UPDATE: Rio Tinto Accepts Chinese Bid For Kalahari Shares
January 31 2012 - 11:43PM
Dow Jones News
Rio Tinto PLC (RIO) has agreed to sell its roughly 11.1% stake
in Kalahari Minerals PLC (KAH.LN) to China Guangdong Nuclear Power
Corp., pushing the Chinese nuclear fuels supplier closer to
grabbing control of one of the world's largest uranium
deposits.
Rio's Rossing uranium unit in a statement said Tuesday it had
accepted the offer for the almost 28.3 million shares it holds in
London-listed Kalahari, whose main asset is a 42.5% stake in
Australia's Extract Resources Ltd. (EXT.AU).
China Guangdong and partner China-Africa Development Fund on
Jan. 20 said they had secured a 30.8% stake interest in Kalahari.
With Rio's shares, that would put the Chinese companies' combined
stakes at roughly 42%--still shy of the 50% threshold that would
trigger a A$2.2 billion (US$2.3 billion) offer for Extract.
Central to the linked bids is Extract's Husab project in
Namibia, which promises to become one the world's largest uranium
mines and neighbors Rio's Rossing uranium mine. Mining and power
companies are keen to secure uranium supplies to meet an expected
rise in demand from China, India and other countries intending to
build fleets of nuclear power stations.
Rio Tinto Rossing said it would make a decision on whether to
sell its about 14.2% stake in Extract in due course and in light of
any recommendation provided by the smaller company's board.
Rio a year ago confirmed it had discussed with Extract a
possible combination of the Husab project with its Rossing
mine.
Extract's board has said it would consider available
alternatives to the likely offer from China Guangdong, and was
continuing to negotiate with potential investors in Husab.
China Guangdong's and CAD Fund's offer for Kalahari of 243.55
pence in cash, valuing it at about GBP632 million (US$996 million),
is due to close Thursday. It is conditional on the companies
securing acceptances for more than 50% of Kalahari--a level at
which a bid must be extended for Extract within four weeks, under
Australian securities rules.
Rio first bought 24.8 million shares in Kalahari and 23.2
million in Extract in September 2008, according to a statement from
Kalahari that month.
Rio last year trumped rival suitor Cameco Corp. (CCJ) with a
C$654 million (US$652 million) bid for Canadian uranium prospector
Hathor Exploration Ltd. (HAT.T), securing high-grade uranium
projects in the Athabasca Basin of northern Saskatchewan, a region
that provides about 20% of global uranium production.
The Anglo-Australian mining giant's majority-owned Energy
Resource of Australia Ltd. (ERA.AU) Wednesday said it expects to
raise production to between 3,000 and 3,700 metric tons of uranium
oxide this year after it swung to a loss in 2011 after output was
hampered by heavy rains.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
Excite Technology Services (ASX:EXT)
Historical Stock Chart
From Jul 2024 to Aug 2024
Excite Technology Services (ASX:EXT)
Historical Stock Chart
From Aug 2023 to Aug 2024