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Glencore koopt kolenonderdelen van Rio Tinto

Gepubliceerd op 20 mrt 2018 om 09:54 | Views: 618

Glencore 14:01
371,90 +2,65 (+0,72%)

Rio Tinto 14:00
3.654,00 +42,50 (+1,18%)

BAAR (AFN) - Het mijnbouw- en grondstoffenconcern Glencore neemt meerderheidsbelangen in de Australische kolenmijn Hail Creek en kolenopslag Valeria over van branchegenoot Rio Tinto. Dat maakte het Zwitserse bedrijf dinsdag bekend.

Met de deal krijgt Glencore een belang van 82 procent in Hail Creek, een van de grootste kolenreserves ter wereld. De dichtbijgelegen Valeria-kolenopslag komt voor 71 procent in bezit van de Zwitsers. Samen kosten de nieuwe bezittingen 1,7 miljard dollar (1,4 miljard euro).

Het mijnbouwbedrijf met een beursnotering in Londen verwacht dat de overname in de tweede helft van dit jaar wordt afgerond. Voor die tijd moeten de bedrijven akkoord krijgen van toezichthouders.

Vorig jaar probeerde Glencore al een ander Australisch kolenonderdeel van Rio Tinto te kopen. Dat ging toen naar het Chinese bedrijf Yancoal.

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Rio Tinto launches new debt reduction programme

Rio Tinto will use some of its surplus liquidity to further reduce gross debt, launching a bond purchase and redemption plan for up to USD 2.25 billion. Under the plan, Rio Tinto has issued redemption notices for approximately USD 1.4 billion of four series of its US dollar-denominated notes maturing in 2021 and 2022 and commenced invitations to holders outside the United States to sell up to approximately USD 850 million equivalent of two series of its Euro-denominated notes maturing in 2020 and 2024.

Today's announcement is part of the Rio Tinto Group's ongoing capital management plan and follows the successful completion of a series of USD 10 billion US dollar-denominated note redemptions and repurchases in 2016 and 2017.

1. Redemption of Bonds

Rio Tinto today issued notices of redemption for all of its 4.125 per cent Notes due May 2021 and 3.750 per cent Notes due September 2021 issued by Rio Tinto Finance Limited. Rio Tinto today has also issued notices of redemption for all of its 3.500 % Notes due March 2022 and 2.875 % Notes due August 2022 issued by Rio Tinto Finance plc. All of these notes are guaranteed by Rio Tinto plc and Rio Tinto Limited. Approximately USD 1.4 billion in aggregate principal amount is outstanding across the series of notes to be redeemed. The redemption date will be 19 April 2018. For additional information, noteholders may call the trustee and paying agent, The Bank of New York Mellon, at +1-212-815-5811.

2. Cash Tender Offer

Rio Tinto Finance plc is making invitations to holders outside the United States in respect of its EUR 750,000,000 2.000 %. Instruments due 11 May 2020 and its EUR 500,000,000 2.875 %. Instruments due 11 December 2024 (together, the “Notes”) both guaranteed by Rio Tinto plc and Rio Tinto Limited, to sell up to approximately USD 850 million equivalent in aggregate principal amount of the Notes. The Tender Offer is not being made, and will not be made, directly or indirectly, in or into, or by use of the mail of, or by any means or instrumentality of interstate or foreign commerce of or of any facilities of a national securities exchange of, the United States. Any purported tender of Notes in the Tender Offer made by a person located or resident in the United States will be invalid and will not be accepted.

This announcement does not constitute a solicitation of an offer to tender any Notes. Note holders outside the United States which are eligible to participate in the Tender Offer are advised to read carefully the Tender Offer Memorandum for full details of and information on the procedures for participating in the Tender Offers.

Source : Strategic Research Institute
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Rio Tinto sees 2019 iron ore market to stay balanced

Reuters reported that Rio Tinto expects the global iron ore market to stay balanced through 2019 despite a likely moderation in steel demand growth in China, the world’s biggest steel consumer. Mr Chris Salisbury chief executive iron ore at Rio Tinto, told Reuters in an interview that “I think the iron ore market is pretty well balanced.We don’t see remarkable change in supply and demand balance through 2019.”

