News Wrap

Rio boss says coal investment is off the agenda

Rio Tinto head Jean-Sebastien Jacques says coal investment is off the agenda and remains confident the company can extract a better price for its Australian thermal coal operations than its rivals even as the worst commodities downturn in decades ravages the sector, according to the Australian Financial Review.

The 44-year-old Frenchman signalled the London-based mining house's ongoing attempts to sell thermal coal mines in Queensland and NSW would be helped by the division's improved performance in 2015.

“[Rio's] thermal coal assets are truly some of the best in the industry,” he said.

“Last year, at the bottom of the cycle, all our coal mines in NSW and Queensland were free cashflow positive which I think is slightly different form the rest of the industry.”

Pengana latest resources fund to close

The resources downturn has claimed another victim after one of Australia's highest profile natural resources funds has closed, according to the Australian Financial Review.

Pengana Capital confirmed it had closed its Global Resources Fund, which had operated since 2007 under the stewardship of Ric Ronge and Tim Schroeders.

Samarco seeks cash from BHP-Vale as reserves dwindle

The Australian Financial Review reports that Vale and BHP Billiton's Brazilian mining joint venture is seeking capital injections from its owners as it runs out of cash after a deadly accident halted output, people with knowledge of the matter said.