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Baosteel vows to move quickly on West Pilbara project

Baosteel vows to move quickly on West Pilbara project

Photo by Bloomberg

19th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Chinese steel major Baosteel has promised to quickly progress the West Pilbara iron-ore project, after takeover target Aquila on Wednesday recommended shareholders accept a joint takeover offer from Baosteel and freight major Aurizon Holdings.

Baosteel chairperson Dai Zhihao said that Aquila’s backing of the A$1.4-billion joint offer was a welcome development, which recognised the compelling nature of the all-cash offer.

“If our offer is successful, it provides to Aquila shareholders who accept the offer certainty, cash and a significant premium in an iron-ore market that has significantly declined since we made our offer.”

Zhihao said Baosteel and Aurizon would continue to work towards closing of the offer.

“If our bid is successful, we look forward to quickly progressing Aquila’s major resource projects, including the West Pilbara iron-ore project.”

Aurizon MD and CEO Lance Hockridge has also backed a speedy development of the West Pilbara project, saying it would bring significant economic benefits.

“Our partnership is one of scale, capability and track record – so essential in underpinning major project developments of this kind, in the current market environment. If the Baosteel and Aurizon bid is successful, with the cooperation of partners, the West Pilbara development process could be under way in the near-term.”

Aquila’s backing of the A$3.40-a-share bid from Baosteel and Aurizon came after negotiations with fellow-listed Mineral Resources fell through.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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