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The US markets closed higher again. The Dow closed up 50 points or 0.5% at 10,464, the S&P500 was up 4 points or 0.4% at 1118 and the Nasdaq was up 15 points or 0.7% at 2252.
VDM Group (VDM) is pleased to announce that its wholly owned subsidairy , Wylie and Skene Pty Ltd has been awarded a $79 million contract with Rio Tinto’s subsidiary Robe River Mining Co Pty Ltd. The award of this contract grows VDM’s total order book value to approximately to $400 million. This contract broadens the spread of VDM Group’s order book across the major corporations of Rio Tinto, BHP Billiton, CP Mining, Woodside Petroleum and Fortescue Metals Group. Under the terms of the contract, Wylie and Skene will undertake a major refurbishment of the Pannawonica township including the refurbishment of 19 existing commercial and infrastructure buildings, and a construction of a new service station and a light vehicle workshop within the town. The project is expected to be completed within 30 months with revenue expected to be booked in FY10 to FY12.
Wylie and Skene’s Managing Director, Mark Nagle believes this contract win highlights the depth of VDM Group relationship with blue chip clients such as Rio Tinto. “This contract continues a relationship that Wylie and Skene has built with Rio Tinto over 35 years”, he added. “This large project builds on the success we have enjoyed with major clients including Rio Tinto and Woodside Petroleum over the past few years”.
VDM Group is structured into 3 major operating divisions namely Consulting, Construction and Resources and Infrastructure. Within each division, there are specialised companies offering a comprehensive range of services which enables it to deliver a one stop design, construction and project management services to its clients.
Alcoa (AAI) today announced it has formed a joint venture with Ma’aden, the Saudi Arabian Mining Company, to develop a fully integrated, world class aluminum industry in the Kingdom of Saudi Arabia. The joint venture will become the world’s preeminent and lowest cost supplier of primary aluminum, alumina and aluminum products, with access to the growing markets of the Middle East and beyond.
In its initial phases, the joint venture will develop a fully integrated industrial complex, including a bauxite mine with an initial capacity of 4,000,000 metric tons per year (mtpy); an alumina refinery with an initial capacity of 1,800,000 mtpy; an aluminum smelter with an initial capacity of ingot, slab and billet of 740,000 mtpy; and a rolling mill, with initial hot mill capacity of between 250,000 and 460,000 mtpy. The mill will focus initially on the production of sheet, end and tab stock for the manufacture of aluminum cans, and potentially other products to serve the construction industry. It will be one of the most technically advanced mills in the world. The complex will utilize critical infrastructure, including low cost and clean power generation, as well as port and rail facilities, developed by the Kingdom’s government. Bauxite feedstock for the planned alumina refinery will be transported by rail from the new mine at Al Ba’itha, near Quiba, in the north. The project will be developed and financed in two phases, with the rolling mill and smelter in the first phase. First production from the aluminum smelter and rolling mill is anticipated in 2013, and first production from the mine and refinery is expected in 2014.
Capital investment is expected to be approximately SAR 40.5 billion ($US 10.8 billion), subject to the completion of detailed feasibility studies and environmental impact assessments. Ma’aden will own 60 percent of the joint venture. Alcoa will control the remaining 40 percent of the joint venture through an investment partnership in which it will own 20 percent and its partners will participate through financing that represents the other 20 percent economic interest. Each of Alcoa and the partners will invest $900 million over a four‐year period and will be responsible for their pro rata share of the project financing, in addition to specific completion commitments. Alcoa will provide know how, management expertise and support during the design, construction and operation of the mine, refinery, smelter and rolling mill. Alcoa will also arrange the supply of alumina feedstock to the smelter from outside the Kingdom until the project refinery comes on stream. Alcoa and Ma’aden will work with leading international and local firms on the design and construction of the complex.
