MINING CORPORATIONS – AUSTRALIA

Historic native title ruling: Fortescue up for ‘astronomical’ sum

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Original article by Andrew Burrell
The Australian – Page: 1 & 6 : 21-Jul-17

Fortescue Metals­ Group has advised that a native title ruling is unlikely to affect production at its Solomon iron ore mine in Western Australia’s Pilbara region. The Federal Court has ruled that the Yindjibarndi people are entitled to exclusive native title rights over a large area of land in the state, including the site of the Solomon mine. The Yindjibarndi could potentially be entitled to compensation of around $A100m for royalties from the mine. Fortescue shares closed 3.5 per cent lower at $A5.19 in response to the judgment.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, YINDJIBARNDI ABORIGINAL CORPORATION, FEDERAL COURT OF AUSTRALIA, WIRLU-MURRA YINDJIBARNDI ABORIGINAL CORPORATION, RIO TINTO LIMITED – ASX RIO

BHP slip-up to provide more ammo for Elliott

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Jul-17

BHP Billiton has restated its 2016 financial accounts after conceding that there were problems with the processes it had used to determine the impairment charges on US shale assets. Ross Illingworth, the executive director of Kingfisher Capital Partners, says the admission will strengthen Elliott Management’s case for a restructuring at BHP. Meanwhile, Elliott has likened BHP’s proposal to develop the Jansen potash project in Canada to its ill-fated foray into US shale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KINGFISHER CAPITAL PARNERS, ELLIOTT MANAGEMENT CORPORATION

Ore lift backs BHP ‘surprise’ on dividend

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Original article by Matt Chambers
The Australian – Page: 19 : 20-Jul-17

Citigroup expects BHP Billiton to post an underlying profit of $US6.76bn for 2016-17, compared with $US1.22bn previously. BHP’s activities report for the June 2017 quarter shows that it produced 268 million tonnes of iron ore in Western Australia during 2016-17, while copper output at the Olympic Dam mine in South Australia fell 16 per cent to 166,000 tonnes. Strike action at the Escondida copper mine in Chile resulted in annual output falling to 772,000 tonnes, but output of up to 1.23 million tonnes is expected in 2017-18.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CITIGROUP PTY LTD, MINERA ESCONDIDA LIMITADA, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED

Activist Elliott targets BHP retail shareholders

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Original article by Leo Shanahan
The Australian – Page: 19 : 19-Jul-17

US-based hedged fund Elliott Management is seeking the support of BHP Billiton’s retail investors for its proposed restructuring strategy for the resources giant. Elliott has also launched a revised website pitched at institutional investors. The activist hedge fund has accused BHP’s management of being responsible for the loss of some $US40bn ($A51bn) of shareholder wealth due to poor decisions. Elliott’s proposed reforms include scrapping BHP’s dual listing structure.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIA. DEPT OF THE TREASURY

Rio lowers iron ore production guidance

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Original article by Paul Garvey
The Australian – Page: 19 : 19-Jul-17

Rio Tinto has advised that its iron ore output in the Pilbara is now likely to be about 330 million tonnes in calendar 2017, compared with previous guidance of between 330 million and 340 million tonnes. It has cited factors such as inclement weather and rail maintenance work for the revised production forecast. Rio Tinto’s Pilbara iron ore shipments totalled 154.3 million tonnes in the first half. Meanwhile, Citigroup expects Rio Tinto’s full-year dividend to rise from $US1.70 per share in 2016 to $US2.42 in 2017.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, COAL AND ALLIED INDUSTRIES LIMITED, YANCOAL AUSTRALIA LIMITED – ASX YAL, GOLDMAN SACHS AUSTRALIA PTY LTD

Twiggy changes his tune as Fortescue plans for iron boost

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

Planning documents show that Fortescue Metals Group proposes to commence construction work on its Eliwana iron ore mine in the Pilbara in mid-2019, with production slated to commence in 2020 if the project proceeds. The mine would have a maximum production capacity of 50 million tonnes per year, although Fortescue expects annual output of around 30 million tonnes. Fortescue is also considering the Nyidinghu deposit to replace the Firetail mine, which has annual capacity of around 27 million tonnes.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Coking coal customers not ditching quarterly prices just yet

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 14-Jul-17

Australian-listed Whitehaven Coal expects the quarterly contract pricing system to account for 40 per cent of its semi-soft coking sales in the next three months, and MD Paul Flynn says this could eventually rise to 70-80 per cent. He has downplayed speculation that coal buyers could eventually shift to a spot pricing system, noting that Whitehaven’s customers show no signs of wanting to make such a move at present. Glencore also intends to retain the quarterly contract system.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, GLENCORE PLC, NIPPON STEEL AND SUMITOMO METAL CORPORATION, SHAW AND PARTNERS LIMITED

Chile’s SQM invests in Kidman lithium project

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 13-Jul-17

Kidman Resources has sold a 50 per cent stake in its Earl Grey lithium deposit to Chile-based SQM for $A110m. The deal comprises a cash payment of $A30m, with the balance to be provided in the form of development funding. Rather than merely exporting lithium ore, Kidman and SQM intend to build a processing plant in Australia to convert the ore to lithium hydroxide. John Deniz of Paragon Funds Management says integrated projects are likely to be more resilient if demand for lithium eases.

CORPORATES
KIDMAN RESOURCES LIMITED – ASX KDR, SOCIEDAD QUIMICA Y MINERA SA, PARAGON FUNDS MANAGEMENT, MARINDI METALS LIMITED – ASX MZN, SUPREME COURT OF WESTERN AUSTRALIA, NEOMETALS LIMITED – ASX NMT, MINERAL RESOURCES LIMITED – ASX MIN, TIANQI LITHIUM CORPORATION

Miner may cut iron ore guidance: UBS

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 11-Jul-17

UBS estimates that Rio Tinto’s Western Australian iron ore exports fell by nearly eight per cent month-on-month in June 2017, to 24.8 million tonnes. The firm also estimates that Rio Tinto’s iron ore export volumes for the first half of 2017 totalled 154 million tonnes, which puts it well below the full-year target of 330 to 340 million tonnes. As a result, UBS suggests that Rio Tinto may scale back its full-year guidance when its production results for the second quarter are released in mid-July.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, BLOOMBERG LP, VALE SA

South32 mine closure takes toll on shares

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 11-Jul-17

The price of coking coal could be boosted by the continued shutdown of South32’s Appin mine in New South Wales. South32 shares closed 3.2 per cent lower at $A2.72 on 10 July, as the company signalled that production at the mine will remain on hold for some time, pending a safety review. Work at the mine was suspended in May after South32 detected high levels of gas. South32 has stressed that the safety of workers is its top priority.

CORPORATES
SOUTH32 LIMITED – ASX S32, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED, STANDARD AND POOR’S ASX 200 INDEX, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT