Eurobench.com

voda 14 mei 2015 11:09

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Rio Tinto bullish on China iron ore demand

The Australian cited Mr Sam Walsh CEO of Rio Tinto as saying that the giant miner remains confident China’s steel production has yet to peak, despite growing concerns its forecasts may prove optimistic. The company has also defended its production tactics in the face of a call for a Senate inquiry from independent senator Mr Nick Xenophon.

Mr Walsh said that a new normal was ensuring the global demand mix (was) evolving and becoming less commodity intensive. However, with solid economic growth still expected off a larger base, he suggested a bearish outlook on China and its future iron ore demand was overplayed.

He said that “Everything we see continues to support our view of around 1 billion tonnes of Chinese crude steel production by 2030, which requires average growth of around 1% per annum.”

While Mr Walsh noted Chinese growth was cooling somewhat, he expressed hope that emerging markets like India and Indonesia could be a key growth driver over coming decades.

Rio has been under intense pressure over its plans to lift production through an oversupplied market with Mr Walsh again defending the tactics as less efficient rivals fall out of the market amid a price slump.

He said that “Mining is a cyclical industry. High prices brought in marginal producers, often based on overly optimistic assumptions and aggressive business models. These tonnes are now exiting the market, which is part of normal supply and demand.”

He added that “I am sure we will encounter further turbulence, as markets adjust and low grade, high cost material exits the market. But throughout this volatility, we will carry on maintaining our competitive position and delivering the best return for our shareholders.”

Source : The Australian

voda 14 mei 2015 11:14

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BHP Plans to Usurp Rio as world’s lowest cost miner of iron ore

Bloomberg reported that BHP Billiton Ltd plans to take the crown of rival Rio Tinto Group as the lowest cost iron ore supplier as an escalating battle for market share erodes profitability from one of the mining industry’s biggest sources of earnings.

Mr Andrew Mackenzie CEO of BHP said that “The world’s largest mining company seeks to cut costs by 21% at its Western Australian operations to AUD 16 per tonne in fiscal 2016.

Mackenzie said that “There is a lot of new low cost supply that’s coming onstream and that’s happening at a greater rate than any extrapolated growth in demand for iron adding that it’s the reason he’s relatively bearish on prices.”

Mr Sam Walsh CEO of Rio Tinto said that “Company is mining the steel making raw material for AUD 17. Prices have collapsed 53% since the start of 2014 as the largest suppliers try to squeeze out higher cost competitors and deepen a worldwide glut of the material. The strategy has brought criticism from rival producers, as well as governments that see their natural resources being sold off cheaply.”

Mr Walsh also set out the case for Rio in Barcelona. Its low mining costs give it an unrivaled position in the industry but we cannot be complacent. Our focus on reducing costs in this business has never been sharper.

Source : Bloomberg

voda 19 mei 2015 16:52

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BHP Billiton and Rio Tinto diverge on aluminium

AFR reported that after years in the wilderness, aluminium has re emerged as a big deal for mining majors BHP Billiton and Rio Tinto.

BHP has placed aluminium front and centre for South32 its metals and mining spinoff that began trading on the ASX with a value of USD 11.3 billion while Rio may have finally lined up a buyer for its troubled Pacific Aluminium business, reflecting improving sentiment among miners thanks to a recovery in prices.

But their divergent strategies for selling the metal's merits to investors raise a critical question: Should aluminium remain a core constituent within their portfolios or be freed up to potentially flourish within a standalone vehicle?

It's a dilemma every large miner is facing for at least some of their commodities as a consequence of a sometimes undisciplined decade-long investment spree during the resources boom, which created huge shareholder value but also plenty of heartache along the way.

BHP and Rio's great mining rival, Brazil's Vale, has already been down this particular path. It sold its aluminium unit in 2010 to Norway's Norsk Hydro in a well timed USD 5 billion deal in order to focus on its core commodities: iron ore and coal. BHP and Rio are in many ways late to the de diversification party.

But their persistence with the commodity could yet yield rewards for investors hoping to capitalise on China's shift to a phase of consumption led, lighter-metal growth from the steel-intensive capital investment of the last decade.

BHP doesn't consider aluminium among its four key pillar commodities of iron ore, petroleum, copper and coal (with potash a potential fifth), although the miner does believe it remains a key late-stage metal within the economic cycle.

Aluminium accounts for nearly a third of earnings before interest tax, depreciation and amortisation within South 32. And putting the risks around operating in South Africa and Mozambique to one side, the aluminium assets are regarded reasonably highly by analysts, albeit at the higher end of the cost curve.

Source : Australia Financial Review

voda 19 mei 2015 16:53

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BHPB CEO says iron ore inquiry very bad

AAP cited Mr Andrew Mackenzie head of mining giant BHP Billiton as saying that a Senate inquiry into iron ore prices would send a terrible signal to Australia's trading partners.

Mr Andrew Mackenzie said that an inquiry would place an additional burden on mining companies and be very bad for Australian competitiveness.

Source : AAP

voda 19 mei 2015 16:56

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Rio Tinto's Mr Andrew Harding stunned by iron ore war

Mr Andrew Harding iron ore CEO of Rio Tinto is stunned by the public campaign waged against the company by rival Fortescue Metals Group.

Mr Harding denied Rio Tinto is flooding the market with iron ore and expressed deep frustration with Fortescue founder Mr Andrew Forrest's aggressive public relations campaign, which he believes is winning political support by distorting reality.

Mr Forrest has led a public campaign against Rio Tinto and BHP Billiton for weeks that has won the support of Prime Minister Mr Tony Abbott, who is supporting a parliamentary inquiry into the iron ore industry and the nation's biggest taxpayers against several of his own cabinet ministers.

Mr Harding said that there could be extraordinary ramifications for Australia in its strong reputation for promoting free and open markets. It is stunning. I am absolutely stunned. As I keep saying, there is a reality dysfunction. The commercial reality of it all gets overlaid by the claim 'that is rubbish' and 'that is not how it works', but no one ever goes on to explain how it works in the alternative.

He said that "The reality is Australia has a great reputation internationally for its commitment to free and open trade but if the only time you get to demonstrate how supportive you are of free trade and open markets is when you are going through the bottom of a cycle, the ramifications could be extraordinary."

Mr Forrest argues commentary from the big miners about future expansions has pushed down prices for iron ore on the futures market, which in turn crashes physical prices and wipes billions from government revenue. The government is preparing a bi-partisan inquiry likely to be led by a Liberal backbencher, iron ore expert and Rhodes scholar, Angus Taylor.

Despite federal shadow resources minister Mr Gary Gray revealing the Labor Party would support an industry inquiry, Opposition leader Mr Bill Shorten said he wanted to see the scope of it before pledging any support.

He said that the government seemed intent on getting into some sort of finger pointing competition with the iron ore companies. When you start mucking around with the way iron ore is sold in Australia and dug up in Australia what we see here is we'll send a message of instability to our Asian customers.

Source : WA Today

voda 19 mei 2015 17:03

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Rio Tinto concerned about iron ore inquiry

Mining giant Rio Tinto is concerned what signal a Senate inquiry into iron ore prices would send to the rest of the world and it seems some in the federal cabinet hold similar concerns.

Mr Andrew Harding iron ore CEO of Rio Tinto said that “An inquiry would show the market is operating freely, openly and normally as the chairman of the Australian Competition and Consumer Commission Rod Sims and other competition experts have already identified. Australia must be mindful of the signal an inquiry would send to our major trading partners."

Mr Harding said that Australia's economic development has been underpinned by being a global champion of free trade and open markets and it should be careful not to disturb this hard earned reputation. Our global standing as a supporter of open markets has already been undermined by calls to cap iron ore production and for government intervention in the market."

But Prime Minister Mr Tony Abbott insists that while there are all sorts of claims floating around, his government is not about to interfere with free markets, such as iron ore. We are not in the business of holding them back. We are not in the business of holding their hands this government will never do that.

Mr Abbott said that an inquiry could make sense as it would get to the bottom on claim and counter claim about what's happening inside the iron ore industry at the moment. But what we don't want is a witch-hunt against any particular business.

He said that "I'm full of admiration for what companies like Rio and BHP have done. I want them to continue to flourish, but I also want a level playing field, I want to ensure that there's no predatory behaviour, I want to ensure that everyone is able to compete freely in an open market."

