Gindalbie Metals Ltd. (ASX:GBG) said it has postponed the start of its A$1.8 billion Karara iron ore mine in mid-west by up to 12 months, due partly to delays in Australian government clearance of a deal for Chinese funding. Gindalbie expects to start magnetite production in the first quarter of 2011.
Sydney, April 22, 2009 AEST (ABN Newswire) - Overnight the US stock market shrugged off a range of grim earnings reports and gained on the comments from US Treasury Secretary Timothy Geithner that majority of banks have more capital than they need.
Yesterday Australian shares fell after Wall Street plummeted on renewed banking fears. The benchmark S&P/ASX200 index plunged 2.4%, or 91.6 points, at 3677.4, while broad-market All Ordinaries index lost 2.4%, or 89.2 points, at 3633.1.
Key Economic Facts and Figures
The Reserve Bank of Australia released its minutes of the April board meeting yesterday. The RBA cut the cash rate by 25 basis points as more forecasts for economic growth in both industrial and emerging economies had been revised lower. Economists believe that RBA will keep rates on hold next month. The Reserve Bank also publicly declared Australia is in recession.
Today the Australian Bureau of Statistics will release the Consumer Price Index for the March quarter.
M&A News
Fortescue Metals Group Ltd. (ASX:FMG) said Wednesday that its agreement with Hunan Valin Iron and Steel Group has been approved by China's National Development and Reform Commission. The placement will bring Valin's the second-largest shareholder in Fortescue with a 17.3% holding.
Babcock & Brown Capital (ASX:BCM) said a takeover proposal by former B&B executive Rob Topfer is unacceptable and too low. Mr Topfer's Taemas Bridge approached B&B capital last week aiming to buy the company.
Important Corporate News
BHP Billiton (ASX:BHP) posted falls in iron ore and other base metals output for the quarter ended March 31. BHP also said it expected market conditions to remain uncertain.
Macquarie Group (ASX:MQG) has thrown a lifeline to small investors in toll road group BrisConnections Unit Trusts (ASX:BCSCA) by offering to acquire the partly-paid BrisConnections securities.
Gindalbie Metals Ltd. (ASX:GBG) said it has postponed the start of its A$1.8 billion Karara iron ore mine in mid-west by up to 12 months, due partly to delays in Australian government clearance of a deal for Chinese funding. Gindalbie expects to start magnetite production in the first quarter of 2011.
Gold and copper explorer Hillgrove Resources (ASX:HGO) reported an A$11.1 million profit in the year to January 31, compared with a A$4.9 million loss in previous corresponding period. The increase is largely due to a rise in the value of its stake in Eastern Star Gas (ASX:ESG), which is 19 per cent owned by Hillgrove.
Telstra (ASX:TLS) has won a 10-year managed services deal worth up to A$1 billion from Commonwealth Bank of Australia (ASX:CBA). Telstra will provide a range of next-generation telecommunications capabilities and fully managed services to the bank's branches, contact centres, EFTPOS network and non-branch ATMs.
Insurance giant AXA Asia Pacific (ASX:AXA) said its core Australian wealth management operations had a net outflow of A$230.1 million in the first quarter, compared with a net inflow of A$845.5 million a year ago. The company also could slash up to 120 full-time staff to cut costs.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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