Sydney Stocks Weak, Energia Finds Uranium

Chandrasekhar Atreya
16 Jul, 2010
New York City

Stocks in Australia closed lower. OZ Minerals raises its forecast for gold output. National Australia Bank seeks extension for locating a buyer for AXA Pacific

[R]6:00 PM Sydney, Australia – Stocks in Australia closed lower. OZ Minerals raises its forecast for gold output. National Australia Bank seeks extension for locating a buyer for AXA Pacific’s North Investment platform. Posco Australia raises its stake in Murchison Metals to become its largest shareholder.[/R]

Stocks in Australia traded lower, after rising initially. The ASX 200 Index lost 0.45% or 19.90 to close at 4,422.70.

Australian shares climbed for the second week but gains were tempered by weak trading volumes as investors showed some reluctance to make portfolio changes ahead of the upcoming reporting season.

OZ Minerals Ltd, the operator of Prominent Hill mine in Australia, said output of copper rose 4% in the second quarter. The company also boosted in forecast for the full-years gold production and also approved a A$135 million underground development at the mine after the government excluded base metal mines from its new profit tax.

Copper production in second quarter was 28,236 tons compared to 27,159 tons a year earlier, Melbourne-based OZ said in a statement. The company also raised its full-year forecast of gold from the previous range of 110,000 ounces to 120,000 ounces to be between 140,000 ounces and 150,000 ounces.

National Australia Bank Ltd is seeking a second extension to gain more time in its efforts to gain regulatory approval for it’s A$13.3 takeover offer of Axa Asia Pacific Holdings Ltd.

The Melbourne-based NAB said it was in talks with possible buyers of Axa Asia Pacific’s North Investment platform in order to address the concerns of Australian Competition and Consumer Commission, and needs some more time as it tries to finalize negotiations, it said in a statement today.

Murchison Metals Ltd said today that Posco Australia Pty Ltd, the Australian subsidiary of Korean giant Posco has increased its shareholding in the company to 13.91% making it the largest shareholder. Murchison Executive Chairman Paul Kopejtka, welcomed Posco’s increased investment.

Posco, South Korea’s biggest steelmaker will invest in an iron ore project in Western Australia and also seek a stake in Brazil to expand raw material supplies from outside the nation.

Posco will spend 194.7 billion won to buy a 24.5% stake in the Australian Premium Iron project, the South Korean company said in a statement today. It also said that it wants to buy about 20% stake in a steel venture that is being planned by Vale SA and Dongkuk Steel Mill Co.

Aircraft refueling workers at Sydney airport are planning to strike work for 24 hours on July 21 over a pay dispute, the Australian Financial Review reported, citing the Transport Workers Union. The airport fueling service is owned by Qantas Airways Ltd, Caltex Australia Ltd, and Mobil.

Energia Minerals Ltd has received and processed all assays and down-hole gamma logging results from the recently completed program of diamond core drilling at the Carley Bore project. It debuts on ASX today.

The main objective of the drilling, which comprised four diamond core holes at the 100% owned Nyang Uranium project in the Carnarvon Basin region of Western Australia was to confirm the grade and width of uranium mineralization intersected in previous drilling by the former owner Carbon Energy in 2007 and 2008.