Mining equipment value plummeting

A new EY report shows the value of a typical fleet of mining equipment has fallen 64% in just two years, as significant falls in commodity prices has resulted in minimal demand for and substantial over-supply of “yellow goods”, or heavy equipment in the Australian mining industry, according to the Australian Financial Review.

The value of what EY regards as a typical fleet – 20 haul trucks, 3 excavators, 2 wheel loaders, and 3 dozers – dropped 46% in the 12 months to 30 September 2015 alone, and a total 64% since the end of September 2013.

Queensland Nickel is underwater, needs capital injection

A joint administrator of Clive Palmer's Queensland Nickel said the company will require a capital injection of “tens of millions of dollars” to avoid liquidation unless there is a rapid improvement in the price of nickel, according to the Sydney Morning Herald.

The disclosure came as it emerged that the total debts of the company could exceed $110 million, with between $70-80 million owed to creditors and $30.8 million currently owed to employees, of which $16 million is owed to staff who were sacked this month.

Vale has cut its dividend entirely after the Samarco tragedy

Brazilian mining giant Vale has indicated its dividend will be cut to zero this year, according to the Sydney Morning Herald.

Vale, which shares the failed Samarco iron ore business with BHP, confirmed on Friday that its top executives have recommended the board of directors cut the dividend entirely.

The Vale executives have also recommended the company change its dividend policy, which requires at least 25% of net income to be to returned to shareholders in dividends.