MINING CORPORATIONS – AUSTRALIA

South32 reviews tailings dams after BHP’s Brazil disaster

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 19-Nov-15

South32 has told shareholders at its 2015 annual meeting that safety is a priority at its mining operations. CEO Graham Kerr said the BHP Billiton spin-off is undertaking a review of its own tailing dams in the wake of the fatal incident at BHP’s Samarco iron ore joint venture in Brazil. He has also indicated that South32 may commission an independent review of its tailings dams. South32 shares closed 3.1 per cent lower at $A1.24 on 18 November.

CORPORATES
SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

Investor challenges BHP: cut dividend

roymorgansocial Leave a comment

Original article by Sally Patten
The Australian Financial Review – Page: 24 : 19-Nov-15

BHP Billiton’s progressive dividend policy is likely to come under scrutiny at its 2015 annual meeting in Perth. Some fund managers do not expect BHP to back down on its policy despite growing pressure to do so, but Anton Tagliaferro of Investors Mutual says it was introduced during the resources boom and the downturn in commodities markets means it is no longer appropriate.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, INVESTORS MUTUAL LIMITED, HAMILTON WEALTH MANAGEMENT PTY LTD, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Fortescue tips iron ore demand, as price falls

roymorgansocial Leave a comment

Original article by Peter Ker, Tess Ingram
The Australian Financial Review – Page: 25 : 19-Nov-15

The iron ore price fell by 4.5 per cent to $US45.68 per tonne on 18 November 2015. However, Fortescue Metals Group CEO Nev Power is upbeat about the outlook for iron ore, saying there are signs of an improvement in China’s housing construction market. Power adds that Fortescue is not "actively" considering asset sales at present, and says Chinese steel mills are more likely to look at investing in the sector when the iron ore price begins to rebound.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ATLAS INTERNATIONAL TRAVEL, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, GRANGE RESOURCES LIMITED – ASX GRR, ROY HILL IRON ORE PTY LTD, VALE SA, SAMARCO MINERACAO SA, CLIFFS NATURAL RESOURCES INCORPORATED, RBC CAPITAL MARKETS

Pressure grows over BHP Billiton’s $US9bn dividend question

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 19 : 17-Nov-15

It is unwise for BHP Billiton to have a firm commitment to pay $US6.6 billion ($A9.2 billion) annually in dividends. Ross Barker, the MD of the Australian Foundation Investment Company (AFIC), says debt levels should be the primary consideration. A payout ratio should be made dependent on company results. AFIC has a large stake in BHP.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, ARGO INVESTMENTS LIMITED – ASX ARG, PENGANA CAPITAL LIMITED, SOUTH32 LIMITED – ASX S32

BHP under pressure over Brazil disaster

roymorgansocial Leave a comment

Original article by Sally Rose, Steve Yolen
The Australian Financial Review – Page: 13 & 18 : 16-Nov-15

BHP Billiton’s Australian-listed shares fell by 10.8 per cent in the week ended 13 November 2015, extending the stock’s losses since 1 July to around 25 per cent. The latest sell-off was prompted by the tailings dam disaster at the Samarco iron ore project in Brazil. Principles for Responsible Investment MD Fiona Reynolds argues that Samarco joint venture partners BHP and Vale should respond to the disaster by linking their executive remuneration to the safety records of their mining operations.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, PRINCIPLES FOR RESPONSIBLE INVESTMENT, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIANSUPER PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

BHP falls erase China boom gains

roymorgansocial Leave a comment

Original article by Amanda Saunders, Matthew Stevens, Neil Chenoweth, John Kehoe
The Australian Financial Review – Page: 1 & 12 : 13-Nov-15

Shares in BHP Billiton shed 1.6 per cent to close at $A20.60 on 12 November 2015, which is the stock’s lowest level in almost 10 years. The recent rout means BHP stock is trading at around the same level it was at prior to the start of the China-driven commodities boom. Meanwhile, the Queensland Government has demanded unpaid royalties of $A288m arising from the use of Singapore as a marketing hub, while BHP also faces massive costs associated with the tailings dam disaster at its joint venture Samarco iron ore project in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, SOUTH32 LIMITED – ASX S32, SUPREME COURT OF QUEENSLAND, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, BHP BILLITON MARKETING AG, RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, PENGANA CAPITAL LIMITED

BHP dam was flawed, experts said

roymorgansocial Leave a comment

Original article by Amanda Saunders, Lia Timson, Matthew Stevens
The Australian Financial Review – Page: 1 & 28 : 12-Nov-15

BHP Billiton has declined to comment on whether it was aware of a 2013 report which raised concerns about the tailings dams at its Samarco iron ore joint venture in Brazil. The report was produced by the Instituto Pristino on behalf of state of Minas Gerais’s Environment Ministry, and concluded that design flaws in the tailings dam system could potentially lead to the catastrophic dam failure that has resulted in a fatal mudslide. The mine is jointly owned by Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, INSTITUTO PRISTINO, SAMARCO MINERACAO SA, DEUTSCHE BANK AG, MOODY’S INVESTORS SERVICE INCORPORATED

Twiggy predicts iron ore prices will fall further

roymorgansocial Leave a comment

Original article by Julie-anne Sprague
The Australian Financial Review – Page: 21 & 28 : 12-Nov-15

The iron ore price is currently trading at around $US48 per tonne, and Fortescue Metals Group chairman Andrew Forrest has forecast that it could remain below $US50 in the near-term. He has again criticised BHP Billiton and Rio Tinto for ramping up iron ore production during a period of price weakness. Meanwhile, 19.3 per cent of shareholders at Fortescue’s 2015 AGM voted against its remuneration report.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, CITIGROUP INCORPORATED

Burst Brazilian dam likely to stay shut for years; owners face fines

roymorgansocial Leave a comment

Original article by Amanda Saunders, Matthew Stevens
The Australian Financial Review – Page: 17 : 10-Nov-15

Deutsche Bank’s Paul Young says BHP Billiton may have to reconsider its progressive dividend policy in the wake of a fatal incident at its Samarco iron ore joint venture in Brazil. Deutsche estimates that BHP and joint venture partner Vale could face costs of at least $US1bn ($A1.4bn) arising from the failure of a tailings dam at the mine in the state of Minas Gerais. Young says the Samarco project is unlikely to resume production before fiscal 2019, and it could potentially be closed permanently.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, DEUTSCHE BANK AG, SAMARCO MINERACAO SA

Gold is ‘saving grace’ of miner mid-tier ranks

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 29 : 10-Nov-15

A report from PricewaterhouseCoopers shows that the combined market capitalisation of Australia’s 50 largest mid-tier mining companies fell by 1.5 per cent in 2014-15, to $A36.2bn. The "Aussie Mine" report also notes that gold producers accounted for 38 per cent of mid-tier companies’ market capitalisation, following strong growth in revenue. The downturn in the price of coal and iron ore had a significant impact on the revenue and market capitalisation of mid-tier companies in these sectors.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD