News Wrap

IN THIS morning’s News Wrap: Whitehaven forecasts coking coal price boost; Chinese group faces competition for PanAust; and Greens, Labor visa vote could halt offshore rigs.

Lou Caruana

Whitehaven forecasts coking coal price boost

Whitehaven Coal says metallurgical coal prices will continue to fall this quarter but is betting on a “modest recovery” later this year, with a string of mine closures and delays cutting into its competitors’ production, according to the Australian Financial Review.

But the lion’s share of Whitehaven’s production is thermal coal, and the miner is tipping that market will remain in oversupply for at least the next six months.

Chinese group faces competition for PanAust

Takeover target PanAust has revealed it is talking to several groups over a possible acquisition bid, signalling Chinese group Guangdong Rising could have competition in its chase for the copper miner, according to the Sydney Morning Herald.

Guangdong Rising owns just less than 23% of PanAust, and in May outlined a preliminary offer to buy the rest, under a proposal that valued PanAust at $1.46 billion.

PanAust wants a higher price than the $2.30 a share offered by Guangdong Rising and has allowed the Chinese group access to data rooms to perform due diligence.

Greens, Labor visa vote could halt offshore rigs

The federal government says $200 billion offshore oil and gas industry will be brought to its knees if the Senate votes in favour of striking out regulations relating to foreign workers, according to the Australian Financial Review.

The Senate is due to vote on Wednesday on a disallowance motion brought by the Greens and backed by Labor.

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