Independent, UK -
By Nick Clark Shares in the mining giant Rio Tinto soared to a record close as the markets anticipated further bid activity in the wake of its rejection of ...
Bidding war talk sends Rio Tinto shares soaring
Steelmakers fear duopoly if BHP bid for Rio Tinto is allowed
Rio Tinto: BHP hostile bid would face hurdles including multiple ...
Rio Tinto completes Alcan takeover The Age, Australia - Major miner Rio Tinto Ltd says the company's $41 billion takeover bid of Canadian aluminium producer Alcan Inc has closed, with 98 per cent of shares ... For sale: Rio Tinto coal mines Teck Cominco seen as suitor for Rio Tinto US coal mines Alcan reports Q3 results |
UK Stocks Gain, Led by BG Group, Rio Tinto, British Energy Bloomberg - BHP Billiton Plc, the world's largest mining company, and Rio Tinto Group advanced. British Energy Group Plc climbed after Goldman, Sachs & Co. added shares ... European Stocks Pare Losses; Rio Tinto, Anglo American Advance Rio Tinto rejects 3-for-1 share offer from BHP Billiton UPATE Thursday Lunchtime Market: Rio Tinto lifts FTSE, but banks ... |
London shares firmer midmorning; Rio Tinto up on rumours of ... CNNMoney.com - 9, 2007 (Thomson Financial delivered by Newstex) -- London shares were firmer midmorning although off highs following rumours of a counter bid for Rio Tinto ... London shares close down; NY falls on Bernanke speech; Rio Tinto ... London shares lower midday; NY seen lower; Barclays denies ... London shares up early on; M&A and specific newsflow provides ... |
 China Post | Rio Tinto lifts Sydney; exporters trip up Tokyo MarketWatch - In Australia, markets gained on a surge in Rio Tinto Plc shares after the miner rejected a $110 billion, all-share approach from top global player BHP ... Asia-Pacific markets: Asian bourses witness another wild ride ASIA MARKETS Asian markets mostly down, exporters trip Tokyo Asian Markets Mixed On Friday |
VANCOUVER–A BHP Billiton Ltd. takeover of rival Rio Tinto PLC could end up being a boon to a Canadian mining industry that's been beset by foreign takeovers this past year, analysts said.
The potential combination of two giant seniors would no doubt result in antitrust regulators demanding the sale of a number of assets that could be picked up by smaller rivals, including Canadian mid-cap companies.
"There's been a lot of talk about a hollowing out of Canada's mining sector with the loss of quite a few large-cap companies, so this could be a chance for (Canada's) mid-caps to pick up some of the pieces to become larger players within the sector," said UBS analyst Tony Lesiak.
BHP ended months of speculation yesterday when it confirmed it had approached Rio Tinto in a deal that could be worth $159 billion (U.S.).
While Canadian icons such as Inco and Falconbridge have disappeared from the landscape north of the 49th parallel, midcaps such as Lundin Mining Corp. Ivanhoe Mines Ltd., Hudbay Minerals Inc. and First Quantum Minerals Ltd. could emerge as potential suitors for BHP/Rio cast-offs.
"Cash-rich Ivanhoe, for example, has quite the platform for putting deals together," said one analyst.
He said the Vancouver-based company is already implicated in a potential BHP/Rio deal because Rio has a strategic stake in Ivanhoe and its Mongolian Oyu Tolgoi copper-gold project.
Ultimately, analysts reckon antitrust regulators will end up looking at four specific areas if a BHP/Rio deal actually goes through: iron ore, aluminum and alumina, uranium, and copper assets. Once BHP announced its offer, speculation immediately started mounting over the fate of Canada's aluminum giant Alcan Inc., which has just been taken over by Rio Tinto.
But analysts said the timing of BHP's offer for Rio Tinto is particularly telling.
"BHP let Rio Tinto mop up Alcan and then stepped in to buy Rio," said Tony Robson, co-head of mining research at BMO Capital Markets. "Clearly, because BHP is bidding for Rio after the Alcan deal means it wants the assets. They're a great prize, especially the hydro-electric power (assets) in Quebec and B.C."
He said BHP would surely honour the continuity agreements and various obligations in place between Rio, Alcan and Quebec's provincial government.
Another aspect of Canada's mining community that could also be dramatically affected is the north and its dynamic diamond sector.
Rio Tinto owns 60 per cent of the high-profile Diavik diamond mine in a joint venture with Aber Diamond Corp. And BHP owns 80 per cent of the rival Ekati diamond mine.
"There have been rumours Rio wants to sell out of Diavik and a BHP/Rio deal might mean both assets could be sold off or merged to create a larger competitive presence in the north," said one analyst. "If there's a sale, a company such as Aber could end up being a big beneficiary."
This essay was written in c 1959. It was copied from the Canadian Register of Commerce & Industry held in the Western Libraries at the University of Western Ontario. The original article should be consulted since this copy may contain some errors. The text and/or the images are being made available to researchers for scholarly purposes. They should not be used for commercial gain without the permission of the author or publisher.
RIO TINTO GROUP IN CANADA
Uranium properties, with a combined capacity of more than 19,000 tons of ore a day, the largest on the North American continent, constitute the most important underlying assets of the Rio Tinto Group of companies in Canada.
