Sunday, 04 Mar 2012
Australian shares fell 1% with miners dented by falls in copper and gold prices on signs the US is not planning fresh stimulus measures though the local market was lifted from its lows by positive signs from top customer China.
China's factory sector grew more than expected in February as export orders expanded for the first time in 4 months, supporting hopes the world's second biggest economy can avoid a hard landing.
Mr David Spry research manager at broker FW Holst said that "China is continuing to chug on. It's coming off a bit but it's not something that at this stage we get too concerned about. I think we'll range trade as we have been for a little while. There's nothing really to give us that next kick. To get a uniform swing up is going to take something quite dramatic to happen and I just can't see anything ion the horizon to drive that.
Mr Cameron Peacock analyst at CMC Markets said that "How did the market interpret these comments? Don't expect QE3 anytime soon. The ramifications for the commodity complex were significant, with base metals selling off sharply, oil continuing its pullback from recent highs and gold getting slammed by more than USD 85.
New Zealand's benchmark NZX 50 index rose 0.3% to 3330.9. Among other major movers in Australia, coal miner New Hope Corp dived 4.9% after it scrapped plans to sell itself for more than USD 5 billion.
Woolworths was flat after 3.2% rise in H1 earnings satisfied analyst forecasts and the supermarket leader said it was still on track to achieve full year guidance for 2% to 6% profit growth.
Source - Economic Times
Showing posts with label share. Show all posts
Showing posts with label share. Show all posts
Sunday, March 4, 2012
Tuesday, February 28, 2012
Rio and Vale in talks on infrastructure sharing in Guinea
Tuesday, 28 Feb 2012
According to the Australian Financial Review, Rio Tinto Ltd is in talks with Brazilian mining giant Vale about sharing rail and port infrastructure for their two Simandou iron ore projects in Guinea, in a significant shift for the Anglo Australian miner.
The newspaper reported that sources close to Rio have said that talks between the two miners were taking place before the signing of a final infrastructure agreement with Guinea's government.
The discussions are being held in parliament over Rio's ability to access the coal infrastructure that Vale is constructing in Mozambique where both miners have coking coal projects.
Rio had previously denied that Vale or its partner, BSG Resources, had any rights to develop the Northern half of the Simandou project, which the Guinean governments removed from Rio's ownership in 2008.
(sourced Businessspectator.com.au)
According to the Australian Financial Review, Rio Tinto Ltd is in talks with Brazilian mining giant Vale about sharing rail and port infrastructure for their two Simandou iron ore projects in Guinea, in a significant shift for the Anglo Australian miner.
The newspaper reported that sources close to Rio have said that talks between the two miners were taking place before the signing of a final infrastructure agreement with Guinea's government.
The discussions are being held in parliament over Rio's ability to access the coal infrastructure that Vale is constructing in Mozambique where both miners have coking coal projects.
Rio had previously denied that Vale or its partner, BSG Resources, had any rights to develop the Northern half of the Simandou project, which the Guinean governments removed from Rio's ownership in 2008.
(sourced Businessspectator.com.au)
Wednesday, February 22, 2012
Taiwan's China Steel to invest in Australia coal mine
Feb22, 2012
TAIPEI (Reuters) - China Steel, Taiwan's top steel maker, said on Tuesday it will pay T$3.06 billion ($104 million) to invest in a coal mine in Australia and take rights to 10 percent of the future output, in a move to counter the impact of higher coal prices.
About half the amount will be used to buy the share of output rights at the MDL 162 site in the northern state of Queensland, while the rest will go on building facilities and on future development, China Steel said in a statement.
The investment will secure annual output of 600,000 tons of metallurgical coal for China Steel once completed in 2016, raising its owned coal supply to 7 percent from 3 percent of total supply, a spokesman said separately.
Falling demand for steel amid a global slowdown but higher prices of raw materials like coal have prompted China Steel and global rivals to try and seek their own supplies.
In December China Steel agreed to a 23 percent cut in iron ore prices and had earlier said it was seeking to delay some raw material deliveries.
Shares of China Steel ended flat before the announcement, versus a 0.42 percent slide of the broader market.
(sourced Reuters)
TAIPEI (Reuters) - China Steel, Taiwan's top steel maker, said on Tuesday it will pay T$3.06 billion ($104 million) to invest in a coal mine in Australia and take rights to 10 percent of the future output, in a move to counter the impact of higher coal prices.
About half the amount will be used to buy the share of output rights at the MDL 162 site in the northern state of Queensland, while the rest will go on building facilities and on future development, China Steel said in a statement.
The investment will secure annual output of 600,000 tons of metallurgical coal for China Steel once completed in 2016, raising its owned coal supply to 7 percent from 3 percent of total supply, a spokesman said separately.
Falling demand for steel amid a global slowdown but higher prices of raw materials like coal have prompted China Steel and global rivals to try and seek their own supplies.
In December China Steel agreed to a 23 percent cut in iron ore prices and had earlier said it was seeking to delay some raw material deliveries.
Shares of China Steel ended flat before the announcement, versus a 0.42 percent slide of the broader market.
(sourced Reuters)
Saturday, January 21, 2012
African Iron directors accept Exxaro offer
Saturday, 21 Jan 2012
African Iron directors have now formally accepted Exxaro offer for all of the African Iron shares and listed options owned or controlled by them.
Exxaro is offering AUD 0.51 cash for each African Iron share which Exxaro will increase to AUD 0.57 cash per share if it acquires a relevant interest in 75% or more of all the African Iron shares. Exxaro is also offering AUD 0.31 cash for each listed option which Exxaro will increase to AUD 0.37 cash per listed option if it acquires a relevant interest in 75% or more of all the African Iron shares.
The acceptance of Exxaro offer by the African Iron directors in respect of a total of 1,300,000 shares and 100,000 listed options held by them follows the announcement earlier this week that African Iron largest shareholder, Cape Lambert had formally accepted Exxaro offer for shares equivalent to 19.99% of African Iron.
The acceptance accords with the statements included in African Iron Target Statement regarding the directors’ intentions to accept the offers and increases Exxaro interest in African Iron shares above 20%.
In African Iron Target Statement, the African Iron directors also declared their intention to accept Exxaro private offers for all of the African Iron unlisted options owned or controlled by them.
Dr Ian Burston African Iron, Independent Non-Executive Chairman said “the Board had carefully considered Exxaro takeover offer and recommended that shareholders and listed option holders accept it, in the absence of a superior proposal. All shareholders and option holders should this week receive African Iron’s Target’s Statement which details the offers and we encourage them to read this document carefully before they make any decision.”
As detailed in the Target Statement, African Iron shareholders and option holders have a number of alternatives available to them:
I. Accept Exxaro offer for their African Iron shares and/or listed options
II. Sell their African Iron shares and/or listed options on market
III. Listed option holders can exercise their options and sell the shares on market; or Do nothing.
Dr Burston said that “Shareholders and option holders should be aware that if they do nothing, the price of African Iron shares and options is likely to fall if the offer closes and Exxaro has acquired a relevant interest in less than 90% of the African Iron shares on issue.”
The African Iron board unanimously recommends that shareholders and option holders accept the Exxaro takeover offers in the absence of a superior proposal.
Exxaro takeover offer will remain open until 5.00pm Perth time on 14 February 2012 unless extended.
African Iron directors have now formally accepted Exxaro offer for all of the African Iron shares and listed options owned or controlled by them.
Exxaro is offering AUD 0.51 cash for each African Iron share which Exxaro will increase to AUD 0.57 cash per share if it acquires a relevant interest in 75% or more of all the African Iron shares. Exxaro is also offering AUD 0.31 cash for each listed option which Exxaro will increase to AUD 0.37 cash per listed option if it acquires a relevant interest in 75% or more of all the African Iron shares.
The acceptance of Exxaro offer by the African Iron directors in respect of a total of 1,300,000 shares and 100,000 listed options held by them follows the announcement earlier this week that African Iron largest shareholder, Cape Lambert had formally accepted Exxaro offer for shares equivalent to 19.99% of African Iron.
The acceptance accords with the statements included in African Iron Target Statement regarding the directors’ intentions to accept the offers and increases Exxaro interest in African Iron shares above 20%.
In African Iron Target Statement, the African Iron directors also declared their intention to accept Exxaro private offers for all of the African Iron unlisted options owned or controlled by them.
Dr Ian Burston African Iron, Independent Non-Executive Chairman said “the Board had carefully considered Exxaro takeover offer and recommended that shareholders and listed option holders accept it, in the absence of a superior proposal. All shareholders and option holders should this week receive African Iron’s Target’s Statement which details the offers and we encourage them to read this document carefully before they make any decision.”
As detailed in the Target Statement, African Iron shareholders and option holders have a number of alternatives available to them:
I. Accept Exxaro offer for their African Iron shares and/or listed options
II. Sell their African Iron shares and/or listed options on market
III. Listed option holders can exercise their options and sell the shares on market; or Do nothing.
Dr Burston said that “Shareholders and option holders should be aware that if they do nothing, the price of African Iron shares and options is likely to fall if the offer closes and Exxaro has acquired a relevant interest in less than 90% of the African Iron shares on issue.”
The African Iron board unanimously recommends that shareholders and option holders accept the Exxaro takeover offers in the absence of a superior proposal.
Exxaro takeover offer will remain open until 5.00pm Perth time on 14 February 2012 unless extended.
Tuesday, January 10, 2012
Rio Tinto offer for Hathor Exploration
Tuesday, 10 Jan 2012
Rio Tinto through an indirect wholly owned subsidiary has now taken up a total of 119,456,310 Hathor common shares representing approximately 93.76% of the outstanding common shares of Hathor on a fully diluted basis pursuant to its offer to acquire all of the outstanding Hathor common shares.
Rio Tinto offer expired at 5:00pm on 6 January 2012. All Hathor common shares validly deposited and not withdrawn before the expiry of the offer have been taken up and payment will be made for such shares within three business days of take-up. Rio Tinto now intends to acquire all outstanding Hathor common shares not tendered to the offer through a compulsory acquisition under the Canada Business Corporations Act.
Rio Tinto also intends to apply to delist the Hathor common shares from the Toronto Stock Exchange as soon as practicable after the completion of the compulsory acquisition.
Rio Tinto through an indirect wholly owned subsidiary has now taken up a total of 119,456,310 Hathor common shares representing approximately 93.76% of the outstanding common shares of Hathor on a fully diluted basis pursuant to its offer to acquire all of the outstanding Hathor common shares.
Rio Tinto offer expired at 5:00pm on 6 January 2012. All Hathor common shares validly deposited and not withdrawn before the expiry of the offer have been taken up and payment will be made for such shares within three business days of take-up. Rio Tinto now intends to acquire all outstanding Hathor common shares not tendered to the offer through a compulsory acquisition under the Canada Business Corporations Act.
Rio Tinto also intends to apply to delist the Hathor common shares from the Toronto Stock Exchange as soon as practicable after the completion of the compulsory acquisition.
Monday, December 12, 2011
New Mining Bill tabled in Lok Sabha
Monday, December 12, 2011
New Delhi: The Mines Ministry today tabled the new Mining Bill in Lok Sabha proposing coal miners to share 26% of the profit and non-coal miners' 100% of the royalty annually to project-affected people.
The Mines and Minerals (Development and Regulation) Bill, 2011, which will replace the over-a-century old, often-amended Act of 1957, also seeks to empower state governments to constitute special courts for the purpose of providing speedy trial of offences relating to illegal mining.
"The holder of a mining lease shall pay annually to the District Mineral Foundation...In case of major minerals [except coal and lignite] an amount equivalent to the royalty paid during the financial year," the Bill proposes.
"...In case of coal and lignite, an amount equivalent to twenty six% of the profit...In case of minor minerals, such amount as may be prescribed by the State government with the concurrence of the National Mining Regulatory Authority," it added.
The long-pending Bill also envisages introduction of competitive bidding process to encourage participation of private parties and a change in the role of the central and state governments, particularly to incentivise them for investing in exploration and mining.
The Mines & Minerals (Development and Regulation) Bill, 2011 provides for a simple and transparent mechanism for grant of mining lease or prospecting licence through competitive bidding in areas of known mineralisation, and on the basis of first-in-time in areas where mineralisation is not known.
(sourced Business Standard)
New Delhi: The Mines Ministry today tabled the new Mining Bill in Lok Sabha proposing coal miners to share 26% of the profit and non-coal miners' 100% of the royalty annually to project-affected people.
The Mines and Minerals (Development and Regulation) Bill, 2011, which will replace the over-a-century old, often-amended Act of 1957, also seeks to empower state governments to constitute special courts for the purpose of providing speedy trial of offences relating to illegal mining.
"The holder of a mining lease shall pay annually to the District Mineral Foundation...In case of major minerals [except coal and lignite] an amount equivalent to the royalty paid during the financial year," the Bill proposes.
"...In case of coal and lignite, an amount equivalent to twenty six% of the profit...In case of minor minerals, such amount as may be prescribed by the State government with the concurrence of the National Mining Regulatory Authority," it added.
The long-pending Bill also envisages introduction of competitive bidding process to encourage participation of private parties and a change in the role of the central and state governments, particularly to incentivise them for investing in exploration and mining.
The Mines & Minerals (Development and Regulation) Bill, 2011 provides for a simple and transparent mechanism for grant of mining lease or prospecting licence through competitive bidding in areas of known mineralisation, and on the basis of first-in-time in areas where mineralisation is not known.
(sourced Business Standard)
Friday, December 2, 2011
From rags to riches at South Africa iron ore mine
Fri Dec 2, 2011
KATHU, South Africa Dec 2 (Reuters) - Life is about to get a lot better for people like Christopher Mocwane, a worker at one of the world's largest iron ore mines outside this dusty town in the middle of the Kalahari desert.
Thanks to an employee share ownership scheme, the 47-year-old, who earns 7,000 rand ($835) a month, is about to receive a 576,045-rand ($68,700) windfall.
"I'm going to buy myself a house. The one where I live now, I'll fix it and give it to my mother," he told Reuters, wiping the sweat off his forehead in the scorching heat. "She was very happy when I told her."
"My children are still small, but I will now be able to send them to school when they grow up," he added with a nervous smile.
Mocwane is one of 6,200 workers at Kumba Iron Ore due to benefit from the plan aimed at ensuring all its workers share the profits of the iron ore producer over the past five years.
A unit of global miner Anglo American, Kumba has already paid out 279 million rand in dividends to the same employees, an average of 55,000 rand per person over five years.
The lump sum to be paid out between Dec. 15 and 17 is linked to the share price on Nov. 17, and comes to around 345,000 rand per employee after taxes. Those who have not been with Kumba for the full five years will get less.
"I've tried to fix my house. We had a problem with water, and now we have water," said Mocwane, who has worked at the open-pit mine for 17 years, first as a cleaner and now driving trucks.
"For many years I didn't have a car, but I have one now. I can see a lot of difference in my life," he said.
A SUCCESS FOR EMPOWERMENT SCHEME
Kumba's "Envision" programme has become a poster child for South Africa's much-maligned Black Economic Empowerment scheme aimed at giving blacks a stake in the economy after apartheid was dismantled in 1994.
Under the scheme, companies are required to meet quotas on black ownership, employment and procurement. Many have invested millions to build houses, hospitals and schools, but unions say Kumba's solution is unique.
"Every benefit the company is earning, (the workers) are part of it ... and it's not just a one-off," said Tebogo Chakapedi, a shopsteward at the National Union of Mineworkers.
"We would like that at a national level all companies adapt this," Chakapedi added.
Kumba's scheme was established when the iron ore assets of then Kumba Resources were unbundled in the Sishen Iron Ore Company (SIOC) in 2006.
Luckily for the employees, the company's share price has since soared thanks to rising prices of iron ore -- a core ingredient in steel -- from 120 rand in 2006 when the scheme was launched to 502 rand on Friday.
Many empowerment schemes have been criticised as only benefiting a small and politically-connected elite in a country where millions of black South Africans still live in poverty and more than a quarter of the workforce is jobless.
Critics, including some in South Africa's ruling African National Congress calling for the nationalisation of mines, also contend that mining houses have done little for the communities that sit atop the minerals.
This has sparked a drive by unions and the government to push for more broad-based deals like Kumba's.
GOOD BUSINESS SENSE
Kumba chief executive Chris Griffith said Envision made business sense as well.
"We haven't had a strike in years. Employees are thinking all the time about how to continue to deliver what we are expected to deliver ... that also brings a lot of comfort for investors," he said.
Kumba today boasts one of the lowest staff turnover rates in the industry at around 3 percent and has launched another 5-year scheme bringing more dividends and another lump sum in 2016 as an incentive to stay on instead of cashing in and leaving.
Aware of the potential negative effects of sudden windfalls, the company has organised workshops, industrial theatre performances and distributed comics over the past year to teach workers about how to pay off debt and invest in housing.
They were also taught how to pay taxes -- a new experience for some given their incomes range between 5,000 and 20,000 rand a month, excluding benefits.
The arid Northern Cape province all around Kathu is sparsely populated and impoverished, a sprawling rural area where carts are still drawn by donkeys.
But there is lots of building activity in Kathu and new businesses like hair salons and car washes are springing up, partially supported through programmes organised by Kumba.
In a country with one of the world's highest crime rates, there are concerns that the next pay day will be a magnet for criminals. Kumba said it was working with the local police to make sure people would not be targeted by thieves.
"I'm afraid (you) will see people knocking on your door saying 'oh, I'm selling this...', maybe coming to rob us," said Patricia Andries, a health and safety officer at the mine.
For now workers are just counting the days.
"It's like a kid waiting for Christmas ... my wife can't wait," said Ian van den Heever, a boiler maker at the mine.
(sourced Reuters)
KATHU, South Africa Dec 2 (Reuters) - Life is about to get a lot better for people like Christopher Mocwane, a worker at one of the world's largest iron ore mines outside this dusty town in the middle of the Kalahari desert.
Thanks to an employee share ownership scheme, the 47-year-old, who earns 7,000 rand ($835) a month, is about to receive a 576,045-rand ($68,700) windfall.
"I'm going to buy myself a house. The one where I live now, I'll fix it and give it to my mother," he told Reuters, wiping the sweat off his forehead in the scorching heat. "She was very happy when I told her."
"My children are still small, but I will now be able to send them to school when they grow up," he added with a nervous smile.
Mocwane is one of 6,200 workers at Kumba Iron Ore due to benefit from the plan aimed at ensuring all its workers share the profits of the iron ore producer over the past five years.
A unit of global miner Anglo American, Kumba has already paid out 279 million rand in dividends to the same employees, an average of 55,000 rand per person over five years.
The lump sum to be paid out between Dec. 15 and 17 is linked to the share price on Nov. 17, and comes to around 345,000 rand per employee after taxes. Those who have not been with Kumba for the full five years will get less.
"I've tried to fix my house. We had a problem with water, and now we have water," said Mocwane, who has worked at the open-pit mine for 17 years, first as a cleaner and now driving trucks.
"For many years I didn't have a car, but I have one now. I can see a lot of difference in my life," he said.
