STRATEGIC PLANNING – AUSTRALIA

Rio’s flexible approach in production revamp

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 19-Jun-18

Rio Tinto has advised that its iron ore production and rail capacity is expected to rise to 360 million tonnes by the end of 2019, in line with its port capacity. The resources group has previously forecast that iron ore production for 2018 will be within the range of 330 million to 340 million tonnes. Rio Tinto has also signalled that it will adopt a "value over volume" strategy for its Pilbara operations, which will allow it to adjust production of different iron ore products in response to demand from buyers or changes in the price of the steel input.

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

Stand-alone Coles to turn up dial on capex

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 8-Jun-18

Coles has indicated plans to boost capital expenditure after it is demerged from Wesfarmers, in part because the food and liquor retailer needs to refurbish stores. Coles may need to raise capital in order to finance its expenditure plans, depending on the amount of debt that Wesfarmers decides to leave it with. Coles MD John Durkan says he anticipates that the total Australian grocery market will grow by around three per cent a year.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, METCASH LIMITED – ASX MTS, WAVESTONE CAPITAL PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, AMAZON.COM INCORPORATED, BUNNINGS GROUP LIMITED

Rio revs up driverless truck plan

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Original article by Matt Chambers, Cliona O’Dowd
The Australian – Page: 19 & 22 : 8-Jun-18

Rio Tinto employs about 12,000 people at its iron ore operations in the Pilbara, and its automation program is not expected to have any net effect on job numbers. An internal briefing from late 2016 flagged the loss of about 850 jobs over four years as a result of initiatives such as its AutoHaul project. However, Rio Tinto has advised that the figures have since been revised to take into account the retraining and redeployment of existing staff and the need to hire additional employees for new mining projects.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, THE MELBOURNE MINING CLUB, ALPHABETA, NATIONAL ENERGY RESOURCES AUSTRALIA, METS IGNITED

Lithium processing in WA grows to five plants

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Original article by Brad Thompson
The Australian Financial Review – Page: 24 : 7-Jun-18

Neometals proposes to build a lithium hydroxide plant near Kalgoorlie, with an annual processing capacity of 10,000 tonnes. Should the project proceed, it will increase the potential lithium processing capacity in Western Australia to around 200,000 tonnes a year, given that four other plants have either been proposed or are under construction in the state. Neometals plans to source spodumene for the plant from the Mount Marion lithium mine. A final investment decision is expected in mid-2019.

CORPORATES
NEOMETALS LIMITED – ASX NMT, KIDMAN RESOURCES LIMITED – ASX KDR, SOCIEDAD QUIMICA Y MINERA SA, MINERAL RESOURCES LIMITED – ASX MIN, TIANQI LITHIUM CORPORATION, ALBERMARLE CORPORATION, MORGAN STANLEY AND COMPANY INCORPORATED, GLOBAL ADVANCED METALS PTY LTD, RESOURCE CAPITAL FUNDS, SUPREME COURT OF WESTERN AUSTRALIA, CITY OF KALGOORLIE-BOULDER

Fortescue keeps focus on low costs as it approves new mine

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Original article by Matt Chambers
The Australian – Page: 28 : 29-May-18

Fortescue Metals Group will be able to supply higher-grade iron ore after its board approved the development of the Eliwana mine in the Pilbara. The $A1.7bn project, which also includes a rail component and a processing plant, will enable Fortescue to produce ore with 60 per cent iron content, compared with an average of 58 per cent at present. Eliwana will replace the Firetail mine, which is approaching the end of its mine life. Production at Eliwana is slated to commence in 2020, with annual output of about 30 million tonnes.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, RBC CAPITAL MARKETS

Optus to hang up on Virgin Mobile

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Original article by Supratim Adhikari
The Australian – Page: 19 : 24-May-18

Optus has confirmed that it will discontinue the Virgin Mobile brand in Australia, as part of its strategy to reduce costs. The decision to scrap the brand will result in the closure of about 36 stores and the loss of 200 jobs. Meanwhile, the Federal Court has ordered Optus to pay a $A1.5m fine after it falsely advised broadband customers that they had just 30 days rather than up to 18 months to switch to the NBN when it became available in their area.

