Australia/New Caledonia/Papua New Guinea Mining – Page 88

Iron ore rises but outlook clouded, says McKinsey – by Jasmine Ng (Sydney Morning Herald – April 12, 2016)

April 12, 2016

http://www.smh.com.au/

Iron ore will probably snap back to $US45 a tonne as a nascent real-estate rebound in China won’t bolster construction demand in the world’s biggest user and supplies remain plentiful, according to McKinsey & Co.

The commodity will trade between $US45 and $US50 a ton this year, eroding a first-quarter rally to as high as $US63.74 that was spurred by speculation demand growth will rise, Oliver Ramsbottom, a Tokyo-based partner, said in an interview. There’s no real improvement in Chinese steel consumption, said Ramsbottom, who’s covered commodities for almost two decades.

Iron ore’s 23 per cent surge this quarter has surprised many forecasters who’d expected a fourth year of losses driven by sinking steel demand in China and rising low-cost supply. The rebound hasn’t swayed many sceptics, with banks including Goldman Sachs Group reiterating bearish forecasts.

Australia’s Rio Tinto to take longer to pay as resource slump bites – by Peter Gosnell (Reuters U.S. – April 9, 2016)

April 11, 2016

http://www.reuters.com/

SYDNEY – Rio Tinto , one of the world’s biggest miners, has doubled its payment terms in a move that will force embattled suppliers to wait up to 90 days to be paid.

A spokesman for the mining giant confirmed the change on Saturday, saying it would sustain jobs and supplier relationships. Previously, the payment term was 45 days.

“We announced at the Rio Tinto results presentation in February that we would be embarking on a further round of measures to free up cash and reduce working capital,” said the spokesman, Bruce Tobin. “This initiative is designed to preserve and maintain jobs and suppliers in a tough global environment for commodities.”

Australia-India consortium wants to restart historic gold mine – by James Regan (Reuters U.S. – April 11, 2016)

April 11, 2016

http://www.reuters.com/

SYDNEY – An Australian-Indian consortium wants to restart gold mining in a district that helped symbolize former British rule in India and produced some 25 million ounces over 150 years before being abandoned due to low bullion prices.

Mining in the Kolar gold field in Karnataka state in Southern India ended in 2001 as gold prices slumped. But a government tender could lead to mining leases held by Bharat Gold Mines Ltd sold to the highest bidder and operations resume.

A restart would come amid resurgent gold prices and steps by India to monetize some of the estimated 20,000 tonnes of gold held by its citizens and slow imports to free up capital to strengthen its economy.

[Western Australia Premier] Colin Barnett: Mining still the biggest game in boomtown – by Andrew Burrell (The Australian – April 9, 2016)

April 8, 2016

http://www.theaustralian.com.au/

Colin Barnett has labelled fellow premiers “pathetic” and claims the rest of the nation has never understood Western Australia’s economy and its $90 billion-plus resources industry.

The fired-up, slimmed-down Liberal Premier — the nation’s longest-serving current political leader, who is gearing up to fight for a third term — said people in political and financial circles on the east coast seemed to think the mining and petroleum sector in his state was going backwards.

“One of the errors being made nationally is when people say the mining boom is over, like it’s finished — well, look at the skyline and the names up there,” he said, pointing to company logos such as BHP Billiton and Rio Tinto on Perth’s skyscrapers.

“It’s a $90bn-plus industry and it’s still the biggest game in town. Mining will continue to grow, and it will be Australia’s biggest export industry for as long as we can see.

Commodity Rebound Forecast by Australia as Exports Resume Gains – by David Stringer (Bloomberg News – April 8, 2016)

April 8, 2016

http://www.bloomberg.com/

The global commodity rout looks set to hit a bottom with Australia, a key bellwether for the resources industry, forecasting the value of its commodities exports will resume rising from the second half of 2016.

Export earnings will rise by almost a third to A$208 billion ($157 billion) by fiscal 2021, the government’s Department of Industry, Innovation and Science estimated Friday in a quarterly report, after tumbling to a third straight annual decline in the current fiscal year.

