Posts Tagged ‘china australia mining’

Indophil agrees to Zijin's $545m takeover

Tuesday, December 1st, 2009

Indophil Resources has agreed to the terms of a friendly takeover offer from Hong Kong’s Zijin Mining Group Company. The offer of $1.28 per share values the company at $545 million.

The Age is describing it as another of “China’s raid on the Australian resources sector,” and this time the target is Indophil’s minority ownership of the Tampakan Copper-Gold Project in the Philippines.

The same article also notes, rather ominously, that Tampakan is situated on an island known for having a rebel group opposed to the Tampakan project.

Xstrata is the majority shareholder of Indophil and majority partner in the Tampakan project, and has entered into a pre-bid acceptance agreement with Zijin.

Indophil has been in a trading halt since Friday.

Indophil Resources
ASX Code: IRN

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China – Lynas rare earth deal collapses

Friday, September 25th, 2009

China has ditched plans for a $500 million investment in rare earths company Lynas, after the conditions imposed by the Foreign Investment Review Board were found to be objectionable.

China Nonferrous Metal Mining Co (CNMC) had planned to increase its stake to 51.6%, however the FIRB required the ownership to be less than 50%, and the number of directors on the board to be less than half.

As a result, CNMC is walking away from the deal, leaving Lynas in a trading halt and reassuring the market that other funding sources are being finalised.

The FIRB director yesterday advised Chinese investors to talk to them first, and not use the media to lobby their proposals.

Lynas Corporation, ASX Code: LYC
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Tussle over rare earth minerals

Wednesday, September 2nd, 2009

Australian regulators must soon decide on whether or not to check China’s increasing stranglehold on the rare earth minerals market.

China currently produces 93% of the world’s most rare and valuable elements, two of which are required for various green energy and military technologies.

In Australia, Lynas Corporation and Arafura Resources were ready to open mines last year which could account for a quarter of the world’s production, but after the GFC swept away financial backers, Chinese government-owned companies stepped in with cash.

Australian regulators have already approved the sale of 25% of Arafura, but have deferred a decision on the sale of 51.7% of Lynas until Monday.

Their decision could be influenced by what comes out of a conference in Beijing tomorrow, when it’s expected that the issue of China’s increasing restriction on access to rare earth minerals will be raised by Western governments and multinational corporations.

ASX Code: LYC

ASX Code: ARU

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Fortescue undercuts Rio and BHP in China

Tuesday, August 18th, 2009

Fortescue Metals Group has struck a $7.2 billion deal with the Chinese steel industry, offering to supply discounted iron ore in exchange for cheap finance and a priority place in future price negotiations.

Under the arrangement, Fortescue will provide iron ore at a 3% discount to the May benchmark price enforced by Rio Tinto and BHP Billiton.

In return for the discount, Chinese banks will be providing Fortescue with US$5.5 – $6 billion in loans, which will be used to pay off debt and boost production at the company’s Pilbara mines, with the aim of strengthening Fortescue’s position as a major player in Australia’s iron ore export market.

Both Rio and BHP have indicated the undercutting is irrelevant to their own pricing plans, however the China Iron & Steel Association said it would be using the Fortescue price in future negotiations.

ASX Code: FMG
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Chinese iron ore discovery may affect Australian exports

Thursday, June 25th, 2009

China has discovered an iron ore deposit rich enough to impact on its import of Australian resources, according to a report in The Australian today.

The China News Agency reported the discovery of the biggest iron ore deposit in Asia, situated in China’s northeast. The deposit would also be larger than BHP and Rio’s Pilbara reserves.

While the deposit would provide China with a cheap alternative to importing from Australia and Brazil’s Vale, the ore’s iron content grade is not high.


ASX Code: BHP

ASX Code: RIO
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Victory for Rio shareholders

Friday, June 5th, 2009

Rio Tinto has walked away from the controversial $23.9 billion deal with Chinalco, following a loud and long protest campaign by institutional and retail shareholders, as well as some political figures.

As a fund-raising alternative, Rio is now in a trading halt pending a company announcement, expected to be a rights issue valued around $US15 billion.

The collapse of the Chinalco deal is also fuelling media speculation that Rio will seal a deal with BHP Billiton over iron ore operations in the Pilbara.

Rio shares on the LSE dropped overnight, amid the rights issue speculation:

LSE code: RIO.L
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Last minute alternative for Oz Minerals

Thursday, June 4th, 2009

Oz Minerals is expected to receive a recapitalisation offer from Royal Bank of Canada and Australia s RFC Group, providing the miner with an alternative to the China Minmetals takeover.

According to a report in the Financial Review, the proposal includes $1 billion in new equity and convertible bonds, and $200 million in working capital. A rights issue would also follow.

Shareholders are due to vote on the Minmetals deal on June 11th.


ASX Code: OZL
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