Source : Business Spectator

voda 21 mei 2015 16:42

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Chile strikes BHP Billiton copper project off development timeline

Published on Thu, 21 May 2015 47 times viewed

SMH reported that the Chilean government has removed BHP Billiton's USD 4 billion Spence copper expansion project from its 10 year development timeline, saying it expects the world's largest miner will miss its targeted deadline of first production by 2020.

While BHP has prioritised the expansion of its massive Escondida copper mine in Chile in recent years, it has also signalled to investors its Spence Hypogene project in the north of the country, could drive its supplies of the red metal over the medium term.

BHP has conducted a pre feasibility study to deliver copper from the hypogene ore body that lies beneath its existing Spence mine by 2020 as part of a plan to extend the life of the facility by up to 50 years.

However, Chile's state-run copper commission Cochilco discounted it as a project likely to take shape in the next decade, saying it expected the timeline to slip, with Escondida remaining the priority.

Source : SMH

Bijlage:

voda 22 mei 2015 16:00

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Rio Tinto CEO says Vale iron ore deal shows fierce market

Mr Andrew Harding iron ore CEO of Rio Tinto said that the iron ore expansion deal Brazil executed with China this week shows how serious the Latin American giant's pursuit of market share is in a fiercely competitive global industry.

Mr Andrew Mackenzie chief executive of fellow iron ore major BHP Billiton said that deal showed Australia's global competitors are stepping up their efforts and Australia cannot rely on its natural advantages as an iron ore exporter.

Mr Andrew Forrest, chairman of rival Fortescue Metals Group, is campaigning against BHP and Rio for continuing to expand into a weak iron ore market and has been pushing for an inquiry into the effect of their strategies which the government has now ruled out just as the country's greatest competitor, Brazil, is putting its foot on the accelerator.

Mr Harding said that once Australia conceded market share, it would be very difficult to recover. In a deal that will reshape the global industry, China on Tuesday agreed to fund a major, low cost expansion by Brazilian iron ore giant Vale and invest in huge Vale ships that will transport high quality ore to North Asia.

He said that this week has underscored the seriousness of Brazil's pursuit of global iron ore market share. The global iron ore market is fiercely competitive and we should be under no illusion about that. If we do not produce iron ore for this global market another country will. If Australia loses global market share, we lose taxes, royalties and the other economic benefits of a strong iron ore sector. Once that market share has gone, it is very difficult to recover.

Source : Australia Financial Review

voda 23 mei 2015 15:26

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Mongolia seeks help from Rio Tinto and China for copper industry recovery

Copper mining is a major industry in Mongolia and the country's economy relies heavily on it. The country ranks 12th in the world for copper reserves with the Gobi Desert holding 35 million tonnes of copper.

Though high in resource, Mongolia only has two companies producing copper concentrate. The Erdenet Mining Corporation is a partnership between Russia and Mongolia. The second company, Oyu Tolgoi, is a joint venture between Rio Tinto, Turquoise Hill Resources, and the local government. Now, the country is looking to Rio Tinto for help with USD 6.5 billion expansion deal for Oyu Tolgoi in hopes of rehabilitating Mongolia's economy.

The expansion deal will expose Rio Tinto, a British Australian multinational, to more copper. Analysts believe that a diminishing global supply of copper is on its way, an event that could ultimately increase prices. This is particularly good news for Rio Tinto since the company relies heavily on iron ore, a metal that's quite abundant with no demand matching the supply.

The plan for Oyu Tolgoi's expansion has been laid out for two years, but halted due to disagreements between Rio Tinto and the Mongolian government. Issues include project costs and revenues, two of the things that could quickly stop development if not settled properly. Currently, Mongolia is having issues with its economy and agreeing to this deal will give the country a new hope in improving its monetary situation.

It is important to note that copper was the country's main export up until 2010, which means that there is indeed high-quality copper underneath Mongolian soil. However, the country relied heavily on the mining sector, leading to boom bust cycles and credit downgrades by agencies that worry about weak liquidity.

