Mineral Resources enters bidding war with China for AWE’s WA gas project

By Addie Thomes

ASX-listed miner Mineral Resources (MRL) has tabled a bid of AU$484mn for AWE’s stake in a large onshore gas project in Western Australia.

MRL’s offer, which stands at AU$0.80 per share, represents an improvement on an offer made by state-owned China Energy Reserve and Chemicals Group (CERCG), which is thought to have been around AU$0.73.

The site in question is Waitsia in the northern Perth basin, of which AWE owns a 50% stake alongside Lattice Energy, which has recently been sold by Origin to Beach Energy.  

RELATED STORIES:

In a statement, AWE said: “The AWE Board will evaluate the MRL proposal and the proposed takeover offer from CERCG Australia, and provide shareholders with a recommendation in due course.

“Until that recommendation is provided shareholders should take no action in relation to the MRL proposal or the proposed offer from CERCG Australia.”

The Waitsia field is regarded as the most significant onshore discovery of gas in Australia in 40 years, and could serve around 10% of Western Australia’s domestic supply needs.

CERCG revealed it intends to supply gas to remote communities and mining sites using its liquifying technology to help transport to unconnected areas. The company may need to up its bid for Waitsia if it is to remain in the running for the project.

Indeed, AWE’s board may reject both bids if it deems them as below its valuation. The Royal Bank of Canada, which recently ran a share sale for AWE, holds a valuation of AU$0.91.

Share

Featured Articles

Hybrid live event shaping the future of Sustainability & ESG

Sustainability LIVE London returns for a two-day, multi-track conference programme featuring inspirational ESG speakers, debates and discussions

Nine must-attend sustainability events for business leaders

From London to Abu Dhabi, Singapore to San Diego, these sustainability-focused events are designed to help business leaders action their ESG goals

Daniel Weise of BCG on new supply chain and procurement book

Daniel Weise, global leader of Boston Consulting Group’s procurement business line, on the timely publication of his new book, Profit From The Source

Attract and retain talent with flexible working and benefits

Human Capital

Nurturing the next generation of women leaders in Africa

Leadership & Strategy

5 Mins With: Cybersecurity expert Ariel Parnes of Mitiga

Technology