MINING CORPORATIONS – AUSTRALIA

Rio to consider Walsh’s successor

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Original article by James Chessell
The Australian Financial Review – Page: 40 : 11-Jan-16

The head of Rio Tinto’s iron ore division, Andrew Harding, is seen as the leading candidate to succeed CEO Sam Walsh. The latter himself headed the iron ore division before being elevated to the top job after Tom Albanese resigned in 2011 in the wake of several massive write-downs. Walsh recently indicated that Rio’s board favours appointing an internal candidate to succeed him. Succession planning will be a key priority for Rio chairman Jan de Plessis, who will want to conclude this process several years before he stands down.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, RIVERSDALE MINING LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, BANK OF AMERICA CORPORATION, ANGLO AMERICAN PLC, SABMILLER PLC, ANHEUSER-BUSCH INBEV SA/NV, GM HOLDEN LIMITED, NISSAN MOTOR COMPANY (AUSTRALIA) PTY LTD

Tinkler to fight anti-coal activists

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Original article by Paul Garvey
The Australian – Page: 16 : 6-Jan-16

Australian businessman Nathan Tinkler is confident that residents of the Hunter Valley in New South Wales will support his plan to resume production at the Dartbrook coal mine. Tinkler’s Australian Pacific Coal secured a deal to buy the mine for $A25m in late 2015, and it must finance the deal by the end of January 2016. Tinkler proposes an open-cut operation at Dartbrook, which is likely to face resistance from people who oppose coal mining.

CORPORATES
AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, TREPANG SERVICES PTY LTD, ANGLO AMERICAN PLC, PATINACK FARM PTY LTD, NEWCASTLE KNIGHTS LIMITED, NEWCASTLE UNITED SPORTS CLUB LIMITED

BHP begins payout plan for Brazil mine victims

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Original article by Barry FitzGerald
The Australian – Page: 16 : 5-Jan-16

Samarco has commenced paying compensation to the families of victims of the iron ore tailings dam disaster in Brazil, and families that have had to be relocated. Samarco, which is jointly owned by BHP Billiton and Vale, has accepted legal liability for the disaster and the resulting compensation claims. However, a Brazilian court has ruled that BHP and Vale must also bear responsibility for environmental remediation.

CORPORATES
SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, VALE SA

Heavyweight miners predict little respite

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Original article by Perry Williams
The Australian Financial Review – Page: 11 & 22 : 4-Jan-16

Former Rio Tinto CEO Leigh Clifford says commodity prices may not rebound for another 3-5 years, and mining companies with high production costs in particular face challenging conditions. Former Orica chairman Malcolm Broomhead says action is needed to boost labour productivity, and he has urged the Australian Government to pursue reforms in areas such as industrial relations and taxation in order to boost productivity.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ORICA LIMITED – ASX ORI, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, ASCIANO LIMITED – ASX AIO, KKR AND COMPANY LP

Iron will lets Harding keep Rio fighting fit

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Original article by Amanda Saunders
The Australian Financial Review – Page: 53 & 54 : 23-Dec-15

The head of Rio Tinto’s iron ore division, Andrew Harding, downplays suggestions that he could become the resources giant’s next CEO. Rio Tinto’s earnings are heavily weighted toward iron ore, and Harding has gained a high public profile in 2015 amid the downturn in the iron ore price, criticism of the iron ore expansion plans of Rio Tinto and BHP Billiton, and speculation that Glencore will make a new takeover bid for Rio Tinto.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGO INVESTMENTS LIMITED – ASX ARG

BHP bolsters Brazil team as probe into ‘deadly’ dam looms

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Original article by Barry FitzGerald
The Australian – Page: 18 : 23-Dec-15

BHP Billiton has appointed US law firm Cleary Gottlieb Steen & Hamilton to examine the causes of the tailings dam failure at its Samarco iron ore joint venture in Brazil. Meanwhile, Flavio Bulcao has been appointed as BHP’s country ­director for Brazil, while chief commercial officer Dean Dalla Valle will lead the resources group’s response to the disaster. BHP recently disputed a United Nations report on the toxicity of the tailings, which have polluted the River Doce.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, UNITED NATIONS, CLEARY GOTTLIEB STEEN AND HAMILTON LLC, BRAZIL. MINISTRY OF HEALTH

Vale to fight decision to freeze assets

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Original article by Barry FitzGerald
The Australian – Page: 14 : 22-Dec-15

Brazilian miner Vale intends to mount a legal challenge to a court’s decision to freeze its Samarco iron ore assets. The Samarco project is jointly owned by Vale and BHP Billiton. A Brazilian judge has ruled that they may be liable for the tailings dam disaster, as project operator Samarco Mineracao lacks sufficient funds to finance environmental remediation and compensate victims of the tragedy. The Samarco stake is BHP’s sole asset in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

BHP assets frozen as dam pressure rises

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Original article by Eric Johnston
The Australian – Page: 15 : 21-Dec-15

A spokesman for BHP Billiton has declined to comment on a court’s decision to freeze the Brazilian assets of both itself and Vale in the wake of the tailings dam disaster at the Samarco iron ore joint venture. Vale had claimed that Samarco should be fully liable for any damages arising from the disaster, but the court ruled that Samarco lacks sufficient funds to meet all claims associated with the incident. Meanwhile, the future of BHP’s progressive dividend policy remains under scrutiny, while Moody’s is reviewing its credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, MOODY’S INVESTORS SERVICE INCORPORATED, GLENCORE PLC

Stanmore Coal on track to reopen mothballed mine

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Original article by Matt Chambers
The Australian – Page: 19 : 18-Dec-15

Nick Jorss, the MD of Australian-listed Stanmore Coal, is confident that the Isaac Plains mine in Queensland will be profitable despite the downturn in the coking coal price. Stanmore will employ about 150 people at the mine, which it bought from Vale and Sumitomo for just $A1 earlier in 2015. The company has targeted April 2016 to commence production.

CORPORATES
STANMORE COAL LIMITED – ASX SMR, VALE SA, SUMITOMO CORPORATION, WHITEHAVEN COAL LIMITED – ASX WHC, FELIX RESOURCES LIMITED, YANCOAL AUSTRALIA LIMITED – ASX YAL, EXCEL COAL LIMITED, PEABODY ENERGY CORPORATION

BHP should slash dividend by half: analyst

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Original article by James Thomson
The Australian Financial Review – Page: 16 : 17-Dec-15

Paul McTaggart of Credit Suisse says BHP Billiton should drop its commitment to a progressive dividend policy and reduce its annual payment of $US1.24 per share by 50 per cent. Credit Suisse recently downgraded its earnings forecasts for BHP in both 2015-16 and 2016-17, and McTaggart says the lower earnings outlook means BHP cannot afford to keep its dividend payout at the current level.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED