MINING CORPORATIONS – AUSTRALIA

Abuse ruling faces challenge from South32

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 3 : 9-Nov-17

South32 will appeal against the Fair Work Commission’s ruling that the sacking of a Construction, Forestry, Mining & Energy Union official constituted unfair dismissal. South32 was ordered to reinstate Matthew Gosek after the FWC found that the offensive language which prompted Gosek’s dismissal is widely used in society. However, Macquarie Group director Patricia Cross has described the ruling as "shameful". The issue of offensive language in the workplace has also come under scrutiny in the case against Westpac over the alleged manipulation of the bank bill swap rate.

CORPORATES
SOUTH32 LIMITED – ASX S32, AUSTRALIA. FAIR WORK COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC, HERBERT SMITH FREEHILLS PTY LTD, DIVERSITY COUNCIL AUSTRALIA LIMITED

Fortescue looks to new horizons

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Original article by Glenda Korporaal
The Australian – Page: 20 : 9-Nov-17

More than 90 per cent of Fortescue Metals Group’s iron ore is exported to China. However, outgoing CEO Nev Power has flagged plans to lift the volume of exports to other nations in response to Chinese steel mills’ growing demand for higher-grade iron ore. Fortescue already ships some iron ore to the UK and Germany, and Power says it aims to build on this, as well as seeking other export markets in Asia. Power has also advised that Fortescue will undertake a feasibility study on its Eliwana deposit at the Western Hub in the Pilbara.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RESERVE BANK OF AUSTRALIA, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY

Doubts raised on mine job numbers

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Original article by Andrew Burrell
The Australian – Page: 9 : 8-Nov-17

Data from the 2016 Census shows that just 907 of the 8,000 Aboriginals who live in the Pilbara region currently work in the iron ore industry. In contrast, Rio Tinto, BHP Billiton and Fortescue Metals Group claim that they employ about 1,850 Aboriginal people in the Pilbara. Perth-based lawyer Franklin Gaffney says the census figures give credence to claims that Aboriginal employment numbers in the mining sector are being inflated. He has proposed independent monitoring of native title agreements to ensure that companies are meeting their targets for employing indigenous people.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, LAVAN LEGAL, AUSTRALIAN BUREAU OF STATISTICS

A Pilbara gold rush guide

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Original article by Tim Boreham
The Australian – Page: Online : 7-Nov-17

Upwards of 20 ASX-listed companies are looking for gold in the Pilbara region of Western Australia. They are being buoyed by comparisons being made between the discoveries made to date there and the Witwatersrand formation in South Africa; the latter region has produced half the world’s gold to date. Some of the more prominent companies involved in the "Pilbara gold rush" include Artermis Resources, De Grey Mining and Calidus Resources. The last named company’s activities in the region include the exploration of two leases held by Haoma Mining, with an option to acquire them.

CORPORATES
ASX LIMITED – ASX ASX,ARTEMIS RESOURCES LIMITED – ASX AYL,DE GREY MINING LIMITED – ASX DEG,CALIDUS RESOURCES LIMITED – ASX CAI,HAOMA MINING NL – ASX HAO,ROY MORGAN RESEARCH LIMITED,NOVO RESOURCES,KIRKLAND,KALAMAZOO RESOURCES LIMITED – ASX KZR,KAIROS MINERALS LIMITED – ASX KAI,CHALICE GOLD MINES LIMITED – ASX CHN,DGO GOLD LIMITED – ASX DGO,MARINDI METALS LIMITED – ASX MZN,SOUTHERN HEMISPHERE MINING LIMITED – ASX SUH,SPROTT GLOBAL RESOURCE INVESTMENTS LIMITED,IMPACT MINERALS LIMITED – ASX IPT