Rio, the world’s second largest iron ore miner, expects solid demand for the steel-making ingredient, especially for its high-grade iron ore as Chinese steelmakers increasingly focus on higher productivity and lower emissions.

Higher quality ore produces more steel for each tonne that is processed, and can reduce emissions as less coke is used in production.

Mr Salisbury said that “We will see a slowdown in China overall as the economy will moderate through 2019.” But he noted the miner will continue to increase output of higher grade ore to meet increasing demand in China.

A rise in China’s stocks of rebar, a construction steel product, to nearly five-year highs reflected a rebound from extremely low inventory levels in 2017, he said.

Mr Salisbury said that “We’ve gone through a construction slowdown during the winter period, but steel production was still quite strong during the period and what we are seeing is a little bit of imbalance between steel production and construction offtake.” Mr Salisbury added that “It’s not catastrophic.”

Rio, which supplies about 330 million tonnes of iron ore a year to mainly Asian customers, plans to spend USD 1 billion a year over the next three years for maintenance of its iron ore mines.

It will also invest another USD 3 billion in total on new iron ore mines, including the Koodaideri mine in the Pilbara region in Australia, Salisbury said.

Rio was on track to finish a feasibility study this year for the planned “intelligent” Koodaideri mine, which will fully incorporate technologies such as robotics and driverless trains and trucks on a single site, he said.

Salisbury downplayed the impact on the steel market of US tariffs and the potential for retaliation by other countries.

Source : Reuters
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Rio Tinto agrees sale of Kestrel mine to EMR and Adaro

Rio Tinto has entered into a binding agreement with a consortium comprising private equity manager EMR Capital (EMR) and PT Adaro Energy Tbk (Adaro), an Indonesian listed coal company, for the sale of its entire 80 per cent interest in the Kestrel underground coal mine in Queensland, Australia, for $2.25 billion.

Rio Tinto chief executive J-S Jacques said “The sale of Kestrel, together with the announced divestments of Hail Creek and our undeveloped coal projects, delivers exceptional value to our shareholders and will leave our portfolio stronger and more focused on delivering the highest returns through targeted allocation of capital. I would like to thank the many people at Rio Tinto and the communities where we operate, whose hard work and commitment has contributed to the success of the coal business over many years. I wish them continued success under new ownership.”

The transaction is subject to customary conditions precedent being satisfied, including the receipt of regulatory approvals from Australia’s Foreign Investment Review Board and the Queensland Government.

Subject to all regulatory approvals and other conditions precedent being satisfied, completion is expected to occur in the second half of 2018. It will bring the total amount achieved from the recent divestments of Rio Tinto’s Queensland coal assets to $4.15 billion, with the funds to be used for general corporate purposes.

The Kestrel mine is located in the Bowen Basin, 40km north-east of Emerald in central Queensland, Australia. Kestrel employs longwall mining to produce high quality coking and thermal coal products for export markets.

In 2017 the Kestrel mine produced 5.1 million tonnes of saleable coal, comprising 4.25 million tonnes of hard coking coal and 0.84 million tonnes of thermal coal. At 31 December 2017, Rio Tinto reported marketable reserves for Kestrel of 146 million tonnes and mineral resources of 241 million tonnes.

In 2017 Kestrel generated EBITDA of $341 million and profit before tax of $258 million, being Rio Tinto’s attributable share. Rio Tinto’s share of gross assets at 31 December 2017 was $1,441 million.

Source : Strategic Research Institute
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Billington profits rise despite steel price hike in two years

Construction Enquirer reported that steelwork contractor Billington has warned that rising raw material costs are threatening to undermine the competitiveness of steelwork construction with concrete. Mr Mark Smith Chief Executive Officer said that outlook for Billington remains good despite pressure on selling prices and input costs. Mr Smith said that “Consequently, this presents a challenge to the wider structural steel market to remain competitive with alternative forms of construction.”

He added that Billington continued to work on ways to mitigate raw material price escalation and long term volatility.

Mr Smith said that “However, more recently, steel prices appear to have stabilised and the group hopes this stability will continue.”

