Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Glencore Xstrata will not proceed with the development of its Balaclava Island Coal Export Terminal, with its expected 35 million tonnes of coal a year export capacity and over A$1 billion in development costs. Glencore yesterday reported an increase in first-quarter coal production across Queensland and New South Wales despite a decline of between 23 percent and 30 percent in the price of the commodity. Page 19.
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Common law precedent set in the O'Brien v Bank of Western Australia Limited case in the New South Wales Supreme Court of Appeal undermines the validity of 'suspension clauses' included in loan contracts by Australian banks, intended to force customers to repay loans in full with no offset or deduction. The decision will change the way in which debts can be recovered from borrowers and guarantors, allowing customers to challenge whether the loan is due and payable to the financier. Page 21.
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Reinsurance costs will rise as companies negotiate new terms for their cover despite a relatively sedate period for natural disasters, said Australian chairman of insurance broker Aon Corporation Australia, Steve Nevett. However, the increases were likely to be smaller than those seen in recent years, Mr Nevett added. Page 21.
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Credit Suisse Holdings Australia has reported a profit fall for the 12 months ending December 31 2012, down to A$23.7 million from A$66 million for 2011. Fee and commission income fell 34 percent, as revenue dropped to A$402.7 million for 2012, compared to A$530 million the previous year. Page 21.
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Former Bankwest executive Ian Corfield has been appointed chief executive of Aussie Home Loans. John Symond, chairman and founder of the Australian mortgage broker, said he was committed to maintaining Aussie's independence and that the appointment had nothing to do with Bankwest's relationship with the Commonwealth Bank of Australia. Page 21.
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Trend-savvy buying and better stock management will lead to an increase in full-price sales and less discounting at Myer , said chief executive Bernie Brookes. Inventory management had been a problem at Myer, requiring significant discounting to clear stock, but inventory control across the major retailers had improved considerably over the last few years, Mr Brookes added. Page 22.
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THE AUSTRALIAN (www.theaustralian.com.au)
Australian companies driven by offshore earnings, including QBE, News Corp, and Treasury Wine Estates , have rallied after the Australian dollar dropped to near parity with the greenback in late trade. Goldman Sachs yesterday warned that A$145 billion would be lost from government revenue between now and 2015-16 if the dollar remained at parity. Page 17.
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The Australian dollar will need to fall further to counteract a wave of cheap imported groceries, warned food manufacturers, as it fell below parity with the U.S. dollar yesterday. For currency exposed sectors like manufacturing and tourism, the dollar was still too strong said Terry Davis, chief executive of Coca-Cola Amatil, who added the drop compared to the euro was beneficial. Page 17.
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Recently appointed Stockland chief executive Mark Steinert has unveiled plans to increase the value of its warehouses, business parks and shopping centres by up to A$2.88 billion over the next five years. The property developer will also begin selling stakes in its office building and shopping centre assets. Page 17.
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Engineering firm Coffey International has lowered its full-year earnings guidance to between A$27 million and A$29 million amid warnings of a protracted economic downturn impacting construction projects beyond the mining sector. Coffey will cut 150 staff, around 10 percent of its Australian geosciences division, after 54 contracted projects across the resource and infrastructure sector were cancelled or delayed. Page 17.
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Australian coal hauler Aurizon Holdings has approached potential investors to acquire a minority stake in its coal railway infrastructure. Page 18.
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Arena Investment Management will list a A$240 million property fund on the Australian Securities Exchange, with a A$75 million equity raising next week to fund A$20 million buyback options for existing investors in the Arena Childcare Property Fund. The remaining proceeds will contribute to a A$65 million pool for adding education properties, aged-care facilities and childcare centres to its portfolio. Page 18.
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Explosives manufacturer Incitec Pivot has reported net earnings for the six month to March of A$110 million, a 31 percent drop from A$144 million for the same period last year. The Australian multinational's fertiliser business underperformed, earning around A$50 million before tax and interest, while its explosives business grew. Page 18.
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Gresham Partners have been employed by the reclusive Foster family to review its 61 percent stake in the North Australian Pastoral Company with the possibility of selling. The company has been majority owned by the Foster family for 75 years and controls one of Australia's biggest cattle empires, valued at A$440 million, with 12 cattle stations across the Northern Territory and Queensland. Page 19.
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Australian medical entrepreneur Edmund Bateman has cut his 7 percent holding in Primary Health Care to 4 percent, donating around 15 million shares worth A$80 million to family and charity. Mr Bateman said he will continue to serve as managing director of the company, which he founded, and the donations would not affect his commitment. Page 19.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Rio Tinto has been ordered to pay A$200 million in royalties to Hancock Prospecting and Wright Prospecting for iron ore deposits based on a 43-year-old agreement signed when the deposits were sold in the 1970s. Rio said it was reviewing the decision and considering an appeal. Page 21.
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The average credit card balance dropped 2.4 percent to A$3,256.70 for the year to March as Australian households remain debt shy, revealed data released by the Reserve Bank of Australia yesterday. The average credit card balance accruing interest fell even more rapidly, dropping 5.7 percent to A$2,294.30, CommSec economists reported. Page 22.
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THE AGE
The Smart Grid, Smart City project, headed by electricity infrastructure company Ausgrid and worth A$100 million, aims to improve efficiency in the electricity network. The scheme draws to a close in September and will release analysis in 2014, with both Australian Liberal and Australian Labor Party politicians signalling they are open to supporting the project pending the release of the final report. Page 26.
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