Resources and mining companies making news include Whitehaven Coal receiving a non-binding privatisation proposal from billionaire Nathan Tinkler, Gloucester Coal receives approval from the Supreme Court of Victoria for the proposed merger with Yancoal Australia, BlueScope says it has no plans for anequity raising, AGL Energy and First Solar will start working on two solar power projects and Leighton Holdings finalises a new $425 million lease facility.
Tinkler’s Whitehaven proposal Whitehaven Coal Limited
(ASX:WHC) received a non-binding privatisation proposal from billionaire Nathan Tinkler. But, the company says the offer is highly conditional and too incomplete to be considered as it stands. Whitehaven says they’ll be ready should a less conditional and more complete proposal be offered. Whitehaven recently completed a $5.1 billion merger with Mr Tinkler’s Aston Resources.
Gloucester approval for YancoalGloucester Coal Limited
(ASX:GCL) has received approval from the Supreme Court of Victoria for the proposed merger with China's state-owned Yancoal Australia Limited. The Court’s orders are to be lodged with the Australian Securities and Investment Commission on June 27, at which time the merger will become legally effective and shares will be suspended. Under the deal Yancoal will control 78 per cent of the new entity, with Gloucester holding the remaining 22 per cent and its shareholders will receive a cash payment of $3.15.
Additionally, Gloucester says it will pay a special dividend of 47 cents cash per share, 3 cents higher than previously stated. The record date is June 22. The special dividend is expected to be fully franked.
BlueScope debt reduction on track BlueScope Steel Limited
(ASX:BSL) says its debt reduction initiatives are on track and has no plans for an equity raising. The steel maker announced restructuring plans after it booked a $530 million loss in the first half. The sale of its North-America based Metlspan business is expected to generate $117 million in proceeds and will be completed by the end of the month. Full-year working capital release is expected to be at the higher end of its previous $400 to $500 million estimate. BlueScope’s restructuring costs in the second half of its 2012 financial year will be at the lower end of the $120 to $140 million range.
AGL’s solar grantAGL Energy Limited
(ASX:AGK) and solar photovoltaic manufacturer First Solar will start working on two solar power projects in New South Wales. The projects in Broken Hill and Nyngan have received significant government backing. The Commonwealth Government will provide $130 million to implement the project and the NSW Government will contribute $65 million in funding. The project is valued at $450 million and scheduled for completion in 2015.
AGL’s Managing Director Michael Fraser said the projects “represent a tremendous opportunity for AGL and the broader solar industry to begin the roll-out of solar power as a meaningful source of generation supply in Australia”.
Leighton’s $425 million lease facilityLeighton Holdings Limited
(ASX:LEI) has finalised a new $425 million lease facility. Originally launched at $300 million, the facility was oversubscribed by 42 per cent. The facility has a 12 month availability period with a maximum lease term of five years. Leighton says the leasing facility was important in further strengthening the group's balance sheet.
Resources NewsThe resources sector is one of the largest providers of new jobs, hiring an extra 58,100 workers in the year to May. More than two-thirds of the new mining jobs were created in Queensland and Western Australia. Mining only provides around 2.5 per cent of all jobs, but the Australian Bureau of Statistics figures reveal the sector was one of the largest job creators in the year to May. Mining was the third largest source of new jobs in the economy after professional and scientific services which includes mining related professions like engineering and health care was second.
