Hot on the heels of a lacklustre listing by Swiss commodities and mining behemoth Glencore, news comes of another multi-billion dollar natural resources IPO going awry. Resourcehouse planned to raise $3.6bn on the Hong Kong market on Thursday but has now postponed the listing to at least the end of the month. The Australian iron ore and coal miner has made three previous attempts to go public in 2009 and 2010.
Australia Mining News
Australian rare earths company Arafura Resources has successfully completed the hydrochloric acid regeneration program, a key part of its wider, previously reported technology program. The process involves taking calcium chloride residues from the phosphate circuit and re-acting them with sulphuric acid to produce re-useable hydrochloric acid, a key raw material in Arafura’s pre-leach circuit, and calcium sulphate (gypsum), a potential saleable product into various end applications.
The executive chairman of private company Direct Nickel Julian Malnic told the Resources & Energy Symposium in Broken Hill in New South Wales that the company was currently moving to raise $A15 million ($US14.7 M) to utilise an ASX-listed shell company for listing.
The Australian: Australia is facing a critical skills shortage in mining and other industries, and India seemed like the perfect place to get skilled labour. However with new projects opening in India, the question is arising as to whether India can spare that labour.
The Australian government this month announced it would fast-track 457 temporary migrant visas for mining companies seeking foreign recruits for positions they can't fill from the domestic labour pool. Austrade is championing the idea of Australian vocational training courses in Indian workplaces and institutions, and eventually an India-based Australian mining and engineering college, with the capacity to train as many as 100,000 Indian workers annually.
South African coal miner Exxaro Resources has agreed to pay AUD$123 million for Territory Resources with the goal of producing 10 million metric tonnes of iron ore a year, Bloomberg reported Monday: Exxaro offered A$0.46 a share for the iron-ore miner based in Perth, Western Australia, the companies said in a statement today. The bid, at a 64 percent premium to the closing price on May 20, was recommended by Territory’s board, they said.
Bloomberg reported that a drop in coal exports following Australia’s floods pushed up exports from the US. The market news is quoted as saying: Queensland Resources Council, representing miners in the Australian state, said in January 85 percent of mines were “impaired by excess water.” Further rains delayed a production recovery, RBS Morgans Ltd. said last month.
The Rasp underground mine in the heart of one of Australia' most historic mining centres -- Broken Hill's Line of Lode -- should be operating by April next year. Development of the Rasp mine on Central Mining Lease 7 is in one of the most intensely worked areas between the Perilya Ltd North and South mining leases and it had a stop-start scenario with the big stall being when the zinc price crashed in during the global financial crisis.
Trading Room reports that Melbourne-based Fortis Mining Ltd has agreed to raise $236m by selling new shares and notes to investors in Hong Kong and China to buy and develop two potash mines in Kazakhstan. ASX-listed Fortis, previously a gold and base metal explorer, acquired the rights to purchase the Chelkarskaya and Zhilyanskoe salt deposits in March. The deposits have an exploration target range of 6.5 – 6.6bn tonnes of potassium making them amongst the largest potash salt deposits in the world.
The Sydney Morning Herald reports on Friday that the state of New South Wales announced a 60-day freeze on new exploration licences for coal, coal seam gas and petroleum in a push to resolve the escalating conflict between farmers, miners and conservationists over land use. The need for a moratorium was questioned by the state's mining industry, which said billions of dollars in investment were at stake, but it said it broadly supported the development of a new approach to avoid conflict over valuable land.
"Everyone who has money is rushing to invest in iron ore," Baosteel Group chairman, Xu Lejiang said on Friday, warning that supply may outstrip demand “sooner than expected” pushing prices down in the process. Brazil’s Vale, and Australian heavyweights BHP and Rio Tinto have some $45bn slated for new mines. The cash price of 62%-iron ore shipped to China's Tianjin port has almost tripled from Nov. 21, 2008 when data became available, according to the Steel Index.
Valuations of iron ore companies have been cut in response to Western Australia's controversial royalty increase, with Andrew Forrest's fast-growing Fortescue Metals taking the biggest hit. The valuation hits were despite the protection from state the protection from state royalty increases that the miners negotiated last year with the federal government in the reworked - and less onerous - minerals resource rent tax.
Bloomberg reports on Thursday that GVK Power & Infrastructure, a builder of airports and utilities controlled by Indian billionaire GV Krishna Reddy, is in talks to borrow as much as $850m to fund the purchase of two Hancock Prospecting coal mines according to people with knowledge of the negotiations. GVK will use the money to pay Hancock $500m for equity in the mines and another $350m as compensation for costs incurred by the Australian company for running them.
