Queensland Government grants approval for New Acland expansion 

The Queensland Government has given approval for mining leases for the third stage of New Hope’s New Acland project in the state. 

The project was cleared by Queensland Resources Minister Scott Stewart following “careful consideration” of the recommendation of the Land Court of Queensland that the mining leases be granted. It now awaits associated water licence from the Department of Regional Development, Manufacturing and Water. 

New Acland Coal, a subsidiary of New Hope, has operated the existing New Acland coal mine since 2002. The stage 2 project is a 5.2 million tonne per annum (mtpa) open cut coal mine that is active on mining leases (MLs) ML50170 and ML50216. 

Located around 160kmwest of Brisbane, the stage 3 project involves the expansion of the existing open cut mine to increase the production capacity up to 7.5mtpa of thermal coal for about 12 years. 

Expansion of the mine, located near farming land, has long been decried by environmentalists and farmers. 

New Hope chair Robert Millner said: “New Hope and the local communities around Acland and Oakey are now only one step away from restarting the New Acland mine where there has been mining activity for over 100 years. 

“Unfortunately after 15 years of seeking approvals, New Hope remains at risk of ongoing delays caused by objectors utilising the court system to engage in ‘lawfare’ to slow down the approval process, regardless of the merits.” 

Hastings to buy strategic stake in Neo Performance Materials 

Australia’s rare earths developer Hastings Technology Metals has agreed to purchase a 22.1% stake in Neo Performance Materials from an affiliate of Oaktree Capital Management, for a total consideration of $103.5m (C$135m). 

Under the deal, Hastings will acquire 8,974,127 common shares in Neo Performance Materials at around $9.91 (C$15) apiece. 

Neo Performance Materials is engaged in downstream processing of rare earth elements and the production of advanced materials, including permanent magnets. 

Hastings expects the acquisition to provide exposure to its magnetic materials business, as well as a platform to explore potential partnership arrangements using its Yangibana feedstock in downstream rare earth operations of Neo Performance Materials. 

The Australian rare earths developer said it has no plans to either make a takeover bid or acquire additional shares in Neo Performance Materials. 

Hastings plans to fund the acquisition through a $115m (A$150m) cornerstone investment secured from privately-owned metals company Wyloo Metals, in the form of exchangeable notes. 

Wyloo Metals CEO Luca Giacovazzi said: “Rare earths and the permanent magnets they produce are essential enablers of the energy transition. There is already a shortage of these products, and the upcoming increase in magnet demand will require continued investment. 

“This transaction with Hastings spans the value chain, from mining to magnet manufacturing. As the owner of the only commercial rare earth metals facility in Europe, Neo is strategically placed to help Europe meet its goal to become climate neutral by 2050.” 

NMDC in discussions to acquire minority stake in Australian lithium block 

India’s state-owned mineral producer NMDC is in talks with Australian firms to purchase a minority stake in a lithium mine in the latter, reported Financial Express. 

NMDC started negotiations to acquire the stake in one of the mines owned by Hancock Prospecting or Hawthorn Resources. 

An offtake agreement is planned to be signed by NMDC with the target company in place of a minority stake. The state-run iron ore miner intends to bring back its entire share from the project to India to meet the growing demand for lithium following rising domestic sales of electric vehicles. 

According to sources, NMDC is also looking to acquire cobalt, nickel and gold mines in various geographies, including Africa. Hawthorn Resources currently owns projects such as the Anglo-Saxo, Edjudina, Black Raven Mining and Mount Baven projects while Hancock recently formed a joint venture with Atlas Iron/Hancock Prospecting and Legacy in the Mt Bevan magnetite project. 

NMDC aims to have an iron ore production capacity of 100 million tonnes by the 2030 financial year. The firm currently produces 35 million tonnes per annum of ore from its major iron-producing units, including the Bailadila Sector in Chhattisgarh, and Donimalai in Bellary-Hospet, Karnataka, India. 

