Iluka Resources (ASX:ILU) said its Jacinth-Ambrosia zircon mineral sands mine in South Australia has achieved first production of heavy mineral concentrate (HMC). The project has been completed ahead of schedule, with capital expenditure expected to be less than A$390 million, compared with an approved budget of A$420 million.
Sydney, Nov 19, 2009 AEST (ABN Newswire) - Wall Street broke its winning streak and closed lower overnight after a disappointing report showed US housing starts fell 10.6 per cent in October and permits fell 4.0 per cent. The tumble suggested that the real estate sector is still under pressure.
The Australian share market this morning delivered a good start supported by commodities, despite a negative lead from US stocks. Yesterday the local share market edged higher ahead of the release of some US economic data. The benchmark S&P/ASX200 index advanced 9.6 points, or 0.2 per cent, at 4739 points, while the broader All Ordinaries index gained 9.4 points, or 0.2 per cent, to 4759.6 points.
The Australian dollar was slightly down at the opening today as investors moved to less risky assets after the disappointing US economic data. At 7am, the Australian dollar was trading at 92.74 US cents, down from yesterday's close of 92.9 US cents.
Key Economic Facts and Figures
Australian Bureau of Statistics data showed the Australian's wage grew at an annual pace of 3.6 per cent in the year to September, the slowest pace since 2004. The increase was in line with market economists' expectations.
The Reserve Bank of Australia is to release its monthly bulletin today, and the Australian Bureau of Statistics releases average weekly earnings data for the third quarter.
M&A News
Mirvac Group (ASX:MGR) has increased its takeover offer by 10 per cent for the Mirvac Real Estate Investment Trust (MREIT)(ASX:MRZ) after some shareholders said its earlier bid was too low. The sweetened cash and scrip offer is valuing MREIT at A$362.3 million, at least A$30 million more than Mirvac's approach last month. Independent expert Deloitte Corporate Finance said the previous offer was "not fair but reasonable."
The Australian Foreign Investment Review Board has approved the investment by Baotou Iron & Steel (Group) Company Ltd to acquire up to 50 per cent of the proposed iron ore joint venture with Centrex Metals (ASX:CXM) on the Bungalow magnetite deposit. A total payment of up to A$40 million will be made into the Bungalow JV account by 3 stages.
Mortgage and financial services group Firstfolio Ltd (ASX:FFF) said it is in exclusive negotiations to acquire three separate mortgage businesses that will add approximately A$6 billion in mortgage assets to the group's existing A$12 billion loan portfolio. The acquisitions, if completed, will consolidate Firstfolio's position as one of Australia's leading independent mortgage services companies.
Food manufacturer Goodman Fielder (ASX:GFF) chairman Max Ould said at the annual meeting today the company expects to sell its fats and oils division soon. A number of parties have expressed keen interest in the potential acquisition and the company is currently in detailed discussions with one preferred bidder.
Important Corporate News
New Zealand medical equipment maker Fisher & Paykel Healthcare Ltd (ASX:FPH) reported a 31 per cent rise in net profit to NZ$37 million for the six months ended 30 September 2009. The company expects underlying growth to increase substantially in the second half, with accelerating growth in respiratory product demand. It forecasts a full-year profit of NZ$65 million to NZ$70 million, down from its previous projection in August of NZ$75 million to NZ$80 million.
Iluka Resources (ASX:ILU) said its Jacinth-Ambrosia zircon mineral sands mine in South Australia has achieved first production of heavy mineral concentrate (HMC). The project has been completed ahead of schedule, with capital expenditure expected to be less than A$390 million, compared with an approved budget of A$420 million.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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