News updates on Genex Power, South32, Orica, New Hope Corporation and more …

The board of Genex Power has rejected a takeover bid led by Atlassian billionaire Scott Farquhar but left the door open for a higher buyout offer.

The Kidston pumped storage hydro power project developer last week received a non-binding, indicative proposal from Skip Essential Infrastructure Fund 1 and Stonepeak Partners to acquire all of the ordinary shares on issue in Genex for $0.230 per share.

The company said the board concluded that this undervalued Genex and was not in the best interests of shareholders, so it was not prepared to grant the access to due diligence requested by the consortium.

“However, the board is willing to engage constructively with the consortium to explore whether the
consortium can submit a revised proposal that is capable of being recommended to Genex
shareholders by the board.”

South32’s share of the Eagle Downs metallurgical coal project near Moranbah is still on the market.

The company said it had received no acceptable offers to date and was continuing to seek potential divestment opportunities.

The project was placed under care and maintenance in late 2015 after initial development work that delivered site infrastructure including water supply and high voltage systems, office buildings and water and sediment dams.

Cathay Pacific Cargo this week resumed its freighter service to Toowoomba Wellcamp Airport after it was put on hold in December 2021.

The once-weekly service is operated by a Boeing 747-8F and will transport high-quality fresh produce from local shippers and deliver directly to Hong Kong and key Asian markets.

Cathay Pacific Regional Head of Cargo Nigel Chynoweth said: “This is an exciting step forward for Cathay Pacific Cargo as we re-introduce this service with strong support from local shippers in the region.”

New Hope Corporation has acquired a 15 per cent interest in Malabar Resources for $94.4 million.

Malabar is an unlisted public company whose flagship asset is the Maxwell Mmne, an underground
metallurgical coal project in the Hunter Valley. Construction of the project commenced in May 2022.

Maxwell Mine will be developed in stages with bord and pillar mining and long wall development
targeting 3.0 to 3.6Mtpa over an initial four year period followed by long wall expansion increasing
forecast coal sales to 5.5 to 6.5Mtpa over the life of the project.

Cannington payable zinc equivalent production decreased by 6 per cent in the last quarter to to 299.3kt as the site completed planned maintenance and built run of mine stocks.

Owner South32 said the North-West Queensland operation had exceeded its previously upgraded zinc equivalent production guidance by 2 per cent and its original FY22 guidance by 8 per cent.

This was despite prioritisation of activities to support the transition to trucking and the ongoing
impact of COVID-19 on workforce availability.

The operation transitioned to 100 per cent truck haulage in the June 2022 quarter.

“While the new configuration is expected to bring higher-grade material forward in the mine plan at current throughput rates, FY23 volumes are expected to be skewed towards H2 FY23 as crushing operations relocate from underground to surface,” the company said.

Local contractor Pentacon has been awarded the contract for the replacement of three stormwater culvert structures in the Pioneer Valley.

The $1.1 million Mackay Regional Council project will involve removing and replacing stormwater culverts at three sites, including two on Owens Creek Loop Rd and one on Mirani Bolden Rd.

Pentacon is expected to begin work at Owens Creek Loop Rd from September 2022, weather permitting, with the delivery of all three projects to be completed within this financial year.

Orica has entered into a binding agreement to acquire Axis Mining Technology for $260 million in
cash.

In addition, a deferred earn-out payment up to a maximum $90 million is payable based on Axis’ cumulative EBITDA generated from October 1 2022 to December 31 2024, and contingent on certain key management remaining employed by Orica during the earn-out period.

Axis designs, develops and manufactures specialised geospatial tools and instruments for the mining industry.

“The integration of Axis’ technology and expertise will accelerate our ability to support our customer’s digital transformation efforts around the world, helping them to operate more efficiently, sustainably and safely,” Orica managing director and chief executive officer Sanjeev Gandhi said.

Aurizon has completed the acquisition of One Rail Australia (ORA) for $2.35 billion.

The acquisition includes two distinct businesses: Bulk rail haulage and general freight assets in South Australia and the Northern Territory, together with the 2,200km Tarcoola-to-Darwin railway line; and  
A coal haulage business in New South Wales and Queensland, known as East Coast Rail (ECR).

ECR will be divested under the terms of an undertaking given to the Australian Competition and Consumer Commission (ACCC).