News Wrap

IN THIS morning’s News Wrap: X2 still in the hunt for Rio coal assets; lots more pain in the resources sector as thousands of jobs go; and BHP Billiton showing remuneration ‘disconnect’, proxy adviser warns.

Lou Caruana

X2 still in the hunt for Rio coal assets

The private-equity firm founded by former Xstrata CEO Mick Davis, X2 Resources, has emerged as the last remaining bidder for control of two Rio Tinto Group coal mines in Australia, according to sources quoted by Bloomberg.

X2 is progressing in negotiations with Rio as the other interested parties, including Glencore and New Hope Corp, are no longer in talks to buy the assets in New South Wales’ Hunter Valley region, according to the people. The mine stakes may fetch more than $A3 billion.

Lots more pain in the resources sector as thousands of jobs go

Thousands of workers in the resources sector are facing unemployment as Australia transitions from a once-in-a-century boom in the terms of trade, according to the Australian Financial Review.

The jobs are going because of the completion of major liquefied natural gas projects, the closure of loss-making projects and cost-cutting by companies that were staffed for the good times.

BHP Billiton showing remuneration 'disconnect', proxy adviser warns

BHP Billiton shareholders have been advised to closely monitor the company's short-term incentive structure in the wake of a dramatic fall in its full year profits during the 2015 financial year, according to the Sydney Morning Herald.

CGI Glass Lewis has noted that BHP Billiton CEO Andrew Mackenzie's bonus had declined much less than the company's profit did in the 2015 financial year, and could be a sign of a disconnect.

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