SUPPLY AND DEMAND

Port logjams threaten coal demand: Tata Steel

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Original article by Luke Housego
The Australian Financial Review – Page: 19 : 5-Dec-19

Tata Steel MD T.V. Narendran says India will continue to source the bulk of its coking coal from Australia; however, he warns that India will seek other sources of coking coal if action is not taken to address bottlenecks at Queensland’s coal shipping ports. Narendran notes that India currently imports about 50 million tonnes of coking coal a year, and this will grow significantly amid expectations that the nation’s steel production will double over the next decade.

CORPORATES
TATA STEEL, AUSTRALIA. OFFICE OF THE CHIEF ECONOMIST

Base metals set to rebound in 2020: Ausbil

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Original article by Nick Evans
The Australian – Page: 18 : 11-Nov-19

The price of copper remains below $US6000 per tonne on the London Metals Exchange, having reached a low of $US5,610/tonne in early September. However, Ausbil portfolio managers are upbeat about the outlook for copper and other base metals in 2020; they say indications that the US-China trade war is stabilising should be enough to prompt manufacturers to begin restocking their raw materials inventory.

CORPORATES
AUSBIL INVESTMENT MANAGEMENT LIMITED, LONDON METAL EXCHANGE LIMITED

First-home buyers surge back for a foothold as market rises

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Original article by Nila Sweeney, Larry Schlesinger
The Australian Financial Review – Page: 29 : 7-Nov-19

Real estate developers note that their recent land releases in new housing estates have attracted strong demand among people who are buying their first home. Nigel Edgar of Frasers Property says first-home buyers now account for 35-45 per cent of its sales, compared with just 15 per cent when the residential market was at its peak in 2017. Likewise, Luke Fryer of Metricon says sales to first-home buyers increased by 25 per cent in the three months to September. Off-the-plan apartments are also attracting interest among first-home buyers.

CORPORATES
FRASERS PROPERTY AUSTRALIA PTY LTD, METRICON HOMES, HIGHLAND PROPERTY GROUP, VIRGATE, WOLFDENE, BIS OXFORD ECONOMICS PTY LTD, JINDING DEVELOPMENTS

No market for new uranium mines: Cameco

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Original article by Nick Evans
The Australian – Page: 20 : 6-Nov-19

Canada-based Cameco will produce just nine million pounds of uranium in 2020; instead, the bulk of the uranium it supplies to customers will be sourced from the spot market. CEO Tim Gitzel says there is no economic case at present for the construction of new uranium mines, given the large amount of uranium that has been stockpiled. The spot price of uranium averaged $US25.68 a pound in the September quarter, which is well below the long-term price that is required for Cameco’s mines in Australia to be viable.

CORPORATES
CAMECO CORPORATION, BHP GROUP LIMITED – ASX BHP, ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, PALADIN ENERGY LIMITED – ASX PDN, DEEP YELLOW LIMITED – ASX DYL

BHP’s Colombian coal to take on Australian miners in Asia

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Original article by Peter Ker
The Australian Financial Review – Page: 24 : 31-Oct-19

The Cerrejon thermal coal mine in Colombia will shift its export focus to Asia in response to declining demand for coal in Europe. Cerrejon president Guillermo Fonseca expects the transition to clean fuels and renewable energy will take some time, and the region will still be using coal in 2050. The Cerrejon mine is jointly owned by BHP, Glencore and Anglo America, and BHP is believed to be keen to exit both Cerrejon and the Mt Arthur mine in New South Wales.

CORPORATES
BHP GROUP LIMITED – ASX BHP, GLENCORE PLC, ANGLO AMERICAN PLC

Treasury $1bn debt sale comes up short

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Original article by David Rogers
The Australian – Page: 26 : 25-Oct-19

The Australian Office of Financial Management’s CEO Robert Nicholl has downplayed the fact that investors did not fully support a new issuance of Treasury notes. The AOFM attracted bids totalling $936m for a $1bn issuance of Treasury Notes that will mature on 24 January 2020. Nicholl notes that demand for short-term debt instruments such as Treasury Notes can vary significantly, adding that the shortfall will not be a concern for the federal government unless it becomes a regular occurrence.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Joint strategy with US on rare earths

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Original article by Geoff Chambers
The Australian – Page: 7 : 11-Oct-19

Resources Minister Matt Canavan has indicated that a joint strategy with the US regarding critical minerals such as rare earths will be finalised in coming weeks. He has stressed the need for co-operation between governments to ensure that new rare earths projects go ahead. US Commerce Secretary Wilbur Ross, who is visiting Australia, has emphasised the importance of processing rather than merely mining rare earths. Trade Minister Simon Birmingham says the federal government wants processing of critical minerals to be undertaken in Australia.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, UNITED STATES. DEPT OF COMMERCE, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LYNAS CORPORATION LIMITED – ASX LYC

Canavan seeks US funds to help develop rare earths resources

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Original article by John Kehoe
The Australian Financial Review – Page: 4 : 10-Oct-19

Resources Minister Matt Canavan has held talks with US Secretary of Commerce Wilbur Ross regarding co-operation in the development of critical minerals projects, including rare earths. Amongst other things, the federal government is looking at options such as providing funding for early-stage projects via Export Finance Australia and the Northern Australia Infrastructure Facility. China is the world’s major producer of rare earths, accounting for about 80 per cent of global supply.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, UNITED STATES. DEPT OF COMMERCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, LYNAS CORPORATION LIMITED – ASX LYC, ARAFURA RESOURCES LIMITED – ASX ARU, UNIVERSITY OF SYDNEY. UNITED STATES STUDIES CENTRE

Push to break China metals dominance

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 3-Sep-19

A new report from the Department of Industry notes that Australia is one of the six leading sources of so-called critical minerals, such as rare-earth elements, cobalt, niobium, antimony, magnesium and tungsten. Cobalt and niobium are the only two minerals identified by the Department for which China is the major supplier and processor. Resources Minister Matt Canavan has highlighted the growth opportunities for Australia in terms of global supply of critical minerals. However, commodity prices and production costs will be the key issues for Australian miners.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, LYNAS CORPORATION LIMITED – ASX LYC

Federal debt boss: why borrowing isn’t easy

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Original article by Adam Creighton
The Australian – Page: 4 : 26-Aug-19

Australian Office of Financial Management CEO Rob Nicholl has rejected suggestions that the federal government’s capacity to increase its borrowings has been boosted by the downturn in bond yields. The yield on 10-year government bonds fell below the cash rate of one per cent earlier in August, and Nicholls argues that demand for government debt has not risen despite a global downturn in bond yields. The federal government is resisting pressure to ramp up its infrastructure spending instead of prioritising a return to a Budget surplus.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT