Glencore interested in Nickel West

GLENCORE Xstrata CEO Ivan Glasenberg has confirmed that BHP Billiton's Nickel West assets are for sale and the company is among the interested parties.

Glasenberg told Bloomberg in an interview overnight that Glencore was looking closely at the assets.

"It's on the market, it's clear it's on the market," he said.

"We will kick the tyres. It's something that would make sense, but it is an asset that's had its problems."

Glencore already owns the Murrin Murrin nickel operation in Western Australia through its takeover of Minara Resources in 2011.

"It's something that would make sense with Minara being close by," Glasenberg said.

"We do buy certain products from them."

BHP has refused to comment on a possible sale of the Nickel West assets in the past, but nickel is outside the company's "four pillars" of iron ore, copper, coal and petroleum.

The assets comprise the Mt Keith open pit mine and concentrator, the Leinster operations, comprising two underground mines and a concentrator, the Kalgoorlie concentrator and smelter and the Kwinana refinery.

Nickel West produced 78,200 tonnes of nickel in the December 2013 half and the division employs up to 3000 people.

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WA jumps into Fraser Institute top 10

WESTERN Australia has jumped nine places to finish in sixth position in the Fraser Institute's survey of mining companies 2013.

Australia's largest state finished 15th last year but jumped back into the top 10 this year and was the top ranked jurisdiction globally for investment attractiveness.

WA also ranked second in terms of geological attractiveness behind Alaska but in front of Nevada, Chile and British Columbia.

South Australia also improved its overall 20th rank last year, jumping up into the 11th spot, while Tasmania was the most improved, jumping from 49th to 27th.

The Northern Territory went from 22nd to 13th, while Queensland was 24th, up eight spots.

Victoria dropped to 33rd from 24th, while New South Wales was the worst-ranked Australian jurisdiction in 39th place.

Sweden edged out Finland to be the top-ranked jurisdiction, with Finland followed by Alberta, Ireland, Wyoming, WA, New Brunswick, Nevada, Newfoundland & Labrador and Norway.

Fraser Institute energy and natural resources senior director and survey director Kenneth Green said miners looked for competitive taxation regimes, sound legal systems and low uncertainty surrounding land claims.

"The confidence mining executives have in Sweden and Finland, for example, proves that it's possible to enact sound environmental protections and still maintain a successful mining industry," he said.

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Chinese rail tracks into WA

A MAJOR Chinese infrastructure company is aiming to expand its presence in Australian mining with a $US176 million ($A196.7 million) vendor financing offer deal for FairStar Resources' Steeple Hill iron project in Western Australia.

State-owned CSR Ziyang has agreed to provide the vendor financing for Steeple Hill's rolling stock and associated rail infrastructure requirements in three tranches.

The first tranche will be for three locomotives and 132 wagons with a potential carrying capacity of up to 1.8 million tonnes per annum.

The linked infrastructure and the first train set have been budgeted for a value of about $106 million.

Additional locomotives and wagons will be purchased by FairStar once the project is in production to allow increased transport tonnage requirements of up to 5Mtpa.

FairStar had attempted to secure the entire project funding through several entities to no avail, later deciding to divide its funding needs for Steeple Hill across a number of parties.

The company emphasised that it retained full control of the project and that discussions regarding funding were progressing.

"This is a historic day for FairStar as we believe we have secured a good financial structure for the company," managing director Keven Robertson said.

"The agreement with CSR Ziyang fulfils not only our first-stage rolling stock requirements, but also the additional required rail infrastructure for the project."

Steeple Hill's capital requirement is about $320 million.

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Mirabela shareholders cry foul over recap plan

A GROUP of shareholders of collapsed Mirabela Nickel have requested an investigation by the Australian Securities and Investments Commission over the dealings of the company and its proposed recapitalisation plan.

Last week, Mirabela's board appointed Martin Madden, Clifford Rocke and David Winterbottom of KordaMentha as joint and several administrators.

At the same time, Mirabela unveiled a recapitalisation plan which that see its note-holders take a 54.4% stake in the company, with existing shareholders to receive nothing.

In a letter to ASIC, Dan Larkham on behalf of the MBN Class Action Group said the existing share value amounted to 0.01% of the restructured company, which neglected Mirabela's duty to shareholders.

"This amounts to an ambush of their shareholders with total disregard to their rights," the letter said.

"Further, it is our opinion that some shareholders may have received a priority allotment of shares in the new reorganised Mirabela, thereby materially prejudicing other shareholders.

"There has been no disclosure of who the new shareholders are by Mirabela Nickel. In fact, they have deliberately blacked out all the names on their recent announcement.

"We believe it is our right to know if any directors or existing shareholders have been given an unfair advantage over other shareholders."

Shares in Mirabela, which have been suspended since October, will remain suspended through the administration period.

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Contractor killed at Tucano

BEADELL Resources has reported a fatal accident at its flagship Tucano gold operation in Brazil.

The company said a contractor died from injuries he received in an accident south of its Duckhead open pit mine.

Two men were working on assembling a radio communication mast to upgrade services in the area when the accident occurred.

Beadell said the second contractor was transported by air to a hospital in nearby Macapa, where he was in a stable condition.

The company said it had informed authorities and would assist with investigations. Counselling services were being provided to family, friends and colleagues.

This is a tragic accident, and our thoughts and prayers are with the family and loved ones of the men at this time," Beadell managing director Peter Bowler said.

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