B08 Metal Ore Mining

BHP runs down clock on $64b Anglo deadline

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 21-May-24

The UK’s Takeovers Code requires BHP to make a formal and binding takeover offer for Anglo American by 22 May. However, there is now a high probability that BHP will abandon its proposed bid, given that the target has rejected BHP’s improved offer of 0.8132 of its share for every Anglo American share. Meanwhile, media reports in the UK have indicated that two major Anglo American shareholders are willing to accept a simpler offer from BHP that does not involve breaking up the company.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC

Lithium miners plead foreign entity case to US

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 21-May-24

Australian miners are seeking access to lucrative subsidies available under the US Infrastructure Investment and Jobs Act and the Inflation Reduction Act. However, critical minerals that are "subject to the control" of Russia, China, Iran and North Korea are not eligible for the subsidies, as the US considers those countries to be "foreign entities of concern". This has led to concern that two of Australia’s biggest lithium mines, Greenbushes and Mt Marion, will be ineligible for the subsidies as they are 26 per cent and 50 per cent owned by Chinese companies Tianqi and Ganfeng respectively. The other 50 per cent of Mt Marion is owned by Australia’s Mineral Resources, and Tim Picton from MinRes believes it would be "counter-intuitive" for product from Mt Marion to be viewed as subject to the control of a foreign entity of concern.

CORPORATES
TIANQI LITHIUM CORPORATION, GANFENG LITHIUM COMPANY LIMITED, MINERAL RESOURCES LIMITED – ASX MIN

Toronto tempts Aussie miners

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Original article by Glenda Korporaal
The Australian – Page: 15 : 20-May-24

About 21 Australian mining companies are currently listed on the Toronto Stock Exchange; however, the TSX’s Dean McPherson says this could quickly increase to around 30, as more companies in the local mining sector recognise the benefits of raising capital in North America. The TSX is the third-largest stock exchange in North America, with a total market capitalisation of $4.65 trillion and about 3,500 listed companies; in contrast, the Australian Stock Exchange boasts a total market capitalisation of $2.7 trillion and about 2,200 listed companies. Both bourses have traditionally had a heavy weighting towards the resources sector.

CORPORATES
TORONTO STOCK EXCHANGE, ASX LIMITED – ASX ASX

Inside Anglo chief’s rush to split company

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Original article by Peter Ker
The Australian Financial Review – Page: 36 & 37 : 20-May-24

Anglo American’s CEO Duncan Wanblad has downplayed suggestions that the restructuring proposal that he announced last week was in direct response to BHP’s takeover approach. He contends that Anglo American has merely brought forward a strategic plan that was already being prepared. However, some senior executives at Anglo American were surprised by Wanblad’s announcement of the restructuring. They include Daniel van der Westhuizen, who heads the group’s Australian arm; five coking coal mines in Queensland are among the assets that Anglo American had earmarked for sale, and Wanblad indicated that the company had already received bids for these mines.

CORPORATES
ANGLO AMERICAN PLC, ANGLO AMERICAN AUSTRALIA LIMITED

Toronto tempts Aussie miners

roymorgansocial Leave a comment

Original article by Glenda Korporaal
The Australian – Page: 15 : 20-May-24

About 21 Australian mining companies are currently listed on the Toronto Stock Exchange; however, the TSX’s Dean McPherson says this could quickly increase to around 30, as more companies in the local mining sector recognise the benefits of raising capital in North America. The TSX is the third-largest stock exchange in North America, with a total market capitalisation of $4.65 trillion and about 3,500 listed companies; in contrast, the Australian Stock Exchange boasts a total market capitalisation of $2.7 trillion and about 2,200 listed companies. Both bourses have traditionally had a heavy weighting towards the resources sector.

CORPORATES
TORONTO STOCK EXCHANGE, ASX LIMITED – ASX ASX

Inside Anglo chief’s rush to split company

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Original article by Peter Ker
The Australian Financial Review – Page: 36 & 37 : 20-May-24

Anglo American’s CEO Duncan Wanblad has downplayed suggestions that the restructuring proposal that he announced last week was in direct response to BHP’s takeover approach. He contends that Anglo American has merely brought forward a strategic plan that was already being prepared. However, some senior executives at Anglo American were surprised by Wanblad’s announcement of the restructuring. They include Daniel van der Westhuizen, who heads the group’s Australian arm; five coking coal mines in Queensland are among the assets that Anglo American had earmarked for sale, and Wanblad indicated that the company had already received bids for these mines.

CORPORATES
ANGLO AMERICAN PLC, ANGLO AMERICAN AUSTRALIA LIMITED

Miners hail $17.6b in tax credits – but BHP nickel still on death row

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Original article by Brad Thompson
The Australian Financial Review – Page: Online : 15-May-24

Australia’s critical minerals industry has welcomed the federal government’s decision to provide the sector with a 10 per cent production tax credit. However, the budget measure may not ensure the future of BHP’s nickel operations in Western Australia, given that the tax credit will not be availabe until 2027. The potential closure of BHP’s nickel mines, refinery and smelter would result in the loss of about 3,000 jobs; BHP has previously warned that tax credits may not be enough to save the Nickel West business, which is contending with a glut of low-cost nickel produced in Indonesia with Chinese backing.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST

Anglo unveils radical restructuring plan

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Original article by Paul Garvey
The Australian – Page: 25 & 26 : 15-May-24

Anglo American has announced a major restructuring of its global operations in the wake of a spurned takeover approach from BHP. Anglo American intends to focus primarily on its copper and iron ore assets, and CEO Duncan Wanblad says any potential suitors will have to pay an "enormous amount of money" to acquire the company after the two-year overhaul is completed. Amongst other things, Anglo American will sell its coking coal mines in Queensland, demerge its platinum assets and put the Woodsmith potash project in the UK on hold indefinitely.

CORPORATES
ANGLO AMERICAN PLC, BHP GROUP LIMITED – ASX BHP

Rio investigates third derailment of one of its driverless iron ore trains

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Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 14-May-24

Rio Tinto has notified rail safety authorities of an incident in which an autonomous iron ore train was derailed about 80km from Karratha early on Monday morning. It is believed to have occurred when the driverless train collided with a set of stationary wagons while it was enroute to port with a shipment of iron ore. Rio Tinto will also commence an internal investigation into the incident. Rio Tinto’s driverless trains have now been derailed three times in the last year. The company began operating autonomous trains in the Pilbara in 2019.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Anglo American rejects second, higher BHP takeover offer

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Original article by Peter Ker
The Australian Financial Review – Page: Online : 14-May-24

BHP CEO Mike Henry says it is disappointing that Anglo American’s board has rejected a revised takeover offer and has not been willing to enter into further discussions. The initial offer had comprised 0.7097 of its shares for every Anglo American share; however, BHP increased this to 0.8132 of its shares last week, valuing the target at $64.4bn. Henry adds that the two companies are a "strategic fit", and the combined group would have a leading portfolio of high-quality assets across a range of commodities.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC