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Heading for India
editorial
Time to put up or shut up
Richard Felton EDITOR
A
s the world’s financial systems creak and groan under the threat of recession, it’s business as usual in the board rooms of the mining giants, where big deals are run-of-the-mill and megadeals are once again becoming fashionable. Well, they may become fashionable if the banks will play ball; if that is, the banks have any money to play with after the ongoing debacle of sub-prime loans. It will be recalled that last November iron ore miner BHP-Billiton started talking about a bid for rival Rio Tinto,
parent company of, among others, Quebec Metal Powders (QMP). Talking about big deals – in this case around $70 billion – is one of the oldest ways of stimulating the salivary glands of influential deal makers. who talk the possibilities up. Sometimes a target company agrees, and the deal goes through. But not in this case. However, although the Rio Tinto board robustly rebuffed the audacious move by BHP-Billiton CEO Marius Kloppers, the market activity stimulated other companies to examine their own positions and look at the world in terms of the possibility of the emergence of a supergiant company that would dwarf everyone else. The enormous Brazilian mining company, Vale, that swallowed nickel producer Inco started to stir, while another of the big bidders of yesteryear’s nickel battles, Xstrata, looked at the market and more or less invited bidders to make approaches. Vale, of course, would be the most likely bidder, seeking to further consolidate its grip on Canadian nickel properties.
Heading for India THIS month sees the staging in Chennai of PM 08, the premier powder metallurgy conference and exhibition in India. With workshops on design for PM and MIM; powder selection; compaction, and sintering, it promises to be a bust two days for the delegates and speakers, drawn from both the
Even though Rio Tinto has dismissed BHP, the game is by no means over before it starts. As earnest of that BHP is gathering a consortium of some of the biggest names in banking to provide the financial muscle that could see the deal completed. Last year BHP was talking in terms of offering three of its own shares for every Rio Tinto share. Now there seems to be an acknowledgement that around four BHP shares and £6 per Rio Tinto share would be as cheap as it could get. BHP has until February 6 to make a bid or walk away. If the terms do not change and the Rio Tinto board remains intransigent, then the bid will be hostile and shareholders can expect the war of words to warm up. BHP would be hoping that a downturn in the global economy would depress Rio Tinto’s share price, making their offer more attractive. The current ups and downs of the market leave the jury out on such speculative possibilities. If the bid goes ahead and is successful, it is expected that BHP would (have to) sell off some of Rio Tinto’s assets. Such portfolio management may include the smaller minerals businesses, which could, of course, include QMP. Time will tell.
domestic and international industries. Much has been written in recent months on the emergence of India as a top-ranking significant factor in the globalised economic systems that now rule the world. This conference will underscore that reality for powder metallurgy. See you there!
The Year of the Rat THE Chinese New Year is upon us, so it is time to wish Happy New Year to all our friends and acquaintances in China, and more particularly Chinese PM. We asked a local expert on Chinese lore to tell us more of the Year of the Rat. “It will be a year of plenty”, she said, “bringing opportunity and good prospects. It will be marked by speculation
metal-powder.net
and fluctuation in the price of commodities and stock markets; the world economy generally will boom.” But she had a word of warning too. “The Year of the Rat is still ruled by the cold of winter and the darkness of night. Those who speculate indiscriminately and overextend themselves will come to a sad reckoning.”
February 2008 MPR
3
Time to put up or shut up
Richard Felton EDITOR
A
s the world’s financial systems creak and groan under the threat of recession, it’s business as usual in the board rooms of the mining giants, where big deals are run-of-the-mill and megadeals are once again becoming fashionable. Well, they may become fashionable if the banks will play ball; if that is, the banks have any money to play with after the ongoing debacle of sub-prime loans. It will be recalled that last November iron ore miner BHP-Billiton started talking about a bid for rival Rio Tinto,
parent company of, among others, Quebec Metal Powders (QMP). Talking about big deals – in this case around $70 billion – is one of the oldest ways of stimulating the salivary glands of influential deal makers. who talk the possibilities up. Sometimes a target company agrees, and the deal goes through. But not in this case. However, although the Rio Tinto board robustly rebuffed the audacious move by BHP-Billiton CEO Marius Kloppers, the market activity stimulated other companies to examine their own positions and look at the world in terms of the possibility of the emergence of a supergiant company that would dwarf everyone else. The enormous Brazilian mining company, Vale, that swallowed nickel producer Inco started to stir, while another of the big bidders of yesteryear’s nickel battles, Xstrata, looked at the market and more or less invited bidders to make approaches. Vale, of course, would be the most likely bidder, seeking to further consolidate its grip on Canadian nickel properties.
Heading for India THIS month sees the staging in Chennai of PM 08, the premier powder metallurgy conference and exhibition in India. With workshops on design for PM and MIM; powder selection; compaction, and sintering, it promises to be a bust two days for the delegates and speakers, drawn from both the
Even though Rio Tinto has dismissed BHP, the game is by no means over before it starts. As earnest of that BHP is gathering a consortium of some of the biggest names in banking to provide the financial muscle that could see the deal completed. Last year BHP was talking in terms of offering three of its own shares for every Rio Tinto share. Now there seems to be an acknowledgement that around four BHP shares and £6 per Rio Tinto share would be as cheap as it could get. BHP has until February 6 to make a bid or walk away. If the terms do not change and the Rio Tinto board remains intransigent, then the bid will be hostile and shareholders can expect the war of words to warm up. BHP would be hoping that a downturn in the global economy would depress Rio Tinto’s share price, making their offer more attractive. The current ups and downs of the market leave the jury out on such speculative possibilities. If the bid goes ahead and is successful, it is expected that BHP would (have to) sell off some of Rio Tinto’s assets. Such portfolio management may include the smaller minerals businesses, which could, of course, include QMP. Time will tell.
domestic and international industries. Much has been written in recent months on the emergence of India as a top-ranking significant factor in the globalised economic systems that now rule the world. This conference will underscore that reality for powder metallurgy. See you there!
The Year of the Rat THE Chinese New Year is upon us, so it is time to wish Happy New Year to all our friends and acquaintances in China, and more particularly Chinese PM. We asked a local expert on Chinese lore to tell us more of the Year of the Rat. “It will be a year of plenty”, she said, “bringing opportunity and good prospects. It will be marked by speculation
metal-powder.net
and fluctuation in the price of commodities and stock markets; the world economy generally will boom.” But she had a word of warning too. “The Year of the Rat is still ruled by the cold of winter and the darkness of night. Those who speculate indiscriminately and overextend themselves will come to a sad reckoning.”
February 2008 MPR
3