Rumour is always the currency of a small town, but in Kitmat, rumour can only hope to keep up with the sudden flood of information recently unleashed on the world investment scene.
The purchase earlier this year of Alcan by the Rio Tinto conglomerate, left many wondering where the status of the smelter upgrading would lead to.
The frequent battles between the District of Kitimat and the Aluminum giant have fed the process over the last few years, the appearances in front of the utilities Board over power sales, the veiled suggestions that progress was at stake wihout a power sale allowance, the sale to a foreign investor; all of it leads to an air of uncertainty over the Aluminum city.
Opinion 250 recently featured a story on the situation with Rio Tinto and its plans for the aging smelter in Kitimat, an opinion piece that examined the companies debt load and how it may impact on the plans to redevelop the Kitimat works plant.
However, beyond the local scene a much larger drama is playing out on the world stock markets and capital investment scene.
The latest development has a hostile bid to take over Rio Tinto in the works, much like the process that gobbled up Alcan, the new owner may soon find itself on the mergers and acquisition list in very short order.
A company named BHP Billiton is said to have made a 142 Billion dollar offer last week, to purchase Rio Tinto and its various subsidiaries like Alcan. An offer that was rebuffed by Rio Tinto as inadequate.
If it had been accepted, it would have been the second largest ever takeover and would have created a monster company, a 350 billion dollar entity that would gain control over 40 per cent of the world’s iron ore production. A situation that it seems is not sitting well with China, a major purchaser of aluminum products and iron ore resources around the world.
While Rio Tinto may have said no to a deal on that occasion, BHP it seems has no intention of taking No for a final answer.
The frequent battles between the District of Kitimat and the Aluminum giant have fed the process over the last few years, the appearances in front of the utilities Board over power sales, the veiled suggestions that progress was at stake wihout a power sale allowance, the sale to a foreign investor; all of it leads to an air of uncertainty over the Aluminum city.
Opinion 250 recently featured a story on the situation with Rio Tinto and its plans for the aging smelter in Kitimat, an opinion piece that examined the companies debt load and how it may impact on the plans to redevelop the Kitimat works plant.
However, beyond the local scene a much larger drama is playing out on the world stock markets and capital investment scene.
The latest development has a hostile bid to take over Rio Tinto in the works, much like the process that gobbled up Alcan, the new owner may soon find itself on the mergers and acquisition list in very short order.
A company named BHP Billiton is said to have made a 142 Billion dollar offer last week, to purchase Rio Tinto and its various subsidiaries like Alcan. An offer that was rebuffed by Rio Tinto as inadequate.
If it had been accepted, it would have been the second largest ever takeover and would have created a monster company, a 350 billion dollar entity that would gain control over 40 per cent of the world’s iron ore production. A situation that it seems is not sitting well with China, a major purchaser of aluminum products and iron ore resources around the world.
While Rio Tinto may have said no to a deal on that occasion, BHP it seems has no intention of taking No for a final answer.
The Times of London in a report posted today said that: BHP Billiton is set to raise the stakes in its $153 billion (£74 billion) battle for control of Rio Tinto by taking its proposals directly to investors that hold cross-shareholdings in both of the mining giants.
Where all of this leaves an aluminum smelter upgrade in a far off corner of Northwestern BC is anyone’s guess, but you get the feeling that developments on the world stage could very well have a major impact on the Northwest.
TV 7 out of Terrace, has been advertising a special presentation planned to air tonight at 5:30 and repeated through the weeks to come.
Judging by world financial events it very well may be out of date before it even hits the air!
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