MINING CORPORATIONS – AUSTRALIA

Rio coy on big copper discovery

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Original article by Matt Chambers
The Australian – Page: 19 : 25-Jun-18

Rio Tinto has declined to confirm or deny reports that it has established an exploration camp in the Pilbara’s North Paterson province. Satellite photos suggest that the resources giant has set up a camp in the province’s sand dunes, which in turn has prompted speculation of a major copper find. The northern part of the province is largely unexplored due to the presence of sand, but the southern region includes the Telfer gold mine and the Woodie Woodie manganese mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALLOY RESOURCES LIMITED – ASX AYR, FORTESCUE METALS GROUP LIMITED – ASX FMG, SIPA RESOURCES INTERNATIONAL LIMITED – ASX SRI, NEWCREST MINING LIMITED – ASX NCM, NEWMONT AUSTRALIA LIMITED, ANTIPA MINERALS LIMITED – ASX AZY

Atlas board backs Rinehart’s $390m bid

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 22-Jun-18

Mineral Resources will be entitled to a break fee of $A3.12m after Atlas Iron’s board recommended that shareholder accept the rival bid from Gina Rinehart’s Hancock Prospecting. Atlas had previously endorsed Mineral Resources’ scrip offer of $A0.036 per share, which was trumped by Hancock’s cash bid of $A0.042 per share. Fortescue Metals Group could also make a counter-bid for Atlas in the wake of its recent move to acquire a 19.9 per cent stake in the iron ore producer.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, REDSTONE CORPORATION PTY LTD, CLEVELAND-CLIFFS INCORPORATED

Bottled-up investment plans freed

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Original article by James Thomson
The Australian Financial Review – Page: 36 : 22-Jun-18

Australian mining companies are capitalising on factors such as rising commodity prices and strong balance sheets to ramp up investment. BHP Billiton and Fortescue Metals Group recently announced plans for new iron ore mines in the Pilbara, while South32 has struck a deal to acquire Arizona Mining. However, much of the new investment is intended to replace projects that are nearing the end of their mine life, while miners are also pursuing growth plans that were put on hold following the end of the mining boom.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, ARIZONA MINING INCORPORATED, RIO TINTO LIMITED – ASX RIO, ATLAS IRON LIMITED – ASX AGO, OZ MINERALS LIMITED – ASX OZL, PEMBROKE RESOURCES PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, EMR CAPITAL PTY LTD, PT ADARO ENERGY TBK, GLENCORE PLC

MinRes yields to Rinehart in Atlas race

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Original article by Brad Thompson
The Australian Financial Review – Page: 26 : 21-Jun-18

Atlas Iron directors are expected to recommend that shareholders accept a $A390m takeover bid from Gina Rinehart’s Hancock Prospecting, after Mineral Resources advised that it will not match the offer. However, Fortescue Metals Group could leverage its 19.9 per cent stake in Atlas to block the deal; Peter O’Connor of Shaw & Partners suggests that if Fortescue does so it could then potentially seek an agreement with Hancock to split Atlas’s assets. O’Connor adds that Fortescue could also make a counter-bid for Atlas.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, REDSTONE CORPORATION, SHAW AND PARTNERS LIMITED

EMR Capital buys BHP Chile copper mine for $310 million

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Original article by James Thomson
The Australian Financial Review – Page: 13 : 20-Jun-18

BHP Billiton has sold its Cerro Colorado copper mine in Chile to private equity firm EMR Capital for $US230m ($A310m). BHP will also receive $US40m from the sale of inventory from the mine, while a potential additional payment of up to $US50m is linked to the outlook for the copper price. EMR’s co-founder Jason Chang says the firm’s focus is on increasing the mine’s output and its resource base, rather than the copper price. Chang expects EMR to make further acquisitions in the next two years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, ADARO ENERGY

MinRes losing battle for Atlas

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Original article by Paul Garvey
The Australian – Page: 21 : 20-Jun-18

Atlas Iron has given Mineral Resources three days to match the rival bid from Gina Rinehart’s Hancock Prospecting. Mineral Resources’ share price has fallen sharply since launching its scrip bid; based on its closing price of $A16.15 on 19 June, the implied value of its offer has fallen to $A0.028 per share, compared with Hancock’s cash bid of $A0.042. Atlas’s port access rights at Port Hedland are a key attraction for the bidders – despite the Western Australian Government’s ruling that junior miners have priority access – along with accumulated tax losses that exceed $A500m.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio’s flexible approach in production revamp

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 19-Jun-18

Rio Tinto has advised that its iron ore production and rail capacity is expected to rise to 360 million tonnes by the end of 2019, in line with its port capacity. The resources group has previously forecast that iron ore production for 2018 will be within the range of 330 million to 340 million tonnes. Rio Tinto has also signalled that it will adopt a "value over volume" strategy for its Pilbara operations, which will allow it to adjust production of different iron ore products in response to demand from buyers or changes in the price of the steel input.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD

Billionaire battle as Rinehart bids $390m for Atlas

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 19-Jun-18

Hancock Prospecting’s cash offer of $A0.042 per share for Atlas Iron and follows its recent acquisition of a substantial shareholding in the iron ore miner. Mineral Resources has previously offered $A0.036 per share for Atlas in a scrip bid, while Andrew Forrest’s Fortescue Metals Group has acquired a 19.9 per cent stake in Atlas. There is speculation that mining magnate Gina Rinehart is primarily interested in two proposed new berths at Port Hedland, which are adjacent to Hancock’s existing berths. However, the Western Australian Government would have to back down on its stance that junior iron ore miners should have priority access to the new berths.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, REDSTONE CORPORATION, SHAW AND PARTNERS LIMITED, WESTERN AUSTRALIA. DEPT OF TRANSPORT, AWE LIMITED, MITSUI AND COMPANY LIMITED

Legal standoff leaves mining leases in limbo

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Original article by Brad Thompson
The Australian Financial Review – Page: 10 : 18-Jun-18

Mining companies continue to face uncertainty over the validity of their Western Australian mining leases in the wake of a High Court ruling in 2017. The state government committed to legislating to ensure that leases affected by the ruling are valid, but it has received legal advice to the effect that the federal government must first make amendments to the Native Title Act. The federal government in turn maintains that WA must first amend its Mining Act. The WA government estimates that nearly 25 per cent of mining leases that have been granted since 2006 could potentially be invalid.

CORPORATES
HIGH COURT OF AUSTRALIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, ASSOCIATION OF MINING AND EXPLORATION COMPANIES

Spotlight on iron ore about to shift to Rio Tinto

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 23 : 18-Jun-18

Recent announcements from BHP Billiton and Fortescue Metals Group that they will develop new iron ore mines in the Pilbara has prompted speculation as to when Rio Tinto will make a similar announcement. Koodaideri is widely tipped to be Rio’s next iron ore mine, and the project was first discussed by the resources giant’s board in late 2013. Rio Tinto’s head of iron ore, Chris Salisbury, is scheduled to hold a series of briefings and site visits for investors over the next week, although an announcement on Koodaideri is not expected to be made until later in the year.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, SHAW AND PARTNERS LIMITED, DEUTSCHE BANK AG, HANCOCK PROSPECTING PTY LTD