Category: Mines and Quarry

A deal worth € 770 million (US$ 947 million) has been agreed by Hochtief subsidiary company Leighton Holdings for the sale of John Holland to CCCC International Holding.

The move to sell the Australian contractor to the financing arm of China Communications Construction Company comes amid a streamlining of Germany-based Hochtief’s wider business portfolio.

In October, the contractor made the decision to divest its offshore assets to marine engineering company GeoSea, as well as parting with its property companies Format and Aurelis.

The sale of John Holland is subject to approval by the Australian Foreign Investment Review. It would involve the transfer of 4,100 employees to the new business. As a result of the sale, Leighton’s annual revenues would be reduced by around € 2.5 billion (US$3.9 billion).

Marcelino Fernández Verdes, CEO of Hochtief and Leighton Holdings, said, “In June 2014 we announced that, as part of our strategic review we were analysing options for our services, property and John Holland businesses, including the potential divestment of, or introduction of new partners to, these businesses.

“The divestment of John Holland supports our focus on further reducing gearing and strengthening our balance sheet so that we can sustain competitiveness.”

Proceeds will also be used to finance future growth, particularly in public private partnerships.”

International contractor Leighton is selling its engineering subsidiary John Holland for $1.15 billion to Chinese company CCCC International Holding Ltd.

CCCI is a wholly-owned subsidiary of China Communications Construction Company (CCCC), the fourth largest construction company in the world by revenue, with a market cap of $A23.5 billion.

Leighton CEO Marcelino Fernández Verdes says the divestment of is part of the company’s strategic review initiatives to strengthen the balance sheet.

The money will be used to pay down debt.

The sale will mean a cut in Leighton’s annualised revenue of about $3.7 billion. About 4,100 employees, from almost 50,000 in the group, go with the business.

Leighton’s shares are trading up 1.38% to $22.00.

公司就收购澳大利亚John Holland 股权签订收购协议

2014-12-15

12月11日，中交国际在悉尼与澳大利亚礼顿集团（Leighton Holdings）正式签署股权购买协议，拟收购礼顿集团旗下John Holland公司100%的股权，收购对价为9.53亿澳元（折合人民币约48.82亿元），并计划于2015年3月底之前完成股权交割。 拟收购目标公司John Holland创立于1949年，总部在墨尔本，目前在澳大利亚建筑企业中位列三甲，在业界享有较高的声誉。该公司主要有三大业务板块，包括基建工程板块、特殊工程板块以及交通服务板块。John Holland拥有若干核心技术，主要包括铁路系统、隧道工程、水务及污水处理、环保工程、海洋工程及石油炼化基础设施等。值得一提的是，John Holland拥有澳大利亚最强大的铁路建设及营运管理能力，是澳大利亚唯一同时持有铁路运营和铁路基建管理执照的公司，可在澳大利亚全境开展相关业务。John Holland公司2013年度总收入为45.5亿澳元，目前在手未完成合同额约为 55.1亿澳元。 收购John Holland公司是母公司中国交建国际化经营发展战略中的重要举措。本次收购将为公司进入澳大利亚市场赢得实质性突破。澳大利亚政治、经济、社会环境良好，工程承包市场稳定增长，公司可借助John Holland在铁路、隧道、水务等领域的行业领先地位在澳大利亚市场占据一席之地。同时，预期John Holland公司将在多个业务领域与中国交建实现较强的协同效应，为公司开拓全球市场尤其是发达国家市场培育良机。 收购完成后，John Holland作为中国交建的子公司将保持其原有品牌，持续开展在澳大利亚或其他国家的业务运作，而中国交建也将适时为其提供战略、资金或技术等多方面的支持。 就本次收购工作，中交国际历经半年的时间，相继开展了全面深入的尽职调查，聘请国际权威的顾问团队，安排管理层会谈和现场考察，最终经过多轮的艰辛谈判，与卖方达成协议。待股权交割后，中国交建将完成继成功收购美国F&G公司后第二例跨国并购，从而为公司向世界一流跨国企业集团迈进奠定基石。

Downer’s Mining division has been successfully delivering contract mining and civil earthmoving services to an impressive list of global clients for over 90 years. It is now one of Australia’s leading diversified mining contractors, with around 3,500 employees working across more than 50 sites in Australia, New Zealand, Papua New Guinea, South America and Southern Africa (view our current operations map here).

