Eurobench.com

voda 22 mei 2017 16:46

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BHP Billiton CEO Andrew Mackenzie meets Elliott in Barcelona

Australian Financial Review reported that BHP Billiton chief executive Andrew Mackenzie came face to face with representatives of Elliott Associates in Barcelona late on Wednesday, as calls for change to the company's petroleum division grew louder. The meeting came more than five weeks after Elliott first went public with its original plan to reform several aspects of BHP's structure. Sources said Elliott boss Paul Singer was not present in the meeting, but several members of his Hong Kong-based team were in attendance.

Elliott spokesman Michael O'Looney said that "It was a private meeting. We found it to be constructive.”

The meeting was a chance for Mr Mackenzie to catch up on the changes Elliott made to its proposals this week, and a chance for the BHP boss to explain his plan for the company.

It is believed Mr Mackenzie was flanked by his investor relations team in the meeting.

Elliott originally called for BHP to collapse BHP's dual-listed structure leaving Australian shareholders holding a CHESS depositary interest, demerge its US petroleum assets and ramp-up share buybacks.

But this week, the New York hedge fund presented an altered plan, calling for an independent review of the petroleum division, called for the dual-listing to be collapsed in a way that allowed the Australian listing to become the primary listing, and said its buyback suggestions were about setting a "yardstick" for all other spending.

Mr Mackenzie has been meeting European shareholders this week, and will spend next week spruiking his plan for the company to Australian investors, including this week's pledge to increase rig numbers in the US shale division from four to ten.

Sydney based Tribeca Investment Management's natural resources team urged BHP to demerge its US shale assets earlier this month, and portfolio manager Craig Evans was at the Barcelona conference this week.

Mr Evans welcomed Mr Mackenzie's concession that BHP had poorly timed the US shale acquisitions and the pace of spending on the division in its early years.

Mr Evans said the mood at the conference seemed to be supportive of BHP divesting the US shale assets. He said that "My sense is most people are on the same page with respect to shale in particular. Most of the questioning that I have heard of them is entirely about the shale component and that is what we are angling at, it's a matter of timing."

Mr Mackenzie's plan to more than double the number of rigs working the US shale over the next 14 months will ensure capital spending on the division rises above $US1 billion in fiscal 2018.

While some analysts viewed that increase as a sign BHP was not about to sell its best US shale acreage, Mr Evans said it could be designed to demonstrate the assets' potential and capacity to prospective acquirers.

Source : Australian Financial Review

voda 22 mei 2017 16:47

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Rio pushes ahead with $3.1bn iron ore expansion

Resources giant Rio Tinto on Wednesday announced that it was pushing ahead with a USD 3.1 billion iron ore expansion in the wake of the BHP Billiton joint venture collapse. Rio Tinto's share of the USD 3.1 billion is USD 2.1 billion and will be spent on expanding its iron ore infrastructure in the Pilbara to increase annual infrastructure capacity to 283 million tonnes during 2013.

Rio Tinto said in a statement that Further investments will be required to achieve production of 283 Mt/a, such as mine and housing expansions, and approval of these is anticipated within the next 12 months.

Rio Tinto has also approved a final feasibility study into increasing Pilbara production capacity by more than 50 percent to 333 Mt/a.

Since July 2010, Rio Tinto has announced US$6.0 billion - of which US$3.9 billion is Rio Tinto's share - of new investment in its Pilbara operations with the majority being spent on expansion projects.

Mr Sam Walsh said that "This is the largest mining project ever undertaken in Australia and highlights the quality of our growth options.”

Rio Tinto's proposed joint venture with BHP Billiton would have encompassed all current and future Western Australia iron ore assets and liabilities.

Owned equally by the miners, the iron ore joint venture was seen as creating synergies in excess of $10 billion.

But the miners called off their plans after being advised that the proposal as it stood would not be approved by the European Commission, Australian Competition and Consumer Commission, Japan Fair Trade Commission, Korea Fair Trade Commission or the German Federal Cartel Office.

