PRESS DIGEST-Australian Business News - July 6

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)

China's steel-making association says it will continue to push mining companies BHP Billiton (BHP.AX) and Rio Tinto (RIO.AX) for cheaper iron ore prices, despite increased production by Chinese steel mills.

The China Iron and Steel Association (CISA) says it wants a larger discount than the 33 percent benchmark price agreed to elsewhere in the world, but it has backed off from earlier demands of a 40 percent to 45 percent cut in prices. Analysts say Chinese government stimulus measures have boosted production in several steel intensive industries. Page 13.

- - - -

Mining company BHP Billiton (BHP.AX) "remains committed' to its nickel business despite the failure of its Ravensthorpe project in Western Australia.

BHP shut down the Ravensthorpe nickel laterite operation in January and on Friday signed a deal to sell its Yabulu refinery in Queensland, where product from Ravensthorpe was processed.

BHP's stainless steel materials president, Jim Wilson, said "I don't think the fact that we're selling Yabulu necessarily detracts from us potentially playing in the laterite game in the future.' Page 13.

- - - -

A number of senior staff at Fielders Australia, the steel roofing supply operation of Hills Industries, have walked off the job and are planning to start a rival company in Adelaide.

Hills chief executive Graham Twartz says that two Fielders staff walked out on Friday but he dismissed reports of a mass walkout by senior staff. The move follows a dispute involving former Fielders boss and founding shareholder John Easling, who was sacked earlier this year and is said to be involved with the new company. Page 13.

- - - -

State-owned Queensland Rail has continued its push into the New South Wales (NSW) market by signing an 11-year transport deal with global coal giant Peabody Energy (BTU.N).

Analysts say the contract to deliver coal from Peabody mines to the Port of Newcastle is a blow to rival transport group Asciano (AIO.AX), which is a market leader in the NSW Hunter Valley coal-haulage business.

Queensland Rail chief executive Lance Hockridge says the deal is "a significant step toward the sort of market-share aspirations we do have in that part of the world.' Page 14.

- - - -