Newcrest secures improved takeover offer of $16.9bn from Newmont

Australia-based Newcrest Mining has received an increased takeover bid of $16.9bn (A$24.5bn) or $18.7 per share from gold mining firm Newmont. 

Newcrest earlier turned down a takeover proposal, which offered 0.3 Newmont shares per Newcrest share held, arguing it would not generate adequate compelling value to the company’s shareholders. Under the revised conditional and non-binding indicative proposal, Newcrest shareholders will receive 0.38 Newmont shares for every share held. 

Of the combined company, 70% would be owned by Newmont, with the remainder owned by Newcrest. Newmont said the proposed deal will be executed via a scheme of arrangement. It will combine two of the leading senior gold producers in the sector. 

Newcrest said the proposal marks a 21% premium to its closing price of $15.5 per share on 3 February 2023. The latest indicative proposal by Newmont is subject to several conditions, including the granting of exclusivity to the company and various regulatory approvals in Australia and the US. 

Newmont president and CEO Tom Palmer said: “We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate. 

“The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s board of directors.”

Idemitsu Kosan to sell majority stake in Australia coal mine for $240m

Japan’s Idemitsu Kosan has agreed to divest its 85% stake in the Ensham coal mine in Australia to Sungela, a majority-owned subsidiary of Thungela Resources, for an upfront payment of $240m (A$340m). 

With the acquisition, South African firm Thungela intends to diversify away from its homeland, where mining operations have been affected due to long power cuts, reported Reuters. 

As part of the agreement, Idemitsu Kosan will also receive a royalty payment from Sungela. This will be based on the coal price and volume to be sold from the Ensham coal mine in 2023 and 2024. Thungela owns a 75% stake in Sungela while the Mayfair Corporations Group and Audley Energy each hold 12.5% stakes. 

The sale forms part of Idemitsu Kosan’s effort to gradually shift to cleaner fuels. As part of this plan, the firm also intends to close its Muswellbrook coal mine in Australia by the end of next month. The Ensham operation includes one active open-cut coal mining pit and an underground mine. It has production levels of 5.3 million tonnes per annum. 

Thungela said in a statement: “Under the transaction, Thungela will have operational control of Ensham coal mine and, subject to certain existing arrangements, envisages marketing its proportional share of the coal produced by Ensham coal mine. 

“This will provide Thungela with access to the Japanese and other Asian markets where demand remains strong and also better balance the group’s price exposure by providing exposure to the strong Newcastle export coal price."

SRG Global secures $157m Northern Star contracts for WA projects

Gold miner Northern Star Resources has awarded contracts, worth a total of $156.5m (A$220m), to mining services group SRG Global. The contracts cover a five-year period, and concern the Bronzewing gold operations in Western Australia. 

Under the terms of the contract, SRG will provide specialist drill and blast services, explosives management and grade control drilling. The firm has has commenced work at the facility. Located around 83km north-east of Leinster, and within the Yandal Greenstone Belt, the Bronzewing operations are currently in the care and maintenance phase. 

In addition, SRG secured a two-year contract extension at the Thunderbox and Carosue Dam gold operations in Western Australia. The contract is an extension to the initial five-year contract, which started in April 2020. 

Located in the highly prospective Yandal Belt and the Agnew-Wiluna Belt in Western Australia’s north-eastern Goldfields, the Thunderbox Operations comprise the Thunderbox, Kailis, Bannockburn and Waterloo projects. Carosue Dam Operations, meanwhile, comprise the Carosue Dam, Porphyry and Deep South projects 

SRG Global managing director David Macgeorge said: “SRG is extremely pleased to have secured both the new five-year contract at Bronzewing and the two-year contract extensions at Thunderbox and Carosue Dam. 

“I am very proud of our mining services team for their hard work supporting Northern Star’s operations at the Kalgoorlie Super Pit, Thunderbox, Carosue Dam and now the Bronzewing gold operations in Western Australia.”

Rio Tinto apologises for lost radioactive capsule

Australian mining giant Rio Tinto has apologised for losing a capsule containing radioactive material in Western Australia. 

The capsule was last seen when packaged for transport at Rio Tinto’s Gudai-Darri mine north of Newman, Western Australia. The capsule did not arrive with the rest of the convoy in Perth, although it remains unclear how the capsule was separated from the vehicles. 

The radioactive capsule was part of a gauge used by Rio Tinto at Gudai-Darri to measure iron ore density. It left the mine on 12 January, with its transport arriving in the Perth suburb of Malaga on 16 January.

When unpacked on 25 January, repairers found that the gauge had broken apart with one of the four mounting bolts and its radioactive source missing. They then immediately notified authorities. 

The Department of Fire and Emergency Services (DFES) issued a public warning concerning the capsule on 27 January. The department has instructed the public to remain at least five metres from a small metallic cylinder, 8mm tall and 6mm in diameter, should they encounter it. 

Simon Trott, chief executive of Rio Tinto’s iron ore division, said in a statement: “We are sorry for the alarm it has caused in the Western Australian community. As well as fully supporting the relevant authorities, we have launched our own investigation to understand how the capsule was lost in transit."

Macmahon secures $766m contract for Australian lithium project

Australia-based mining services company Macmahon has secured a $766m (A$1.1bn) contract to provide load and haul services for the Greenbushes lithium project in Western Australia. 

The contract has been awarded by Talison Lithium Australia, a joint venture arrangement owned by Tianqi Lithium Energy Australia and the Albemarle Corporation. Under the contract, the mining services company will undertake open-cut mining activities of load and haul and crusher feed at the mine site. 

The seven-year contract has an option for extension for up to two years, and Macmahon plans to start load and haul services from 1 July 2023. 

Located approximately 250km south of Perth and Fremantle, the Greenbushes lithium project is undergoing expansion to increase its production capacity and maintain a production life of more than 20 years.

The lithium feedstock from the Greenbushes mine is supplied to Tianqi Lithium Energy Australia’s lithium hydroxide facility in Kwinana.

Macmahon CEO and managing director Michael Finnegan said: “We are delighted to finalise this contract with Talison Lithium for its Greenbushes lithium project. This contract will add approximately $766m to our order book, which delivers on our commodity diversification strategy into future relevant commodities."

SensOre to earn lithium rights stake at Gateway’s Australian gold project

Through its Exploration Venture AI (EXAI) subsidiary, SensOre has signed an agreement with Gateway Mining’s unit Gateway Projects WA ) to earn a stake of up to 80% in lithium rights at the Montague Gold Project, located in Western Australia. 

The farm-in joint venture agreement is intended to assess and target the lithium exploration potential at the project.

Under the terms of the agreement, EXAI will initially invest $1.5m to earn a 51% stake in rights associated with lithium and related by-products within selected tenements at the gold project. 

Gateway will continue to hold its existing rights to all other minerals, including precious and base metals. EXAI will make a further investment of $3m to earn an additional stake of 29% in the lithium rights within the selected tenements. 

The parties intend to enter a formal joint venture agreement soon after EXAI achieves the first earn-in. Once both earn-ins are completed, Gateway Mining will have the option to reclaim a 10% stake in the lithium rights from SensOre. In exchange, Gateway will pay three times the total expenditure paid by SensOre. 

Gateway managing director Mark Cossom said: “This is a fantastic opportunity for Gateway, allowing a specialist exploration group to bring their proprietary technology to bear to potentially unlock the lithium potential of our tenements, without Gateway having to redirect its resources away from its core gold exploration activities.” 

"Gateway retains significant exposure to the upside of this exploration, and the ability to increase its ultimate stake, should any significant discovery be made.”