Australia/New Caledonia/Papua New Guinea Mining – Page 82

Bougainville president, chiefs condemn Rio Tinto ‘conspiracy’ over mine – by Pacific Media Centre Editor (Asia Pacific Report – July 4, 2016)

July 5, 2016

Bougainville’s president and Meekamu landowner chiefs have condemned the Rio Tinto “mess” over Panguna mine and the traditional landowners have called for the company to be charged for “stealing our resources”. President Momis today expressed shock and disgust at a “disgusting and shady deal” between the Papua New Guinea national government and Rio Tinto.

He said the national government was deeply involved in Rio Tinto’s decision to transfer 17.4 percent equity in Bougainville Copper Ltd (BCL), making the national government equal shareholder with the Autonomous Bougainville Government in BCL.

Momis also warned the move was a “grave threat” to the Bougainville Peace Agreement. In a statement published on Bougainville News, President Momis said :

Rio Tinto sells coal mine for less than a cup of coffee – by Jamie Smyth (Financial Times – July 4, 2016)

July 4, 2016

https://next.ft.com/

Latest cut-price sale of an Australian asset in the troubled coal sector

Sydney – Rio Tinto is selling its interest in an Australian coal mine for A$1 (US$0.75) — the latest transaction in the troubled coal sector agreed for less than the price of a cup of coffee.

The Anglo-Australian miner said on Monday it was in discussions with Terracom, an Australia-listed junior miner, over its joint venture interest in the mothballed Blair Athol thermal coal mine in Queensland.

The proposed sale follows Rio’s decision to relinquish its stake in a Papua New Guinea copper mine last week, as part of a strategy of shedding non-core assets being pursued by Jean-Sébastien Jacques, Rio’s new chief executive.

Copper’s Political Risks Lie in Wait – by David Fickling (Bloomberg News – July 3, 2016)

July 4, 2016

http://www.bloomberg.com/

Chief executives of global companies still lose sleep over political risks, but since the heyday of the British East India Company not many businesses can claim to have played a part in a country’s descent into civil war.

Rio Tinto is one. Protests by landowners about its Panguna mine on the Papua New Guinean island of Bougainville were among the triggers for a decade-long conflict in which as many as 15,000 people died between 1988 and 1998, according to an Australian parliamentary inquiry.

The company’s plan to give away its stake in the mine to landowners and Papua New Guinea’s government shows how times have changed. While the risk of violence has kept the site out of action for a generation, Panguna has about $51 billion of copper in its rock. It would probably count as one of the world’s biggest pits, if only it could be mined.

New Rio Tinto boss Jean-Sébastien Jacques signals end of iron ore wars – by James Chessell and James Thomson(Australian Financial Review – July 3, 2016)

July 4, 2016

http://www.afr.com/

Rio Tinto’s new chief executive, Jean-Sébastien Jacques, has signalled the era of accelerated iron ore production is over with the world’s second-largest exporter less concerned about chasing market share at a time when Chinese attempts to remove overcapacity from domestic steelmaking could take longer than expected.

Mr Jacques, who formally replaced previous Rio boss Sam Walsh on Saturday, also played down the prospect of the London-based miner using its relative position of strength in the resources sector to embark on an acquisition spree, arguing prices paid for quality mining projects in 2016 were high despite the worst commodities downturn in decades.

The 44-year-old Frenchman takes over the role at an uncertain time for iron ore – a commodity that accounted for 87 per cent of Rio’s underlying earnings in 2015. Prices have gyrated in the past two years as miners controversially increased production while Chinese demand for the key-steelmaking ingredient cooled.

Mining Companies Buy Political Influence in Australia, Report Says – by Michelle Innis (New York Times – June 29, 2016)

June 30, 2016

http://www.nytimes.com/

SYDNEY — Political donations by mining companies preceded legislative approval for several Australian mining operations, including plans to develop the country’s biggest coal mine, according to a report by an independent Australian policy institute released on Thursday.

The report, by the Australia Institute, examined six cases where mining companies made donations to Australia’s major political parties and received favorable legislation for mining projects in the state of Queensland.

