July 29th (Interfax China) – China Metallurgical Group Corp. (MCC) has received approval from Australian-listed Cape Lambert Iron Ore Ltd. shareholders for the acquisition of the company’s namesake iron ore project, Cape Lambert announced on July 28.


July 28th (Bloomberg) – Anglo American Plc, the world’s fourth-biggest diversified mining company, will complete the $5.5 billion purchase of two Brazilian iron ore mines by Aug. 5 after being delayed by a police probe.

Eike Batista, the mines’ controlling shareholder, is being investigated for alleged gold smuggling and fraudulently winning a railroad concession. Batista said July 14 the accusations were “false and totally unfounded.” The billionaire offered to compensate Anglo for any losses resulting from the probe, the London-based company said today in a statement.

Anglo agreed in March to buy 70 percent of MMX Mineracao e Metalicos SA’s Amapa iron ore mine and the 51 percent stake it didn’t already own in the Minas-Rio project. The price of the steelmaking raw material has risen to a record this year, bolstered by Asian demand.

The combined market value of OGX Petroleo e Gas Participacoes SA, MPX Energia SA and MMX Mineracao e Metalicos SA tumbled as much as 9.79 billion reais ($6.2 billion) on July 11 after a federal raid on Batista’s offices and home.

MMX shares rose 1.02 reais, or 6.7 percent, to 16.21 reais at 11:34 a.m. in Sao Paulo trading, while OGX climbed 8.5 percent to 750 reais. Rio de Janeiro-based LLX shares began trading today after being spun off from MMX.

“Bombastic news such as this tends to have an effect on stocks,” President of LLX Logistica SA Ricardo Antunes said today in an interview in Sao Paulo. “We are very confident that the upward trajectory of the group’s stocks will return, because the group is absolutely transparent and we don’t have the slightest doubt that everything being raised will be cleared up.”

July 24th (Business Spectator) – Australiasian Resources Ltd’s shares have surged 32.6 per cent to $1.585 after it announced it had received a $327 million takeover proposal from Billionaire Clive Palmer, who is planning to establish a new Australian resources group.

The iron ore miner said it had received a takeover proposal from Mr Palmer’s company Resource Development International Ltd (RDI), which already holds a 66.37 per cent stake in Australasian.

Under the proposal, RDI has placed a notional price of $2.20 on each Australasian share. Shareholders who accept the offer would be paid in RDI shares.

Mr Palmer wants to create a resources group to rival BHP Billiton and Rio Tinto and plans to list RDI, and if successful complete its merger with Australasian, by late 2008.

Australasian has been working to develop its proposed $2.7 billion iron ore mine, Balmoral South, in Western Australia with Chinese company Shougang Corp, which has a significant investment in the miner of 6.36 per cent.

It has been reported that Mr Palmer is seeking Chinese investment for his company, and would approach Shougang and Baosteel, seeking financial interest.

RDI will have a portfolio that includes iron ore, with a 10-billion tonne iron ore resource in the Pilbara, nickel, including the proposed Gladstone nickel project and steel mill, and other energy interests.

Through a strategic alliance MEO Australia is set to become the core of the new group’s energy division, while keeping a separate listing.

July 18th (Reuters) – Australia’s Cape Lambert Iron Ore Ltd (CFE.AX: Quote, Profile, Research, Stock Buzz) said on Friday it had met with U.S. investment bank Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) and steelmaker Evraz Group (HK1q.L: Quote, Profile, Research, Stock Buzz) on Thursday, but no new information had emerged.

Evraz, partly owned by Russian billionaire Roman Abramovich, has agreed to pay $1.5 billion for a controlling stake in another steel group, Delong Holdings (DELO.SI: Quote, Profile, Research, Stock Buzz), which holds an option to take about 12 percent of Cape Lambert.


Merrill Lynch is holding a stake in Cape for an unnamed party, widely believed to be Evraz.

July 12th (Steel Guru) – China Metallurgical Group Corporation announced that the China Metallurgical Baoye Construction Company purchased 51% stock right of Henan Lushi County northern mining company.

It is the first time for China Metallurgical Baoye Construction Company is getting involved in the development of iron ore fields.

The exploitation products of Northern Mining Company mainly include iron, copper, zinc, gold, sliver, molybdenum etc 11 kinds of metal resources. China Metallurgical Group is one of the key enterprises of China’s overseas investment in ferrous and non ferrous metals.

July 10th (Reuters) – Chinese state-owned trading firm Sinosteel has clinched its takeover of Australian iron ore prospector Midwest Corp (MIS.AX: Quote, Profile, Research) after receiving more than 50 percent acceptances, a source close to the transaction said on Thursday.

The source said Sinosteel would announce its hard-fought victory in the battle for Midwest on Friday, having seen off a rival suitor, Midwest’s neighbouring prospector Murchison Metals Ltd (MMX.AX: Quote, Profile, Research), with a cash offer of A$6.38 per Midwest share.


Sinosteel was advised exclusively by JP Morgan on the offer, which values Midwest at A$1.36 billion ($1.3 billion).

July 9th (ABC Rural) – A company backed by the Chinese Government has gained virtual control of a West Australian miner, in what will be the first succesful bid of its kind by China.

After a sharemarket raid by Sinosteel Corp on iron ore aspirant, Midwest Corporation, the Chinese company is now the majority shareholder.

The Midwest Corporation is valued at about $1.5 billion dollars and has iron ore operations near Geraldton in WA.

The offer by Sinosteel to pay $6.38 per share is expected to be open until Friday.