PRESS DIGEST-Australian Business News - Sept 1

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)

--Toll road operator Rivercity Motorway (RCY.AX) yesterday revealed that it was losing A$10 million per month due to less than expected traffic volumes on infrastructure, such as Brisbane's Clem Jones Tunnel. The company wrote down the value of its toll-road by 75 percent (A$1.56 billion), saying it was holding talks with banks over extending financing. Chairman Robert Morris said that traffic volumes needed to improve "markedly," if the group were to meet its financial obligations. Page 47.

--Canada-based Potash Corporation of Saskatchewan (POT.TO) has accused mining company BHP Billiton (BHP.AX)(BLT.L) of making "inappropriate and highly unethical" cold calls to customers of the fertiliser company. In a letter sent yesterday, PotashCorp accused BHP of sowing "seeds of doubt and confusion" over Potash's future. The correspondence was sent as BHP chief executive Marius Kloppers spoke to shareholders about the value of the miner's US$40 billion hostile bid for Potash. Page 47.

--The executive chairman of iron ore mining company Hancock Prospecting, Gina Rinehart, has praised rival Rio Tinto (RIO.AX)(RIO.L)for approving a proposed expansion of the Hope Downs joint venture in West Australia's Pilbara region. The agreement involves a A$757 million investment from Hancock in the US$1.6 billion development. Ms Rinehart yesterday said that Australia needed to be more competitive, given the growing focus on exploration in Africa. Page 47.

--Phil Jobe, chief executive of aluminium products maker Capral, is urging the Australian Customs Service to set duties on aluminium products imported from China with consideration to those set by Canada and the United States (US). Mr Jobe yesterday said that Australia currently imposes an average duty of 5 percent, compared with 33 percent in Canada and the US. Federal Home Affairs Minister Brendan O'Connor, who is yet to make a ruling, has not indicated a time frame. Page 48.

THE AUSTRALIAN (www.theaustralian.news.com.au)

--Nickel producer Minara Resources MRE.AX has reported a A$39.3 million first-half net profit, despite increasing costs and dwindling production at the Murrin Murrin plant in West Australia. Managing director Peter Johnston yesterday said a A$111 million cash return had been made to investors. "Minara's focus is to complete our statutory maintenance shutdown in October and then consolidate a steady production profile at Murrin Murrin," added Mr Johnston, who also chairs the Minerals Council of Australia. Page 32.

--Property company Becton (BEC.AX), which reported a A$4.1 million net profit for fiscal 2010, is planning to carry out a recapitalisation and debt refinancing plan. The deal, which is backed by the Bank of Scotland's Australian offshoot, BOSI, involves converting at least A$80 million of outstanding liabilities to equity. Becton chief executive Matthew Chun yesterday said the conversion also included a share issue to BOSI and convertible note holders. "It will allow us to go forward," he added. Page 32.

--The New South Wales Supreme Court yesterday heard the co-founder of property group MFS, Michael King, proceeded with a proposed acquisition despite knowing there was no way to fund it. Special Counsel Adam Bell, who acted on behalf of MFS liquidator Bentleys Corporate Recovery, questioned Mr King about when he discovered the group was unable to access revenue from the Stella travel business. "I do not recall getting legal advice from MFS on Stella's cash lock-up," Mr King said. Page 32.

--Qantas Airways' (QAN.AX) mainline international services yesterday reported a 9.1 percent jump in passenger numbers during July this year. Traffic statistics for the month showed a 2.7 percent rise in Qantas international passengers compared with 12 months ago, while discount offshoot Jetstar experienced a 14.4 percent increase. Russell Shaw of financial services group Macquarie said that lower fuel prices had removed the need to resort to the same kind of 2008 "highs" used to improve profitability. Page 32.

THE SYDNEY MORNING HERALD (www.smh.com.au)

--The Administrative Appeals Tribunal has overturned an Australian Securities and Investments Commission ban on Lance Rosenberg, founder of Tricom Equities, from the financial services industry. Tribunal deputy president Robin Handley and senior member Stephen Frost yesterday ruled that Tricom did not mislead the market by failing to declare that its counter party in 12 offmarket trades was parent company Tricom Holdings. Pg 1.

--Media company Southern Cross Media (SXL.AX) has reported an A$82 million full-year loss, following the adverse effect of writedowns to the value of American Consolidated Media. Chief executive Rhys Holleran yesterday said that improved advertising conditions and controlled spending had delivered A$129 million in earnings before interest, tax, depreciation and amortisation. Page 4.

--Australia risks hindering its economic bargaining position, if it allows China to become a direct stakeholder in its mining or agriculture sectors, Deutsche Bank global consultant Philippa Malmgren has warned. Ms Malmgren yesterday told an MLC investment conference that the Communist-ruled Asian nation's desire to control the international supply chain would increase in line with its growing demand for natural resources. "What we see in China is huge focus on controlling the supply that it needs," she added. Page 5.

THE AGE (www.theage.com.au)

--Wealth management company AMP (AMP.AX) yesterday warned that competition in the sector would be eroded if fund manager IOOF failed to acquire the North retail investment platform as a part of National Australia Bank (NAB.AX) 's proposed merger with AXA Asia Pacific AXA.AX. According to AMP chief executive Craig Dunn, IOOF would carry out a major restructuring whilst expanding its operations. However, failure to do so would render the Australian Competition and Consumer Commission unable to "restore the present competitive position." Page B5.

--Shopping centre operator Centro Properties (CNP.AX) has reported a A$173.8 million underlying profit for fiscal 2010. The business yesterday revealed there were major challenges in realising the company's refinancing program. The Centro Group, which Centro Properties is part of, has A$18.6 billion of investment properties and A$18.4 billion of debt. No dividend was announced for the year. Page B10.

--Real estate company CB Richard Ellis (CBRE) has listed the sale of a 21.8-hectare site marked to become the gateway to Melbourne's Cranbourne West industrial precinct. CBRE's David Aiello and Andrew Stewart will continue their expressions of interest campaign until September 23. Mr Stewart yesterday said the land holding would benefit from its accessibility to the Port of Hastings. Page B16.

--Property company Dexus Property Group (DXS.AX) and pallet provider Loscam are collaborating on developing Loscam's Australian pallet repair centre in the Melbourne suburb of Laverton. The A$10 million project is Loscam's first growth plan since being purchased by China Merchants Group earlier this year. Commercial manager Daniel Bunnett yesterday said the development would complement Loscam's existing operations at Hampton Park. Page B17. --