Australia's Mineral Resources drops out of race for Atlas Iron
Mining infrastructure supplier Mineral Resources has bowed to Australia's richest woman, Gina Rinehart, in the battle for junior iron ore miner Atlas Iron (ASX: AGO), by saying Wednesday it would not make an offer to counter her A$390 million ($288 million) cash bid.
Mineral Resources’ withdrawal means Atlas’ board is likely to recommend Rinehart’s Hancock Prospecting offer in the absence of a superior proposal. It also means all eyes are now on Fortescue Metals Group (ASX: FMG), which still has a 19.9%-stake in the junior miner and has not yet disclosed whether it plans to launch a rival bid or sell its holding into Hancock’s.
The acquisition would give Hancock, which owns the Roy Hill iron ore mine, a chance to use Atlas’ output for blending and to potentially extend the life of the company's existing mines.
Atlas' operations are in the iron ore-rich Pilbara region of Western Australia, where it also has undeveloped tenements that could be brought into production with a larger partner.
The junior miner also has land with potential highly sought after port access, which major miners would welcome as they expand output in coming years.
Atlas Iron was one of the first victims of a collapse in iron ore prices three years ago, which forced the company to mothball its mines as it was costing it more to dig up the ore than what buyers were paying for it at the time.
source: Mining.com
Top News
Six last month
MinRes halts Bald Hill mine amid lithium price rout
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Swapping aluminum for copper will maintain China’s resources, group says
Gold loses some luster after Trump’s decisive win
Hedge funds slash bullish wagers on gold over Trump election win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Families gather at South African mine shaft where hundreds are feared stuck underground
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
