News Wrap

IN THIS morning’s News Wrap: Glencore boss berates BHP; Rio CEOs for new mines; Hockey clarifies carbon compo comments; and Gina Rinehart renews call to cut mining labour costs.

Staff Reporter

Glencore boss berates BHP, Rio CEOs for new mines

Glencore chief executive officer Ivan Glasenberg has criticised his recently departed mining CEO peers for swamping the industry with new mines that led to a surplus in metals and trimmed profits, according to the Sydney Morning Herald.

“The big guys really screwed up,” Glasenberg, 56, told investors today in a presentation.

“We've always been wanting to keep building and keep putting the cash, which we generate into new assets. That's what we've got to stop doing as a mining industry. We've got to learn about demand and supply.”

The biggest mining companies, including BHP Billiton, Rio Tinto and Anglo American, reported lower profits this month on rising costs and waning global growth. The CEOs of those three have quit or announced plans to go after investors criticised them for takeovers that were later written down.

Hockey clarifies carbon compo comments

Opposition treasurer Joe Hockey has raised the prospect of compensating businesses adversely affected by the repeal of the carbon tax from funds set aside to pay for the Coalition’s Direct Action policy, according to the Australian Financial Review.

While the Opposition has previously consistently maintained that a future Coalition government would not be required to compensate businesses that make investments on the basis of the carbon tax, Hockey flagged payments could be made on a case-by-case basis.

Gina Rinehart renews call to cut mining labour costs

Mining magnate Gina Rinehart has again voiced complaints about Australia's high labour costs, citing increased competition from foreign countries as a threat to the industry, according to The Australian.

Speaking at a mining awards function in Sydney last night, Rinehart, the executive chairwoman of Hancock Prospecting, said Australia needed to use "every advantage" to remain internationally competitive as mineral-wealthy countries continued to expand their operations.