MINING CORPORATIONS – AUSTRALIA

Tinkler skips out on Wilkie Creek

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Original article by Gretchen Friemann, James Chessell
The Australian Financial Review – Page: 15& 20 : 9-Jul-14

Businessman Nathan Tinkler has missed a payment on his $A150 million acquisition of the Wilkie Creek coal mine in Queensland. It is thought that Peabody Energy has granted an extension on the payment, which was due on 30 June 2014. However, uncertainty about Tinkler’s financial position has brought back the underbidders. Stanmore Coal offered nearly $A20 million, excluding liabilities, for the mine

CORPORATES
STANMORE COAL LIMITED – ASX SMR, PEABODY ENERGY CORPORATION, JEFFERIES AND COMPANY, LEUCADIA NATIONAL CORPORATION, PATINACK FARM PTY LTD, UBS AG, BENTLEY RESOURCES PTE LTD

BHP, Rio buyback plans put in doubt

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Original article by Matt Chambers
The Australian – Page: 17 : 7-Jul-14

Analysts at Macquarie and Credit Suisse have voiced doubts on whether planned stock repurchasing schemes of BHP Billiton and Rio Tinto will go ahead. Both Australian-listed groups have been affected by a recent drop in the iron ore price, which may cost investors the equivalent of $US11bn ($A11.7bn) in cash. The companies want to reduce their net liabilities before buying back shares, with BHP aiming for $US25bn by mid-2015 and Rio for $US13bn by late that year

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, GLENCORE XSTRATA PLC, TRAFIGURA BEHEER BV, X2 RESOURCES PARTNERS LP, JINCHUAN NON-FERROUS METALS IMPORT AND EXPORT COMPANY, MMG LIMITED

Mining still dragging the chain on big data

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Original article by Matt Chambers
The Australian – Page: 20 : 4-Jul-14

The Australian mining sector is slow to adopt digital technology. WorleyParsons CEO Andrew Wood said that better use of data in design and construction can significantly reduce the cost and time of new projects. He said that project times could be cut by 20 per cent. The cost of design could be reduced by up to 70 per cent by re-using data from other projects. Total capital costs could be reduced by up to five per cent

CORPORATES
WORLEYPARSONS LIMITED – ASX WOR, THE MELBOURNE MINING CLUB, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Lynas looks at Malaysia move in restructure

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Original article by Brian Robins
The Australian Financial Review – Page: 27 : 3-Jul-14

Lynas Corporation will move its head office from Sydney to Kuala Lumpur. The relocation will involve a number of job losses. The Australian-listed rare earth mining company is under pressure to reduce costs because of problems experienced at its Malaysian processing facility. The total cost of relocation and redundancies is expected to be $A5 million

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC

75,000 jobs to go in mining’s new phase

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Original article by Barry FitzGerald
The Australian – Page: 21-22 : 2-Jul-14

Justin Fabo, senior economist corporate and commercial at ANZ Banking, predicts the Australian resources and related services sector to shed up to 75,000 jobs by 2016. This would be a decline of 28%, and result from the transition from the construction to production phase at many mining and energy projects. Already, over-capacity in the market has brought redundancies at coal and iron ore operation. Fabo stresses that out of the 75,000 workers affected, a large share will be temporary migrants, and that these will simply return home rather than add to the nation’s unemployment rate

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN WORKFORCE AND PRODUCTIVITY AGENCY

New rule could prevent strike

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Original article by Gareth Parker
The West Australian – Page: 3 : 1-Jul-14

Unlike other states, Western Australia (WA) did not refer its industrial relations powers to the Commonwealth. However, Federal Employment Minister Eric Abetz has now launched an amendment by regulation rather than legislation to the Fair Work Act, to enable third parties to appear in federal industrial relations cases. This will allow the WA Government as well as iron ore exporters BHP Billiton and Fortescue Metals to ask Fair Work Australia for a halt to strikes at Port Hedland. Deckhands represented by the Maritime Union of Australia are threatening industrial action against Teekay Shipping at the port

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, PORT HEDLAND PORT AUTHORITY, MARITIME UNION OF AUSTRALIA, TEEKAY SHIPPING (AUSTRALIA) PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. FAIR WORK COMMISSION, WESTERN AUSTRALIA. DEPT OF COMMERCE, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED)

Rio ready to approve bauxite mine

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 1-Jul-14

Rio Tinto expects to approve its South of Embley bauxite project at Weipa in Queensland later in 2014. UBS analyst Glyn Lawcock estimates that the project will generate an internal rate of return of about 29 per cent. The mining company will benefit from strong demand for bauxite. The South of Embley project is forecast to produce 22.5 million tonnes of bauxite each year at the initial stage, possibly rising to 50 million tonnes a year

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN GOVE PTY LTD, JP MORGAN AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD

Fortescue exec tips rebound for iron ore price

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Original article by Andrew Burrell
The Australian – Page: 17-18 : 30-Jun-14

Fortescue Metals Group is confident that the price of iron ore will recover. CFO Stephen Pearce feels that the drop to $US89 a tonne on 16 June 2014 was the bottom of the trough in the present price cycle. He believes that the price will rise to about $US110 a tonne and remain at that level for a while. His view is based on strong Chinese economic data and the market adjustment to the increase in supply. Pearce warned that prices of $US150 and above were not likely to occur again

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

China’s Baosteel takes control of Aquila Resources

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Original article by Sarah-Jane Tasker
The Australian – Page: 19-20 : 26-Jun-14

The takeover of Aquila Resources by Baosteel and Aurizon will proceed after one of the co-founders supported the $A1.4 billion deal. Charles Bass has decided to sell his 10.7 per cent stake in the absence of a superior offer. Co-founder Tony Poli has already committed his holding of nearly 30 per cent. With its own stake of 20 per cent, Baosteel now has an interest of nearly 60 per cent. Poli has advised shareholders to wait until 3 July 2014 in case there is a superior offer

CORPORATES
AQUILA RESOURCES LIMITED – ASX AQA, AURIZON HOLDINGS LIMITED – ASX AZJ, SHANGHAI BAOSTEEL GROUP CORPORATION, MINERAL RESOURCES LIMITED – ASX MIN

Kennett in Rinehart spotlight

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Original article by Leo Shanahan
The Australian – Page: 6 : 26-Jun-14

The Supreme Court of New South Wales on 25 June 2014 heard that Ginia Rinehart was nominating three candidates for the role of trustee of the family trust at the heart of the legal action. It has been launched by her two eldest siblings against her mother, mining heiress Gina Rinehart. The latter has in the past had sole control of the $A4bn trust, which owns 23.4% of the Hancock Prospecting company. One of the three nominees is Stephen Harvey of Equity Trustees, cross-examined by barrister Christopher Withers about the ties between the Rineharts and Jeff Kennett. The ex-Victorian premier sits on the firm’s board

CORPORATES
EQUITY TRUSTEES LIMITED – ASX EQT, HANCOCK PROSPECTING PTY LTD, HOPE MARGARET HANCOCK TRUST, SUPREME COURT OF NEW SOUTH WALES