IN THIS morning’s News Wrap: Mining giants including BHP, Rio, set for $US18B coal boost; Mt Kellett seeks equity stake in rare earths miner Lynas; and glimmers of hope in mining services sector.
Mining giants including BHP, RIO, set for $US18B coal boost
An unlikely resurgence in the price of coal could deliver an $US18 billion ($A23.6 billion) boost to the four big mining groups listed in London, reports The Times.
Despite falling foul of increasingly stringent environmental regulations around the world, the unfashionable fuel has rebounded spectacularly this year, making it one of the best-performing commodities.
The leap in prices is on a similar scale to that after the Fukushima nuclear incident in 2011, which took place when China’s boom was in full flow. The rise in prices is down to the vagaries of Chinese policy. Beijing has ordered mines to cut back on production, which sent import prices soaring.
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Mt Kellett seeks equity stake in rare earths miner Lynas
Former rare earths market darling Lynas Corp is deep in talks with its largest bondholder about a potential debt-to-equity conversion for which it will seek shareholder approval in November, according to the Australian Financial Review.
US-based hedge fund Mt Kellett Capital Management is understood to be considering converting its debt into Lynas equity at about A10c per share, which would deliver it a substantial stake in the $190 million miner.
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Glimmers of hope in mining services sector
The Australian reports that there’s a further sniff of recovery in the mining services sector, or maybe it’s more a case of torrid conditions simply unable to get any worse.
Take the small but globalised driller Mitchell Services, which reports a September quarter uptick in work from its mainly blue chip mining clients.
According to CEO Andrew Elf, the company’s operating rig count increased to 21 during the September quarter, compared with 18 a year ago.
“More significantly, the average number of monthly operating shifts has increased by 45% during the quarter when compared to September 2015.’’
