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)
The Pilbara Infrastructure (TPI), a division of Fortescue Metals Group, has slowed the decision on Brockman Mining's proposed shared usage of its railway line. Brockman Mining's use of the line could inhibit use by other parties, TPI told the West Australian Economic Regulation Authority. Page 15.
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Nine Entertainment Co will raise new debt to partially fund its A$140 million acquisition of WIN Corp's Adelaide television station. Chief executive David Gyngell says Nine will look to raise funds when the deal is finalised later this year, potentially returning to the United States debt market having successfully raised A$700 million debt there in January. Page 17.
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Chinese-controlled Australian magnetite producer Grange Resources has announced the resignation of chief executive Richard Mehan and closure of its Perth office, fuelling speculation it may mothball its A$2.9 billion magnetite iron ore project in Western Australia. Chief operating officer Wayne Bould will take over as chief executive and Perth office operations will be transferred to Burnie in Tasmania, close to the company's Savage River mine. Page 17.
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The Financial Planning Association has urged Australian senators and MPs to delay the vote on a bill which would place financial advisers under the regime applying to tax agents. Chief executive Mark Rantall warns the industry has not been able to prepare ahead of the July 1 introduction date as it remains unclear exactly what requirements and obligations financial planners have to satisfy in order to comply with the Tax Agents Services Act. Page 18.
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Life insurance companies will resume negotiations with the Financial Services Council (FSC) on the design of a regulatory framework to lower the cost of life insurance policies, prevent churning, and allow the return of large-up front commissions if policies lapse. Negotiations broke down in February when the FSC failed to gain unanimous support for the agreement, but insurers have agreed to recommence following pressure from the Australian Securities and Investments Commission. Page 18.
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Self regulation of the contract for difference (CFD) and derivatives industry is unsuccessful and imposed regulation is needed, according to the Australian CFD Forum, which represents about two-thirds of the CFD market. The largest industry issue involves the improper use of client funds. Australia is one of two countries that allow CFD providers to use client money in their own hedging operations, the CFD Forum emphasised. Page 19.
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Westpac Banking Corporation expects two further 0.25 percentage point interest rate cuts from the Reserve Bank of Australia in the near term, says Rob Whitfield, head of the bank's institutional division. Credit growth in Australia has slowed to a similar rate as gross domestic product (GDP), previously running at about three times GDP, says Whitfield, who also says Westpac will support companies doing business in Asia as it seeks to increase revenue from the region to A$750 million over the next five years. Page 19.
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Shrinking funding markets for junior miners could inhibit future resources industry growth, according to PricewaterhouseCoopers. The weaker outlook for commodity prices has made it difficult for smaller resource companies, which often initiate new projects that are later purchased by major resource companies, to get financial support. The mining industry's return on capital last year dropped to a ten year low of eight percent, causing larger companies to restrict exploration to reduce costs. Page 20.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Struggling sports and casual wear manufacturer and retailer Billabong has announced a profit downgrade to between A$67 million and A$74 million for earnings before interest, tax, depreciation and amortisation, falling from previous guidance of between A$74 million and A$81 million. The company says takeover discussions with United States private equity firms Sycamore Partners and Altamont Capital Partners had concluded with no agreement. Page 17.
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Explorer and developer Rex Minerals has signed a US$550 memorandum of understanding with a group of Chinese companies for funding to develop its US$800 million Hillside copper project in South Australia. Melbourne-based mid-tier mining company MMG is currently finalising a deal with China Development Bank Corp to organise and underwrite US$1 billion of the US$1.5 billion required to develop its Dugald River zinc mine in Queensland. Page 17.
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The Reserve Bank of Australia (RBA) left the cash rate unchanged at 2.75 percent with governor Glenn Stevens' comments indicating scope for more reductions. The RBA regards the current US95 cents to US98 cent range of the Australian dollar as high, says Scott Haslem, chief economist at UBS. The Ausssie will be around US85 cents in a year's time, predicts Credit Suisse. Page 17.
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A "spiral of rising costs" is creating risks that may shrink foreign mining investment, according to resource company Total Upstream president Yves-Louis Darricarrere. Investors wish to see tender duplication eliminated, open contracts introduced and foreign labour allowed in remote areas during peak production cycles. Page 18.
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Net profit for the top 40 global miners fell 49 percent to A$68 billion in 2012, due to impairment charges of A$45 billion, lower commodity prices and higher costs. According to PricewaterhouseCoopers annual report of global trends in the mining industry, project downsizing and deferrals have resulted in a reduction of expected capital expenditure for 2013 by A$30 billion, from A$140 billion in 2012 to a predicted A$110 billion this year. Page 18.
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The A$800 billion "infrastructure deficit" preventing economic growth could be "an economic mirage" since government infrastructure funding has increased in the last six years, says Grattan Institute chief executive John Daley. The only evidence of the deficit is a "wish list" of projects by construction firms, says Daley. Page 18.
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The Queensland Investment Corporation has made its first direct entry into the United States property market with a A$900 million deal to acquire a 49 percent joint-venture stake in a shopping centre portfolio. The state-government backed investment group will pay A$435.6 million in cash for an interest in 8 regional shopping malls with the excess funded by existing debt on the properties. Page 19.
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John Kluver, executive director of the Corporations and Markets Advisory Committee, which advises the Australian government on corporate law, predicts the establishment of central online voting platforms will remove the need for proxy voting at annual general meetings in the near future. Kluver says the technological developments are likely to take the form of a standardised central platform managed through the Australian Securities Exchange or by some other independent company. Page 19.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
April retail sales rose 0.2 percent seasonally adjusted, bringing down the performance consumer discretionary stocks. Apart from food sellers, retailers are battling weak consumer spending and competition from online sellers. Page 27.
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Supermarket chain Coles is defending pressuring suppliers on prices, saying some suppliers benefit from higher profit margins locally while selling products at a lower price internationally. Coles chief executive Ian McLeod says lower prices lead to more competition, community support, farm sales, jobs and job security. Page 27.
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THE AGE (www.theage.com.au)
Australia's onshore gas resources could surpass 1000 trillion cubic feet, significantly beyond the 396 trillion cubic feet currently identified, according to a national government report. Shale gas resources are extensive, says Professor Peter Cook, who headed the expert working group that compiled the report. With issues such as a lack of pipelines, local shale gas production would cost around A$6 to A$9 per gigajoule, compared to A$4 a gigajoule in the United States. Page 26.
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A settlement of A$12 million payable by June 30 would end legal action against Nathan Tinkler and other directors of Mulsanne Resources over the A$28.4 million in outstanding debts, Blackwood Corporation has announced. Legal action over insolvent trading will resume on July 1 should the payment not be made. Page 28.
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