Mining moves
Two more moves in worldwide mining consolidation.
Swiss mining giant Xstrata plc has struck again, this time with the opening bid for Australian nickel miner Jubilee Mines NL, in a $1.9 billion bid. Xstrata, which is the #4 nickel miner in the world, has already got an OK form Jubilee's board, but as we have seen, with so many cash-rich resource companies vying together, this may just be the opening salvo.
Nickel is especially hot as the demand for stainless steel grows internationally, especially in china. Russian-based Norilsk Nickel is the #1 producer, and it recently outbid Xstrata in buying Canada-based LionOre,, with nickel mines in Australia and Africa. That deal went down for $6.4 billion.
Xstrata itself earlier this year bought Canada-based Falconbridge, a miner of copper and nickel. That was for $27.7 million. As in a game of musical chairs, the big players are trying to snatch up the assets before the other do.
Meanwhile, Canada-based Barrick Gold, the world's #1 gold producer, announced it would buy Canada-based Arizona Star Resource Company. The deal was for $805 million. Arizona Star's big asset is a majority share in Chilean mine Cerro Casale, a major producer.
S with nickel, gold prices have spiked over the last few years as demand grows. Barrick has made smaller acquisition earlier this year in Papua New Guinea. The company also has major copper holdings.