Foreign investors snubbed Mongolia and disintegrating coal exports dried up the country's finances. Foreign investment decreased by 87% in 2014, slowing the growth to a mere 7.8 percent compared to 12.3 percent in 2013. China came to the rescue, helping the country's central bank from economic collapse with a currency swap agreement just so Mongolia will maintain reserve levels.

Source : China Topix

voda 27 mei 2015 16:39

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Activists call on BHP Billiton to Abandon Borneo Coal Mines

Activists on May 26th 2015 attempted to unfurl a giant banner in BHP Billiton headquarters containing the names of over 9,000 people who are calling for the company to abandon its plans to build a series of coal mines in some of the last remaining stands of primary rainforest in Indonesian Borneo.

The banner – measuring 12 square metres – was to be hung in the foyer of BHP Billiton’s head offices in Melbourne, but was quickly confiscated by BHP Billiton security (image of banner available below).

A protest was also planned for BHP Billiton’s London offices tonight, Australian time, and the petition will be formally presented to company management.

The petition calls the series of mines – known as the IndoMet project – a “disaster in the making” and asks BHP Billiton (BHPB) to “withdraw from IndoMet immediately and seek permanent protection for the area.”

BHPB’s giant IndoMet coal concessions cover 350,000 hectares - an area one and a half times the size of the Australian Capital Territory - in Central and East Kalimantan. The area holds more than 1.2 billion tonnes of coking coal and is located in the ‘Heart of Borneo’ region, which the Asian Development Bank has called “the lungs of Asia”.

The rich forest, which has provided sustainable livelihoods for Dayak people for generations, is also home to pygmy elephants, Sumatran rhinoceros, clouded leopards and orangutans. WWF reports that the area is home to 6 per cent of the world’s biodiversity, with three new species, on average, discovered every month since 2005.

“Thousands of people have signed this petition to call on BHP to scrap plans for what would be an environmental and social disaster. Rather than trying to mine for coal in the Heart of Borneo, BHP Billiton should do the right thing and seek permanent protections for this unique part of the world,” said Julien Vincent of Market Forces.

As a member of the International Council on Metals and Mining, BHPB has committed to obtaining the consent of indigenous peoples for mining operations affecting their land, including for “customary owners or occupants of land or resources.”

However, local people in the village of Maruwai who live near the Haju mine, the first concession being developed by the company, report being forced on threat of arrest to accept less than half a cent per square metre from BHPB for their traditional lands. Next week, Maruwai villagers will be filing a claim with the Central Kalimantan government for legal recognition of over 1000 ha of land that is currently held in BHP Billiton’s Haju concession.

“It is simply unacceptable for one of the richest companies in the world to refuse to recognise the legitimate land rights of indigenous people in the area. This project is bad news for local people and bad news for the world’s climate. In a world that is oversupplied with coal, there is simply no justification for developing the IndoMet project,” said Alex Scrivener from Global Justice Now, the organiser of the petition.

Source : Foe.org.au

voda 27 mei 2015 16:56

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Rio Tinto to raise up to AUD 6 billion for Oyu Tolgoi expansion

Rio Tinto Group will seek to raise as much as USD 6 billion of external funding for the Oyu Tolgoi underground mine in Mongolia as the company prepares a war chest to develop one of the world’s largest untapped deposits of copper and gold.

According to a development plan published by Turquoise Hill Resources Limited, the money will be raised through third-party project financing, product off take arrangements and other forms of funds, which owns 66% of Oyu Tolgoi. Overseas investors led by Rio control the project through this stake.

Rio and the Mongolian government last week ended a protracted dispute that stalled construction of the underground mine. A midnight signing of the plan in Dubai followed two years of start-stop talks between the two sides that tested the resolve of foreign investors in the Asian country.

Mr Jean Sebastien Jacques, head of its copper and coal business said that”Rio has a goal of raising more than AUD 4 billion in third party project financing and will target 15 to 20 banks. Discussions on terms are to begin in the coming days and weeks. Less than 10% of the 200 kilometers (124 miles) of underground tunnels needed for the mine have so far been built. This will take five to seven years.”

Source : Bloomberg

voda 28 mei 2015 16:34

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Senator suggests Rio Tinto and BHPB are undermining WA budget

Labor senator Mr Sam Dastyari has urged Western Australian Premier Mr Colin Barnett to investigate whether tax minimisation practices by Rio Tinto and BHP Billiton are costing his state money.

