MINING CORPORATIONS – AUSTRALIA

Big miners spook Abbott

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Original article by Phillip Coorey, Julie-anne Sprague, Mark Ludlow
The Australian Financial Review – Page: 1 & 4 : 20-May-15

Fortescue Metals Group chairman Andrew Forrest says the Australian Government should proceed with a parliamentary inquiry into the iron ore industry. He notes that lower prices for the steel input affects government revenue, and he says the Government should not yield to pressure from BHP Billiton and Rio Tinto. The two big miners have criticised proposals for a federal inquiry, while Prime Minister Tony Abbott has moderated his position on the issue, after previously supporting such an inquiry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

BHP Billiton fears ease ahead of South32 debut

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 18-May-15

South32 will be among Australia’s top 50 listed companies when its shares begins trading on a deferred settlement basis on 18 May 2015. Paul Young of Deutsche Bank expects the BHP Billiton spin-off to trade at about 0.7 times net present value, adding that BHP shares could be re-rated as a result of the demerger. Some of BHP’s institutional shareholders will watch the initial performance of South32 shares before deciding to increase or decrease their holdings in the spin-off.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, DEUTSCHE BANK AG, ABERDEEN ASSET MANAGEMENT LIMITED, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, X2 RESOURCES PARTNERS LP, GLENCORE PLC

Hockey in iron ore inquiry talks

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Original article by John Kerin, Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 15-May-15

Independent Senator Nick Xenophon wants a bipartisan parliamentary committee to hold an inquiry into iron ore pricing. There is speculation that any such inquiry could be chaired by Liberal MP Angus Taylor, who has worked as a consultant in the sector. Minerals Council of Australia CEO Brendan Pearson rejects claims by Andrew Forrest that BHP Billiton and Rio Tinto are ramping up production with a view to forcing smaller producers out of the iron ore market, and says there is no need for an inquiry.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY

BHP and Rio remain in Aberdeen’s good books

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Original article by Matthew Smith
The Australian Financial Review – Page: 8 : 15-May-15

Aberdeen Asset Management’s Robert Penaloza has retained overweight positions in BHP Billiton and Rio Tinto, despite the sharp decline in the iron ore price. The head of Australian equities has been actively buying BHP shares since mid-April 2015, and he may continue to buy shares in both of the resources giants. Penaloza notes that their low production costs means BHP and Rio are very resilient when commodities are both rising and falling.

CORPORATES
ABERDEEN ASSET MANAGEMENT LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE TREASURY

UBS small-caps funds feature lithium play

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 11-May-15

Demand for lithium is rising by 10 per cent each year, and Australian-listed Orocobre’s Olaroz mine in Argentina yields 10 per cent of global supply. UBS Global Asset Management is upbeat about Orocobre, while Western Areas and Sundance Energy are the only other resources stocks in the portfolios of its small and micro-capitalisation funds at present.

CORPORATES
OROCOBRE LIMITED – ASX ORE, WESTERN AREAS LIMITED – ASX WSA, SUNDANCE ENERGY AUSTRALIA LIMITED – ASX SEA, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, TESLA MOTORS INCORPORATED, SIRIUS RESOURCES NL – ASX SIR

Rio chief says coal price slump to last

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 11-May-15

The price of thermal coal has fallen to around $US63 per tonne, compared with $US150 in 2011. Rio Tinto executive Jean-Sebastien Jacques is bearish about the outlook for thermal coal, forecasting that the price may not recover for 3-4 years. The head of the group’s coal division says his main aim at present is to ensure that all of Rio’s coal mines continue to be cash-flow positive. He has downplayed suggestions that Rio could exit the coal business, but says any asset would be for sale at the right price.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

Iron ore fall may hit Rio, BHP capex

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Original article by Tess Ingram
The Australian Financial Review – Page: 1 & 6 : 14-Apr-15

Iron ore was trading at around $US47.53 per tonne on 13 April 2015, and some analysts are increasingly bearish about its outlook. Citigroup now expects iron ore to average just $US37 per tonne for the remainder of 2015, while it is forecast to average $US40 for the following three years. Australian Treasurer Joe Hockey recently warned that iron ore could test the $US35 level. Analysts suggest that BHP Billiton and Rio Tinto could opt to reduce capital expenditure in response to such a scenario, rather than reduce their dividends

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FORTESCUE METALS GROUP LIMITED – ASX FMG, RBC CAPITAL MARKETS, CREDIT SUISSE (AUSTRALIA) LIMITED, ATLAB AUSTRALIA

OZ Minerals CEO sees bright copper future

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 14-Apr-15

Australian-listed copper miner OZ Minerals will consider acquisitions, but CEO Andrew Cole has ruled capitalising on low valuations to expand into iron ore. He is upbeat about the outlook for copper, forecasting that demand will remain strong. OZ Minerals will release the results of a review of its operations on 20 April 2015. Its shares closed 0.8 per cent lower at $A3.80 on 13 April

CORPORATES
OZ MINERALS LIMITED – ASX OZL, TORO ENERGY LIMITED – ASX TOE, SANDFIRE RESOURCES NL – ASX SFR

Haoma Mining protects itself from Atlas Iron’s woes

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 10-Apr-15

Australian-listed Haoma Mining has put a caveat on two of Atlas Iron’s iron ore tenements in the Pilbara region of Western Australia. Haoma holds the exploration rights for non-iron ore minerals, and chairman Gary Morgan says the group wanted to protect its interests should Atlas sell the tenements. Shares in Atlas Iron were placed in a trading halt in early April 2015, pending a review of its operations

CORPORATES
HAOMA MINING NL – ASX HAO, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI

‘No way’ to a Glencore-Rio merger: Hockey

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 9-Apr-15

The prohibition on Glencore executives commenting on a bid for Rio Tinto lapsed on 8 April 2015, six months after Rio rejected a takeover approach. Glencore is tipped to make another bid for Rio, but Australian Treasurer Joe Hockey is believed to have explicitly ruled out Federal Government approval for such a deal. His comments are said to have been made at a private meeting with business leaders and mining industry executives in late March

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, AUSTRALIA. DEPT OF THE TREASURY, MINERALS COUNCIL OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, ARCHER DANIELS MIDLAND COMPANY, GRAINCORP LIMITED – ASX GNC, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ALUMINIUM CORPORATION OF CHINA LIMITED