Rio is the world’s second-largest miner.
Rio is the world’s second-largest miner.

Foreign Bidding War for Rio Tinto Australia Coal Mines

Foreign Bidding War for Rio Tinto Australia Coal Mines

A multi-billion dollar bidding war for most of Rio Tinto’s Australian coal mines has broken out between China-backed Yancoal and Glencore after the Swiss commodities giant made an unexpected offer.
Rio, the world’s second-largest miner, is exiting coal mining in Australia at a time of falling prices and market volatility, AFP reported.
The Anglo-Australian firm in January said it was selling Coal & Allied, to Yancoal Australia—which is majority controlled by China’s Yanzhou Coal, one of China’s largest mining groups by market capitalization—for $2.45 billion.
But Glencore, which already owns mines near the Coal & Allied assets in New South Wales state, has jumped into the fray, offering $100 million more, Rio Tinto said in a statement.
“The Rio Tinto board and management will give the proposal appropriate consideration and respond in due course,” the miner said Saturday.
The Yancoal deal permitted Rio to look at other offers if they were considered superior. Glencore said it would also buy Mitsubishi’s minority stakes in some of the mines for $920 million if the Rio deal went through.
Glencore said Friday the Rio purchase “would unlock large scale mining and operating synergies” and gave the miner until June 26 to accept its fully-funded proposal.
“Glencore’s combined portfolio of mines in the Hunter Valley would have production capacity of 81 million tons per annum of high energy coal that feeds increasing Asian demand for high efficiency, low emission coal,” a company statement added.
The Glencore proposal is subject to Australian regulatory approval. Yancoal has already been given the green light for its deal by Australia’s Foreign Investment Review Board.
Yancoal already operates several mines across the country, including in NSW, while Glencore operates 18 open cut and underground coal mines in Australia.
Glencore, which in 2016 had revenues of $177.4 billion, in May approached US agribusiness firm Bunge about a possible combination, a sign the firm had turned a corner after a two-year slump in commodity prices.
The downturn had prompted Glencore chief executive Ivan Glasenberg to scrap dividends, sell assets and trim debt.

Short URL : https://goo.gl/QdOwgM
  1. https://goo.gl/uyYxSc
  • https://goo.gl/bE39KL
  • https://goo.gl/CgS7qV
  • https://goo.gl/NWdC6T
  • https://goo.gl/5Gr5F0

You can also read ...

The 2017 “WannaCry” cyber attack demanded affected users wire ransom money via Bitcoin.
You don’t have to be a digital whizz kid to know that the wars...
A woman protests a planned coal-fired plant  in southern Thailand.
Southeast Asian governments are finding themselves caught...
Singapore to Hike GST for First  Time in Decade
Singapore is expected to raise goods and services tax for the...
Malaysia has shown willingness to move towards  a market-oriented mechanism.
Forty-three World Trade Organization members who participated...
South Africa Wants to Increase VAT Rates
With an economic downgrade to junk status, a slowly growing...
Fitch Upgrades Greece
Fitch Ratings raised Greece’s sovereign credit rating by one...
China’s Commerce Ministry says the proposed US measures are groundless.
China said proposed US tariffs on imported steel and aluminum...
62% of Japan Loan Rate  Below 1%
After two years of the Bank of Japan guiding key interest...

Add new comment

Read our comment policy before posting your viewpoints