Despite market pressures on both selling prices and input costs, margins were maintained with a 16% rise in revenue to a record GBP 73 million delivering pre-tax profits up 16% to GBP 4.4 million.

Mr Smith said that “We are continuing to see the success of the expansion strategy at the Shafton facility, now two years in to the five year adaptation program initiated in 2015. This has allowed the group to increase its capacity and expand its processing and fabrication production to over 30,000 tonnes of steel this year. UK structural steel demand is forecast to remain stable throughout 2018 and 2019 and the board will continue to closely monitor further developments in the industry in the year ahead.”

He added that “The expansion strategy at the Shafton facility is continuing and Billington is well positioned to adapt to changes in the wider industry, which combined with our dedication to client relationships, should help us in achieving another solid performance in the current financial year.”

Source : Construction Enquirer
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BHP parts ways with World Coal Association

BHP has confirmed that it will leave the World Coal Council because of differing views on how climate change concerns can be managed. The miner announced it would end its WCA membership following a review, which found that there would be little benefit for it to stay with the London-based organisation. BHP made a preliminary decision to leave the WCA last December. BHP stated that “In light of the material difference identified by the review and the narrow range of activities of benefit to BHP from membership, BHP has reached a final view that it will cease membership of the WCA.”

The WCA responded that it was disappointed by BHP’s decision to leave, based on one claimed material policy difference, given it was involved in developing this position on energy and climate change.

Mr Benjamin Sporton chief executive of WCA said “The WCA’s position has always been clear; we support a balanced approach that integrates climate and energy policy that works towards a low emission future. We believe a balanced approach should not exclude high efficiency, low emissions power generation and carbon capture and storage. WCA had compared its position on energy and climate policies with those set out in BHP’s review. The Association believes there are no material differences between the two. We will continue our important work representing many of the world’s largest coal producers and allied companies and organisations, who are committed to working with us on a low emission future for coal.”

BHP will, however, continue to work with the Minerals Council of Australia to advocate policies that are aligned between the two parties. It will also remain a member of the United States Chamber of Commerce despite the two parties have conflicting stances on energy and climate change.

Source : Australian Mining
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Rio Tinto tax bill in Australia up by 30pct in 2017 due to higher iron ore prices

News.com reported that Rio Tinto's Australian tax bill increased by 30% to AUD 4.9 billion (USD 3.8 billion) last year, helped by higher iron ore prices. The global mining giant said that 75% of its worldwide AUD 6.6 billion outlay on taxes and royalties was paid in Australia, with the largest payments being AUD 2.52 billion to the federal government and AUD 1.83 billion to Western Australia.

Rio's next largest tax bills were paid in Canada and then Chile, at USD 387 million (AUD 542 million) and USD 318 million (AUD 445 million), respectively.

In the 12 months to December 31, 2017, the miner's full year net profit jumped 90 % to USD 8.76 billion (AUD 11.1 billion), as stronger prices drove revenue up 64 % to USD 13.88 billion (USD 17.7 billion).

The average sales price for Rio's ore jumped 20 % over 2017 to USD 64.80 (AUD 90.72), encouraged by demand from Chinese steelmakers.

Stripping out royalties, the world's second largest iron ore producer paid AUD 2.44 billion in corporate tax a figure well short of the AUD 3.9 billion that Commonwealth Bank claimed made it the country's largest corporate tax payer in 2017.

Rio Tinto's 2016 global tax bill was USD 4 billion (AUD 5.3 billion) including the royalties.

In 2017, Rio's group effective corporate income tax rate on underlying earnings was 28.2 %, the rate in Australia over the same period was 30.5 %, a slight lift from the 29.6 % of the previous year.

Rio Tinto has been a vocal supporter of the federal government's push to cut corporate tax, with chief financial officer Mr Chris Lynch welcoming the recent cut in the US corporate tax rate from 35 % to 21 %.

Mr Lynch said in the company's annual Taxes Paid report, released that "Investment capital is internationally mobile and a competitive tax system is important to encourage the development of new projects."