We support our coal and metalliferous mining clients at all stages of the mining lifecycle, with a wide range of services including:

Open cut mining
Underground mining
Blasting services (through our subsidiary Downer Blasting Services), including explosives manufacture and supply
Exploration drilling
Crushing
Tyre management (through our subsidiary Otraco International)
Mobile plant maintenance
Mine planning and design
Construction of mine-related infrastructure
ReGen: rehabilitation and mine closure services
Indigenous training and development
Our current client base comprises a mix of local and international clients, including: Anglo American, AngloGold Ashanti, BHP Billiton, BMA Coal, Codelco, CrocGold, Debswana Diamond Company, EnergyAustralia, Fortescue Metals Group, Idemitsu Australia Resources, Jellinbah Group, Karara Mining, MMG, Newcrest, Ok Tedi Mining, Peabody Energy, Rio Tinto, Solid Energy, Stanwell Corporation, Swakop Uranium and Yancoal Australia.

While we pride ourselves on the excellence of our work, we recognise that it is also our industry-leading approach to sustainable development that gives us a competitive edge. For us, sustainable development means having an unwavering focus on Zero Harm and a commitment to environmental sustainability, as well as being a valued member of the minerals industry and of the communities in which we operate.

Our non-financial sustainability performance against key health, safety and environment (HSE) and social criteria is reported annually in our Sustainable Development Report. Each of our operations reports quarterly against these pre-determined metrics, a summary of which is provided in our annual Sustainable Development Scorecard.

Head Office
104 Melbourne Street
South Brisbane QLD 4101
AUSTRALIA
T: +61 (0)7 3026 6666
F: +61 (0)7 3026 6060

Sandvik Mining Systems is partnering with Downer EDI Limited (Downer) to offer high-level field service and maintenance solutions for mining materials handling projects around Australia.
The memorandum of agreement (MOA) will enable Sandvik to engage Downer to carry out any maintenance work on Sandvik mining equipment operating on its customer sites, ensuring equipment is safely up and running in the shortest possible time to meet the client’s production targets.
Wayne Slight, Global Operations and Maintenance Manager, Sandvik Mining Systems explains that the agreement with Downer will allow the company to support their customers with a more extensive field service offering, which will enormously benefit their customers’ productivity and operations around Australia.
Observing that Sandvik has long been recognised as an OEM providing leading-edge products designed to the highest quality thanks to their 150-year legacy, Slight comments that the agreement with Downer will enable them to better service their customers with a more extensive field service offering.
Paul Gilbert, Bids & Contracts Manager for Downer described the MOA as a ‘best-fit’ solution for both organisations and their customers. Downer’s extensive history in the mining and construction industry has helped the company develop a strong level of product knowledge of Sandvik Mining Systems, and the necessary expertise to maintain them correctly.
Mr Gilbert adds that the agreement will allow them to carry out full servicing, repairs and maintenance on Sandvik mining systems, including working with on-site service crews, to ensure the equipment continues to operate safely, optimally and reliably.

Downer-Mining-Map-of-Operations_Aug2014

Sandvik has announced a geographical shift, moving its global mining facilities from Euorpe and North America to India and China.

Sandvik Mining’s head of emerging market, Kobus Malan told The Hindu’s BusinessLine the company is relocating a number of its global mining equipment facilities from the US and Europe to India and China as part of its wider business two year re-organisation plan.

“A number of factories in Europe and USA are to be closed down. They were acquired during the 10-year long mining super cycle when chasing orders were a priority,” Malan said.

The main focus of this shift is in the coal mining space.

A Sandvik spokesperson told Australian Mining that these mining facility shifts are unlikely to affect Australian operations.

该制造商为明年在中国市场中的增长确定的目标是20%的增长，主要是由粉碎与筛选板块所驱动。

山特维克建筑公司称，公司在中国的销售明年预期有20%的增长。该富有挑战性的目标是山特维克建筑的总裁高定贵在2014年上海宝马展期间宣布的，该展会将在2014年11月25日至28日举办。

公司称，尽管中国总体建筑市场“平缓”，公司坚信其在2015年将通过在关键板块的拓展而实现20%的增长。

这些板块包括粉碎与筛选，在这个领域内，山特维克认为，在中国，小型的公司将消亡，而大型公司将获得拓展，另外还有表层钻探。一个增长板块是移动粉碎，在该领域，公司预计将获得很大拓展，再加上建筑材料回收再利用板块的增长。

山特维克全球市场总裁Greg Albert称，“中国的市场当前十分平缓，不是很糟糕，只是很平缓。我们现在将其视为我们的新常态，并在探索在此种市场条件下增长的办法。我们期望为客户提供解决方案，而不仅仅是一件件设备。”

Leighton Contractors is one of Australia’s most recognised and successful infrastructure companies. We have more than 14,000 people delivering projects and providing services to the construction, industrial, energy, health, telecommunications and services sectors.

