Cash takeover offer by Exxaro for African Iron

Thursday, 12 Jan 2012

Exxaro Resources Limited and African Iron Limited announced that African Iron and a wholly owned subsidiary of Exxaro Resources Limited, Exxaro Australia Iron Investments Pty Ltd have signed a Takeover Bid Implementation Agreement for an off market, cash takeover for all of the shares and listed options in African Iron.

Key points

1. Exxaro is offering AUD 0.51 cash base consideration for each African Iron share

2. Exxaro will increase the consideration to AUD 0.57 cash where Exxaro has a relevant interest in 75% or more of African Iron shares

3. In addition, Exxaro is offering AUD 0.31 cash base consideration for each listed African Iron option. Exxaro will increase the consideration to AUD 0.37 cash where Exxaro has a relevant interest in 75% or more of African Iron shares

4. African Iron largest shareholder, Cape Lambert Resources has entered into a pre bid acceptance agreement with Exxaro in respect of 19.99% of African Iron current shares on issue

5. The African Iron board unanimously recommends that shareholders and option holders accept the Exxaro takeover offer in the absence of a superior proposal

6. Each African Iron director intends to accept the offer with respect to all shares and listed options owned or controlled by them within 6 business days of the offer opening, in the absence of a superior proposal,

7. The offer is subject to only a small number of conditions, namely more than 50% minimum acceptance, no regulatory action, no material adverse change and no prescribed occurrences

8. The base consideration of AUD 0.51 per share represents a 49% premium to African Iron 30 day VWAP of AUD 0.343 and a 76% premium to African Iron 90 day VWAP of AUD 0.289. The increased consideration of AUD 0.57 per share represents a 66% premium to African Iron 30 day VWAP of AUD 0.343 and a 97% premium to African Iron 90 day VWAP of AUD 0.289

9. The base consideration of AUD 0.31 per option represents a 73% premium to the 30 day VWAP of listed African Iron options of AUD 0.179 and a 121% premium to the 90 day VWAP of listed African Iron options of AUD 0.140. The increased consideration of AUD 0.37 per option represents a 107% premium to the 30 day VWAP of African Iron listed options of AUD 0.179 and a 164% premium to the 90 day VWAP of African Iron listed options of AUD 0.140

10. Exxaro will fund the takeover from cash reserves and existing debt facilities, and has already obtained Foreign Investment Review Board and all necessary South African regulatory approvals for the takeover,

11. The offer at the increased consideration of AUD 0.57 per share values African Iron at approximately AUD 338 million on a fully diluted basis

12. The offer will be open for acceptances until 5pm Perth time on 14 February 2012

Dr Ian Burston Independent, Non-Executive Chairman of African Iron said the African Iron Board of Directors has carefully considered the offer by Exxaro and in the absence of a superior proposal, the Board unanimously recommends that shareholders and listed option holders should accept the offer.

Mr Mr Sipho Nkosi CEO of Exxaro Resources Limited said “We are very excited about African Iron’s projects in the Republic of Congo, as they will provide Exxaro with the opportunity to realise its stated ambitions of developing a significant iron ore asset in this rapidly emerging and prospective region.”

Mr Nkosi further added “The African Iron acquisition will enable Exxaro to leverage its bulk commodity and iron ore expertise into the development of the Mayoko project. We have invested a significant amount of time and resources in due diligence on this acquisition including several site visits and meetings with senior members of the Republic of Congo government.”

Moldavian Steel Works’ crude steel output up 46 percent in September over August

Thu, 06 October 2011

In September this year, Moldavian Metallurgical Works (MMZ), a steelmaker based in the Transnistrian region of Moldova, produced 62,675 mt of crude steel (up 45.9 percent month on month) and 54,387 mt of rolled steel (up 11.2 percent month on month), including 30,218 mt of reinforcing bar and 24,169 mt of rod.

