Tuesday, 07 Feb 2012
Australian mining company Zyl, which last year attracted takeover interest said six companies have approached it about securing more than 600,000 tonnes a year of coking coal from its planned Mbila mine in South Africa.
Zyl said that the expressions of interest, including one from an unnamed international mining company, cover the full production expected by the company in the first phase of the mine’s development.
The Perth-based company said it was seeking to formalise the interest and would update the market in due course.
Zyl has previously said it expects to begin production at the mine, located in KwaZulu-Natal province, in the second quarter of 2013, and to reach full production of 840,000 tonnes a year by the second quarter of 2014. It has estimated Mbila has resources of almost 125 million tonnes, not including land where the company holds a prospecting right.
Zyl in December 2011 appointed Macquarie Capital as an adviser after it was approached by two unnamed parties interested in either a partnership or takeover.
(soured TheAustralian.com.au)
Showing posts with label Australian mines. Show all posts
Showing posts with label Australian mines. Show all posts
Tuesday, February 7, 2012
Tuesday, November 22, 2011
Mitsubishi, Chinese may rescue Australia iron ore and port plan
Tue Nov 22, 2011
MELBOURNE Nov 22 (Reuters) - Mitsubishi Corp and Chinese investors may save troubled multi-billion-dollar iron ore and deepwater port-cum-rail projects in Western Australia, analysts said on Tuesday, after the partner of Japan's top trading company looked set to exit the projects.
Mitsubishi's partner, Murchison Metals, said this week it aims to complete discussions by Wednesday on the sale of its 50 percent stakes in the A$5.9 billion Oakajee port and rail project and the A$3.7 billion Jack Hills iron ore project.
Murchison has been looking to sell because it has had difficulty raising its share of the funding for the Oakajee project and for Jack Hills, both of which have turned out to be more costly than first thought.
Analysts in Tokyo said they expect Mitsubishi to buy out Murchison and then sell stakes to new partners, adding that Mitsubishi would look to cut its exposure to the Oakajee and Jack Hills projects to less than 400 billion yen ($5.2 billion).
Two Chinese companies, seen as potential backers for the key rail line and port, are state-owned Sinosteel and Angang Steel Co (Ansteel) , which have interests in the midwest iron ore region in Western Australia.
Mitsubishi and Murchison declined to comment. Sinosteel and Angang couldn't be reached immediately for comments.
CHINESE INVOLVEMENT
Western Australia is eager to see Oakajee built and has been calling for Chinese involvement to get the project moving.
State premier Colin Barnett met in September with China's National Development and Reform Commission, the agency in charge of investment approvals, looking to drum up potential Chinese participation, Murchison said last month.
"I think what we are seeing now is what I have been waiting for sometime and that's a rearranging of the ownership structure of the Oakajee port and rail," Barnett told reporters on Tuesday. "That is important for the project to go ahead."
He said he is looking for the port and mine development to be separated.
"What we're interested in doing is getting a good corporate structure in place, whether it's Japanese, Chinese, Australian or anyone else that can actually undertake this project and fund it," Barnett said.
Analysts said it was too difficult to estimate how much Murchison may fetch for its stakes in the iron ore and infrastructure projects, because neither project is viable without the other.
"The lack of customers makes the Oakajee port and rail project difficult," said Chris Drew, an analyst at RBC Capital Markets.
SHARES HALTED
Murchison's shares, on a trading halt since Monday, were last at A$0.275, valuing the company at A$121.7 million. It has lost nearly 80 percent of its value this year amid doubts about the future of its two main assets.
The Oakajee port and rail project was designed to open a second major iron ore province in Australia to challenge the dominance of global giants Rio Tinto and BHP Billiton .
Sinosteel's Weld Range iron ore project was expected to use the Oakajee rail and port, but it put the mine development on hold earlier this year due to the setbacks facing the Oakajee port and rail line.
Ansteel's interest in the project is tied to its 30 percent stake in Gindalbie Metals, the third potential user of Oakajee.