A SUCCESS FOR EMPOWERMENT SCHEME
Kumba's "Envision" programme has become a poster child for South Africa's much-maligned Black Economic Empowerment scheme aimed at giving blacks a stake in the economy after apartheid was dismantled in 1994.
Under the scheme, companies are required to meet quotas on black ownership, employment and procurement. Many have invested millions to build houses, hospitals and schools, but unions say Kumba's solution is unique.
"Every benefit the company is earning, (the workers) are part of it ... and it's not just a one-off," said Tebogo Chakapedi, a shopsteward at the National Union of Mineworkers.
"We would like that at a national level all companies adapt this," Chakapedi added.
Kumba's scheme was established when the iron ore assets of then Kumba Resources were unbundled in the Sishen Iron Ore Company (SIOC) in 2006.
Luckily for the employees, the company's share price has since soared thanks to rising prices of iron ore -- a core ingredient in steel -- from 120 rand in 2006 when the scheme was launched to 502 rand on Friday.
Many empowerment schemes have been criticised as only benefiting a small and politically-connected elite in a country where millions of black South Africans still live in poverty and more than a quarter of the workforce is jobless.
Critics, including some in South Africa's ruling African National Congress calling for the nationalisation of mines, also contend that mining houses have done little for the communities that sit atop the minerals.
This has sparked a drive by unions and the government to push for more broad-based deals like Kumba's.
GOOD BUSINESS SENSE
Kumba chief executive Chris Griffith said Envision made business sense as well.
"We haven't had a strike in years. Employees are thinking all the time about how to continue to deliver what we are expected to deliver ... that also brings a lot of comfort for investors," he said.
Kumba today boasts one of the lowest staff turnover rates in the industry at around 3 percent and has launched another 5-year scheme bringing more dividends and another lump sum in 2016 as an incentive to stay on instead of cashing in and leaving.
Aware of the potential negative effects of sudden windfalls, the company has organised workshops, industrial theatre performances and distributed comics over the past year to teach workers about how to pay off debt and invest in housing.
They were also taught how to pay taxes -- a new experience for some given their incomes range between 5,000 and 20,000 rand a month, excluding benefits.
The arid Northern Cape province all around Kathu is sparsely populated and impoverished, a sprawling rural area where carts are still drawn by donkeys.
But there is lots of building activity in Kathu and new businesses like hair salons and car washes are springing up, partially supported through programmes organised by Kumba.
In a country with one of the world's highest crime rates, there are concerns that the next pay day will be a magnet for criminals. Kumba said it was working with the local police to make sure people would not be targeted by thieves.
"I'm afraid (you) will see people knocking on your door saying 'oh, I'm selling this...', maybe coming to rob us," said Patricia Andries, a health and safety officer at the mine.
For now workers are just counting the days.
"It's like a kid waiting for Christmas ... my wife can't wait," said Ian van den Heever, a boiler maker at the mine.
(sourced Reuters)
Friday, November 4, 2011
Kumba workers to get ZAR 500 000 each
Friday, 04 Nov 2011 | By MoneyWeb.co.za
Kumba Iron Ore announced that its shareholders had approved the general terms and conditions necessary to implement phase one of its broad based employee share participation scheme known as Envision.
The offering is seen as the most generous in the history of SA mining with employees from the lowest skill levels expecting to take home what may amount to R500 000 for five years of service.
This is in addition to the basic salaries earned by employees and an average of ZAR 55 000 in dividends thus far payed out by the scheme to individual participants.
According to Vusani Malie company secretary, employees will be paid out the capital appreciation linked to Envision’s 3% holding of Sishen Iron Ore Company, Kumba’s major subsidiary, accumulated over the five years since the scheme was implemented
The actual value of the payout will be calculated based on the five day volume weighted average price of Kumba’s shares up to November 17, said Malie, with the final payout being made on December 15.
All employees below managerial level will stand to benefit an equal amount on a pro-rata basis calculated according to the total period over which they had been employed during the life of the first phase of the scheme.
Malie said that the scheme will pay out a total ZAR 2.5 billion or ZAR 500 000 for an employee who has been employed by Sishen for the full five year period.
More than 5 800 employees stand to benefit from the scheme.
Kumba Iron Ore announced that its shareholders had approved the general terms and conditions necessary to implement phase one of its broad based employee share participation scheme known as Envision.
The offering is seen as the most generous in the history of SA mining with employees from the lowest skill levels expecting to take home what may amount to R500 000 for five years of service.
This is in addition to the basic salaries earned by employees and an average of ZAR 55 000 in dividends thus far payed out by the scheme to individual participants.
According to Vusani Malie company secretary, employees will be paid out the capital appreciation linked to Envision’s 3% holding of Sishen Iron Ore Company, Kumba’s major subsidiary, accumulated over the five years since the scheme was implemented
The actual value of the payout will be calculated based on the five day volume weighted average price of Kumba’s shares up to November 17, said Malie, with the final payout being made on December 15.
All employees below managerial level will stand to benefit an equal amount on a pro-rata basis calculated according to the total period over which they had been employed during the life of the first phase of the scheme.
Malie said that the scheme will pay out a total ZAR 2.5 billion or ZAR 500 000 for an employee who has been employed by Sishen for the full five year period.
More than 5 800 employees stand to benefit from the scheme.
Thursday, October 27, 2011
Reliance Steel's Q3 profit up, but sees Q4 lower
Thu Oct 27, 2011
* Q3 profit $1.13/shr vs year-ago 65 cents/shr
* Sees Q4 EPS 70-80 cents v analyst view of 88 cents
Oct 27 (Reuters) - Metals processor Reliance Steel & Aluminum Co's third-quarter profit rose on strong demand, but it said the fourth quarter will be lower than expected because of volatile metal prices and lower sales.
Net earnings were $84.9 million, or $1.13 per share, compared with $48.7 million, or 65 cents per share, in the same quarter of 2010, the Los Angeles-based company said on Thursday.
Reliance Steel, which buys metal from manufacturers and processes it for specific industry needs, said sales rose 29 percent to $2.14 billion.
Looking ahead, the company said it estimates earnings for the fourth quarter will be in the range of 70 cents to 80 cents per share. Analysts currently expect 88 cents per share, according to Thomson Reuters I/B/E/S.
(sourced Reuters)
* Q3 profit $1.13/shr vs year-ago 65 cents/shr
* Sees Q4 EPS 70-80 cents v analyst view of 88 cents
Oct 27 (Reuters) - Metals processor Reliance Steel & Aluminum Co's third-quarter profit rose on strong demand, but it said the fourth quarter will be lower than expected because of volatile metal prices and lower sales.