Senator Dastyari, the chairman of the Senate standing committees on economics, has written to Mr Barnett suggesting that the use of trading hubs in Singapore, allegedly to minimise company tax, could also be depriving Western Australia of royalty revenue.

The hubs buy minerals from their own companies in Australia and sell them, generating bigger profits because Singapore has a lower company tax rate.

Senator Dastyari argued that the issue has national relevance given the federal government recently gave Western Australia AUD 500 million cash after it complained of the impact of falling royalties and GST revenue. Revelations to his committee that the Singapore hubs were being audited by the Australian Tax Office gave further reason for the state government to examine the issue.

The letter said that "Given the implications of the ATO's position, and the current pressure on the West Australian state budget, it is prudent to question whether tax minimisation practices are also affecting royalty payments."

Mr Chris Jordan, Tax Commissioner told the committee 22 that the ATO believed the dealings between the companies' offices in Australia and Singapore warranted scrutiny. The assertion that all of these dealings are at arm's length between the related parties here is precisely what we are disputing, that's what we are auditing."

Source : Australian Financial Review

Bijlage:

voda 29 mei 2015 15:39

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China's revenge serves body blows to BHP and Rio Tinto

Published on Fri, 29 May 2015 42 times viewed

It's taken six years, but China is slowly turning the tables on the heavyweight iron ore miners.

In 2009, iron ore giants BHP Billiton and Rio Tinto decided they wanted to take advantage of China's soaring demand for iron ore, which was pushing prices ever higher. So they ditched the 40 year old system of setting annual contract prices in favour of using spot pricing for the majority of their iron ore shipped to China from 2010.

Needless to say, China's steel mills weren't very happy about that. BHP's previous CEO Mr Marius Kloppers is widely acknowledged as the man most responsible for bringing about the change. With BHP and Rio filling a huge amount of China's demand, the steelmakers had little choice but to acquiesce.

The changes and China's thirst for iron ore, saw the iron ore price soar as high as USD 191 per tonne in February 2011, from around USD 60 per tonne in 2008. Rio Tinto produced record underlying earnings of USD 15.5 billion in the 2011 financial year, with iron ore contributing USD 12.9 billion. BHP, for its part, saw net profit rise 74% to USD 21.7 billion as revenues rose 36%.

China may also still be sore over aluminium giant Chinalco's aborted US$19.5 billion investment in Rio Tinto back in 2010, which was aimed at gaining resource security.

At the time, reports suggest Chinese officials feared that China was too vulnerable to both Rio and BHP, even separately. Rio's board canned the deal, and announced that it was instead forming an iron ore joint venture with BHP. That deal never went ahead much to the relief of China.

But China has never forgotten, and appears unlikely to forgive. Now the sleeping giant has awakened, and looks set to turn the tables on Rio and BHP.

Firstly, China needed to loosen its dependence on the two Australian iron ore miners, so it has turned to Brazil's Vale. For many years Vale was snubbed by the Chinese. The iron ore giant had built a number of very large ore carriers to ship ore to China, but they have been banned from docking at Chinese ports since 2012.

Now, China hasn't just removed the restrictions but Vale has also sold 4 of the ore carriers to two of China's biggest shipping companies. Each carrier can transport up to 400,000 tonnes of iron ore, and could reduce Vale's production costs by as much as 25 per cent, according to some estimates. That would bring Vale's landed costs around the same as BHP and Rio's.

Source : SMH

voda 29 mei 2015 15:42

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BHP Billiton and Rio Tinto can capture 70pct of iron ore export market - Citi

Published on Fri, 29 May 2015 46 times viewed

SMG reported that within a decade BHP Billiton and Rio Tinto could together produce more than 900 million tonnes of iron ore which will meet about 70% of global demand for seaborne iron ore.

In an in depth research note on the long term outlook for the iron ore market, Citi downgraded its long run iron ore price forecast, out to 2025, to USD 55 a tonne from USD 81 per tonne.

The Citi analysts, led by Mr Ivan Szpakowski, said that the downgrade was driven by declining demand for iron ore, especially from China, lower costs and the potential for the major miners to pursue cheap expansions.

