Centennial has amassed shares in the troubled New South Wales miner since February 23 when it made a $300 million scrip offer for Austral. Centennial’s stake jumped from just over 34% to 42% yesterday.

 

On Monday Glencore revealed to the market it had acquired 12.4% of Austral.

 

Over recent weeks Glencore said it had gathered 5% in the New South Wales miner and had share swap agreements with several undisclosed investment banks.

 

Glencore said it was considering its position in relation to Austral and the takeover bid made for the company by Centennial.

 

“These options include, but are not limited to, the possibility of a cash takeover bid being made for Austral by a part other than Centennial,” it said yesterday.

 

Media reports indicated Glencore bought its stake at prices between $1.20 and $1.35, making it likely any cash offer would be at about $1.35.

 

Glencore’s current Australian assets include an effective 70% stake in Murrin Murrin laterite nickel mine in Western Australia and full ownership of Cobar copper mine in New South Wales. It also holds a 16% majority stake in corporate predator Xstrata.

 

Centennial Coal’s original unconditional offer was given the go-ahead by Austral’s directors in late February and was followed by the backing of Austral’s largest shareholder – Hong Kong-based Noble Group.

 

Centennial offered Austral shareholders 10 Centennial shares for every 37 Austral shares.

 

Austral reported a net loss of $30.26 million for the year ending December 31, 2004, blaming its loss on operational problems since the new longwall was installed in April last year.