MINING CORPORATIONS – AUSTRALIA

BHP heads offshore for petroleum growth

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Original article by Matt Chambers
The Australian – Page: 19 : 8-Mar-18

Steve Pastor, the head of BHP Billiton’s petroleum division, is upbeat about the potential of oil fields in the Gulf of Mexico, including the Trion project and the Wildling discovery. BHP will drill another appraisal well at Trion by the end of 2018, followed by two more in 2019. Pastor also says BHP will participate in the Mexican Government’s next auction of exploration permits in the gulf. He adds that there has been strong interest in BHP’s US shale assets, and the company could potentially swap some onshore shale acreage for offshore conventional oil assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PEMEX PETROLEOS MEXICANOS

Rio iron ore mines shielded from potential US tariffs

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 8-Mar-18

Rio Tinto has advised that the automation of its haulage trucks will result in the loss of 200 jobs at its Brockman 4 and Marandoo iron ore mines in the Pilbara. The technology will also be rolled out at the West Angelas mine. Chris Salisbury, the CEO of Rio Tinto’s iron ore division, says 25 per cent of the company’s fleet has been automated to date. He adds that the steel tariff policy of President Donald Trump is unlikely to affect demand for iron ore from the Pilbara, as a small proportion of the steel output of Rio Tinto’s Asian customers is exported to the US.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Cut tax, funds will flow: BHP

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Original article by Matt Chambers, Andrew White
The Australian – Page: 1 & 2 : 7-Mar-18

BHP Billiton CEO Andrew Mackenzie argues that Australia cannot afford to not reduce its company tax rate. He says BHP would commence some proposed resources projects in Australia within months of federal parliament passing an across-the-board company tax cut, adding that at least some of these projects are dependent on tax reform. Meanwhile, economic modelling by KPMG suggests that Australia’s GDP will be reduced by around $A5bn if the nation does not respond to the Trump administration’s tax cuts with similar reforms. About 25,000 jobs would also be at risk, according to KPMG.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KPMG AUSTRALIA PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, THE GOLDMAN SACHS GROUP INCORPORATED, BLUESCOPE STEEL LIMITED – ASX BSL, SHELL COMPANY OF AUSTRALIA LIMITED

Coal price forecasts slowed Rio Mozambique impairment

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 26 : 7-Mar-18

Rio Tinto announced a $US2.86bn write-down in the value of its Mozambique coal assets in February 2013, less than 18 months after they were acquired for $US3.7bn in August 2011. The US Securities & Exchange Commission contends that a write-down should have been made much sooner. It also alleges that former Rio Tinto executives Tom Albanese and Guy Elliott had been aware that the value of the Mozambique assets had declined only months after their acquisition.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, RIVERSDALE MINING LIMITED, ALCAN INCORPORATED

Lynas sees rare chance in trade row

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Original article by Glenda Korporaal
The Australian – Page: 17 & 28 : 6-Mar-18

Lynas Corporation has posted a 2017-18 interim profit of $A63m, compared with a $A19.3m loss for the previous corresponding period. Revenue was up 75 per cent at $A200.9m, while the rare earths miner reduced its debt to $US256.5m. CEO Amanda Lacaze says the Federal Government’s proposed collaboration with the US on the development of rare earths is positive for the local industry, adding that Lynas has contacted the office of Prime Minister Malcolm Turnbull regarding the issue.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Explorer to drill Australia’s deepest hole chasing riches

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Mar-18

Artemis Resources intends to drill a hole to a depth of more than 3,300 metres below the surface at its tenement in the Pilbara. The super-deep hole is aimed at gaining more knowledge of the source of the small gold nuggets that have been found near the surface in the Pilbara. Artemis chairman David Lenigas says the junior explorer has had persistent approaches from a major North American resources group about deep-hole drilling.

CORPORATES
ARTEMIS RESOURCES LIMITED – ASX ARV, NOVO RESOURCES CORPORATION, ST BARBARA LIMITED – ASX SBM, NORTHERN STAR RESOURCES LIMITED – ASX NST, HOTCOPPER AUSTRALIA LIMITED, CRA LIMITED

Yancoal dares to dream dividends

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Original article by Paul Garvey
The Australian – Page: 31 : 2-Mar-18

Yancoal Australia has posted a 2017 net profit of $A229m, its first since 2012. The result was boosted by pre-tax earnings of $A276m for the Coal & Allied assets that Yancoal bought for $US2.7bn ($A3.5bn). Yancoal CEO Reinhold Schmidt notes that the deal made the Chinese-backed company the third-largest coal producer in Australia. He says dividends may be on the agenda at some point, but stresses that the focus is on delivering sustainable returns for investors.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, RIO TINTO LIMITED – ASX RIO

POSCO offtake deal for Pilbara lithium

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Original article by Peter Ker
The Australian Financial Review – Page: 26 : 1-Mar-18

Pilbara Minerals has struck a deal for South Korean steelmaker POSCO to buy at least 80,000 tonnes of spodumene concentrate from its Pilgangoora lithium mine each year. The offtake agreement includes provision for POSCO to buy up to 240,000 tonnes each year, which means that the bulk of Pilgangoora’s output for the next several years has been contracted. POSCO will also acquire a 4.75 per cent stake in Pilbara Minerals for $A79.6m, while the two companies propose to establish a downstream processing joint venture in Korea.

CORPORATES
PILBARA MINERALS LIMITED – ASX PLS, POSCO, TAWANA RESOURCES NL – ASX TAW, GALAXY RESOURCES LIMITED – ASX GXY, OROCOBRE LIMITED – ASX ORE, GREAT WALL MOTOR COMPANY LIMITED, GANFENG LITHIUM COMPANY LIMITED, GENERAL LITHIUM CORPORATION, TOYOTA TSUSHO CORPORATION

Vale challenges Rio and BHP on China sales

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 1-Mar-18

Brazilian iron ore miner Vale has indicated that since 2016 its profits margins on sales to China have matched those of BHP Billiton and Rio Tinto. Vale has increased the average iron content of its ore to 64.3 per cent, and a spokesman says this should rise further over the next several years. In contrast, BHP’s ore has an average iron content of 61 per cent, while Rio Tinto’s averages 62 per cent. Meanwhile, BlackRock fund manager Evy Hambro says expectations that the price discount for lower-grade iron ore will be sustained prompted the World Mining Trust to divest its stake in Fortescue Metals Group in 2017.

CORPORATES
VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BLACKROCK INCORPORATED, BLACKROCK WORLD MINING TRUST PLC

Newcrest buys stake in Lundin Gold

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 27-Feb-18

Newcrest Mining will acquire a 27.1 per cent stake in Canada’s Lundin Gold at a cost of $US250m ($A319m). However, the deal imposes restrictions on Newcrest’s ability to lift its stake above 32 per cent, making a takeover bid difficult in the near-term. Lundin’s assets include the Fruta Del Norte gold project in Ecuador, a country to which Newcrest already has exposure via its stake in Solgold. The Fruta Del Norte mine is slated to commence production in late 2019.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, LUNDIN GOLD INCORPORATED, SOLGOLD PLC, RBC CAPITAL MARKETS, NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION, GOLDCORP INCORPORATED