Rio is targeting production of 330 million tonnes this calendar year, 350 million tonnes by 2017 and an eventual target of 360 million tonnes. BHP remains committed to lifting production from 250 million tonnes to 290 million tonnes but recently revealed it would do this much more slowly after deferring a port improvement project.

They said that "Rio Tinto and BHP the world's lowest cost producers both possess significant expansion capabilities, with potential to boost output to a combined 900 plus million tonnes by 2025. Capex costs for such expansions are modest and operating costs would remain at the bottom of the cost curve."

Citi expects BHP to reach its 290 million tonne target by the end of the 2018 financial year, with potential to go to beyond 370 million tonnes if a range of longer term expansion opportunities are pursued.

The analysts said that Rio's progress to targeted production of 360 million tonnes is uncertain as the additional greenfield mine capacity required to fill the infrastructure continues to be deferred. The greenfields Silvergrass mine will be required from 2017, with the proposed Koodaideri mine needed late this decade to maintain production.

The long term iron ore price would be set by the costs of second tier of producers, such as Fortescue, which is likely to have production capacity of between 160 and 200 million tonnes by 2025.

Combining our estimates of required sustaining operating costs for existing mines and incentive costs for new projects, we derive a price of USD 55 per tonne, which lies around the cut off for much of the second supply tier.

Source : SMH

voda 2 juni 2015 17:09

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Copper market to return to deficit – Rio Tinto

Rio Tinto said that the outlook for the copper market in the short term continues to improve and has warned it will return to deficit after 2017.

Mr Jean-Sebastien Jacques CEO of copper and coal of Rio Tinto the return to deficit would be precipitated by a lack of new project approvals. Chinese stimulus and loose monetary policy would be supportive of demand. New supply additions incentivised over the past decade will peak in 2017.

Mr Jacques said that Rio Tinto had a clear strategy to become a benchmark for profitability in the copper industry.

Source : Herald Sun

voda 4 juni 2015 16:36

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BHP's Mr Andrew Mackenzie rails against iron ore output nonsense

Published on Thu, 04 Jun 2015 41 times viewed

Mr Andrew Mackenzie CEO of BHP Billiton said that cutting or stalling new low cost, profitable iron ore supply in Australia would be a nonsense that would penalise customers and shareholders, and disrupt the power of open markets.

Mr Mackenzie said that prices were returning to long run, more sustainable levels across a suite of commodities, including iron ore. What we've seen in iron ore in the last year, is no different from what we've seen across many commodities in recent years.

Mr Ian Macfarlane industry minister of Australia agreed when people go out and wail, and nash their teeth about the price of iron ore they should remember that it was USD 28 per tonne when I was last minister. So Australia had to remain competitive.

Mr Mackenzie said that "Unequivocally, it is unproductive for Australia to cut or stall low cost and profitable supply when the cycle drops. It destroys value, penalises shareholders, customers and employees, and disrupts the power of open markets. It is a nonsense."

He said that it is these markets that induce investment during times of higher prices and reduce investment during times of lower prices, which is exactly what BHP has done in iron ore. But competition to feed demand remains intense and Australia must be ready.

He added that "Most recently, we've witnessed China's deal with Brazil's iron ore company, Vale. The companies and nations that succeed will be those that are the most productive and can supply at the lowest cost. Australia must be ready and I think we are."

Source : SMH

voda 4 juni 2015 16:38

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BHP CEO warns of oversupply after flooding iron ore market

Published on Thu, 04 Jun 2015 94 times viewed

Mr Andrew Mackenzie CEO of BHP Billiton has warned that a period of depressed prices in the commodities markets is likely to stay in place for years. As producers are adjusting to the new price reality, demand from leading commodities consumer China has slowed to normal levels as its economy undergoes structural changes.

Mr Mackenzie said that "In many markets, recently installed low cost supply can now be stretched to meet growing demand. "So incremental supply, induced during periods of higher prices, will take longer to absorb and this means oversupply may persist for some time."

The CEO of the world's largest mining company, however, failed to acknowledge BHP's own role in the oversupply of global markets, particularly in iron ore, where it plays a major role along with Brazil's Vale and Anglo Australian Rio Tinto.