Alcoa President and CEO Klaus Kleinfeld said, “This joint venture is a once in a generation opportunity for Alcoa, for Ma’aden and for the Kingdom of Saudi Arabia. We are creating a fully integrated aluminum complex that will be the most technologically advanced and cost efficient in the world. By changing the operating dynamics and cost base within our industry, the complex will be a model for the growth of aluminum in competition with other metals and is designed with the potential for future expansion. The joint venture leverages the unique strengths of both Alcoa and Ma’aden to create substantial value for our investors, customers and partners.”
iSOFT Group Limited (ISF) – Australia’s largest listed health information technology company today announced deals totaling $2.3 million for its Hospital Information System (HIS) at hospitals in Malaysia and Oman. OpenApps Sdn Bhd, a partner of the Malaysian government, agreed to a three-year, 4 million ringgit ($1.3 million) contract for iSOFT’s HIS at Keningau Hospital in the state of Sabah. The agreement, which will start in January 2010, includes a patient management system, clinician database, billing, pharmacy and laboratory solutions. The total value consists of a license fee, with the remainder in support and maintenance over the period. The Ministry of Defence in the Sultanate of Oman agreed to a three-year support and maintenance deal worth RO351,000 ($1 million) for iSOFT’s HIS at four sites in Muscat and Salalah. The contract also includes an option to extend the license to about 40 remote clinics.
“These deals are significant in the context of their regions, and demonstrate iSOFT’s ability to help deliver healthcare outcomes for governments worldwide,” said Gary Cohen, Executive Chairman & CEO.
iSOFT Group Limited (ISF) is the largest health information technology company listed on the Australian Securities Exchange, and among the world’s biggest providers of advanced application solutions in modern healthcare economies. iSOFT works with healthcare professionals to design and build software applications that answer all of the difficult questions posed by today’s healthcare delivery challenges. Our solutions act as a catalyst for change, supporting free exchange of critical information across diverse care settings and participating organisations.
The Age is reporting there are rumours now of BHP Billiton gearing up to sell its remaining nickel assets in the new year.
Chinese buyers are tipped to be in the best position to pick up the assets in Western Australia and Colombia, for a sum vaguely estimated at between $3.4 billion and $7.9 billion.
BHP has already sold the Yabulu nickel refinery this year, and just recently cut its losses and sold off the Ravensthorpe mine as well.
BHP Billiton
ASX Code: BHP
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In this morning s wrap DOW: up 0.8%
Tech Stocks provide support
Dollar Index: Continues higher
US$ Higher;
A$ settles around 88c
FTSE: up 1.87 %
UK; pushed higher on growth number
CHINA: up 0.29%
Continues range bound
Oil: Down
Higher dollar
Gold: down 1.39% $4 ($1092.1) Loses Shine
Commodities Lower;
Dollar Higher;
SPI Futures up 33
Consolidation still
ASX News
BHP tipped to be selling its Nickel assets
AIO Renegotiated $5 billion in debt
Dubai World meets lenders to re structure $22 billion of debt
Gold/Oil lower on dollar strength
ASX to open higher
US & UK positive lead
The US markets closed higher again. The Dow closed up 85 points or 0.8% at 10,414, the S&P500 was up 11 points or 1.0% at 1114 and the Nasdaq was up 26 points or 1.2% at 2237.
Arrow Energy (AOE) has advanced its plans to create the first global coal seam gas company after acquiring a major stake in a highly prospective coal seam gas block in China. Arrow Energy subsidiary Arrow Energy International (AEI) has signed an agreement with Fortune Oil subsidiary, Fortune Green Energy (FGE), to acquire a 35 percent stake in Fortune Liulin Gas (FLG). Total consideration for this stake is US$13.3m with US$6m of these funds being committed to the 2010 work program which includes the drilling of horizontal pilot wells. Arrow has conditional options to increase its stake to 75 percent over time.
Arrow Energy Chief Executive Officer, Mr Nick Davies, said the transaction was a significant step forward for Arrow International in China. “The advanced status of the Liulin block represents a unique opportunity for Arrow to showcase its skills and capabilities and achieve near-term production and gas sales while providing the company with some existing reserves,” Mr Davies said. “We look forward to working closely with Fortune Oil and our Chinese partners at CUCBM on realising the potential of this block,” he said.
The project is expected to be the first of a series of co-operations in China that combine Arrow’s upstream expertise with Fortune’s gas distribution capabilities in China. This will include co-operation on coal mine degassing, a priority area for China in tackling coal mine safety and climate change.
