Eurobench.com

voda 18 april 2013 17:09

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Rio Tinto Q1 2013 operations review

Mr Sam Walsh CEO of Rio Tinto said that our operations achieved a solid performance in the Q1 recovering rapidly from the seasonal weather disruptions. At Bingham Canyon last week's pit wall slide will have a significant impact on our copper production this year. A recovery plan is being implemented to minimize the economic impact. Our two major growth projects in the Pilbara and in Mongolia achieved significant milestones in the Q1. Both of these industry leading projects remain on track for first production this year and are poised to deliver attractive returns for our shareholders in the years ahead.

He said that "My streamlined Executive Committee structure is now in place and demanding targets for 2013, including for cash cost savings are locked into our performance measures. We are making good progress in achieving our cost reduction targets and other priorities for 2013, and are determined in our pursuit of greater value for shareholders."

Highlights;
1. Record Q1 iron ore production, shipment and rail volumes reflected the recent re rating of Pilbara capacity through debottlenecking and productivity improvements with minimal capital expenditure. The Pilbara iron ore operations swiftly recovered from the cyclone season and are now running at full capacity of 237 million tonnes per year.

2. Expansion of Pilbara capacity to 290 million tonnes per year remains on budget and on time to achieve the accelerated completion date in the Q3 of this year. The project reached a major milestone in the Q1 with the installation of the new shiploader with a nominal 55 million tonne annual capacity on the new wharf at Cape Lambert.

3. Mined copper benefited from a sustained recovery in grades at Kennecott Utah Copper and Escondida since the Q1 of 2012. On 10 April 2013, the Kennecott Utah Copper mine experienced a slide along a geotechnical fault line of its north eastern wall. Waste movement associated with the Cornerstone extension has restarted but ore production remains suspended and timing to restart ore production remains under evaluation. The concentrator has been shut down while the smelter and refinery are currently operating at reduced levels. Based on an early assessment of information currently available, it is estimated that 2013 refined copper production at Kennecott Utah Copper will be approximately 100,000 tonnes less than previously anticipated.

4. Commissioning of the Oyu Tolgoi copper and gold mine continued with first concentrate produced in January 2013. Commencement of commercial production remains on track by the end of June 2013, subject to the resolution of the issues being discussed with the Mongolian government.

5. Year to date cash cost savings are tracking on target as the impact of headcount reductions and productivity gains are gathering pace.

Source - Strategic Research Institute

voda 18 april 2013 17:09

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Rio Tinto copper force majeure at Utah copper mine

Reuters reported that Rio Tinto's Kennecott Utah Copper is invoking force majeure with respect to contracts with copper cathode and sulphuric acid customers after last week's huge landslide at its Bingham Canyon copper mine.

Spokesman Kyle Bennett said that Kennecott is in the early stages of assessing plans to restart ore production. Force majeure is a clause included in contracts that removes liability for natural and unavoidable events that prevent companies from fulfilling their obligations.

Mr Bennett said that because of the slide and immediate impacts, Kennecott is invoking force majeure in accordance with terms in the agreements with companies that we supply copper cathodes and sulphuric acid.

Source - Reuters

voda 18 april 2013 17:10

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BHPB announces new senior management

Following the appointment of Mr Andrew Mackenzie as the new CEO of BHP earlier this year, the miner has carried out a major shakeup in its senior management team, which will take effect from 10th May 2013.

The Group Management Committee (GMC) will comprise:
Chief Executive Officer, Andrew Mackenzie
President, Copper, Peter Beaven
President, Petroleum and Potash, Tim Cutt (from 2 July 2013)
President, Coal, Dean Dalla Valle
Chief Legal Counsel, Geoff Healy (from 3 June 2013)
President, HSEC, Marketing and Technology, Mike Henry
Chief Financial Officer, Graham Kerr
President, Aluminium, Manganese and Nickel, Daniel Malchuk
President, Governance and Group Company Secretary, Jane McAloon
President, Iron Ore, Jimmy Wilson
President, People and Public Affairs, Karen Wood

Mr Mike Yeager will retire from the GMC and the Company on 1 July 2013.