Alongside its rival BHP Billiton, the miner has been under investigation by the Australian Taxation Office over the use of its Singapore sales centre to allegedly reduce local tax payments.

Source : News.com
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Rio Tinto reviews arrangements with Rusal

Following the announcement by the United States Treasury Department on 6 April, 2018, that it was implementing sanctions on various Russian individuals and companies, Rio Tinto has reviewed arrangements it has with impacted entities. The arrangements include Rusal’s 20 per cent interest in Queensland Alumina Limited in Australia, including Rusal’s associated supply and offtake arrangements, bauxite sales to Rusal’s refinery in Ireland and offtake contracts for alumina that are used at Rio Tinto’s smelters, mainly in France and Iceland.

As a result of the imposition of these sanctions, Rio Tinto is in the process of declaring force majeure on certain contracts and is working with its customers to minimise any disruption in supplies.

Rio Tinto is fully committed to complying with the US sanctions.

Source : Strategic Research Institute
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Rio Tinto’s Iron Ore Company of Canada update

IOC pellet production of 2.7 million tonnes (Rio Tinto share 1.6 million tonnes) was seven per cent higher than the first quarter of 2017, with strong pellet demand continuing to be strong and product mix being optimised to meet customer demand. Concentrate production for sale of 1.4 million tonnes (Rio Tinto share 0.8 million tonnes) was 28 per cent lower than the same period in 2017, mainly attributable to increased ore hardness and an unplanned shutdown of the Parallel Ore Delivery System. As a result, total sales in the first quarter of 4.0 million tonnes (Rio Tinto share 2.3 million tonnes), were 11 per cent lower than the corresponding period of 2017.

Collective bargaining negotiations at IOC’s Labrador City operation were suspended on 27 March 2018 without an agreement being reached. The local union workforce voted to strike and operations were suspended from that date. Progress has been made to reach a new labour agreement, and a vote is imminent. The priority remains to reach a mutually beneficial agreement with employees and a safe return to operations.

Source : Strategic Research Institute
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Rio Tinto Q1 bauxite production update

Rio Tinto announced that bauxite production of 12.7 million tonnes was 12% higher than the first quarter of 2017, primarily driven by operational improvements. Gove production was notably 31 % higher due to the debottlenecking of the materials handling system, whilst stronger production was also achieved at Weipa and Sangaredi. Production was lower than the fourth quarter of 2017 due to seasonal wet weather.

8.2 million tonnes was shipped to third parties in the first quarter of 2018, 19 per cent higher than the first quarter of 2017 due to firm demand and higher port availability.

Amrun
The Amrun project is advancing to plan and has completed the installation of beneficiation modules and the process water dam. The project remains on schedule for first shipment in the first half of 2019.

Alumina
Alumina production for the quarter was three per cent lower than the corresponding period in 2017 due primarily to maintenance at QAL.

Aluminium
Quarterly aluminium production was five per cent lower than the corresponding period last year. This was due largely to an ongoing lock-out at the Becancour smelter, which began on 11 January 2018, as well as a power incident at the Dunkerque smelter which occurred on 6 February 2018.

On 10 January 2018, Rio Tinto announced it had received a binding offer for the sale of the Aluminium Dunkerque smelter in France for USD 500 million, subject to final adjustments. The sale is expected to complete in the second quarter of 2018, subject to satisfactory consultations with key stakeholders and completion of other conditions.

On 26 February 2018, Rio Tinto announced it had received a binding offer of USD 345 million for the sale of its ISAL smelter in Iceland, its 53.3 % share in the Aluchemie anode plant in the Netherlands and its 50 % share in the Aluminium fluoride plant in Sweden. The sale is expected to complete in the second quarter of 2018, subject to satisfactory consultations with key stakeholders and completion of other conditions.

Following the announcement by the United States Treasury Department on 6 April, 2018, that it was implementing sanctions on various Russian individuals and companies, Rio Tinto announced on 13 April 2018 that it has reviewed arrangements it has with impacted entities. The arrangements include Rusal’s 20 % interest in Queensland Alumina Limited in Australia, including Rusal’s associated supply and offtake arrangements, bauxite sales to Rusal’s refinery in Ireland and offtake contracts for alumina that are used at Rio Tinto’s smelters, mainly in France and Iceland.

