Rio’s Bell Bay risks closure
The Australian Financial Review reports that Rio Tinto's Bell Bay aluminium smelter could face a long-term production cutback or even closure with the loss of hundreds of jobs if it loses any more supply in Tasmania's electricity crisis, general manager Ray Mostogl​ says.
Bell Bay has three pot lines capable of producing a combined 190,000 tonnes and has agreed to cut back its electricity use by 10% for 4-5 months to help ease the crisis caused by the failure of the Basslink undersea cable and the drought.
"We're at a point now where we have slowed that chemical reaction up as slow as we possibly can, and any more reduction in energy would really require significant cutbacks in our production, which potentially puts that part of the process or that volume out of action for a couple of years,"Mostogl said.
Analysts caution resources rebound could be bear market rally
The Australian notes that resource stocks like Fortescue Metals Group, Santos and BHP Billiton are well up from recent lows.
But despite the recent rally in resources stocks, some still urge caution given there has been no change in the outlook for sluggish global growth or increasing supplies of commodities this year.
“I don’t think this is the start of a new resources boom,” saidPengana Capital global resources fund manager TimSchroeders.
“The world hasn’t changed that much overnight, so there probably is a lot of short covering, but also beneath the surface — and we are only going to know six months hence — with the volatility in currencies, and evidenced by gold’s rally, are we seeing a move to hard assets and away from paper (currencies) … it’s a particularly interesting conundrum.”
Silver Lake chases BNM cash
Gold miner Silver Lake Resources heads a list of creditors seeking to recoup almost $A16 million from Perth-based BNM Australia Group which has been in liquidation since December, the West Australian reported.
BNM, co-founded in 2014 by managing director Cameron McLeod and technical director Steven Parnell, was the private consortium that leased Silver Lake’s Tuckabianna mill in the Murchison last year.
Documents by liquidator DCS Advisory show 161 creditors are seeking $15.97 million, including Silver Lake ($7.64 million).
BNM did not oppose the appointment of liquidators in December, but its directors have argued the company has “significant claims” for financial compensation against unnamed third parties.
