1. Aditya Birla to sell copper biz in Australia

Aditya Birla to sell copper biz in Australia

Australia-listed Aditya Birla Minerals is part of Aditya Birla Group, and is 51% owned by Hindalco Industries

By: | New Delhi | Published: September 22, 2015 12:37 AM

Aditya Birla Minerals on Monday said it will sell Birla Mt Gordon Pty to Lighthouse Minerals Holdings Pty, in a move that would complete strategic review of the company’s operations, and free up cash of about A$41.7 million.

“Together with the cash proceeds from the sale of BMG, this increase in the company’s unencumbered cash balance will provide the ABML (Aditya Birla Minerals Ltd) Board with considerable flexibility while it assesses options in relation to capital management and the ongoing strategic review of the balance of the ABML business,”  the company said in a statement.

Australian-listed Aditya Birla Minerals is part of Aditya Birla Group, and is 51% owned by Hindalco Industries. The company focuses on copper production and exploration. It operates  Birla Nifty Copper Operation in the Great Sandy Desert, in Western  Australia, and ships the concentrates produced at this copper mine to Hindalco-owned copper smelter plant in India.

As per the terms of the deal announced on Monday, Lighthouse Mineral Holdings will make a cash payment of $5 million Australian Dollars on completion of the transaction, the company said in a statement.

Lighthouse will also make cash payment of another $10 million Australian Dollars if the the three month delivery quoted price of copper on the London Metals Exchange averages at least $4.20 Australian Dollars, over any continuous six-month period, during the period commencing on 12-months after the date of first commercial production at Mt. Gordon, after the acquisition, and ending 36-months after, it said. Apart from this the buyer will also reimburse Aditya Birla Minerals for actual care and maintenance expenses incurred by it for the operations, between the time of agreement and completion of transaction, the company said.

Moreover, Lighthouse will also replace all financial assurance bonds for environmental and performance.

Tags: Aditya Birla
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