MINING CORPORATIONS – AUSTRALIA

Rio speeds up plan for driverless ore trains

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Original article by Matt Chambers
The Australian – Page: 15 & 24 : 23-Jan-18

Rio Tinto’s AutoHaul project to fully automate its iron ore trains in the Pilbara is slated for completion by the end of 2018. The project was first mooted in 2008 and it was initially expected to be completed in 2015, while it is likely to cost significantly more than the $US518m that had originally been budgeted. However, Rio Tinto expects the move to driverless trains will allow it to ship an additional 20 million tonnes of iron ore each year, which will in turn significantly increase its profits.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Coking coal headaches prompt BHP to cut production guidance

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Original article by Matt Chambers
The Australian – Page: 15 & 16 : 19-Jan-18

BHP Billiton has advised that its overall production for 2017-18 is expected to be six per cent higher than previously. It had forecast seven per cent growth in production in October. Meanwhile, BHP’s coking coal production fell by eight per cent during the second quarter, to 10 million tonnes, but its iron ore output in the Pilbara increased by 11 per cent to a record 72 million tonnes. BHP will report its half-year results in February, with analysts expecting a underlying interim net profit of $US4.5bn ($5.6bn), compared with $US3.2bn previously.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

OZ looks to build on copper’s solid foundation

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Original article by Paul Garvey
The Australian – Page: 15 : 18-Jan-18

OZ Minerals expects copper production at its Prominent Hill mine in South Australia to be within the range of 100,000 to 110,000 tonnes in 2018, and 95,000 to 105,000 tonnes in 2019. Its previous guidance was for output of 90,000 to 100,000 tonnes in both years. Copper production at Prominent Hill totalled 112,008 tonnes in 2017, at an average cash cost of $US0.83 per pound. Meanwhile, OZ will invest some $A500m on development of its Carrapateena copper mine in 2018, while it has allocated at least $A38m to an exploration program in South Australia.

CORPORATES
OZ MINERALS LIMITED – ASX OZL

Rio Tinto wants US fraud charges dropped

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 23 : 18-Jan-18

Lawyers representing former Rio Tinto CEO Tom Albanese have rejected allegations that he concealed the true value of a Mozambique coal project, arguing that other officers and employees of the resources group were responsible for asset valuations and impairment charges. Albanese’s lawyers, as well as those representing former CFO Guy Elliot and Rio Tinto, will ask a US court to dismiss the Securities & Exchange Commission’s fraud charges.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, JONES DAY

Lithium prices to peak as local exports soar

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

Roskill MD Robert Baylis has warned of a looming oversupply of lithium as Australian producers ramp up output. Baylis notes that production of spodumene in particular is now much higher than global demand. Western Australia’s spodumene export volumes have risen by 84 per cent in recent years, with Tawana Resources, Altura Mining and Pilbara Minerals all set to open new mines in WA during the next six months. Baylis says it will take up to five years for global demand to catch up to supply.

CORPORATES
ROSKILL INFORMATION SERVICES, TAWANA RESOURCES NL – ASX TAW, ALTURA MINING LIMITED – ASX AJM, PILBARA MINERALS LIMITED – ASX PLS, MINERAL RESOURCES LIMITED – ASX MIN, GALAXY RESOURCES LIMITED – ASX GXY, NEOMETALS LIMITED – ASX NMT, GANFENG LITHIUM COMPANY LIMITED, UBS HOLDINGS PTY LTD, CRU, GLENCORE PLC

Cyclone Joyce drenches Pilbara as Port Hedland resumes exports

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

Tropical Cyclone Joyce forced the closure of Port Hedland for about 43 hours, although it is not expected to have much impact on iron ore export volumes. The cyclone resulted in heavy rains near iron ore mines operated by BHP Billiton, Rio Tinto and Fortescue Metals Group in the Pilbara region, with 132 millimetres of rain recorded at Barimunya over four days and 102 millimetres recorded at Solomon Airport. Meanwhile, some 105 millimetres of rain fell at Marble Bar in a 24-hour period.

CORPORATES
PORT OF PORT HEDLAND, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NEWCREST MINING LIMITED – ASX NCM, AUSTRALIA. BUREAU OF METEOROLOGY, DEUTSCHE BANK AG

Rio, BHP output boosts payout hopes

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Original article by Matt Chambers
The Australian – Page: 15 & 17 : 15-Jan-18

Deutsche Bank expects Rio Tinto to report three per cent growth in iron ore output in the Pilbara for the December 2017 quarter, to 87.7 million tonnes, while BHP Billiton’s Pilbara production is forecast to rise by 10 per cent to a record 70.9 million tonnes. Meanwhile, Hayden Bairstow of Macquarie Group expects Rio Tinto to pay a 2017 final dividend of $US1.95 per share, for a full-year payout of $US3.05 per share. Analysts generally also expect BHP to increase its dividend payout for the 2017-18 financial year. Both companies may also boost returns to shareholders via the proceeds of asset sales.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, BLOOMBERG LP, LIBERTY HOUSE GROUP, PACIFIC ALUMINIUM PTY LTD, SAMARCO MINERACAO SA, VALE SA

Iron ore futures rise as cyclone forces closure of Port Hedland

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 12-Jan-18

Iron ore exports from the Pilbara may potentially be disrupted by Tropical Cyclone Joyce. The Bureau of Meteorology has warned that the cyclone could hit the region on 13 January. The towns of Tom Price and Newman are likely to be within its trajectory, although it may miss the Port of Hedland. However, the Pilbara Ports Authority has ordered all vessels to leave the port, which is used by iron ore miners such as Fortescue Metals Group. The price of iron ore for delivery to the Chinese port of Dalian rose on 11 January in response to concerns about the cyclone.

CORPORATES
PORT OF PORT HEDLAND, PILBARA PORTS AUTHORITY, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, BCI MINERALS LIMITED – ASX BCI, MINERAL RESOURCES LIMITED – ASX MIN, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Syrah’s battery hopes hit US hurdle

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 11-Jan-18

Australian-listed Syrah Resources is confident that it will be able to secure a new site for its proposed graphite beneficiation plant in the US. The South Tangipahoa Parish Port Commission has terminated Syrah’s lease over the site in New Orleans where it had proposed to build the plant, after local residents expressed concern about the plant’s potential impact on air and water quality. Syrah will consider other sites in the state of Louisiana, and it remains hopeful of achieving its previously-stated target for commencing production.

CORPORATES
SYRAH RESOURCES LIMITED – ASX SYR, SOUTH TANGIPAHOA PARISH PORT COMMISSION, INCITEC PIVOT LIMITED – ASX IPL, BHP BILLITON LIMITED – ASX BHP, HILL END GOLD LIMITED – ASX HEG

Rio could surprise on ore exports

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 23 : 11-Jan-18

UBS estimates that Rio Tinto’s Pilbara iron ore shipments rose to a record 90.2 million tonnes in the December 2017 quarter, putting it on track to meet its full-year guidance of 330 million tonnes. According to UBS’s forecast, Rio Tinto’s shipments rose by 17 per cent month-on-month in December, to 32.5 million tonnes. Rio Tinto ultimately aims to lift annual shipments to 360 million tonnes, although its Pilbara rail network currently has a capacity of about 330 million tonnes. UBS estimates that the Pilbara shipments of BHP Billiton and Fortescue Metals Group for the quarter totalled 71.3 million tonnes and 40.5 million tonnes respectively.

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