Resources and mining companies making news include Fortescue chief Nev Power saying the company will reassess its aggressive iron ore expansion plans, OZ Minerals forecasting the price of copper will bounce back to record levels, Galaxy Resources sells its first commercial shipment of Mt Cattlin spodumene for more than $5.5 million, New Hope grows its coal output and sales in the third quarter and the Queensland Competition Authority approves the construction of the Wiggins Island Rail project.
Fortescue to reassess iron ore expansionFortescue Metals Group Limited’s
(ASX:FMG) chief Nev Power says the company will reassess its aggressive iron ore expansion plans. The Pilbara focussed iron ore miner is currently ramping up to almost triple production to 155 million tonnes a year by mid 2013. Mr Power said any further expansion beyond its current plans will depend entirely on the strength of the market. Fortescue will be pausing at 155 million tonnes and assessing market conditions, paying down debt and getting its balance sheet in a position where it has the capacity to expand.
Resources NewsFalling commodity prices and rising costs are making new mining projects less viable. A report by Port Jackson Partners published for the Minerals Council of Australia highlights the loss of competitiveness. The study reveals that Australia has lost its competitive advantage for projects, except those already established in the Pilbara.
“The free lunch is finished and from here on it’s hard work”, said Angus Taylor, author of the study, as reported by The Australian Financial Review.
Speaking with the Finance News Network, climate change sceptic and geologist Professor Ian Plimer says the Minerals Resource Rent Tax is likely to destroy the mining industry. “The people who will benefit the most from the Minerals Resource Rent Tax will be the West African countries, Canada and other countries where exploration and mining companies in Australia will fly to. We will destroy the best industry we’ve got in this country,” said Professor Plimer.
“It [the mining tax] will have a profound impact on Australia. It will close down operations, it will put people out of work and it will destroy our competitive base,” he added.
To watch the full interview visit:
http://www.finnewsnetwork.com.au/archives/finance_news_network20753.html OZ Minerals bullish on copper price OZ Minerals Limited
(ASX:OZL) has forecast the copper price will bounce back to record highs because of a supply shortage. Speaking at the company’s annual general meeting CEO Terry Burgess said he believes there will be a shortage of copper this year and next. Chairman Neil Hamilton said prices for the company’s commodities were at record average levels last year and OZ Minerals continues to see a tight market for copper and a positive long term outlook. The company expects to deliver copper production of between 100,000 and 110,000 tonnes and gold production of between 130,000 and 150,000 ounces in the 2012 financial year.
Galaxy sells first Mt Cattlin shipment Lithium mining, chemicals and battery company Galaxy Resources Limited
(ASX:GXY) has sold its first commercial shipment of Mt Cattlin spodumene for more than $5.5 million. The spodumene concentrate has been sold from its wholly owned project in Western Australia to third party Chinese customers and represents the first significant lithium revenue stream for Mt Cattlin. The shipment was the fourth shipment of spodumene concentrate exported by Galaxy, with the first three having been received for processing at the company’s Jiangsu Lithium Carbonate Plant in China.
New Hope grows Q3 coal output and sales New Hope Corporation Limited
(ASX:NHC) has grown its coal output and sales in the third quarter. The thermal coal miner has reported a 20 per cent rise in raw production and a 27 per cent rise in saleable production, compared to the prior corresponding period. In the first nine months of the current financial year sales have grown 23 per cent to 4.8 million tonnes, compared with the year before. However media reports have speculated New Hope’s earnings could take a hit from weaker coal prices when the company posts its second-half earnings result.
Wiggins Island rail project gets approvalBandanna Energy Limited
(ASX:BND) has received approval from the Queensland Competition Authority for the construction of the Wiggins Island Rail project. The coal explorer says it represents another significant step in its path to exporting first coal through Wiggins Island in the second half of 2014. Bandanna is among a consortium of coal companies constructing rail capacity including Aquila Resources
(ASX:AQA), Northern Energy Corporation
(ASX:NEC) and Cockatoo Coal
(ASX:COK).