Net earnings were $84.9 million, or $1.13 per share, compared with $48.7 million, or 65 cents per share, in the same quarter of 2010, the Los Angeles-based company said on Thursday.
Reliance Steel, which buys metal from manufacturers and processes it for specific industry needs, said sales rose 29 percent to $2.14 billion.
Looking ahead, the company said it estimates earnings for the fourth quarter will be in the range of 70 cents to 80 cents per share. Analysts currently expect 88 cents per share, according to Thomson Reuters I/B/E/S.
(sourced Reuters)
Tuesday, October 25, 2011
Macarthur Coal directors to appoint Peabody-Arcelor nominees
Tue, Oct25, 2011
THE directors of Australian coal miner Macarthur Coal will stand down tomorrow and appoint nominees of the joint venture between Peabody Energy and ArcelorMittal, which took control of the miner yesterday, the company said.
Macarthur chairman Keith DeLacy said the takeover, which values Macarthur at $4.9 billion, was a "testament to Macarthur's extraordinary growth over the last decade".
The takeover joint venture, PEAMCoal, announced late yesterday that it had acquired 59.86 per cent of Macarthur shares, with a further 2.51 per cent in an acceptance facility, giving the company 62.37 per cent of shares.
US giant Peabody Energy yesterday completed its 19-month battle for the Queensland company.
The takeover was finalised as reports emerged last night of a possible bid for another Queensland coal producer, New Hope, Sarah-Jane Tasker reported yesterday.
The Peabody-ArcelorMittal $16-a-share bid was launched on July 11.
The US giant, which already operates eight projects in Queensland and NSW, had made four unsuccessful offers early last year.
It offered $13 a share in March 2010, before raising the bid to $14 a week later and $16 on April 15.
On May 10, the company reduced its offer to $15 a share following the controversy over Kevin Rudd's failed resource super-profits tax.
But Peabody did not give up and in July this year it gained the support of Macarthur's major shareholder ArcelorMittal, which had a 16 per cent stake, to resurrect its move on the miner, the day after the Gillard government announced the carbon tax.
The two parties had originally offered $15.50 a share, but the target's board secured the $16 price to win its support.
PeamCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, then announced on Friday that it would increase the offer price to $16.25 a share if it acquired at least 90 per cent of the miner by November 11.
(sourced The Autralian)
THE directors of Australian coal miner Macarthur Coal will stand down tomorrow and appoint nominees of the joint venture between Peabody Energy and ArcelorMittal, which took control of the miner yesterday, the company said.
Macarthur chairman Keith DeLacy said the takeover, which values Macarthur at $4.9 billion, was a "testament to Macarthur's extraordinary growth over the last decade".
The takeover joint venture, PEAMCoal, announced late yesterday that it had acquired 59.86 per cent of Macarthur shares, with a further 2.51 per cent in an acceptance facility, giving the company 62.37 per cent of shares.
US giant Peabody Energy yesterday completed its 19-month battle for the Queensland company.
The takeover was finalised as reports emerged last night of a possible bid for another Queensland coal producer, New Hope, Sarah-Jane Tasker reported yesterday.
The Peabody-ArcelorMittal $16-a-share bid was launched on July 11.
The US giant, which already operates eight projects in Queensland and NSW, had made four unsuccessful offers early last year.
It offered $13 a share in March 2010, before raising the bid to $14 a week later and $16 on April 15.
On May 10, the company reduced its offer to $15 a share following the controversy over Kevin Rudd's failed resource super-profits tax.
But Peabody did not give up and in July this year it gained the support of Macarthur's major shareholder ArcelorMittal, which had a 16 per cent stake, to resurrect its move on the miner, the day after the Gillard government announced the carbon tax.
The two parties had originally offered $15.50 a share, but the target's board secured the $16 price to win its support.
PeamCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, then announced on Friday that it would increase the offer price to $16.25 a share if it acquired at least 90 per cent of the miner by November 11.
(sourced The Autralian)
Thursday, October 20, 2011
Peabody and ArcelorMittal extend offer for Macarthur Coal to November 11
Thursday, 20 Oct 2011
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover offer for Australia's Macarthur Coal until November 11th 2011.
The bid had been due to expire on Oct 28.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
(Sourced from Reuters)
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover offer for Australia's Macarthur Coal until November 11th 2011.
The bid had been due to expire on Oct 28.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
(Sourced from Reuters)
Saturday, October 15, 2011
Coal miner Walter's shares rise on takeover talk
Sat, Oct15, 2011
* Stock rises for second consecutive day
* Two newspaper reports say Walter Energy is target
(Reuters) - Shares of Walter Energy rose for a second day on Friday on reports that the U.S. coal mining company is the target of a takeover.
The newspaper, The Australian, reported that BHP Billiton , the world's largest mining company, is considering a $6 billion bid for the company. It cited no sources.
On Thursday, a British newspaper, The Independent, said BHP and Anglo American were interested in acquiring Walter, which has large reserves of steel-making metallurgical coal. That report said Anglo had poured cold water on such talk when it first came up in September.
BHP declined to comment. The company has flagged that it would chase acquisitions in commodities where it is not one of the leading players, after it was forced to scrap three big takeovers between between 2008 and 2010 on competition and political concerns.
As one of the world's biggest coal producers, it would be likely to run into competition hurdles if it bid for Walter Energy.
UBS analyst Glyn Lawcock played down the likelihood that BHP would be interested in Walter Energy as BHP has the ability to double coking coal production from its Australian operations and is also focusing on Indonesia.
"U.S. coal producers are generally higher cost and lower margin than Australian assets within BHP current portfolio. I'm not sure why BHP would want to do it," he said.
A spokesman for Alabama-based Walter said the company would not comment on speculation
The company's shares rose 12 percent on Thursday and jumped 6 percent on Friday morning before easing to close up 2.8 percent at $77.36.
Analyst Lucas Pipes, of Brean Murray Carret & Co, said the price rise was clearly linked to the market talk that Walter was a target.
He said U.S. coal producer Peabody Energy and European steelmaker ArcelorMittal had just received final approval to go ahead with their joint acquisition of Australian miner Macarthur Coal .
"That indicates there's still a lot of demand for met coal reserves and Walter falls into that category," Pipes said.
Other U.S. coal stocks rose on Friday on macro-economic issues, analysts said. Alpha Natural Resources ended up 4.8 percent to $21.65, Arch Coal finished 4.4 percent higher at $17.50 and Peabody Energy rose 3.2 percent to $39.46. The Dow Jones coal index closed 4.4 percent higher.
