Monadelphous hits back at WICET allegations of defective work
Engineering group Monadelphous has hit back against claims by Queensland's Wiggins Island Coal Export Terminal that its work is sub-standard, arguing it is not aware of any alleged defects, according to the Australian Financial Review.
The Perth-based company said on Tuesday that it had “no knowledge” of a potential claim by WICET after the terminal said on Sunday that it had found “serious defects” with Monadelphous' work, with rectification costs estimated at more than $30 million.
BHP cuts forecast for China peak steel output by 15%
The Australian Financial Review reports that steel production in China will peak at less than 1 billion tonnes as the world's biggest producer accelerates its transition to a consumer-driven economy, according to a new forecast from BHP Billiton.
Production will peak at between 935 million tonnes and 985Mt in the middle of next decade, the Melbourne-based company said Tuesday, when reporting profit plunged 52%. The prediction is as much as 15% less than its May estimate that output would peak between 1 billion and 1.1 billion tonnes in the mid-2020s.
Citi says Fortescue needs bulk asset sales
Fortescue Metals Group would need to sell around 40% of its operating assets to cover its debt repayments, should iron ore prices average around $US40 a tonne over the next three years, according to the Australian Financial Review.
That's the view of Citi analyst Clarke Wilkins and his team who say asset sales worth around $4.8 billion may be needed to meet Fortescue's $6 billion in debt maturing in 2019, assuming Citi's bearish iron ore price forecasts.
