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Monday, February 16, 2009.
From Creamer Media in Johannesburg, I'm Dennis Ndaba.
Making headlines today:
Anglo-Australian mining giant Rio Tinto is confident the Australian government will approve its 19,5-billion-dollar tie-up with Chinese State-owned aluminium-maker Chinalco.
In a controversial deal announced last week, Chinalco will spend 12,3-billion-dollars on stakes in nine of Rio's mining assets and also buy 7,2-billion-dollars of convertible Rio debt that could end up doubling the Chinese firm's stake in Rio to 18 percent.
There is speculation that Australia might block the deal, fearing Beijing would have too much influence over a major export earner. But Rio strategy MD Doug Ritchie said the deal was structured to meet Canberra's foreign-ownership concerns.
Shareholders of mineral development and exploration company Teal Exploration and Mining have voted in favour of diversified miner African Rainbow Minerals and Brazil-based Vale to form a joint venture to develop the company's assets.
Teal stated in December that Arm, which owned 65% of Teal, planned to buy out minority shareholders for 3 Canadian dollars a share through a plan of arrangement. Arm would then sell 50% of the company to Vale for 81-million Canadian dollars.
If the deal were successful, Teal would be delisted from the JSE and the TSX.
Teal stated on Monday that completion of the arrangement remained subject to final approval from the Supreme Court of the Yukon terrain, in which Teal was incorporated. The hearing was expected to take place on February 17, and the receipt of other regulatory approvals and closing conditions were expected over the coming weeks.
Also making headlines:
Diversified miner Rio Tinto says floods in far west Australia are impeding iron-ore mining.
JSE-listed iron-ore producer Kumba Iron Ore's profit doubles to 7,2-billion-rand, but sees a ‘challenging' six months ahead.
Construction equipment giant Caterpillar says a stimulus package will lay the groundwork to rehire employees.
And, a Chinese group increases mining investment in South America.
That's a round up of news making headlines today. For more on these and other stories please visit miningweekly.com.