He said that "What we've seen in iron ore in the last year is no different from what we've seen across many commodities in recent years. Supply growth is the function of many countries and companies competing to meet global demand."

The iron ore global surplus is expected to grow to 215 MT in 2018 from 45 MT this year, according to UBS estimates. It has already resulted in a number of mid tier producers calling it quits, among them Australia's Mount Gibson, Atlas and BC Iron.

BHP has resisted calls to cut production and fought back against a parliamentary inquiry into Australia's export strategy, arguing it would send the wrong signal to international customers about the country's commitment to free trade.

Mr Mackenzie said that "It is unproductive for Australia to cut or stall low cost and profitable supply when the cycle drops. It destroys value, penalizes shareholders, customers and employees and disrupts the power of open markets."

Source : Business News Americas

voda 5 juni 2015 16:27

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Rio Tinto says banks are backing Oyu Tolgoi

Published on Fri, 05 Jun 2015 76 times viewed

Rio Tinto's top copper and coal executive, Jean-Sébastien Jacques, says some banks have already recommitted to help finance $US4 billion the miner is seeking for its stalled copper and gold project in Mongolia. Mr Jacques personally kicked off Rio's engagement with a consortium of 15 to 20 banks last week, hosting a conference call alongside Rio group treasurer Ulf Quellmann.

He told The Australian Financial Review that several private and government-backed banks had already pledged their support and a consortium deal should be completed in the next few months. He said "The banks are ready to invest. We want to take this project to the next phase on the back of project finance."

Oyu Tolgoi in the South Gobi Desert in Mongolia is one of the world's richest copper deposits and a critical growth asset for Rio. Rio signed an agreement with the new Mongolian government last month for a $US6 billion expansion of the copper and gold mine. The deal follows an impasse of almost three years, after the former Mongolian government tried to change the original terms of the contract signed in 2009 and extract more favourable returns.

Rio has already invested $US7 billion in the open pit mine that produced $US1.7 billion revenue in 2014. But 80 per cent of the mine's potential value is buried deep underground. It requires a total extra investment of $US5-6 billion

Source : AFR.com

voda 7 juni 2015 11:30

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BHPB CEO warns that oversupply to keep iron ore prices lower for longer

Published on Sun, 07 Jun 2015 60 times viewed

Bloomberg reported that mining giant BHP Billiton Ltd delivered a sombre warning to global commodity markets that oversupply is very much here to stay. Mr Andrew Mackenzie CEO of BHPB sail last week in Canberra that tumbling prices are creating a testing environment for commodity producers, while demand is slowing to more routine levels amid a transition in China’s economy away from investment led growth

He told “In many markets, recently installed low-cost supply can now be stretched to meet growing demand. Incremental supply, induced during periods of higher prices, will take longer to absorb and this means over-supply may persist for some time.”

Ha also said “The speed at which prices have returned to long run levels for each commodity has varied as a function of the time taken for low cost supply to come to market.”

Amid calls for limits on iron ore production and for a parliamentary inquiry into export strategy, he said that BHP doesn’t see any logic in reducing its output of the steel raw material. He said “It is unproductive for Australia to cut or stall low-cost and profitable supply when the cycle drops. It destroys value, penalizes shareholders, customers and employees and disrupts the power of open markets.”

Expansion by the biggest iron ore producers, including BHP and Vale SA, will see a global surplus swell to 215 million tonnes in 2018 from 45 million this year, UBS Group AG estimates.

Source : Bloomberg

[verwijderd] 7 juni 2015 15:29

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Volgens Willem Middelkoop:
===============================
Alleen al Tesla’s impact op grondstoffen nodig voor de productie van accu’s is enorm. Er zal 152% meer grafiet moeten worden geproduceerd dan vandaag, 50% meer lithium, en 17% kobalt. Door toedoen van de plannen van BYD en de overige accuproducenten is deze impact zelfs bijna verdrievoudigd. Gezien de productiebeperkingen in de markt voor grafiet en kobalt verwachten we dat de realisatie van de plannen een grote impact zal hebben op de prijzen van deze grondstoffen.

23 maart 2015

AEX 937,50 -1,08 -0,12% 10:45


Germany40^	22.315,80	+0,01%
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