Posts by Bloomberg News:

Graff Diamonds said to plan $1 billion Hong Kong IPO

Bloomberg reports Graff Diamonds, the producer and retailer whose founder twice set records buying gems at auction, plans to raise about $1 billion in an initial public offering in Hong Kong, according to a person with knowledge of the matter. Graff follows other luxury product makers such as Prada to Hong Kong as China surpasses Japan to become the second-biggest buyer of diamonds behind the US, where demand rose 7 percent last year, compared with 25 percent in the communist country, according to De Beers.

Carbon cap revival led by Gillard called stupid by Xstrata

Julia Gillard, determined to join efforts to reduce global warming, intends to revive cap and trade as Europe puts curbs on the United Nations-run emissions credit market and the U.S. opts out entirely. The Australian prime minister’s plan to make factories and utilities either cut the nation’s greenhouse gases or pay for pollution-curbing programs abroad may force companies to buy an average 66 million metric tons of credits a year starting in 2015, sending prices up 29 percent, according to Bloomberg New Energy Finance. That’s about two-thirds of Europe’s annual demand since 2008.

Rio, Anglo aim to sell 75% stake in Palabora Mining valued at $700 million

Rio Tinto Group and Anglo American Plc (AAL), which together own about three-quarters of Palabora Mining Co., said they plan to sell their entire holdings in the South African miner as it no longer fits their investment objectives. Palabora’s main asset, a mine that produces copper and magnetite, “is no longer of a sufficient scale” for either Rio or Anglo, and a sale process for their stakes has started, the companies said today. Rio holds about 58 percent of Palabora and London-based Anglo almost 17 percent. Their combined holding is valued at about $700 million based on the closing price of Palabora stock in Johannesburg trading today. Image of copper spools at Palabora mine, courtesy of Rio Tinto

AuRico snaps up Northgate on the cheap

AuRico Gold Inc. is paying the cheapest valuation for a takeover of a North American gold producer in seven years even as bullion trades at a record. Including net cash, AuRico’s acquisition valued Northgate at 14.7 times Ebitda. In last year’s biggest North American gold takeover, Toronto-based Kinross, Canada’s third-largest producer of the metal, paid 40.4 times Ebitda to acquire Red Back Mining of Vancouver in a $6.7 billion deal.