Sydney, Sept 24, 2007 (ABN Newswire) -
The world's biggest explosives maker, Australia's Orica has agreed to buy Excel Mining Systems for approximately $773 million. Orica says the acquisition of Excel, which makes roof support products for underground mines, would be immediately earnings per share accretive and was complementary to the UK mining services business Minova that it bought in 2006. The company says the purchase is consistent with its strategy of growing its business close to the core, in markets that it believes have a long term growth outlook. Orica's profit result in 2006 was more than double what it was in 2005.
BHP Billiton says it plans to give an update on its reserves this week, but that may not include details of a possible upgrade to the gold resource at its giant Olympic Dam mine. The Melbourne Herald-Sun newspaper reports that BHP Billiton planned to release the resource upgrade for the copper, gold and uranium mine, making it potentially the largest gold resource in the world. Olympic Dam, which is about 560 kilometres north of Adelaide, is the country's largest underground mine, and BHP has previously said it will be the pre-eminent supplier of uranium in the world. BHP Billiton's profit highlight was last financial year.
Santos has announced that oil production has commenced from the Oyong field in Indonesia. After an initial ramp-up period, gross oil production rates are expected to stabilise at between eight-thousand and ten-thousand barrels of oil per day. The company's Managing Director says first oil production from Oyong is an important milestone for Santos as it adds another operated project to its Asian portfolio. Front end engineering design for development of the Oyong gas reserves is underway, with a final investment decision expected before the end of 2007, and first gas production anticipated in the first half of 2009. Santos' best profit result over the past five years was in 2005.
The full report is available at the following video and audio links.
Video Link
http://abnnewswire.net/fnnlnk/T54B39Z9Audio Link
http://abnnewswire.net/lnk/9S9MJH0QSource: Finance News Network © 2007
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