FAR moves closer to Senegal ambitions

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 11-Dec-19

FAR Limited has yet to confirm details of a capital raising, with its shares placed in a trading halt on 10 December pending an announcement. The equity raising is believed to include a $146m share placement and a $30m share purchase plan. The capital raising and a new debt facility will provide FAR with the funding needed to proceed with the Sangomar oil project in Senegal, in which it has a 15 per cent stake. The project is initially slated to produce about 230,000 million barrels of oil, commencing in 2023.

CORPORATES
FAR LIMITED – ASX FAR, WOODSIDE PETROLEUM LIMITED – ASX WPL, CAIRN ENERGY PLC

Rio Tinto’s hold on Oyu Tolgoi deal firms with Mongolian court win

Original article by Peter Ker
The Australian Financial Review – Page: 21 : 9-Dec-19

Rio Tinto and the Mongolian government entered into an agreement in 2015 regarding a $US5.3 billion expansion of the Oyu Tolgoi mine. The Mongolian First Administrative Court upheld a claim in November that proper parliamentary process may not have been followed when striking the agreement. However, a statement issued on the Court’s official website on 5 December indicated that the ruling is not likely to impact on the 2015 agreement.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Woodside moves forward on $6b Senegal oil project

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 4-Dec-19

The partners in the Sangomar joint venture have lodged a development plan for the offshore oil project with the Senegal government. The plan was submitted shortly before their licence was due to expire on 4 December. Woodside Petroleum and its partners in the $6bn project propose to undertake a phased development of the oil field, with production slated to commence in 2023. The project has been marred by a dispute between Woodside and junior partner FAR Limited over the former’s acquisition of ConocoPhillips’ stake.

CORPORATES
WOODSIDE PARK STUD PTY LTD, FAR LIMITED – ASX FAR, CONOCOPHILLIPS, PETROSEN

Vale pact could deliver more deals for OZ

Original article by Peter Ker
The Australian Financial Review – Page: 22 : 29-Nov-19

OZ Minerals has exercised an option to acquire the Pantera copper exploration project in Brazil’s Carajas region from Vale. OZ has also acquired an option to buy another two copper projects from Vale, which will in turn transport and market OZ’s copper concentrate in the region. OZ MD Andrew Cole has flagged the possibility of expanding the partnership with Vale. Meanwhile, OZ has advised that construction work at the Pedra Branca copper and gold project in the Carajas region will commence in December.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLDCORP CORPORATION

Farmer revolt over China Mengniu’s Lion Dairy bid

Original article by Sue Mitchell, John Kehoe
The Australian Financial Review – Page: 1 & 16 : 26-Nov-19

Some federal politicians have expressed concern about China Mengniu Dairy Company’s proposed acquisition of milk processor Lion Dairy & Drinks. Labor senator Kim Carr says the $600m deal should be subject to a number of conditions to ensure that jobs and processing facilities in regional areas are protected. Nationals MP Barnaby Joyce is concerned about China’s "creeping acquisition" of dairy-related assets in Australia, while independent MP Andrew Wilkie says ownership of Australia’s leading brands is becoming increasingly concentrated. Farmers say the deal should be conditional on a floor price for the farm gate price of milk.

CORPORATES
LION-DAIRY AND DRINKS PTY LTD, CHINA MENGNIU DAIRY COMPANY LIMITED, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, KIRIN HOLDINGS COMPANY LIMITED, DAIRY CONNECT LIMITED, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, SAPUTO INCORPORATED

Degrading ore body adds to Citic’s woes

Original article by Nick Evans
The Australian – Page: 19 : 25-Nov-19

China-based Citic has declined to comment on the likely cost of proposed changes to the processing plant at its Sino Iron project in the Pilbara. A decline in the quality of the project’s iron ore has prompted Citic to undertake a trial program which would entail using different equipment to process ore on one of the facility’s six production trains. The cost of the trial program is believed to be minimal, although overhauling the entire plant could prove to be expensive. Meanwhile, Citic is awaiting a court ruling in the latest round of its royalties dispute with businessman Clive Palmer.

CORPORATES
CITIC LIMITED, SINO IRON PTY LTD, HIGH COURT OF AUSTRALIA

Tax breaks to fast-track big projects

Original article by Simon Benson
The Australian – Page: 1 & 6 : 14-Nov-19

The federal government will provide a concessional tax rate of 15 per cent for foreign investments in qualifying infrastructure projects that are worth more than $500m. This will include ­energy, transport, water and communications projects. Meanwhile, Treasurer Josh Frydenberg will use the Sir John Downer Oration in Adelaide on 14 November to urge greater co-operation between the federal and state governments to address inefficiencies in the economy. He will also stress the need for responsible fiscal management.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Lendlease sells Adelaide mall stake for $670m

Original article by Nick Lenaghan
The Australian Financial Review – Page: Online : 8-Nov-19

Lendlease has sold its 50 per cent stake in Adelaide’s Westfield Marion to Singapore-listed SPH REIT for $670 million. Westfield Marion is one of the largest shopping centres in Australia and has the 13th highest turnover, while Scentre Group is the centre’s co-owner. SPH REIT is sponsored by media conglomerate Singapore Press Holdings, while the purchase was brokered by Colliers International and CBRE.

CORPORATES
LENDLEASE GROUP – ASX LLC, SPH REIT, SCENTRE GROUP – ASX SCG, SINGAPORE PRESS HOLDINGS LIMITED, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, CBRE PTY LTD

Sinosteel cautions Oakajee doubters

Original article by Peter Ker, Brad Thompson
The Australian Financial Review – Page: 18 : 22-Oct-19

Western Australia’s Premier Mark McGowan says he would welcome any move to proceed with the stalled Oakajee port and rail project, after Sinosteel’s recent deal to acquire Mitsubishi’s interest in it. However, Ports Minister Alannah MacTiernan ha expressed doubts regarding the $10bn project’s viability. Stuart Griffiths, the CEO of Sinosteel Midwest, says people should keep "an open mind" on the issue, adding that good quality iron ore will always be in demand.

CORPORATES
SINOSTEEL CORPORATION, SINOSTEEL MIDWEST CORPORATION LIMITED, MITSUBISHI CORPORATION, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, FORTESCUE METALS GROUP LIMITED – ASX FMG

China launches $10b push for Oakajee iron ore

Original article by Peter Ker
The Australian Financial Review – Page: 3 & 22 : 21-Oct-19

Sinosteel has acquired Mitsubishi’s interests in the long-stalled $9.7 billion Oakajee port and rail project in Western Australia. Sinosteel’s $2 billion Weld Range iron ore project was to be a customer of the Oakejee project, but cost blowouts saw proposed port tariffs increased, leading Sinosteel to conclude that Weld Range would not be viable, and it stopped work on Weld Range in June 2011. Sinosteel’s acquisition of Mitsubishi’s stake in the Oakajee project has sparked hopes that it could be revived, and that a new iron ore export province in WA can be created.

CORPORATES
SINOSTEEL CORPORATION, MITSUBISHI CORPORATION, FORTESCUE METALS GROUP LIMITED – ASX FMG