As the Swiss resource raiders Xstrata attempted to "capture" the Woomera Mining Corp last year, much larger plans were being enacted.
After Canada's eighth largest company Noranda merged with it's major stakeholder Falconridge in May, one fifth of Falconridge, now, Canada's largest mining company
fell into the hands of Xstrata, whose chief executive Mick Davis described the move as having "allowed Xstrata to capture one of the most signifigant options in the mining industry."
also bragging that his company had begun "undertaking due diligence on Noranda and Falconridge last year"
If this is true, then Xstrata was simultaneously plotting the Noranda and WMC acquisitions. Both have now failed.
However, had both succeeded a Swiss corporation would have been in control of extremely signifigant national assets of Australia and Canada,
I would dare to suggest that an amazingly nepotistic level of corporate control of a
major resource had a high likelihood of occurring. Even Xstrata's "wooden spoon" is pretty good. Look at what happened:
[Canadian timeline from the Ottawa Citizen ]
1988: Noranda buys 19.9 per cent of Falconbridge.
- 2002: Noranda increases ownership to 58.4 per cent.
- 2004/5 Xstrata attempt hostile takeover of Woomera Mining Corporation. BHP Biliton's bid accepted
2004/5 Noranda considers takeover by Chinese company Minmetals. The merger doesn't proceed
- 2005: Noranda, Falconbridge amalgamate as Falconbridge Ltd. Brascan reduces ownership to 20 per cent In South Africa Falconbridge continues to refine WMC nickel and cobalt
- 2005: Xstrata buys 19.9-per-cent stake in Falconbridge from Brascan.
- 2005: Falconbridge and Inco Ltd. announce $12.5-billion friendly merger plan.
Former Bush Administration U.S. Energy Secretary Spencer Abraham said last week that
"Congress is ... likely to move to open previously closed areas for drilling, including the Arctic"
Given such a statement by such a person, it's now safe to assume that Antartica's mineral resources
are increasingly likely to be considered for development when the wilderness treaty expires.
That one plan has so publically failed could mean that similar others are privately "works in progess".
Had Xstrata succeeded in both its attempted coups, a large almagamation of the mineral assets of the
two countries that hold most of the world's known uranium reserves would have been available
to the highest bidder, such as a wealthy consortium or country..
A potential near-miss in giving Australia's "inheritance" away should serve as a warning.
