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Barrick Gold (ABX-T 35.54 1.28 3.74%), the world’s largest gold miner, is in talks to sell a majority stake in its African unit to a Chinese buyer, the first move by new boss Jamie Sokalsky to clear out poorly-performing businesses and revive its flagging shares.
 
News of the talks with China National Gold Group, which bills itself as the country’s largest gold miner, saw African Barrick Gold shares closed down, as investors bet the buyer would pay a premium to help satisfy China’s insatiable appetite for the metal.
 
If it goes ahead, the sale would be one of China’s largest mining deals in Africa and its most significant incursion into large-scale gold mining on the continent to date.
 
Barrick is grappling with falling profit, soaring costs and the fallout from what some investors see as mistakes, including the takeover of copper miner Equinox Minerals.
 
Barrick ousted its previous chief executive in June, saying it was frustrated the stock had languished while bullion prices had surged. Its shares are down 30 percent over the past year, trading at levels last seen in late 2008. Read the rest of this entry »

The National Post is Canada’s second largest national paper.

An Australian recall Wednesday by China’s two biggest car exporters for potential cancer-producing asbestos parts may threaten plans by Chinese automakers to expand into the U.S. and Europe amid intensifying competition at home.

Australia was to be the “testing area” for Chinese carmakers looking to enter larger markets and the recall has dealt a blow to those ambitions, according to Dunne & Co. Great Wall Motor Co. and Chery Automobile Co. recalled 23,000 of their vehicles sold in Australia after authorities found asbestos in some models.

“It’s a significant setback for the individual companies and development of the industry,” said Michael Dunne, head of industry researcher Dunne & Co. “Chinese car companies will continue to push overseas, but you can bet that other countries that they are moving into, or are exporting to, are going to take a closer look on what’s on offer.”

The use of asbestos in exports raises concerns about the quality and safety of products made in China, which has struggled with repeated health scares that include excessive lead found in toys, melamine-tainted milk and pet food killing children and dogs. Vehicle exports from the country may rise about 50% this year, extending record shipments in 2011, according to the official trade chamber. Read the rest of this entry »

http://www.theaustralian.com.au/business

ABOUT one-fifth of the global nickel industry is operating in the red. British metals analysts Brook Hunt use the glossier term cash-negative but the end result is the same (although the nickel situation is not as grim as aluminium, where China’s growth is causing intense grief to non-China producers).

You would not want to be developing a new nickel mine at present, especially a laterite operation in which metallurgical complexity tends to cause unexpected, and often costly, problems.

So it is 20 per cent in the red, and — looking at Brook Hunt’s graph — it won’t take much more weakening of the nickel price to eliminate the profitability of another 20 per cent of world capacity. And that’s just on the basis of the cash production cost, leaving aside other overheads.

The portents are not looking good this week. The metal fell by 1.8 per cent in Monday’s session on the London Metal Exchange, then another 2.1 per cent in Tuesday’s trading to close at $US16,050 a tonne. A drop below that level would be a heavy psychological blow for nickel. Read the rest of this entry »

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Barrick Gold Corp. is in discussions to sell the African assets as the world’s largest gold miner struggles to rein in massive cost overruns and focus on key projects.

In a statement on Thursday, Toronto-based Barrick said it was in preliminary discussions with China National Gold Group Corporation regarding its 74 per cent holding in African Barrick Gold PLC, spun off two years ago as it removed the higher cost mines from its books.

“Discussions are at an early stage, and there can be no certainty that these discussions will result in the acquisition of all or part of Barrick’s holding in ABG,” Barrick said in a statement.

“As noted in Barrick’s 2012 Second Quarter Report, Barrick has adopted a renewed focus on maximizing shareholder value through a disciplined capital allocation program which includes optimizing Barrick’s portfolio of assets and maximizing returns on investment and free cash flow.”

Barrick is struggling to right itself as it emerges from some of the most most tumultuous quarters in its history as one of Canada’s largest companies. Read the rest of this entry »

The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

A battle is quietly brewing over a giant Canadian agricultural fertilizer firm and a New York hedge fund, drawing interest, in part because of similarities to the recent CP Rail proxy fight.

Jana Partners LLC, a $3 billion (U.S.) fund run by Barry Rosenstein, is agitating for change at Calgary-based Agrium Inc., one of the world’s largest agricultural products company.

Agrium, which has a market capitalization of $15 billion, runs a wide-ranging business that includes developing and manufacturing fertilizers to wholesale and retail sales. Jana, with almost a 5 per cent stake is Agrium’s largest shareholder, has called for the company to spin off its retail operations that sell directly to farmers, saying it could deliver better returns to shareholders.

The hedge fund called for similar spinoffs at other companies in which it held a stake including McGraw-Hill Cos. and Marathon Petroleum Corp., which eventually agreed to the changes. Read the rest of this entry »

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Nishnawbe Aski Nation’s new grand chief is well-versed in economic-development issues and well-known in provincial and aboriginal political circles.

Harvey Yesno squeaked out a victory on the third ballot Wednesday, defeating closest rival Terry Waboose by 22-21 in the secret-ballot vote. The term is for three years.

Yesno maintained a slight lead through the first two ballots over closest challengers Waboose and Mike Metatawabin, both outgoing deputy grand chiefs. Metatawabin was not on the third ballot.

Yesno is one of three new faces joining on the new NAN executive council. Alvin Fiddler of Muskrat Dam and Goyce Kakegamic of Keewaywin were elected as deputy grand chiefs. They’ll join Les Louttit of Fort Albany who was re-elected as a deputy grand chief.

The vote took place during NAN’s annual Keewaywin conference, held this year at Kashechewan First Nation on James Bay. About 300 people were in attendance, including voting delegates. The new executive council was sworn into office immediately. The conference continues today under the direction of the new executive council. Read the rest of this entry »