Any sale of the Oakajee and Jack Hills stakes will need approval from Murchison's shareholders, including South Korean steelmaker POSCO.
($1 = 1.019 Australian dollars, 76.980 Japanese yen)
(sourced Reuters)
MELBOURNE Nov 22 (Reuters) - Mitsubishi Corp and Chinese investors may save troubled multi-billion-dollar iron ore and deepwater port-cum-rail projects in Western Australia, analysts said on Tuesday, after the partner of Japan's top trading company looked set to exit the projects.
Mitsubishi's partner, Murchison Metals, said this week it aims to complete discussions by Wednesday on the sale of its 50 percent stakes in the A$5.9 billion Oakajee port and rail project and the A$3.7 billion Jack Hills iron ore project.
Murchison has been looking to sell because it has had difficulty raising its share of the funding for the Oakajee project and for Jack Hills, both of which have turned out to be more costly than first thought.
Analysts in Tokyo said they expect Mitsubishi to buy out Murchison and then sell stakes to new partners, adding that Mitsubishi would look to cut its exposure to the Oakajee and Jack Hills projects to less than 400 billion yen ($5.2 billion).
Two Chinese companies, seen as potential backers for the key rail line and port, are state-owned Sinosteel and Angang Steel Co (Ansteel) , which have interests in the midwest iron ore region in Western Australia.
Mitsubishi and Murchison declined to comment. Sinosteel and Angang couldn't be reached immediately for comments.
CHINESE INVOLVEMENT
Western Australia is eager to see Oakajee built and has been calling for Chinese involvement to get the project moving.
State premier Colin Barnett met in September with China's National Development and Reform Commission, the agency in charge of investment approvals, looking to drum up potential Chinese participation, Murchison said last month.
"I think what we are seeing now is what I have been waiting for sometime and that's a rearranging of the ownership structure of the Oakajee port and rail," Barnett told reporters on Tuesday. "That is important for the project to go ahead."
He said he is looking for the port and mine development to be separated.
"What we're interested in doing is getting a good corporate structure in place, whether it's Japanese, Chinese, Australian or anyone else that can actually undertake this project and fund it," Barnett said.
Analysts said it was too difficult to estimate how much Murchison may fetch for its stakes in the iron ore and infrastructure projects, because neither project is viable without the other.
"The lack of customers makes the Oakajee port and rail project difficult," said Chris Drew, an analyst at RBC Capital Markets.
SHARES HALTED
Murchison's shares, on a trading halt since Monday, were last at A$0.275, valuing the company at A$121.7 million. It has lost nearly 80 percent of its value this year amid doubts about the future of its two main assets.
The Oakajee port and rail project was designed to open a second major iron ore province in Australia to challenge the dominance of global giants Rio Tinto and BHP Billiton .
Sinosteel's Weld Range iron ore project was expected to use the Oakajee rail and port, but it put the mine development on hold earlier this year due to the setbacks facing the Oakajee port and rail line.
Ansteel's interest in the project is tied to its 30 percent stake in Gindalbie Metals, the third potential user of Oakajee.
Any sale of the Oakajee and Jack Hills stakes will need approval from Murchison's shareholders, including South Korean steelmaker POSCO.
($1 = 1.019 Australian dollars, 76.980 Japanese yen)
(sourced Reuters)
Friday, October 28, 2011
Fortescue and NCC granted leave to appeal for rail network access in Pilbara
Friday, 28 October 2011
Australian miner Rio Tinto has announced that the High Court of Australia has granted Fortescue Metals Group Ltd and the National Competition Council (NCC) permission to appeal the decision of the Full Federal Court regarding third party utilization of the Pilbara rail lines in Western Australia.
As SteelOrbis previously reported, the Full Federal Court has endorsed the decision of the Australian Competition Tribunal not to open Australian miner Rio Tinto's Hamersley rail network in the Pilbara region to third party utilization.
