MINING CORPORATIONS – AUSTRALIA

Brexit would be ‘regrettable for Australia’

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Original article by James Chessell
The Australian Financial Review – Page: 1 & 2 : 18-Apr-16

BHP Billiton CEO Andrew Mackenzie says there would be few implications for the resources giant if the UK votes to leave the European Union. However, he warns that it would deter future Australian companies from listing on the London stock exchange, as they would not have the same level of access to the broader European market. Rio Tinto chairman Jan du Plessis also believes that the UK should remain in the European Union. The referendum will be held on 23 June 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Rio ices coal asset sale in full market

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 18-Apr-16

The large number of coal mines that are for sale globally has prompted Rio Tinto to put further asset sales on hold until the market improves. Rio is seeking buyers for the Mount Thorley Warkworth and Hunter Valley Operations mines in New South Wales, but it has not been able to find a buyer that is willing to pay a premium for the high-quality assets. Meanwhile, Whitehaven Coal MD Paul Flynn expects more mining companies to offer quality coal assets for sale.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC, GLENCORE PLC, ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, VALE SA, BHP BILLITON LIMITED – ASX BHP, APOLLO GLOBAL MANAGEMENT LLC, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED

US bank action may thwart Arrium rescue

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Original article by Sarah Danckert
The Australian Financial Review – Page: 11 & 16 : 18-Apr-16

Morgan Stanley Bank has applied for a court order in the US seeking the repayment of a $US75.4m ($A97.6m) credit facility that it provided to failed steelmaker and iron ore miner Arrium. The US bank is also believed to be seeking a court order to prevent Arrium from transferring assets from the US. Arrium’s administrator KordaMentha in turn will apply to the Federal Court of Australia to block Morgan Stanley’s attempt to demand repayment of the debt facility.

CORPORATES
ARRIUM LIMITED – ASX ARI, MORGAN STANLEY BANK NA, KORDA MENTHA AND COLLEAGUES PTY LTD, FEDERAL COURT OF AUSTRALIA, DELAWARE CHANCERY COURT, MOLY-COP USA LLC, GRANT THORNTON AUSTRALIA, ARRIUM FINANCE, ARRIUM IRON ORE HOLDINGS, LIFESTEEL TECHNOLOGIES AMERICA LLC, ONESTEEL GROUP INCORPORATED, ONESTEEL RECYCLING INCORPORATED, ONESTEEL INVESTMENTS, GSO CAPITAL PARTNERS LP, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ANSETT AUSTRALIA HOLDINGS LIMITED

BHP steps up JV controls

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Original article by Barry FitzGerald
The Australian – Page: 17 & 18 : 18-Apr-16

BHP Billiton may seek to restructure its non-operating joint ventures in Latin America in the wake of the Samarco disaster in Brazil. Any such move would affect the Samarco iron ore mine, the Cerrejon coal mine in Colombia and the Antamina copper and zinc mine in Peru. BHP Billiton holds large stakes in all three mines, but it does not operate any of them. Credit Suisse has estimated that unwinding the joint ventures could affect some $US17.4bn worth of mining assets in the region.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, CREDIT SUISSE (AUSTRALIA) LIMITED, GLENCORE PLC, TECK CORPORATION, MITSUBISHI CORPORATION, ANGLO AMERICAN PLC

Mentha steps in to fix Arrium

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Original article by Simon Evans, Tim Binsted
The Australian Financial Review – Page: 7 : 14-Apr-16

KordaMentha’s Mark Mentha says he will consider every option for restructuring steelmaker and iron ore miner Arrium. Mentha was appointed as administrator of Arrium after the Australian Workers’ Union, lenders and bondholders succeeded in removing Grant Thornton from the role. Mentha says Arrium’s collapse was primarily due to a decline in relations between the group’s board and its lenders. The first creditors’ meeting is scheduled for 19 April 2016.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, GRANT THORNTON AUSTRALIA, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MOLY-COP, GSO CAPITAL PARTNERS LP, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ANSETT AUSTRALIA HOLDINGS 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

The top tasks facing Rio’s new chief

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 13-Apr-16

There is speculation that Rio Tinto will pursue acquisitions when Jean-Sebastien Jacques succeeds Sam Walsh as CEO in July 2016, while asset sales may also potentially be on the agenda. Jacques is largely an unknown quantity to most investors, so one of his first priorities will be to outline his strategy for Rio Tinto. The group will also need to diversify its operations to reduce its reliance on iron ore, while free cash flow and big data are also likely to be priorities for Jacques.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, TURQUOISE HILL RESOURCES LIMITED, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

Rio’s pay delay gambit may fail

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Original article by Paul Garvey
The Australian – Page: 20 : 12-Apr-16

Mining industry sources doubt that Rio Tinto will be able to enforce its revised payment terms for contractors and suppliers. The resources giant recently advised that it will pay invoices 90 days after receipt, compared with 45 days at present, and up from 30 days in 2015. Some industry watchers have suggested that the new payment schedule is more likely to apply to Rio’s future contracts, as suppliers will need to agree to any changes to existing arrangements.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MONADELPHOUS GROUP LIMITED – ASX MND, WORLEYPARSONS LIMITED – ASX WOR, MACMAHON HOLDINGS LIMITED – ASX MAH, AUSDRILL LIMITED – ASX ASL, NRW HOLDINGS LIMITED – ASX NWH, BRIERTY LIMITED – ASX BYL, BHP BILLITON LIMITED – ASX BHP

BHP is poised to pounce: chief

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Original article by Barry FitzGerald
The Australian – Page: 19 & 20 : 12-Apr-16

BHP Billiton shareholders will receive interim dividends totalling $A848m after the group adopted a minimum payout ratio. Its half-year payout would have been about $A3.28bn if it had retained a progressive dividend policy. CEO Andrew Mackenzie says the change in policy means BHP has the capacity to undertake acquisitions if an appropriate opportunity arises. However, he adds that its focus will be on developing existing assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

Vultures circle fallen Arrium

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Original article by Paul Garvey
The Australian – Page: 19 & 23 : 8-Apr-16

An unnamed investment banker says Arrium’s voluntary administrators are likely to seek new discussions with GSO Capital Partners, whose $A1.2bn bailout proposal was rejected by Arrium’s lenders. Private equity firms are likely to have strong bargaining power in any negotiations to buy Arrium’s assets, as the failed iron ore miner and steelmaker’s lenders are unsecured creditors. Arrium boasts a global workforce of 22,000, with 7,000 employees in Australia.

CORPORATES
ARRIUM LIMITED – ASX ARI, GSO CAPITAL PARTNERS LP, GRANT THORNTON AUSTRALIA, THE BLACKSTONE GROUP LP, MOLY-COP, ALLAN GRAY AUSTRALIA PTY LTD, MORNINGSTAR PTY LTD, BLUESCOPE STEEL LIMITED – ASX BSL