Archive for the ‘WANTED TO BUY’ Category

Move over Alrosa says Rio Tinto. We want to drive growth in India’s diamond sector

Saturday, December 20th, 2014

Bunder diamond jewellery collection. (Image courtesy of Rio Tinto Diamonds)

Mining giant Rio Tinto (LON:RIO) hinted Thursday its 30-year partnership with the Indian diamond industry makes it the best fit to drive the sector’s growth in the country.

Speaking at the World Diamond Conference in Delhi, Rio Tinto Diamonds managing director Jean-Marc Lieberherr said the company’s presence in the local industry was a decades-long journey that covers “everything” — from diamond manufacturing technology, to market development initiatives and “the first diamond discovery in India in decades.”

His statement comes barely a week after the news of Russian President Vladimir Putin aiming to secure a long-sought deal with India that would significantly boost exports of state-owned diamond miner Alrosa.

The Russian miner is expected to sign today a dozen deals with Indian buyers to increase direct deliveries to Asia’s third-largest economy, as financial capital Mumbai aspires to expand as a trading hub.

Rio said it remains bullish about the opportunities India has to offer, even though its flagship diamond project in the country, Bunder (monkey in Hindi), has run into permit hurdles.

Environmentalists have been raising concerns over potential threats to a tiger corridor about 100 km from the deposit in the in Madhya Pradesh region. So Rio is now working on securing environment and forest clearances to get its final mining plan approved.

“Development of our Bunder diamond project in Madhya Pradesh is a natural continuation of the partnership model and would put India among the top 10 diamond producing countries in the world,” Lieberherr said.

The touted project, discovered in 2004, is expected to generate about 30,000 jobs and produce up to 3 million carats a year, Rio has said.

Once operational, Bunder will be one of the only four diamond mines globally that are likely to be operational over the next decade.

The company also said that its Argyle Diamonds mine in Australia will be delivering increased volumes from 2015, which will have a direct impact on the Indian manufacturing sector.

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Henry Sapiecha


Saturday, February 26th, 2011

BHP’s strategic success

from takeover failure

February 15, 2011

If there’s one thing the latest WikiLeaks missive reveals about BHP Billiton, it is that the company’s much derided takeover strategy hasn’t been the disaster that many large shareholders claim.

BHP supremo Marius Kloppers no doubt is smarting over the leaked cables from US consul general Michael Thurston back to his masters in Washington. They reveal the kind of candid comments one would expect in a meeting between a corporate heavyweight and a representative of the US government on sensitive issues regarding the world’s fastest-growing economy, China.

But the leaked cables also highlight just how successful BHP was in railroading the contentious tie-up between Rio Tinto and the Chinese government-owned Chinalco, a deal that would have been disastrous for Australia’s national interests and that would have seriously undermined BHP’s ability to operate in China.

BHP’s big institutional shareholders, particularly those in the UK, have made it clear that they have been underwhelmed by the vast millions of dollars spent on advisers and consultants since 2007 on three massive merger proposals that never eventuated. In recent months, they have called for a halt to the mega mergers and insisted the company return a large part of the cash being generated by the resources boom.

In particular, many questioned the wisdom of BHP’s much vaunted joint venture proposal with Rio Tinto’s West Australian iron ore operations. Why proceed down that path when it was clear European regulators raised objections about that very issue two years earlier when BHP launched its hostile takeover bid for Rio Tinto?

The answer is now clear. To stymie Chinalco, BHP needed to offer Rio Tinto an alternative. It needed to offer its great rival a compelling reason to dump the Chinese government, a legally binding, superior offer that Rio directors could not refuse.

At the time, Rio’s new chairman Jan du Plessis was looking for an exit strategy from the China deal. With commodity prices rebounding, the Chinalco deal – struck out of desperation by a debt-laden Rio – was looking even less attractive and Rio shareholders were in open revolt.

Kloppers handed him the perfect opportunity. And while much of the attention focused on the potential synergies of the iron ore merger, the real value rested in severing the link between the Chinese government and Rio Tinto, a link that would have delivered the world’s biggest consumer of iron ore control of the world’s primo deposits.

The value for BHP in successfully killing that deal? Immeasurable.

Sourced & published by Henry Sapiecha


Sunday, January 2nd, 2011
Indian Companies Looking for International Acquisitions and Activities
With rapid growth in their domestic market, Indian chemical firms are looking for international acquisitions and other activities that will provide access to cheaper feedstocks and new high-growth markets.Tata Chemicals recently acquired U.S.-based General Chemical Industrial Products for $1.01 billion (Euro 652 million), making it the second largest global Soda ash producer. With the acquisition, the company has established long-term fundamentals based on demand growth prospects, according to vice president R. Mukundan. Tata is also hoping to build a new plant or expand an existing facility in Kenya.

India-based Nirma also purchase a U.S.-based Soda ash producer – Searles Valley Minerals – the only producer of sodium borates, boric acid and sodium sulfate utilizing the more cost-effective method of solution mining.

Reliance Industries has been actively acquiring Polyester producers, including Hualon, now called Recron (Malaysia) and Trevira, located in Germany. The company has also signed a memorandum of agreement with compatriot firm GAIL to develop a gas-based cracker outside of India. The two companies plan to make a proposal to the Qatar government for a $1.3-billion petrochemical plant. Reliance may also invest in a cracker and polyolefins complex in Peru.

Sourced & published by Henry Sapiecha


Thursday, July 29th, 2010

Chinese likely to be circling

Aussie targets

KATE EMERY, The West Australian June 1, 2010, 7:21 am

Paladin Energy is a company likely to be on China's radar because its biggest assets are overseas. Pictured is the company's Langer Heinrich uranium project in Namibia.NO COPYRIGHT / Paladin Energy ©

A sinking Australian dollar, global equity jitters and a surge in Chinese foreign reserves have put Australian acquisitions back on China’s agenda, analysts say.

Paladin Energy, PanAust and Aquarius Platinum top the list of takeover targets, according to Citigroup analysts. They say miners with offshore assets will be sought after because those with local projects could be hurt by the resource super profits tax and or adverse Foreign Investment Review Board rulings.

“Just as the GFC gave China an opportunity to bid for mining assets with little competition, we expect the global risk reduction sell-off and collapse in the Australian dollar to once again provide an opportunity,” Citi analysts said in a note to clients.

The Citi report echoes industry speculation that the proposed tax could hand Chinese interests a greater slice of Australian resources as other sources of funding dry up.

Chinese foreign exchange reserves surged to $US2.4 trillion in March, up 25 per cent year-on-year. On Citi’s numbers, it is estimated about 70 per cent of that is in US dollars, with the balance mostly in euros and Japanese yen.

The Australian dollar has fallen more than 9 per cent from this year’s high of US93.51¢. It closed yesterday at US84.78¢, down from Friday’s close of US85.09¢.

Paladin, PanAust and Aquarius were named at Citi’s top targets because they all own overseas assets, have no major potential blocking shareholder and are mining commodities that China is expected to be seeking: uranium, copper and platinum respectively.
Sourced & published by Henry Sapiecha