Rio Tinto stated that no date has been set for the hearing of these appeals but it is expected that they will be listed in the first half of 2012. Rio Tinto said it will take all appropriate steps against the appeals in question.
Tags: iron ore , Australia , Rio Tinto , Fortescue , raw mat , Oceania , mining
sourced steelorbis
Australian miner Rio Tinto has announced that the High Court of Australia has granted Fortescue Metals Group Ltd and the National Competition Council (NCC) permission to appeal the decision of the Full Federal Court regarding third party utilization of the Pilbara rail lines in Western Australia.
As SteelOrbis previously reported, the Full Federal Court has endorsed the decision of the Australian Competition Tribunal not to open Australian miner Rio Tinto's Hamersley rail network in the Pilbara region to third party utilization.
Rio Tinto stated that no date has been set for the hearing of these appeals but it is expected that they will be listed in the first half of 2012. Rio Tinto said it will take all appropriate steps against the appeals in question.
Tags: iron ore , Australia , Rio Tinto , Fortescue , raw mat , Oceania , mining
sourced steelorbis
Thursday, October 20, 2011
WA iron ore shipments up 28pct - BHP Billiton
Thursday, 20 Oct 2011
MarketWatch quoted Anglo-Australian mining giant BHP Billiton Ltd said Western Australian iron ore shipments rose 28% to a record 173 million tonnes per annum in the calendar third quarter of 2011. Total company iron ore shipments climbed 24% compared to the year-ago period, while petroleum production rose 19% compared to a year ago.
(Sourced from MarketWatch)
MarketWatch quoted Anglo-Australian mining giant BHP Billiton Ltd said Western Australian iron ore shipments rose 28% to a record 173 million tonnes per annum in the calendar third quarter of 2011. Total company iron ore shipments climbed 24% compared to the year-ago period, while petroleum production rose 19% compared to a year ago.
(Sourced from MarketWatch)
Friday, September 30, 2011
Australia’s High Court grants Fortescue leave to appeal against ASIC
Sept30,2011
Australian miner Fortescue Metals Group (Fortescue) has announced that the Australian High Court has granted Fortescue leave to appeal the Full Federal Court decision dated February 18, 2011 in the civil penalty proceedings brought by Australia's corporate regulator Australian Securities and Investments Commission (ASIC) against Fortescue and Fortescue's chairman Andrew Forrest.
Fortescue and Mr. Forrest requested to appeal the Federal Court decision to allow ASIC's appeal against the original judgment in favor of Fortescue and Mr. Forrest on December 23, 2009. The hearing date of the High Court Appeal has not been revealed yet.
As SteelOrbis previously reported, ASIC had alleged that Fortescue made misleading and deceptive statements about agreements with three Chinese enterprises which the company termed binding contracts when actually this was not the case.
Tags: Australia , Oceania , steelmaking , Fortescue
(sourced steelorbis)
Australian miner Fortescue Metals Group (Fortescue) has announced that the Australian High Court has granted Fortescue leave to appeal the Full Federal Court decision dated February 18, 2011 in the civil penalty proceedings brought by Australia's corporate regulator Australian Securities and Investments Commission (ASIC) against Fortescue and Fortescue's chairman Andrew Forrest.
Fortescue and Mr. Forrest requested to appeal the Federal Court decision to allow ASIC's appeal against the original judgment in favor of Fortescue and Mr. Forrest on December 23, 2009. The hearing date of the High Court Appeal has not been revealed yet.
As SteelOrbis previously reported, ASIC had alleged that Fortescue made misleading and deceptive statements about agreements with three Chinese enterprises which the company termed binding contracts when actually this was not the case.
Tags: Australia , Oceania , steelmaking , Fortescue
(sourced steelorbis)
Tuesday, August 23, 2011
BHP Billiton one step closer to Petrohawk Energy acquisition
Tuesday, 23 August 2011
Australia-based global mining giant BHP Billiton announced Monday that it has completed its tender offer to acquire the shares of US-based shale gas mining company Petrohawk Energy Corporation. BHP will pay US$38.75 per Petrohawk share in its takeover deal. Petrohawk shares represent a total equity value of approximately US$12.1 billion and a total enterprise value of approximately US$15.1 billion. The acquisition gives BHP positions in two of the US' largest shale drilling formations, the Eagle Ford and Haynesville plays.
