Coal hopeful, Rocklands Richfield said yesterday that a higher offer from Jindal Steel & Power of India isn’t superior to a $154 million bid from China’s Meijin Energy Group.
Rocklands had invited Jindal to revise its proposal of 50 Australian cents for each share. Meijin last week offered 52 cents a share.
Jindal’s offer values Rocklands around $A194 million.
But Rocklands says not good enough.
"The RCI Board has carefully considered the Revised Jindal Proposal, and its current view is that the Meijin Proposal remains a superior proposal, principally due to the higher offer price proposed in the Meijin Proposal," Rocklands said.
Jindal, which owns about 14.2% of Rocklands, increased its bid from 42 cents.
Rocklands controls three metallurgical coal projects in Queensland state and a processing plant at Huaibei in eastern China that produces coal used by steelmakers.
Another Indian group, Essar Group, (telecom, energy, steel and real-estate businesses) last month dropped a bid for Rocklands.
Rocklands shares finished up 1.5 cents, or 3.8%, at 41 cents.
It seems the market is not convinced either bid will get up at this stage.
The coal soap opera’s latest installment should be known today.
Meanwhile shares in iron ore hopeful, BC Iron were placed in a trading halt yesterday as the iron ore explorer prepares an announcement relating to financing and offtake deals.
In asking for the halt, the company said yesterday suspension would last until Thursday or an announcement was made earlier.
The company’s key asset is its Nullagine project in Western Australia’s Pilbara region where trial mining recently commenced.
It is an equal joint venture with Fortescue Metals Group Ltd, which will provide access to infrastructure, allowing ore from Nullagine to be exported from Port Hedland.
Shares in BC Iron last traded at $1.24, up 6.5 cents, or 5.53%.
And Metals X says China’s largest nickel producer, Jinchuan Group, is out of the next stage of BHP Billiton sale process for its mothballed Ravensthorpe mine in southern Western Australia.
Metals X, whose second largest shareholder is Jinchuan, said in a statement yesterday that Jinchuan had not been asked by BHP Billiton to participate in the next stage of the Ravensthorpe sale process.
"Jinchuan has formally advised Metals X that they have not been offered by BHP Billiton to participate in the next stage of the asset sale process for the Ravensthorpe assets.
"Jinchuan considers that Metals X’s Wingellina Nickel Limonite Project represents a much better opportunity to grow its global business with a superior uncomplicated orebody with simple metallurgy.
"Although remote, Jinchuan believes the world-class size and quality of Wingellina will overcome the isolation impediment.
"Jinchuan is a 14.8% shareholder in Metals X and has a co-operation agreement with the Company to assist with the project studies, development and potential off-take of concentrates."
Metals X shares closed down half a cent at 12 cents yesterday.
The Glencore-controlled Minara Resources says it’s participating in the Raventhorpe sale process.
Minara Resources shares rose 2.5 cents, or 3%, yesterday to close at 86.5 cents.
The Ravensthorpe mine was shut after metal prices slumped as the credit crunch and global recession rolled across the world.
It was shut in January this year, just a year or so after it opened.
It has been reported that China Metallurgical Group is also interested in purchasing the asset.
