Shares of M.I.M. Holdings ended A27 or nearly 22% higher at A$1.52 on the Australian Stock Exchange on Nov. 21, after the Queensland, Australia-based base metals and coal miner confirmed that Zug, Switzerland-based Xstrata had initiated talks talked aimed at buying its smaller rival.
MIM described the conversations as, “early stage discussions,” and said that no agreement had reached yet.
In a brief press release of its own Swiss-listed Xstrata also confirmed the early-stage talks, noting that the outcome of the talks was uncertain.
Xstrata, the world’s fourth-biggest coal exporter, is eyeing MIM’s Australian coal assets as it tries to keep pace in the consolidating resource sector.
Xstrata currently has interests in 14 operating coal mines in Australia, which primarily supply the Asian (mostly Japan) market. The company also has interests in two coal port facilities in Australia — the Port Waratah Coal terminal in Newcastle and the Port Kembla Coal terminal adjacent to Wollongong, south of Sydney.
Xstrata is 40% owned by Glencore International.
In Australia, MIM, Australia’s fifth biggest coal exporter, has 75% interests in each of the Oaky Creek (coking coal), Newlands (steam and coking coal), and Collinsville (steaming and coking coal) operations in central Queensland’s Bowen Basin. The company also produces coke at its Bowen Coke operation. The company’s Rolleston and Wandoan thermal coal projects are at the feasibility and prefeasibility stages, respectively.
MIM also produces copper, gold, zinc, lead, and silver in Australia, UK, Germany and Argentina.
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