* Stock rises for second consecutive day
* Two newspaper reports say Walter Energy is target
(Reuters) - Shares of Walter Energy rose for a second day on Friday on reports that the U.S. coal mining company is the target of a takeover.
The newspaper, The Australian, reported that BHP Billiton , the world's largest mining company, is considering a $6 billion bid for the company. It cited no sources.
On Thursday, a British newspaper, The Independent, said BHP and Anglo American were interested in acquiring Walter, which has large reserves of steel-making metallurgical coal. That report said Anglo had poured cold water on such talk when it first came up in September.
BHP declined to comment. The company has flagged that it would chase acquisitions in commodities where it is not one of the leading players, after it was forced to scrap three big takeovers between between 2008 and 2010 on competition and political concerns.
As one of the world's biggest coal producers, it would be likely to run into competition hurdles if it bid for Walter Energy.
UBS analyst Glyn Lawcock played down the likelihood that BHP would be interested in Walter Energy as BHP has the ability to double coking coal production from its Australian operations and is also focusing on Indonesia.
"U.S. coal producers are generally higher cost and lower margin than Australian assets within BHP current portfolio. I'm not sure why BHP would want to do it," he said.
A spokesman for Alabama-based Walter said the company would not comment on speculation
The company's shares rose 12 percent on Thursday and jumped 6 percent on Friday morning before easing to close up 2.8 percent at $77.36.
Analyst Lucas Pipes, of Brean Murray Carret & Co, said the price rise was clearly linked to the market talk that Walter was a target.
He said U.S. coal producer Peabody Energy and European steelmaker ArcelorMittal had just received final approval to go ahead with their joint acquisition of Australian miner Macarthur Coal .
"That indicates there's still a lot of demand for met coal reserves and Walter falls into that category," Pipes said.
Other U.S. coal stocks rose on Friday on macro-economic issues, analysts said. Alpha Natural Resources ended up 4.8 percent to $21.65, Arch Coal finished 4.4 percent higher at $17.50 and Peabody Energy rose 3.2 percent to $39.46. The Dow Jones coal index closed 4.4 percent higher.
Thursday, October 6, 2011
Deadline extended on Mac Coal offer
October 07, 2011 12:00AM
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
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Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
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Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
Peabody ArcelorMittal extends offer for Macarthur Coal to Oct 28
Thursday, 06 Oct 2011
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover bid for Australia's Macarthur Coal until October 28th 2011.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and ArcelorMittal after failing to find a rival bidder.
The bid had been due to expire on October 14th 2011
(sourced from Reuters)
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover bid for Australia's Macarthur Coal until October 28th 2011.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and ArcelorMittal after failing to find a rival bidder.
The bid had been due to expire on October 14th 2011
(sourced from Reuters)
Friday, September 30, 2011
Mining bil cleared, firms to share 26% profits with locals - NDTV
Friday, 30 September 11
NDTV reported that, The Union Cabinet cleared the draft mining bill aimed at regulating mining activities Friday. The bill proposes a profit-sharing system and bidding of mining rights. It will mandate coal companies to provide 26 per cent of post-tax profit for the welfare of affected people, a move intended to benefit mostly tribals.
Niraj Shah, Senior VP (Equity Research) at Fortune Financial Services (India) Ltd said, "The biggest negative will be on Coal India... 26 per cent profits would be transferred and will be calculated on previous years' profit. So, the EPS would be impacted."
Coal India slumped 3 per cent post the decision and was the top loser on the 30-stock Sensex.
Bhavesh Chauhan of Angel Broking said the biggest impact will be on Coal India followed by Hindustan Zinc. "For Coal India, there is a cushion of passing prices to customers because it sells coal at a subsidy," Mr Chauhan added.
Companies that have captive coal mines will also be affected, Mr Shah said. "Profit will be calculated on the basis of mine head costs and the transfer pricing, so power and steel companies will be impacted," Mr Shah added.
The Mines & Minerals (Regulation and Development) Bill, 2011, which seeks to replace a 1957 act, also provides for setting up of National Mining Regulatory Authority and Tribunal and formation of District Mineral Foundations in 60 mineral-rich districts across the country. The states will also be advised to set up authorities and tribunals on these lines.
The Bill, which advocates "sustainable and scientific" mining, also suggests non-coal miners like bauxite and iron ore firms to share an amount equal to that of royalty with local residents instead of just sharing profits.
A 10-member ministerial panel set up in June last year, has finalised the methodology ensuring that people in mineral-rich districts of Andhra Pradesh, Orissa, Chhattisgarh, Goa, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and West Bengal get monetary benefits from mining.
If the bill is passed, an estimated amount of Rs. 10,000 crore (approximately US$ 2.042 billion) will be generated per year from miners and an average amount of Rs. 180 to 200 crore (approximately US$ 36,754,535 to 40,838,239) will be distributed among District Mining Foundations of 60 mineral rich districts that include 25 districts affected by Left Wing Extremism.
Mr Shah said money will be transferred to an escrow account that would be used for the benefit of the tribals.
(sourced NDTV)
NDTV reported that, The Union Cabinet cleared the draft mining bill aimed at regulating mining activities Friday. The bill proposes a profit-sharing system and bidding of mining rights. It will mandate coal companies to provide 26 per cent of post-tax profit for the welfare of affected people, a move intended to benefit mostly tribals.
Niraj Shah, Senior VP (Equity Research) at Fortune Financial Services (India) Ltd said, "The biggest negative will be on Coal India... 26 per cent profits would be transferred and will be calculated on previous years' profit. So, the EPS would be impacted."
Coal India slumped 3 per cent post the decision and was the top loser on the 30-stock Sensex.
Bhavesh Chauhan of Angel Broking said the biggest impact will be on Coal India followed by Hindustan Zinc. "For Coal India, there is a cushion of passing prices to customers because it sells coal at a subsidy," Mr Chauhan added.
Companies that have captive coal mines will also be affected, Mr Shah said. "Profit will be calculated on the basis of mine head costs and the transfer pricing, so power and steel companies will be impacted," Mr Shah added.
The Mines & Minerals (Regulation and Development) Bill, 2011, which seeks to replace a 1957 act, also provides for setting up of National Mining Regulatory Authority and Tribunal and formation of District Mineral Foundations in 60 mineral-rich districts across the country. The states will also be advised to set up authorities and tribunals on these lines.
