US won't seek death penalty for Snowden

The US has told Russia it will not seek the death penalty for intelligence leaker Edward Snowden. Source: AAP

ATTORNEY General Eric Holder has told the Russian government that the US will not seek the death penalty for former National Security Agency systems analyst Edward Snowden.

In a letter dated July 23, the attorney general said the criminal charges Snowden faces do not carry the death penalty and that the US will not seek the death penalty even if Snowden were charged with additional death penalty-eligible crimes.

Holder says his letter follows news reports that Snowden, who leaked information on largely secret electronic surveillance programs, has filed papers seeking temporary asylum in Russia on grounds that if he were returned to the United States, he would be tortured and would face the death penalty.

The attorney general's letter was sent to Alexander Vladimirovich Konovalov, the Russian minister of justice.

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16 boats arrive since PNG deal struck

More than 1000 asylum seekers are waiting on Christmas Island to be transferred to PNG. Source: AAP

THERE have been 16 asylum seeker boat arrivals since the Rudd government announced a week ago its new hardline policy to resettle refugees in Papua New Guinea.

On Saturday, Home affairs Minister Jason Clare revealed details of the latest arrivals.

Border protection authorities intercepted boat number 13 carrying 76 passengers and two crew north of Christmas Island on Thursday.

It came after HMAS Bathurst assisted boat number 12, carrying 96 passengers and three crew, when it ran into trouble north-northwest of Christmas Island on Wednesday.

People on board both boats have been taken to Christmas Island for initial identity and health checks before they are transferred to Papua New Guinea.

A spokeswoman from Mr Clare's office said the number of passengers on three other boats - making a total of 16 boats in the week - was still being confirmed.

Close to 1000 people, the total number of passengers on the 13 boats, are waiting on Christmas Island to be transferred to PNG.

Immigration Minister Tony Burke will address the media in Sydney on Saturday afternoon following his recent visit to inspect conditions at the Manus Island tent city detention complex in PNG.

During the visit Mr Burke spoke with whistleblower Rod St George who alleges up to half a dozen men were assaulted and sexually abused by some detainees.

Under the federal government's deal with PNG, people arriving by boat without a visa will be denied resettlement in Australia, be taken to Manus Island for processing and if their refugee status is approved, resettled in PNG.

In a later statement, Mr Clare gave details of another of the 16 boats which had been assisted by HMAS Melville northwest of Christmas Island, also on Wednesday.

He said it had 69 passengers on board and three crew members who had been taken to Christmas Island for health and identity checks.

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NZ shares rise as Tower, Fletcher recover

NEW Zealand shares have closed higher as Tower recovered from its post-quake decline and Fletcher Building gained from its recent slide.

The NZX 50 Index rose 5.194 points, or 0.1 per cent, to 4581.99. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was $93 million.

Tower, the general insurer, rose 2.2 per cent to $1.88, recovering some of the ground shed at the start of the week when a magnitude 6.5 earthquake shook Wellington and sparked concerns about a rush of insurance claims.

Fletcher Building, the biggest company on the NZX 50, rose 0.5 per cent to $8.31.

The benchmark index is heading for a monthly gain of more than three per cent, which Mint Asset management portfolio manager Shane Solly said reflects a reduction in concerns the US Federal Reserve will remove its stimulus of the world's biggest economy too soon.

"We've had a pretty strong rally, from being pretty weak last month," Mr Solly said.

Investors are preparing for earnings season and "we've not seen a whole bunch of confessions come through yet," he said, referring to companies warning they would miss estimates.

Fonterra Shareholders' Fund, which warned on Thursday that earnings would not meet its prospectus forecast because of drought in the first quarter, rose 0.8 per cent to $7.33.

Kathmandu, the retailer that counts Australia as its largest market, fell 1.9 per cent to $2.63 and Brisbane-based jewellery chain Michael Hill International declined 0.8 per cent to $1.26 amid continued concern about a weaker economy and fierce retail rivalry across the Tasman.

"Companies with Australian business will point at it as a weak point in their activities," Solly said.

