MARKETS

News Wrap

IN THIS morning's News Wrap: Suitor Hochtief warns of Leighton job cuts; Rio Tinto fears exorbita...

Lou Caruana

Suitor Hochtief warns of Leighton job cuts

Hochtief, the majority shareholder of Leighton Holdings, has warned that jobs in the Australian group's 56,000-strong global workforce may be cut and operating brands such as John Holland and Thiess merged or ditched as it urges investors to accept its $1.2 billion takeover offer, according to the Sydney Morning Herald.

“As a result of the general review by Leighton already under way, some employees may become redundant,” Hochtief said in its bidder's statement.

Hochtief, which last week secured the recommendation of Leighton's board after lifting its initial bid 35¢ to $22.50 per share for up to 74% of the construction group, also flagged plans to change the structure of Leighton's five operating companies after reviewing its business model.

The review could change the way Leighton Contractors, Thiess, John Holland, Leighton Asia, India and Offshore and Leighton Properties are managed and alter “'the number and functions of employees”' as divestments of assets and businesses are considered, Hochtief said.

Rio Tinto fears exorbitant tax compliance costs

Rio Tinto has expressed concern about the lack of international co-operation on tax transparency laws, saying the multitude of new legislation could send compliance costs soaring, according to the Australian Financial Review.

Nickel's run rekindles sale hope

Surging nickel prices have boosted interest in a planned sale by Chinese-controlled MMG of its mothballed Avebury nickel mine on Tasmania's west coast, which was developed at a cost of $880 million, according to The Australian.

Nickel's price surge - brought on by Indonesia's export ban on laterite nickel ores - has already prompted BHP Billiton to put out the feelers on a sale of its West Australian nickel business, valued at up to $1 billion, because of the strategy of chief executive Andrew Mackenzie to focus on the “four pillars” of iron ore, coal, copper and petroleum.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production