The Bill, which advocates "sustainable and scientific" mining, also suggests non-coal miners like bauxite and iron ore firms to share an amount equal to that of royalty with local residents instead of just sharing profits.
A 10-member ministerial panel set up in June last year, has finalised the methodology ensuring that people in mineral-rich districts of Andhra Pradesh, Orissa, Chhattisgarh, Goa, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and West Bengal get monetary benefits from mining.
If the bill is passed, an estimated amount of Rs. 10,000 crore (approximately US$ 2.042 billion) will be generated per year from miners and an average amount of Rs. 180 to 200 crore (approximately US$ 36,754,535 to 40,838,239) will be distributed among District Mining Foundations of 60 mineral rich districts that include 25 districts affected by Left Wing Extremism.
Mr Shah said money will be transferred to an escrow account that would be used for the benefit of the tribals.
(sourced NDTV)
Monday, September 19, 2011
Peabody extends offer for Australia's Macarthur to Oct. 14
Sep19, 2011
SYDNEY, Sept 19 (Reuters) - Peabody Energy and ArcelorMittal have extended their $5.2 billion takeover bid for Australia's Macarthur Coal until Oct. 14, the companies said on Monday.
Macarthur last month accepted a sweetened A$16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
The bid had been due to expire on Sept. 27.
SYDNEY, Sept 19 (Reuters) - Peabody Energy and ArcelorMittal have extended their $5.2 billion takeover bid for Australia's Macarthur Coal until Oct. 14, the companies said on Monday.
Macarthur last month accepted a sweetened A$16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
The bid had been due to expire on Sept. 27.
Sunday, September 11, 2011
Zimbabwe may give mines more time on ownership plans
Sept11,2011
* Zimplats accounts for 10 percent of Implats' output
* Implats shares up two percent
HARARE (Reuters) - Zimbabwe may give foreign miners more time to submit plans to transfer majority stakes to local black investors, the state-run Herald newspaper said on Friday.
Firms such Zimplats , the local unit of South Africa's Impala Platinum have asked for an extension of the deadline to submit empowerment plans, the paper said.
"Our teams are now working with some mining companies that have asked for more time to work on their new proposals and we will keep the public updated on the developments," Empowerment Minister Saviour Kasukuwere told the Herald.
The paper said Zimplats was working on a proposal to submit by the end of November, two months past the original deadline to transfer majority stakes.
"It appears that the timeframe that Zimplats was given to amend its proposal was short and the company has now requested for about two months to work on another proposal," said the paper, which is widely seen as an official government mouthpiece.
"A new proposal would be submitted to government before the end of November. The new plan will have an element of the community share ownership trust," Zimplats deputy chairman Much Masunda was quoted as saying.
Implats' shares fell more than three percent on Thursday on reports the government was moving to revoke Zimplats' licence. The shares recouped about two percent on Friday morning, outpacing a 0.25 percent rise on the blue-chip top 40 index .
Zimplats' accounts for about 10 percent of Implats' annual group output of close to 1.8 million ounces of platinum.
(sourced Thomson Reuters)
* Zimplats accounts for 10 percent of Implats' output
* Implats shares up two percent
HARARE (Reuters) - Zimbabwe may give foreign miners more time to submit plans to transfer majority stakes to local black investors, the state-run Herald newspaper said on Friday.
Firms such Zimplats , the local unit of South Africa's Impala Platinum have asked for an extension of the deadline to submit empowerment plans, the paper said.
"Our teams are now working with some mining companies that have asked for more time to work on their new proposals and we will keep the public updated on the developments," Empowerment Minister Saviour Kasukuwere told the Herald.
The paper said Zimplats was working on a proposal to submit by the end of November, two months past the original deadline to transfer majority stakes.
"It appears that the timeframe that Zimplats was given to amend its proposal was short and the company has now requested for about two months to work on another proposal," said the paper, which is widely seen as an official government mouthpiece.
"A new proposal would be submitted to government before the end of November. The new plan will have an element of the community share ownership trust," Zimplats deputy chairman Much Masunda was quoted as saying.
Implats' shares fell more than three percent on Thursday on reports the government was moving to revoke Zimplats' licence. The shares recouped about two percent on Friday morning, outpacing a 0.25 percent rise on the blue-chip top 40 index .
Zimplats' accounts for about 10 percent of Implats' annual group output of close to 1.8 million ounces of platinum.
(sourced Thomson Reuters)
Optimum says possible offer to be at least 38 rand/shr
Sep11, 2011
* Proposed price raised from initial offer of 34 rand/shr
* Change follows Glencore purchase of more shares in Optimum
* Alternative buyer withdraws interest in company
JOHANNESBURG, Sept 9 (Reuters) - Optimum Coal said on Friday that should an offer be made for the company by a consortium including trader Glencore and a vehicle of politician turned businessman Cyril Ramaphosa, the price would not be lower than 38 rand per share.
A consortium including a Glencore subsidiary, Piruto BV, and Ramaphosa's Lexshell 849 confirmed on Sept. 1 that it was interested in buying a controlling stake in South Africa's sixth-biggest coal miner, deemed attractive due to its reserves and access to the Richards Bay Coal Terminal (RBCT).
Optimum said the change came after a member of the consortium bought additional shares in the company.
Glencore said on Thursday it had raised its stake in the takeover target to 25.8 percent after it bought about 2.5 million shares at a price of 37.99 rand a share. The price is more than the 34 rand per share the consortium had so far publicly offered.
"The board has been informed by the consortium that if the proposed offer is made within a period of 6 months from 6 September 2011, the offer consideration will not be lower than 38.00 rand per Optimum share," the company said in a statement.
Optimum also said an alternative party, which was mentioned in an announcement earlier this month, had withdrawn its interest in acquiring a controlling stake in the coal producer.
The 38 rand offer would value the company at 9.57 billion rand ($1.34 billion).
Optimum, a mid-size producer with large export capacity at Richards Bay Coal Terminal and reserves, attracted keen buying interest from local and international companies since BHP Billiton originally put the mine up for sale.
South African coal is a key source of supply to both the European and Asian markets, particularly India - South Africa ships around 30 percent of its coal to India and increasingly, to China.
The acquisition would give Glencore access to two operating assets, the Optimum Collieries and Koornfontein Mines, as well as 8 million tons of coal export entitlements from RBCT.
Shares in Optimum, up 42.4 percent so far this year, were flat at 37.50 rand by 1256 GMT, compared with a 0.59 percent fall in Johannesburg's All-Share index .
