MINING CORPORATIONS – AUSTRALIA

Rio warns Oyu Tolgoi a test case for investment in Mongolia

roymorgansocial Leave a comment

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

Rio Tinto executive Arnaud Soirat says the Mongolian Government must not seek changes to the 2009 investment agreement regarding the Oyu Tolgoi mine. He says the international business community will view the $US5.3bn expansion of the copper and gold mine as a "test case" for future investment in Mongolia. The nation’s deputy mining minister, Zagdjav Deleg, stated in March that the government could potentially move to full ownership of the mine if the investment agreement was found to have been secured as a result of corruption.

CORPORATES
RIO TINTO LIMITED – ASX RIO, OYU TOLGOI LLC, MONGOLIA. MINISTRY OF MINERAL RESOURCES AND ENERGY, TURQUOISE HILL RESOURCES LIMITED

Fortescue unfazed by trade tensions

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 21-May-18

Fortescue Metals Group CEO Elizabeth Gaines says trade tensions between the US and China did not attract much attention at a recent Bank of America/Merrill Lynch conference in the US. President Donald Trump is threatening to impose tariffs on steel and other products, but Gaines says China exports very little steel to the US. She adds that sentiment concerning mining and commodities is very positive at present.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, WESFARMERS LIMITED – ASX WES, AGL ENERGY LIMITED – ASX AGL, HELLOWORLD TRAVEL LIMITED – ASX HLO

Kidman powers up with Tesla lithium deal

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 19 & 30 : 18-May-18

Kidman Resources has advised that it has secured electric car maker Tesla as a foundation client for its proposed lithium hydroxide processing plant in Western Australia. Growing interest in electric cars has created strong demand for commodities like lithium and cobalt that are used in their batteries. Kidman has indicated that its initial deal with Tesla will run for three years, with the option for two three-year extensions.

CORPORATES
KIDMAN RESOURCES LIMITED – ASX KDR, TESLA INCORPORATED, SOCIEDAD QUIMICA Y MINERA SA, PILBARA MINERALS LIMITED – ASX PLS, GREAT WALL AUTOMOBILE HOLDINGS, BMW AG, VOLKSWAGEN AG, MERCEDES-BENZ AG

BHP explores growth options

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 20 : 17-May-18

BHP Billiton CEO Andrew Mackenzie has told a conference in the US that the group’s debt is now within its target range of $US10bn to $US15bn, compared with $US15.4bn at the end of 2017. He also flagged further capital returns to shareholders and said BHP has a range of growth options that could potentially add value to the tune of $US15bn. Meanwhile, Rio Tinto CEO Jean-Sebastien Jacques has told the conference that the resources giant may use some excess cash to finance acquisitions rather than return it to shareholders.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED

Forrest joins Bishop in China media attack

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 16-May-18

Fortescue Metals Group has exported more than one billion tonnes of iron ore since its inaugural shipment to a Chinese customer in May 2008. Fortescue founder Andrew Forrest has marked the 10th anniversary by criticising the Australian media’s coverage of China. He was especially scathing of the print media’s on the negative aspects of Australia’s relationship with China. Meanwhile, Forrest said Fortescue is progressing with its expansion into South America, as well as plans to diversify into other minerals.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, SHANGHAI BAOSTEEL GROUP CORPORATION

Robo trains cut Rio’s iron ore journey time by 20pc

roymorgansocial Leave a comment

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

Rio Tinto has advised that a project to automate its iron ore trains in the Pilbara should be completed and receive regulatory approval by the end of 2018. Rio Tinto executive Steve McIntosh has told a conference in Sydney that about 65 per cent of its trains are currently running in autonomous mode with a driver on board, and the automated trains can arrive at the port about 20 per cent faster than regular trains. The AutoHaul project has been marred by delays and cost over-runs.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ANSALDO STS, ROY HILL HOLDINGS PTY LTD

Bank scandals to impact all business: BHP

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 15 : 14-May-18

BHP CEO Andrew Mackenzie warns that the banking royal commission’s revelations about misconduct in the financial sector have implications for the broader business community. He says other companies will have to be more transparent and accountable, particularly with regard to remuneration. A survey has found that BHP’s reputation has risen strongly in the wake of a marketing campaign and rebranding in 2017. BHP and Rio Tinto have had their own scandals in recent years, including corruption investigations and tax disputes.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RIO TINTO LIMITED – ASX RIO, SAMARCO MINERACAO SA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Rio, Alcoa, Apple in green aluminium bid

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 21 : 11-May-18

Rio Tinto aims to commercialise a new aluminium smelting process that does not generate carbon dioxide emissions within six years. The resources group will develop the Elysis process in partnership with Alcoa and technology giant Apple. Aluminium generates carbon dioxide emissions from both the smelting process itself and the electricity that is consumer in its production. Rio Tinto and Alcoa claim that the Elysis process is the industry’s most significant innovation in more than a century.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCOA INCORPORATED, APPLE INCORPORATED

Quarterly coal deals are dead, buried: BHP

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 26 : 8-May-18

BHP Billiton executive Arnoud Balhuizen says coal producers and buyers are unlikely to return to the quarterly contract pricing system. The shift away from the traditional pricing system gained momentum in mid-2017 when coking coal buyer Nippon Steel commenced a trial of a new system whereby contract prices were determined on the basis of the average spot price over the previous three months. Meanwhile, Balhuizen believes that the rise in the price of higher-grade coal and iron ore is likely to be structural rather than cyclical.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NIPPON STEEL AND SUMITOMO METAL CORPORATION, MITSUBISHI CORPORATION

Rinehart’s Roy Hill exports yo-yo in a struggle for consistency

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 7-May-18

Roy Hill Holdings has indicated that its iron ore export volumes in April 2018 were consistent with its target of shipping 55 million tonnes a year. Although Roy Hill does not usually release data on its export volumes, Port Hedland statistics suggest that it shipped less than 11.7 million tonnes in the March 2018 quarter, which implies an annualised rate of around 47 million tonnes. Peter O’Connor of Shaw & Partners says the end of the cyclone season should enable Roy Hill to achieve its target run rate over the next three quarters.

CORPORATES
ROY HILL HOLDINGS PTY LTD, PORT HEDLAND PORT AUTHORITY, SHAW AND PARTNERS LIMITED, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, BCI MINERALS LIMITED – ASX BCI