Webfirm Group Limited (WFM) today executed an agreement to merge with Adslot Pty Ltd . Under the agreement, and subject to Webfirm shareholder approval, Webfirm will acquire all of the shares in Adslot for a total consideration of $6 million to be paid in the form of Webfirm shares (issued at 3.5 cents per share) to Adslot shareholders. The merger will deliver Webfirm unfettered global rights within the media space to commercialise the patented combinatorial auction technology underpinning the Adslot platform. Adslot automates the media sales process and significantly improves yields of premium advertising inventory. To support Adslot’s growth strategy, Webfirm today also announced plans to raise $4.2 million through a fully underwritten, non-renounceable Entitlements Offer to Webfirm shareholders. The proposed merger supersedes the announcements the two companies made in September and October of 2009 outlining plans for a 20 per cent investment and joint venture, respectively.
Webfirm Chairman Adrian Giles said: “The merger with Adslot represents a strong addition to the Company’s existing businesses. This technology refocuses Webfirm as a key solution provider to the US$420 billion global advertising market with an initial focus on the A$433 million Australian classifieds industry. Adslot will become a major pillar of our future strategy. Webfirm and Adslot together create an independent player offering publishers an automated ad sales platform that uses the latest auction technology to strengthen their position against competitors such as Google,” Mr Giles said. Andrew Barlow, Chairman of Adslot, said: “Publishers’ yields are under pressure as new inventory, competition from Google and cost-per-click models steadily erode their ability to sell premium ad space optimally. “The unique patented technology powering Adslot is the only framework that overcomes the issues of discounting and falling yields by providing transparency, competitive tension and limitless combinations of variables that allow the bidder to determine and pay for exactly those elements they believe will deliver maximum return from their online advertising spend.”
Webfirm Group Limited (WFM) is a full service digital media company with three divisions. Webfirm offers the full spectrum of web design and development services, including search engine marketing, optimisation, hosting, marketing consultancy, e-commerce, permission-based marketing, content management tools, and domain name management. Searchworld powers publishers’ profits with premium quality search monetisation solutions. Adslot builds and operates large scale ‘private electronic marketplaces’ for media publishers to sell premium ad inventory to agencies and self-serve advertisers. The Adslot sales platform uses proprietary mathematical algorithms to maximise yield for TV, video, display and text ads using a patented Book & Bid® sales methodology.
UGL Limited today announced that it has secured a new project to design, supply, install and maintain a state-of-the-art digital train radio system (DTRS) on NSW RailCorp’s electrified rail network. Design and installation works of the DTRS will occur over the first two and a half years, and UGL will provide a further five years of ongoing support and maintenance. The total contract is valued at $225 million. UGL will install and maintain the DTRS which will cover 1,455 kilometres of track, stables and rail sidings and 70 kilometres of rail tunnels across the Sydney metropolitan rail network. 675 train cabs will be fitted with onboard radios and interface equipment. The DTRS will enable communications between train crews, with other rail staff such as track workers and transit officers and freight operators. It can also be used by police and emergency services.
UGL Managing Director and CEO Richard Leupen said this new project with RailCorp demonstrates UGL’s ability to provide leading technology solutions to passenger rail networks in major cities, and complements UGL’s extensive design, manufacturing and maintenance capabilities in the rail sector. “This is a major achievement for UGL and further cements our position as one of the leading integrated engineering services firms in the rail sector. Across a number of rail networks in major cities such as Hong Kong, Melbourne and Sydney we are providing a broad range of vital services, and this project with RailCorp strengthens our presence in the rail sector. “We are again delighted to be partnering with RailCorp on this project. Already we are providing ongoing maintenance services to the existing passenger fleet that services Sydney and our build program on the OSCars is continuing. This project significantly expands our scope of works with this very important and valued customer.
UGL (UGL)is an engineering, maintenance and facilities management company operating in the rail, water, power, transport, resources and property sectors. It consists of four divisions – UGL Infrastructure, UGL Rail, UGL Resources and UGL Services (incorporating UGL Premas, UGL Equis and UGL Unicco). Headquartered in Sydney, Australia, UGL operates in Australia, New Zealand, Asia, North America and the Middle East and employs approximately 42,000 people.