(sourced Reuters)
* Proposed price raised from initial offer of 34 rand/shr
* Change follows Glencore purchase of more shares in Optimum
* Alternative buyer withdraws interest in company
JOHANNESBURG, Sept 9 (Reuters) - Optimum Coal said on Friday that should an offer be made for the company by a consortium including trader Glencore and a vehicle of politician turned businessman Cyril Ramaphosa, the price would not be lower than 38 rand per share.
A consortium including a Glencore subsidiary, Piruto BV, and Ramaphosa's Lexshell 849 confirmed on Sept. 1 that it was interested in buying a controlling stake in South Africa's sixth-biggest coal miner, deemed attractive due to its reserves and access to the Richards Bay Coal Terminal (RBCT).
Optimum said the change came after a member of the consortium bought additional shares in the company.
Glencore said on Thursday it had raised its stake in the takeover target to 25.8 percent after it bought about 2.5 million shares at a price of 37.99 rand a share. The price is more than the 34 rand per share the consortium had so far publicly offered.
"The board has been informed by the consortium that if the proposed offer is made within a period of 6 months from 6 September 2011, the offer consideration will not be lower than 38.00 rand per Optimum share," the company said in a statement.
Optimum also said an alternative party, which was mentioned in an announcement earlier this month, had withdrawn its interest in acquiring a controlling stake in the coal producer.
The 38 rand offer would value the company at 9.57 billion rand ($1.34 billion).
Optimum, a mid-size producer with large export capacity at Richards Bay Coal Terminal and reserves, attracted keen buying interest from local and international companies since BHP Billiton originally put the mine up for sale.
South African coal is a key source of supply to both the European and Asian markets, particularly India - South Africa ships around 30 percent of its coal to India and increasingly, to China.
The acquisition would give Glencore access to two operating assets, the Optimum Collieries and Koornfontein Mines, as well as 8 million tons of coal export entitlements from RBCT.
Shares in Optimum, up 42.4 percent so far this year, were flat at 37.50 rand by 1256 GMT, compared with a 0.59 percent fall in Johannesburg's All-Share index .
(sourced Reuters)
Guinea adopts new mining code boosting state share
Sep11, 2011
By Saliou Samb
CONAKRY (Reuters) - Guinea's parliament adopted a new mining code that more than doubles the share the West African state can take in mining projects to 35 percent and toughens procedures for acquiring development permits, the government said on Saturday.
The changes, detailed in a February draft of the code published by Reuters in April, are aimed at boosting the country's share of its vast minerals wealth while providing clarity on the country's laws to investors.
But mining companies lobbied hard against the changes arguing they would undercut their profitability and lead to reduced investment.
"The National Transitional Council (Guinea's interim parliament) made these changes in the interests of the country," Mines Minister Mohamed Lamine Fofana said in a radio broadcast on Saturday. "The new mining code will allow future investors in Guinea to work in transparency."
An NTC official said the code had been adopted unanimously by lawmakers on Friday.
Guinea is the world's top exporter of the aluminum ore bauxite and holds some of the world's biggest unexploited reserves of iron ore that have drawn billions of dollars in planned investment from miner Rio Tinto and Vale.
The West African country held its first free elections since independence in late 2010, ending nearly two years of junta rule that were punctuated by a stadium massacre and widespread reports of corruption.
The new code would give the Guinean state a free 15 percent of mining projects along with the option to purchase an additional 20 percent, bringing total potential share in projects to 35 percent.
That more than doubles the 15 percent share stipulated by the old mining code written in the 1990s, and has drawn protests from mining companies that argue it will cut into their revenues without reducing capital outlay.
The code also toughens up procedures for companies seeking to get a mining permit, requiring them to complete a feasibility study and environmental and social impact studies beforehand.
sourced Reuters
By Saliou Samb
CONAKRY (Reuters) - Guinea's parliament adopted a new mining code that more than doubles the share the West African state can take in mining projects to 35 percent and toughens procedures for acquiring development permits, the government said on Saturday.
The changes, detailed in a February draft of the code published by Reuters in April, are aimed at boosting the country's share of its vast minerals wealth while providing clarity on the country's laws to investors.
But mining companies lobbied hard against the changes arguing they would undercut their profitability and lead to reduced investment.
"The National Transitional Council (Guinea's interim parliament) made these changes in the interests of the country," Mines Minister Mohamed Lamine Fofana said in a radio broadcast on Saturday. "The new mining code will allow future investors in Guinea to work in transparency."
An NTC official said the code had been adopted unanimously by lawmakers on Friday.
Guinea is the world's top exporter of the aluminum ore bauxite and holds some of the world's biggest unexploited reserves of iron ore that have drawn billions of dollars in planned investment from miner Rio Tinto and Vale.
The West African country held its first free elections since independence in late 2010, ending nearly two years of junta rule that were punctuated by a stadium massacre and widespread reports of corruption.
The new code would give the Guinean state a free 15 percent of mining projects along with the option to purchase an additional 20 percent, bringing total potential share in projects to 35 percent.
That more than doubles the 15 percent share stipulated by the old mining code written in the 1990s, and has drawn protests from mining companies that argue it will cut into their revenues without reducing capital outlay.
The code also toughens up procedures for companies seeking to get a mining permit, requiring them to complete a feasibility study and environmental and social impact studies beforehand.
sourced Reuters
Wednesday, September 7, 2011
S.Africa's miners may strike against Xstrata
Sep7, 2011
JOHANNESBURG (Reuters) - South Africa's National Union of Mineworkers (NUM) said on Tuesday it had referred its dispute with coal producer Xstrata over an employee share ownership programme to arbitration and may strike if the talks fail.
"The NUM and Solidarity (trade union) have agreed to take the matter to (arbitration), paving the way for a possible massive strike action against the company," Eddie Majadibodu, NUM 's Chief Negotiator at Xstrata, said in a statement.
The unions are opposing the company's stand that employees should benefit from the share ownership programme according to their grades.
(sourced Thomson Reuters)
JOHANNESBURG (Reuters) - South Africa's National Union of Mineworkers (NUM) said on Tuesday it had referred its dispute with coal producer Xstrata over an employee share ownership programme to arbitration and may strike if the talks fail.
"The NUM and Solidarity (trade union) have agreed to take the matter to (arbitration), paving the way for a possible massive strike action against the company," Eddie Majadibodu, NUM 's Chief Negotiator at Xstrata, said in a statement.
The unions are opposing the company's stand that employees should benefit from the share ownership programme according to their grades.
(sourced Thomson Reuters)
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