PERTH (Dow Jones)-Swiss commodity giant Glencore International
PLC on Friday won an extension of its key Australian nickel
marketing rights, following a positive shareholder vote by its
partly-owned nickel mining unit Minara Resources Ltd. (MRE.AU).
At Minara's annual meeting, minority shareholders agreed to a
modified off-take arrangement with Glencore over production from
the Murrin Murrin venture, one of Australia's biggest nickel
mines.
The minimum five year deal is a fillip for Glencore as it
finalizes its London and Hong Kong listing plans via an initial
public offering of up to US$11 billion.
Murrin Murrin is expected to produce between 33,000 to 37,000
metric tons of nickel in 2011, making it a significant source of
supply for the stainless steel making additive.
Glencore owns a direct 40% interest in Murrin Murrin, alongside
a 70.5% stake in Perth-based Minara, the 60% owner and operator of
the mine.
Under Australian stock exchange rules, Glencore was prohibited
from voting on the new off-take arrangement, which replaces a 2001
deal due to expire at the end of this year.
At Minara's annual meeting, Chairman Malcolm Macpherson revealed
overwhelming proxy support for the deal, with 167.4 million shares
voted in favor and 0.56 million shares against.
Minara will receive a less onerous pricing discount from
Glencore that is expected to be worth an extra US$2 million a year
to the Australian miner.
Macpherson said he was "delighted" at the improved terms of the
deal.
"By renewing it, we not only get a clearly quantifiable
financial gain, but it means we don't need to have a market
department - that is a considerable saving for us," he told Dow
Jones Newswires after the meeting.
Glencore Chief Executive Ivan Glasenberg is a non-executive
director of Minara, but was absent from the meeting.
One of the world's biggest commodity traders, Glencore also has
several direct mining investments, aside from Minara, including its
34.5% interest in Xstrata PLC (XTA.LN). Glencore retains major
nickel and copper marketing arrangements with Xstrata.
-By Stephen Bell, contributing to Dow Jones Newswires;
61-8-9244-4243;
sgbell@bigpond.com