OceanaGold, the operator of the Macraes gold field, fell 2.9 per cent to $1.99. The company has declared a $US70.5 million ($NZ87.4m) net loss in the second quarter, reflecting a $US85.5m non-cash writedown in the carrying value of its New Zealand gold mining operations.

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Measles warning for China-Sydney flyers

TRAVELLERS have been put on measles alert, with a passenger on a plane from China that landed in Sydney on Monday confirmed as having the disease.

Public health units are contacting passengers on China Southern Airlines flight CZ 301 who were seated closest to the infected passenger, but anyone who was on the plane should also be alert for symptoms in the next two weeks.

NSW Health Communicable Diseases director Vicky Sheppeard said measles was highly contagious for anyone who was not fully immunised.

"Complications can range from an ear infection and diarrhoea to pneumonia or swelling of the brain," she said in a statement on Friday.

Measles is spread through coughing and sneezing.

Symptoms include fever, tiredness, runny nose, cough and sore red eyes which last for several days before a red, blotchy rash appears.

Dr Sheppeard said people aged up to 47 who had not received two doses of measles vaccine were particularly susceptible, but those born before 1966 were usually immune because they had measles during childhood.

"So far this year seven travellers have returned to NSW with measles infection, all of whom were under 47 years of age, none of whom had received two doses of measles vaccine," Dr Sheppeard said.

Any passengers who contracted measles on this week's flight could expect to see symptoms appear between Sunday and August 8.

Dr Sheppeard has asked anyone who develops symptoms to phone ahead when seeking medical attention to avoid exposing other patients to the illness.

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Qld fears TB epidemic from PNG

Queensland's health minister says the state is wearing a big bill to treat sick Papua New Guineans. Source: AAP

PAPUA New Guineans are being turned away from the Torres Strait Islands over fears they're spreading a deadly disease, which has already claimed one life.

Locals say the state and federal governments aren't doing enough to stop a tuberculosis (TB) "epidemic", which has hit the islands and could spread to the mainland.

Torres Strait Regional Council Mayor Fred Gela says since an elderly local woman died from TB in April the council has refused to allow traders from PNG to visit the islands.

Council staff are required to sign temporary permits before someone from PNG can visit any of the 14 islands under a treaty agreed by the two countries.

Last year up to 26,000 individual permits were issued.

Mr Gela says the council has been forced to act because there are no health checks in place and he fears more people could die.

"My people are vulnerable and susceptible to contracting TB," he told AAP.

"Some of our communities are right on the front line, they're only a 10 minute boat ride from the PNG border.

"The reason is strong and simple: we're very, very concerned."

Health Minister Lawrence Springborg says Queensland isn't receiving enough compensation to treat the hundreds of sick people from PNG who travel across the border each year.

He begrudgingly signed a deal on Wednesday that will see the state receive $18 million in compensation from the Commonwealth over four years.

He wanted an extra $10 million a year and a commitment to close the north's "porous" borders.

"This border is about as porous as a spaghetti colander," Mr Springborg said.

In 2011/12 about 1100 Papua New Guineans visited Queensland Health facilities in the Torres Strait and Cairns, 15 of whom had tuberculosis.

In one case, the cost of a patient's treatment came to $1 million.

Mr Springborg says Mr Gela wants to close the border, but only the Commonwealth has the power to do that.

Mr Gela described the extent of the TB outbreak in the Torres Strait as an epidemic and says the situation has worsened over the past decade.

He welcomed funding for programs such as AusAid in PNG but says Australia needs to ensure the money is being spent on stopping sick people crossing the border.

"The Australian government is pouring money into an international country with very little measures ensuring accountability," he said.

Mr Gela warned authorities not to view Torres Strait as "out of sight, out of mind," as diseases that spread through that area would soon reach the mainland.

"This is everybody's business," he said.

"The state and federal governments need to front up to this issue and deal with it."

The Torres Strait and Northern Peninsula Hospital and Health Service says asylum seekers have been treated in far north Queensland hospitals.

Spokeswoman Simone Kolaric says a Syrian man, who came via PNG, was brought to a hospital by immigration officials a couple of months ago, amid concerns he had TB.