CORPORATES
SINGTEL OPTUS PTY LTD, VIRGIN MOBILE (AUSTRALIA) PTY LTD, VIRGIN MOBILE HOLDINGS (UK) PLC, FEDERAL COURT OF AUSTRALIA, NBN CO LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AMAYSIM AUSTRALIA LIMITED – ASX AYS, THE KANTAR GROUP, TELSTRA CORPORATION LIMITED – ASX TLS

Optus moves to secure Champions League

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Original article by Max Mason
The Australian Financial Review – Page: 34 : 21-May-18

Optus is keen to acquire the Australian broadcasting rights to more overseas soccer competitions, after recently renewing its English Premier League deal. Optus CEO Allen Lew says Optus aims to be the local broadcaster of elite football, and he has signalled its interest in gaining the local rights to UEFA’s Champions League. Optus and Telstra are increasing their focus on content as a means of attracting and retaining customers, amid growing competition in the mobile telephone market.

CORPORATES
SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, UNION EUROPEENNE DE FOOTBALL ASSOCIATION, FEDERATION INTERNATIONALE DE FOOTBALL ASSOCIATION, WORLD CUP, BEIN SPORTS AUSTRALIA, SPECIAL BROADCASTING SERVICE (SBS), TELSTRA CORPORATION LIMITED – ASX TLS, TPG TELECOM LIMITED – ASX TPM, FOXTEL MANAGEMENT PTY LTD, SINGAPORE TELECOMMUNICATIONS LIMITED

Break-up an option for HT&E

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Original article by Max Mason
The Australian Financial Review – Page: 16 : 8-May-18

Broadcast media and outdoor advertising group HT&E has appointed CLSA and Credit Suisse to review its business as part of its strategy to increase shareholder value. Chairman Peter Cosgrove has told the company’s AGM that its board will consider all options, including selling some assets or the entire company. HT&E recently rejected an approach from rival oOh!media to acquire its Adshel business. HT&E shares closed 0.9 per cent higher at $A2.28 on 7 May.

CORPORATES
HT&E LIMITED – ASX HT1, CLSA AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, ADSHEL PTY LTD, OOH!MEDIA LIMITED – ASX OML, APN OUTDOOR GROUP LIMITED – ASX APO, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN RADIO NETWORK PTY LTD, KIIS 101.1, KIIS1065, MEDIACAP, CITY OF BRISBANE, YARRA TRAMS, JC DECAUX AUSTRALIA PTY LTD

Sandfire builds war chest for next big find

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Original article by Vesna Poljak
The Australian Financial Review – Page: 27 : 4-May-18

Sandfire Resources CEO Karl Simich is hopeful of more discoveries in the DeGrussa and Monty region, and he plans to boost exploration activity on the back of improved cash flow. Sandfire owns the DuGrassa copper and gold mine, which is currently slated to operate until 2022. Sandfire recently spent $A2 million to acquire a 7.7 per cent in Adriatic Metals, and Simich said he is looking forward to more exploration results from Adriatic’s zinc project, which is in Bosnia and Herzegovina.

CORPORATES
SANDFIRE RESOURCES NL – ASX SFR, ADRIATIC METALS PLC – ASX ADT, SIRIUS MINERALS PLC, INDEPENDENCE GROUP NL – ASX IGO

Rio links coal exit to policy on climate

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 3-May-18

Rio Tinto chairman Simon Thompson has conceded that the potential impact of climate change policy on the future value of coal assets contributed to its decision to divest its thermal coal assets in New South Wales. Rio Tinto sold the Hunter Valley coal assets for $US2.69bn ($A3.58bn) in 2017. Thompson also noted at the AGM that Rio Tinto is in the process of exiting fossil fuels completely, and he highlighted the company’s progress in reducing its greenhouse gas emissions.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, LGSS PTY LTD, CHURCH OF ENGLAND, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, GREAT BRITAIN. SERIOUS FRAUD OFFICE