News Wrap

IN THIS morning’s News Wrap: Whitehaven boss says coal cuts no price saviour; Hefty penalties looming for Samsung at Roy Hill; and BHP Billiton raises billions fuelling M&A expectations.

Lou Caruana

Whitehaven boss says coal cuts no price saviour

Whitehaven Coal CEO Paul Flynn says production cuts by miners, like those pledged by Glencore for its Australian coal business, will probably fail to support depressed prices because much of the output being curbed is unprofitable, according to the Australian Financial Review.

Glencore has said it would cut Australian coal production by about 15 million tonnes in calendar 2015.

Hefty penalties looming for Samsung at Roy Hill

If Gina Rinehart's pet $10 billion Roy Hill project ships its first ore later than the end of October, it won't be the iron ore billionaire feeling the most heat, according to the Australian Financial Review.

A mere fortnight looms until Samsung faces the prospect of handing over liquidated damages of $55.9 million a month, applied on a daily basis for each day the first shipment is delayed after the end of October.

Samsung had a 30-day “grace period” beyond an initial September 30 deadline before the hefty financial penalties kicked in but despite boosting the number of workers on site to try and get the job done, the deadline whooshed past.

BHP Billiton raises billions fuelling M&A expectations

Extreme volatility in commodity prices and resources stocks in the past few months has not stopped BHP Billiton raising the equivalent of almost $US6.5 billion ($A9 billion) in multiple markets and currencies, according to the Australian Financial Review.

The miner has completed the hybrid process that it had been running for three weeks, which has given it a large war chest for paying debt and perhaps an opportunistic investment.

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