Tim Cutt will join the GMC as President, Petroleum and Potash on 2 July 2013. He will retain responsibility for the Potash development option.

Source - Strategic Research Institute

voda 18 april 2013 17:11

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Rio Tinto updates on iron ore production

Global iron ore production of 61 million tonnes (Rio Tinto share 48 million tonnes) set a new record for a first quarter. The attributable total was 6% higher than in the same period of 2012.

Pilbara operations;
The quarter was impacted by three tropical cyclones which forced shiploading to be suspended or slowed for several days on each occasion. Despite this temporary closure of the ports for shipping, the mine sites, and rail haulage from mine to port, continued to operate at close to capacity throughout the period.

Pilbara marketing;
First quarter sales of 55 million tonnes (100% basis) were 7% higher than the same period of 2012, setting a new Q1 record. Sales in Q1 2013 were lower than production due to interruptions in shipping caused by tropical cyclones in the Pilbara.

Pilbara expansion;
The expansions of the Pilbara infrastructure to 290 MT per annum by Q3 of 2013 and 360 MT per annum by the H1 of 2015 remain on track with the following progress during the quarter:
1. A new shiploader at Cape Lambert with a nominal 55 million tonne annual capacity was installed at the new wharf, which will eventually extend 1.4 kilometers from the shore. This new wharf comprises a two sided berth that will provide facilities and loading for two very large ore carriers with the capacity to deliver up to 250,000 tonnes of iron ore to each.
2. All major coastal infrastructures for the 290 MT per annum project is now on site and in place.
3. All wharf piling for the 360 MT per annum project at Cape Lambert is complete.
4. Work has commenced on the 70 kilometers of rail duplication into Cape Lambert as part of the 360 MT per annum project.

Rio Tinto’s integrated operations will be progressively updated as follows:
1. 237 MT per annum current operating capacity
2. 290 MT per annum by the third quarter of 2013 - Cape Lambert 53 MT per annum increment
3. 340 MT per annum by end of 2014 Cape Lambert 50 MT per annum increment
4. 360 MT per annum by H1 2015 - Cape Lambert 20 MT per annum increment

The expansion from current operating capacity to 290 MT per annum is fully approved. All capital expenditure for the port, rail and power components of the phase two expansion to 360 MT per annum has also been approved. The new mines required to grow production from 290 to 360 MT per annum are still in study, pending future investment decisions.

Iron Ore Company of Canada;
Q1 saleable production was 20% higher than the same period of 2012 following the completion of the Concentrate Expansion Project. During the Q1 of 2013 the full capacity of the CEP1 expansion was successfully demonstrated, leading to a 4 MT per annum step change in annualized production capacity.

2013 production guidance;
2013 production guidance is unchanged at approximately 265 million tonnes (100% basis) from global operations in Australia and Canada, subject to weather constraints.

Source - Strategic Research Institute

voda 19 april 2013 15:48

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Rio Tinto updates on production of copper

Kennecott Utah Copper
Production of copper contained in concentrates improved significantly on the same quarter of 2012, reflecting higher grades. The decline in production from the Q4 was also mainly grade related and was partly offset by higher throughput. Gold in concentrates was slightly lower than previous quarters due to lower grades.

On April 10th 2013 Kennecott Utah Copper’s Bingham Canyon Mine experienced a slide estimated to be in excess of 150 million tonnes of material along a geotechnical fault-line of its north eastern wall. No injuries were sustained as a result of the slide. The slide was contained on Kennecott’s property, without impact to local communities.

Movement on the north eastern wall accelerated in recent weeks and pre-emptive measures were taken to relocate equipment, infrastructure and roads prior to the slide. However, the mine did experience some damage to equipment including three of the existing 13 shovels, 14 of the existing 100 haul truck fleet and other ancillary equipment. The extent of the damage and recoverability of the equipment is being assessed.

Waste movement associated with the Cornerstone extension has restarted but ore production remains suspended. The concentrator has been shut down while the smelter and refinery are operating at reduced levels. The single mine access ramp for heavy equipment was damaged and is not usable in the area of the slide. Options are being evaluated to continue mining ore from lower sections of the pit in addition to existing stockpiles. Timing to restart ore production remains under evaluation.