Coalmine is not a convent when talking abuse

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 3 : 7-Nov-17

The Fair Work Commission has upheld an unfair dismissal claim against mining company South32. The company had dismissed Construction, Forestry, Mining and Energy Union delegate Matthew Gosek as a result of his use of abusive language and physical threats against eight co-workers. In upholding Gosek’s challenge against his dismissal, FWC Commissioner Bernie Riordan noted Gosek had been affected by a combination of alcohol and anti-depressants at the time, and that bad language was commonplace in the workplace. Industrial relations lawyer Stuart Wood says the FWC’s decision could be seen as condoning union bullying.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION,SOUTH32 LIMITED – ASX S32,ILLAWARRA COAL PTY LTD,GLENCORE AUSTRALIA PTY LTD,CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

Fortescue urged to reduce exports, raise iron grades

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Original article by Peter Ker
The Australian Financial Review – Page: 27 : 4-Nov-17

Andrew Hines has urged Fortescue Metals to lift its iron ore grades, even if that means reducing the level of its exports. Hines, an analyst with Evans & Partners, says doing this would help the level of pricing discounts applied to its product. He notes its recent strategy of lowering the grade of its product has reduced its production costs, but at the expense of the price it gets for its shipments. Hines says a "perfect storm of factors", including higher energy and transport costs, could see Fortescue posting a loss in fiscal 2019, compared to the $US2.1 billion ($A2.7 billion) net profit it announced in August.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Fortescue faces 70pc value hit from iron ore discount

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Original article by Paul Garvey
The Australian – Page: 30 : 3-Nov-17

Fortescue Metals Group’s lower-grade iron ore is trading at a discount of about 30 per cent to the benchmark price. Sam Webb of Credit Suisse estimates that Fortescue’s net present value could fall to $A1.40 per share if the this discount persists. Webb adds that Fortescue’s future capital expenditure and exploration plans may be affected if the price discount is sustained until mid-2018. Credit Suisse has a share price target of $A6.10 on Fortescue. The stock rose 4.06 per cent to $A4.87 on 2 November.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CREDIT SUISSE (AUSTRALIA) LIMITED

Iron ore discount now ingrained, says Ellison

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Original article by Tess Ingram
The Australian Financial Review – Page: 23 : 2-Nov-17

Mineral Resources MD Chris Ellison expects lower-grade iron ore to continue to trade at a discount to the benchmark price for some time. He adds that the discount may widen further in the first few months of 2018. Fortescue Metals Group recently forecast that the discount will eventually narrow to its historic average of around 10 per cent. Meanwhile, Ellison says current iron ore pricing will have no impact on Mineral Resources’ proposed Bungalbin East and Jackson 5 mines.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG, CLEVELAND-CLIFFS INCORPORATED

BHP enters NBN debate as data demand soars

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 2-Nov-17

BHP Billiton is embracing technology such as automation and telematics, which in turn is increasing the amount of data and bandwidth it uses, says chief technology officer Diane Jurgens. She adds that BHP uses both its own data networks and the national broadband network. Jurgens advocates using fibre-to-the-premises for the NBN, arguing that doing so is an investment for the long-term, as demand for bandwidth is set to increase exponentially. Meanwhile, BHP plans to deploy driverless trains on its Pilbara iron ore rail network, a process that Jurgens says will take at least 12 months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Iron ore market doesn’t warrant extra supply: Fortescue

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 18 : 1-Nov-17

Rio Tinto CEO Jean-Sebastien Jacques recently told staff via an internal communication that its Pilbara iron ore shipments could eventually top 400 million tonnes a year, compared with its 2017 target of 330 million tonnes. However, Fortescue Metals Group CEO Nev Power questions whether there is sufficient demand for iron ore at present to justify a large increase in supply, noting that shareholder returns will be adversely affected if resources projects are over-developed. Meanwhile, Power expects the price discount for Fortescue’s lower-grade iron ore to narrow over time.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ARRIUM LIMITED – ASX ARI, LIBERTY HOUSE GROUP, CLEVELAND-CLIFFS INCORPORATED, METALICITY LIMTED – ASX MCT