The market expects a Mongolian coal deal
Chinese aluminium giant Chalco’s acquisition of 29.9% of Winsway Coking Coal Holdings for $HK2.39 billion ($A298 million) in cash has thrown a spotlight on Guildford Coal, the Australian Financial Review reports.
Winsway imports Mongolian coal into China. Guildford is expecting first coal production later this year at its South Gobi joint venture project, which is next door to Winsway in Mongolia.
Chalco, the Hong Kong-listed subsidiary of Rio Tinto’s biggest single shareholder Chinalco, also recently agreed to pay $US926 million to buy Canada’s Ivanhoe Mines’ 60% stake in SouthGobi Resources. Investors may be hoping Guildford is next in line to strike a deal at the asset level.
Atlas eyes $3.5B rail link with QRN
Atlas Iron will today announce a feasibility study with QR National for the construction of a 600km multi-user railway at a cost of up to $3.5 billion, to transport ore from the east and southeast Pilbara to Port Hedland, The Australian reports.
If the railway is built it could be a complete game-changer for the Pilbara region and the iron ore miner.
High Court challenge to mining tax likely to fail: Barnett
Western Australia Premier Colin Barnett believes Andrew Forrest's planned High Court challenge to the Gillard government's mining tax is likely to fail, although WA may still intervene in any action to argue resources do not belong to the commonwealth, The Australian reports.
Surprise jump in bureaucrat spending
The agency that oversees the federal bureaucracy has enjoyed a steep rise in spending on advertising and media monitoring even as federal departments tighten their belts to help the government deliver its budget surplus.
The Australian Public Service Commission has doubled its spending on advertising since 2007-08 and its media monitoring budget has grown 80% in this time, according to answers to questions on notice obtained by The Australian Financial Review.
Miners may be forced to kick-in for training
The Government of Western Australia is said to be about to force mining companies to pay possibly tens of millions of dollars into a training fund, WestBusiness reports.
Sources say Training Minister Peter Collier has worked on a plan for months to increase the amount resources companies pay into the building and construction industry training fund.