Based on an early assessment of information currently available, it is estimated that 2013 mined and refined copper production at Kennecott Utah Copper will be less than previously anticipated by approximately 125,000 tonnes and 100,000 tonnes respectively.

Escondida
Mined copper production increased 24% on the Q1 of 2012. This increase was driven by higher ore grades an improvement in crushing and conveying systems and the completion of the relocation of the in pit crusher move which took place in the Q1 of 2012.

Oyu Tolgoi and Turquoise Hill Resources;
First concentrate at the Oyu Tolgoi copper and gold project was produced on January 31st 2013 and commencement of commercial production is expected by the end of June 2013 subject to the resolution of the issues being discussed with the Mongolian government.

Grasberg
Based on the January 2013 Freeport estimates, 2013 production from Grasberg is not expected to exceed the metal attributable to Rio Tinto’s joint venture partner because of planned mine sequencing in areas with lower metal grades. Accordingly, Rio Tinto’s share of joint venture production is expected to be zero for the year.

Northparkes
Q1 production was two per cent higher than the same quarter of 2012, reflecting higher throughput.

Palabora
Mined copper production was significantly lower than the first quarter of 2012 due in part, to the south winder bearing failure and illegal industrial action at the underground mine, both of which were resolved in Q1 2013. Lower ore grades were also a contributor, consistent with expectations as the current lift 1 operations draw to an end in 2015. The previously announced sale of Rio Tinto’s 57.7% interest in Palabora remains subject to customary regulatory approvals in South Africa and China and is expected to complete in the H1 of 2013.

2013 production guidance;
Rio Tinto’s forecast copper production is currently being re-assessed following the slide at Bingham Canyon. Based on an early assessment of information currently available, it is estimated that 2013 mined and refined copper production at Kennecott Utah Copper will be less than previously anticipated by approximately 125,000 tonnes and 100,000 tonnes, respectively. As a result, Rio Tinto share of mined and refined copper production in 2013 is expected to be approximately 540,000 tonnes and 205,000 tonnes respectively.

Source - Strategic Research Institute

voda 19 april 2013 15:59

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Miners plan USD 250 billion in new expansion

Bloomberg reported that iron ore output expanding 11% this quarter will help increase shipping rates, according to Fearnley Securities AS. Volumes will rise to 49 million tonne from 44 million tonne, Mr Rikard Vabo, an Oslo based analyst at the investment banking unit of Norway’s second largest shipbroker said that in an e mail, citing guidance from BHP Billiton Ltd the world’s largest mining company. Rates for Capesizes hauling 160,000 tonne of the commodity used to make steel averaged USD 6,058 a day last quarter, the second lowest since at least 1999 according to the Baltic Exchange in London.

He said that “With stronger output from the major miners in the Q2 the Capesize market should on the margin see better demand than experienced during the prior 3 months.”

The Melbourne based company said in a statement that “BHP, Rio Tinto Group and Vale SA, the 3 biggest iron ore exporters, are planning USD 250 billion of new mines, according to data compiled by Bloomberg. BHP produced 40.2 million tonne in the 3 months to March 31st compared with 37.9 million tonne a year earlier.”

Source - Bloomberg

voda 19 april 2013 16:00

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Rio Tinto new chief plans to cut down costs

CITY A.M reported that Rio Tinto’s CEO had achieved a solid performance in the first quarter, despite a drop in copper production.

The mining giant reported record first quarter iron ore production but said that structural damages to its Kennecott Utah Copper mine meant that refined copper production in 2013 would be around 100,000 tonne less than had been anticipated.

Chief executive Mr Sam Walsh, who replaced Mr Tom Albanese earlier this year, said that cost cutting measures had been put in place. He said that “We are making good progress in achieving our cost reduction targets and other priorities for 2013 and are determined in our pursuit of greater value for shareholders.”

The company added that it plans to launch commercial production from a copper gold mine in Mongolia by the end of June, subject to talks with the country’s government.