The worst of the commodity price collapse is probably already over for materials including metallurgical coal, aluminum, zinc, lead and gold, Credit Suisse Group AG analysts led by Matthew Hope wrote in note dated Friday. The outlook for steel demand in China is also improving on the prospects for additional government infrastructure spending, the analysts wrote.

Eric Sprott bets millions on a gold producer and 10 out of 10 analysts agree it’s a buy – by Brenda Bouw (Globe and Mail – April 6, 2016)

April 6, 2016

http://www.theglobeandmail.com/

Gold bug Eric Sprott’s increased stake in Newmarket Gold Inc. has renewed interest in the junior producer, which operates three mines in Australia. Investors are now looking for the Vancouver-based miner to fulfill its promise to boost production while controlling expenses and not overpaying for acquisitions, as the price of gold sits stubbornly at about $1,200 (U.S.) an ounce.

Shares of Newmarket, which merged with Crocodile Gold Corp. in July, have risen by about 13 per cent since the company said on Monday that Mr. Sprott bought 10 million shares to boost his ownership stake to 8.7 per cent. He purchased the stock from Luxor Capital Partners LP, which is still Newmarket’s largest shareholder, now with a 28.7-per-cent stake.

All 10 analysts who cover Newmarket have a “buy” recommendation. The analyst consensus price target over the next year is $3.03 (Canadian), which is about 23 per cent above its current price of $2.46. The stock is up about 82 per cent so far this year.

France considering capital increase for Eramet – newsletter (Reuters U.S. – April 4, 2016)

April 4, 2016

http://www.reuters.com/

The French government is looking at a comprehensive solution to revive Eramet which could include a capital increase of the ailing mining group, newsletter Lettre de l’Expansion said on Monday.

The company posted a full-year loss of 714 million euros ($812 million) in February, mainly hit by a downturn at its nickel division that has been battered by 12-year price lows linked to global oversupply and slowing Chinese demand.

Discussions took place last week between the French Investment Agency (APE), part of the economy ministry, and the Duval family, the largest shareholder of Eramet, La Lettre de l’Expansion said.

As China turns to consumers, Australia confronts end of iron age – by Michael Heath (Sydney Morning Herald – April 1, 2016)

April 1, 2016

http://www.smh.com.au/

Just as China’s industrialisation helped reshape our economy, the Asian giant’s move toward consumer-led growth is challenging it anew.

Chinese demand for food and energy will only partly offset slowing growth in iron ore exports that funnelled cash here for more than a decade, according to the RBA. That means the economy must find new growth drivers at a time when cooling housing market and a resurgent currency compound difficulties posed by the slowdown in the nation’s biggest trading partner.

RBA Governor Glenn Stevens acknowledged last week it’s impossible to know how China’s transition will unfold, given nothing on the scale has been tried before. His comments signalled the risks ahead for Australia, the economy most dependent on China in the developed world. Minutes from the RBA’s March 1 board meeting — where interest rates were kept at a record low 2 per cent — showed a bigger chunk of policy makers’ time was spent discussing China.

Nickel miners to raise extra cash – by Stuart McKinnon (The West Australian – March 31, 2016)

March 31, 2016

https://au.news.yahoo.com/

Nickel miners Western Areas and Panoramic Resources have announced capital raisings this morning in a bid to bolster their balance books as the price of the commodity continues to languish.

Western Areas flagged a $70 million raising, comprising a $60 million placement at a discounted $1.95 a share and a share purchase plan for retail shareholders to raise $10 million. Under the share purchase plan, shareholders will be able to subscribe for up to $15,000 worth of new shares also priced at $1.95.

Western Areas said the raising would strengthen its balance sheet and provide greater financial flexibility to fund growth initiatives.

Short sellers have increased bets against big diversified miners recently – by Peter Ker and Thomas Hounslow (Sydney Morning Herald – March 31, 2016)

March 31, 2016

http://www.smh.com.au/

It has been a good few months for the world’s major miners, but not everyone believes the recent commodities rally will last.

The surprise surge in prices for iron ore, copper, manganese and oil since January 21 has boosted mining stocks, but also attracted the type of investors who like to bet that shares will go down.

