Resources Minister Martin Ferguson is increasing the pressure on coal miners to end their two-year dispute with BHP Billiton and Mitsubishi.
According to The Australian, Ferguson has called for unions to accept a pay deal with the Queensland coal mining giants, warning that both the workers and the companies could “kill the golden goose” as Australia’s export commodity prices continue to fall.
“One way or another, it’s got to be settled,” he was quoted as saying.
Ferguson tallied the workers’ potential pay increase at 15% over three years with an inflation of less than 2%.
"I must say I always took the view as a former union official you pocket what you can."
MMG chief executive Andrew Michelmore has told The Australian there is still air left in the Chinese bubble.
"In people's minds, it is like the bubble has burst and China is going backwards. It hasn't,” he said.
“Physically, China is actually consuming more than it has in the past. And for me that is growth in demand.
"So while the rate of growth might have slowed, China is still growing. Yes, it got overheated and it has been slowed down, but it is going to come back.”
MMG is Melbourne-based, Hong Kong-listed and Chinese-controlled.
BHP Billiton has terminated part of a $A120 million contract with NRW Holdings in Port Hedland, according to The Australian Financial Review.
The cancelled portion of the agreement relates to the upgrading of an ore blending yard – or storage facility – at Nelson Point. However, arrangements for Finucane Island have been maintained.
The canning of the Nelson Point project would affect NRW and at least two other contractors, sources said, as the mining services industry reeled from the shelving of projects and spending cuts.
NRW confirmed the cut but said the impact would not be material.
Finally, following on from earlier speculation that Fortescue Metals Group may be considering selling a stake in its Chichester projects, the AFR has reported that Canada’s Teck Resources may be the most likely buyer.
Teck already owns a 2.9% stake in FMG, although sources suggest Glencore International could also be interested in a deal that could be valued at more than $US2 billion.
EL&C Baillieu analyst Adrian Prendergast estimated the sale of 15-20% of FMG’s Chichester operations – comprising the Christmas Creek and Cloudbreak mines, but not a corresponding stake in port and rail infrastructure – could fetch $2.3-$3 billion.
