News Wrap

IN THIS morning’s News Wrap: dollar fall a dubious dividend for miners; CSG exports 'will spark coal revival'; and Rio’s Oyu Tolgoi begins copper, gold exports.

Staff Reporter

Dollar fall a dubious dividend for miners

There is no bonanza for miners amid the Aussie dollar’s dramatic slump, even if mineral commodities are priced in US dollars, says The Australian.

The problem for the miners is that the dramatic plunge in the exchange rate has also been accompanied by a slump in commodity prices as they response to growth fears in China and the US easing back on economic stimulus.

That the dollar's fall is no bonanza was reflected yesterday in the share price of industry leader BHP Billiton slumping 2.55 per cent to close at $32.15, leaving it well short of the 52-week high in February of $39.34.

CSG exports 'will spark coal revival'

Energy Australia chief Richard McIndoe says high gas prices driven by $60 billion of coal seam gas export plans are set to make existing efficient gas-fired power plants such as its four-year-old Tallawarra plant south of Sydney uneconomic, according to The Australian.

This will encourage greater use of coal-fired power, the head of the Hong Kong-owned energy company formerly known as TruEnergy said.

Rio’s Oyu Tolgoi begins copper, gold exports

Rio Tinto will begin exporting copper and gold from its $6.2 billion mine in Mongolia for the first time today after negotiating with the country’s government over export revenue and overcoming cost blowouts, according to the Australian Financial Review.

Oyu Tolgoi is a partnership between the government of Mongolia, which owns 34%, and 66% owner Turquoise Hill, formerly Ivanhoe Mines.

Rio holds a 51% stake in Turquoise Hill and manages the Oyu Tolgoi project.