Wed,February 22, 2012
The Construction, Forestry, Mining and Energy Union (CFMEU) has called off a 24-hour strike today at the Port Kembla Coal Terminal, on the New South Wales south coast, after negotiations moved closer to a resolution.
About 100 workers have been striking over job security.
Pacific National Coal says as a result of the strike being called off, drivers in the Illawarra and Lithgow will no longer be stood down.
It announced yesterday it would have to stand down the workers from today due to a lack of work resulting from the strike, even though Pacific National employees were not striking.
The CFMEU says it is buoyed by progress made during talks yesterday.
The union's district vice-president, Bob Timbs, says it was not the union's intention to cause issues for workers indirectly affected by protected industrial action.
(sourced ABC.net.au)
Showing posts with label Australian mining news. Show all posts
Showing posts with label Australian mining news. Show all posts
Wednesday, February 22, 2012
Wednesday, January 4, 2012
Iron ore fall raises doubts on Australia mine tax plan
Wed Jan 4, 2012
SYDNEY, (Reuters) - Australia's politically charged mining profits tax could raise less of the initial A$11 billion Prime Minister Julia Gillard is promising if iron ore prices return to November levels, accountants BDO warned in a senate submission.
Mega-miners Xstrata, BHP Billiton and Rio Tinto , last year agreed with Gillard to pay the Minerals Resource Rent Tax only if the tax was cut to 30 percent from 40 percent and limited to profits from iron ore and coal mining.An earlier version was deemed unworkable within the ruling Labor Party and led to the removal of Australia's first Labor leader in 11 years, Kevin Rudd.
Analysts are divided on the direction of iron ore prices, which this year dropped as low as $116 a tonne and ranged from $119 to $147 a tonne over November.On Wednesday, the price stood at $138.30 a tonne.
Steel industries in most countries requiring ore are suffering, leaving China and other robust Asian economies with healthier balance sheets the key buyers.If iron ore experiences a "double dip drop" prices could fall to a point "where no one will pay MRRT", BDO said.
Between $120 and $125 a tonne for ore, it was "difficult to envisage" established mining companies paying any tax, given large deductions afforded to them under the plan, BDO said."We respectfully request treasury advise what MRRT tax will be collected if iron ore prices remain at $120 for an extended period of time," BDO said in its submission.
TAX BEING CLOSELY WATCHED
Gillard wants to use the tax to boost payments into worker pension funds and to spread the benefits of Australia's resources boom to other parts of the economy.The tax is being closely watched by other resource nations.Huge expansion plans underway by big mining houses promise to deliver hundreds of millions more tonnes of iron ore to the global supply pool.
At the same time, there are some signs China's steel production is waning after years of near-uninterrupted growth.China's daily crude steel output fell to 1.666 million tonnes in the second 10 days of December, down 0.44 percent from the preceding 10 days, data from the China Iron & Steel Association showed.
JULY 1 START
For the first half of 2012 -- the tax starts on July 1, 2012 -- seasonally weaker seaborne iron ore supply and some recovery in steel production should keep iron ore prices in a $130-$150 range according to CLSA analysts. By 2014, the price could be as low as $100 a tonne, CLSA forecasts.
Supporters of the tax have accused detractors of waging a scare campaign by saying Australia, whose economy relies heavily on mining, would see less investment in mining if the tax was introduced.
Mining is the lifeblood of the Australian economy and iron ore and coal generate the lion's share of national overseas earnings.But to date, even detractors concede that there's been little sign Australia was losing its appeal as a mining centre.
Rio Tinto is accelerating a plan to lift output by 50 percent to 333 million tonnes a year by 2015. BHP is aiming for a 37 percent rise in production to 220 million tonnes by around the same time.Gillard's supporters estimate Xstrata, BHP and Rio Tinto would shoulder 80 percent of the $11.1 billion in added tax revenue collected in the first three years.
