Select Page
Glencore Buys Out Dan Gertler's Congo Cobalt and Copper Mines in $960M Deal

Glencore Buys Out Dan Gertler's Congo Cobalt and Copper Mines in $960M Deal

Glencore agreed to sell Glencore Rail (GRail) to Connecticut-based railroad operator Genesee & Wyoming’s (G&W) (NYSE: GWR) Australian subsidiary for A$1.14 billion (US$874 million). In April 2016, Glencore agreed to sell a 40% equity interest in Glencore Agri to Canada Pension Plan Investment Board (CPPIB) for US$2.5 billion in cash. The deal valued 100% of the equity in Glencore Agri at US$6.25 billion. Photo: Ivan Glasenberg, CEO of Glencore.]]>

Australia Approves Sale of Kidman Cattle Ranch Empire to Rinehart and Shanghai Cred

Australia Approves Sale of Kidman Cattle Ranch Empire to Rinehart and Shanghai Cred

The buyers offered to pay $365 million Australian dollars (US$277 million), as reported by ExitHub in October.. Kidman is Australia’s largest private land owner and holds approximately 1.3 per cent of Australia’s total land area, and 2.5 per cent of Australia’s agricultural land. Of this, 99.8 per cent of Kidman land is held under leasehold arrangements. It has 10 cattle stations, including properties across regional South Australia, Western Australia, the Northern Territory and Queensland covering 101,411 square kilometers and managing a long-term average herd of 185,000 cattle. This is a significantly larger than the next biggest rural landholding in the country. The company was founded in 1899 by Sir Sidney Kidman and has continued to date as a family owned company under the control of his descendants. Within Kidman’s property portfolio there are 19 individual properties operated as 12 enterprises, including ten cattle stations, a bull breeding stud farm and a feedlot. “Currently Kidman is 33.9 per cent foreign owned. With the sale of Anna Creek and The Peake, the proposal I am approving today represents a significant increase in overall Australian ownership from 66.1 per cent to 74.7 per cent,” Morrison said. Under the proposal the largest station in the Kidman group, Anna Creek and its outstation The Peake, will be acquired by the Williams Family, a local farming family with properties that adjoin Anna Creek. Australian-owned Hancock will control the Board, and will control day-to-day operation of the business. Kidman will remain majority Australian owned under this proposal, and remain an Australian incorporated company headquartered in South Australia. Existing environmental and other commitments will continue to be honoured. Outback Beef has made a commitment of significant investments into the Kidman business. Outback Beef will increase herd size by 20,000 head of cattle over the next 18 months. Outback Beef has indicated it will invest up to $19 million in capital improvements to increase efficiency and carrying capacity. Importantly this investment will also achieve the creation of 35 new full-time permanent jobs by June 2018 while also employing many more new contractors and short terms specialists. This increased employment will be met by engaging local populations as far as possible, including Indigenous employees. More than 600 interested parties have held discussions with sale manager Ernst & Young since the iconic Kidman landholding went on sale almost 18 months ago. Shanghai Cred was part of a consortium that failed to acquire Kidman in an earlier bid. “Kidman is an iconic cattle business established more than a century ago by Sir Sidney Kidman. It is an operation founded on hard work and perseverance by an outstanding Australian, and is an important part of Australia’s pioneering and entrepreneurial history,” said Gina Rinehart, chairman of the Hancock group, a privately owned mineral and exploration company founded by her father Lang Hancock in 1955. The Hancock family started their first cattle station in North West Australia, and founded the first port in the area at Cossack on the West Pilbara Coast to enable the cattle trade. In 2012, Business Review Weekly (BRW) claimed Rinehart was the world’s richest woman, surpassing Wal-Mart owner Christy Walton. Forbes Asia estimated Reinhart’s wealth in 2015 at US$12.3 billion. “The quality of the Kidman herd and channel country properties complement Hancock’s existing northern cattle properties, and align well with Mrs Rinehart’s plans to build a diversified cattle holding in Australia, taking advantage of integration opportunities,” said Garry Korte, CEO of Hancock. Chinese property tycoon Gui Guojie, chairman of Shanghai CRED, said that partnering with leading local business Hancock had “already proved to be a productive approach.” “We welcome the significant investment proposed in addition to the purchase price and are confident that the Kidman business will be in good hands,” said Kidman chairman John Crosby. Hancock Prospecting is an Australian company engaged in the exploration and development of mineral resources for over 50 years. The group’s headquarters are located in the company’s building “HPPL House” in Perth, Western Australia, with a representative office established in Brisbane and exploration camps located in the Pilbara. Hancock’s activities have focused predominately on the development of its iron ore portfolio in the Pilbara region of Western Australia and adding to that portfolio, such as Roy Hill, where the company has substantial investments. Hancock also holds tenements in Queensland where significant resources of thermal coal have been identified. During 2007 Hancock formed the Jacaranda Alliance Joint Venture with a company established by former group executives of CRA / Rio Tinto to explore for minerals and petroleum in Australia, Papua New Guinea, New Zealand and South East Asia. This venture took Hancock into prospects in uranium, molybedenum, lead / zinc, gold, diamonds and petroleum. Shanghai CRED was founded in 1999 and is based in Shanghai, China. As a top tier real estate enterprise qualified by China’s Ministry of Construction, and with an abundance of land reserves, its total assets have reportedly reached 16.3 billion RMB in 2016. The company has reportedly developed more than 50 projects in China including the high-end Bellewood Villas in Shanghai, and sold a 110 apartment development in Shanghai to US private equity firm Carlyle Group for $120 million in 2006. Shanghai CRED acquired the Peppers Carrington golf resort near Auckland, New Zealand, in 2011, and is said to have amassed a significant agricultural portfolio across Australia. Photo: Gina Rinehart, Chairman of the Hancock Prospecting Pty.]]>