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Natural gas well off US coast catches fire

A FEDERAL official has confirmed that a fire has broken out on a blown-out Gulf of Mexico gas well.

Eileen Angelico of the Bureau of Safety and Environmental Enforcement confirmed that the evacuated rig caught fire late on Tuesday. There were no immediate reports of injuries.

The 44 workers on the drilling rig were evacuated early on Tuesday when the blowout occurred.

Angelico says it wasn't immediately clear what caused the gas to ignite. And it wasn't known what efforts to extinguish the blaze were being made early on Wednesday.

Personnel with Wild Well Control Inc were at the site to assess how and when to try to bring the well under control.

The site is about 88km off the Louisiana coast.

The drilling rig is owned by Hercules Offshore Inc. Executive vice president Jim Noe says experts will assess the well site and develop a plan to shut down the flow of gas.

Noe stressed that gas, not oil, was flowing from the well.

He says it's an important distinction because gas wells in relatively shallow areas - this one was in 47 metres of water - sometimes tend to clog with sand, effectively snuffing themselves out.

"That is a distinct possibility at this point," he said. "But until we have our (well control) personnel on the rig, we won't know much more."

Kevin Davis, head of the Louisiana governor's homeland security office, said: "According to federal officials, there is no imminent danger at this time."

Nonetheless, the Coast Guard is keeping nautical traffic 500 metres away from the site, where the spewing gas poses a fire hazard, and the Federal Aviation Administration has restricted aircraft up to 2000 feet (610 metres) above the area.

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Fortescue positive on Chinese demand

Iron ore miner Fortescue increased production by 41 per cent during the 2012/13 financial year. Source: AAP

IRON ore miner Fortescue is optimistic Chinese demand for steel will remain strong enough to keep the iron ore price well above $US100 a tonne.

Markets have grown increasingly wary about China's future prospects in recent months, with economic growth slowing to an annual rate of 7.5 per cent, down from more than 10 per cent a few years ago.

But Fortescue Metals chief executive Nev Power said the world's second largest economy was continuing to grow rapidly and steelmakers' demand for iron ore continued unabated.

"We're talking about an economy that is double the size that it was seven years ago, 7.5 per cent economic growth on that is very strong indeed," he said.

"We maintain our confidence in China and believe they will continue their urbanisation and industrialisation process which will continue to drive steel demand and therefore iron ore demand."

Fortescue is forecasting an iron ore price of between $US110 and $US130 a tonne for the foreseeable future and Mr Power said global iron ore supply would need to increase dramatically for the price to fall below $US100 a tonne.

"I'm sure we'll see some volatility in the iron ore price but if you look at the fundamental supply and demand balance we don't see any major change to the price going forward," Mr Power said.

The company on Tuesday announced it shipped almost 81 million tonnes of iron ore during the 2012/13 financial year, up 41 per cent on the previous year.

It expects to lift production further this financial year and plans to ship between 127 million tonnes and 133 million tonnes.

Mr Power said the company had also succeeded in reducing cash costs by 17 per cent to $US36.01 a tonne during the June quarter.

"This has been a truly magnificent quarterly result," he said.

But the company's success was not enough to see it pay the federal government's Mineral Resources Rent Tax last financial year, and the company does not expect to pay it in the future.

Meanwhile, Fortescue is still in negotiations over the possible sale of a stake in its Pilbara rail infrastructure, but says it will only go ahead if it receives a deal it believes is favourable.

While selling a stake in the rail infrastructure would allow Fortescue to pay down its debts quicker, the company's cash flow increasing as new expansion projects were completed, Mr Power said.

"We don't need to do this transaction, we're in a very strong position and we're in a position where we can look at this from an option of de-gearing more rapidly."

Fortescue shares were down eight cents to $3.60 at 1525 AEST on Tuesday.

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Tough new laws announced for G20 safety

KITES will be outlawed in inner-city Brisbane next year as part of a raft of new laws to be introduced during the G20 summit.

Police minister Jack Dempsey says the new legislation, yet to be introduced to parliament, will help ensure the safety of world leaders when they converge on Queensland's capital in November next year.

Mr Dempsey and senior police were reluctant on Tuesday to go into detail about the legislation.

But the police minister said it would include increased police arrest powers, the ability to detain suspicious people and restrictions on various items, including air-borne items such as kites, for the duration of the event.

"There's a lot of air things that can be used to disturb a particular event," Mr Dempsey told reporters.

"We're looking at a broad spectrum of what's happened in the past and the potential to fit in with this particular site here."

Queensland Police Assistant Commissioner Katarina Carroll said her officers were also liaising with those from previous host cities to help deal with professional protesters like those who rioted in Toronto in 2010.

"This is our largest security operation that the Queensland Police Service will ever deliver," she said.

Ms Carroll said business and thousands of residents around the Brisbane Convention and Exhibition Centre, where the event will be based, will face disruptions in the lead up and during the event.

There will also be disruptions in the CBD, where most of the leaders will be accommodated, she said.

However Ms Carroll said residents and business would be kept informed during the planning stages and would have access to their premises throughout the summit.

The Queensland Government has already announced a public holiday on November 14 for people who work in greater Brisbane.

The summit will be held on November 15 and 16.

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Greens candidate on drink-driving charge

AN electric car-led campaign has backfired for a Greens election candidate facing a drink-driving charge.

Rosalie Ellen Woodruff, 48, has appeared in the Hobart Magistrate's Court on a single count after recording a blood alcohol level of 0.065 in June.

Dr Woodruff is a federal candidate for the southern Tasmanian seat of Franklin, currently held by newly promoted cabinet minister Julie Collins.

She is yet to enter a plea but issued an apology through the party.

"Ms Woodruff apologised unreservedly for the incident," a Greens statement said.

Dr Woodruff, who is a renowned epidemiologist and a local councillor, arrived at her campaign launch last year in a Daihatsu converted to run on electricity.

She said Tasmania could become a centre for electrical conversions, which cost about $15,000 per car.

Greens leader Christine Milne said disciplinary action, if deemed necessary, would be handled locally by the party.

"Of course I don't condone drink driving," Senator Milne said.

Dr Woodruff will reappear in court on September 5.

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Earthquake kills 47, injures 300 in China

AT least 47 people have died and about 300 have been injured after a 5.9-magnitude earthquake hit north-western China's Gansu province the government and state media say.

The quake shook homes in Gansu's Minxian and Zhangxian counties at 7:45 am on Monday and was felt in nearby cities, the Gansu Seismological Bureau reported.

The US Geological Survey estimated the magnitude at 5.9 while initial reports by the China Earthquake Networks Centre and the Gansu provincial seismological bureau estimated it at 6.6.

At least 45 people died in Minxian county, while the quake destroyed 380 homes and seriously damaged 5,600 others in Zhangxian county, the seismological bureau said.

Electricity was cut in five townships of Zhanxian and several railway lines were damaged, it said.

Local governments mobilised hundreds of soldiers, police and civilians to help with rescue work, state media said.

The International Red Cross said staff from its Chinese branch were on their way to Gansu and would send initial relief supplies including 200 tents and 1,000 "family kits" of basic household items.

"Heavy rain is forecast in the disaster-hit area, which is likely to affect rescue and relief efforts and pose dangers of landslides," the International Red Cross said.

"The two counties at the intersection of which the quake epicentre was located, Minxian and Zhangxian, are still recovering from weeks of torrential rain and flooding, increasing residents' vulnerability in face of this fresh disaster," it said.

The rescue work was also hampered by nearly 400 aftershocks, including a 5.6-magnitude quake at 9:12 am, reports said.

The epicentre was southeast of the provincial capital, Lanzhou, and west of Beijing.

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Concerns over Billabong deal

The Australian Shareholders Association is concerned over Billabong's planned recapitalisation deal. Source: AAP

A SHAREHOLDERS' rights group has taken aim at Billabong's planned recapitalisation deal, arguing competing offers for the surfwear icon should be considered.