In October, MMZ plans to decrease production amid the unfavourable situation in the global market and will focus on production of rod from high-carbon steel grades. The company will ship material to Russia, Ukraine, Africa, the EU and Latin America in October.

Tags: rebar , raw mat , longs , Moldova , CIS , production , steelmaking , crude steel , Moldavian Metallurgical Works
(sourced steelorbis)

JSE falls to lowest level in almost a year

JSE falls amid fears over the US economy after Wall Street suffered its worst selloff in two years

Friday,Aug05, 2011
By RON DERBY


South African stocks slumped over 3% in early morning trade to its lowest level since September last year, following global stocks lower as investors worry about prospects for the global economy and talks grow of the US entering another recession.

"Investors are pricing in a slowdown in growth and sovereign debt problems as equities drop across the board," Manoj Ladwa, senior trader at London-based ETX Capital, said today.

Globally, shares dropped for an eighth day, the longest losing streak since January 2010 and commodities fell. More than $4.5 trillion has been wiped off equity market values worldwide since July 26, according to Bloomberg.

Locally, the sell-off was wide spread with only seven stocks in the 164-member JSE All Share Index in positive territory. The index reversed early losses to trade 1,8% weaker at 10:10 a.m. local time. Diversified miners, BHP Billiton was 3,8% weaker to its lowest level in close to 11 months. Smaller rival, Anglo American was 2,4% weaker to levels last seen in October.

After dropping as much as 3,3% yesterday, the rand was relatively stable at R6,93/$1.

The most anticipated economic data today is the release of the US payroll and employment numbers, with markets expecting them to come in weak.

The data is undoubtedly the most important statistical release in the world, Rand Merchant Bank foreign exchange analysts, John Cairns and Nema Ramkhelawan-Bhana, said in research note. "Its importance increases under current circumstances; if US employment growth holds up, then this could prove to be only a "soft patch" in global economic activity. If not … then our fears will start playing out."

Mining mergers and acquisitions doubled in H1 2011 - Ernst Young

Wednesday, 27 Jul 2011

Advisory and accountancy firm Ernst & Young said that mining mergers and acquisitions doubled in the first half, coming close to the total for the whole of last year, although the pace was tempered by concerns over global macroeconomics and resource nationalism.

Total deal value jumped to USD 96.3 billion from USD 47.9 billion in the year earlier period, in part reflecting the larger size of deals in the sector. There was USD 113.7 billion of deals made in the whole of last year. Coal deals led the way in terms of value while gold transactions were tops by volume.

Mr Lee Downham, Ernst & Young's global mining & metals transaction advisory leader told Reuters that "Momentum is growing. We could see over USD 200 billion worth of deals by the end of the year."

The number of initial public offerings in mining & metals rose 30% to 73 in the first half, while total proceeds more than doubled to USD 13.0 billion, mainly on the USD 10 billion listing of commodities trader Glencore.

Mr Downham said that "It's difficult to say the numbers are up because of Glencore, because you could argue that if Glencore didn't happen the money could have gone to other IPOs."

He expects to see a significant number of mining and metals IPOs in the second half and beyond, although he said it would only take an event like a Greek default to delay IPOs. He said that "There are lots of IPOs in the second half that could have happened in the first half if Glencore hadn't listed."

Miners operating in Africa, the CIS, India and South America are looking at listing in London. Ernst & Young is working on a number of mining IPO deals at the top end of the FTSE 250 index and a couple of larger listings.

The companies looking to IPO operate in a diverse range of commodities including precious group metals, copper, gold and iron ore. He added that the firm is as busy as it was at the peak of the market in 2006-07.

