M.I.M. soars on Xstrata talks

The Swiss company Xstrata is negotiating to buy rival M.I.M. Holdings of Australia, causing the latter’s stock to rise 22% to A$1.52 on the Australian Stock Exchange.

Xstrata, the world’s fourth-largest exporter of coal, is eyeing M.I.M.’s Australian coal assets as it tries to keep pace in the consolidating resource sector.

Xstrata has interests in 14 coal mines in Australia, which supply the Asian (mostly Japanese) market. The company also has interests in two coal port facilities in Australia — the Port Waratah Coal terminal, in Newcastle, and the Port Kembla Coal terminal adjacent, south of Sydney. Xstrata is 40% owned by Glencore International.

M.I.M., Australia’s fifth-largest exporter of coal, has 75% interests in each of the Oaky Creek, Newlands and Collinsville operations in central Queensland. It also produces coal at its Bowen Coke mine, and has two projects at the feasibility and prefeasibility stages: Rolleston and Wandoan, respectively.

In addition, M.I.M. produces copper, gold, zinc, lead and silver at operations in Australia, the United Kingdom, Germany and Argentina.