Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ iron sand exports to boom

NZ iron sand exports to boom as BlueScope adds Taharoa capacity, TTR seeks start date

Dec. 30 (BusinessDesk) – New Zealand’s iron sand exports could soar to almost 10 million tonnes a year by 2016, as Australia’s BlueScope Steel adds shipping capacity at its Taharoa site and Trans-Tasman Resources remains hopeful of approval for its offshore mining venture.

ASX-listed BlueScope said last week it will introduce a 175,000 tonne slurry loading vessel at Taharoa, south of Kawhia, in 2016 and spend A$50 million through 2018 on mining, processing and ship loading equipment.

The third ship will add 1.3 million tonnes a year of export capacity at Taharoa, which is expected to rise to about 4 million tonnes annually in 2016, the Melbourne-based company said. It estimates the resource at Taharoa is sufficient to produce 4 million tonnes a year for 15 years.

Trans-Tasman plans to extract between 4 million and 5 million tonnes a year starting in 2016 from a 65.76 square kilometre area off the North Island coast, west of Patea. Its application suffered a setback this month when the Environmental Protection Authority extended the submission period until Jan. 28 and pushed back the start date for public hearings after administrative mis-steps.

The company has said it plans to raise as much as US$500 million in debt and equity from a combination of existing and new shareholders, and prospective Chinese customers in mid-2014, assuming it wins regulatory approvals.

BlueScope’s shares have soared about 66 percent on the ASX this year as it acquired businesses, made progress in Asia and stabilized its Australian business. BlueScope’s New Zealand operations accounted for just 8 percent of revenue last year at A$681 million. Sales and earnings both fell as an increase in iron sand volumes wasn’t enough to offset weaker iron ore prices on which iron sand is benchmarked.

“With a low cost of extraction, our iron sands operations are a valuable part of BlueScope’s business portfolio – making an excellent contribution to earnings from exports and providing low cost iron unit feed to New Zealand steelmaking,” said chief executive Paul O’Malley.

The stock was last at A$5.72 and is rated a ‘buy’ based on the consensus of 12 analysts polled by Reuters. It is trading at about 17.6 times forecast earnings, versus 15.4 times for its peers, based on Reuters data.

A BlueScope spokesman said the company is likely to hire more workers at Taharoa following the expansion.

The Taharoa mine site is leased from local Maori landowners and has been in production since 1972. It is one of two sites where BlueScope extracts iron sand in New Zealand, along with the 1.2 million tonnes a year Waikato North Head mine. BlueScope also operates the Glenbrook steel mill south of Auckland.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news