The federal government's Bureau of Resources and Energy Economics (BREE) reports energy and mineral exports are on track to grow 15 per cent next year to a record $206 billion. Resources and mining companies dominating the headlines this past week include BlueScope seeking to sell shares not taken up from its recent capital raising, Whitehaven Coal and Aston Resources agree to a $5.1 billion merger, Paladin's Aurora Energy business will start drilling next year, Rio Tinto confirms an arbitrator upheld its claim against Ivanhoe Mines' poison pill and Origin Energy sets out to prove mining and agriculture can happily co-exist by producing a farm that is 'drought free'.
Resources NewsMining on track for recordThe federal government's Bureau of Resources and Energy Economics (BREE) says energy and mineral exports are on track to grow 15 per cent in 2012 to a record $206 billion.
''Despite the uncertainty surrounding the outlook for some European economies, Australia's export volumes for most commodities have remained strong in the second half of 2011, while prices for many commodities have remained at historically high levels," says BREE.
The organisation's December quarter 2011 commodities outlook forecasts export earnings growth will be supported by an 11 per cent increase in iron ore, a 13 per cent increase in metallurgical coal and a 45 per cent increase in gold.
Gold price tipped to riseDespite the price of gold taking a hit in the past week, two organisations have forecast the price to rise in 2012. BREE has forecast the average price of gold will be $US1850 an ounce in 2012 growing 17 per cent from 2011. ''Extended periods of financial market instability could increase investment demand for gold and, in turn, could place further upward pressure on the gold price,'' BREE says.
Goldman Sachs is even more bullish on gold, expecting gold will average a price of $US1940 an ounce next year.
BlueScope share saleBlueScope Steel Limited
(ASX:BSL) placed its shares in a trading halt, seeking to sell shares not taken up from its recent capital raising. The steel maker unveiled plans last month to raise $600 million through the issue of new shares to institutional and retail shareholders. Only 310 million of the 649 million shares it offered were taken up. The capital raising was launched to strengthen the company's balance sheet and repay debt after a year that has seen BlueScope's earnings hit by a strong Australian dollar, raw materials costs and lower steel prices and demand.
Whitehaven and Aston mergerAfter a week of talks, Whitehaven Coal Limited
(ASX:WHC) and Aston Resources
(ASX:AZT) have agreed to a $5.1 billion merger. Aston shareholders are to receive 1.89 Whitehaven shares for each Aston share, and Whitehaven shareholders will receive a special dividend of 50 cents per share prior to the merger transaction.
"The merged entity becomes one of Australia's leading independent coal producers with a high quality portfolio of producing mines, major development projects and attractive exploration assets", said Whitehaven chairman John Conde.
"This asset base, combined with the positive long term outlook for Australian export coal, places the merged entity in an excellent position to generate ongoing value for all shareholders," added Mr Conde.
The Tinkler Group owns about 32 per cent of Aston Resources, and has indicated it will vote in favour of the merger. Whitehaven's also proposed to buy another Tinkler-owned coal company, Boardwalk Resources, whose investors will receive 85.88 million Whitehaven shares for the deal.
Paladin wins in CanadaPaladin Energy Limited's
(ASX:PDN) Aurora Energy business will start drilling next year thanks to a local autonomous Inuit government lifting a moratorium on uranium development in Canada. The vote to lift the three year ban will allow Paladin's program to start mid-next year. Drilling is expected to start in the third quarter. The uranium producer paid $US1.90 a pound for Aurora's 137 million pounds of uranium oxide resources in February. It was a comparatively cheap price partly to do with the moratorium on uranium mining.
Rio defeats poison pillRio Tinto Limited's
(ASX:RIO) confirmed an arbitrator upheld its claim against Ivanhoe Mines' poison pill, which was designed to stop Rio Tinto from creeping above its 49 per cent stake. From January 19, 2012 Rio Tinto will no longer be subject to a standstill agreement with Ivanhoe. The global miner says it's not seeking full control of Ivanhoe, but may attempt to raise its stake to a majority position.
Origin to develop drought proof farmOrigin Energy Limited
(ASX:ORG) is planning a demonstration 'drought free' farm to prove mining and agriculture can happily co-exist. News Ltd reports the energy company's planned farm, across the Condamine River from its coal-seam gas facility in Queensland, will have a guaranteed water supply from the facility, in turn creating a "drought-proof" farm.
One of Origin's joint venture partners in the Australia Pacific liquefied natural gas (LNG) project, China Petrochemical Corporation (Sinopec), has boosted its stake in the $20 billion venture. Sinopec will acquire an extra 10 per cent interest in the project, taking its ownership to 25 per cent and 3.3 million tonnes of LNG per year through to 2035. The deal will reduce Origin's and fellow JV partner ConocoPhillips' stake down to 37.5 per cent each.
