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Japan says China still blocking rare earth exports

Hong Kong-listed Wah Nam in Australian iron ore play
Sydney (AFP) Nov 12, 2010 - A Hong Kong-listed company has announced a 1.2 billion US dollar bid for two fledgling Australian iron ore miners, which could make it a significant new player in the lucrative industry. Wah Nam International Holdings Thursday said it would make takeover offers through its wholly-owned Australian subsidiary for all the shares in Brockman Resources and FerrAus that it does not already own. Combining the west Australian iron ore juniors could create the fourth largest player in the resource-rich Pilbara region, dominated by BHP Billiton, Rio Tinto and Fortescue assets, observers told The Sydney Morning Herald.

The all-scrip bid will offer 30 Wah Nam shares for every Brockman share and six Wah Nam shares for every FerrAus share -- valuing the Australian companies at about 932 million dollars and 230 million dollars respectively, it said. Wah Nam, a limited liability company incorporated in Bermuda and listed on the Hong Kong Stock Exchange, already owns about 23 percent of Brockman and some 20 percent of FerrAus. Brockman and FerrAus have said they will consider the offer, which comes as iron ore, a vital ingredient in steel-making, is in strong demand from rapidly industrialising China.

FerrAus executive director Bryan Oliver said the offer, which triggered share price rises of more than 25 percent in both companies, was complex and difficult to evaluate. "You not only have to evaluate what the directors think FerrAus is worth but you need to work out what is the value of the scrip being offered," he told the Herald. "Everyone prefers cash, cash is tangible and touchable. But the board will assess this from a value-for-value point of view." The takeover play, which analysts said could spur consolidation among other iron ore juniors, will require major investment on rail infrastructure in the sparsely populated Pilbara if the iron ore is to get to port, the report said.
by Staff Writers
Seoul (AFP) Nov 11, 2010
Shipments of valuable rare earth minerals from China to Japan still appear to be on hold, Japanese officials said Thursday, urging Beijing to resume exports after a diplomatic row.

"There is no noticeable progress in this regard," Hidenobu Sobashima, deputy director general at the foreign ministry, told reporters as the G20 group of rich and emerging nations opened a two-day summit in Seoul.

"We keep requesting the Chinese side for more information and more concrete results, but as far as the statistics and the facts go, there is not much progress," Sobashima said.

Tokyo has accused China of restricting shipments of rare earths -- elements used in high-tech products from iPods to cars -- since a September maritime incident in disputed waters sparked a bitter diplomatic row.

China, which controls 95 per cent of the global market, has denied any embargo, but a Japanese trade ministry survey in October found that all 31 companies handling rare earths in Japan had reported disruption to shipments.

Japanese deputy cabinet secretary Noriyuki Shikata warned Thursday that "Chinese companies could suffer as a result -- we are exporting some of those parts or materials (made with rare earths) to China".

"It's in the interests of the Chinese side" to resume shipments, he said.

Japan is in talks with "many candidate countries" over alternative rare earth supplies, Shikata said, including India, Vietnam, Mongolia and Botswana, while private-sector deals are already in place with Australian firms.

Rocky relations between China and Japan led to the cancellation of a planned meeting between the two countries' premiers at a Southeast Asian summit last month.

There are no plans for their leaders to hold bilateral meetings at the G20 or at an Asia-Pacific economic summit in Yokohama this weekend, officials in each country have said.

Japan's foreign minister was quoted in media reports Tuesday as saying China had asked Japan and other countries not to send representatives to a December ceremony awarding the Nobel Peace Prize to jailed Chinese dissident Liu Xiaobo.

But Japan "will make our own decision" on attending the event, Sobashima said.



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