mcr open for takeover offers

Mincor's Reeve Says Nickel Miner Is Open to Takeover Offers

By Catherine Yang and Tan Hwee Ann

Oct. 11 (Bloomberg) -- Mincor Resources NL, Australia's fourth-largest nickel producer by mine output, said it's open to takeover offers as mining companies worldwide search for more resources to meet surging Chinese demand.

The company hasn't been approached and is focused on exploration to increase resources, Jim Reeve, chief operating officer of Mincor, said in an interview in Sydney.

``Everything is for sale at the right price that gives our shareholders the maximum return,'' said Reeve. An offer ``would have to be a fair way north of the existing share price because we believe we're undervalued and there is a lot more potential in our mines,'' he said.

Prices of nickel, used in batteries and to rust proof steel, have more than doubled this year, reaching the highest in at least 19 years this month as demand exceed supply. Inventories have slumped 89 percent this year amid soaring demand from Chinese steelmakers.

Shares of Mincor have more than doubled this year, compared with a 10 percent rise in the benchmark S&P/ASX Index. Mincor closed at A$1.40 Oct. 10.

To contact the reporter on this story: Tan Hwee Ann in Melbourne at [email protected]
Last Updated: October 10, 2006 19:23 EDT