Miners Lift Sydney Indexes; Potash Corp Sues BHP

Chandrasekhar Atreya
23 Sep, 2010
New York City

Shares in Sydney stayed little changed but in positive territory after trailing for most part of the day. Household savings in the quarter to September falls. Potash Corp seeks injunction in the U.S. against hostile takeover offer from BHP.

[R]6:00 PM Sydney, Australia – Shares in Sydney stayed little changed but in positive territory after trailing for most part of the day. Household savings in the quarter to September falls. Potash Corp seeks injunction in the U.S. against hostile takeover offer from BHP.[/R]

Australian stocks traded 0.3% lower in the morning following the weakness in the international markets. In the afternoon, stocks and indexes rebounded to overcome the negative sentiment and closed nearly unchanged. European markets dropped more than 1% and the U.S. indexes declined a fraction in the overnight trading.

The ASX 200 Index gained a marginal 0.18% or 8.4 points to close at 4,633.60. The Australian dollar declined 0.7% to 94.94 U.S. cents.

The Melbourne Institute household financial conditions index fell to 32.7% in September from 33.7% in June. The index shows the proportion of households who are saving relative to the proportion of households who are running into debt or drawing on their savings. The decline in the index shows more people are relying on savings or incurring higher debt.

Potash Corporation of Saskatchewan Wednesday night opened a new front in its takeover defense, filing a lawsuit against BHP Billiton in the U.S. seeking an injunction against the Australian miner’s hostile $40 billion bid.

There is enough phosphate rock to make fertilizers for several hundred years, according to a new report, knocking down speculation that the world is poised to run out of the nutrient crucial to agriculture.

The competition regulator ACCC gave preliminary approval to an alliance between Virgin Blue Holdings Ltd and Middle East-based Etihad Airways that would allow two airlines cooperate on pricing and scheduling on flights to Abu Dhabi.

The interim approval allows both airlines to prepare an alliance and promote it to customers before a final ruling, the Australian Competition and Consumer Commission said in a statement Thursday.

The final report on Australia’s worst oil spill is likely to be released by the end of the year, according to Energy Minister Martin Ferguson. On August 21 of 2009 oil began leaking from the Montara rig, owned by Thai-based PTTEP Australasia and continued for more than two months.

Qantas Airways Ltd intends to increase the number of no-frills flights between Japan and other Asia Pacific locations, CEO Alan Joyce told The Nikkei Wednesday.

He said Jetstar Airways, a low cost arm of the Qantas group, intends to launch non-stop no-frills flights connecting Japan’s Narita Airport with Vietnam and Singapore, among other destinations, within the next five years.

Royal Dutch Shell is optimistic that one of the first major decisions by new Environment Minister Tony Burke will grant approval for its Prelude floating liquefied natural gas project off north-west Australia.

Jabiru Metals said its board gave in-principle approval to the construction of a $10 million separation plant at its Jaguar lead, copper, zinc, and silver project in Western Australia.

Subject to the receipt of suitable offers, construction of the heavy media plant will begin in first quarter of 2011, with commissioning to follow in the fourth quarter, Jabiru said in a statement today.

Bauxite Resources said it will enter a heads of agreement with long-term Chinese partner Yankuang Corp to complete a feasibility study for the design and construction of a modern refinery in Western Australia.

Resource News

Murchison Metals increased the mineral resource estimate at its Jack Hills’ magnetite and hematite iron ore project in Western Australia. It now totals 3.22 billion tons with 32.3% iron including an increase in the direct shipping ore component to 139 million tons with 56.6% iron ore content.

Beadell Resources agreed to sell the iron ore royalty from its Amapa project in Brazil to London’s Anglo Pacific Group for $31.25 million in cash.

Navigator Resources placed its shares in a trading halt after a portion of the pit wall in the south western corner of its Bronzewing gold mine in Western Australia collapsed. The collapsed wall had partially covered some ore in the pit and also damaged a control drill rig.

Gainers & Losers

Carnarvon Petroleum Ltd led gainers in the ASX with a rally of 7.5% to A$0.43 followed by Cudeco Ltd 5.29% to A$2.19, Straits Resources Ltd 4.72% to A$1.885, Lynas Corporation Ltd 3.78% to A$1.235 and FKP Property Group 3.68% to A$0.845.

Henderson Group Plc led decliners in the index with a fall of 5.61% to A$2.02 followed by Ten Networks Holdings Ltd 4.29% to A$1.34, Caltex Australia Ltd 4.02% to A$11.94, Paperlinx Ltd 3.96% to A$0.485 and Isoft Group Ltd 3.7% to A$0.13.

Gold in Sydney trading declined U.S. 17 cents to $1,292.30. Newcrest Mining increased 40 cents to A$40.94 and Kingsgate Consolidated added 24 cents to close at A$12.08.