Friday May 16, 2008
Xstrata bids US$398mil for Australia’s Indophil Resources
SYDNEY: Anglo-Swiss miner Xstrata Ltd yesterday bid US$398mil for Australian-listed Indophil Resources in a move that would give it full control of a giant copper mine in the Philippines.
Indophil rejected the A$426mil, or A$1 a share, offer as “opportunistic”, saying it did not reflect the value of the company.
Indophil shares soared 44% to a 10-month high of A$1.12, suggesting the market sees scope for a higher offer.
Xstrata has been one of the most acquisitive international mining houses buying copper, zinc and coal mines in Australia and nickel deposits in Canada and Africa as it builds up a diversified commodities powerhouse.
Copper prices have risen by more than a fifth so far this year.
“This is a continuation of the only way Xstrata and other larger companies can actually grow because they are of such a size now that organic growth through exploration will only provide minor growth,” said DJ Carmichael & Co analyst Paul Adams, adding this deal would be a good fit for Xstrata.
Xstrata already owns the majority of the rights to the Tampakan copper lode in the southern Philippines’ Mindanoa island, regarded as one of the richest in South-East Asia. – Reuters
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