As a result of the imposition of these sanctions, Rio Tinto is in the process of declaring force majeure on certain contracts and is working with its customers to minimise any disruption in supplies.

2018 guidance
Rio Tinto’s share of production in 2018 is expected to be between 49 and 51 million tonnes of bauxite and 8.0 to 8.2 million tonnes of alumina. Aluminium guidance of 3.5 to 3.7 million tonnes will be adjusted following completion of the sale of the Aluminium Dunkerque and ISAL smelters. Adjustments may also be made as a consequence of the US sanctions.

Source : Strategic Research Institute
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Rio Tinto Q1 copper production update

Rio Tinto announced that its mined copper production in the first quarter of 2018 was 20 % lower than the first quarter of 2017 due primarily to temporarily lower head grades, although refined copper production was 19 % higher due to the draw down in concentrate inventories that were built up during the smelter shutdown following the fatality in October 2017.

Rio Tinto Kennecott tolls third party concentrate to optimise smelter utilisation, with 41 thousand tonnes of concentrate received in the first quarter of 2018. Tolled copper concentrate is excluded from reported production figures.

The pushback of the south wall progressed during the quarter. It will extend the life of mine and remains on track for completion in 2020.

Escondida
Mined copper production at Escondida in the first quarter of 2018 was significantly higher than the first quarter of 2017, due to the labour union strike that impacted production in the first half of last year. This second consecutive quarter of strong production reflects the operational capacity following commissioning and ramp up of the Los Colorados concentrator in the second half of 2017.

Oyu Tolgoi
Mined copper production from the open pit in the first quarter of 2018 was two per cent higher than the corresponding period of 2017, but 14 per cent lower than the previous quarter due to a planned plant shutdown in January 2018.

Due to protests by coal transporters that obstructed the main access road at the Ganquimaodu Border Zone, Oyu Tolgoi declared force majeure in connection with customer contracts for concentrate between 17 January 2018 and 1 March 2018. Safe and normal operations, including underground development, were maintained during the force majeure period, and there was no production impact.

Oyu Tolgoi Underground Project
New contractors continue to mobilise with the total project workforce at over 6,700 at the end of March, of which 89 % were Mongolian. Lateral development is tracking on plan, and sinking of shafts two and five is complete. Eight accommodation buildings in the Oyut II camp are now complete and occupancy of these buildings has begun. Construction of the first drawbell is still expected in mid-2020.

Grasberg
Through a joint venture agreement with Freeport-McMoRan Inc, Rio Tinto is entitled to a 40 % share of production above an agreed threshold until the end of 2021 and 40 % of all production thereafter. Rio Tinto’s full participation has been delayed due to the application of force majeure

provisions in the joint venture agreement. The first full year in which Rio Tinto will participate to the full extent of 40 % of production is now expected to be 2023.

In February 2018, PF Freeport Indonesia received an extension of its export permit to February 2019. PT-FI continues to engage with the Indonesian Government in relation to the basis upon which operations at Grasberg will continue beyond 2021 with regard to the rights conferred by its Contract of Work.

Source : Strategic Research Institute
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Rio Tinto flags changes to 2018 aluminium output after US sanctions

Euro News reported that global miner Rio Tinto flagged possible changes to its 2018 aluminium output following US sanctions on its Russian partner Rusal earlier this month. Rio, which reported a 5% rise in first-quarter iron ore shipments in the March quarter, has declared forecast majeure on some customer contracts after US sanctions on UC Rusal, the world’s second biggest aluminium producer. Rio kept its forecast for aluminium production steady in its first quarter production report. It said that “Adjustments may be made as a consequence of the US sanctions.”

Rio has said it is reviewing Rusal’s 20 % stake in its Queensland Alumina refinery, Rusal’s supply and offtake arrangements, bauxite sales to Rusal’s refinery in Ireland and offtake contracts for alumina.

The miner could still be a big beneficiary of the US sanctions on Rusal as it is a major supplier of aluminium to the United States from its Canadian smelters, while aluminium prices have surged by more than 20 % since the sanctions were announced.