The miners said in a joint statement earlier this week that "Some regulators have indicated they would require substantial remedies that would be unacceptable to both parties, including divestments, whereas others have indicated they would be likely to prohibit the transaction outright.”

Source : IOL.co.za

voda 24 mei 2017 15:52

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Rio Tinto to reap an extra USD 600 million in Coal and Allied sale

The Australian reported that according to independent expert Ernst & Young, Rio Tinto will secure up to US600 million above the value of its Hunter Valley coal assets in its USD 2.45 billion Coal and Allied sale to Yancoal Australia, even without including potential USD 650 million royalty. In the lead-up to shareholder meetings in London on June 27 and Sydney on June 29 to approve the deal, Rio has released an independent expert’s report it commissioned on the deal.

While Scott Morrison has approved the sale, it remains subject to some government approvals and, more importantly, Chinese-backed Yancoal obtaining the cash in an equity raising to make the purchase.

EY directors Michael French and Ken Pendergast valued the coal assets at between $US1.82bn and $US2.17bn, saying this made it a “fair and reasonable” deal for Rio shareholders.

The pair said there was little chance of a better offer emerging, after Rio conducted an extensive auction process that saw Yancoal outbid Rio’s Hunter Valley neighbour Glencore, which has long-targeted the mines.

To be fair to Chinese-controlled Yancoal, which still needs to convince equity funders it is not paying too much, EY referenced potential benefits Yancoal could extract beyond its valuations.

EY said that “Few other acquirers could extract the same value from Coal & Allied as Yancoal.”

The benefits are synergies from other Hunter Valley mines (which Glencore also has) and Yancoal’s previous tax losses, which are on its books as deferred tax assets and which could be realised faster with Coal & Allied’s profits.

Beyond the $US2.45bn sale price is a 2 per cent royalty on revenue from 2020 to 2030 if thermal coal prices are above $US75 a tonne, inflation adjusted. The royalty is capped at $US650m.

EY puts no official value on the royalty, which ensures Rio will get value if coal prices rise, because $US75 (inflation adjusted) remains higher than any present analyst forecasts.

While the report probably does not help Yancoal’s fundraising efforts, when deals on top-quality assets like this are reviewed in hindsight, they normally pass or fail on future commodity gains or falls, not the question of whether the price paid was 10-20 per cent too high.

Source : The Australian

voda 25 mei 2017 16:26

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BHP Eyes to restart Mt Keith Nickel

Believe it not BHP is looking to invest more in its underperforming West Australian nickel project at Mount Keith. At a time when the company’s under pressure from New York activist investor, Elliott Advisors to attack costs more robustly, the decision to examine extending the life of the Mount Keith mining operations will raise eyebrows because nickel has hardly been a sterling performer as a commodity in recent years - except in mid 2016 when action by the Philippines government saw a number of mines shut and production curtailed.

The Mt Keith operations are around 100 kilometres north of Leinster, in the WA goldfields. They are approaching the end of their economic life and to extend them into the 2030s BHP is now looking to develop the Yakabindie satellite deposit.

The company has applied to the WA’s Environmental Protection Authority (http://www.epa.wa.gov.au/proposals/mt-keith-satellite-project) to clear a 842 hectare for two open pits, Six Mile Well and Goliath.

The new mine will supplement and replace ore from Mt Keith, which will starting running down over the next five years.

There’s a logic in spending more on Mount Keith and at the Venus deposit nearer Kalgoorlie. BHP estimated several years ago it would cost more than AUD 1 billion to close down the Nickel West operations and clean up the various mining and processing sites.

That’s why money is being spent on the Venus project, and on the new mine at Mount Keith it is a cheaper option.

BHP plans to transport nickel ore from the two new pits 20 kilometres to the Mt Keith concentrator, delivering up to 40,000 tonnes a year of nickel concentrate over a 10-15 year mine life.