While there was no revenue or profit disclosure in yesterday’s announcement, broker Killik & Co said that it expected the adjustment in copper production to lead to mid single digit downgrades in Rio Tinto’s revenues but the key commodity for the mining giant is iron ore.

The group’s very robust financial position gives it flexibility to invest in the business and maintain a progressive dividend policy.

Source - www.cityam.com

voda 19 april 2013 16:01

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Rio Tinto says Pilbara iron ore operations recovered swiftly

Adelaide Now reported mining giant Rio Tinto said that global iron ore production increased to 61 million tonne in the March quarter, up 6% on the same period last year.

Rio Tinto said that its 2013 iron ore production guidance remains unchanged at 265 million tonne from global operations in Australia and Canada, subject to weather constraints.

Rio said that Pilbara iron ore operations swiftly recovered from the cyclone season and were now running at full capacity of 237 million tonne per year. Rio chief executive Mr Sam Walsh said that the company's operations achieved a solid performance in the first quarter, recovering rapidly from the seasonal weather disruptions.

He said in the company’s Q1 operation review that "Our 2 major growth projects in the Pilbara and in Mongolia achieved significant milestones in the first quarter.”

Both projects remain on track for production this year.

He said that the company was making good progress in achieving its cost reduction targets for 2013.

The company said that "Cost savings are tracking on target in the year to date as the impact of headcount reductions and productivity gains are gathering pace.

However, it said that global iron ore production was 5% lower than Q4 production in December 2012 due to bad weather.

Rio said that 3 tropical cyclones forced ship loading to be suspended or slowed for several days on each occasion.

It said that "Despite this temporary closure of the ports for shipping, the mine sites and rail haulage from mine to port, continued to operate at close to capacity throughout the period.”

Rio said that the expansion of Pilbara capacity to 290 million tonne per year remains on budget and on time to achieve the accelerated completion date in the third quarter of this year.

During the first quarter the company installed a new ship loader with a 55 million tonne annual capacity on the new wharf at Cape Lambert.

Rio added that its forecast copper production was being re-assessed following the recent mine slide at Bingham Canyon. As a result the company estimates that 2013 copper production at Kennecott Utah Copper will be less than previously anticipated by approximately 125,000 tonne and 100,000 tonne.

Meanwhile, commercial production remains on track at the Oyu Tolgoi copper gold mine by the end of June 2013 subject to discussions with the Mongolian government.

Source - www.adelaidenow.com.au

voda 30 april 2013 15:02

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BHP Billiton sign sale of Pinto Valley

BHP Billiton has signed a definitive agreement to sell its Pinto Valley mining operation and the associated San Manuel Arizona Railroad Company to Capstone Mining Corporation for an aggregate cash consideration of USD 650 million.

The transaction is subject to regulatory approval, and other customary conditions and is expected to be completed in the second half of the 2013 calendar year.

Under the terms of the agreement, Capstone will assume the business’s environmental liabilities. BHP Billiton employees working at Pinto Valley and SMARRCO will become employees of Capstone as part of the transaction.

Mr Peter Beaven BHP Billiton president Copper said that “The sale of Pinto Valley is an excellent outcome for BHP Billiton shareholders. It is consistent with our strategy and it takes the transaction value of divestments announced over the last 12 months to USD 5.0 billion. We are pleased to have reached agreement with Capstone, particularly given their commitment
to maintain our environmental and safety standards."

Source - Strategic Research Institute

voda 30 april 2013 15:07

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BHP and Rio pay mining tax but Xstrata does not

The Age reported that BHP Billiton and Rio Tinto have both made payments under the federal government's controversial mining tax during the March quarter.

Speaking at a Senate inquiry into the mining tax representatives of both companies confirmed the payments were made. But Xstrata, the third company that helped negotiate the design of the tax in 2010 has confirmed that it did not pay mining tax during the period.

Despite revealing the payments, both Rio and BHP said that they could not yet reveal how much they had paid because of market disclosure rules. BHP has previously confirmed paying USD 77 million in mining tax in the six months to December 31 but the March quarter payment is Rio's first payment under the tax.