The report contends that the donations from the mining industry bought access to Queensland state officials, giving the industry an “undue influence on our democratic processes” and resulting in decisions that “have poor outcomes for our environment, economy and our communities.”

RIO TINTO NEWS RELEASE: Bougainville Copper Limited shareholding

June 30, 2016

http://www.riotinto.com/

Rio Tinto has today transferred its 53.8 per cent shareholding in Bougainville Copper Limited (BCL) to an independent trustee.

Equity Trustees Limited will manage the distribution of these shares between the Autonomous Bougainville Government (ABG) for the benefit of all the Panguna landowners and the people of Bougainville, and the Independent State of Papua New Guinea (PNG).

Under the trust deed, the ABG has the opportunity to receive 68 per cent of Rio Tinto’s shareholding (which equates to 36.4 per cent of BCL’s shares) from the independent trustee for no consideration and PNG is entitled to the remaining 32 per cent (which equates to 17.4 per cent of BCL’s shares).

Rio Tinto cuts mining links with Papua New Guinea (Reuters U.S. – June 29, 2016)

June 30, 2016

http://www.reuters.com/

Rio Tinto Ltd will sever mining links with resource-rich Papua New Guinea, relinquishing ownership of the Panguna copper mine on Bougainville island which has been closed for around 25 years after a secessionist rebellion.

The global miner said on Thursday that it would transfer its majority shareholding of 53.8 percent in Bougainville Copper Ltd to an independent trustee to manage the distribution of the shares to the Autonomous Bougainville Government and Papua New Guinea.

“By distributing our shares in this way we aim to provide landowners, those closest to the mine, and all the people of Bougainville a greater say in the future of Panguna,” Rio Tinto said in a statement. In 2013 Rio Tinto investigated restarting the mine after being run off the island amid a secessionist uprising that has since subsided.

Gold Veteran Says Brexit May Be Start of ‘Major Bull Market’ – by Ranjeetha Pakiam and Angie Lau (Bloomberg News – June 28, 2016)

June 28, 2016

http://www.bloomberg.com/

Gold may stand at the start of a major bull market should the U.K.’s Brexit vote prove to be a forerunner of greater political and financial instability around the world, according to Evolution Mining Ltd.’s Jake Klein, a veteran of more than 20 years in the industry.

With the rise in uncertainty, investors are coming back to the market, the executive chairman of Australia’s second-biggest producer said in an interview with Bloomberg Television. “It is an alternate currency, it’s performed that role” as a haven for over 2,000 years, he said.

Gold has soared after the U.K.’s vote last week to quit the European Union as investors seek a haven from financial turmoil and contemplate the possible implications.

Seven mining workers freed after being kidnapped in Nigeria – by Staff (The Guardian – June 26, 2016)

June 27, 2016

https://www.theguardian.com/

Two Nigerians and five foreign workers – three Australians, a New Zealander and a South African – are released four days after a deadly attack on their convoy

Seven men kidnapped in a deadly attack in Nigeria have been released. The men, who work for Perth-based mining company Macmahon Holdings, were in a group driving on the outskirts of the city of Calabar when they were attacked by gunmen on Wednesday. Their driver, a Nigerian man, was killed.

The company said in a statement late on Sunday night the men – three Australians, two Nigerians, a New Zealander and a South African – had been released.

“The families have all been informed of the successful release of the men and have had the opportunity to speak to their loved ones,” Macmahon chief executive Sy van Dyk said.

BHP: Fukushima set uranium industry back for years – by Michael Owen (The Australian – June 27, 2016)

June 27, 2016

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

A key reason for BHP Billiton’s decision four years ago to indefinitely mothball a $30 billion plan to turn Olympic Dam into the world’s biggest uranium mine was the Fukushima nuclear plant explosion rather than cost concerns, it has been revealed.

Senior BHP executives told The Australian that although lingering effects from the global financial crisis in 2008 were used to publicly justify the 2012 decision by BHP’s board not to proceed with the original expansion plan, the real concern was the effect of the Fukushima disaster on demand for uranium and its price.