Nickel West hopes to start pit development in mid 2019, with first production expected in the early 2020s.

The new development will also keep Nickel West staff employed at Mt Keith, as well as creating new jobs in the development phase.

BHP has not yet costed the development but it is considered the lowest-cost option to maintain Nickel West’s production at existing rates into the future.

Nickel West employs about 2500 people across its Mt Keith and Leinster nickel mines, the Kambalda nickel concentrator, the Kalgoorlie nickel smelter and the Kwinana nickel refinery.

Source : Share Cafe.com

voda 25 mei 2017 16:32

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BHP seeking environmental approval for two new mines

Reuters reported that BHP Billiton is seeking environmental approval to dig two new mines to extend the life of its Nickel West unit in the state of Western Australia, which is facing a shortfall in ore supply.

Nickel West, which produces about 5% of the world's nickel metal, has lodged an application with the Environmental Protection Authority of Western Australia to clear 842 hectares (2,080 acres) for two open pit mines, according to the authority's website.

BHP has earmarked about USD 2 million per month during 2016 and 2017 for making improvements at Nickel West.

Nickel West gets much of the concentrated ore it uses to feed its 100,000 tonnes-per-year Kalgoorlie nickel smelter from its nearby Mount Keith mines and has also contracted with other miners operating in the region for additional feed.

BHP said in a statement that "At the current rate of production, the resource supporting Mount Keith will need to be sustained from other ore sources at some stage over the next five years.”

The company said that "Securing environmental approval for the proposed Mount Keith Satellite Project will help to ensure Nickel West has a strong future and will continue to make a significant economic contribution.”

Source : Reuters

voda 26 mei 2017 14:54

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Conscience clear over Simandou - Mr Sam Walsh

Australian Financial Review reported that Mr Sam Walsh was but 106 words into his latest coming-out speech when the former Rio Tinto chief executive boldly introduced his Brisbane audience to the Guinean elephant that has so darkened his executive retirement and non-executive future. In so speedily anticipating public interest in the purported scandal over the way Rio recovered ownership of the world's best undeveloped iron ore deposit, Walsh appeared to be offering us a lens through which to assess the scale of his disappointment over the way his former employer has treated him.

After announcing that his "conscience was clear" over the conduct of negotiations with the Guinean government over the fate of the two iron ore leases that were once to be Rio's Simandou iron ore project, Mr Walsh launched into a reinforcing account of the scale of the corporate rescue job that he engineered through his three years at the top of the Anglo-Australian mining house.

Mr Walsh's reward for his craft and application has, quite famously, been the deferral of up to AUD 20 million of long-tailed remuneration benefits that will be paid progressively as there is clarity over the joint and separate investigation by US, British and Australian regulators of payments the miner made to the consultant that helped recover the fateful mining rights in Guinea.

The consultant's name is Francois de Combret and Rio paid him USD10.5 million after successfully negotiating the recovery of two of four Simandou leases that had been reclaimed in 2008 by the government.

In August last year a leaked 2012 email conversation between Mr Walsh, his erstwhile boss Tom Albanese and the executive charged with solving the Guinean problem, Alan Davies, triggered internal concerns at Rio over the probity of that payment and the successful negotiation that triggered it.

On November 9, Rio announced that it had handed the results of an internal inquiry over the Simandou emails to regulatory authorities and that it had suspended two executives, Davies and chief legal officer Debra Valentine. Both had there contracts summarily terminated eight days later.

The public hammer blow to Mr Walsh's reputation arrived with the release of Rio's annual report in early April. It revealed a deed that installs a two-step delay on payment of about AUD 20 million worth of deferred shares that had been awarded under short and long-term incentive plans.

Progress being satisfactory to the Rio board, Walsh will get half of his entitlement on December 31 next year and the balance on December 31, 2020.

