Australian acquisitions

Australian mining companies were the most active in making global acquisitions in 2011, accounting for 22% of market share value, according to research by PricewaterhouseCoopers.

In a busy year for mergers and acquisitions, Australian mining company acquisitions rose by 3% year-on-year, trumping both US and China.

The PWC global mining 2011 deals review and 2012 outlook report found that together the top three countries accounted for 53% of annual acquisition values.

When the 2600 global deals worth more than $149 billion are taken into account, 2011 was the second-busiest mining mergers and acquisitions year in history.

Australian gold production

Australian gold producers are enjoying higher prices for gold despite a slight reduction in production in 2011, according to a report by Surbiton Associates.

In its review of 2011 Surbiton found that 264 tonnes – or 8.5 million ounces – of gold were produced, which is 2t less than in 2010.

This ranks Australia second behind China for gold production and ahead of the United States, which produced 240t in the year.

Gold prices soared from $1400 to $1800 and then down to $1600 per ounce during the year.

At current gold prices the 2011 production would be worth about $13.5 billion.

Marengo Mining

Marengo Mining has told the Australian Securities Exchange it is not aware of any market sensitive information that has not been released to the market after receiving a “speeding ticket”

The ASX noted a change in the price of the company’s securities from a closing price last Monday of 23.5c to an intra-day high on Friday of 28.5c. It also noted an increase in the volume of trading in the securities over this period.

“The company is not aware of any explanation for the price change and increase in volume,” Marengo said. “The company executive has been presenting in Europe and North America preliminary to the annual PDAC conference in Toronto which may be responsible for the elevated interest.”

Gloucester Coal

Independent directors of Gloucester Coal are expected to decide this week whether to agree to a merger with Chinese coal mining giant Yanzhou’s Australian subsidiary Yancoal.

64.5% shareholder Noble Group is expected to support the deal, which would see the creation of a major coal mining and Australia’s largest pure coal listed mining entity.

Yanzhou launched its $2.1 billion cash and scrip offer for New South Wales based Gloucester Coal on December 23, with an offer worth about $10.16 a share.

Yanzhou offered Gloucester shareholders $3.20 cash per share and 23% of a newly listed company.

Gloucester's board had reserved its official recommendation until due diligence by an independent expert's report was released.