MINING CORPORATIONS – AUSTRALIA

Rio Tinto eyes cash returns, record tonnage

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Original article by Melissa Yeo
The Australian – Page: 16 : 22-Jan-19

Glyn Lawcock of UBS says Rio Tinto could potentially expand its share buyback program and pay a special dividend in 2019 using the proceeds of asset sales. He estimates that the resources group still has about $U4.4bn on hand from asset sales that could be returned to shareholders. Meanwhile, UBS forecasts that Rio Tinto will produce 353 million tonnes of iron ore in 2019, compared with the miner’s own guidance of 338 million to 350 million tonnes.

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

Offers flood in as South32 readies for South Africa coal exit

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Original article by Paul Garvey
The Australian – Page: 15 & 16 : 18-Jan-19

Diversified miner South32 expects final bids for its South African thermal coal assets to be submitted by the end of July. CEO Graham Kerr says the assets have attracted strong interest from potential bidders, and this is likely to result in 2-3 firm offers. Meanwhile, South32 has advised that CFO Brendan Harris has become its chief marketing officer, while Katie Tovich in turn has been appointed CFO.

CORPORATES
SOUTH32 LIMITED – ASX S32, ALUMINA LIMITED – ASX AWC, ALCOA INCORPORATED, WHITEHAVEN COAL LIMITED – ASX WHC

Whitehaven on track for record profit in 2019

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Original article by Luke Housego
The Australian Financial Review – Page: 21 : 18-Jan-19

Whitehaven Coal has advised that it still expects to meet its 2018-19 production guidance of 22-23 million tonnes. Production rose by 11 per cent year-on-year in the December quarter, although sales were seven per cent lower than previously. Whitehaven has indicated that its full-year costs are expected to increase by 4.7 per cent to $67 per tonne. Whitehaven shares closed 3.7 per cent higher at $4.71 on 17 January.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, MORGANS FINANCIAL LIMITED

BHP and BlueScope to sink local crews after 17 years

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Original article by Paul Garvey
The Australian – Page: 17 : 16-Jan-19

The Maritime Union of Australia has criticised BHP and BlueScope Steel for opting against renewing contracts to charter two iron ore bulk carriers. The vessels are used to ship iron ore from BHP’s mines in the Pilbara to BlueScope’s Port Kembla steelworks; a BHP spokesman says the contracts are a legacy of BlueScope’s spin-off in 2002. The ships were the last two iron ore vessels to be manned by Australian crews. The MUA says the crews will be replaced by low-paid foreign workers.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, MARITIME UNION OF AUSTRALIA, TEEKAY SHIPPING CORPORATION

Fortescue could benefit from Rio’s port blaze

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Original article by Paul Garvey
The Australian – Page: 19 : 15-Jan-19

Lower-grade iron ore is currently trading at a discount of about 27 per cent to the benchmark price, compared with 45 per cent a year ago. Peter O’Connor of Shaw & Partners says the discount may narrow further in the wake of a fire at the port of Cape Lambert in Western Australia. Rio Tinto ships about 30 million tonnes of lower-grade iron ore via Cape Lambert, and while it still assessing the damage, it has declared force majeure over shipments from the port. Fortescue Metals Group ships some 170 million tonnes of lower-grade iron ore each year.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED

Gascoyne taps bank to fend off takeovers

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Original article by Paul Garvey
The Australian – Page: 15 : 14-Jan-19

Potential takeover target Gascoyne Resources has appointed Macquarie as its adviser to help it defend any unwanted bids. Gascoyne’s main asset is the 1.3 million ounce Dalgaranga gold project in Western Australia, but Gascoyne has encountered issues with its processing plant and lower-than-expected grades from some pits, while the company has been the subject of management instability in recent times, with the resignation of both MD Mike Dunbar and chairman Ian Murray. Gascoyne advised on 24 December that it expected Dalgaranga to produce between 92,000 and 102,000 ounces of gold in calendar 2019.

CORPORATES
GASCOYNE RESOURCES LIMITED – ASX GCY, MACQUARIE GROUP LIMITED – ASX MQG, SILVER LAKE RESOURCES LIMITED – ASX SLR, DORAY MINERALS LIMITED – ASX DRM, RAMELIUS RESOURCES LIMITED – ASX RMS, EXPLAURUM LIMITED – ASX EXU, APHRODITE GOLD LIMITED, EXCELSIOR GOLD LIMITED, NORTHERN STAR RESOURCES LIMITED – ASX NST, TRIBUNE RESOURCES LIMITED – ASX TBR, RAND MINING LIMITED – ASX RND

BHP silent on reports driver of runaway 268-car iron ore train in Pilbara is pursuing claim of unfair dismissal

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Original article by Stuart McKinnon
The West Australian – Page: Online : 11-Jan-19

BHP has advised that the train driver who was in charge of a Pilbara iron ore train that had to be derailed in November no longer works for the company. However, the resources group has declined to comment on reports that the driver intends to pursue an unfair dismissal case. BHP has indicated that mechanical failure and human error contributed to the incident in which it was forced to deliberately derail the train after it travelled for 50 minutes without a driver.

CORPORATES
BHP GROUP LIMITED – ASX BHP

BHP may lift US oil investment

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Original article by Perry Williams
The Australian – Page: 15 : 10-Jan-19

BHP is tipped to make a final investment decision on an expansion of the Atlantis oil field in the Gulf of Mexico within months. BHP has a 44 per cent stake in the oil field, and speculation that it will proceed with the expansion has been heightened after joint venture partner BP approved the third stage of the project. BP is now the biggest producer of oil in the Gulf of Mexico, with output of 300,000 barrels per day.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC, PEMEX PETROLEOS MEXICANOS

Resolute weighs up Ravenswood spin-off

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 8-Jan-19

Resolute Mining has advised that its gold production rose by 33 per cent to 73,691 ounces in the December 2018 quarter. Meanwhile, CEO John Welborn says a decision on the Ravenswood gold mine in Queensland will be made in the first half of 2019. Resolute is considering options such as a sale or spin-off for the Queensland mine as the company shifts its geographical focus to Africa. Resolute may also be open to acquiring assets that could be divested following the merger between Barrick Gold and Randgold Resources.

CORPORATES
RESOLUTE MINING LIMITED – ASX RSG, BARRICK GOLD CORPORATION, RANDGOLD RESOURCES LIMITED

Yancoal moves on Hunter mines

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Original article by Eric Johnston
The Australian – Page: 15 : 7-Jan-19

A group of Chinese lenders assumed ownership of the Ashton, Austar and Donaldson coal mines in the Hunter Valley in February 2016, after Yancoal Australia secured a debt funding deal. Yancoal remained operator of the mines, and its Chinese parent Yankuang Group has advised that one of the bond holders has exercised a put option to sell its bonds to Yankuang. Yancoal has indicated that the move is unlikely to have any significant implications for it.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, YANKUANG CORPORATION GROUP LIMITED, BANK OF CHINA GROUP, INDUSTRIAL BANK COMPANY LIMITED, BOHAI HARVEST RST (SHANHAI) EQUITY INVESTMENT MANAGEMENT COMPANY LIMITED