MINING CORPORATIONS – 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

Rio set to OK $5bn Oyu Tolgoi expansion

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Original article by Matt Chambers
The Australian – Page: 20 : 28-Apr-16

There is growing speculation that Rio Tinto is poised to approve an underground expansion of the Oyu Tolgoi copper and gold mine in Mongolia. Deutsche Bank expects the expansion to be approved during the June 2016 quarter, which is consistent with Rio Tinto’s own stated time-frame. Deutsche suggests that lower construction costs could reduce the cost of the expansion to about $US4bn, compared with Rio Tinto’s $US4.9bn estimate in October 2014.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, TURQUOISE HILL RESOURCES LIMITED

Price struck for thermal coal export a ‘huge coup’

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 27-Apr-16

Australian thermal coal producers have secured an annual contract price of $US61.60 per tonne from Japanese buyers for the financial year that began on 1 April 2016. While this is 9.1 per cent lower than the $US67.80 for the previous Japanese financial year, Macquarie Wealth Management notes that it is about $US10.80 per tonne higher than the spot price. Australian shipments of thermal coal to Japan totalled 84.7 million tonnes in 2015.

CORPORATES
MACQUARIE WEALTH MANAGEMENT, GLENCORE PLC, TOHOKU ELECTRIC POWER CORPORATION, WHITEHAVEN COAL LIMITED – ASX WHC, IHS GLOBAL INSIGHT INCORPORATED

Explorers hoping to say the L-word

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 26-Apr-16

A growing number of Australian-listed resources groups are expanding into the lithium sector or shifting their focus to lithium in order to capitalise on demand for electric vehicles and rechargeable batteries. However, Andrew Shearer of PAC Partners cautions that many prospective lithium players are unlikely to advance to the development or production stages.

CORPORATES
PAC PARTNERS PTY LTD, PETRA CAPITAL PTY LTD, DAKOTA MINERALS LIMITED – ASX DKO, SEGUE RESOURCES LIMITED – ASX SEG, PIONEER RESOURCES LIMITED – ASX PIO, BIRIMIAN GOLD LIMITED – ASX BGS, CAENEUS MINERALS LIMITED – ASX CAD, ARDIDEN LIMITED – ASX ADV, CAZALY RESOURCES LIMITED – ASX CAZ, ARGONAUT RESOURCES FUND PTY LTD, CRUSADER RESOURCES LIMITED – ASX CAS, HANNANS REWARD LIMITED – ASX HNR, EVERLIGHT RESOURCES PTY LTD, KIDMAN RESOURCES LIMITED – ASX KDR, WESTERN AREAS LIMITED – ASX WSA, PATERSONS SECURITIES LIMITED

Pragmatic BHP not chasing coal bargains despite fire sale

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Original article by James Thomson
The Australian Financial Review – Page: 11 : 26-Apr-16

BHP Billiton executive Mike Henry says acquiring coal assets is not high on the resources giant’s list of priorities. He adds that BHP would consider any coal assets that were put on the market at very low prices, but notes that any bargains are unlikely to include quality assets. A number of mining companies are seeking to divest coal mines, and Henry expects this trend to continue. BHP CEO Andrew Mackenzie has previously indicated that the group is particularly interested in buying copper and conventional oil assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, GLENCORE PLC, PEABODY ENERGY CORPORATION, ANGLO AMERICAN PLC, APOLLO GLOBAL MANAGEMENT LLC, MITSUBISHI CORPORATION

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

Firm met in secret before plug pulled

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Original article by Simon Evans, Tim Binsted
The Australian Financial Review – Page: 15 & 20 : 21-Apr-16

Arrium’s former administrator Grant Thornton has revealed that it discussed the possibility of voluntary administration with the failed steelmaker and iron ore miner’s law firm, Herbert Smith Freehills, on 11 March 2016. Arrium went into administration on 7 April, and Grant Thornton was subsequently replaced as administrator by KordaMentha.

CORPORATES
ARRIUM LIMITED – ASX ARI, GRANT THORNTON AUSTRALIA, KORDA MENTHA AND COLLEAGUES PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, GSO CAPITAL PARTNERS LP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, LAZARD PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF CHINA GROUP, INDUSTRIAL AND COMMERCIAL BANK OF CHINA, TAIWAN BUSINESS BANK, TAIWAN COOPERATIVE BANK, CHANG HWA COMMERCIAL BANK LIMITED, BANK OF NOVA SCOTIA, GRUPO BANCO BILBAO VIZCAYA ARGENTARIA SA, HSBC BANK PLC, MIZUHO BANK LIMITED, SUMITOMO MITSUI BANKING CORPORATION, BANQUE CANTONALE DE GENEVE, DEUTSCHE BANK AG, MEGA INTERNATIONAL COMMERCIAL BANK COMPANY LIMITED, BABSON CAPITAL MANAGEMENT LLC, AEGON NV, MUTUAL OF OMAHA INSURANCE COMPANY, OHIO NATIONAL FINANCIAL SERVICES INCORPORATED

Robot train glitches hit Rio output

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 20-Apr-16

Rio Tinto has advised that its global iron ore shipments for the March 2016 quarter totalled 80.8 million tonnes. Shipments from the Pilbara region of Western Australia rose by 12 per cent year-on-year to 79.9 million tonnes. Meanwhile, Rio Tinto expects iron ore production in 2017 to be within the range of 330 million to 340 million tonnes, which represents a decline of up to 20 million tonnes. The lower guidance is said to be linked to problems with its Autohaul driverless trains project.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG

Atlas Iron in plea for debt support

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Original article by Tess Ingram
The Australian Financial Review – Page: 30 : 19-Apr-16

Shares in Atlas Iron closed 17.4 per cent lower at $A0.019 on 18 April 2016. The iron ore miner’s chair, Cheryl Edwardes, has written to shareholders urging them to support a debt restructuring proposal, stressing that the group could go into voluntary administration if the deal does not proceed. Lenders would gain about 70 per cent of the company’s equity if the deal is approved by Atlas’s shareholders and lenders.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, CGI GLASS LEWIS PTY LTD, PPB HOLDINGS PTY LTD, MOUNT GIBSON IRON LIMITED – ASX MGX

Rio, BHP could cut iron ore guidance

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 19-Apr-16

BHP Billiton and Rio Tinto will shortly release their production data for the March 2016 quarter. Paul Young of Deutsche Bank forecasts that BHP’s output of its four main commodities will be flat or lower than previously. Glyn Lawcock of UBS says BHP may have to reduce its iron ore production guidance for 2015-16, as it may not meet its full-year forecast for its Pilbara operations for output of 270 million tonnes. He also expects Rio Tinto’s iron ore production to have fallen.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, SAMARCO MINERACAO SA, FORTESCUE METALS GROUP LIMITED – ASX FMG