The proposed development of one of South Australia’s most significant infrastructure projects - a new multi-million dollar bulk commodities export facility at Port Bonython on Spencer Gulf - has taken a significant step forward. The South Australian Government and Spencer Gulf Port Link Consortium, the group originally selected by the government as its preferred bidder for project, jointly announced a comprehensive Environmental Impact Statement (EIS) will be undertaken into the project. The consortium comprises Flinders Port Holdings, Leighton Contractors, Macquarie Capital, BIS Industrial Logistics and the Australian Rail Track Corporation (ARTC). Read more
United Pipeline Systems, a division of Insituform Technologies, has been awarded an additional $10.5 million for the supply and installation of its Tite Liner® HDPE solution in pipelines at the Sino Iron Ore project in Western Australia. This contract expands the $10.9 millionproject for themine previously announced in January 2010. Read more
ABB has recently agreed to acquire Mincom to broaden its software portfolio and establish the Group as a leader in enterprise asset management (EAM) software and services. ABB is acquiring the Brisbane, Australia-based company from Francisco Partners, a private equity group that invests in technology businesses, for an undisclosed sum. Read more
Wayne Swan has threatened to blow a $2 billion hole in the Barnett Government's plan to lift royalty rates on iron ore miners, with every cent raised by the move likely to end up with other States and Territories.The Commonwealth Grants Commission has
Xstrata Mount Isa Mines has announced plans to sustain the future of its Mount Isa operations through expanded mining and concentrate production, while phasing out copper smelting at Mount Isa and refining operations in Townsville by the end of 2016.
United Pipeline Systems, a division of Insituform Technologies, has been awarded an additional $10.5 million for the supply and installation of its Tite Liner® HDPE solution in pipelines at the Sino Iron Ore project in Western Australia. This contract expands the $10.9 millionproject for themine previously announced in January 2010.
Global mining company Rio Tinto has raised a total of $2 billion bonds in long-term debt bonds, it said on Wednesday. The offer, registered in the U.S. Securities Exchange Commission, consisted of $700 million in 5-year notes with a coupon of 2.5 percent, $1 billion in 10-year bonds with a 4.125 percent coupon and $300 million in 30-year bonds paying a 5.2 percent coupon.
The proposed development of one of South Australia’s most significant infrastructure projects - a new multi-million dollar bulk commodities export facility at Port Bonython on Spencer Gulf - has taken a significant step forward. The South Australian Government and Spencer Gulf Port Link Consortium, the group originally selected by the government as its preferred bidder for project, jointly announced a comprehensive Environmental Impact Statement (EIS) will be undertaken into the project. The consortium comprises Flinders Port Holdings, Leighton Contractors, Macquarie Capital, BIS Industrial Logistics and the Australian Rail Track Corporation (ARTC).
Coal India, the world's largest coal producer, is on a high. The state-run company is set to pick up a 15% stake in a joint venture with US-based coal firm Peabody Energy's $600 million mining project in Australia. The deal size could be upwards of $100 million. Officials privy to the discussion said both the companies were mulling over the exact details and were to form a joint venture company to tackle the Wilkie Creek coal mine, in Queensland, Australia, which is owned by Peabody.
A Mine Concept Study conducted by Steffen Robertson Kirsten (SRK) on the Bungaroo South project has confirmed both the technical and financial viability of a mine development. The mine plan supports a 15 million tonnes per year operation with a mine life of 15 years, with production possible by 2015.
The game of corporate musical chairs has ended with more frustrations than success for the two companies concerned, after BC Iron Ltd (ASX: BCI) got annoyed about Regent Pacific withdrawing its original bid, BC Iron then successfully got the bid reinstated through Australia's Takeovers Panel, and then deciding it didn't want to proceed. The end of this chain was the expert's report to BC Iron that, in summary, said Regent Pacific's bid was neither fair nor reasonable.
Multotec has been awarded an order from SGS Australia for the supply of a spiral test rig that allows simultaneous testing of three spirals in parallel. This will allow SGS, the world’s leading inspection, verification, […]
In results released on Friday, Australia’s Paladin Energy showed a 47% increase in production from its Namibian and Malawian operations and record revenues of $208.7m on the back of a 31% increase in sales volumes for the nine months to March. The company said despite the concerns about the nuclear energy market following the tsunami damage to Japan’s Fukushima plant, it believes supply and demand imbalances will only widen in future as more plants, such as the 25 under construction in China, come on stream. Paladin is on an aggressive growth drive. Stage 3 of the expansion of its Langer Heinrich mine that would bring capacity to 5.2m lb is 92% complete and in February 2011 the company announced that it completed its acquisition of the uranium assets of Aurora Energy in Labrador, Canada for C$260.8m.