(sourced from Reuters)

Niger: 3 Hostages From French Mine Are Released

Friday,Feb25,2011
By MARIE-PIA GOHIN

Al Qaeda’s North African affiliate has released three hostages abducted in September from a French-run mine in Niger, the French presidency said Friday. Niger authorities brought the three to Niamey, the capital, on Thursday, a security official said. The hostages, a Frenchwoman and men from Madagascar and Togo, and four Frenchmen were abducted from a uranium mine operated by the French nuclear giant Areva. It was not reported whether a ransom had been paid to Al Qaeda in the Islamic Maghreb, which claimed responsibility for the kidnappings. The other four hostages remain in captivity. (sourced:NyTimes)

Vale, ArcelorMittal among 15 bidding for Mongolia coal mine

By Miyoung Kim and Yuko Inoue
SEOUL/TOKYO Mon Jan 31, 2011 (Reuters)

Resource-hungry Asian states are locking horns with steelmaker ArcelorMittal and miner Vale to develop the world's largest untapped coking coal deposit in Mongolia, scrambling for raw materials to produce steel.
China, Japan and South Korea are scouring the world from Africa, India, Australia and South America and snapping up iron ore and coking coal assets to diversify from heavyweight suppliers such as BHP Billiton and Rio Tinto.

Asian private and state-linked firms are among the 15 bidders vying for Tavan Tolgoi coking coal project, along with the world's top steelmaker ArcelorMittal SA and the top iron ore miner Vale of Brazil, according to a source with direct knowledge of the matter.
Mongolia, while poor and undeveloped, sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade.
The country's fledgling democratic government plans to keep ownership of the mine, estimated to house a total 5 billion tonnes of coal reserves, and give strategic investors a chance to develop its western block on a contract basis.

Over 20 investment banks will this month submit written proposals for the privatisation of Tavan Tolgoi, which could value it at up to $8 billion, The Independent on Sunday reported this week.
"It is the biggest undeveloped coking coal mine in the world, it is strategically important and that's why you see so many interested parties," said Carol Cao, an analyst with Macquarie in Hong Kong.
South Korea bidders in the race also included Xstrata, U.S. coal miner Peabody and consortia led by South Korea, China, Japan and India.
State-run Korea Resources Corp said its consortium is formed of nine Korean firms, two Russian firms and four Japanese companies to develop the Tsankhi block, which is estimated to have 1.2 billion tonnes of coal reserves.
"Mongolia has rich untapped reserves and the block in the auction is very attractive, as it is one of the few large-sized coal mines in the world left undeveloped," Korea Resources Corp said in a statement.

UNCERTAINTY
Steelmakers across Asia have been scrambling to secure new supply channels after devastating floods hit Queensland -- the heart of Australia's coal mining sector -- in December and January.
The Mongolian government is likely to decide preferred bidders in mid-February, after the Lunar New Year holiday starting this week, Korea Resources said.
But auction, which closed on Monday after two weeks of delay, faces uncertainty, as Mongolia has struggled to develop a consistent strategy when it comes to overseas companies buying into national assets.

It has long frustrated the global resources industry for dragging its feet on investment decisions. The government, hobbled by indecision and bureaucratic infighting, took years to conclude the agreement to develop the Oyu Tolgoi copper and gold project.
An initial 2009 bidding auction for the Tavan Tolgoi coal project attracted consortia from South Korea, Japan and Russia as well as mining giants such as BHP, Vale, India's Jindal, and China Shenhua Energy.
But the government abruptly announced the auction would be cancelled early last year and said the state would maintain control and foreign firms could bid for licenses to develop and run the mine.
A top executive at a Japanese trading firm said BHP, which previously expressed interest in the project, had pulled out.

BIDDERS
Members of South Korean bidding group include steelmaker POSCO, utility firm KEPCO, trading firms LG Corp and Daewoo International Corp, Russian Railways and Japanese trading houses Itochu Corp, Sumitomo Corp, Marubeni Corp and Sojitz Corp.
Sources told Reuters on Monday competing Mitsui is leading a Japanese consortium, which has partnered with China's state-run Shenhua Group.
Some investors said winning the deal could add lustre to the winner's stock price over the long-term. (Reporting by Rebekah Kebede in PERTH, Ju-min Park in SEOUL, sourced: reuters)