The head of Rio Tinto’s iron ore division, Sam Walsh, says the miner is on track to increase its output, AGL receives clearance for its proposed acquisition of the Loy Yang power station, Sundance Resources revises the terms of its takeover agreement with Chinese based Hanlong Mining, Aurora Oil & Gas says it will continue with its takeover efforts for Eureka Energy and Sims expects a drop in full year earnings.
Rio on trackThe head of Rio Tinto Limited’s
(ASX:RIO) iron ore division, Sam Walsh, says the miner is on track to increase its output to over 350 million tonnes a year by early 2015, and estimates an increase to 450 million tonnes is on track for 2016. The announcement came as Mr Walsh rebuffed claims that increasing demand and rapidly industrialising nations could lead to the world’s iron ore supplies running out.
AGL gets Loy Yang go-aheadThe Australian Competition and Consumer Commission has advised it will not oppose AGL Energy Limited’s
(ASX:AGK) acquisition of the Loy Yang A power station in Victoria. AGL announced a $900 million capital raising to fund the acquisition of 67.5 per cent of Great Energy Alliance Corporation, owner of the Loy Yang A power station. Loy Yang A is the largest power station in Victoria, responsible for 30 per cent of the state’s electricity requirements.
Sundance’s takeover terms Sundance Resources Limited
(ASX:SDL) has revised the terms of its takeover agreement with Chinese based Hanlong Mining. The $1.7 billion deal has been changed to ensure completion in November. Hanlong has waived the requirement for ratification of Sundance’s Mbalam project by the Cameroon National Assembly. Hanlong must receive preliminary approval from China’s National Development and Reform Commission by June 30. There has been no change to Hanlong’s proposed $0.57 cash per share offer to acquire the iron ore miner. Sundance directors have recommended shareholders vote in favour of the offer.
Aurora’s Eureka takeover Aurora Oil & Gas Limited
(ASX:AUT) says it will continue with its takeover efforts for Eureka Energy Limited
(ASX:EKA) despite concerns over the terms of a $US15 million debt facility that Eureka has agreed with Macquarie Bank. Aurora is a 4.38 per cent shareholder of Eureka and has offered $0.45 per share in its takeover bid, valuing the company at about $107 million.
Sims earnings warningSims Metal Management Limited
(ASX:SGM) shares fell after announcing it expects a drop in full year earnings. Earnings for fiscal 2012, ending June 30 will be materially less than 85 per cent of the year before. The metal recycler cited continued global economic challenges as the reason for the deterioration. With the results for May and June still unknown, the company has advised that the result may be further impacted by negative global economic events and conditions.
Resources NewsCommitted investment in the resources sector hit a record $260.8 billion by April 30, up 34 per cent year on year. The report, produced by the Bureau of Resources and Energy Economics (BREE) showed investment in 98 projects, including 39 in energy. The Minister for Resources and Energy, Martin Ferguson said that energy made up for 76 per cent of committed capital expenditure. “The increase in committed capital expenditure is largely driven by investments in LNG projects,” said Mr Ferguson.