Rio said its 2018 aluminium output forecast of 3.5 to 3.7 million tonnes would also face adjustments following the sale of its Icelandic and French aluminium smelters.

In iron ore, the world’s second-biggest supplier of the steel-making ingredient, shipped 80.3 million tonnes in the quarter ended March 31, up from 76.7 million tonnes last year.

Rio said March shipments rose due to fewer weather disruptions and productivity improvements, although shipments fell 11 percent on the previous quarter.

Mr Jean-Sebastien Jacques Chief Executive of Rio Tinto said in a statement that “We delivered a solid operational performance across most commodities in the first quarter of 2018.”

Mr Jacques said that “Our world-class Pilbara iron ore assets continue to demonstrate flexibility and the benefits of increased productivity, and production at our bauxite and copper assets was also higher.”

The miner maintained its iron ore production guidance for this year of 330 million to 340 million tonnes, and kepts its copper guidance steady.

For the March quarter, aluminium production fell 5 % from a year ago to 846,000 tonnes, while copper output jumped 65 % to 139,300 tonnes.

The global miner exited the coal mining business in the March quarter with the sale of its stake in the Kestrel mine in Central Queensland.

Source : Euro News
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BHPB Q1 iron ore production update

Rio Tinto announced that its total iron ore production for the nine months ended March 2018 increased by two % to a record 175 million tonne, or 203 million tonne on a 100 % basis. Guidance for the 2018 financial year has been reduced to between 236 and 238 million tonne, or between 272 and 274 million tonne on a 100 % basis reflecting car dumper reliability issues as we push to record levels of production.

At WAIO, increased production was supported by record production at Jimblebar and Mining Area C, and improved rail reliability. This was partially offset by the impact of lower opening stockpile levels following the Mt Whaleback fire in June 2017, planned maintenance and port debottlenecking activities in the first half of the financial year. Volumes decreased by six % from the December 2017 quarter reflecting impacts from Cyclone Joyce and unplanned car dumper maintenance, despite improved rail reliability and an increase in peak performance in the number of rakes per day. With the system constraint now at the port, a program of work is underway to improve car dumper availability and performance. On 16 February 2018, BHP received regulatory approval to increase capacity at its Port Hedland operations to 290 million tonne per annum (100 % basis) and expects to reach this run rate by the end of the 2019 financial year.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.

Source : Strategic Research Institute
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BHP operational review for 9 months

Mr Andrew Mackenzie Chief Executive Officer, said that “BHP remains on track to achieve six per cent volume growth for the 2018 financial year. Strong performance in copper was underpinned by the Los Colorados Extension project at Escondida and higher utilisation rates at Pampa Norte. This more than offset the slower than expected ramp-up of Olympic Dam during the quarter following planned smelter maintenance. Incremental improvements across our operations from debottlenecking and increased throughput delivered record production in iron ore. Our exit from Onshore US is progressing to plan with bids expected by June 2018.”

1. Full year production guidance remains unchanged for Petroleum, Metallurgical Coal and Energy Coal.

2. Total Copper production guidance narrowed to between 1,700 and 1,785 kt, however guidance for Olympic Dam reduced to approximately 135 kt following a slower than planned ramp-up after the major smelter maintenance campaign.

3. Iron Ore production guidance reduced to between 272 and 274 Mt (100% basis) reflecting car dumper reliability issues.

4. Group copper equivalent production is expected to increase by 6% in the 2018 financial year.

5. The exit process for Onshore US is progressing to plan, with bids expected by June 2018 and transactions potentially being announced in the first half of the 2019 financial year.

6. In Petroleum, we have increased our footprint in the northern extension of the Wildling prospect in the US Gulf of Mexico through the acquisition of 33.33% interest in the Samurai prospect. We have also secured an option to purchase an additional 10% interest in the Scarborough development.

7. All major projects under development are tracking to plan.

Source : Strategic Research Institute
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BHPB metallurgical coal production update for 9 months

Metallurgical coal production for the nine months ended March 2018 decreased by two per cent to 31 million tonne. Guidance for the 2018 financial year remains unchanged at between 41 and 43 million tonne.

