Despite a healthy amount of iron ore shipments contributing to an improvement in Australia’s trade balance this week, global powerhouse BHP Billiton Limited
(ASX:BHP) is flagging an intention to diversify and shift away from a predominant China dependant focus.
However, investment bank UBS is adamant China will remain on the hunt for offshore acquisitions- despite the Sundance Resources Limited
(ASX:SDL) and Hanlong mining takeover negotiations grinding to a halt this week- with the thirst for offshore projects a bi-product of an expectation for ongoing high bulk commodity demand.
Meanwhile, companys of all shapes and sizes continue to move and shift their pieces across an uncertain chess board, most notably Rio Tinto Limited
(ASX:RIO) and Alacer Gold Corporation
(ASX:AQG), who are in the news for planned non-core divestments.
Resources economic news Australia’s trade balance has improved on the back of coal and iron ore shipments. The Australian Bureau of Statistics reports the trade deficit narrowed to $178 million in February from $1.2 billion the month before. Exports rose 3 per cent as imports dipped 1 per cent.
Commentary BHP’s Chief Financial Officer Graham Kerr this week claimed that an unanticipated Chinese slowdown is the biggest threat to the global miner’s ongoing fortunes, while flagging a shift towards less China-dependent revenue streams such as coal, copper, oil and gas over time.
Mr Kerr says China’s moderated growth for the next few years is around the 7 to 8 per cent mark for the next few years and is certain double digit growth rates will not continue, citing the iron ore price tumble from last year as an example of lessening Chinese demand on the back of lower than expected Chinese economic growth.
Resource movers and shakers Galaxy Resources Limited
(ASX:GXY)says it expects its Jiangsu Lithium Carbonate Plant in China to become cash flow positive in the third quarter of this year.
Central Petroleum Limited
(ASX:CTP)has outlined plans to expand its shale gas play and dispose of its coal assets for $1.8 million.
Oil Search Limited
(ASX:OSH)has outlined its strategy to optimise production and reserves at its producing oil and gas fields in Papua New Guinea, where more than 90 per cent of its assets are located.
Alacer Gold Corp
(ASX:AQG) has finalised the the sale of its stake in the Frog's Leg gold mine in Western Australia to La Mancha Resources Australia for $138.5 million. Shareholders will receive a $70 million dividend as a result of the sale.
Heavy hitters hitting heavy Rio Tinto Limited
(ASX:RIO)has reportedly put its Australian thermal coal assets up for sale after its new chief Sam Walsh flagged it will divest non-core operations earlier this year.
Fortescue Metals Group Limited’s
(ASX:FMG) founder Andrew Forrest is heading to China to pave some positive relations. Forrest will reportedly lead a group of senior business leaders at a major forum.
Boart Longyear’s
(ASX:BLY) Chief Financial officer Joseph Raglan will leave the drilling company at a date to be fixed. Mr Raglan will remain at Boart Longyear to assist with the transition to his successor.
Sundance Resources Limited
(ASX:SDL)chairman George Jones says the thwarted miner will add some additional firepower to its board in an effort to recover from this weeks share throttling failure of the Hanlong mining takeover.
