Baosteel and Aurizon launch Aquila take-over bid
May 8, 2014 Category Automotive Metals & Minerals, Short news minerals
Baosteel Group Corp and Australian rail freight operator Aurizon Holdings have launched a bid for Aquila Resources in a deal that values the iron ore and coal miner at AUD1.4 billion. The bid could potentially open up a new iron ore export region in Australia for Asian steelmakers. Baosteel, which already owns 19.8% of Aquila, will hold 85% if the deal succeeds while Aurizon will own 15%. “This proposal represents an unprecedented opportunity to co-develop world-class rail and port infrastructure in Australia, utilizing Chinese and Australian capital, to deliver much needed Australian commodities to China,” Aurizon Chief Executive Lance Hockridge said. Aquila advised its shareholders to take no action now and will form an independent board sub-committee to assess the offer. Aquila is among smaller miners in Australia trying to break the hold of Rio Tinto and BHP Billiton on the country’s iron ore exports. It owns 50% in the West Pilbara Iron Ore Project. Through the take-over, Baosteel and Aurizon plan to develop western Pilbara’s iron ore project and Eagle Downs hard coking coal project in Queensland. The partners are expected to start producing iron ore at the West Pilbara project in 2017-18. The project has more than two billion tons of resources. As designed, it would produce 30 million tons a year in its first stage, dwarfed by Rio Tinto and BHP Billiton, which together are expected to be producing about 620 million tons a year by 2017. But more importantly for Asia’s steel producers, Baosteel and Aurizon plan to build a rail line and port at Anketell Point that would be open to other iron ore producers, unlike Rio Tinto’s rail and ports, providing an outlet for resources that have been stranded with no transport routes up to now. The port had been designed to handle up to 300 million tons a year.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world