One of the miserable byproducts of the potential that there really is a scandal to be revealed here is that Mr Walsh felt compelled to introduce his chat to a Queensland University of Technology leadership forum with seven passionate paragraphs of self-defence.

Mr Walsh said that "There is something of an 'elephant in the room' that I feel compelled to address right up front. Some of you, no doubt, may be asking: 'How can this chap lecture us about leadership when he has been caught up in some investigation around mining rights, in Guinea, West Africa?."

He said that "On this, I would just say that notwithstanding some of the innuendo from our friends in the media the company has not made any accusation against me personally, nor do I expect that there will be. I operated ethically and legally at all times during my 25 years at Rio. In fact, the chairman of Rio at their London AGM on April 13 commented that there had been no admission of bribery or corruption by the company."

Mr Walsh said that "I am positive that truth will ultimately prevail and I have no fear of the truth at all, hence why I come here today, with my conscience clear, before "getting down to business."

And a big part of getting down involved an unusually frank assessment of the corporate basket case that he was unexpectedly invited to run in January 2013.

He described a business that lacked leadership, that had become "distracted by fads" and had mislaid its "true purpose."

He described a business financially stretched by "unprecedented impairments of AUD 23 billion over two years, on assets relatively recently acquired."

Source : Australian Financial Review

Bijlage:

voda 26 mei 2017 14:54

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Rio Tinto gives nod for Koodaideri study

The West reported that Rio Tinto has pushed the button on a AUD 30.9 million feasibility study to develop its Koodaideri iron ore project in the Pilbara. The mining giant needs the project to replace existing production as other deposits deplete. The Koodaideri project, which has an estimated capital cost of USD 2.2 billion, includes a 40mtpa dry crushing and screening plant, a 170km rail link to the company’s main line and associated infrastructure.

If approved, the development will require an expected 1600 construction jobs and a further 600 operational staff.

The feasibility study will focus on obtaining necessary consent and permits, increasing our understanding of the orebody and technical elements, and providing the data necessary to validate the project.

The final decision on the progression of the Koodaideri iron ore development will be made following the completion of the feasibility study and subsequent review by the Rio Tinto investment committee and board.

Source : The West

voda 26 mei 2017 14:56

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Rio Tinto launches new debt reduction programme

Rio Tinto will use its strong liquidity position to further reduce gross debt, launching a bond purchase plan for up to USD 2.5 billion. Under the plan, Rio Tinto has issued a redemption notice for approximately USD 1.72 billion of its 2019 and 2020 US dollar-denominated notes

Source : Strategic Research Institute

voda 29 mei 2017 16:35

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Vale new CEO eyes acquisition and diversification - Reports

Reuters quoted Mr Fabio Schvartsman new Chief Executive Officer of Vale SA as saying that the world's largest iron ore miner, intends to resume growth with acquisitions and diversification. Analyst reports from Bradesco BBI and Credit Suisse Securities issued on Friday said Mr Schvartsman means to avoid keeping "all eggs in one basket," referring to the firm's strong reliance on iron ore.

Analysts at Bradesco BBI said the company has yet to decide which operations to expand, pending further analysis. Its nickel business, for instance, does not yield high enough returns.

Mr Schvartsman, who took charge on Monday, set up working groups to measure the risks and returns of each of Vale's business units, according to the Credit Suisse report. A first assessment is expected in 60 days.

Source : Reuters

voda 31 mei 2017 16:54

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Australian state asks Rio, BHP for upfront cash

Reuters reported that cash strapped Western Australian state government will ask Rio Tinto and BHP to pay an upfront multi-billion dollar fee in exchange for cancelling an ongoing levy on their iron ore production. The revenue push by the mineral-rich state, which has run up more than AUD 30 billion ($23 billion) in debt following the end of a mining boom, sets the stage for talks with the miners, who are seen as unlikely to agree unless they win significant benefits.

