IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Rio Tinto (ASX, LON, NYSE: RIO) is said to be studying potential takeover bids for smaller rivals, including Teck Resources (TSX: TECK.A, TECK.B) (NYSE: TECK), Canada’s largest diversified miner, which successfully fended off Glencore’s (LON: GLEN) $23 billion attempt to buy the company last year.
The world’s second largest mining company has held talks with bankers over a potential offer for the Canadian target, but is not immediately planning to launch a bid, Sky News reported, citing unnamed sources.
It’s unclear, however, if Canada would allow the Australian miner to acquire Teck. Just last week, Minister of Innovation, Science and Industry François-Philippe Champagne said the government would only greenlight foreign takeovers of its major mining companies “in the most exceptional of circumstances.”
Teck concluded this week the sale of its steelmaking coal unit to Glencore, in a deal worth about $6.9 billion. The Vancouver-based miner is now focused on copper and zinc and has no exposure to the fossil fuel.
Rio’s move comes on the heels of a $49 billion failed attempt by BHP (ASX, NYSE, LON: BHP) to acquire Anglo American (LON: AAL) and may be one of many mergers and acquisitions to come in the mining industry in the short to medium term, according to industry experts.
Large-scale deals involving the world’s top miners are expected to face increased regulatory scrutiny, especially as western governments ramp up their attention on supply chains for critical minerals.
Rio Tinto and Teck Resources didn’t immediately respond to MINING.COM’s requests for comment.
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