At Queensland Coal, production was lower due to challenging roof conditions at Broadmeadow and geotechnical issues triggered by wet weather at Blackwater. This was partially offset by record production at four mines, underpinned by improved stripping and truck performance, higher wash-plant throughput from debottlenecking activities and utilisation of latent dragline capacity at Caval Ridge. Mining operations at Blackwater stabilised in the current quarter and are expected to return to full capacity during the June 2018 quarter as inventory levels are rebuilt. At Broadmeadow, progression through the fault zone is expected to be completed during the June 2018 quarter. In March 2018, we successfully reached agreement with employees on the BMA Enterprise Agreement 2018(2) and it is currently with the Fair Work Commission for approval. The Caval Ridge Southern Circuit project is progressing according to plan, with production expected to ramp-up early in the 2019 financial year.

Energy coal
Energy coal production for the nine months ended March 2018 decreased by four per cent to 20 million tonne. Guidance for the 2018 financial year remains unchanged at 29 to 30 million tonne.

New South Wales Energy Coal production was down one % as higher truck utilisation and additional bypass coal were offset by higher average strip ratios compared to the corresponding period. Volumes decreased by 16 % from the December 2017 quarter following unfavourable weather impacts and then a significant build in raw coal inventory late in the quarter. This inventory is expected to support an uplift in volumes in the June 2018 quarter.

Cerrejón production declined seven per cent, due to unfavourable weather impacts on mine sequencing, equipment availability and higher strip ratio areas being mined.

Source : Strategic Research Institute
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BHPB 9 months copper production update

BHPB announced that its total copper production for the nine months ended March 2018 increased by 37 % to 1,290 kilo tonne. Guidance for the 2018 financial year narrowed to between 1,700 and 1,785 kilo tonne from between 1,655 and 1,790 kilo tonne.

Escondida copper production for the nine months ended March 2018 increased by 64 % to 897 kilo tonne, supported by the start-up of the Los Colorados Extension project on 10 September 2017. Production guidance for the 2018 financial year has been narrowed to between 1,180 and 1,230 kilo tonne from between 1,130 and 1,230 kilo tonne. The Escondida Water Supply Extension was sanctioned by all joint venture partners in March 2018 and it comprises the expansion of the Escondida Water Supply conveyance system and desalination plant. EWSE is in execution phase and will deliver first water production in the 2020 financial year. EWSE will continue Escondida’s sustainable reduction of groundwater usage and maximise concentrator throughput beyond the 2020 financial year. The existing agreement with Union N°1 will expire on 1 August 2018 and early negotiations started in April 2018.

Pampa Norte copper production increased by six per cent to 193 kilo tonne due to record production at Spence mainly driven by higher utilisation of the solvent extraction and electrowinning plants. Pampa Norte production guidance for the 2018 financial year remains unchanged and is expected to be higher than the prior year. During the period, we successfully completed the accelerated negotiation with Spence Union N°2 (supervisors and staff) with the new agreement effective from 1 April 2018 for 36 months.

Olympic Dam copper production decreased by 18 % to 95 kilo tonne as a result of the planned major smelter maintenance campaign in the first half of the financial year. Production guidance for the 2018 financial year has been reduced from 150 kilo tonne to approximately 135 kilo tonne due to a slower than planned ramp-up during the March 2018 quarter. A return to full capacity is now expected over the course of the June 2018 quarter. Development into the higher- grade Southern Mine Area continues with record underground development metres achieved in March 2018.

Antamina copper production increased by 10 % to 105 kilo tonne and zinc production increased 43 % to 84 kilo tonne due to higher head grades as mining continued through a zinc-rich ore zone consistent with the mine plan. Copper production guidance for the 2018 financial year has increased to approximately 135 kilo tonne from approximately 125 kilo tonne and zinc production guidance to approximately 110 kilo tonne from approximately 100 kilo tonne.