“You have to consider the events that occurred around that time … Fukushima changed everything and probably set the nuclear energy and uranium industry back years, if not decades,” one senior BHP executive said.

Australia’s Election Is a Fight for a Future After Mining – by Jason Scott (Bloomberg News – June 26, 2016)

June 27, 2016

http://www.bloomberg.com/

Australia is heading to elections on July 2 to determine which party will steer the economy through a fading mining investment boom and a deterioration of public finances.

Seeking a second term for his Liberal-National coalition, Prime Minister Malcolm Turnbull says he’s best-placed to create new growth drivers through innovation and tap into growing Chinese demand for Australian services such as tourism and education

Turnbull, 61, also wants to draw a line under almost a decade of unprecedented political instability that’s seen Australia churn through six prime ministers since 2007. The former investment banker is being challenged by one-time trade union leader Bill Shorten, 49, who leads the main opposition Labor party.

Fatal shooting highlights risks of search for uncovered riches – by Barry Fitzgerald(The Australian – June 24, 2016)

June 24, 2016

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

Australia’s resources industry is among the most adventurous in the world. It has long been prepared to travel to where the orebodies are, or where they might be found.

The adventurous streak reflects the crowded tenement scene in Australia, with coverage of prospective rocks near absolute. But leaving the crowd behind comes with greater risks.

As the fatal shooting of a local employee in Nigeria of ASX-listed mining contractor Macmahon Holdings, and the kidnapping of seven other employees including three Australians, has shown, the risks can be extreme.

RPT-COLUMN-Rio Tinto’s cleared the decks, now time to change iron ore tack – by Clyde Russell (Reuters U.s. – June 23, 2016)

June 23, 2016

http://www.reuters.com/

The beautiful thing about cleaning out the executive ranks is that it gives a company an opportunity to press the reset button on strategies and positions. Rio Tinto should seize the moment and come up with a forecast for Chinese steel output that is more realistic.

Jean-Sebastien Jacques, who takes over from Sam Walsh as chief executive at the start of July, has already moved to put his stamp on the world’s second-largest mining company. Rio announced on Tuesday that the head of its iron ore division, Andrew Harding, would leave the company on July 1 as part of a restructuring.

Harding’s job of running Rio’s main profit contributor will be taken by Chris Salisbury, the current acting chief of copper and coal. Iron ore accounts for some 90 percent of Rio’s profit, making it by far the miner’s most important division.

Lenders turn away BHP port debt plan, wary of coal – by James Regan (Reuters U.S. – June 23, 2016)

June 23, 2016

http://www.reuters.com/

SYDNEY – Australian mining giant BHP Billiton pulled a $500 million debt refinancing plan at one of Australia’s biggest coal export terminals after banks were reluctant to lend to the sector, said three sources with knowledge of the process.

The decision earlier this month sets back efforts to simplify complex debt arrangements at the Newcastle Coal Infrastructure Group (NCIG) project and stalls BHP’s plan to release cash tied up in the terminal as it looks to strengthen its balance sheet amid a global commodities slump.

It also underscores the plight of the industry in trying to attract financing from lenders wary of coal’s commercial outlook and contribution to climate change.

Australian PM Faces Uphill Battle in Struggling Mining Heartland – by Rebecca Keenan (Bloomberg News – June 23, 2016)

June 23, 2016

http://www.bloomberg.com/

In the one-time engine room of Australia’s resources bonanza, Prime Minister Malcolm Turnbull’s election pledge of creating jobs and growth is ringing hollow for many voters.

An economic downturn in Western Australia and claims the Liberal state government squandered the proceeds of the mining boom are a fillip for the opposition Labor party ahead of the July 2 election. Polls indicate Labor could make its first net gain in the state in almost two decades, loosening the prime minister’s grip on power nationally.

“Where is Turnbull going to get the jobs from?” said Bernadette Heath, 55, at a shopping center in the electoral district of Burt — one of four lower house seats being targeted by Labor around the state capital, Perth. “There are no jobs to be had.” Her 57-year-old husband, Brian, took a 40 percent pay cut in his mining industry job amid the downturn, she said.