Leighton Contractors is always interested in new sources of supply. Potential suppliers that wish to have goods or services evaluated/reviewed are requested to initiate contact by email providing a company brochure/ information package to

1800procure@leicon.com.au.

Please note that registration of an interest in supplying goods and services to Leighton Contractors does not constitute any status of approval. Leighton Contractors will typically invite your company to formally register an Expression of Interest (EOI) for specific projects or packages and undertake a ‘Pre-Qualification’ process prior to, or as part of the evaluation.

Thank you for your interest in partnering with Leighton Contractors.

Anglo American’s Callide and Dartbrook coal mines are for sale as the miner announces a massive transformation that will see it shed 35 per cent of its workforce.

Chief of Anglo’s coal business Seamus French said the assets are “available for sale now,” in an investor presentation.

The company is also reviewing its coal operations in South Africa as part of the shakeup.

It comes as Anglo announced it would further reduce capital expenditure by $US500-800 million in 2014 and by up to $US1 billion in 2015 to $US5.2-5.5 billion.

By 2017 Anglo is targeting productivity to improve by 80%, with 35% fewer people, through growth and restructuring.

Chief executive of Anglo Mark Cutifani said the company had delivered on major commitments to shareholders.

The company said 71% of Anglo’s priority assets are now performing above plan versus just 21% in 2012.

It also said its coal unit costs in Australia had been cut by 21%, with longwall productivity up 120%.

2014 production guidance increased further for iron ore, met coal, thermal coal, copper and nickel, to enhance margins, Anglo said.

However Cutifani said further changes need to be made.

“We must be disciplined with our deployment of physical and financial resources to focus on those assets that will provide us with the greatest returns and potential upside,” he told investors.

“We are committed to maintaining a robust capital structure which balances long term business value growth with sustainable capital returns to shareholders.”

Anglo said due to falling commodity prices it will have to find an extra $US2 billion, on top of an earlier planned $US4 billion, to reach its 15% return on capital employed target for 2016.

“There is certainly no doubt that we don’t want to pull any punches,” Cutifani said.

“Prices are what they are. Our job is to adapt and continue to improve.

“We’re already outlining improvement programs two or three times more aggressive than our competitors. We’ve got to deliver what we said we’d do by 2016. That would mean 7 to 8% better than we were when we started.”

Anglo said its net debt is expected to peak in 2015 to between $US13.5 – 14 billion and said its dividend is expected to be funded by cashflow from 2016 onwards.

“Our revised operating model is delivering strong results and we are building on those foundations to complete the next phase of the transformation process in line with the strategic objectives for 2015,” Cutifani said.

South32 is the name BHP Billiton has chosen to call its new company.

Under demerger plans, BHP will create a new company that will take its aluminium, manganese, nickel and silver assets.

The majority of South32’s assets are located in the southern hemisphere in Australia and South Africa which are linked by the thirty-second parallel south line of latitude.

The company’s new logo has also been revealed.

Graham Kerr, CEO elect of South32, said the naming was a “major step” for the company.

“Our heritage and the places in which we operate are an important part of our identity,” Kerr said.

“While South32 is grounded in the southern hemisphere, we will retain our global reach and ambition as we seek to exceed the expectations of a global shareholder base. “

South32’s head office will be located in Perth and the company is expected to inherit 25,000 employees.

The company will have a primary listing on the Australian Securities Exchange, a secondary listing on the Johannesburg Stock Exchange and a standard listing in London.

BHP shareholders will vote on the demerger plans in May

CGC KYMON是澳洲一家知名锻造厂，成立于1918年，总部位于悉尼，工厂在Gosford，为澳洲矿山和采石场供应锻件。

Overall Forge is a major supplier to the Australasian and South East Asian mining and quarrying industries, retaining a continuing high profile in the world wide gas and oil exploration industry, as well as supplying componentry to the defence, electricity generating and a variety of other industries. For details, please view the website.