Under the proposal, the two mining houses would pay as much as AUD 4 billion ($3 billion) in exchange for cancelling a A$0.25 a tonne ongoing levy on iron ore from their mines, some of which could be running for another 50 years.

State treasurer Mr Ben Wyatt, whose centre left Labor party won a state election in March, said the proposal was still in its early stages. He said that "It's an option that could only be close to crystalising if you had a range of things in play, one, obviously the engagement and agreement of the miners."

Rio Tinto has previously rejected the payout proposal, according to a company spokesman. A BHP spokesman declined to comment.

The mining companies are due to meet with the government this week, but a source close to one company said the proposal could set an unwelcome precedent.

The source, who was not authorised to speak publicly on the topic said that "The last thing Rio and BHP want is to become the state's go-to ATM every time there's a financial crisis."

Source : Reuters

voda 2 juni 2017 16:28

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Fire reported at BHPB's Mt Whaleback iron ore mine
Published on Fri, 02 Jun 2017

Australian Financial Review reported that a fire has broken out at BHP Billiton's mammoth Mt Whaleback iron ore operation in the Pilbara. It is understood the significant blaze began on Thursday afternoon in the plant which processes ore from the 50 year-old operation.

A BHP spokeswoman said all personnel had been accounted for and the company was working to ensure the site was safe. He said “Further details of the incident are still being established but an investigation into the incident will be run.”

The enormous 5.5 kilometer long open cut iron ore mine is the largest of its kind in the world and the oldest iron ore mine still operating in the Pilbara. It produced 43.1 million tonnes of iron ore in 2016 and forms part of BHP's broader Newman hub.

It remains unclear whether production has been suspended but any major disruption to iron ore supply from the Pilbara could provide a boost to the flagging

Source : Australian Financial Review

Bijlage:

voda 2 juni 2017 16:30

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BHP Billiton lifts force majeure at Escondida copper mine

BHP Billiton said on Thursday that it has lifted a declaration of force majeure at its Escondida copper mine in Chile, more than a month after a costly strike came to an end. BHP’s chief commercial officer, Arnoud Balhuizen, told reporters "I’m pleased to say that our copper force majeure is lifted as of today. We are back to normal.”

BHP declared force majeure at the mine in early February at the start of a labour strike that lasted 43 days and cost the world’s biggest mining house about USD 1 billion.

Source : Bloomberg

voda 2 juni 2017 16:32

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Rio Tinto Koodaideri iron ore study gets nod

The West reported that a feasibility study for a new Rio Tinto ore development in the Pilbara has been approved. As per report an investment of AUD 30.9 million has been approved by the mining giant to complete a feasibility study for the development of its Koodaideri iron ore deposit, 110km north west of Newman.

The project, which is needed to replace existing productions as other deposits deplete, is predicted to produce up to 70 million tonnes a year of ore and have an expected operational mine life of about 30 years.

The study will examine the Koodaideri option as Rio Tinto’s next potential major mining development in the Pilbara and it is intended to replace existing production.

Chief executive Mr Chris Salisbury said the money would be spent with local businesses and suppliers as well as firms outside the State. He said that “The Koodaideri development will require an expected 1600 construction jobs and a further 600 operational staff if approved. We remain firmly focused on our value over volume strategy and maximizing returns through enhanced productivity.”

He said that “We are examining the Koodaideri project as an option to help us maintain our low-cost competitive position and assist in maintaining the Pilbara Blend product quality.”

The feasibility study will focus on obtaining necessary consent and permits, increasing the understanding of technical elements, and providing the data necessary to validate the project.

The final decision on the progression of the Koodaideri iron ore development will be made following the completion of the feasibility study and review by the Rio Tinto investment committee and board.

If the new location is successful, it will cost USD 2.2 billion and is projected to consist of open pits, a 40mtpa dry crushing and screening plant and supporting infrastructure, including a 167km railway.

