MINING CORPORATIONS – AUSTRALIA

Miners fear tax grab by Labor government

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 1-Nov-18

Gold Fields CEO Nick Holland has warned that the South Africa-based miner may reconsider future investment in Australia if a change of federal government results in an increase in the sector’s royalties and taxes. Gold Fields has a 50 per cent stake in the Gruyere gold project in Western Australia, while its other local assets include the St Ives, Granny Smith and Darlot gold mines. Meanwhile, Fortescue Metals Group CEO says mining companies need policy certainty to continue investing in Australia rather than offshore.

CORPORATES
GOLD FIELDS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLD ROAD RESOURCES LIMITED – ASX GOR

Adani close to action on scaled-back Carmichael mine

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Original article by Mark Ludlow
The Australian Financial Review – Page: 2 : 1-Nov-18

Adani Mining CEO Lucas Dow has declined to comment on speculation that the company will make a final investment decision on the Carmichael thermal coal mine in coming weeks. However, Adani is believed to be planning for annual production of 10-15 million tonnes in the first stage of the project, at a cost of less $2bn. The mine is now expected to have maximum production capacity of about 27 million tonnes a year, compared with initial plans for 60 million tonnes. The project is forecast to generate 1,500 jobs.

CORPORATES
ADANI MINING PTY LTD, AUSTRALIAN LABOR PARTY, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY, BHP BILLITON LIMITED – ASX BHP

BHP cuts US, China growth targets on trade tensions

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 31-Oct-18

BHP Billiton has forecast that GDP growth for both China and the US will be cut by 0.5 per cent to 0.75 per cent over the next two years as a result of the trade war between the two nations. However, BHP’s chief commercial officer Arnoud Balhuizen says the trade tensions have not yet had a "material impact" on the resources giant, even though it has weighed on the prices of some commodities. Balhuizen expects demand for iron ore and coking coal to remain strong in 2019.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

Billionaires battle over small change

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 30-Oct-18

Hancock Prospecting and Wright Prospecting have been involved in a dispute over the Rhodes Ridge iron ore deposit for more than 15 years. The deposit has estimated reserves of 5.3 billion tonnes of high-grade iron ore, and it is valued in the billions of dollars. It is owned by Wright Prospecting and Rio Tinto, and it could be developed in the next 10 years. The Western Australian Court of Appeal has ruled that Hancock Prospecting does not have to pay Wright Prospecting special costs.

CORPORATES
HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, RIO TINTO LIMITED – ASX RIO, COURT OF APPEAL (WESTERN AUSTRALIA), SUPREME COURT OF WESTERN AUSTRALIA

Relief looms for lower-grade ore miners

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 30-Oct-18

The price of benchmark iron ore with 62 per cent iron content has risen to its highest level for eight months in late October. Macquarie attributes the recent rally to factors such as an increase in Chinese steel production ahead of government-mandated winter cutbacks and growing demand for lower-grade iron ore amid falling margins. Macquarie notes that stockpiles of lower-grade Australian ore have fallen in recent weeks. Meanwhile, the discount for lower-grade ore is expected to narrow, which will benefit companies such as Fortescue Metals Group and Mineral Resources.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERAL RESOURCES LIMITED – ASX MIN, MACQUARIE GROUP LIMITED – ASX MQG, JP MORGAN AUSTRALIA LIMITED, BCI MINERALS LIMITED – ASX BCI, CLEVELAND-CLIFFS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, BROCKMAN MINING LIMITED – ASX BCK

Iron ore shipments drop 8.6pc as Fortescue Metals Group starts $500m buyback

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Original article by Rushil Dutta
The West Australian – Page: Online : 26-Oct-18

Pure-play iron ore miner Fortescue Metals Group still expects its 2018-19 production to be within the range of 165 million to 173 million tonnes. This is despite its shipments for the first quarter falling by 8.6 per cent year-on-year to 40.2 million tonnes. Fortescue has also advised that its cash production costs rose by nine per cent in the September quarter, to an average of $US13.19 per wet metric tonne. Costs for the full year are expected to be within its previous guidance of $US12 to $US13 per wet metric tonne.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP digs deep to make new Pilbara mine female friendly

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 26-Oct-18

BHP Billiton has awarded about $1.5 billion worth of contracts associated with its new South Flank iron ore mine in the Pilbara. BHP has required contractors to demonstrate their track record with regard to gender and cultural diversity when bidding for South Flank contracts, as part of its push for the project to have a gender-balanced workforce. Women comprise about 35 per cent of workers at South Flank, which is slated to commence production in 2021.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

Coronado Coal burnt as shares dip on debut

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Original article by Matt Chambers, Samantha Bailey
The Australian – Page: 21 : 24-Oct-18

Coronado Coal has a market capitalisation of around $3.5bn after the stock closed at $3.60 on its first day of trading on the Australian sharemarket. Shares in Coronado were issued at $4 apiece, at the bottom end of the indicative range of between $4 and $4.80 in its prospectus. Coronado acquired the Curragh coking and thermal coal mine in Queensland from Wesfarmers earlier in 2018, while it also owns coking coal mines in the US.

CORPORATES
CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, WESFARMERS LIMITED – ASX WES, SHAW AND PARTNERS LIMITED, WHITEHAVEN COAL LIMITED – ASX WHC, YANCOAL AUSTRALIA LIMITED – ASX YAL, NEW HOPE CORPORATION LIMITED – ASX NHC, STANMORE COAL LIMITED – ASX SMR, ENERGY AND MINERALS GROUP, ATLAS FUNDS MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, STANWELL CORPORATION LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, BELL POTTER SECURITIES LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

Why Coronado was shunned by big fundies

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 23-Oct-18

Many Australian fund managers chose not to participate in the IPO of Coronado Global Resources, forcing private equity firm Energy & Minerals Group to scale back the size of the raising and the issue price of Coronado share. Some resources-focused fund managers are said to have taken the view that Coronado’s offer price was less compelling than similar IPOs, while its commitment to pay out all free cash flows in its first year as dividends is also believed to have been a concern.

CORPORATES
CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, ENERGY AND MINERALS GROUP, SHAW AND PARTNERS LIMITED, JANUS HENDERSON GROUP PLC – ASX JHG, PEABODY ENERGY CORPORATION

Coronado pushes past IPO blow

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Original article by James Frost
The Australian Financial Review – Page: 18 : 22-Oct-18

Coronado Global Resources is slated to commence trading on the Australian sharemarket on 23 October. The IPO raised $774m and was oversubscribed, although Coronado had scaled back the size of the offering from an initial target of $1.4m. Metallurgical coal accounted for about 75 per cent of Coronado’s total production in 2017. The company owns coal mines in Queensland’s Bowen Basin and the US state of Virginia. Energy & Minerals Group (EMG) will retain a stake of up to 78.9 per cent in Coronado.

CORPORATES
CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, ENERGY AND MINERALS GROUP, THE GOLDMAN SACHS GROUP INCORPORATED, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, BELL POTTER SECURITIES LIMITED, HERBERT SMITH FREEHILLS PTY LTD, SULLIVAN AND CROMWELL, WHITEHALL ASSOCIATES, NEW HOPE COAL AUSTRALIA, YANCOAL AUSTRALIA LIMITED – ASX YAL