(sourced Reuters)
SYDNEY, (Reuters) - Australia's politically charged mining profits tax could raise less of the initial A$11 billion Prime Minister Julia Gillard is promising if iron ore prices return to November levels, accountants BDO warned in a senate submission.
Mega-miners Xstrata, BHP Billiton and Rio Tinto , last year agreed with Gillard to pay the Minerals Resource Rent Tax only if the tax was cut to 30 percent from 40 percent and limited to profits from iron ore and coal mining.An earlier version was deemed unworkable within the ruling Labor Party and led to the removal of Australia's first Labor leader in 11 years, Kevin Rudd.
Analysts are divided on the direction of iron ore prices, which this year dropped as low as $116 a tonne and ranged from $119 to $147 a tonne over November.On Wednesday, the price stood at $138.30 a tonne.
Steel industries in most countries requiring ore are suffering, leaving China and other robust Asian economies with healthier balance sheets the key buyers.If iron ore experiences a "double dip drop" prices could fall to a point "where no one will pay MRRT", BDO said.
Between $120 and $125 a tonne for ore, it was "difficult to envisage" established mining companies paying any tax, given large deductions afforded to them under the plan, BDO said."We respectfully request treasury advise what MRRT tax will be collected if iron ore prices remain at $120 for an extended period of time," BDO said in its submission.
TAX BEING CLOSELY WATCHED
Gillard wants to use the tax to boost payments into worker pension funds and to spread the benefits of Australia's resources boom to other parts of the economy.The tax is being closely watched by other resource nations.Huge expansion plans underway by big mining houses promise to deliver hundreds of millions more tonnes of iron ore to the global supply pool.
At the same time, there are some signs China's steel production is waning after years of near-uninterrupted growth.China's daily crude steel output fell to 1.666 million tonnes in the second 10 days of December, down 0.44 percent from the preceding 10 days, data from the China Iron & Steel Association showed.
JULY 1 START
For the first half of 2012 -- the tax starts on July 1, 2012 -- seasonally weaker seaborne iron ore supply and some recovery in steel production should keep iron ore prices in a $130-$150 range according to CLSA analysts. By 2014, the price could be as low as $100 a tonne, CLSA forecasts.
Supporters of the tax have accused detractors of waging a scare campaign by saying Australia, whose economy relies heavily on mining, would see less investment in mining if the tax was introduced.
Mining is the lifeblood of the Australian economy and iron ore and coal generate the lion's share of national overseas earnings.But to date, even detractors concede that there's been little sign Australia was losing its appeal as a mining centre.
Rio Tinto is accelerating a plan to lift output by 50 percent to 333 million tonnes a year by 2015. BHP is aiming for a 37 percent rise in production to 220 million tonnes by around the same time.Gillard's supporters estimate Xstrata, BHP and Rio Tinto would shoulder 80 percent of the $11.1 billion in added tax revenue collected in the first three years.
(sourced Reuters)
Monday, November 21, 2011
Australian govt wins crucial support for mining tax
Mon Nov 21, 2011
CANBERRA (Reuters) - Australia's government is set to pass laws for its 30 percent mining profits tax later this week after agreeing to lift the starting threshold and promising more scrutiny of coal seam gas projects in a deal to win support from three key independents.
But the changes, which will cost about A$20 million a year in lost government revenue, have upset the Greens, whose support is needed to pass the laws, and done little to allay concerns of small and mid-tier mining companies.
Under the agreement with independent lawmaker Andrew Wilkie, the government will lift the starting profits threshold for the tax from A$50 million to A$75 million, although smaller iron ore miner BC Iron said the changes would give no relief to smaller companies.
"It's like painting that house full of termites" BC Iron Chief Executive Mike Young said. "To put A$75 million into context, at current iron prices, that's our margin on maybe 1.2 million tonnes."
Gillard's government, which holds a one-seat majority with support from one Green and the three independent lawmakers, wants the mining tax passed by the lower House of Representatives by the end of the week.
The government wants the tax on iron ore and coal mine profits, due to start in July 2012, to raise about A$7.7 billion in its first two years, and Treasurer Wayne Swan said the changes meant the biggest miners would pay the most.