Rio Tinto Management Services Limited, a subsidiary of The Rio Tinto Mining Company of Canada Limited, is, in fact, managing companies whose uranium contracts come to a grand total of more than $630,000,000. Within five years, from April, 1953, to May, 1958, Algoma, the largest uranium camp in the world had come into being fully. Of the area's eleven huge mills, capable of handling a total of 35,000 tons of ore a day, seven belong to The Rio Tinto Mining Company of Canada Limited.
Built and brought into operation at an aggregate cost of nearly $200,000,000 for the entire Rio Tinto Group, the combined daily production rate of these Rio Tinto properties is now over the scheduled total of more than 19,000 tons of ore a day.
Rio Tinto (Canada) Limited was actually incorporated March 2nd, 1955, as a wholly-owned subsidiary of the Rio Tinto Comparty, Limited, of London, England. It immediately acquired a substantial interest in Algom Uranium Mines Limited, which was thereafter administered by a management subsidiary, Rio Tinto Management Services Limited.
1956--The purchase of the mining interests in Canada of the man behind the Algomauranium finds, Mr. Joseph H. Hirshhorn, New York-Toronto financier, followed on May I st, 1956.
The name of Rio Tinto (Canada) Limited was changed to The Rio Tinto Mining Company of Canada Limited and its capital was increased.
The 85-year-old Rio Tinto Company of London, England, today holds voting and beneficial control of Rio Tinto Canada. Mr. Hirshhorn is chairman of the board of directors of the Canadian company and retains a substantial share holding in the company.
In addition to Canada, the London company, through subsidiaries, has extensive mining interests in other parts of the world, including large copper holdings and nickel prospects in Rhodesia and uranium in Australia.
Algoma Uranium Area--The Canadian company's principal assets, at the present, consist of its interest in associated companies which hold government uranium contracts representing some 60% of the forecast capacity of the Algoma area.
Of these contracts, that held by Northspan Uranium Mines Limited for $275,000,000 is almost certainly the largest single contract of its kind in the world.
Algoma Uranium Mines Limited comes close with its contract of $206,910,000, whilst Milliken Lake Uranium Mines Limited at $94,525,000 and Pronto Uranium Mines Limited at $55,000,000, follow with substantial contracts.
These four companies together have eight mines and seven concentrator plants.
Pronto has been in production since October, 1955, with its one mine. Algoma's two mines came officially into production in February, 1957. Northspan is now in production with its three mines, "Lacnor", in production since the end of 1957, "Panel", in production since March, 1958, and Spanish American in production since May, 1958. The Milliken Lake mine came into production at the end of April, 1958. All these properties are in the Blind River region of northern Ontario.
Capitalization and Officers--Rio Tinto Canada is capitalized at $15,000,000 of authorized 5% debentures due May Ist, 1963, of which $14,668,000 are outstanding, and 80,000,000 no par common shares of which 44,227,615 shares were outstanding as at December 31st, 1957.
Officers and directors of The Rio Tinto Mining Company of Canada Limited include Joseph H. Hirshhorn, chairman of the board; Hon. Robert H. Winters, president; Dr. E. B. Gillanders, executive vice-president; W. B. Malone, vice-president and treasurer; Dr. D. R. Derry, vice-president (exploration); W. H. Bouck, vice-president (legal); Henry Blaise, J. N. V. Duncan, Sam Harris, Senator S. A. Hayden, Rt. Hon. C. D. Howe, B. R. P. MacKenzie, Leo Model, Frank Petito and Sir Mark Turner, directors.
last updated 2 Aug 2005)
BHP Billiton Plc
Shareholders
On Oct. 6, 2000, Billiton Plc announced that it has acquired 95% of the outstanding common shares of Rio Algom Limited. The acquisition was completed on Nov. 29, 2000.
On Dec. 15, 2000, the Rio Algom Ltd’s U.S. uranium mining business was sold to Billiton Base Metals, a wholly owned subsidiary of Billiton Plc.
In 2001, Billiton Plc. and BHP merged to BHP Billiton Plc.
On June 3, 2005, BHP Billiton became the major shareholder of WMC. As of August 2, 2005, BHP Billiton owns 100 percent of WMC Resources Ltd. shares.
Head Offices
BHP Billiton Plc
1-3 Strand
London WC2N 5HA
United Kingdom
Tel.: +44-20-7747 3800, Fax: +44-20-7747 3900, email: corporate@bhpbilliton.com
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London SW1V 1LH
United Kingdom
Tel.: +44-20-7802 7000, Fax: +44-20-7802 7332
BHP Billiton Limited
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600 Bourke Street
Melbourne Victoria 3000
Australia
Tel. +61-3-96093333, Fax: +61-3-96093015
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Subsidiaries
(uranium related ones only)
- (100%) Billiton Base Metals
- (100%) - Reno Creek ISL project, Wyoming, USA
- (100%) - Quivira Mining Co
- - Ambrosia Lake, New Mexico, USA
- - Lisbon, La Sal, Utah, USA
- (100%) - WMC Resources Ltd
- (100%) Olympic Dam, Roxby Downs, South Australia
- (100%) Yeelirrie Project, Western Australia
See also: BHP Shareholders for Social Responsibility
1 comment:
The prospective BHP Billiton and Rio Tinto merger could only be a matter of time. The NewsVisual article http://www.newsvisual.com/newsvisual/2007/11/bhp-billiton-an.html shows that there exist strong personal connections between the two companies, which suggests a deal is imminent.
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