News Wrap

IN this morning’s News Wrap: Palmer tax secrets laid bare; Yancoal mulls Yanzhou bid as markets stay weak; and OZ tipped to cash up for stake in Northparkes.

Staff Reporter

Palmer tax secrets laid bare

The Australian Taxation Office has taken the extraordinary step of trying to keep details of a tax dispute with mining magnate Clive Palmer secret, in a stoush involving about $90 million in disputed capital gains liability, according to the Australian Financial Review.

In proceedings filed in the Federal Court in Sydney, Palmer’s company, Mineralogy, is fighting to have a capital gain dating back to 2006 reduced from almost $300 million to $12 million.

The disagreement relates in part to the market value of magnetite iron ore rights sold in 2006 to Chinese-controlled Citic Pacific.

Yancoal mulls Yanzhou bid as markets stay weak

The independent directors of Yancoal are still mulling a $200 million privatisation bid by Chinese parent Yanzhou Coal Mining Company, as the eastern states miner warned that both thermal and metallurgical coal markets remained weak, according to the Australian Financial Review.

Yanzhou bid to buy out the remaining 22% of its locally listed subsidiary, Yancoal Australia, earlier in July, declaring the Australian based business would be better positioned and operated as part of a fully integrated larger group.

The bid, however, involves unwinding a foreign ownership restriction that dates back to 2009 when the subsidiary bought Felix Resources, and independent directors of Yancoal have been reviewing the bid.

OZ tipped to cash up for stake in Northparkes

Sandfire Resources managing director Karl Simich expects OZ Minerals to sell its $168 million stake in the company if it goes ahead with the acquisition of Rio Tinto’s Northparkes copper and gold mine in New South Wales, according to the Australian Financial Review.

OZ has been tipped as the likely buyer of Northparkes and speculation has arisen that the company will offload its 19.2% Sandfire stake to help fund the purchase.

Simich said although he had not received confirmation from OZ that it was looking to sell out, he agreed with the speculation.