"Most of this money will now be paid by the largest miners in this country," Swan told parliament.
A government deal with two other independents, Tony Windsor and Rob Oakeshott, earmarks A$200 million over five years for scientific research into coal seam gas projects, to allow governments to better assess the impact on water and farming.
GREENS WARY
The government wants to slap the proposed tax on big iron ore and coal miners as part of reforms designed to balance its budget and reallocate wealth from the mining industry, now enjoying the biggest boom in a century, to other sectors.
The government and global miners BHP Billiton, Rio Tinto and Xstrata agreed on the mining tax in 2010, but smaller miners such as Australia's Fortescue Metals Group have complained that the tax favors big miners.
But Simon Bennison, chief executive of the Association of Mining and Exploration Companies, said his group will continue to push for the tax to be based on a production threshold instead of a profit threshold.
Bennison said 10 million tonnes per year would be a good starting point.
"Iron ore prices are not going to stay at high levels forever, they have already fallen quite a lot and the profitability levels of companies are all different," he said.
The mining tax will help the government return the budget to surplus and fund a 1 percentage point cut in the company tax rate to 29 percent, portrayed as a boost for non-mining sectors, especially those hit hard by a strong local currency.
But the Greens, who want the tax rate to be lifted to 40 percent and for the tax to also apply to uranium and gold mines, said they now wanted to be sure the government did not cut other areas of the budget to fund Wilkie's amendments.
"We are going to ensure that the public interest be upheld here. We will be talking to the government in the coming day or two," Greens leader Bob Brown told reporters.
The government needs the Greens to pass the mining tax through parliament's Senate upper house, where a vote is due in early 2012.
(sourced Reuters)
Thursday, October 27, 2011
Australian mine tax wont extend beyond coal and iron ore - Mr Ferguson
Thursday, 27 Oct 2011
Bloomberg cited Mr Martin Ferguson Australian Resources and Energy Minister as saying that Australia, the world biggest exporter of iron ore and coal, isn’t considering extending the scope of its new mining tax to cover other commodities.
He said that “We clearly entered into agreement with the mining industry last election and we remain committed to that agreement.”
Mr Ferguson said “Don’t believe everything you see in the media. We have basically an agreement with the mining industry and that’s basically been nailed down.”
The tax, forecast to raise AUD 7.7 billion in its first two years from July 2012 will be used to lower the corporate tax rate to 29% from 30%, encourage retirement savings and pay for roads and railways.
(sourced from Bloomberg)
Bloomberg cited Mr Martin Ferguson Australian Resources and Energy Minister as saying that Australia, the world biggest exporter of iron ore and coal, isn’t considering extending the scope of its new mining tax to cover other commodities.
He said that “We clearly entered into agreement with the mining industry last election and we remain committed to that agreement.”
Mr Ferguson said “Don’t believe everything you see in the media. We have basically an agreement with the mining industry and that’s basically been nailed down.”
The tax, forecast to raise AUD 7.7 billion in its first two years from July 2012 will be used to lower the corporate tax rate to 29% from 30%, encourage retirement savings and pay for roads and railways.
(sourced from Bloomberg)
Friday, August 19, 2011
BHP Billiton plans Australia rail line in threat to QR National
Friday, 19 Aug 2011
Reuters reported that global miner BHP Billiton is looking to build a new rail line between some of its inland Australian coal mines and the coast in a move that could threaten dominant coal haulage firm QR National.
QR National relies on the miner for about 40% of its business in the coal mining state of Queensland.
The plan was to build a rail line from Queensland's Bowen Basin, source for most of Australia's exports of steel making coal, to a port at Abbot Point where BHP Billiton was preferred developer for a new coal export terminal.
(Sourced Reuters)
Reuters reported that global miner BHP Billiton is looking to build a new rail line between some of its inland Australian coal mines and the coast in a move that could threaten dominant coal haulage firm QR National.
