Mineral Resources has sold its 5.4 per cent stake of Pilbara Minerals in an effort to focus on its hard-rock lithium and iron ore assets.

Mineral Resources has been a shareholder in Pilbara Minerals since October 2016 as part of its offtake rights and a royalty held of the Pilgangoora lithium-tantalum project in Western Australia.

Its 8 per cent stake in Pilbara Minerals at the time was valued at $50 million, with the $328 million divestment representing strong value.

(“Mineral Resources) is delighted with the share price value delivered by Pilbara Minerals’ development of Pilgangoora but believes it is time to redirect this investment into the company’s own growth projects, including in the hard-rock lithium and iron ore sectors,” Mineral Resources stated.

The $328 million divestment was completed through an underwritten accelerated block trade to institutional investors.

Pilbara Minerals share price on the ASX is $2.26 at the time of writing.

The transaction will support Mineral Resources’ $650 million capital expenditure program for the 2021-22 financial year.

Mineral Resources expects costs to increase by 5 to 10 per cent at its Yilgarn Hub in Western Australia, with exports of 10.5 million to 11 million tonnes of iron ore.

This includes the Koolyanobbing iron ore mine and Carina mine, which is currently under care and maintenance.

The company also operates the Utah Point hub, which is expected to ship 10.5 million to 11 million tonnes of iron ore.

Mineral Resources hard-rock lithium projects include the Mt Marion and Wodgina spodumene projects, owning 50 per cent and 40 per cent, respectively.

The company is expecting to ship 450,000 to 475,000 tonnes of spodumene from Mt Marion in the 2022-23 financial year, while Wodgina remains on care and maintenance.

Wodgina is one of the largest hard rock lithium deposits globally, and is operated under a joint venture with Albemarle who owns the remaining 60 per cent interest.

Mineral Resources is also constructing the Kemerton lithium hydrogxide project in Western Australia with Albermarle, owning a 40 per cent interest.

FLSmidth has agreed to purchase thyssenkrupp’s Mining Technologies business (TK Mining) for €325 million ($522.28 million) to create a pit-to-plant technology solution with a sustainable focus.

The deal was highly amenable as both companies had complementary interests in transforming their businesses.

FLSmidth is a Danish company which serves over 60 countries with engineering, equipment and service solutions for minerals, metals, concrete, electronics and more.

FLSmidth chief executive officer Thomas Schulz said the addition of TK Mining’s prowess in mining systems, materials handling and processing would complement his business.

“TK Mining and FLSmidth are a perfect match and I am proud to announce this agreement to join forces,” Schulz said.

“This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool, and one of the world’s largest and strongest suppliers to the mining industry.”

The deal will welcome 3400 TK Mining employees to FLSmidth, once regulatory requirements are completed within the next 12 months.

As a multinational group of industrial and technology businesses, thyssenkrupp saw the deal not as a loss, but a shedding, to allow it to strengthen other business areas, according to the company’s chief executive officer Martina Merz.

“The successful sale of the mining business shows that we are pressing ahead at full speed with the transformation of thyssenkrupp and achieving important results step by step,” Merz said.

“But we have not yet reached our goal. The principle ‘performance first’ continues to apply. We need to return to positive cash flow as quickly as possible. The sale of Mining Technologies makes an important contribution to this,”

Merz added how FLSmidth was the perfect partner, with similar ideals and goals for TK Mining.

“At the same time, I am pleased that we have found a very good new owner in FLSmidth. FLSmidth presented a convincing business strategy and a clear vision for the mining business,” she said.

“It will give our employees attractive prospects. That was extremely important to us when negotiating the sale.

“The merged new company will be able to drive innovation and digitalisation even faster and will increasingly focus on sustainability and ways to reduce environmental footprint.”

FLSmidth saw the deal as an opportunity to advance its MissionZero targets, which look to eliminate company carbon emissions by 2030.

“TK Mining’s extensive active installed base, together with FLSmidth’s strong existing service setup, will provide additional aftermarket opportunities, while the joint R&D (research and development) capabilities and combined portfolio will enable accelerated innovation in digitalisation and MissionZero solutions,” FLSmidth stated.

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Original equipment manufacturers (OEM) Lincom Group and McLanahan Corporation have signed a contract that will see the former become the official Australian distributor of McLanahan’s sand and aggregates processing range.

This includes the distribution of McLanahan machinery designed for washing and classifying, tailings and water management and dewatering that will benefit both parties.

The collaboration will increase Lincom’s product offering while offering new distribution channels for McLanahan.

Lincom and McLanahan are both family-owned companies with extensive experience in the materials handling and material processing fields in the mining indudstry.

The partnership would bring more McLanahan products and installations in the market, according to Lincom chief executive Stephen Watterson.

“As a leading provider of material processing equipment, we are always looking into the best quality equipment for our customers and to machine plant that complement the range we already successfully provide,” Watterson said.

“McLanahan Corporation is a global provider with a reputation of top quality, with the highest standards for engineering and manufacturing, which is of huge importance to us.”

