BHP Billiton boosts exploration spending 29%

BHP Billiton said on Monday it plans to boost its exploration budget by 29% to about $US900 million ($1.2 billion) next year, as the global miner counts on new finds of oil and copper to drive growth in a tough market rather than mergers and acquisitions, according to the Australian Financial Review.

The figure represents 18% of BHP's total capital budget of $5 billion over fiscal 2017 and comes amid efforts by big miners to maintain growth while tightening balance sheets.

China says US protecting uncompetitive steel mills

China has pushed back after the US boosted anti-dumping and anti-subsidy duties on some of its steel products, saying mills in the world's biggest economy lack competitiveness because they are over-protected, according to the Sydney Morning Herald.

Protectionism in the US steel sector is deeply worrying as these measures will only exacerbate friction without helping to solve the problem of shrinking global demand, China's commerce ministry said in a statement on Thursday. “China believes that the lack of competitiveness in the US steel industry is the result of over-protection,” it said.

Evolution Mining may tie up with Northern Star

If merged, Evolution Mining and Northern Star Resources could create a goldminer of international significance and a clear target for large domestic and offshore investors seeking an alternative to Australia's biggest gold producer, Newcrest Mining, according to the Australian Financial Review.

With an estimated $7 billion market value, it would be big enough to sit well inside the S&P/ASX100 and move quickly up the all-important global gold indices, driving passive buying.

From a financial markets perspective, there is considerable logic to a tie-up. As always, the biggest obstacle to actually doing the transaction would be price.