Billabong last week announced it had reached a $US294 million ($A325 million) deal with US private equity group Altamont Capital Partners which will allow it to repay its debts.

Altamont is expected to take a stake of up to 40 per cent in the company under the deal.

But two of Billabong's main creditors, Centerbridge Partners and Oaktree Capital, have lodged a challenge to the deal with federal regulator the Takeovers Panel.

The challenge centres around a 35 per cent interest rate levied on a $A44 million convertible loan held by the company, which will be charged until shareholders approve the deal, and a reported $A65 million break fee which Billabong will have to pay if it scraps the deal with Altamont.

The panel has yet to decide whether to hold hearings into the matter.

Australian Shareholders' Association chairman Ian Curry on Sunday said the panel should declare the break fee to be "unacceptable".

The panel had previously said break fees should not equate to more than one per cent of the equity value of the transaction, he said.

"ASA is not currently a party to the proceedings, but we are concerned by media reports about the break fee and urge the Takeovers Panel to declare it to be 'unacceptable'," Mr Curry said in a statement.

Centrebridge and Oaktree have submitted their own refinancing proposal which involved them taking a 61.2 per cent stake in Billabong, but their offer has been rejected by the company's board.

Mr Curry wants the Billabong board to take whatever steps are necessary to ensure an orderly and competitive process that allows shareholders to consider alternative proposals to the Altamont deal.

"Billabong shareholders have suffered enough at the hands of a board and management team which have imperilled the company," he said.

"At the very least, the board should facilitate a truly competitive auction so that all serious bidders can lodge their best offers."

Shares in Billabong have risen sharply since the Altamont deal was announced, jumping from 25 cent to 40 cents between Wednesday and Friday.

The company has been subject to a string of takeover attempts in recent years as it tries to combat weak revenues and high debts.

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Rioters wreck Nauru detention centre

Rioters at the Nauru detention facility have caused extensive damage and are expected to be charged. Source: AAP

RAMPAGING asylum seekers have left a $60 million damage bill to the Nauru detention centre, with dozens arrested over the riot.

They torched newly constructed accommodation blocks, the health centre, offices, the dining room and vehicles.

Only the kitchen and recreation facility remain standing and usable.

"It is quite extensive damage," a spokeswoman for the Immigration Department told AAP.

No staff were injured in the unrest on Friday but a number of residents were treated in hospital for minor injuries and some for pre-existing conditions.

The spokeswoman said the damage bill was estimated at $60 million.

She said their latest information was that 125 of those allegedly involved in this destruction were now in jail, with some 58 charged by Nauru police.

With accommodation for more than 600 trashed, residents will be housed in tents erected on the site planned for a new detention facility.

"We will have temporary ablution blocks installed and temporary water supplies put in place and meals will be prepared at the original kitchen," she said.

Unrest at the Nauru detention facility started earlier last week with peaceful protests at the delay in processing of asylum claims.

The situation escalated on Friday afternoon with some 150 of the 545 male detainees setting fire to buildings.

Immigration Minister Tony Burke said he was waiting for reports on the full extent of damage.

He warned those involved that he had extensive powers to refuse or cancel visas on character grounds.

Foreign Minister Bob Carr said advice to him indicated the rioting was unrelated to Prime Minister Kevin Rudd's announcement of the new PNG solution on Friday afternoon.

He said those detained by Nauru police should understand that they hadn't impressed anyone in Australia.

Senator Carr admitted Australia would have no choice but to rebuild.

"As a destination country we have got to stump up the money for the accommodation and processing of people who arrive without visas," he told Sky News.

The opposition blamed Labor.

Opposition leader Tony Abbott said riots were a problem when you couldn't stop the boats.

"As long as you have got illegal arrivals by boat, as long as you have got people in immigration detention, you are at risk of riots," he told reporters in Melbourne.

Immigration spokesman Scott Morrison said this wasn't the first detention centre to burn down under Labor.

"If you need any demonstration of Labor's ability to implement offshore processing ... then look at the fires on Nauru," he told reporters in Melbourne.

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