Source : The West

voda 5 juni 2017 16:11

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BHP restarts Mt Whaleback mine after fire

Reuters reported that iron ore mining restarted on Friday at Australia's Mt Whaleback mine following a fire on last Thursday. A BHP spokeswoman said that "Mining at Mt Whaleback resumed at full capacity this morning and processing has resumed in areas unaffected by the incident."

She added that "The affected area of the processing plant is currently being assessed for damage and recovery planning."

Source : Reuters

voda 6 juni 2017 16:41

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Global glut in iron ore will not be helped by investment by Rio Tinto

Mining reported that the global glut in iron ore will not be helped by an investment by Rio Tinto to develop its Koodaideri iron ore deposit in Western Australia. The British and Australian mega miner said that it has committed to spend USD 30.9 million on a feasibility study for the project. The upcoming feasibility report follows a prefeasibility study done in November 2016, the contents of which included a 40 million tonnes per annum dry crushing and screening non-process infrastructure, product stockyards, rail loop and load-out, and a 170 kilometer rail link to the main line.

The USD 2.2 billion project, which Rio said that is intended to replace existing production, would begin construction in 2019. The new open-pit mine, or collection of pits, is expected to produce up to 70 million tonnes a year of ore and have a mine life of about 30 years.

Rio Tinto Iron Ore chief executive Chris Salisbury said in a statement that “We remain firmly focused on our value over volume strategy and maximizing returns through enhanced productivity. We are examining the Koodaideri project as an option to help us maintain our low cost competitive position and assist in maintaining the Pilbara Blend product quality.”

The move comes as the iron ore price moves another leg down.

Among the factors in causing the price to slip are a weak Chinese economy, which consumers three quarter’s of the world’s iron ore; record-high stockpiles in China; the increasing use of scrap steel by Chinese steelmakers; and the continuing over-supply of iron ore. The global glut has worsened in recent months due to fresh supply coming from recently opened mines, such as Roy Hill in Australia, Anglo American’s Minas Rio and Vale’s S11D in Brazil.

The worsening market situation has prompted analysts, such as BMI Research to revise their prices outlook down. In May, the research arm of Fitch Group said it expected seaborne iron ore to drop to USD 65 a tonne this year (down from a previous forecast price of USD 70), and USD 50 in 2018, to end up touching a low of USD 44 by 2021.

Source : Mining

Bijlage:

voda 8 juni 2017 16:57

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Rio Tinto closes off debt reduction program after investors flock to cash in

City Am reported that Rio Tinto has repurchased USD 781 million (GBP 605 million) of its bonds ahead of time as part of a wider USD 2.5 billion debt reduction program.

The world's second largest miner revealed plans to use cash reserves to reduce its debt burden on 22 May. The first tranche was due to be extinguished by 19 June.

Rio Tinto said that the debt buyback of the tranche on offer was oversubscribed.

In May, Rio Tinto also issued a redemption notice for a further USD 1.7 billion of its 2019 and 2020 bonds. These will be redeemed on 21 June 2017.

Source : City Am

voda 9 juni 2017 16:42

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BHP Billiton and Rio Tinto eye ghost controlled ships and trains

Biz News reported that talk about Fourth Industrial Revolution Technologies (4IR) and the rise of automation has existed in economic circles for some time now but it’s clear that it will soon be actioned. Robot controlled ‘ghost’ ships and driverless trains are part of the mix for mining giants BHP Billiton and Rio Tinto when it comes to driving down future costs.

Bloomberg reported that BHP which charters about 1,500 voyages a year to transport its iron ore, copper and coal is eyeing crew-less ships and possible annual savings of at least USD 86 billion.

Bloomberg also stated that Rio Tinto, which already uses a fleet of about 76 driverless trucks, will deploy autonomous trains in Western Australia by the end of next year.