Fortescue Metals Group subsidiary FMG Magnetite and joint venture partner Formosa Steel have agreed to the development of stage two of the Iron Bridge magnetite project in the Pilbara, Western Australia.

The $US2.6 billion ($3.7 billion) development includes a 22 million wet metric tonnes-per-year ore processing facility (OPF), an airstrip and expanded village, a 195-kilometre Canning Basin water pipeline and a 135-kilometre concentrate pipeline to Fortescue’s Herb Elliot port facility in Port Hedland.

The project will employ around 3000 people during construction and 900 full time positions once operations commence.

The development follows Fortescue’s $US500 million ($703 million) stage one construction of large scale pilot and demonstration plants, which have validated key equipment and magnetite production processes for the full-scale stage two OPF.

“The Iron Bridge project holds Australia’s largest JORC-compliant magnetite resource supporting a long mine life,” Fortescue chief executive Elizabeth Gaines said.

“The project is well progressed and ready for detailed design and execution with the majority of key approvals already in place. The innovative design, including the use of a dry crushing and grinding circuit, will deliver an industry-leading energy efficient operation with globally competitive capital intensity and operating costs.

“Our focus has been to create the most energy and cost-efficient ore processing facility, tailored to the specific ore we will mine.”

The Iron Bridge project is targeted to produce 22 million wet metric tonnes per year once full operational capacity is achieved.

First ore will be delivered in the first half of 2022, with ramp up to full production within 12 months at an all-in sustaining cost of $US45–55 per dry metric tonne.

This project will also deliver a premium product with iron content of 67 per cent, further enhancing the range of products available to Fortescue’s customers, according to Gaines.

When combined with the Eliwana development, the Iron Bridge expansion will increase Fortescue’s average product grade and provide the ability to deliver the majority of the company’s products at greater than 60 per cent iron, consistent with Fortescue’s long-term goal.

Coincidental to news of the approval, Fortescue has also updated the Iron Bridge’s magnetite mineral resource estimate, with ore reserves climbing up to 716 million tonnes on June 2018’s 705 million tonnes.

“This update supports the development of stage two of our Iron Bridge magnetite project announced today which holds Australia’s largest JORC compliant magnetite resource,” Gaines said.

“We are confident in the long-term demand for this premium product, supported by market fundamentals, including global supply conditions, investment in higher efficiency steel-making capacity, as well as the competitive advantage of proximity of the Pilbara to key markets in China and the region.

“We are ready to build this plant and develop this mine, and are confident that our early work will support rapid progress to full production.”

FMG Magnetite is a subsidiary of FMG IB, a Hong Kong registered company owned by Fortescue (88 per cent) and a subsidiary of Baosteel Resources International Company (12 per cent).

Barrick Gold has officially unveiled an offer to merge with Newmont Mining after several days of anticipation it would make a tilt for the gold rival.

The $US17.8 billion ($24.8 billion) all-share transaction would create the world’s largest gold company, with three Australian assets – the Super Pit and Boddington in Western Australia, and Tanami in the Northern Territory.

Barrick’s offer, however, represents a negative premium based on Newmont’s closing price on February 22. It also has the potential to derail Newmont’s $US10 billion plans to merge with Goldcorp, a deal the United States-based company believes offers better value than the Barrick tie-up.

Barrick chief executive officer Mark Bristow said the proposed merger with Newmont would unlock more than $7 billion of real synergies.

“The combination of Barrick and Newmont will create what is clearly the world’s best gold company, with the largest portfolio of Tier 1 gold assets and the highest level of free cash flow to drive future growth and support sustainable shareholder returns, run by a management team with an unparalleled record of delivering growth,” Bristow said.

A major portion of the synergies between the companies would be in Nevada, United States, where the deal would combine Barrick’s mineral endowments with Newmont’s processing plants and infrastructure.

Bristow said the proposed merger would secure Nevada’s position as the world’s most prospective gold region.

“Most important, it will enable us to consider our Nevada assets as one complex, which will result in better mine planning and fully realise the state’s enormous geological potential for all stakeholders,” Bristow said.

“Considered globally, the merger represents a radical and long-overdue restructuring of the gold industry, and a transformative shift from short-term survival tactics to the long-term creation of sustainable value.”

The Canadian company confirmed last Friday that it was reviewing the opportunity to make a takeover bid for Newmont following media speculation about a potential deal.

Barrick also completed a $US6.5 billion acquisition of Randgold Resources in January.

Newmont responded to the Barrick offer by stating it had a long history of evaluating potential transactions, and undertakes robust analysis and diligence on a continuous basis of acquisition opportunities.

“Newmont has previously reviewed and rejected potential combinations with each of Barrick and Randgold Resources, prior to their merger,” Newmont stated.

“Newmont’s proposed combination with Goldcorp represents the best opportunity to create optimal value for Newmont’s shareholders and other stakeholders.”

The company plans to fully evaluate the Barrick proposal and respond in due course.