Short positions in Rio Tinto, BHP Billiton, Glencore and Anglo American surged to their highest levels in several years during the first quarter of 2016, suggesting that a growing number of investors believe the improved commodity prices cannot be sustained.

Take Rio for example; the percentage of Rio’s Australian shares sold short in mid February was the highest since Christmas Eve 2012.

COLUMN-Yellen caution spells trouble for Australian miners – by Clyde Russell (Reuters U.S. – March 2, 2016)

March 30, 2016

http://www.reuters.com/

Janet Yellen has emerged as another problem for commodity producers, particularly those in Australia, as her caution over interest rates has effectively weakened the U.S. dollar.

The Federal Reserve chair said on Tuesday that the U.S. central bank should “proceed cautiously in adjusting policy” given the risks to the economic outlook.

This signals that U.S. interest rates may not rise as quickly as many in financial markets had expected, resulting in the U.S dollar losing ground. The Australian dollar gained almost 2 percent from its low on Tuesday to its high so far on Wednesday of 76.48 U.S. cents, and it is up 5.3 percent so far this year.

Roy Hill’s first shipment to China arrives next week – by Glenda Korporaal (The Australian – March 31, 2016)

March 30, 2016

http://www.theaustralian.com.au/

The first shipment of iron ore from Gina Rinehart’s $10 billion Roy Hill mine arrives in China next week, another milestone in a project that began more than 20 years ago.

The shipment from the Roy Hill mine in Western Australia is being delivered to the port of Caofeidian, 200km southeast of Beijing, under a long-term contact with one of China’s largest steelmakers, Shougang International, signed four years ago.

“It’s a pretty exciting time for us,” Roy Hill’s chief financial officer, Garry Korte, told The Australian. “We had our first shipment of ore in December. It went to Posco in South Korea where it is already being used to make steel. “Now we are approaching our next milestone which is the first shipment to arrive in China.

[Australian] Indigenous elder who took on miner and won left with $70,000 in legal costs – by Joshua Robertso (The Guardian – March 29, 2016)

March 30, 2016

http://www.theguardian.com/

An Indigenous elder who successfully took on the mining entrepreneur “Diamond” Joe Gutnick in the Queensland land court has wound up with a $70,000 legal debt he cannot repay.

In a case that could have a chilling effect on future challenges to mines by traditional owners and others, the Kalkadoon elder James Taylor was denied legal costs despite winning a three-year battle for changes to Gutnick’s phosphate project near Mount Isa.

The case turned on the same legal precedent that thwarted an attempt by the mining giant Adani to make conservationists pay an estimated $1m in what was widely considered a landmark costs ruling in favour of mining objectors.

Andrew Forrest: Iron ore glut ‘vandalism’ over – by Glenda Korporaal (The Australian – March 23, 2016)

March 23, 2016

http://www.theaustralian.com.au/

Fortescue Metals Group chairman Andrew Forrest has declared that the “overproduction” of iron ore by majors BHP Billiton and Rio Tinto is ending but not without damage to the industry.

His comments come as the price of iron ore holds above $US58 a tonne, more than double its recent low. “I am not a bull on the iron ore price,” Mr Forrest told The Australian. “The vandalism of the oversupply strategies which I called out a year ago is being vindicated.”

In a wide-ranging interview on China’s Hainan Island before the opening of the Boao Forum, Mr Forrest hinted that last week’s announcement about the retirement of Rio chief executive Sam Walsh may have been because of a shift in strategy by the Rio board away from maximising production.

Axiom Mining’s nickel license revoked by Solomon Islands’ court (Reuters U.S. – March 22, 2016)

March 22, 2016

http://www.reuters.com/

TOKYO – The development of a large nickel deposit in the Solomon Islands is back to square one this week, as the nation’s highest court ruled that neither of the two firms in Japan and Australia fighting over the discovery were entitled to the license.

The Solomon Islands Court of Appeal on Monday rejected a portion of Sumitomo Metal Mining’s appeal that the country’s government should not have cancelled in 2011 Sumitomo’s license to develop the Isabel nickel laterite discovery.

In the same ruling, the Court of Appeal accepted another portion of the appeal by revoking Axiom Mining’s current license for the Isabel site.