitzGerald
The Australian – Page: 21 : 23-Jun-16

BHP Billiton CEO Andrew Mackenzie has indicated that the group will commence production at some of its drilled but uncompleted shale oil wells in the US, following an upturn in the crude oil price. It is now trading at around $US50 per barrel, having reached a low of $US26 a barrel in February 2016. Mackenzie has also reiterated that BHP’s preference is to pursue growth via its existing assets rather than acquisitions.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD

Rio Tinto spin-off not likely

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Original article by James Thomson
The Australian Financial Review – Page: 17 & 22 : 23-Jun-16

Paul Gait of Alliance Bernstein estimates that Rio Tinto’s newly-created energy and minerals division could be worth $US5.8bn to $US9.2 billion if it was spun off. He says Rio’s restructuring could indicate that it is considering a demerger. The energy and minerals division will comprise assets such as coal, uranium and titanium projects, plus Rio’s iron ore mines in Canada. Peter O’Connor of Shaw & Partners has downplayed the prospects of a demerger, and suggests that Rio is more likely to sell its Queensland metallurgical coal mines in the near-term.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALLIANCEBERNSTEIN HOLDING LP, SHAW AND PARTNERS LIMITED, BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, ANGLO AMERICAN PLC, MACQUARIE SECURITIES PTY LTD, JP MORGAN AND COMPANY INCORPORATED, BARCLAYS BANK PLC

Commodities glut will last 10 years, says BHP

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Original article by John Kehoe
The Australian Financial Review – Page: 18 : 22-Jun-16

BHP Billiton CEO Andrew Mackenzie says factors such as a low cost base means the group is in a better position to ride out the downturn in commodity prices than many rivals. He has forecast that the global oversupply of key commodities could to persist for about 10 years due to the big increase in capital investment during the resources boom. Mackenzie adds that demand and supply of iron ore in particular is likely to be take a long time to return to balance.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, ASIA SOCIETY

Rio’s Harding departs in sweeping executive restructure

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Original article by James Thomson, Tess Ingram
The Australian Financial Review – Page: 15 : 22-Jun-16

Rio Tinto has advised that Chris Salisbury will replace Andrew Harding as the head of its iron ore division. Harding’s departure is part of a broader restructuring at Rio Tinto as it transitions to new CEO Jean-Sebastien Jacques. Joanne Farrell will become the MD of Rio Tinto’s Australian operations, as well as group executive for health, safety and environment. Arnaud Soirat will be CEO of copper and diamonds, and Alan Davies takes on the role of CEO of energy and minerals. Harding had been a candidate to succeed Sam Walsh as Rio Tinto CEO.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PENGANA CAPITAL LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP