Wed 2 Feb, 2011
TORONTO: ArcelorMittal and Nunavut Iron Ore Acquisition Inc , which are now the joint owners of Canada's iron ore-rich Baffinland Iron Mines Corporation , Tuesday announced taking up an additional 4,773,400 common shares of Baffinland at their outstanding offer of $1.50 per share.
Abandoning their rivalry to take over Baffinland, ArcelorMittal and Nunavut made a joint bid for the Toronto-based iron-ore giant January 14 at $1.50 per per share.
With their successful $590-million bid last week, the two became joint owners of Baffinland, with ArcelorMittal controlling the larger stake of 70 percent and Nunavat 30 percent.
Holding about 60 percent of Baffinland stock at the time of their takeover, the two partners waived a two-thirds minimum tender condition and offered to buy the remaining shares at $1.50 per share till February 4.
The additional acquisition of common shares announced Tuesday takes their share of Baffinland stock to 65 percent.
The new owners said their "offer remains open for acceptance until 11:59 p.m. (Toronto time) on February 4, 2011, to allow Baffinland security holders who have not yet tendered their common shares and 2007 Warrants time to do so and receive prompt payment for their tendered securities.''
The battle for Baffinland began in September when Nunavat offered 80 cents a share for a majority stake in it and ArcelorMittal entered the fray with its offer of $1.10 per share for 100 percent control.
Both eyed Baffinland's 365 million tonnes of iron ore at its Mary River site in Canadian Arctic.
The Mary River project, which needs $4 billion to complete, can yield up to 18 million tonnes of iron ore annually for up to two decades.
Investment bank Jennings Capital Inc. says the project holds "the best undeveloped iron ore deposit in the world.''
Showing posts with label Mary River iron ore deposit. Show all posts
Showing posts with label Mary River iron ore deposit. Show all posts
Wednesday, February 2, 2011
Tuesday, January 18, 2011
Developing Arctic iron ore mine is no easy task
Tue Jan 18, 2011 4:06pm GMT By Julie Gordon
TORONTO, Jan 18 (Reuters) - Developing Canada's Mary River iron ore deposit, a rich reserve that could supply Europe for years, will test the boundaries of working in the Arctic and could herald the future of global mining.
It has taken 47 years, near-record iron ore prices and a bidding war to get the project to a point where developing a working mine seems like a legitimate possibility.
A takeover battle between ArcelorMittal (ISPA.AS: Quote) and Nunavut Iron Ore ended last week with a combined bid to take joint control of Baffinland Iron Mines (BIM.TO: Quote), whose board has endorsed the offer. That means Baffinland's Mary River project could finally start production as early as 2013.
Even so, getting the ore out of the ground in a polar desert - considered Canada's harshest environment -- and loaded on to Europe-bound ships is a daunting task.
"You've got problems of remoteness, of weather, and of darkness," said Victor Pakalnis of the Robert M. Buchan Department of Mining at Queen's University in Kingston, Ontario. "It's a different environment than most of us are used to."
The project is located about 3,000 km (1,864 miles) due north of Toronto within the Arctic Circle, where in winter the average temperature dips below minus 28 degrees Celsius and near 24-hour darkness is the norm.
"There's also the challenge of working with permafrost - permanently frozen ground," Pakalnis said.
As permafrost melts over the summer months, the soil becomes weak causing buildings and roads and other infrastructure to shift.
"You've got to have some insulating capacity," Pakalnis said. "The shifting can destroy roads and railway lines."
sourced by reuters
TORONTO, Jan 18 (Reuters) - Developing Canada's Mary River iron ore deposit, a rich reserve that could supply Europe for years, will test the boundaries of working in the Arctic and could herald the future of global mining.
It has taken 47 years, near-record iron ore prices and a bidding war to get the project to a point where developing a working mine seems like a legitimate possibility.
A takeover battle between ArcelorMittal (ISPA.AS: Quote) and Nunavut Iron Ore ended last week with a combined bid to take joint control of Baffinland Iron Mines (BIM.TO: Quote), whose board has endorsed the offer. That means Baffinland's Mary River project could finally start production as early as 2013.
Even so, getting the ore out of the ground in a polar desert - considered Canada's harshest environment -- and loaded on to Europe-bound ships is a daunting task.
"You've got problems of remoteness, of weather, and of darkness," said Victor Pakalnis of the Robert M. Buchan Department of Mining at Queen's University in Kingston, Ontario. "It's a different environment than most of us are used to."
The project is located about 3,000 km (1,864 miles) due north of Toronto within the Arctic Circle, where in winter the average temperature dips below minus 28 degrees Celsius and near 24-hour darkness is the norm.
"There's also the challenge of working with permafrost - permanently frozen ground," Pakalnis said.
As permafrost melts over the summer months, the soil becomes weak causing buildings and roads and other infrastructure to shift.
"You've got to have some insulating capacity," Pakalnis said. "The shifting can destroy roads and railway lines."
sourced by reuters
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