MINING CORPORATIONS – AUSTRALIA

Miners won’t take pedal off the metal

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 14-Mar-16

The iron ore price has risen by about 65 per cent so far in 2016, although it has retreated from the year-to-date high of more than $US63 per tonne. Meanwhile, Paul Young of Deutsche Bank expects Rio Tinto’s iron ore output in the Pilbara to top 360 million tonnes in 2017, despite the miner’s own guidance of 350 million tonnes. There are also expectations that production at the Samarco joint venture between BHP Billiton and Vale will resume before the end of the 2016, while production at the Roy Hill iron ore project may increase.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, ROY HILL IRON ORE PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, CHINA. NATIONAL BUREAU OF STATISTICS, KATANA ASSET MANAGEMENT LIMITED

Study backs Pilbara lithium mine’s potential

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Original article by Paul Garvey
The Australian – Page: 20 : 11-Mar-16

A pre-feasibility study released by Australian-listed Pilbara Minerals is upbeat about the potential of the group’s Pilgangoora lithium project. The study concluded that the mine could yield 330,000 tonnes of spodumene concentrate a year, with production costs of about $US205 per tonne. The study also forecasts that the project would have annual EBITDA of $A120m. The spot price of spodumene concentrate currently exceeds $US600 per tonne.

CORPORATES
PILBARA MINERALS LIMITED – ASX FTN, TESLA MOTORS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, FOSTER STOCKBROKING PTY LTD

Fortescue’s Vale deal good for costs, but concerns remain

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Original article by Amanda Saunders, James Thomson
The Australian Financial Review – Page: 19 & 24 : 10-Mar-16

Iron ore miner Fortescue Metals Group aims to reduce its cash costs to $US13 per tonne by mid-2016, having slashed its cost of production from about $US32/tonne to around $US16 in the last year. The proposed iron ore blending joint venture with Brazilian rival Vale may allow Fortescue to further reduce its cash costs. Paul Young of Deutsche Bank notes that Chinese competition regulators may oppose the alliance, although Fortescue CEO Nev Power is confident that this will not be an issue.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, DEUTSCHE BANK AG, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JEFFERIES AND COMPANY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI

ACCC on alert as Fortescue, Vale get cosy

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Original article by Matt Chambers, Paul Garvey
The Australian – Page: 19 & 27 : 9-Mar-16

The Australian Competition & Consumer Commission is among the regulators that are likely to scrutinise a proposed deal between Fortescue Metals Group and Vale. The Brazilian group would acquire 5-15 per cent of Fortescue’s shares on-market, while the two groups would establish a blending joint venture to export $US4bn worth of iron ore to China. Christopher LaFemina of Jefferies does not see much advantage for Vale from the deal unless the long-term plan is for it to acquire Fortescue.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, JEFFERIES AND COMPANY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Soaring BHP still has room to run

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 8-Mar-16

A rebound in the iron ore price prompted renewed investor support for BHP Billiton, Rio Tinto and Fortescue Metals Group on 7 March 2016. BHP shares closed 4.98 per cent higher at $A18.55, compared with $A15.57 one week earlier. Shaw & Partners and UBS are the most bullish about the outlook for BHP, with 12-month share price targets of $A27 and $A22 respectively. In contrast, JP Morgan has a share price target of just $A13.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MACQUARIE BANK LIMITED – ASX MBL, CREDIT SUISSE (AUSTRALIA) LIMITED, CITIGROUP PTY LTD, CLSA AUSTRALIA PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CLARKSONS PLATOU, ROYAL BANK OF CANADA, BARCLAYS BANK PLC, JEFFERIES AND COMPANY, STANDARD BANK LONDON LIMITED, SBG SECURITIES, MORGAN STANLEY AND COMPANY INCORPORATED, SAMARCO MINERACAO SA, VALE SA

2000-plus mining jobs cut in 2016; more to go

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 20 : 7-Mar-16

It is estimated that about 2,330 workers in the Australian mining industry have been retrenched so far in 2016. South32 plans to sack about 770 employees by mid-2016, while 330 employees of Consolidated Minerals have been affected by its decision to put production at its manganese mine in Western Australia on hold. Iron ore producers such as Grange Resources and Mount Gibson Iron have also shed staff in 2016, while media reports have suggested that Rio Tinto could retrench between 500 and 700 employees in Western Australia.

CORPORATES
SOUTH32 LIMITED – ASX S32, CONSOLIDATED MINERALS LIMITED, GRANGE RESOURCES LIMITED – ASX GRR, MOUNT GIBSON IRON LIMITED – ASX MGX, RIO TINTO LIMITED – ASX RIO, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, QUEENSLAND NICKEL PTY LTD, PIT CREW MANAGEMENT CONSULTING SERVICES PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM

BHP surges on dam compo deal

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Original article by Barry FitzGerald
The Australian – Page: 19 & 20 : 4-Mar-16

Shares in BHP Billiton closed 3.1 per cent higher at $A17.25 on 3 March 2016. The stock rallied after its Samarco iron ore joint venture secured an agreement with the Brazilian Government and two state governments regarding compensation and remediation work following the November 2015 tailings dam disaster. The deal could potentially allow the Samarco joint venture with Vale to resume production in 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, SHAW AND PARTNERS LIMITED

Graphite junior in shock collapse

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Original article by Paul Garvey
The Australian – Page: 19 & 20 : 4-Mar-16

Australian-listed Triton Minerals has been placed in the hands of administrators from Ferrier Hodgson. The group had recently released an update assessment of the prospects for its Mozambique graphite project, and it is not believed to have any significant debt. However, three directors have left Triton since December 2015, including former CEO Brad Boyle. Triton’s shares reached a high of $A0.54 in April 2015, and last traded at just $A0.061.

CORPORATES
TRITON MINERALS LIMITED – ASX TON, FERRIER HODGSON AND COMPANY, FORTESCUE METALS GROUP LIMITED – ASX FMG, GMP SECURITY PTY LTD, YICHANG XINCHENG GRAPHITE COMPANY LIMITED

700 jobs to go as Rio strips its costs

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Original article by Matt Chambers
The Australian – Page: 20 : 3-Mar-16

Rio Tinto has declined to comment on media reports which suggested that it plans to shed between 500 and 700 workers at its iron ore mines in Western Australia. The job cuts are part of its goal to reduce global costs by $US2bn ($A2.6bn) over the next two years. Rio Tinto previously reduced its Western Australian iron ore headcount by 800 in 2015, and its costs have been slashed by $US6.2bn over the last three years.

CORPORATES
RIO TINTO LIMITED – ASX RIO

‘Limited headroom’ for M&A at BHP

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 2-Mar-16

BHP Billiton CEO Andrew Mackenzie recently indicated that abolishing the progressive dividend policy will increase the group’s capacity to pursue mergers and acquisitions. However, Standard & Poor’s analyst May Zhong says that without a rebound in commodity prices BHP will not have much scope for M&A deals. The ratings agency has removed BHP from negative credit watch following the changes to its dividend policy. BHP’s credit rating was downgraded from "A+" to "A" earlier in 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, STANDARD AND POOR’S CORPORATION, SAMARCO MINERACAO SA