Australia’s MACA rejects NRW’s non-binding takeover proposal 

Australia’s mining services company MACA has rejected an offer made by NRW Holdings to acquire shares for an implied consideration of $0.73 (A$1.085) per share. 

This offer represented a premium of 8.5% to MACA’s last close on 17 August 2022, valuing MACA at $259.5m (A$375m). 

Following an assessment, MACA’s board concluded that NRW’s non-binding, conditional and indicative proposal is “not superior” to Thiess Group Investments’ existing $0.69 (A$1.025) apiece all-cash takeover proposal. This offer, which values MACA at $236.2m (A$350m), represents a 28.1% premium to MACA’s last traded price on 25 July 2022. 

Mining services firm Thiess, which is 50% owned by CIMIC Group, said last month that the board of MACA had recommended shareholders accept its offer. 

However, NRW stated that its merger proposal was a superior one to Thiess’ takeover offer. It also sought a further review by MACA. 

NRW managing director Jules Pemberton said: “We are disappointed that the board of MACA has indicated that it is not willing to entertain our compelling proposal. 

“NRW believed it was uniquely positioned to offer attractive value for all MACA shareholders and, importantly, the benefits of continued exposure to MACA’s business as part of a larger and diversified provider of contract services to the resources, infrastructure and energy sectors across Australia.” 

Tesla signs $5bn nickel products supply contracts with Indonesian firms 

US-based Tesla has reached contracts, valued at nearly $5bn, to purchase battery materials from Indonesian nickel processing companies, reported Reuters, citing CNBC Indonesia. 

Claiming to hold major nickel reserves, Indonesia has been looking to attract investments from US electric vehicle maker Tesla. Tesla uses nickel materials for the production of lithium batteries, which are required for electric vehicles. Indonesia had suspended nickel ore exports to ensure supply for investors and is looking to support the domestic development of electric vehicles and batteries industries. 

In June, Reuters reported that Korean battery manufacturer LG Energy Solution commenced building two nickel processing plants in Indonesia as part of its wider $9.8bn investment plan to produce electric vehicle batteries in the country. 

The majority of nickel investments in Indonesia have so far been allocated to crude metal production such as nickel pig iron and ferronickel, reported Reuters. 

Last year, Indonesia commissioned a new 1.8Mt capacity nickel smelter factory at PT Virtue Dragon Nickel Industry park in Morowali Utara county, Central Sulawesi province. The facility was developed by PT Gunbuster Nickel Indonesia, a unit of China’s Jiangsu Delong Nickel Industry. 

Indonesian Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan was cited by the news agency as saying in an interview broadcast: “We are still in constant negotiation with Tesla … but they have started buying two excellent products from Indonesia.” 

Pandjaitan also said a five-year contract has been signed by Tesla with nickel processing companies operating out of Morowali in Sulawesi island. 

OZ Minerals rejects BHP’s $5.8bn takeover offer 

Australia’s OZ Minerals has turned down an unsolicited, conditional takeover bid of $5.8bn (A$8.4bn), or $16.9 (A$25) a share, by BHP Group. 

BHP’s proposal represented a premium of 32.1% to OZ Minerals’ closing price on 5 August 2022. OZ Minerals said that BHP’s offer significantly undervalues the Australian mining firm and was “opportunistic” as it comes when prices of its stock and copper have dropped from recent peaks. 

OZ Minerals’ board considered that the offer by BHP did not “adequately compensate” shareholders for the unique nature of OZ Minerals’ core business. The board also said that BHP’s indicative proposal did not reflect OZ Minerals’ resulting potential synergies from a combination of the assets. 

The offer is in line with BHP’s efforts to diversify into metals such as copper and nickel to meet the surging demand for the commodities as countries shift towards clean energy and the electric vehicles market, reported Reuters. 

OZ Minerals managing director and CEO Andrew Cole said: “We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. 

“We are mining minerals that are in strong demand, particularly for the global electrification and decarbonisation thematic, and we have a long-life resource and reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes.”