Source - The Age.com

voda 2 mei 2013 16:30

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Fusie Glencore en Xstrata een feit

LONDEN (Dow Jones)--Mijnbouwer Glencore International plc (GLEN.LN) heeft zijn langverwachte fusie met Xstrata plc (XTA.LN) afgerond waardoor het nieuwe bedrijf het grootste grondstoffenconcern ter wereld wordt.

Glencore meldde donderdag in een verklaring dat de fusie is voltooid en dat het totaal aan uitgegeven aandelenkapitaal van Xstrata nu in eigendom is van Glencore. Voor elk Xstrata aandeel ontvangen aandeelhouders 3,05 aandelen Glencore.

De nieuwe bedrijfsnaam Glencore Xstrata plc wordt naar verwachting later op de dag effectief.

Het concern heeft een marktwaarde van rond de $76 miljard en het aandeel zal naar verwachting vanaf vrijdag verhandelen aan de FTSE in Londen. Xstrata verdwijnt op dezelfde dag in Londen en in Zwitserland van de beurs.

Door Diana Kinch; vertaald en bewerkt door Marleen Groen; Dow Jones Nieuwsdienst; +31 20 5715 200; marleen.groen@dowjones.com

voda 3 mei 2013 16:35

0

Rio Tinto orders Wabtec ECP braking equipment

Wabtec Corporation announced an USD 15 million order to provide electronically controlled pneumatic braking equipment including software for use on heavy haul locomotives and wagons operated by Rio Tinto in the Pilbara region. Delivery is scheduled for this year.

The contract follows on from previous orders to supply ECP equipment for retrofitting to the mining company's iron ore wagons and locomotives.

Mr Albert J Neupaver President & CEO of Wabtec said that “Heavy haul railroads around the world have proven the advantages of electronic braking in commercial service. Continued investment in this technology demonstrates that railroads can deploy ECP to reduce cycle times and improve train handling, among other operational benefits.”

Source - www.railwaygazette.com

voda 8 mei 2013 16:49

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Rio Tinto to press on with iron ore expansion plans

Reuters reported that Rio Tinto is set to press on with plans to boost production at its Australian mines by a quarter in 2015 shrugging off pressure to slow spending and conserve cash as the commodity boom cools.

In spite of forecasts of a looming global supply glut, shareholders expect Chief Executive Mr Sam Walsh to tell the firm's annual general meeting in Sydney on May 9th 2013 that it's full speed ahead with a 70 million tonnes per year increase that will take output to 360 million tonnes annually by 2015.

The plan means that a major additional chunk of iron ore production will enter the world market in the next few years and will add to concerns about increased supply that could weigh on a recovery in prices.

Mr Ben Lyons who helps manage AUD 400 million at ATI Asset Management, which holds Rio shares said that "They should continue to expand what is a high margin, high returning project, one of the best returning mining projects in the world because growth now will mean yield in the future. Rio Tinto's board is not expected to make a final decision on the expansion plans estimated to cost up to USD 5 billion until later this year.”

Mr Walsh was named chief executive in January as part of a management shake up after a string of disastrous investments crowned by the USD 38 billion acquisition of Alcan in 2007 just before aluminium prices crashed drove Rio Tinto to its first annual loss ever in 2012.

Under Mr Walsh, Rio Tinto has already cut hundreds of jobs and marked copper, coal and aluminium operations for sale or closure. None of them have been sold so far though Walsh has said there is strong interest in its Pacific Aluminium division, a grouping of 13 assets marked for sale.

Source - Reuters

voda 8 mei 2013 16:50

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Rio Tinto and Fortescue push Pilbara growth

Business Spectator reported that despite the mining sector's broader push towards restrained capital spending and pressure to boost shareholder returns, Rio Tinto Limited and Fortescue Metals Group Limited plan to invest heavily in their Pilbara iron ore operations.

The vote of confidence in the miners Pilbara operations came as Fortescue opened its Firetail mine in the Pilbara where Mr Nev Power CEO of Fortescue plans to boost production by a further 10% after the expansion plan is completed by the end of 2013.

Mr Sam Walsh CEO of Rio Tinto said that he expects Rio's board to approve USD 4.3 billion worth of spending on iron ore mine expansions with a goal of boosting capacity to 360 million tonnes by 2015.