QR National relies on the miner for about 40% of its business in the coal mining state of Queensland.
The plan was to build a rail line from Queensland's Bowen Basin, source for most of Australia's exports of steel making coal, to a port at Abbot Point where BHP Billiton was preferred developer for a new coal export terminal.
(Sourced Reuters)
Tuesday, August 16, 2011
Australia’s Federal Court decides in favor of Fortescue on mining leases
August16,2011
Australian miner Fortescue Metals Group Limited (Fortescue) has announced that the Federal Court of Australia has made its final decision regarding the appeal by the Yindjibarndi native title claim group against previous decisions of the Western Australian government to grant mining leases to Fortescue for its Solomon Hub mining operation.
The Federal Court has unanimously dismissed the Yindjibarndi native title claim group's appeal against the previous grant of these mining leases to Fortescue.
According to the company statement, the project at Solomon Hub is continuing both to schedule and budget. The Federal Court decision allows Fortescue to continue with its expansion plan in the Pilbara region of Western Australia. Fortescue has been trying to increase its annual output to 155 million mt per year from 55 million mt per year under these leases.
The Federal Court has unanimously dismissed the Yindjibarndi native title claim group's appeal against the previous grant of these mining leases to Fortescue.
According to the company statement, the project at Solomon Hub is continuing both to schedule and budget. The Federal Court decision allows Fortescue to continue with its expansion plan in the Pilbara region of Western Australia. Fortescue has been trying to increase its annual output to 155 million mt per year from 55 million mt per year under these leases.
Friday, March 18, 2011
RPT-Sundance: Big finds in Cameroon iron ore project
Thu Mar 17, 2011 10:16pm GMT
YAOUNDE, March 17, (Reuters) - Australian mining firm Sundance Resources (SDL.AX: Quote) said on Thursday recent finds at its Mbalam iron ore project in Cameroon had more than doubled the amount of indicated resources in the area.
Indicated resources give the West Africa-focused miner, confidence in the potential of iron ore to be mined in the area.
Sundance said indicated high-grade hematite had more than doubled to 417.7 metric tonnes, following a large drilling programme in the past 12 months, compared with 169 MT previously reported.
News of the find pushed Sundance shares up 9.3 percent on the day.
"This resource estimate further strengthens our confidence of the viability of this project. We are now approaching half a billion tonnes of high quality iron resources and 85 per cent of that is now indicated," Sundance Chief Executive Giulio Casello said in a statement.
"We have a globally significant project capable of producing 35 million tonnes per annum of high-quality iron ore for at least 25 years," he said.
Casello said the first phase of the project consists of a planned railway and deep water port. The company last year delayed the start-up of production to 2013.
The company said in February the estimated $3.4 billion cost of the project was increasing.
(Reporting by Tansa Musa, Writing by Bate Felix, editing by Jane Baird, Reuters)
YAOUNDE, March 17, (Reuters) - Australian mining firm Sundance Resources (SDL.AX: Quote) said on Thursday recent finds at its Mbalam iron ore project in Cameroon had more than doubled the amount of indicated resources in the area.
Indicated resources give the West Africa-focused miner, confidence in the potential of iron ore to be mined in the area.
Sundance said indicated high-grade hematite had more than doubled to 417.7 metric tonnes, following a large drilling programme in the past 12 months, compared with 169 MT previously reported.
News of the find pushed Sundance shares up 9.3 percent on the day.
"This resource estimate further strengthens our confidence of the viability of this project. We are now approaching half a billion tonnes of high quality iron resources and 85 per cent of that is now indicated," Sundance Chief Executive Giulio Casello said in a statement.
"We have a globally significant project capable of producing 35 million tonnes per annum of high-quality iron ore for at least 25 years," he said.
Casello said the first phase of the project consists of a planned railway and deep water port. The company last year delayed the start-up of production to 2013.
The company said in February the estimated $3.4 billion cost of the project was increasing.
(Reporting by Tansa Musa, Writing by Bate Felix, editing by Jane Baird, Reuters)
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