In a press release, BHP said that by midnight Friday, August 19, BHP successfully acquired 97.4 percent of the outstanding shares of Petrohawk. "As the final step of the acquisition process and following payment for all shares validly tendered and not withdrawn on or prior to the expiration of the Offer, BHP Billiton expects to effect a short-form merger under Delaware law as promptly as practicable."
(sourced steelorbis)
Australia-based global mining giant BHP Billiton announced Monday that it has completed its tender offer to acquire the shares of US-based shale gas mining company Petrohawk Energy Corporation. BHP will pay US$38.75 per Petrohawk share in its takeover deal. Petrohawk shares represent a total equity value of approximately US$12.1 billion and a total enterprise value of approximately US$15.1 billion. The acquisition gives BHP positions in two of the US' largest shale drilling formations, the Eagle Ford and Haynesville plays.
In a press release, BHP said that by midnight Friday, August 19, BHP successfully acquired 97.4 percent of the outstanding shares of Petrohawk. "As the final step of the acquisition process and following payment for all shares validly tendered and not withdrawn on or prior to the expiration of the Offer, BHP Billiton expects to effect a short-form merger under Delaware law as promptly as practicable."
(sourced steelorbis)
Monday, August 1, 2011
Chinese demand keeps coal at near record prices
Monday, 01 Aug 2011 |By VancouverSun
According to Scotiabank latest Commodity Price Index the world benchmark price for steelmaking coal slipped from its record high for the current quarter but that likely won’t hurt producers too deeply.
Ms Patricia Mohr Scotiabank commodity expert said prices and largely set by contract fell to USD 315 per tonne from USD 330 in the previous quarter largely because of the recovery of production at Australian mines that were flooded out by La Nina related winter storms.
She added that “But that USD 315 is still higher than any price other than the previous quarter. Three-hundred and fifteen dollars is very high. She added that it was China near record high steel production earlier this year that held coal prices up.”
In the long run however, Ms Mohr expects Chinese demand to keep metallurgical coal at relatively high prices. She noted that new coal shipments from Mongolia made that country China biggest supplier in the first half of 2011 but that was largely because of the steep decline in shipments from Queensland in Australia which have not fully recovered.
For the balance of 2011, Ms Mohr expects the top price for metallurgical coal to average USD 298 which is still lucrative and offers support to the expansion ambitions of Canadian companies such as Teck proposed reopening of its Quintette mine in northeastern British Columbia.
She said “It all depends on China and its economic growth continuing to move ahead at a reasonable pace.”
Japan saw some of its steel production interrupted by the March 21 earthquake and tsunami that devastated a large swath of North Eastern Japan. However, China demand would have more than offset the reduction in Japan’s production.
Coking coal is mixed with iron ore and burned in blast furnaces during the steel smelting process. However, the interruption of steel production capacity in Japan is still weighing on BC Teck Resources Ltd which cited the deferral of shipments by Japanese customers as the reason for a reduction in its estimate for output in the second quarter of 2011.
Ms Patricia Mohr Scotiabank commodity expert said prices and largely set by contract fell to USD 315 per tonne from USD 330 in the previous quarter largely because of the recovery of production at Australian mines that were flooded out by La Nina related winter storms.
She added that “But that USD 315 is still higher than any price other than the previous quarter. Three-hundred and fifteen dollars is very high. She added that it was China near record high steel production earlier this year that held coal prices up.”
In the long run however, Ms Mohr expects Chinese demand to keep metallurgical coal at relatively high prices. She noted that new coal shipments from Mongolia made that country China biggest supplier in the first half of 2011 but that was largely because of the steep decline in shipments from Queensland in Australia which have not fully recovered.
For the balance of 2011, Ms Mohr expects the top price for metallurgical coal to average USD 298 which is still lucrative and offers support to the expansion ambitions of Canadian companies such as Teck proposed reopening of its Quintette mine in northeastern British Columbia.
She said “It all depends on China and its economic growth continuing to move ahead at a reasonable pace.”
Japan saw some of its steel production interrupted by the March 21 earthquake and tsunami that devastated a large swath of North Eastern Japan. However, China demand would have more than offset the reduction in Japan’s production.
Coking coal is mixed with iron ore and burned in blast furnaces during the steel smelting process. However, the interruption of steel production capacity in Japan is still weighing on BC Teck Resources Ltd which cited the deferral of shipments by Japanese customers as the reason for a reduction in its estimate for output in the second quarter of 2011.
BHP Australian miners resume strikes
Monday, 01 Aug 2011 |By Bloomberg
Workers at BHP Billiton Ltd resumed strikes on Sunday as labor unions prepare for the last two rounds of talks with management.
Employees at the Gregory and Crinum mines started shift long stoppages that typically last 12 hours, Mr Stephen Smyth a division president at the construction, forestry, mining and energy union in Queensland said that the company plans two sets of meetings with the union in August before seeking a vote on a new work agreement.
About 3,500 workers at BHP’s coking-coal mines have been taking part in a series of strikes that began in June, the first in a decade at the company’s Australian mines. Miners globally are stepping up demand for better pay and job security as producers such as BHP and Xstrata Plc are forecast to report record earnings, driven by demand from China.
Mr Smyth said that “We’ve made some slight progress, but on the big ticket items it’s slow going. If we’re not happy with the contents of any agreement, we will tell our members that. We are considering ramping up the action if there isn’t progress.”
Workers at BHP Billiton Ltd resumed strikes on Sunday as labor unions prepare for the last two rounds of talks with management.
Employees at the Gregory and Crinum mines started shift long stoppages that typically last 12 hours, Mr Stephen Smyth a division president at the construction, forestry, mining and energy union in Queensland said that the company plans two sets of meetings with the union in August before seeking a vote on a new work agreement.
About 3,500 workers at BHP’s coking-coal mines have been taking part in a series of strikes that began in June, the first in a decade at the company’s Australian mines. Miners globally are stepping up demand for better pay and job security as producers such as BHP and Xstrata Plc are forecast to report record earnings, driven by demand from China.
Mr Smyth said that “We’ve made some slight progress, but on the big ticket items it’s slow going. If we’re not happy with the contents of any agreement, we will tell our members that. We are considering ramping up the action if there isn’t progress.”
Saturday, February 26, 2011
Yankuang Group targets 80Mt coal output this yr
Feb 26, 2011
Yankuang Group, the parent of Yanzhou Coal Mining Co., is targeting 80 million tonnes coal output in 2011, growing 30 percent from 2010, the Wall Street Journal reported, citing the company’s chairman.
The increase would mainly come from its Australian mines. In Dec 2009, Yankuang purchased Australia’s Felix Resource Ltd at the cost of A$3.54 billion.
The group expects its coal output to reach 150 million tonnes in 2015, increasing 1.5 times from 60 million tonnes in 2010, chairman Wang Xin was cited as said.
Coal produced by Yankuang had stood at 40 million tonnes in last years, and surged to 60 million tonnes in 2010, thanks to increased imports from Australia, said the chairman.
(sourced:en.sxcoal.com)
The increase would mainly come from its Australian mines. In Dec 2009, Yankuang purchased Australia’s Felix Resource Ltd at the cost of A$3.54 billion.
The group expects its coal output to reach 150 million tonnes in 2015, increasing 1.5 times from 60 million tonnes in 2010, chairman Wang Xin was cited as said.
Coal produced by Yankuang had stood at 40 million tonnes in last years, and surged to 60 million tonnes in 2010, thanks to increased imports from Australia, said the chairman.
(sourced:en.sxcoal.com)
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