He acknowledged that some fund managers have been questioning Rio's iron ore expansion plans and whether they should be sacrificed to instead return cash to shareholders.

Mr Andrew Forrest chairman of Fortescue who owns 33% of the company said that it is possible for miners to satisfy investor demands for improved returns while also investment in expansions. It doesn't have to be one or the other. Fortescue would resume dividends as soon as it was responsible to do so.

Source - Business Spectator.com

voda 9 mei 2013 17:13

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Rio Tinto calls new record for China iron ore sales

Business Spectators reported that Rio Tinto Limited tips its China iron ore sales to hit a new record this year driven by the country's growing appetite for steel.

Mr Alan Smith Rio's president of iron ore Asia said that China's demand for steel was predicted to rise over the next decade at a compound annual growth rate of 3%.

Mr Smith expected Rio Tinto's iron ore sales to the world's second biggest economy would beat the 147 million tonne record achieved last year adding that China's annual steel demand would peak at about 1 billion tonnes in 2030.

He said that Rio Tinto's annual iron ore production capacity of 237 million tonnes would rise to 290 million tonnes in the Q3.

Source - Business Spectator.com

voda 9 mei 2013 17:13

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Global iron ore supplies will expand faster than demand - BHP

According to BHP Billiton Limited, global iron ore supplies will expand faster than demand over the long term lowering prices and reducing volatility of the raw material used to make steel.

Mr Alan Chirgwin GM of iron ore marketing said that new seaborne cargoes will replace more expensive output mainly in China. He didn’t give price forecasts or define long term. China is the world’s largest buyer of the biggest seaborne cargo after crude oil.

Deutsche Bank AG said that iron ore has lost 10% this year, nearing bear market territory, amid forecasts for an increase in global supplies just as demand growth in China drops. As producers boost output higher cost Chinese supply will drop and the price will extend declines.

BHP’s Mr Chirgwin said that “As the new supply gradually displaces high-cost production, it will therefore translate into lower prices. Significant low-cost supply, mainly from Australia and Brazil, will eventually meet and exceed incremental Chinese demand.”

Morgan Stanley said that global seaborne supply will climb 5.8% to 1.13 billion tonnes this year followed by 16% growth in 2014 and 10% in 2015. Total demand growth may drop from 6.7 percent in 2013 to 6.3% next year and 5.1% in 2015. The market will shift into surplus from 2015 after a run of deficits stretching back to at least 2005.

Mr Chirgwin said that “There’s no scarcity of high-quality resources: the issue that remains is the development. We start to see new, large seaborne supply coming to market mostly coming from large companies which have access to the resources and established infrastructure. Supply growth is, and will continue, accelerating.”

Source - Bloomberg

voda 10 mei 2013 13:35

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Rio Tinto expects Mongolia nod for copper exports soon

Reuters reported that Rio Tinto expects to win approval from the Mongolian government in the next 2 weeks to transport copper out of its USD 6.2 billion Oyu Tolgoi mine, a key project for the company as it reins in spending in other areas.

Mr Sam Walsh CEO of Rio Tinto said that the opening of the mine hinges on resolving issues over transport and shipping with the government and discussions were progressing well. We are still looking for some approvals in relation to exactly how we transport and ship the material that we expect to receive in the next couple of weeks.

Progess on Oyu Tolgoi could help offset the impact of disruptions caused by a huge landslide at Rio Tinto's Bingham Canyon mine in Utah last month. The firm estimated 2013 refined copper production from the US mine would be about 100,000 tonnes less than expected.

The Oyu Tolgoi project, run by Rio Tinto and two thirds owned by its Turquoise Hill Resources unit, is a vital source of growth for the company as it looks to ease its hefty dependence on its iron ore business. The mine is expected to account for more than 30 percent of Mongolia's gross domestic product with copper production forecast to reach 450,000 tonnes annually.

Mr Jan du Plessis chairman of Rio Tinto and Mr Walsh defended the company's plans to press forward with expansion in iron ore. The world's No.2 iron or miner expects to reach 290 million tonnes a year capacity by the Q3 of this year.