Source : Biz News

voda 9 juni 2017 22:41

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Glencore biedt op kolenonderdeel Rio Tinto

Gepubliceerd op 9 jun 2017 om 20:04 | Views: 310

Glencore 17:37
295,00 +6,10 (+2,11%)

Rio Tinto 17:35
3.264,50 +40,50 (+1,26%)

LONDEN (AFN) - Glencore heeft een bod gedaan van 2,6 miljard dollar op kolenonderdeel Coal & Allied Industries van branchegenoot Rio Tinto. Dat maakte het in Londen genoteerde mijnbouwbedrijf vrijdag bekend.

Glencore wil de overname betalen met cash en prijsgebonden royalty's. Of het tot een deal komt is nog niet duidelijk. Onder meer regelgevende instanties zouden daarvoor akkoord moeten geven.

Eerder maakte het Chinese Yancoal al zijn interesse in het kolenonderdeel kenbaar. Het bod van Glencore zou 100 miljoen dollar boven de prijs liggen van de Chinezen.

voda 12 juni 2017 17:20

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Glencore makes counterbid for Rio Tinto’s Australian coal assets

The Financial Times reported that Glencore has gate crashed a planned Chinese takeover of Rio Tinto’s Australian coal business, tabling a AUD 2.55 billion counter-offer that pitches Ivan Glasenberg, its dealmaking chief executive, into a new bid battle. The move shows the Swiss-based miner and commodity trader, which was almost brought to its knees just two years ago by the commodity downturn, has lost none of its appetite for acquisitions after paying down debt and deleveraging its balance sheet.

At the end of May, Glencore’s said its agricultural arm had approached Bunge, the US grains company, about a “possible consensual business combination” that could create one of the world’s largest agricultural trading merchants if the sides can reach an agreement.

The AUD 2.55 billion bid for Rio Tinto’s Coal & Allied is AUD 100 million higher than has been offered by Yancoal, an Australian subsidiary of Yanzhou Coal that has yet to raise the financing for its bid and carries a significant debt burden.

Glencore said it would also buy Mitsubishi Corp’s stakes in the mines for AUD 920 million.

Rio Tinto acknowledged that it had received the proposal from Glencore to acquire its Australian subsidiary and said the board and management would give it appropriate consideration before responding.

If Glencore’s offer is accepted it would see the London-listed company take control of a series of mines that produce high-quality thermal coal, most of which is sold under contract to power stations in Japan.

Yancoal, which has secured regulatory approval for its bid in Australia, has the right to match Glencore’s counter-offer under the terms of the original sale struck in January.

Source : The Financial Times

voda 15 juni 2017 16:57

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Rio Tinto CEO sees Canada as less business-friendly than in past

BNN reported that chief executive of Anglo-Australian miner Rio Tinto, which owns iron ore, diamond and aluminum mines and processing facilities in Canada, was becoming tougher to do business in the resource-rich country.

Mr Jean-Sebastien Jacques CEO of Rio said that "You know mining well and you understand its value, but to be very frank it has been getting harder to do business here over the years - from employee relations to tax to managing land access.”

Calling it the "biggest mining and metals company in Canada," Mr Jacques said Rio Tinto had paid USD 3.9 billion in Canadian taxes since 2011 while investing more than USD 8 billion.

Rio Tinto employs around 15,000 people in Canada at more than 35 sites, including the Iron Ore Company of Canada in Quebec and Newfoundland and Labrador, the Diavik diamond mine in the Northwest Territories and an aluminum smelter in British Columbia.

A Quebec court ruled in 2014 that a USD 900 million lawsuit by two Canadian aboriginal communities against a subsidiary of Rio Tinto can proceed. The communities in eastern Canada have said that more than 50 years of iron ore mining in the region has disrupted their traditional way of life.

Mr Jacques said that investment and growth drove wealth generation, which in turn created higher living standards. Fair trade was also key. He said that "The danger in the current climate is that we focus on wealth distribution and not wealth creation. Both are absolutely critical, but without growth we will have no wealth created to fairly distribute."

Source : BNN

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