Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  BHP Billiton Limited    BHP   AU000000BHP4

BHP BILLITON LIMITED (BHP)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

BHP Billiton : Freeport declares force majeure at Indonesia copper mine

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/17/2017 | 10:41pm CEST

TORONTO (Reuters) - Freeport-McMoRan Inc (>> Freeport-McMoRan Inc) said on Friday it cannot meet contractual obligations for copper concentrate shipments from its Grasberg mine in Indonesia following a five-week export ban, the second big producer in a week to declare force majeure.

TORONTO (Reuters) - Freeport-McMoRan Inc (>> Freeport-McMoRan Inc) said on Friday it cannot meet contractual obligations for copper concentrate shipments from its Grasberg mine in Indonesia following a five-week export ban, the second big producer in a week to declare force majeure.

Production at Freeport's giant mine in Papua, Indonesia, came to a standstill last week after the government banned copper concentrate exports on Jan. 12, part of an effort to boost Indonesia's smelter industry.

BHP Billiton's (>> BHP Billiton plc) (>> BHP Billiton Limited) Escondida in Chile, the world's largest copper mine, declared force majeure on Feb. 10, two days into a strike that halted output.

"Those two mines are currently offline and that's about 2 million tonnes - almost 10 percent of global copper supply – which is a big deal," Jefferies analyst Chris LaFemina said.

Grasberg was expected to produce 800,000 tonnes of copper in 2017, about 3.5 percent of global supply, he said.

For each month the mine is offline, the world copper supply is reduced by some 90 million pounds, said LaFemina, who adds Freeport's 70-million-pound share to a share for joint venture partner Rio Tinto (>> Rio Tinto plc) (>> Rio Tinto Limited).

Copper prices, which have surged to 20-month highs on supply worries, slipped to $5,960 a tonne on Friday on profit-taking. But strong demand from top consumer China and supply disruptions are expected to help support prices.

If the two mines remain halted for a month, prices could pop up to $3 a pound from $2.70 currently, LaFemina said.

Shares of Freeport, the world's biggest publicly traded copper miner, declined 1 percent Friday to close at $14.91.

Under new Indonesian mining rules introduced in January, Freeport must switch from its current contract of work to a special mining permit before applying for export permits.

The new permit would require Freeport to pay taxes and royalties it was previously exempt from and divest up to 51 percent of its Indonesian unit, an increase from a previously set 30 percent. To date, it has divested 9.36 percent.

The permit may also remove or limit Freeport's right to take disputes to an international arbitration court, analysts say.

Indonesia's mining ministry recommended on Friday that Freeport be allowed to export 1.1 million tonnes of copper concentrates until Feb. 16, 2018.[L4N1G23H2]

But that is conditional on Freeport accepting the special mining permit, said spokesman Eric Kinneberg, repeating that the Phoenix, Arizona-based miner will only agree to a permit providing the same fiscal and legal protection in its current contract.

(Reporting by Susan Taylor; Editing by Alistair Bell and Leslie Adler)

By Susan Taylor

Stocks mentioned in the article
ChangeLast1st jan.
LME COPPER CASH -0.80% 6783.5 End-of-day quote.-5.54%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BHP BILLITON LIMITED
05/17Australia trade minister says 'mobilised' on Treasury Wine issue
RE
05/17BHP BILLITON : faces class action lawsuit
AQ
05/15Oil Rally Aiding BHP Billiton Shale Sale, Says CEO
DJ
05/15BHP BILLITON : delivering value and returns
PU
05/15BHP Billiton CEO Says Company Still Focused on Further $2 Billion Productivit..
DJ
05/07Cooper Energy - Minerva Gas Plant acquisition
AQ
05/04BP Considers Acquiring BHP Billiton Energy Assets -Bloomberg
DJ
05/02Minerva Gas Plant acquisition
AQ
04/26VEDANTA RESOURCES : INSIGHT - How Agarwal positioned Vedanta in global markets
AQ
04/26BHP BILLITON : House to investigate BHP Billinton social fund
AQ
More news
News from SeekingAlpha
05/20BHP's EV Plans For Nickel West - More Than Putting Lipstick On A Pig 
05/18Mining sector?s next growth phase to come from M&A, Jefferies says 
05/16BHP outlines plan to add 40% to its value via six strategies 
05/14BHP, Rio Tinto run higher as iron ore prices rise 
05/11Commodities Take Over Market Leadership 
Financials ($)
Sales 2018 45 377 M
EBIT 2018 16 060 M
Net income 2018 7 215 M
Debt 2018 11 786 M
Yield 2018 4,75%
P/E ratio 2018 17,62
P/E ratio 2019 17,03
EV / Sales 2018 3,17x
EV / Sales 2019 3,17x
Capitalization 132 B
Chart BHP BILLITON LIMITED
Duration : Period :
BHP Billiton Limited Technical Analysis Chart | BHP | AU000000BHP4 | 4-Traders
Technical analysis trends BHP BILLITON LIMITED
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 25,3 $
Spread / Average Target -1,3%
EPS Revisions
Managers
NameTitle
Andrew Mackenzie CEO & Non-Independent Executive Director
John Kenneth Norman MacKenzie Chairman
Peter Beaven Chief Financial Officer
Diane Jurgens Chief Technology Officer
Wayne William Murdy Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
BHP BILLITON LIMITED15.25%132 018
BHP BILLITON PLC14.15%132 018
RIO TINTO10.10%104 409
RIO TINTO LIMITED13.19%104 409
ANGLO AMERICAN20.04%35 674
FREEPORT-MCMORAN-11.50%24 311