Capacity is due to expand further to 360 million tonnes a year by the H1 of 2015 despite investors clamouring for higher dividends instead of splashing out on mega projects and some analysts suggesting a slowdown in the expansion would shore up iron ore prices and boost Rio's shares.

Source – Reuters

voda 10 mei 2013 13:37

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Rio Tinto sees iron ore demand intact

Reuters reported that Rio Tinto is keeping output expansion plans for the steelmaking raw material intact with global demand led by top market China likely to keep growing, albeit at a slower pace.

A senior company official said that the Anglo Australian miner is boosting iron ore production by 70 million tonnes a year that will take output to 360 million tonnes annually by 2015.

Mr Alan Smith head of iron ore marketing in Asia said that "In this decade we, Rio Tinto, expect Chinese steel demand to continue to grow on average about 3% per annum. The miner expects seaborne iron ore demand to grow by 800 million tonnes in the current decade, justifying Rio's plans to continue boosting output.”

Rio Tinto led by former iron ore head Mr Sam Walsh who took over as chief executive this year has vowed to cut more than USD 5 billion in costs by the end of 2014. So far, the company has slashed hundreds of jobs and marked copper, coal and aluminium assets for sale or closure. Its optimism on iron ore, which contributed 46% to revenues for the latest half year, seems warranted at least for now.

Source - Reuters

voda 10 mei 2013 13:39

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BHP and Rio Tinto climb with higher iron ore price

Iron ore miners are on the move in morning trading on the Australian Stock Exchange on short covering after spot iron ore rose 1.5% to USD 130 per tonne the first rise in 3 weeks on the back of firmer steel prices.

BHP Billiton was up 1.54% to USD 34.19, Rio Tinto gained 1.92% to USD 58.49, Fortescue Metals rose 5.56% to USD 3.895 and Atlas Iron climbed 10.44% to AUD 1.005.

Port Hedland, the world's largest iron ore export port shipped 4% more iron ore in April over March as re stocking by China at lower prices took effect. Exports to China increased by one per cent in total volume while South Korea and Taiwan imported greater amounts of Australian iron ore in April.

Port Hedland is the home port to BHP Billiton, Rio Tinto and Fortescue Metals. Exports rose 26% in April compared with the same month a year earlier as Australian iron producers expanded production. Shipments to China rose 30% on year.

Last Thursday, Port Hedland recorded its biggest shipment breaking a previous iron ore export record as a bulk carrier PSU carried 255,000 tonnes of iron ore to China.

Source - Proactive Investors

voda 10 mei 2013 13:40

0

Mr Hambro seeks talks with Rio on USD 5 billion expansion

Bloomberg cited BlackRock Inc’s Mr Evy Hambro who manages the USD 10 billion World Mining Fund as saying that he will seek talks with Rio Tinto Group management on a planned iron-ore expansion that some analysts say will result in lower prices.

Mr Hambro said that Mr Sam Walsh CEO of Rio Tinto has made recent comments about increasing returns to shareholders, reducing costs, managing the balance sheet and maintaining a single A credit rating and those kind of things sit with canceling or deferring that growth decision.

Mr Walsh said this week that the world’s second biggest mining company will probably pursue proposals for additional output in Australia. Iron ore is set for its first surplus in at least a decade as output expands and Chinese mills, the biggest buyers boost production at the slowest pace in 5 years.

Mr Hambro said that “Rio Tinto are not stupid, they are obviously very well aware of this and they’ve obviously stress tested this investment decision significantly. But we are looking forward to exploring a little bit further with them at the mid year point, when we catch up with them after their results exactly the dynamics behind that investment.”

The people said that the board is expected to approve in the Q4 an increase in annual mine production to 360 million tonnes from 290 million tonnes unless there are significant changes to the global demand supply situation, Walsh told the gathering. Rio has already approved USD 5.9 billion of spending on port and rail as part of that expansion.

Mr Hambro said that when the comments were made earlier this week with regards to taking forward that investment decision to the board by the end of the year which is still the existing timeframe, I think the markets were a little bit surprised by that. The market had been looking for some kind of leadership from Rio with regards to that investment.

Source – Bloomberg

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