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Bloomberg: Exxaro bids A$123 million for Territory in iron ore strategy

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.

Exxaro, based in Johannesburg, is expanding into iron ore to meet surging demand for the steelmaking ingredient from China and India. Rising imports by Chinese steel producers have fueled an almost threefold increase in iron ore prices since 2008.