• 4 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 9 hours Keystone Pipeline Restart Still Unknown
  • 13 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 15 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 17 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 19 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 20 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 22 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 7 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 8 days Oil And Gas M&A Deal Appetite Highest Since 2013

The Weirdest Mining M&A Partner I've Seen

The Weirdest Mining M&A Partner I've Seen

The past several years we've seen a lot of different buyers for mining projects globally. Corporations, investment funds, sovereign wealth funds, and international financial agencies have all gone in for project purchases.

But yesterday we got news of one of the strangest-sounding buyers I've come across. For mining projects being shed by precious metals developer Aquarius Platinum in South Africa.

That purchaser is the China National Arts & Crafts Corporation. Who Aquarius announced will buy the Blue Ridge platinum project for a total $37 million in cash.

An arts and crafts corporation sounds like an odd owner for the Blue Ridge project. Which includes a developed underground platinum mine, currently placed on care and maintenance due to low metals prices. Are a bunch of scrapbookers going to be out re-starting the dump trucks?

But the deal actually makes more sense after a look at who Arts & Crafts Corporation is. And suggests some interesting trends developing in the platinum business.

The buying group in fact isn't a corporation at all. It's a Chinese government enterprise. One whose mission is to "bring the traditional Chinese culture to the world", according to its website.

Arts & Craft Corp thus deals in things like textiles, ceramics, fine art and jewellery. That last arena apparently being the driver for its interest in platinum mining.

In fact, the group is involved in the import and export of several jewellery-making materials. Including silver, gold, and diamonds. It also happens to be an affiliate of China Platinum Company--a firm that serves as the main import channel for platinum into China.

It would thus appear from yesterday's deal that the company has made a strategic decision to move beyond just import of platinum. And into upstream mining development--taking direct ownership of producing centres and the associated output.

This is a very significant signal. Showing us that Chinese interest in platinum is perhaps ramping up. And that Chinese buyers may represent an expanding source of funding for platinum projects globally.

We'll see if more deals follow from the arts and crafts folks.

Here's to being crafty,

By. Dave Forest




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News