BHP in talks with ‘Twiggy’ Forrest’s Wyloo over Canadian nic BHP in talks with ‘Twiggy’ Forrest’s Wyloo over Canadian nickel miner
https://www.smh.com.au/business/companies/bhp-in-talks-with-twiggy-forrest-s-wyloo-over-canadian-nickel-miner-20211103-p595iy.html
BHP in talks with ‘Twiggy’ Forrest’s Wyloo over Canadian nickel miner
By Nick Toscano
November 3, 2021 — 9.49am
Mining giant BHP has started talks with billionaire Andrew “Twiggy” Forrest’s Wyloo Metals about a proposed takeover of Canadian nickel miner Noront Resources.
In a sign of big resources companies’ accelerating efforts to secure supplies of electric battery raw materials such as nickel, BHP and Wyloo have been in a bidding war for Toronto-listed Noront, which has a significant claim in one of Canada’s largest potential mineral reserves.
Top Australian miner BHP is seeking to lift its exposure to battery minerals like nickel as the electric vehicle revolution takes off.
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BHP last month raised its offer for Noront Resources from C55¢ to C75¢ a share, outbidding Wyloo’s earlier C70¢-a-share proposal. On Wednesday, BHP said it would extend the tender expiry for its takeover from November 9 to November 16 amid talks seeking Wyloo’s support of BHP’s offer.
Wyloo Metals, wholly owned by Dr Forrest’s investment vehicle Tattarang, owns 37.5 per cent of Noront.
“BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront,” BHP said in a statement. “There is no assurance that any agreement will be reached.”
BHP, the world’s biggest mining company, is seeking to expand its exposure to what it refers to as “future-facing” commodities including copper and nickel, which will be increasingly required to power the clean-energy age and electrify transport.
Although electric cars account for about 3 per cent of new sales, uptake is lifting in China, the United States and Europe, with BHP describing 2020 as an “inflection point” in the electric vehicle revolution.
This year, the miner has struck deals with Elon Musk’s Tesla and a lithium-ion battery maker owned by Toyota and Panasonic to supply nickel from WA’s Nickel West mining, smelting and refining operations.