Source : Strategic Research Institute
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Rio Tinto completes gross debt reduction program

Rio Tinto announced that has successfully completed its bond tender and redemption exercises announced on 20 March 2018 and as a result it has reduced gross debt by USD 1.94 billion equivalent. Since the start of 2016 we have now reduced the nominal value of our outstanding bonds from approximately USD 21 billion equivalent to about USD 7.8 billion equivalent.

The notes redeemed by Rio Tinto Finance plc and Rio Tinto Finance Limited under the USD 1.4 billion redemption notices in addition to the the notes purchased by Rio Tinto Finance plc of GBP 432 million under the tender offer amounted to USD 1.94 billion equivalent.

Source : Strategy Research Institute
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Rio Tinto board update on Ms Moya Greene appointment

Following the announcement by Rio Tinto on 15 February 2018, of the appointment of Ms Moya Greene as an independent non executive director, the company confirms that Ms Greene will join the board with effect from 17 September 2018.

Source : Strategic Research Institute
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BHP and Vale get extension on settlements for Samarco

Investing News reported that two of the world’s largest mining companies, BHP Billiton and Vale have been given an extra 66 days to negotiate a settlement of multi-billion dollar public civil claims over a 2015 mine dam collapse in Brazil. As per report 19 people were killed in November 2015 when an iron-ore tailings dam collapsed at the Samarco mine in Mariana, Brazil. On top of the human costs, the Doce River was contaminated with 60 million cubic metres of iron waste in what was Brazil’s worst environmental disaster.

BHP Billiton and its joint venture partner, Vale operated the Samarco mine together.

Vale announced that the federal court of Minas Gerais, the Brazilian state where the Samarco mine is located in, had extended the final date for the negotiation of a final settlement until June 25 of 2018 – an extra 66 days.

The companies are facing two public civil claims worth USD 47.6 billion and USD 6.1 billion respectively.

This is the second extension the two companies have received for the claims, following a 150-day extension granted in November 2017.

On top of the huge civil claims, the companies are also facing federal criminal proceedings against 22 individuals who were employed either directly or indirectly by Samarco, 21 of which face charges of ‘qualified homicide’.

Public prosecutors Jose Leite Sampaio told reporters in Belo Horizonte back in 2016 that executives at Samarco had clear awareness the dam could fail but ignored the risks and prioritized profit.

There were signs that the dam was unsafe for several years before its collapse, but Samarco officials, executives, employees and board members appointed by Vale and BHP failed to take proper action, Sampaio said.

Prosecutors also said safety and regulatory procedures were not properly followed, including those in the company’s own operating manual. To this day, operations at the Samarco mine remain suspended.

Source : Investing News
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Job fears as Rio Tinto ramp up its autonomous operations in Pilbara

The West reported that Rio Tinto is continuing to ramp up its autonomous operations in the Pilbara with plans to double its fleet of production drill rigs in the Pilbara that are operated remotely. Four additional drills, retrofitted with autonomous drilling system technology, were recently deployed at Rio’s Yandicoogina mine, adding to the existing seven autonomous drills at the West Angelas mine. A further nine drills will be deployed by the end of the year, bringing the total fleet to 20.

The managing director of Rio’s planning, integration and assets for iron ore, Ms Kellie Parker, said the expansion of the fleet delivered significant productivity gains and enabled the company to drill more safely, accurately and consistently. She said that “The deployment of additional rigs, operated from our operations centre in Perth, offers significant advantages as part of our integrated system, which optimises our autonomous trains, trucks and drills and provides increased operability and flexibility."

She added that “As pioneers of automation and innovation, we continue exploring new technologies to ensure Rio Tinto remains a leader in the global mining industry.”

Few jobs are likely to be affected in the transition, but Ms Parker said Rio was committed to working closely with employees to provide opportunities for new roles, new skills, redeployment and retraining.

Rio said the autonomous drills provided a significant safety advantage by reducing the number of employees exposed to potential hazards and fatigue levels, as well as limiting exposure to dust, noise and vibration.

All drills are monitored remotely by operators in Rio’s operations centre in Perth, more than 1500km away, and to date have operated injury free, the company said.

The automation of drilling has increased productivity because of the increased number of hours the machines operate as well as the numbers of metres the drill achieves per hour.

Source : The West
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