The mining industry has experienced a dire 12 months.

There have been mass layoffs, write downs, and projects being stalled or delayed, whilst exploration has basically come to a standstill.

From the Global Financial Crisis, which seemed to act as the ignition point for this apparently unstoppable boom, commodity prices continually tracked an upwards trajectory, and would do so for a number of years.

For all of the major metals, such as iron ore and gold, there have been huge falls recorded off the back of historically high prices.

Prior to 2014 new ceilings were broken in both these metals, which combined with a skyrocketing coal prices since 2008, essentially created the mining boom bubble, buoying up Australia’s economy as it rode on the back of unbridled growth in China.

These good times – commodity price-wise – occurred as the industry was in its massive development stage, moving their deposits from exploration projects and through feasibility into a construction stage which was an investment and new capital equipment heavy period.

It was a golden age for the industry: one that came to a screeching halt in 2012.

Prices fell, quickly and surely.

Whilst iron ore held out and rescinded slowly, gold tumbled from its high point of almost US$1800 per troy ounce to just short of US$1100 per oz.

Coal, on the other hand, fell off a financial cliff, as thermal coal began its spike in August 2010 from US$ 96.19 to US$ 141.94 in the space of six months after which it just began a constant downwards movement.

Coking coal has also suffered, with ANZ’s head of Australian economics – corporate and commercial, Justin Fabo, stating that the sector “looks oversold” with the market awash with oversupply pushing prices to multi-years lows.

In terms of all coal mining “major producers are showing no sign of supply discipline and demand growth is either waning of under pressure from alternative supply,” Fabo said.

This was echoed by the Bureau of Resources and Energy Economics, which said global commodity supply had grown significantly over recent years, placing pressure on prices in the medium term.

It said producers will need to continue to focus on managing costs and improving their competitiveness in order to survive downturn in price cycles.

“We believe the situation is unlikely to improve in the near to medium term,” Fabo added.

However despite it all there is still optimism for the next financial year.

According to IBISWorld, while the end of 2014 and the start of 2015 will see an overall decline of 1.1 per cent in Australian mining revenues to approximately $232 billion, the 2015/16 financial year is pegged to quickly ratchet up, growing 7.1 per cent, with expectations for this upwards trend to continue into the following financial year with 2016/17 predicted to record an 8.4 per cent increase in revenues as recovery continues.

Fabo added that commodity markets have already entered the second half of 2014 on a mildly positive note, “but it’s likely to be a far more gradual recovery than in the past as it will be tempered by lower liquidity and stronger US dollar as the US Federal Reserve edges closer to raising interest rates”.

“At the same time, the lack of sustainable uplift in commodity prices on the back of increasing geopolitical risks around the world suggest the market is dismissive of their impact on commodity markets.

“But this view looks a bit too complacent and overall we see the risks skewed modestly to the upside for commodity prices in general.”

IBISWorld’s reports into the next few years have outlined how “growing output is forecast to support division growth in the next five years, which is forecast at a compound annual rate of 4.2 per cent, to reach $285.4 billion in 2019/20”.

BREE expects Australian economic growth to moderate to 2.5 per cent in 2014/15, from 3.1 per cent last financial year.

It said mining was the key con-tributor to Australia’s economic growth in 2013-14.

“Capital expenditure, par­ticularly in resources and energy projects, has been a key contributor to Australia’s economic growth over the past several years. As these projects are completed and Australia transitions to a period of higher commodity production, exports of resources and energy commodities and sustained high levels of residential construction activity will be the key drivers of GDP growth over the medium term.”

Overall, there is a positive trend expected.

In the following pages we break down how the commodities have tracked, and how analysts are laying out their future movement, metal by metal.

Because as Grant Thornton stated in its recent JUMEX report “not all commodity markets are the same, despite the uncertain global backdrop”.

“So; while the overarching global factors are certainly very important for each commodity market, each market often has its own bespoke factors that can influence actual and expected prices.

“A key lesson from recent years, however, has been that some of these factors can be anticipated but some cannot: Factoring in the potential for unexpected development is vital,” Grant Thornton said.

Read on to find out what lies ahead for our metals market.

The Iron Ore Outlook

The Copper Outlook

The Gold Outlook

The Silver, Lead, Zinc Outlook

The Nickel Outlook