Fortescue Metals Group
Fortescue is set to consult with its legal counsel following the determination by the Western Australian Economic Regulatory Authority over floor and ceiling costs for The Pilbara Infrastructure, owned by the miner.
The ERA has ruled that Fortescue can charge between $84.7 million and $316.9 million per annum for access to TPI. Fortescue was hoping to charge somewhere between $73 million and $576 million for use of the infrastructure.
ERA used technical consultants AECOM Australia & New Zealand to provide advice on the costs. AECOM previously forecasted for the failed Rivercity Motorway in Brisbane.
Fortescue shares fell 2.9 per cent yesterday to close at $4.66.
Steel miner Arrium has been slashed to a 92 cent price target by Citigroup. Citi is the only broker with a sell recommendation on Arrium.
Despite the company's attempts to address issues in its disappointing steel and recycling segments, headwinds still exist for Arrium. It has lifted prices by 5 per cent to offset the weaker Australian dollar, but domestic demand is expected to remain flat.
Market weakness has some bar and rod mills only operating at around 60 per cent of capacity, while import competition and low manufacturing efficiency are also adding to Arrium's problems.
Arrium's stock is up 48 per cent in the past twelve months.