MELBOURNE/LONDON (Reuters) – Rio Tinto has rejected a takeover approach from smaller rival Glencore Plc, snubbing a blockbuster deal that would have created a $160 billion mining and commodities trading giant.
Rio said on Tuesday that Glencore contacted it about a potential merger in July as the price of Rio’s most profitable product, iron ore, was heading toward five-year lows.
LONDON, Dec 20 (Reuters) – Avocet Mining warned that
2013 gold production would fall more steeply than expected and
announced a new plan that will halve the life of its sole
operating mine, sending its stock tumbling more than 30 percent.
Avocet shares have slumped almost 90 percent since the start
of the year, hit by a sharp drop in gold prices that has hit
miners of all sizes, but also by a hefty reserve downgrade at
its key Inata mine in Burkina Faso and funding worries.
LONDON (Reuters) – Shareholders in Indonesia-focused coal miner Bumi Plc (BUMIP.L: Quote, Profile, Research, Stock Buzz) have backed a planned split with the influential Bakrie family that co-founded the company, an important step towards a long-awaited overhaul of the group.
The divorce plan was widely expected to be approved at a shareholder meeting on Tuesday, after co-founder and major investor Nat Rothschild struck a last-minute peace deal with management last week and lent his support.
LONDON, Dec 12 (Reuters) – Anglo American warned
investors on Thursday that while its turnaround effort was “not
complex”, it would take years, with no major asset sale in the
short term and headwinds ahead.
Expectations have been high since Mark Cutifani, the
Australian former boss of bullion miner AngloGold, took
the helm at underperforming Anglo American earlier this year -
one of a new generation of mine bosses who replaced predecessors
ousted for the excesses of the boom years.
LONDON, Dec 12 (Reuters) – Investors in major gold miners
say a return to hedging future production after a slump in gold
prices would be a sign of financial weakness in companies and
could rob them of the chance to reap the rewards of any price
The incoming chairman of Barrick Gold, the world’s
largest gold miner, last week rekindled the debate over the
practice of selling production forward. John Thornton, a former
senior executive at Goldman Sachs, said he would seriously
LONDON, Dec 10 (Reuters) – BHP Billiton, the world’s
largest miner and a top investor in U.S. onshore oil and gas,
said on Tuesday its U.S. shale business should generate cash
from 2016, contributing almost $3 billion a year to the group by
the end of the decade.
BHP, one of the largest producers outside the major
integrated oil companies, plans to spend around $4 billion a
year to expand its U.S. onshore oil and gas production.
LONDON, Dec 6 (Reuters) – Four months after branding Anglo
American’s performance “unacceptably poor”, Chief
Executive Mark Cutifani is to tell investors on Thursday how he
plans to improve the miner’s operations and hit ambitious 2016
Anglo, the smallest of the leading diversified miners, has
long lagged behind its peers. In the past two years alone it has
been hit by labour troubles in South Africa, operational hiccups
at key copper mines and multibillion-dollar cost overruns in
LONDON, Dec 5 (Reuters) – Brazilian miner Vale
plans to sell a 15 to 25 percent stake in its coal operations,
including projects and mines in Australia and Mozambique, and
has had interest from potential partners including coal buyers,
it said on Thursday.
Vale, the world’s largest producer of iron ore, has cut
spending plans for 2014, a third consecutive year of reduction.
It hopes the partnership in coal, along with the sale of a stake
in its Mozambican rail link and in fertiliser assets, can bring
funding, cut capital commitment and help mitigate risk.
LONDON, Dec 5 (Reuters) – From intelligent drills to
analysing gum tree leaves, an unprecedented push to develop new
methods and technologies promises to transform the way miners
explore for deposits, allowing them to dig deeper, faster and
The results could ultimately unlock so-called ‘covered’
deposits: riches hidden under hundreds of metres of soil, rock
or sea water, sometimes in or near previously explored areas.
PERTH/LONDON, Nov 28 (Reuters) – Miner Rio Tinto
has delayed the expansion of its iron ore operations in
Australia to 2017, slowing growth and cutting costs with a
revised plan which it says will save $3 billion by working
existing mines harder instead of digging new ones.
Rio, which makes the lion’s share of its profits from iron
ore, still plans to boost production, but more efficiently, at a
time when heavyweight rivals BHP Billiton and Vale
are doing the same.