Goldcorp $GG Said to Hire Bank of Nova Scotia to Sell Mexican Los Filos Mine

Goldcorp $GG Said to Hire Bank of Nova Scotia to Sell Mexican Los Filos Mine

Reuters reported. Goldcorp engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, silver, lead, zinc, and copper. Its principal mining properties include the Red Lake, Porcupine, Musselwhite, and Éléonore mines in Canada; the Peñasquito and Los Filos mines in Mexico; the Marlin mine in Guatemala; the Cerro Negro and Alumbrera mines in Argentina; and the Pueblo Viejo mine in the Dominican Republic. The company was founded in 1954 and is headquartered in Vancouver, Canada. Chief executive David Garofalo told Reuters in late July that Goldcorp was looking at offloading the Mexican mine, as well as weighing options for its Alumbrera mine in Argentina and the Marlin mine in Guatemala. Considered by Goldcorp as a non-core asset, Los Filos is a “smaller scale” mine that lacks economies of scale, he added. Garofalo would not speculate on a sales value for any of the assets but said Goldcorp would be happy to be paid in part in the shares of the acquirer, as happened in 2010 when it sold its Escobal silver deposit to Tahoe Resources Inc. (NYSE: TAHO). Goldcorp acquired a 40 percent stake in Tahoe through that deal. It later sold its stake for around $1 billion. “We like supporting new generation producers like that and we’d be happy to do something like that with any of these assets,” Garofalo told Reuters. The Los Filos operation consists of two open-pit mines – Los Filos and El Bermejal – and one underground mine. The open-pit operation began commercial production in January 2008. Los Filos has proven and probable gold reserves of 1.46 million ounces and 10.55 million ounces of silver, the company reported. Gold production at Los Filos in 2015 totaled 272,900 ounces. During 2015, Los Filos commenced a study to perform a detailed assessment of its operating options, including the update of the block model with additional drill data. The study was completed in the fourth quarter of 2015 and the findings were incorporated into an updated Los Filos life of mine plan. “As a result of these findings and the change in long-term metal price assumptions, recoverable ounces and the associated future after-tax cash flows decreased which resulted in a reduction of the estimated recoverable value of Los Filos and a shortened mine life,” Goldcorp said. Its net asset value was estimated at $617 million in an August RBC Capital Markets report. The mine is now operating under a revised, shorter mine life plan that targets higher grades of gold. Canadian gold miner Torex Gold Resources Inc is seen as a logical buyer because it has a mine about 41 kilometers (25 miles) from Los Filos, the sources said. Several other Canadian and global players with mines in Mexico could also take a look, the sources added. With Torex ramping up its own Guerrero mine, it’s unclear how keen the company is to double down in the region, which has had social and crime issues and the occasional shutdown. “As neighbors with potential synergies, it is almost incumbent upon us to look. We will do so to find out if we should be interested,” Torex CEO Fred Stanford said. Other Canadian gold miners with a presence in Mexico include Yamana Gold, Agnico Eagle Mines, New Gold , Argonaut Gold Inc, Alamos Gold Inc, Timmins Gold Corp, McEwen Mining and Primero Mining Corp. Los Filos gold production is estimated at 328,000 ounces this year and 404,000 ounces in 2017. It is expected to slip to 166,000 ounces in 2020, its final year of operation, RBC analysts have forecast, according to Reuters.]]>