MINING CORPORATIONS – AUSTRALIA

BHP dials down copper target after unplanned outages

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Original article by Peter Ker
The Australian Financial Review – Page: 19 & 24 : 18-Oct-18

BHP Billiton’s production report for the September quarter shows that the resources giant has scaled back its forecast for copper output in 2018-19. BHP expects full-year production to be within the range of 1.62 million to 1.705 million tonnes, compared with previous guidance of 1.67 million to 1.77 million tonnes. The downgrade has been attributed to disruptions at the Olympic Dam mine in South Australia and the Spence project in Chile. Meanwhile, BHP’s iron ore shipments totalled 69.42 million tonnes during the quarter, and the company still expects Pilbara iron ore volumes of 273 million to 283 million tonnes for the full year.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, RBC CAPITAL MARKETS

Miners warn Labor over Indonesia FTA

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Original article by John Kehoe, Ronald Mizen
The Australian Financial Review – Page: 6 : 17-Oct-18

Australian mining companies argue that a proposed free-trade agreement with Indonesia must include an investor-state dispute settlement clause, given the Indonesian government’s recent policy of requiring resources projects to have majority ownership. The mining sector accounts for about one-third of Australia’s foreign direct investment in Indonesia. However, Labor opposes the federal government’s plans to include an ISDS clause in the FTA, a stance that is backed by unions.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BLUESCOPE STEEL LIMITED – ASX BSL, COCA-COLA AMATIL LIMITED – ASX CCL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIA-INDONESIA BUSINESS COUNCIL LIMITED, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, CHURCHILL MINING PLC, PLANET MINING, AUSTRALIA. EXPORT FINANCE AND INSURANCE CORPORATION, INDONESIA-AUSTRALIA BUSINESS PARTNERSHIP GROUP, LAW COUNCIL OF AUSTRALIA, PHILIP MORRIS INTERNATIONAL INCORPORATED, WHITE INDUSTRIES AUSTRALIA LIMITED

Local miners struggle to keep pace with Vale

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 17-Oct-18

Rio Tinto’s iron ore shipments from the Pilbara totalled 81.9 million tonnes in the September quarter, compared with 88.5 million in the June quarter. Rio Tinto has attributed the fall in shipments to factors such as maintenance work and the death of a worker at one of its mines. BHP Billiton and Fortescue Metals Group are also tipped to report lower iron ore export volumes for the quarter. Meanwhile, Brazilian rival Vale has reported record third-quarter production of 104.9 million tonnes, while its sales rose by nine per cent to 84 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, ROY HILL HOLDINGS PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, ATLAS IRON LIMITED – ASX AGO, RBC CAPITAL MARKETS

Rio Tinto may cut rates on Mongolia loans in compromise move

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 15-Oct-18

Recent media reports in Mongolia have suggested that Rio Tinto could be prepared to reduce the interest rates on the loans it provides to the government-owned company that has a 34 per cent stake in the Oyu Tolgo copper mine. According to the reports, Mongolian MP Gombojavyn Zandanshatar has indicated that Rio Tinto will reduce its loan interest rates as part of negotiations with the government regarding their agreement to expand the mine. The government is dependent on loans from Rio Tinto to finance its share of construction costs.

CORPORATES
RIO TINTO LIMITED – ASX RIO, OYU TOLGOI LLC, TURQUOISE HILL RESOURCES LIMITED, TORONTO STOCK EXCHANGE, BHP BILLITON LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL

Fortescue in $500m share buy-back

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Original article by Brad Thompson
The Australian Financial Review – Page: 25 : 12-Oct-18

Shares in Fortescue Metals Group closed nearly 2.5 per cent higher at $3.76 on 11 October, after the pure-play iron ore miner announced plans to repurchase $500m worth of its shares. Peter O’Connor of Shaw & Partners has welcomed the share buyback, which has coincided with the recent rise in the price of lower-grade iron. Fortescue is expected to launch the buyback following the release of its quarterly results in late October.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SHAW AND PARTNERS LIMITED, RBC CAPITAL MARKETS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

How a $US1 move is making millions for Australian miners

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Original article by Stephen Bartholomeusz
The Age – Page: 21 : 11-Oct-18

A rally in the price of iron ore, crude oil and metallurgical coal in the last month has in turn sparked a rise in the share prices of BHP Billiton and Rio Tinto. It is estimated that BHP’s EBITDA rises or falls by about $US227m for every $US1 movement in the iron ore price. The steel input is currently trading above $US70 per tonne, compared with BHP’s average realised price of $US56.71/tonne in 2017-18. Likewise, every $US1 per barrel change in the price of crude oil has a $US43m impact on BHP’s EBITDA.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

At long last, Gina Rinehart’s Hancock Prospecting claims win in Atlas Iron takeover saga

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Original article by Stuart McKinnon
The West Australian – Page: Online : 10-Oct-18

Hancock Prospecting has gained acceptances for more than 90 per cent of Atlas Iron’s shares, allowing it to move to the compulsory acquisition stage of its takeover bid. Hancock had initially offered $0.042 per share for Atlas, valuing its bid at $390m, before subsequently increasing it to $427m. Atlas’s assets include the Mt Webber iron ore mine, while Hancock has a controlling stake in the Roy Hill iron ore mine and a 50 per cent stake in the Hope Downs project.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERAL RESOURCES LIMITED – ASX MIN

China’s coal clamps no surprise, says Yancoal

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 9-Oct-18

James Rickards, Yancoal Australia’s general manager of investor relations, does not expect coal prices to be significantly affected by China’s move to reduce thermal coal imports. He argues that it had been widely anticipated, as the Chinese government tends to curb coal imports every year in order to support local producers. Meanwhile, Lachlan Shaw of UBS says Chinese demand for thermal coal is likely to remain strong during the upcoming northern winter.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, UBS HOLDINGS PTY LTD, RIO TINTO LIMITED – ASX RIO, INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

BHP faces new dam burst case

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Original article by Ben Butler, Matt Chambers
The Australian – Page: 17 & 20 : 4-Oct-18

Law firm Johnson Winter & Slattery has filed a class action against BHP Billiton on behalf of the Los Angeles County Employees Retirement Association. The US pension fund alleges that the value of its stake in BHP fell sharply after the miner’s shares were heavily sold down in the wake of the Samarco iron ore tailings dam collapse in November 2015. BHP is already subject to two Australian lawsuits over the disaster. Meanwhile, prosecutors in Brazil’s state of Minas Gerais are believed to be poised to announce the settlement of a civil claim against BHP and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, LOS ANGELES COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION, JOHNSON WINTER AND SLATTERY, VALE SA, MAURICE BLACKBURN PTY LTD, PHI FINNEY McDONALD PTY LTD, FEDERAL COURT OF AUSTRALIA, SAMARCO MINERACAO SA

Lynas fair go plea as tax review looms

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 16 : 3-Oct-18

Australian-listed rare earths producer Lynas Corporation still does not know if the new Malaysian Government will undertake a review of its refinery. There has been speculation that any such review could include the tax break that Lynas received from the previous government. Lynas CEO Amanda Lacaze says a review of the tax break – which will shortly need to be renewed – is highly possible, and she has urged the government led by Mahathir Mohamad to be "fair and just" if it does undertake a review.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC