The push for inorganic growth is intensifying in the critical minerals sector, as bigger companies look to consolidate ground amid ballooning demand forecasts.
This has driven company strategy for majors such as BHP and Rio Tinto, both of which have recently made or are looking to make significant critical minerals acquisitions.
Mining magnate Andrew Forrest has also been active, but not through his Fortescue Metals Group vehicle, but rather his private company Wyloo Metals.
Forrest outran BHP to acquire Canadian-focused Noront Resources in April 2022, and now Wyloo has launched an on-market takeover bid for Mincor Resources, bidding $760 million for the company at $1.40 per share.
Mincor advised its shareholders to take no action regarding the offer, with managing director and chief executive officer Gabrielle Iwanow highlighting the current state of play.
“We are in a world where the adoption of electric vehicles and industrial decarbonisation continues to increase demand for high-grade nickel sulphides,” she said.
“The grade, location, metallurgy and exploration upside of Mincor’s Kambalda nickel sulphide assets mean that they are highly strategic for industry players operating both upstream and/or downstream in battery and critical minerals.
“As Mincor approaches full ramp-up in mining, and continues to pursue its highly prospective exploration opportunities, we believe that this strategic value will continue to grow.”
Wyloo is already Mincor’s largest shareholder with a 19.9 per cent stake, and a successful transaction would see the company acquire one of the few nickel sulphide mining operations in Australia – the Kambalda nickel operation.
Nickel sulphide is high-grade product that’s more suitable for renewable technologies than a lower-grade nickel laterite.
Mincor is on track to achieving its FY23 production guidance of 8000–10,000 tonnes from Kambalda, with FY23 being the first year Mincor has issued guidance.
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